SUMMER PROJECT ON MUTUAL FUND AS INVESTMENT OPTION AT PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY

Submitted in partial fulfillment of the requirement for the award of degree of Master of business administration of Rajasthan technical university, Kota

SUPERVISED BY: MR. MANOJ JOSHI MAHENDRA FACULTY SUPERVISOR:

SUBMITTED BY: PUNEET

Mr. Vikas shrotriya

SWAMI KESHVANAND INSTITUTE OF TECHNOLOGY, MANAGEMENT & GRAMOTHAN, JAIPUR 2010-2012

PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY

ACKNOWLEDGEMENT
I would like to thank Prudential ICICI Asset Management Company for giving me the opportunity to pursue my summer project in their respected organization. Preparing a project is always teamwork so I realized the shortcomings of not working in a team. I would like to thank my faculty guide - Mr. Vikas shrotriya because without her guidance and valuable recommendations it would not have been possible to reach this destination. Now, I take the opportunity to thank my project guide Mr. Mohit Bhagat (Area Manager, Rajasthan) for lending his valuable time and suggestions. I also thank all the candidates whom I interviewed. They lend a part of their valuable time, gave some precious suggestions and exchange their experience. Nothing is perfect in this world and so is this project. Instead of all the precautions and applying all the skills that I have, there are some loopholes left.

PREFACE
Summer projects are an integral part of MBA curriculum. Main objective behind these projects is to link the theoretical inputs and their practical applications, which are essential to keep pace with the dynamic environment. To survive, thrive and beat the competition in todays brutally competitive world, one has to manage the future. Managing the future means managing your savings. One can manage his/her savings by investing them in Mutual Fund Companies, Banks and other Financial Institutions. The project undertaken provides an overview of the complexities of todays financial market. It also showed my errors, which were not discovered until I worked on this project. The project enriched my knowledge regarding Mutual Funds. It also helps me to analyze the mindset of the customers, while he/she is planning to invest their savings. Instead of the efforts there might be many mistakes left in the project.

CONTENTS
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. ACKNOWLEDGEMENT PREFACE EXECUTIVE SUMARY INTRODUCTION OBJECTIVE OF THE PROJECT CONCEPTUAL FRAMEWORK FINDINGS AND ANALYSIS RECOMMENDATIONS LIMITATIONS SWOT ANALYSIS CONCLUSION BIBLIOGRAPHY ANNEXURE 64 65 66-67 68 69 20 56-63 8-18 19 PAGE NO. 3 4 6 -7

EXECUTIVE SUMMARY Purpose

The project aims at imparting education about Mutual Funds, as there is a potentially large market for mutual fund industry left. As I interviewed the Chartered Accountants, Company Secretaries, Investment Consultant, Tax Consultants, etc, I visualize the importance of this project because many of them lack adequate knowledge about mutual funds. The purpose was to answer their questions, like: What is a Mutual Fund? Why should they invest in a mutual fund? What are the benefits? What are the additional benefits they will get by owning a Mutual Fund agency? What are the myths and the facts about mutual funds? Why are we targeting them as our customers? What are the various options to invest in a mutual fund? and many more

Objective
Prudential ICICI AMC conducted an AMFI Examination in association with Association of Mutual Funds in India (AMFI). The objective was to educate the candidates about Pru Chairman for which these candidates have to pass AMFI Exam and have to become an agent of the company. Pru Chairman is a name given to an award. The agent who achieves the specified targets becomes Pru Chairman. The award has trips to Bangkok, Singapore and Australia, all at different scores. The main objective was to expand the market for Prudential ICICI and hence Agency Expansion.

Findings
The initial stage of the project was not very exploring, but as the project progressed many facts came in front. The main findings are: The population that was targeted was of well-educated professionals. For example, Chartered Accountants are considered as financial doctors. They are known for their perfect advice. It is considered that they know the finances best. Instead of all these facts, there is a lot of misconception

regarding Mutual Funds in Chartered Accountants. The same thing follows with other professional candidates. Those candidates who were already in Insurance sector were interested to know the concept, its benefits, limitations and risks of Mutual Fund. The candidates, up to the age group of 35-40 were risk averse as compared to candidates of above age group. They were keen to know the concept. The candidates above the age group 35-40 were resistant. They were satisfied with what they are currently doing. It is found that there is a lack of knowledge regarding the benefits of investing in a Mutual Fund. Most candidates reacted negatively when I introduce myself as a representative of a Mutual Fund Company. But after I explained the concept to them, they show some positive signs and entertain well.

Conclusion
The project enlightened many facts, which were not known before. It also enlightened, where the company is lagging behind. Todays investors are of a mixed breed, some of them are risk averse and some are risk taking. Mutual Fund companies are offering schemes for each kind of investor to fulfill the need of each candidate. There is a potentially large number of prospects but they lacks knowledge regarding the benefits of investing in a mutual fund.

Recommendations
Adequate knowledge to be given to the agents regarding the latest events taking place in the AMC. The promotional campaign must be sound enough, as there is a lack of knowledge regarding this concept.

 The company should conduct AMFI Examination frequently as there is a vast number of candidates who are not AMFI certified.

ABOUT PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY

Prudential ICICI Asset Management Company, (55%: 45%) is a joint venture between Prudential Plc, UK's leading insurance company and ICICI Bank Ltd, India's premier financial institution. The joint venture was formed with the key objective of providing the Indian investor mutual fund products to suit a variety of investment needs. The AMC has already launched a range of products to suit different risk and maturity profiles. Click here to learn more about the products. Prudential ICICI Asset Management Company Limited has a networth of about Rs. 69.89 crore (1 crore = 10 million) as of March 31, 2002. Both Prudential and ICICI Bank Ltd have a strategic long-term commitment to the rapidly expanding financial services sector in India.

PRU ICICI AMC HIERARCHY

PARTNERS

CUSTODIAN

HDFC Bank Limited,

Sandoz House, Dr. Annie Besant Road, Worli, Mumbai 400 018 Role HDFC Bank Limited, provides the following services to PruICICI

Post-trading and custodial services to the Mutual Fund. Ensure that the benefits due on the holdings are received on time. Detailed management information and other reports as required by the
AMC.

Maintain confidentiality of the transactions. Be responsible for the loss or damage to the assets belonging to the
Scheme. due to negligence on its part or on the part of its approved agents and segregate assets of each Scheme. REGISTRAR

Computer Age Management Services (P) Limited (CAMS),

A & B Lakshmi Bhawan, 609,Anna Salai, Chennai 600 006.India Tel No: (091) (44) 4342121/22/23 Role As Registrar to the Scheme, CAMS handles communications with investors, performs data entry services, maintains investor data and dispatches Account Statements reflecting the holding and transactions of the investors. ICICI Infotech Services Limited(ICICI Infotech) International Infotech Park, 3rd Floor, Tower No 5, Vashi Railway Station Complex, Navi Mumbai 400 705.India. Tel No:(091) (22)7912040

Role As registrar and transfer agent to the ICICI Premier, ICICI Infotech handles all transfer related work, communications with investors, maintains investor data and processes all unit transactions. DISTRIBUTORS

The distributors are the networks through which the various schemes of PruICICI reach the investors. The distributors sell the schemes to the investors for which they are paid an incentive in the form of commission.
Who can become a Distributor? PruICICI has distributors who have a national presence as well as as those that have a strong local presence. The distributors could be: Distributors Banks - Foreign - Private Citibank NA HDFC Bank Kotak Securities National distributors DSP Merrill Lynch Ltd. Bajaj Capital Ltd. J P Morgan Stanley Blue Chip Corporate Investment Centre Ltd. Local distributors NSE/BSE Brokers Financial Advisors Chartered Accountants Tax Consultants Eastern Financiers Ltd. Sivan Securities Ltd. Examples

The distributors are given weightage on the following counts:

Client Base: How stable are the investors, the nature and number of
investors.

Sales Force: Educational qualifications, strength of sales force. Services Offered: Advisory, Collection.
The communication and payments to the distributor are made on the basis of a code. In case the distributor does not have one, it can be alloted to him by PruICICI. To be alloted a code, a form needs to be filled. On the basis of this form and a face-to-face meeting with the zonal head and sales team, a code is alloted to the distributor after obtaining approval from the zonal head. How to become a distributor? Three simple steps to become a PruICICI distributor: STEP I STEP II STEP III Approach the sales person at any of the offices (Offices). Obtain approval from the zonal head by arranging a meeting with the help of the sales person. After approval from zonal head is obtained, a code is allotted (if not already allotted) by filling a form.

BANKERS ICICI Bank Limited Zenith House, Keshavrao Khade Marg, Gate No.5, Opp.Race Course, Mahalaxmi, Mumbai 400 034 LEGAL ADVISOR Crawford Bayley & Company State Bank Building, N.G.N. Vaidya Marg, Fort, Mumbai 400 023

MAJOR COMPETITORS/ PLAYERS

ABOUT COMPETITORS/ PLAYERS

FRANKLIN TEMPLETON INVESTMENTS (MUTUAL FUNDS) Franklin Templeton Investments is one of the largest financial services groups
in the world based at San Mateo, California USA. The group has US$ 345.0 billion in assets under management globally (as of May 31, 2004) in mutual funds and other investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients. Franklin Templeton offers over 240 investment products, available under the Franklin, Templeton and Mutual Series brand names, serviced and supported by 6,400 employees in more than 28 countries. With over 50 years of experience in international investment management and offices in over 28 countries it services more than 10 million unit holders. Franklin Templeton has achieved the "Dalbar Service Award" in the US six times in the past ten years for superior customer service and back office support.

Franklin Templeton in India

As part of Franklin Templeton's thrust in expanding business in key international markets, Franklin Templeton has set-up offices in 33 locations nationwide and manages Rs. 17342.25 crores in assets and an investor base of 9 lacs as of June 30, 2004.

HDFC Asset Management Company Limited (AMC)

Vision
To be a dominant player in the Indian mutual fund space, recognized for its high levels of ethical and professional conduct and a commitment towards enhancing investor interests.

HDFC Asset Management Company Ltd (AMC) was incorporated under the
Companies Act, 1956, on December 10, 1999, and was approved to act as an Asset Management Company for the Mutual Fund by SEBI on June 30, 2000. As per the terms of the Investment Management Agreement, the AMC will conduct the operations of the Mutual Fund and manage assets of the schemes, including the schemes launched from time to time.

UTI Mutual Funds

Vision
To be the most preferred Mutual Fund

Mission
To offer customer-oriented, innovative products by leveraging technology to provide superior returns, achieve the highest service standards and attain sustained growth levels through principled human resources striving in a focused, transparent ethical manner to exceed investor expectations. UTI Mutual Fund is managed by UTI Asset Management Company Private Limited (Estb: Jan 14, 2003) who has been appointed by the UTI Trustee Company Private Limited for managing the schemes of UTI Mutual Fund and the schemes transferred / migrated from IL&FS Mutual Fund. The UTI Asset Management Company has its registered office at : UTI Tower, Gn Block, Bandra - Kurla Complex, Bandra (East), Mumbai - 400 051 will provide professionally managed back office support for all business services of UTI Mutual Fund (excluding fund management) in accordance with the provisions of the Investment Management Agreement, the Trust Deed, the SEBI (Mutual Funds) Regulations and the objectives of the schemes. State-of-the-art systems and communications are in place to ensure a seamless flow across the various activities undertaken by UTI AMC. UTI AMC is a registered portfolio manager under the SEBI (Portfolio Managers) Regulations, 1993 on February 3 2004, for undertaking portfolio management services and also acts as the manager and marketer to offshore funds through its 100 % subsidiary, UTI International Limited, registered in Guernsey, Channel Islands.

Kotak Mutual Funds

Kotak Mahindra Mutual Fund (KMMF) is managed by Kotak Mahindra Asset Management Company Ltd., a wholly owned subsidiary of Kotak Mahindra Bank Ltd. Kotak Mahindra Mutual Fund launched its schemes in December 1998 and today manages assets over Rs.5, 000 cr. contributed by over 1,50,000 investors in various schemes. KMMF has to its credit the launching of innovative schemes and plans like Kotak Gilt and Free Life Insurance with Kotak Bond Deposit Plan.

ABOUT THE SPONSORS

Prudential plc is a leading international financial services group providing retail financial products and services and fund management to many millions of customers worldwide. As a group Prudential plc has, as of 31 December 2002, over GBP155 billion of funds under management, more than 12 million customers and over 15,000 employees, worldwide. Prudential is focused on the Internet generation and is one of the first financial services organisations to use the Internet on a fully integrated basis. In October 1998, Prudential launched a "branchless" bank based on the internet. Unusually titled as " egg:|" - www.egg.com. The bank has in a short span of its existence become a leading banking service provider in the UK. Infact in the first six months of its existence it garnered over 5 billion (US$ 8 billion) in deposits from over 500,000 customers. Development of superior products and services that offer value for money and security while producing superior financial returns enables Prudential to maximize the value of its shareholder's investment and to establish lasting relationships with customers and policy holders. Other Sponsors are: Jackson National Life Prudential Corporation Asia UK-Prudential Retail Financial Services UK Retail IFA - Scottish Amicable UK-egg:| and Prudential Banking Fund Management - PPM Fund Management - M&G

ICICI Ltd (Since Merged into ICICI Bank Ltd) was established in 1955 by the World Bank, the Government of India and the Indian Industry, to promote industrial development of India by providing project and corporate finance to Indian industry. More information regarding merger of ICICI: Since inception ICICI has grown from a development bank to a financial conglomerate and has become one of the largest public financial institutions in India. ICICI Bank is Indias second largest bank with an asset base of Rs.106,812 crore. ICICI Bank provides a broad spectrum of financial services to individuals and companies. This includes mortgages, car and personal loans, credit and debit cards, corporate and agricultural finance. The Bank services a growing customer base of more than 7 million customers and 6 million bondholder accounts through a multi-channel access network. This includes about 450 branches and extension counters, 1675 ATMs, call centers and Internet banking ICICI Bank posted a net profit of Rs.1, 206 crore for the year ended March 31, 2003. ICICI Bank is the only Indian company to be rated above the country rating by the international rating agency Moodys and the only Indian company to be awarded an investment grade international credit rating. The Bank enjoys the highest AAA (or equivalent) rating from all leading Indian rating agencies. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary.

OVERVIEW ICICI Bank is India's second-largest bank with total assets of about Rs.125,229 crore and a network of over 450 branches and offices and about 1790 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat

at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

OBJECTIVE
Prudential ICICI ASSET MANAGEMENT COMPANY, under which I pursue my summer training, conducted an AMFI Examination in association with Association of Mutual Funds in India (AMFI). The objective was to educate the candidates about mutual funds. The main target was Pru Chairman for which these candidates have to pass AMFI Exam and have to become an agent of the company. Pru Chairman is a name given to an award. The agent who achieves the specified targets becomes Pru Chairman. The award has trips to Bangkok, Singapore and Australia, all at different scores. The training was given to only those candidates who were giving the AMFI Examination. In the initial stage of the project, I met around 100 prospects, who all were financial professionals like Chartered Accountants, Company Secretaries, Investment Consultants, Tax Consultants and Employees working in Financial Institutions. The purpose was to provide them with the information regarding AMFI Examination and Mutual Funds and to solve queries like: What is AMFI? Why is it important to have AMFI Certificate? What are the benefits of an AMFI Certificate? What are the plans (schemes) provided by Pru ICICI Mutual Funds? What is the difference between a Mutual Fund Investment and other Investments? What are the risks, in Mutual Funds investment? The main objective was to expand the market for Prudential ICICI and hence Agency Expansion and that would be possible only if the candidates are known to the concept and benefits.

CONCEPTUAL FRAMEWORK
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank of India. The history of mutual funds in India can be broadly divided into four distinct phases.
----------------------------------------------------------------------------------------------------------First Phase 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management (AUM). Second Phase 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores. Third Phase 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds. Fourth Phase since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of assets under management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of October 31, 2003, there were 31 funds, which manage assets of Rs. 1,26,726 crores under 386 schemes. The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

Note:Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of the Unit Trust of India effective from February 2003. The Assets

under management of the Specified Undertaking of the Unit Trust of India has therefore been excluded from the total assets of the industry as a whole from February 2003 onwards.

CONCEPT OF MUTUAL FUNDS

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The diagram below describes broadly the working of a mutual fund:

There are many entities involved and the diagram below illustrates the organizational set up of a mutual fund:

ADVANTAGES OF MUTUAL FUNDS:

Professional Management Diversification Convenient Administration Return Potential Low Costs Liquidity Transparency Flexibility Choice of schemes Tax benefits Well regulated

HOW, WHEN AND WHERE INVESTORS INVESTS?

A mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc. The whole cycle goes like this: - Investor invests money in the mutual fund company. The Fund Manager of the Company invests in a number of stocks and bonds in the market. There is profit/loss to the mutual fund company from the market. Then the profit/loss from the market is passed to the investor from the mutual fund company. The company distributes its profits in the form of dividends to the investors.

TYPES OF MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk tolerance and return expectations etc. The table below gives an overview into the existing types of schemes in the Industry.

By Structure

By Investment Objective Growth Schemes Income Schemes Balanced Schemes Money Market Schemes

Other Schemes Tax Saving Schemes Special Schemes Index Schemes Sector Specific Schemes

Open-ended Schemes Close-ended Schemes Interval Schemes

FREQUENTLY USED TERMS Net Asset Value (NAV) Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date. Sale Price Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales load. Repurchase Price Is the price at which a close-ended scheme repurchases its units and it may include a back-end load. This is also called Bid Price. Redemption Price Is the price at which open-ended schemes repurchase their units and close-ended schemes redeem their units on maturity. Such prices are NAV related. Sales Load Is a charge collected by a scheme when it sells the units. Also called, Front-end load. Schemes that do not charge a load are called No Load schemes. Repurchase or Back-end Load Is a charge collected by a scheme when it buys back the units from the unit holders.

PORTFOLIO MANAGEMENT
Portfolio Management with a difference
As Portfolio Managers, we endeavor that every portfolio created must reflect the values on which Prudential ICICI has been built. A commitment towards transparency and service. Add to that, a strong research driven investment process. Since the aim is to create a portfolio that suits investors requirements, managers will first try and understand the needs and investment objectives and on that basis offer portfolios that best suit the objectives of the investors.

Information and accessibility is the key

By providing the information that is updated on a daily basis and unmatched interactivity, a whole new era in portfolio management has now been ushered in. The investors can now have the power to slice, dice and review the portfolio in almost every way imaginable. A first in the industry. Via a password protected website, you will have access to : A portfolio disclosure statement where the entire portfolio will be disclosed. A financial summary comprising the Income Statement and Balance Sheet. A detailed client account statement that allows you to track your inflows and outflows. A transaction statement listing all the transactions made. Calculations of capital gains Comprehensive performance tracking Besides, all the financial statements will be audited and provided to the investors semi-annually and annually. They will also receive the details required to assist in the preparation of your tax returns.

Convenience and customization through our services

One more advantage of being with Prudential ICICI AMC is that the investor will have a team to support him/her. Initially, he/she will interface with a Customer Relationship Manager - the one point contact, and a personal Portfolio Manager the portfolio investment guide, to discuss in depth and understand your investment objectives, risk-return appetite and establish required service levels. On the basis of this, managers shall evolve a portfolio that is best suited for them. Thereafter, Customer Relationship Manager will periodically interact with investor for any other clarifications and services that he/she may require. They may review their portfolio with their personal Portfolio Manager and Customer Relationship Manager at least once every quarter. The managers will always be accessible to them to answer any queries that they may have.

Our Product Range

PruICICI10
This is an aggressive growth oriented portfolio focusing on absolute returns and ideal for investors with a higher appetite for risk. The portfolio will comprise around 10 carefully evaluated stocks, which we believe have the greatest potential. There will be no sector or stock limits in the portfolio.

PruICICIValue
Value stocks are those stocks that are trading below their intrinsic value as measured by parameters like PE ratio, price to book value and dividend yield. Since over time stocks tend to move towards their underlying value, this portfolio is ideal for investors with a medium to long-term horizon. Creating a portfolio is all about understanding customers needs and then bringing the expertise to create a portfolio that is best suited for him/her. Companys dedicated team of portfolio managers is geared to help the customer meet their investment needs.

Why Equity Fund?

Equity funds seek to provide maximum growth of capital with secondary emphasis on dividend or interest income. They invest in common stocks with a high potential for rapid growth and capital appreciation. An equity fund gives an exposure to the stock market. The fund would have long-term growth potential but provide low current income. They are not suitable for investors who are risk averse and are focused on maximizing current income or conserving principal. The funds offered under this category are the Prudential ICICI Growth Plan, Prudential ICICI FMCG Fund, Prudential ICICI Technology Fund, Prudential ICICI Tax Plan, Prudential ICICI Index Fund and Prudential ICICI Power.

The Investment Philosophy.

The overriding objective of the AMC in managing its investments is to produce a consistently above average long-term performance. The AMC believes in a bottom-up approach to stock picking. This means that the focus is on the fundamental quality of companies as opposed to a focus on favored sectors and market movements. The AMC will follow a structured investment process in order to identify the best stocks for inclusion in the portfolio. This would involve consistently examining all stocks under an internally developed research framework. A stock would be considered or inclusion in the portfolio when the valuation does not adequately capture its underlying fundamental value in the AMC's opinion based on the above factors. The AMC's portfolio management style is conducive to a low portfolio turnover rate. However, the AMC will take advantage of the opportunities that present themselves from time to time because of inefficiencies of the securities markets. The AMC will endeavor to balance the increased cost on account of higher portfolio turnover with the benefits derived there from.

Why Balanced Fund?

Balanced funds are more evenly invested in equities and income securities. Balanced and equity-income funds are suitable for conservative investors who want high current yield with some growth. If you seek to generate long-term capital appreciation and current income, an investment in the balanced fund would be ideal. It gives you an exposure to the stock market without the entire risk of the stock market. The funds offered under this category are the Prudential ICICI Balanced Fund and Prudential ICICI Child Care Plan.

 The Investment Philosophy?

The AMC proposes to invest in a mix of equities and fixed income securities with the aim of generating capital appreciation, while at the same time minimizing the volatility inherent in pure equity schemes. With this aim, the AMC would allocate the assets between equity and fixed income instruments within the limits laid down for each scheme.

Why Debt Fund?

The goal of fixed income funds is to provide high current income consistent with the preservation of capital. Growth of capital is of secondary importance. These funds invest in corporate bonds or government securities that have a fixed rate of return. The funds are suitable for investors who want to maximize current income and who do not wish to assume a high degree of capital risk in order to do so. Since bond prices fluctuate with changing interest rates, there is some principal risk involved despite the fund's conservative nature. The funds offered under this category are the Prudential ICICI Income Plan, the Prudential ICICI Gilt-Treasury Fund, Prudential ICICI Gilt-Investment Fund, Prudential ICICI Liquid plan, Prudential ICICI Fixed Maturity Plan, Prudential ICICI Short Term Plan, Prudential ICICI Long Term Plan and Prudential ICICI Sweep Plan

Investment Philosophy?
The AMC aims to identify securities, which offer superior levels of yield at lower levels of risks. With the aim of controlling risks, rigorous in-depth credit evaluation of the securities proposed to be invested in, will be carried out by the investment team of the AMC. The credit evaluation includes a study of the operating environment of the company, the past track record as well as the future prospects of the issuer, the short as well as longer-term financial health of the issuer. Rated debt instruments in which the Scheme invests will be of investment grade as rated by a credit rating agency. In case a debt instrument is not rated, specific approval of the Board of the AMC will be obtained for such an investment. In addition, the investment team of the AMC studies the macro economic conditions, including the politico-economic environment and factors affecting liquidity and interest rates. The AMC would use this analysis to attempt to predict the likely direction of interest rates and position the portfolio appropriately to take advantage of the same.

EQUITY SCHEMES
The Prudential ICICI GROWTH PLAN CIO Nilesh Shah The Growth Plan seeks to generate long-term capital appreciation from a portfolio made up predominantly of equity and equity related securities. It is an ideal investment to plan for long-term needs such as saving for retirement, buying a house, for child's higher education, child's marriage etc. How the managers invest money? The fund manager invest your money in carefully chosen scrips of companies that are fundamentally strong, have been performing well and have a great potential for growth. 95% is invested in Equity and Equity related securities and the remaining 5% in Debt, Money Market and Cash. Invest and withdraw when you want. Being an open ended equity fund, you can enter or withdraw from the fund whenever you want. When you enter, you have to pay an entry load of 2.25% for investment less than Rs. 5 Crores and if your investment is Rs. 5 Crores and above entry load is nil, but you can exit from our fund at anytime without any exit load. The options you enjoy: You have a choice between the Growth, Dividend Payout or Dividend Reinvestment option: Growth Option Is a cumulative option and does not pay dividends and It Is ideal if you are not looking for regular pay-outs. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to the investors. Dividend Reinvestment Option is a lax advantageous option. By opting for this, the dividends that the fund may declare are reinvested to buy you more units. What is the minimum amount to start investing? The minimum application amount is Rs. 5,000 and Rs. 500 is the minimum additional investment. What is the minimum amount that you can withdraw? The minimum amount you can withdraw is Rs. 500. The Systematic Investment Plan The big things in life are always built bit by bit. So also with investments, where a small amount invested regularly can amount to a lot. It is precisely for this that we

have created the SIP (Systematic Investment Plan) in two variations -the monthly option and the quarterly option. To start investing in SIP you need an initial investment of just Rs. 1,000 followed by 8 postdated cheques of a minimum of Rs. 500 each for monthly investments. If you wish to make quarterly investments, then you need to make 4 post-dated cheques of a minimum of Rs. 1,000 each. All postdated cheques need to be dated 7th or 10th of each month.

The Prudential ICICI TAX PLAN CIO Nilesh Shah Those who are looking at planning taxes efficiently the company suggest Tax Plan. Not only does it save tax under Section 88 of the Income Tax Act, 1961; it also has the potential of long-term returns through the stock market. All other options under Section 88 (PPF, NSC, Bonds etc.) represent fixed return investments and hence, there is a ceiling on the returns that can be earned. Only, an investment like our Tax Plan offers the potential for higher returns because it invests in the stock market. What's more, our Tax Plan has a short lock-in period of just 3 years compared to the much longer lockin periods of some other tax saving options like PPF & NSC. How the managers invest money? The managers invest money in shares of companies that are fundamentally strong, have been performing well, are in a strong competitive position and have great potential for growth. 90% is invested in Equity and Equity related securities and the other 10% in Cash. Invest and withdraw when you want after 3 years? When you enter, you have to pay an entry load of 2.25% for investment less than Rs. 5 Crores and if your investment is Rs. 5 Crores and above entry load is nil, After 3 years of investment you can withdraw your money anytime you want. The options you enjoy. You have a choice between the Growth, Dividend Payout or Dividend Reinvestment option. Reinvestment option: Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to you. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. What is the minimum amount to start investing? Rs. 500 is all you need to start investing. However, you can avail of the 20% Income Tax rebate on an amount upto Rs. 10, 000 per annum. What is the minimum amount that you can withdraw? The minimum amount you can withdraw is Rs. 500. The Systematic Investment Plan To start investing on a monthly basis, you need an initial investment of a minimum

of Rs. 500 followed by 9 post-dated cheques of a minimum of Rs. 500 each. All post-dated cheques need to be dated 7th or 10th of each month.

The Prudential ICICI FMCG PLAN CIO Nilesh Shah Investments in leading FMCG (Fast Moving Consumer Goods) companies are now within your reach. All with a minimum amount of Rs. 5,000. Ideal if you're seeking returns from the stock market in the long run and want an exposure to the FMCG sector which has some quality companies like Hindustan Lever, Britannia, Nestle and so on. Picking the best from the fast moving goods sectors FMCGs are products that are typically products purchased and used/consumed on a regular basis or at frequent intervals. Like soaps, detergents, tooth-pastes, shampoos, rice, chocolates, etc. The market potential of fast moving consumer goods is large given that India has the second largest population in the world and most of these products are daily necessities. How the managers invest money? We invest your money in carefully chosen scrips of the FMCG sector companies which are fundamentally strong, have established brands that have the potential to grow and well-entrenched distribution networks. 90% is invested in Equities of FMCG sector and 10% in debt, Money Market and Cash. Invest and withdraw when you want? Being an open ended equity fund, you can enter or withdraw from the fund whenever you want. When you enter, you have to pay an entry load of 2.25% for investment less than Rs. 5 Crores and if your investment is Rs. 5 Crores and above entry load is nil, but you can exit from our fund at anytime without any exit load. The options you enjoy. You have a choice between the Growth, Dividend Payout or Dividend Reinvestment option: Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to you. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. What is the minimum amount to start investing? The minimum application amount is Rs. 5,000 and Rs. 500 is the minimum additional investment. What Is the minimum amount that you can withdraw? The minimum amount you can withdraw is Rs. 500. The Systematic Investment Plan: We have created the SIP (Systematic Investment Plan) in two variations: the monthly option and the quarterly option.

To start investing in SIP you need an initial investment of just Rs. 1,000 followed by 8 post-dated cheques of a minimum of Rs. 500 each for monthly investments. If you wish to make quarterly investments, then you need to make 4 post-dated cheques of a minimum of Rs. 1,000 each. All post-dated cheques need to be dated 7th or 10th of each month.

The Prudential ICICI TECHNOLOGY FUND

Fund Manager Nilesh Shah If you are looking at investing in the high-tech and promising sectors of tomorrow, then we suggest you consider our Technology Fund that invests in the New Economy Sectors like Information Technology, Telecommunication, Life Sciences and Media. Ideal if you are looking for investing in the 'New Economy Sectors' Our Technology Fund seeks to generate long-term capital appreciation for you from a portfolio made up predominantly of equity and equity-related securities of technology intensive companies. It is an ideal investment if you are willing to enjoy the fortunes of particular sectors. How the manager invests money? The manager invest your money in carefully chosen scrips of the Information Technology, Telecom, Life Sciences and Media Sectors that are at the forefront of the New Economy. Sectors that are marching forward with the thrust of new ideas, innovation and break-through marketing. These are all technology intensive sectors. We invest your money in scrips that are fundamentally strong and have a great potential for growth. 90-95% is invested in Equities in the Information Technology, Communication, Biotechnology and Entertainment Industries and 5 - 10% in Debt, Money Market and Cash. Invest and withdraw when you want? Being an open-ended equity fund, you can enter or withdraw from the fund whenever you want. When you enter, you have to pay an entry load of 2.25% for investment less than Rs. 5 Crores and if your investment is Rs. 5 Crores and above entry load is nil, but you can exit from our fund at anytime without any exit load. The options you enjoy. You have a choice between the Growth, Dividend Payout or Dividend Reinvestment option:

What is the minimum amount to start investing?

The minimum application amount is Rs. 5,000 and Rs. 500 is the minimum additional investment. What Is the minimum amount that you can withdraw? The minimum amount you can withdraw is Rs. 500.

The Systematic Investment Plan We have created the SIP (Systematic Investment Plan) in two variations: the monthly option and the quarterly option. To start investing in SIP you need an initial investment of just Rs. 1,000 followed by 8 post-dated cheques of a minimum of Rs. 500 each for monthly investments. If you wish to make quarterly investments, then you need to make 4 post-dated cheques of a minimum of Rs. 1,000 each. All post-dated cheques need to be dated 7th or 10th of each month. The Prudential ICICI POWER Fund Manager Nilesh Shah Type: Open-ended Growth Fund Investment Pattern: Equity and Equity related securities including non convertible portion of convertible debentures - Up to 95% and at least 5% in Debt and Money Market securities. Fund Objective: To generate capital appreciation by actively investing in equity/ equity related securities. For defensive considerations, the Scheme may invest in debt, money market instruments, to the extent permitted under the Regulations. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above so as to maximize the returns. Investment horizon: Suitable for investors seeking long-term capital appreciation through investments in equity and equity related securities. Net Asset Value (NAV): Calculated & Declared on every Business Day. Option: Cumulative & Dividend Application Amount: Rs. 5,000/- (plus in multiples of Re. 1) Min. Additional Investment: Rs.500/- and in multiples thereof Entry Load (i) For investments of less than Rs. 5 Crores: Entry load at 2.25% of applicable NAV. (ii) For investments of Rs. 5 crores and Above: Nil Exit Load: Nil Redemption Cheques Issued: Generally Within 2 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Minimum Redemption Amt. Rs.500/Systematic Investment Plan: Monthly: Minimum Rs. 1,000 + 8 post-dated cheques for Rs. 500 each.Quarterly: Minimum Rs. 1,000 + 4 post-dated cheques for Rs. 1000 each.

Systematic Withdrawal Plan: Minimum of Rs.500/- and Multiples thereof.

The Prudential ICICI INDEX FUND Fund Manager Nilesh Shah Type Open-ended Index Linked Growth Scheme Investment Pattern: Equity stocks drawn from the components of the S&P CNX Nifty and the exchange traded derivatives on the S&P CNX Nifty upto 100%. Money Market instruments upto 10% Fund Objective: The Nifty Plan of the Index Fund seeks to track the returns of the S&P CNX Nifty through investments in a basket of stocks drawn from the constituents of the above index Investment horizon: Suitable for investors who seek to invest in equity securities Option Nifty Plan. Cumulative Option Application Amount: Rs.5,000 (plus multiples of Rs 1000) Min. Additional Investment: Rs.1000/Entry Load: Nil Exit Load: 0.50% -for purchase transaction upto Rs.5 lac if the investment is redeemed before 1 years and Nil -for all purchase transaction over Rs. 5 lac Redemption Cheques Issued: Within 5 Business Days Minimum Redemption Amt.: Rs.1000/Systematic Investment Plan Monthly: Minimum Rs.5000/- + 6 post dated cheques of Rs 1,000/- Quarterly: Minimum Rs.5000 + 4 post dated cheques of Rs 1,500 Systematic Withdrawal Plan: Minimum of Rs.1000 and multiples thereof.

The Prudential ICICI DYNAMIC PLAN Fund Manager Nilesh Shah Type: Open-ended equity fund Investment Pattern: 0 - 100% = Equity & Equity related securities. 0 - 100% = Debt & Money Market Instruments Fund Objective: To generate capital appreciation by actively investing in equity / equity related securities. For defensive considerations, the Scheme may invest in debt, money market instruments, to the extent permitted under the Regulations. The AMC will have the discretion to completely or partially invest in any of the type of securities stated above so as to maximize the returns. Investment horizon: Suitable for investors with an investment horizon of 2 - 3 years Option: Growth & Dividend Application Amount: Rs.5,000/- (plus in multiples of Re. 1) Min. Additional Investment: Rs.500/- and in multiples thereof Entry Load: (i) For investments of less than Rs. 5 Crores : Entry load at 2.25% of applicable NAV.(ii)For investments of Rs. 5 crores and Above : Nil Exit Load: Nil Redemption Cheques Issued: Generally Within 2 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Minimum Redemption: Amt. Rs. 500/Systematic Investment Plan Monthly: Rs. 1000 + 8 post-dated cheques for a minimum of Rs.500 Quarterly: Rs. 1000 + 4 post-dated cheques for a minimum of Rs. 1000 Systematic Withdrawal Plan: Minimum of Rs.500/- and Multiples thereof.

BALANCED FUND
The Prudential ICICI BALANCED FUND You want your money to earn stable returns, and at the same time, you are attracted by the returns of the share market. If you're looking for the ideal mix of the two, we suggest you consider our Balanced Fund. 60% Equity, 40% Debt, 100% Ideal. Our Balanced Fund invests in the share market, debt securities and money market instruments and seeks to provide you a mix of long-term returns and regular income. How the managers invest money? The managers invest your money in a carefully chosen mix of equity and debt instruments. The equity scrips are chosen for their fundamental strength, good and consistent performance and potential for growth. High quality debt instruments like Debentures, Government Securities are selected to give stable returns. To give you a balance between steady returns and capital appreciation, 60% is invested in equity and equity related securities and 40% in debt, money market instruments and cash. Invest and withdraw when you want: When you enter, you have to pay an entry load of 2.25% for investment less than Rs. 5 Crores and if your investment is Rs. 5 Crores and above entry load is nil, but you can exit from our fund at anytime without any exit load. The options you enjoy: You have a choice between the Growth, Dividend Payout or Dividend Reinvestment option. Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to you in cash. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. What is the minimum amount to start investing? The minimum application amount is Rs. 5,000 and Rs. 500 is the minimum additional investment. What is the minimum amount that you can withdraw? The minimum amount you can withdraw is Rs. 500. The Systematic Investment Plan: We have created the SIP (Systematic Investment Plan) in two variations: the monthly option and the quarterly option. To start investing in SIP you need an initial investment of just Rs. 1,000 followed by 8 post-dated cheques of a minimum of Rs. 500 each for monthly investments. If you wish to make quarterly investments, then you need to make 4 post-dated cheques

of a minimum of Rs. 1,000 each. All post-dated cheques need to be dated 7th or 10th of each month.

The Prudential ICICI CHILD CARE PLAN CIO Nilesh Shah Your child, your bundle of joy. He's small but dreams big. Why shouldn't he? After all, the future belongs to him. Invest in our Child Care Plan and make his dreams come true. You always want to give your child the best in life. Depending on the age of your child, your needs may vary, for which we have two offerings to choose from: Gift Plan: is ideal if your child is in the age group of 1-13 years and you looking to save over a long-term horizon. Study Plan: is ideal if your child is between 13-17 years and on the threshold of higher studies, for it will help you meet those large expenses looming ahead. How the manager invest money? The manager invests your money in a carefully chosen mix of equity and debt instruments. Gift Plan: Between 51-60% in equity and equity related securities and 40-49% in debt instruments. Study Plan: Between 85-100% in debt instruments and 0-15% in equity and equity related securities. Invest and withdraw when you want: When you enter the Child Care Plan you have to pay a charge of 1.50%. Should you decide to exit from the Child Care Plan you have to pay a charge of 1.00% if the investment is redeemed within 3 years. Nil if investment is redeemed after 3 years but before the Beneficiary Child attains the age of 18. The options you enjoy: Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. What is the minimum amount to start investing? The minimum application amount is Rs. 5,000 and the additional investment can be made in multiples of Re. 1. What Is the minimum amount that you can withdraw? The minimum amount you can withdraw is Rs. 1,000. Special Features: Scholarship scheme: Meritorious children will be eligible for financial assistance of up to Rs. 1,00,000 to pursue further studies subject to the terms to be announced by the Board of Trustees to the scholarship scheme.

Personal Accident Insurance cover: Till your child attains 18 years of age, the parent/legal guardian will be eligible for Personal Accident cover, equivalent to 10 times the value of the Units (valued at purchase price) subject to a maximum limit of Rs. 3 lakhs. The Systematic Investment Plan: The big things in life are always built bit by bit. So also with investments, where a small amount invested regularly can amount to a lot. It is precisely for this that we have created the SIP (Systematic Investment Plan) in two variations: the monthly option and the quarterly option. To start investing on a monthly basis, you need an initial investment of Rs. 3,000 and 6 post-dated cheques of a minimum of Rs. 1,000 each. If you wish to invest on a quarterly basis, you need an initial investment of Rs. 3,000 and 4 post-dated cheques of a minimum of Rs. 1,500 each. The cheques should be dated 7th or the 10th of each month.

DEBT SCHEMES
The Prudential ICICI LIQUID PLAN CIO Nilesh Shah Very often you tend to leave large sums of money in your savings bank account indefinitely. Every day that your money lies 'idle', you are actually missing out the opportunity to earn better returns. Our Liquid Plan is an ideal investment for short periods of time ranging from 7 to 90 days. Our Liquid Plan offers you the potential returns of the money markets (which have usually been better than the savings bank rate) and your money back in just one business day, should you need it. How the manager invests your money? The manager invest your money in a basket of high quality short-term debt instruments like Money Market instruments, Commercial Paper, Call Money, Debentures and Bonds to ensure that you enjoy safety, liquidity and good returns on your investment. Invest and withdraw when you want? Our Liquid Plan is an open-ended liquid debt fund. This means that you can start investing in our fund any time or withdraw your money anytime you want. You can enter or exit our fund without any charges on any Business Day. The options you enjoy: You have the choice of either the Growth or Dividend Reinvestment options. Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. What is the minimum amount to start investing? Growth option: The minimum application amount is Rs. 15,000 and Rs. 5,000 is the minimum additional investment. Dividend Reinvestment Option: The minimum application amount is Rs. 1,00,000 and Rs. 5,000 is the minimum additional investment. What is the minimum amount that you can withdraw? Under the Growth option, the minimum amount you can withdraw is Rs. 5000 and in the Dividend Reinvestment option, you can withdraw a minimum amount of Rs. 5,000.

The Prudential ICICI INCOME PLAN CIO Nilesh Shah Calm, Cool and Relaxed as your investments are well looked after. It's amazing how you feel when you know your money is well looked after. Calm, comfortable and tension free. Exactly the same sentiments when you invest in our Income Plan. Our Income Plan aims at creating an ideal balance between maximising your returns and yet minimising risk. The Plan invests only in debt securities so you don't have to worry about the volatility of the stock markets, thus ensuring your peace of mind. How the manager invests your money? We invest your money in a basket of high quality Bonds and Government Securities with over 80% of it in AAA rated or equivalent instruments. Invest and withdraw when you want? When you invest in our fund you do not have to pay any charges.If you invest above Rs. 10 lakhs exit load is Nil. If you invest Rs. 10 lakhs or less and redeem your investment within 6 months, then you have to pay a charge of 0.50%. The options you enjoy. You have the choice of either the Growth, Dividend Payout or Dividend Reinvestment option. Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to you. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. What is the minimum amount to start investing? The minimum application amount is Rs. 5,000 and Rs. 500 is the minimum additional investment. What is the minimum amount that you can withdraw? The minimum amount that you can withdraw is Rs. 500. The Systematic Investment Plan: We have created the SIP (Systematic Investment Plan) in two variations: the monthly option and the quarterly option. To start investing in SIP you need an initial investment of just Rs. 1,000 followed by 8 post-dated cheques of a minimum of Rs. 500 each for monthly investments. If you wish to make quarterly investments, then you need to make 4 post-dated cheques of a minimum of Rs. 1,000 each. All post-dated cheques need to be dated 7th or 10th of each month.

The Prudential ICICI GILT FUND CIO Nilesh Shah Calm, Cool and Relaxed as your investments are well looked after. It's amazing how you feel when you know your money is well looked after. Calm, comfortable and tension free. Exactly the same sentiments when you invest in our Income Plan. Our Income Plan aims at creating an ideal balance between maximising your returns and yet minimising risk. The Plan invests only in debt securities so you don't have to worry about the volatility of the stock markets, thus ensuring your peace of mind. How we invest your money? We invest your money in a basket of high quality Bonds and Government Securities with over 80% of it in AAA rated or equivalent instruments. Invest and withdraw when you want? Our Gilt Fund is an open ended debt fund. This means that you can start investing in our fund any time or withdraw your money anytime you want. You can enter or exit our fund without any charges on any Business Day. The options you enjoy. You have the choice of either the Growth, Dividend Payout or Dividend Reinvestment option. Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to you. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. What is the minimum amount to start investing? The minimum application amount is Rs. 25,000 and Rs. 5000 is the minimum additional investment. What is the minimum amount that you can withdraw? The minimum amount that you can withdraw is Rs. 5000. The Systematic Investment Plan: Not Available The Systematic Withdrawal Plan: Not Available

The Prudential ICICI MONTHLY INCOME PLAN CIO Nilesh Shah Regular income month after month So what if your monthly salary stops after retirement? Your lifestyle need not change. Because now you can keep the cheque coming in month after month by investing in our Monthly Income Plan. Our Monthly Income Plan seeks to generate regular income and long-term capital appreciation for you by investing in Debt and equity related securities. It is ideal if your investment horizon is from the medium to the long-term. How the manager invests your money? The manager invests your money in a judicious mix of high quality fixed income securities (Bonds, Debentures, Government Securities and Money Market Instruments) and a small portion in shares. The investments, upto 85%, in fixed income securities enable us to make monthly/quarterly/halfyearly dividend distribution to you if you are seeking the Dividend option. Long-term capital appreciation is achieved by investing a portion, about 15%, in the share market. Invest and withdraw when you want? When you invest in our fund you do not have to pay any charges. If you invest above Rs. 10 lakhs exit load is Nil. If you invest Rs. 10 lakhs or less and redeem your investment within 6 months, then you have to pay a charge of 0.50% The options you enjoy. You have a choice between Growth, Dividend Payout (monthly, quarterly, half-yearly) or Dividend Reinvestment option. Growth Option is a cumulative option where the value of the units keeps getting updated depending on the capital markets. Dividend Payout Option through which the dividends that may be declared by the fund are paid out to you. Dividend Reinvestment Option through which the dividends that fund may declare are reinvested to buy more units. The unique Automatic Encashment Plan: Our Monthly Income Plan offers the unique Automatic Encashment Plan (AEP). Through AEP you can opt for automatic redemption and payment facilities on a monthly, quarterly, half-yearly basis depending on your cash flow requirements. To enjoy this redemption, a part of your investment will be periodically redeemed by us. The amount that will be redeemed will be equivalent to the amount of dividend (and dividend tax) that we will be paying out. Since the redemption of units are not in the nature of dividend payments, the fund is not required to pay the dividend distribution tax of 12.185%, and for some this may be a more tax efficient option than the dividend option. What is the minimum amount to start investing? The minimum application amount for MIP-Dividend Option is Rs. 25,000 and for MIP-Cumulative option is Rs. 5,000. However for investors having application

money less than Rs. 25,000 will not be allowed to opt for Automatic Encashment Plan until their investment exceeds the limit of Rs. 25,000. Rs. 500 is the minimum additional investment. What is the minimum amount that you can withdraw? The minimum amount that you can withdraw is Rs. 500. The Systematic Investment Plan: We have created the SIP (Systematic Investment Plan) in two variations: the monthly option and the quarterly option. To start investing in SIP for the MIP-Dividend Option (with AEP) you need an intial investment of a minimum of Rs. 10,000 followed by 6 post-dated cheques of a minimum of Rs. 2,500 each for monthly investments. If you wish to make quarterly investments, then you need to make 4 post-dated cheques of a minimum of Rs. 3,750 each. And for MIP-Cumulative Option (without AEP) the initial investment of a minimum of Rs. 1,000 followed by 8 post-dated cheques of a minimum of Rs. 500 each for monthly investments and Rs. 1,000 as an initial investment for quarterly investment followed by 4 post-dated cheques of a minimum of Rs. 1,000 each. All post-dated cheques need to be dated 7th or 10th of each month.

The Prudential ICICI FIXED MATURITY PLAN Fund Manager Nilesh Shah Type: Open-ended debt fund Investment Pattern: 100% in Debt Securities, Money Market, Securitised Debt & Cash (including money at call) Fund Objective: To generate regular returns from a basket of Debt Securities especially for investors who have a fixed time horizon. Investment horizon: Suitable for investors looking for steady returns at relatively low risk across a medium to long term horizon. Option: Cumulative & Dividend Application Amount: Rs. 25,000/- (plus multiples of Re 1) Min. Additional Investment: Rs.5,000/- for each option of each Series of the Plan Entry Load: Nil Exit Load: 0.50% - for the Quarterly Plan 1.00% - for the Half yearly Plan 2.00% for the Yearly Plan Exit load will be applicable if the redemption is made on any day other than the Specified Redemption date. There is no exit load if redemption is made on the Specified Redemption Date. 1.00% - for the Half yearly Plan 2.00% for the Yearly Plan Exit load is applicable if the redemption is not made on a Specified Redemption date. There is no exit load if redemption is made on the Specified Redemption Date. Redemption Cheques Issued: Within 1 Business Days Minimum Redemption Amt: Rs. 1000/Systematic Investment Plan: Not Available Systematic Withdrawal Plan: Not Available

The Prudential ICICI SHORT TERM PLAN Fund Manager Nilesh Shah Type: Open Ended Income Fund Investment Pattern: Debt Securities upto 100%,Money Market Instruments and Cash upto 50% Fund Objective: To generate income through investment in basket of debt securities and money market instruments. Investment horizon: Suitable for investors looking for steady returns at relatively low risk across a short to medium term horizon. Option: Cumulative Option and Dividend Reinvestment Option (Fortnightly & Monthly) Application Amount: Rs. 5000/- (plus multiples of Re 1) Min. Additional Investment: Rs.500/- and in multiples thereof Entry Load: Nil Exit Load: Nil Redemption Cheques Issued: Generally Within 1 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Minimum Redemption Amt: Rs. 500/Systematic Investment Plan: Not Available Systematic Withdrawal Plan: Not Available

The Prudential ICICI LONG TERM PLAN Fund Manager Nilesh Shah Type: Open Ended Income Fund Investment Pattern: Debt Securities upto 100% & Money Market and Cash upto 10% Fund Objective: To generate income through investments in a basket of debt and money market instruments of various maturities with a view to maximise income while maintaining the optimum balance of yield,safety and liquidity. Investment horizon: Suitable for investors looking for steady returns at relatively low risk across a medium to long term horizon. Option: Cumulative Option , Dividend and Dividend Reinvestment Option. Application Amount: Rs 5000/- (plus multiples of Re 1) Min. Additional Investment: Rs.500/Entry Load: Nil Exit Load: 0.75% of Applicable Net Asset Value (NAV) in case the amount sought to be redeemed Redemption Cheques Issued: Within 1 Business Day Minimum Redemption Amt: Rs. 500/Systematic Investment Plan: Monthly: Minimum Rs. 1000 + 6 post-dated cheques for a minimum of Rs. 750 each. Quarterly: Minimum Rs. 1000 + 4 post-dated cheques for a minimum of Rs. 1,000 each. Systematic Withdrawal Plan: Not Available

The Prudential ICICI FLEXIBLE INCOME PLAN Fund Manager Nilesh Shah Type: Open-ended Income Fund Investment Pattern: 10 100% = Money market and Debentures with residual maturity of less than 1 year. 0 90% = Debt instruments with maturity more than 1 year. Fund Objective: To generate income through investments in a range of debt instruments and money market instruments of various maturities with a view to maximizing income while maintaining the optimum balance of yield, safety and liquidity. Investment horizon: Suitable for investors looking at avenues to invest surplus funds in medium to long-term horizon Option: Cumulative and Dividend Option(Quarterly & Half Yearly) Application Amount: Rs 5000/- (plus in multiples of Re 1) Min. Additional Investment: Rs.500/- and in multiples thereof Entry Load: Nil Exit Load: Nil Redemption Cheques Issued: Generally Within 1 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Minimum Redemption Amt: Rs. 500/Systematic Investment Plan: Monthly: Rs. 1000 + 8 post-dated cheques for a minimum of Rs.500 Quarterly: Minimum Rs. 1000 + 4 post-dated cheques for a minimum of Rs. 1000 Systematic Withdrawal Plan: Minimum of Rs.500/- and Multiples thereof

The Prudential ICICI SWEEP PLAN Fund Manager Nilesh Shah Type: Open-ended Liquid Fund Investment Pattern: Money Market instruments including money at call -Up to 100% Debt Securities- Up to 40% Fund Objective: To seek to provide reasonable returns, commensurate with low risk while providing a high level of liquidity, through investments made primarily in money market and debt securities. The aim is to optimize returns while providing liquidity. Investment horizon: Suitable for investors looking for short-term investment at relatively low risk. Option: Cumulative Option Application Amount: Rs.5,000 Min. Additional Investment: As agreed with the Designated Bank(s) from time to time. Entry Load: Nil Exit Load: Nil Redemption Cheques Issued: Not Applicable Minimum Redemption Amt: Minimum of Re.1 Systematic Investment Plan: Not Available Systematic Withdrawal Plan: Not Available

The Prudential ICICI FLOATING RATE PLAN Fund Manager Nilesh Shah Type: Open-ended Income Fund Investment Pattern: 65 100% = Floating Rate Dedt Instruments. 0-35% = Fixed rate debt instruments with maturity less than 1 year. Fund Objective: To generate income consistent with the prudent risk from a portfolio comprising substantially of floating rate debt instruments, fixed rate debt instruments swapped for floating rate return and also fixed rate instruments and money market instruments. Investment horizon: Suitable for investors looking at avenues to invest surplus funds in medium term horizon Option: Cumulative and Dividend Option and Dividend Reinvestment Application Amount: Option A: Rs 10000/- (plus in multiples of Re 1), Option B: Rs 1000000/- (plus in multiples of Re 1), Option C: Rs 50,000,000/- (plus in multiples of Re 1) Min. Additional Investment: Rs 1000/- and in multiples thereof Entry Load: Nil Exit Load: Option A: For Investment of Less than Rs.10 Lakhs @0.50% of applicable NAV in case of the amount sought to be is not being invested under the option for a minimum period of 12 Months. Option B: Nil, Option C: Nil Redemption Cheques Issued: Generally Within 1 business day for Specified RBI locations and additional 3 Business Days for Non-RBI locations Minimum Redemption Amt: Rs. 500/- and multiples thereof Systematic Investment Plan: Not Available Systematic Withdrawal Plan: Not Available

The Prudential ICICI GILT FUND (INVESTMENT) Fund Manager Nilesh shah Type: Open-ended Gilt Fund (Investment - PF) Investment Pattern: The Plan aims at generating returns commensurate with zero credit risk by investing in securities created and issued by the Central Government and /or a State Government and/or repos/reverse repos in such government securities as may be permitted by RBI. The Plan may also invest a portion of the corpus in the call money market or in an alternative investment for the call money market as may be provided by RBI to meet the liquidity requirements. The Fund will seek to underwrite issuance of Government Securities subject to the prevailing rules and regulations as may be specified by SEBI/ RBI in this respect and may also participate in the auction of Government securities from time to time. Fund Objective: The primary investment objective of the Plan is to generate income through investments in Gilts of various maturities. However, there can be no assurance that the investment objective of the Plan will be realized. Investment horizon: Suitable for investors looking for steady returns at relatively low risk across a medium to long term horizon Option: The Plan offers a Cumulative Option and an Automatic Appreciation Payout Plan with Monthly, Quarterly, Half Yearly and Yearly Options. Application Amount: Rs.25,000/- (plus in multiples of Re. 1) Min. Additional Investment: Rs.5000/- and in multiples thereof Entry Load: Nil Exit Load: Exit load at 0.60% of applicable Net Asset Value (NAV) in case the amount sought to be redeemed is not being invested under the Plan for a minimum period of 365 days. Redemption Cheques Issued: The Fund will, under normal circumstances, endeavor to dispatch the redemption cheques within 1 Business Day from the date of acceptance of the redemption request at any of the Customer Service Centers. This service standard will apply only at the centers where RBI handles clearing directly and is able to transfer funds from Mumbai on the same-day-value basis. In respect of all non-RBI centers, for redemption payments, AMC will take additional day(s) not exceeding 3 Business Days- that would essentially be linked to the time taken by banks to clear funds at such Non-RBI centers. Minimum Redemption Amt: Rs. 5,000/Systematic Investment Plan: Not Available Systematic Withdrawal Plan: Not Available

The Prudential ICICI GILT FUND (TREASURY) Fund Manager Nilesh Shah Type: Open-ended Gilt Fund (Treasury - PF) Investment Pattern: The Plan aims at generating returns commensurate with zero credit risk by investing in securities created and issued by the Central Government and /or a State Government and/or repost/reverse repost in such government securities as may be permitted by RBI. The Plan may also invest a portion of the corpus in the call money market or in an alternative investment for the call money market as may be provided by RBI to meet the liquidity requirements. The Fund will seek to underwrite issuance of Government Securities subject to the prevailing rules and regulations as may be specified by SEBI/ RBI in this respect and may also participate in the auction of Government securities from time to time. Fund Objective: The primary investment objective of the Plan is to generate income through investments in Gilts of various maturities. However, there can be no assurance that the investment objective of the Plan will be realized. Investment horizon: Suitable for investors looking for steady returns at relatively low risk across a medium to long term horizon Option: The Plan offers a Cumulative Option and an Automatic Appreciation Payout Plan with Monthly, Quarterly, Half Yearly and Yearly Options. Application Amount: Rs.25,000/- (plus in multiples of Re. 1) Min. Additional Investment: Rs.5000/- and in multiples thereof Entry Load: Nil Exit Load: Exit load at 0.80% of applicable Net Asset Value (NAV) in case the amount sought to be redeemed is not being invested under the Plan for a minimum period of 365 days. Exit Load Nil if the amount is invested for more than 365 days. Redemption Cheques Issued: The Fund will, under normal circumstances, endeavor to dispatch the redemption cheques within 1 Business Day from the date of acceptance of the redemption request at any of the Customer Service Centers. This service standard will apply only at the centers where RBI handles clearing directly and is able to transfer funds from Mumbai on the same-day-value basis. In respect of all non-RBI centers, for redemption payments, AMC will take additional day(s) not exceeding 3 Business Days- that would essentially be linked to the time taken by banks to clear funds at such Non-RBI centers. Minimum Redemption Amt: Rs. 5,000/Systematic Investment Plan: Not Available Systematic Withdrawal Plan: Not Available

The Prudential ICICI INCOME MULTIPLIER FUND Fund Manager Nilesh Shah Type: Open-ended Debt Fund Investment Pattern: Equity & Equity Related securities 0-30%, Debt Instruments 65-100%, Cash & Money Market Instruments 0-5%. Fund Objective: To generate long-term capital appreciation from a portfolio that is invested predominantly in debt and money market securities and the balance in equity and equity related securities. Investment horizon: Suitable for investors those who have conventionally been opting for fixed income instruments and are now looking at taking advantage of the potential of equity. Option: Cumulative, Dividend and Dividend Reinvestment Option. Application Amount: Rs.5,000/- (plus in multiples of Re. 1) Min. Additional Investment: Rs.500/- and in multiples thereof Entry Load: (i) For investments of less than Rs. 10 Lakhs : Nil.(ii) For Investments of Rs. 10 Lakhs and above but less than Rs. 5 Crores: Entry load at 0.50 % of applicable NAV. (iii)For investments of Rs. 5 crores and Above : Nil Exit Load: Any purchase transaction less than - 1.0% if exit within 12 months ; Any purchase transaction of Rs. 10 lakhs and Above but less than Rs.5 Crores : 0.5% if exit within 12 months ; Any purchase transaction of above Rs. 5 Crores : Nil. Redemption Cheques Issued: Generally Within 1 business day for Specified RBI locations and additional 1 Business Days for Non-RBI locations. Minimum Redemption Amt: Rs. 500/Systematic Investment Plan: Monthly: Minimum Rs. 1000 + 8 post-dated cheques for a minimum of Rs. 500 each. Quarterly: Minimum Rs. 1000 + 4 post-dated cheques for a minimum of Rs. 1,000 each. Systematic Withdrawal Plan: Minimum of Rs.500/- and Multiples thereof

FINDINGS AND ANALYSIS

The initial stage of the project was not very exploring, but as the project progressed many facts came in front. The main findings are: The population that was targeted was of well-educated professionals. For example, Chartered Accountants are considered as financial doctors. They are known for their perfect advice. It is considered that they know the finances best. Instead of all these facts, there is a lot of misconception regarding Mutual Funds in many Chartered Accountants. The same thing follows with other professional candidates also. Those candidates who were already in Insurance sector were interested to know the concept, its benefits, limitations and risks of Mutual Fund. The candidates, up to the age group of 35-45 were risk averse as compared to candidates of above age group. They were keener to know the concept. The candidates above the age group 35-40 were resistant. They were satisfied with what they are currently doing. It is found that there is a lack of knowledge regarding the benefits of investing in a Mutual Fund. Most candidates reacted negatively when I introduce myself as a representative of a Mutual Fund Company. But after I explained the concept to them, they show some positive signs and entertain well. There were many candidates, which in spite of approaching 2-3 times to their offices were not able to meet personally. The candidates of these categories can be expected to be good prospects.

Graphically the FINDINGS can be better understood:

Age Group

2% 0% 6% 20-25 25-30 30-35 35-40 40-45 45-50 50-55 55-60

14%

12% 8%

22% 36%
GRAPH 1

Graph 1 shows a sample from the population of all those candidates who were interested in giving AMFI Examination. It can be seen that the majority of candidates were under the 35-40 Age group. It indicates that professionals under the age group 35-40 are interested to know more about mutual funds. The candidates under age group of 40-45 are also good prospects. It surprised me a lot because young professionals (Age Group 30-35 and below) are expected to be less risk averse than the experienced professionals. The answer to the question can be given as: Professionals of age groups 35-40 are well experienced and understand the market more. As compared to it, a fresh professional has lack of experience and until he/she is quite familiar to the field (mutual funds), will not enter into a new field immediately, of which he/she is not aware. It is found that many professionals are satisfied with their current earnings so they dont want to enter into a new field. Their perception is that their current business is giving them enough money, so why should they jump in a new field. Candidates of the age group 20-25 are very less because the main target of the project was Financial Professionals who must be of the age group 25-30 and above. The maximum candidates were of age group 35-40 (36%). On the second place is age group 40-45 (22%) and the third place is age group 45-50 (14%).

The next sep was to answer a question: Are the candidates potential enough to increase the business of the company? The candidates are marked according to four types of criteria: Curiosity, Motivation, Interest and the Overall response got from them. The maximum marks a candidate can obtain are 20 (5 marks each category). The total marks comes to 250 each category in a sample size of 50. The details of each category is given under: Curiosity: It is calculated on the basis of curiosity shown by the candidate when the concept of mutual fund is told to them. Motivation: It is calculated on the basis of the motivational skills of a candidate. How much motivated is he/she towards the concept. It also depends on the skills of the candidates; different candidates have different level of motivation. Interest: It is calculated on the basis of two different criteria: attention or concentration and awareness of the candidate. Attention/ Concentration: How much attention is he/she paying when he is told the concept? Awareness: How much aware is the candidate about mutual fund and Prudential ICICI and the schemes provided by the company. Overall Response: What is the overall response from interviewing the candidates. How much marks can be allotted to him/her from above three points.

Graphically the above question can be better answered.

Attributes (Points)
205 200 195 190 185 180 175 Curiosity Motivation Interest Overall Response 184 193 190

201

GRAPH 2 Graph 2 shows the points obtained by the candidates in each category. In the first category (that is Curiosity), the candidates got 193 pts out of 250 pts. It is not a good score. The reasons behind this are: The concept is quite new to the many candidates and so they didnt showed much curiosity. All the professionals I met are well established in their current professions, so they dont have enough time to devote towards Mutual Funds. A major part of candidates were Chartered Accountants and were busy in their audit schedules. In the second category (that is Motivation), the candidates got 184 pts out of 250 pts. Its a very low score. The reasons behind this are: Many candidates were satisfied with their current earnings. They were not ready to enter a new field. The past performance of the schemes of the company was a big barrier in their motivation.

In the third category (that is Interest), the candidates got 201 pts out of 250 pts. It is a good score as compared to previous two. The reasons behind this are: There is a lot of misconception among the candidates, which has to be cleared. Once their doubts and misconception is cleared, they showed a lot of Interest. At the first sight it seems as if they are not going to entertain but as the interview proceeds they showed interest and entertain well (Except some exceptions). Some candidates have only heard about Mutual Fund, but were not known to the whole concept and functioning. When facts were shown to them they showed a lot of interest. In the fourth category (that is Overall Response), the candidates got 190 pts out of 250 pts. The overall response of the candidates can be considered as satisfactory. This criterion is based on all the above responses got while interviewing the candidates.

Attributes (%)
82 80 78 76 74 72 70 80.4 77.2 73.6 76

Curiosity

Motivation
GRAPH 3

Interest

Overall Response

Graph 3 shows the percentage of points that each category obtained. The candidates were very interested to know the concept of Mutual Funds. There are many cases when the candidates were not interested in the concept at initial stage, but when they were approached 2-3 times to solve their queries then they showed interest and appeared for the AMFI Exam.

Different grades were allotted to the candidates interviewed. Grades were categorized in five types, namely: Diamond, Gold, Silver, Bronze and Iron. Diamond:

Those candidates who will appear in AMFI Exam.

Those candidates who were interested in Mutual Funds and are good prospects for the agency expansion. They can become good agents for the future. Already deals in a field related to Mutual Funds. Can provide good clients to the company through their strong network. Gold: Are curios to know more about mutual funds. Can become active agents of the company. Are quite sure about appearing in AMFI Exam. Silver: Look like good prospects but will not give AMFI Exam. Have investments in mutual fund. Are LIC Agents. Bronze: Will not give AMFI Exam. Have some reason for lack of interest in Mutual Funds. Iron: Are not at all interested in Mutual Funds. Will not give AMFI Exam. Have suffered loss in Mutual Funds before and has no interest and trust left.

Graph 4 shows the grade of the candidates. In a sample size of 50 how many of the candidates are of each category.

Grade Categorisation
20 15 10 5 0 Diamond Gold Silver
GRAPH 4 As it can be seen in Graph 4 that majority of candidates are in the Diamond (18 out of a sample of 50) and Gold (17 out of a sample of 50). Silver, Bronze and Iron categories have 6, 5 and 4 candidates respectively.

18

17

Bronze

Iron

By dividing the percentage of candidates of each category,

Grade Categorisation (%)

40 35 30 25 20 15 10 5 0 36 34

12

10

Diamond

Gold

Silver
GRAPH 5

Bronze

Iron

Graph 5 shows the percentage of candidates in each category. 36% candidates are in the Diamond category. All these candidates are interested in appearing in AMFI Exam. They have a good network and can expand the business of the company. These candidates are good prospects. 34% candidates are in the Gold category. These candidates are also interested in appearing in AMFI Exam but they have some queries, which are to be solved out after they got the AMFI Certificate. 12% candidates are in the Silver Category. These candidates were not interested in appearing in AMFI Exam. They were not able to come to a decision and finally gave a negative response. These candidates invest in Mutual Funds through an Agent. These candidates are LIC Agents. 10% and 8% candidates were of Bronze and Iron category. These candidates are not interested in investing in Mutual Funds because of reasons like they are risk averse or stock market is not favorable to invest in a Mutual Fund, etc.

RECOMMENDATION
There should be an orientation session conducted for the management trainees. This will introduce the trainees to the members and help them to perform their jobs in a better way. To give more focus towards imparting education. During the project it was seen that many candidates were lacking the complete knowledge about mutual funds. The company should have feed back from market and consumer about the products. The company should associate itself with some games or tournaments like football, cricket and so on. Free gifts in the peak season during festive season like costly pens, wall clocks, etc. Company should provide sponsored t-shirts to staff members. Company should maintain healthy relationship with market channel (agents). It boosts the brand image, sales and goodwill of the company and product as well.

LIMITATIONS

The first limitation is that the questionnaires were not filled by the candidates but by the interviewer (myself) on the basis of observations got throughout the interview. So, the results generated from the questionnaires are not 100% accurate.

The problem that I faced was that many Chartered Accountants (projects main clients) were not cooperating with me. They were quite busy with their schedules so were not ready to listen even a single word.

Many Chartered Accountants and Company Secretaries were mixing ICICI Prudential Life Insurance with Prudential ICICI Asset Management Company (Mutual Funds). The reason they didnt entertained was that as they were already investing in ICICI Prudential Life Insurance and were known to all the schemes, it was of no use to listen to the same thing again and again.

Most of the Chartered Accountants were busy in auditing so I have to move to their office for a couple of times. It happened that even after being there for a couple of times they were not available at their offices. I was not able to meet some of the C.A. till the end.

SWOT ANALYSIS STRENGTH WEAKNESS OPPORTUNITY THREAT

STRENGTHS
The main strength of Prudential ICICI Asset Management Company is the strong network of ICICI Bank. ICICI Bank has one of the largest networks in India. The reason behind this is the existence of ICICI in almost all the financial services. Also ICICI Bank is Indias premier financial institution. The other advantage is that Prudential is one of the best financial institutions (Insurance company) in UK. So the company enjoys a lot of brand name. Brilliant top management: Managing Director like Mr. Pankaj Razdan and Chief Investment Officer like Nilesh Shah are major strengths to the company. Nilesh shah is one of the best fund managers of the country. With the formal environment prevailing in the company, friendly and informal environment prevailing in the company adds to its strengths. With Asset Under Management (AUM) of over 16,000 crores, the company has strong financial pools. The schemes prevailing in the company are so diversified and well planned that one of the schemes probably matches the investment criteria of every investor.

WEAKNESS
The policies of the company are not focusing on imparting education regarding Mutual Funds as it is seen that many candidates were either confused or they were unknown to the concept of Mutual Fund.

OPPORTUNITIES
There is a wide market open for the company as this concept is new. ICICI Banks name makes it a step ahead of other mutual fund companies. The company can make good use of the brand image of ICICI. It is seen that many customers lack knowledge about what exactly is a mutual fund and what benefits they can enjoy by investing in a mutual fund company as compared to other investment options. There were many candidates who were very busy and instead of being there to the offices for a couple of times they were either not available or busy in meetings and all. These candidates might be good prospects for the company.

THREATS
Mutual fund is a field where the number of competitors is increasing day by day. The companys biggest threat is the cutthroat competition that the company faces. There are more myths than facts in customer minds regarding the concept of mutual funds.

OFFICES
Corporate Office 3rd Floor, Contractor Building, 41, R Kamani Marg, Ballard Estate, Mumbai 400 038 Tel: 2269 7989,22612001,22612003 Fax: 2267 9677 Jaipur 305, 3rd Floor Ganpati Plaza, M.I.Road, Jaipur 302001 Phone : 0141-2388724/2362257/5106161 New Delhi 206 Ashoka Estate, 2nd Floor, 24 Barakhamba Road New Delhi 110 001 Phone: 011-23752515/16/17/18, 23358516, 23310280, 23311148, 23311476,23358517 Mumbai (Branch Office) 101, Ground Floor,Deccan House Behind Copper Chimney,Off Turner Road Bandra (W) Mumbai - 400 050 Phone: 022 - 26404065,26404066

CONCLUSION
The project provides an overview about the popularity and awareness of mutual funds (Prudential ICICI Mutual Funds) among the professionals in Jaipur region. The investors are of a mixed breed, some of them are risk averse and some are risk taking. The investors who are risk taking have adequate knowledge of mutual funds, but those who are risk averse either lacks knowledge or they have some misconception regarding the concept of mutual funds. The main problem was that there were more myths and fewer facts known to the investors. Like some of them were only aware of the Equity oriented schemes offered by the companies and not about the Debt oriented schemes; so the perception that was in their mind was that mutual fund investment is a very risky game as it involves stock market. To some extent it is true that investment in mutual fund involve risk but not in all types of schemes that todays companies offer. The schemes that mutual fund companies are offering are so diversified that it suits the investment criteria of every investor. Let the investor be risk averse or risk taking or a combination of both there are schemes for everyone. There are a potentially large number of prospects but they lacks knowledge regarding the benefits of investing in a mutual fund. Every type of investment in this world involves risk, some has high risk and some has low risk. Mutual Fund investments have both types of plans (schemes); higher the risk-higher is the returns and lower the risk-comparatively lower is the return. There are advantages and disadvantages in all kinds of investments. The project also through some light on How to handle the clients who have suffered in past by investing in a mutual fund company? In most of the cases the investors suffer because of their impatience. Instead of the investment horizon told by the experts of the company, they withdrew their money before completion of the time period and incur losses. In the end let me finish by saying that during the project there were many days when I converted many prospects but there were times when it was difficult to convert even a single prospect. The experience I gained from the project will help me to understand the market in a better manner in future.

BIBLIOGRAPHY
WEBSITES
Prudential ICICI Asset Management Company: www.pruicici.com Association of Mutual Funds in India: www.amfiindia.com Securities and Exchange Board of India (SEBI): www.sebi.gov.in Franklin Templeton Investments: www.franklintempleton.com HDFC Mutual Funds: www.hdfcfund.com Unit Trust of India (UTI) Mutual Funds: www.utimf.com Kotak Mahindra Mutual Funds: www.kotakmutual.com
Search Engine: www.google.com

PRINTED LITERATURE
Money Outlook (Different Editions) MARKETING MANAGEMENT Philip Kotler Prentice-Hall India