ICICI Prudential Asset Management Company enjoys the strong

parentage of Prudential plc, one of UK's largest players in the insurance

& fund management sectors and ICICI Bank, a well-known and trusted
name in financial services in India.

ICICI Prudential Asset Management Company, in a span of just over eight

years, has forged a position of pre-eminence in the Indian Mutual
Fund industry as one of the largest asset management companies in
the country with assets under management of Rs. 53,124.45 Crore (as of
July 31, 2008).
 The Company manages a comprehensive range of
schemes to meet the varying investment needs of its
investors spread across 68 cities in the country.

At Inception May 1998 As on August,2008

Asset under Rs. 160 crores Rs. 53124.45 crores

Management
Number of funds 2 40
managed
 Definition of Mutual Funds
 
Mutual Funds Definition refers to the meaning of Mutual
Fund, which is a fund, managed by an investment company
with the financial objective of generating high Rate of Returns.
These asset management or investment management
companies collects money from the investors and invests those
money in different Stocks, Bonds and other financial securities
in a diversified manner. Before investing they carry out
thorough research and detailed analysis on the market
conditions and market trends of stock and bond prices. These
things help the fund mangers to speculate properly in the right
direction.
  The company has 19 bank Assurance partners,
having tie-ups with ICICI Bank, Bank of India,
Federal Bank, South Indian Bank, Lord Krishna
Bank, all regional rural banks sponsored by Bank
of India, as well as some co-operative banks; as
well as over 200 corporate agents and brokers. It
has also tied up with NGOs, MFIs and corporates
for the distribution of rural policies.
 BOARD OF DIRECTORS

The ICICI Prudential AMC Limited Board comprises

reputed people from the finance industry both from India
and abroad.
 
Mr. K. V. Kamath - Chairman
Mr. Barry Stowe
Dr. (Mrs.) Swati A. Piramal
Ms. Kalpana Morporia
Mr. Nimesh Shah
Mr. Vikram B. Trivedi
Mr. Vijay Thacker
Mr. Nilesh Shah
 Topic of my summer training project is ‘ Creative
Awareness About Mutual Funds Products ’
 

At a time when banks are finding it difficult to rely solely on

core banking business, as the interest rates are high, they are vying
with one another to adopt innovative ways to woo customers.
 
While ICICI Prudential AMC is concentrating more on non-
interest income and is aiming to make its foray in the mutual fund
and insurance business, banks like Bank of Baroda and Union Bank
of India are paying more attention to SMEs and agriculture
businesses.
 
 There are wide variety of Mutual Fund schemes that
cater to investor needs, whatever the age, financial
position, risk tolerance and return expectations. The
mutual fund schemes can be classified according to both
their investment objective (like income, growth, tax
saving) as well as the number of units (if these are
unlimited then the fund is an open-ended one while if
there are limited units then the fund is close-ended).
 These funds are sold at the NAV based prices,
generally calculated on every business day.
These schemes have unlimited capitalization,
open-ended schemes do not have a fixed
maturity - i.e. there is no cap on the amount you
can buy from the fund and the unit capital can
keep growing. These funds are not generally
listed on any exchange.
ICICI Prudential Tax Plan
ICICI Prudential SHORT TERM PLAN
 ICICI Prudential GILT FUND (Treasury Plan)
ICICI Prudential GILT FUND (Investment Plan)
ICICI Prudential INCOME PLAN
ICICI Prudential FLEXIBLE INCOME PLAN
ICICI Prudential MONTHLY INCOME PLAN
ICICI Prudential INCOME MULTIPLIER FUND – Regular Plan
ICICI Prudential BALANCED FUND
ICICI Prudential GROWTH PLAN
ICICI Prudential TAX PLAN
ICICI Prudential TECHNOLOGY FUND
ICICI Prudential DYNAMIC PLAN
ICICI Prudential POWER
ICICI Prudential EMERGING S.T.A.R. (Stocks Targeted At Returns) FUND
ICICI Prudential DISCOVERY FUND
ICICI Prudential SERVICES INDUSTRIES FUND
ICICI Prudential INDEX FUND
ICICI Prudential INFRASTRUCTURE FUND
ICICI Prudential CHILD CARE PLAN
 Schemes that have a stipulated maturity period,
limited capitalization and the units are listed on the stock
exchange are called close-ended schemes.

These schemes have historically seen a lot of

subscription. This popularity is estimated to be on account
of firstly, public sector MFs having floated a lot of close-
ended income schemes with guaranteed returns and
secondly easy liquidity on account of listing on the stock
exchanges.

The Closed-ended fund managed by ICICI Prudential

Mutual Fund is ICICI Premier.
Objectives

Mutual funds have specific investment objectives

such as growth of capital, safety of principal, current
income or tax-exempt income. In general mutual funds
fall into three general categories:

 Equity Funds invest in shares or equity of companies.

 Fixed-Income funds invest in government or corporate
securities that offer fixed rates of return.
 Balanced Funds invest in a combination of both stocks
and bonds.
Growth Funds :
These funds seek to provide growth of capital with secondary emphasis on
dividend. They invest in shares with a potential for growth and capital appreciation.
Because they invest in well-established companies where the company itself and the
industry in which it operates are thought to have good long-term growth potential,
growth funds provide low current income. Growth funds generally incur higher
risks than income funds in an effort to secure more pronounced growth.

Growth and Income Funds :

Growth and income funds seek long-term growth of capital as well as current
income. The investment strategies used to reach these goals vary among funds.
Some invest in a dual portfolio consisting of growth stocks and income stocks, or a
combination of growth stocks, stocks paying high dividends, preferred stocks,
convertible securities or fixed-income securities such as corporate bonds and money
market instruments. Others may invest in growth stocks and earn current income by
selling covered call options on their portfolio stocks.
 The goal of fixed income funds is to provide current income consistent with the
preservation of capital. These funds invest in corporate bonds or government-backed
mortgage securities that have a fixed rate of return. Within the fixed-income category,
funds vary greatly in their stability of principal and in their dividend yields. High-
yield funds, which seek to maximize yield by investing in lower-rated bonds of longer
maturities, entail less stability of principal than fixed-income funds that invest in
higher-rated but lower-yielding securities.

Balanced Fund :
The Balanced fund aims to provide both growth and income. These funds invest in
both shares and fixed income securities in the proportion indicated in their offer
documents. Ideal for investors who are looking for a combination of income and
moderate growth.

Money Market Funds/Liquid Funds :

For the cautious investor, these funds provide a very high stability of principal
while seeking a moderate to high current income. They invest in highly liquid,
virtually risk-free, short-term debt securities of agencies of the Indian Government,
banks and corporations and Treasury Bills.
 Professional investment
management
 Diversification
 Low Cost
 Convenience and Flexibility
 Liquidity
 Transparency
 Variety
 Choice of Investment
 Professional Financial Experts
 Investor Psychology Risk
 Choice Risks
 Cost Risks
 Prediction Risks
 Jargon Risks
 Competition Risks
 Risk of Redemption Restrictions
 Management Change
 Judgement Risks
 Forward Pricing Risks
 Diversification

When you invest in one mutual fund, you instantly spread your risk
over a number of different companies. You can also diversify over
several different kinds of securities by investing in different mutual
funds, further reducing your potential risk. Diversification is a basic risk
management tool that you will want to use throughout your lifetime as
you rebalance your portfolio to meet your changing needs and goals.

 Systematic Investment Plan (SIP)

The Unit holders of the Scheme can benefit by investing specific

Rupee amounts periodically, for a continuous period. Mutual fund SIP
allows the investors to invest a fixed amount of Rupees every month or
quarter for purchasing additional units of the Scheme at NAV based
prices.
 The Term Net Asset Value (NAV) is used by investment
companies to measure net assets. It is calculated by subtracting
liabilities from the value of a fund's securities and other items of value
and dividing this by the number of outstanding shares. Net asset
value is popularly used in newspaper mutual fund tables to
designate the price per share for the fund.

Calculating NAV’s

Calculating Mutual Funds net asset values is easy. Simply

take the current market value of the fund's net assets (securities
held by the fund minus any liabilities) and divide by the number
of shares outstanding. So if a fund had net assets of Rs.50 lakh and
there are one lakh shares of the fund, then the price per share (or
NAV) is Rs.50.00.
 The company should provide more range of services to its customer especially to the
small time who want to invest their earnings by the end of the day.

 The company should emphasize on advertising its schemes and services.

 The company should pay more stress on rural area development.

 The company should expand its business by opening more branches.

 Introduce some good insurance plans for females & for Rural areas people.

 Increase area of working by spreading awareness among people about insurance.

 If the company starts to concentrate on village segment market. Then company can get
great business.