CONTENT

CHAPTER1:
● INTRODUCTION
⮚ Introduction of Report
⮚ Need of study
⮚ Objectives of Report

CHAPTER 2:
● Body of Project Report
⮚ Company Profile
⮚ Theoretical framework of report

CHAPTER 3:
● SUMMARY
⮚ Summary of Report
⮚ Findings
⮚ Suggestions
⮚ Conclusion
CHAPTER 1
● INTRODUCTION
⮚ Introduction of report
⮚ Need of study
⮚ Objectives of Report
 INTRODUCTION

INTRODUCTION TO REPORT

This report is mainly based on the risk analysis for various mutuals funds based on popularity

and their return. By using different indicators like alfa and beata we will anglaise the mutule

funs. And also try to see the level of risk involved in a particular mutule funs.

A mutual fund is a professionally managed investment fund that pools money from many

investors to purchase securities. The term is typically used in the United States, Canada, and

India, while similar structures across the globe include the SICAV in Europe

('investment company with variable capital') and open-ended investment company (OEIC) in

the UK.

Mutual funds are often classified by their principal investments: money market funds, bond

or fixed income funds, stock or equity funds, or hybrid funds. Funds may also be categorized

as index funds, which are passively managed funds that track the performance of an index,

such as a stock market index or bond market index, or actively managed funds, which

seek to outperform stock market indices but generally charge higher fees. Primary structures

of mutual funds are open-end funds, closed-end funds, unit investment trusts.

Open-end funds are purchased from or sold to the issuer at the net asset value of each share as

of the close of the trading day in which the order was placed, as long as the order was placed

within a specified period before the close of trading. They can be traded directly with the

issuer.
Mutual funds have advantages and disadvantages compared to direct investing in individual

securities. The advantages of mutual funds include economies of scale, diversification,

liquidity, and professional management. However, these come with mutual fund fees and

expenses.

Mutual funds are regulated by governmental bodies and are required to publish information

including performance, comparison of performance to benchmarks, fees charged, and

securities held. A single mutual fund may have several share classes by which larger

investors pay lower fees.

There are mostly 4 types of funds in which mutual funds invest. They are

as follows:

A) Equity: These funds primarily invest into shares/stocks of different

companies. Equity mutual fund scheme have a minimum of 65% assets

invested in equity shares of companies. The gain and loss depend on how

shares involved in scheme performs in stock market. Only equity funds

have potential to generate significant returns over the period of years. But

remember higher the returns, higher the risk.

 B) Debt: Debt fund schemes have less than 65% assets invested in equity.

Money is collected from investors and invested in securities like Commercial

Papers, Government Securities, Gilt funds, Bonds etc. The returns are not

affected by fluctuation in stock market. It is a great option who are looking for

passive income i.e., interest and capital appreciation with minimum risk.

C) Hybrid/Balance: It is a combination of both equity and debt investment. Its

objective is to diversity the portfolio with minimum risk involved. It has potential

to generate better returns than debt funds. The fund manager re-balance the

fund accordingly with the market conditions.

D) Money Market Funds: It collect money from investor and invest it in short-

term debt instruments, cash and equivalents with high rated quality. It is

considered as safe or investment with low risk. These funds offer a

predictable risk-free return. Investments include Certificate of Deposits,

Commercial Papers, Treasury Bills, Re-Purchase Agreements etc.

NEED OF STUDY

The growth of any economy very much depends on the extent of promoting

investments in the corporate sector. The savings of the investors or the public have to

be mobilized for a productive use and this is possible only by certain specialized

agencies, who not only have a thorough knowledge or investment but also have the

technique of attracting the investment. It is in this manner that the mutual funds

came into existence to provide an investment opportunity to such people who do not

want to take any risks. So, mutual funds, after mobilizing the deposits, invest them in

various securities in such a manner that the investors are able to get a higher return

without any risk. In addition to this, they also enjoy tax benefits for their income.

In a society, we have different type of investors who would like to earn a higher

return for their meager savings. Opportunities must be provided to such types of

investors, consisting of pensioners, middle income group people, etc. They cannot

afford to directly invest in companies’ shares for lack of knowledge and are quite

averse to risks. Keeping such factors in mind, investment companies in India like the

Unit Trust of India promoted mutual funds by which they attract the savings of lower

and middle income group people and give them the benefit of corporate profits by

distributing attractive dividends at the end of the year.

Mutual funds also cater to different types of customers who are interested in
 1. Fixed income or

2. a higher return for investment or

3. who are ‘growth oriented’.

As mutual funds fulfill all these requirements, they have not only come to stay but

are growing too. The government has also felt the need for regulating their activities

through proper legislation like SEBI (Securities and Exchange Board of India) and

AMFI (The Association of Mutual Funds in India)

The Securities and Exchange Board of India (SEBI) is the most important regulator

of securities markets in India. SEBI is the counterpart of the Securities and Exchange

Commission (SEC) in the U.S.

The Association of Mutual Funds in India (AMFI) is dedicated to developing the

Indian Mutual Fund Industry on professional, healthy and ethical lines and to

enhance and maintain standards in all areas with a view to protecting and promoting

the interests of mutual funds and their unit holders.

 OBJECTIVE OF THE REPORT

The main objective of this report is to analyze the risk involved in different types of

mutual funds which are provided by ICICI Mutual funds and to ascertain which

mutual funds is less risker and best suited for average middle class people to get the

most out of the invested money in a particular time-period.

Other than this the various other objectives that are achieved by mutual funds are as

follows

1) Capital Protection – Mutual fund collects money from investors & invest it into

different securities like Government Bonds, Treasury Bills, Blue-Chip

companies’

stocks. Also, SEBI is there to protect the investors. Therefore, it involves very low

risk and safety of capital.

2) Steady Income – Mutual funds invest in Corporate Bonds, Government bonds,

Certificate of Deposits, Dividend paying stocks. As a result, investors get steady

income in the form of interest and dividend. However, it totally depends upon

companies’ performance (Dividend) and interest rates (Interest).

3) Growth – Most mutual fund schemes invest in equity shares and sometimes

preference shares. It carries a higher risk but provide better returns than income

funds. This is the best option for hedging against inflation. Investments in mutual

funds grows exponentially over a period of years.

4) Liquidity – Previously we have discussed that SIP is like Recurring Deposit (RD) in

bank. However, there is a major difference between SIP and RD in case of liquidity.

In RD, fixed amount needs to invest for specific period. In SIP, you can redeem

funds on very next day.

CHAPTER 2
● Body of Project Report
⮚ Company Profile
⮚Theoretical framework of
report
COMPANY PROFILE

The company was founded in 1993 as a joint venture between Indian ICICI Bank and UK

insurance company Prudential plc. By 1998, it had two locations and six employees.

ICICI Prudential Mutual Fund's corporate headquarters are in the Bandra Kurla Complex in

Mumbai. As of 2016 it had grown to over a thousand employees across 120 locations with more

than 1.9 million investors.

As of Sep 2018, ICICI Pru MF, with an average assets under managements of Rs. 468,192.92

Crores, has been a major contributor to shaping India's CRISIL rating system.

Goal planning

The first step to become a successful goal planner is to clearly define your goals. Is it a long-

term goal like retirement, or a short-term one like planning a vacation? Once you are clear about

your objectives, you must evaluate the risk-reward characteristics of different asset classes.

Every investment scheme has its own set of risks and rewards. Moreover, the risk factor and

the time horizon of your investment (investment tenure) are closely linked. If you're looking at a

longer tenure, you might be in a position to take slightly more risk as the market generally trends

upwards in the long run. However, if your goal is nearer, a more conservative approach could

serve you better.

Mutual funds for various goals

Equity mutual funds: Ideal for investors with a relatively higher risk appetite, equity

funds primarily invest in stocks. Over the long run, they have the potential to offer reasonable

returns. They might be suitable for long-term goals like retirement or your child's higher

education.

Debt mutual funds: These are relatively less risky compared to equity funds as they

invest in fixed-income securities. If you're seeking relatively stable returns and have a medium-

term goal, debt funds can be a reasonable choice.

Hybrid mutual funds: As the name suggests, these funds combine both equity and debt

investments. They aim to balance risk and reward, making them suitable for a wide range of

investment goals.

THEORETICAL FRAMEWORK OF REPORT

Goal planning with mutual funds

Mutual fund investments can enable investors to align their financial actions with their

aspirations. When discussing goal planning with mutual funds, it is useful to highlight the many

advantages that mutual funds offer.

Diversification: One of the primary benefits of mutual funds is the in-built

diversification they offer. Instead of investing in a single stock or bond, mutual funds pool money

from numerous investors to create a diversified portfolio. Diversification ensures that the risk is

mitigated, balancing out the overall returns.

Professional management: Mutual funds are managed by experts who have a deep
understanding of the market. These fund managers constantly monitor market movements,

economic trends, and other vital factors to make informed portfolio decisions.

Systematic investments: Mutual funds allow for systematic investments through SIPs

(Systematic Investment Plans). This means that you can invest a fixed sum at regular intervals,

irrespective of market conditions. SIPs leverage the benefits of compounding and rupee-cost

averaging, thereby reducing the impact of market volatility over time.

Flexibility and liquidity: Mutual funds cater to various investment horizons, from short-

term to long-term. Depending on your goal’s time frame, you can choose a fund that matches your

requirements. Some mutual funds also offer high liquidity, enabling you to redeem your

investment relatively quickly if needed.

 I have taken top 10 best performing/popular schemes that are provided by ICICI
Mutual funds over the past 5 years to comparatively analyze different schemes.
They are: -

Best ICICI Prudential Debt Mutual Funds

ICICI Prudential Mutual Funds began its operations in 1993 in a joint venture between the
ICICI Bank and Prudential PLC from the UK. Currently, ICICI Prudential is one of the top 5
AMCs of this country, with a portfolio that amounts to Rs.405405.92 crore as of March 2021.

Currently, this AMC offers over 40 mutual fund schemes of various types, including the best
ICICI Prudential debt mutual funds.

Top ICICI Prudential debt mutual funds focus on money market and debt instruments. These
fund managers actively invest in bonds and securities by the government, corporate entities, and
financial institutions. This is a more risk-averse investment option than stocks, equity funds, and
equity-based hybrid funds. The classification of debt funds is premised on the underlying
securities’ maturity periods or issuer. Hence, it includes overnight funds, liquid funds, dynamic
bond funds, gilt funds, floater funds, etc.

Debt mutual funds have different sub-types, offering a variety of returns. For example, there are
short, ultra-short, medium, and long-term funds, with the constituent debt instruments having
varying maturity tenures. Also, corporate, gilt, banking and PSU funds involve investments in
bonds by different kinds of issuers. For instance, gilt funds invest in government-issued
securities.

The advantages of debt funds are their low-cost structure, comparatively high liquidity, and
stable returns. These are not as volatile and risk-prone compared to equity mutual funds. The
downside to debt funds is that they usually offer less significant returns than their equity
counterparts.

Nevertheless, the exact scale of these returns and shortcomings vary, depending on the type of
debt fund.

The best ICICI Prudential debt mutual funds 2021 feature more than 15 schemes, comprising
various short and long-term options.

Now let us jump and check about these top 10 mutual fund schemes.

ICICI Prudential Bluechip Fund Direct Growth

Fund Performance: The ICICI Prudential Bluechip Fund has given 22.52% annualized returns
in the past three years and 18.96% in the last 5 years. The ICICI Prudential Bluechip Fund
comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Bluechip Fund via lump sum is ₹100 and via SIP is ₹100.
 ₹
1
Min Investment Amt
0
0

₹
5
3,
5
AUM
0
5
C
r

4
3.
1Y Returns
0
%

ICICI Prudential S&P BSE Sensex Index Fund Direct Growth

Fund Performance: The ICICI Prudential S&P BSE Sensex Index Fund has given 15.81%
annualized returns in the past three years and 15.29% in the last 5 years. The ICICI Prudential
S&P BSE Sensex Index Fund comes under the Other category of ICICI Prudential Mutual
Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
S&P BSE Sensex Index Fund via lump sum is ₹100 and via SIP is ₹100.

₹
1
Min Investment Amt
0
0

₹
1
,
4
AUM
4
6
C
r

2
6
1Y Returns .
8
%
ICICI Prudential Equity & Debt Fund Direct Growth

Fund Performance: The ICICI Prudential Equity & Debt Fund has given 26.44% annualized
returns in the past three years and 21.22% in the last 5 years. The ICICI Prudential Equity &
Debt Fund comes under the Hybrid category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Equity & Debt Fund via lump sum is ₹5,000 and via SIP is ₹100.

₹
5,
Min Investment Amt 0
0
0

AUM ₹
3
3,
5
0
 2
C
r

4
2.
1Y Returns
4
%

ICICI Prudential Nifty Next 50 Index Direct Growth

Fund Performance: The ICICI Prudential Nifty Next 50 Index Fund has given 21.87%
annualized returns in the past three years and 18.01% in the last 5 years. The ICICI Prudential
Nifty Next 50 Index Fund comes under the Other category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Nifty Next 50 Index Fund via lump sum is ₹100 and via SIP is ₹100.
 ₹
1
Min Investment Amt
0
0

₹
4
,
4
AUM
4
3
C
r

1Y Returns

6
5
.
8
%

ICICI Prudential Balanced Advantage Direct Growth

Fund Performance: The ICICI Prudential Balanced Advantage Fund has given 14.35%
annualized returns in the past three years and 13.69% in the last 5 years. The ICICI Prudential
Balanced Advantage Fund comes under the Hybrid category of ICICI Prudential Mutual
Funds.
Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Balanced Advantage Fund via lump sum is ₹500 and via SIP is ₹100.

₹
5
Min Investment Amt
0
0

₹
5
6,
1
AUM
7
4
C
r

2
3.
1Y Returns
8
%

ICICI Prudential ELSS Tax Saver Direct Plan Growth

Fund Performance: The ICICI Prudential ELSS Tax Saver Fund has given 19.53% annualized
returns in the past three years and 17.29% in the last 5 years. The ICICI Prudential ELSS Tax
Saver Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
ELSS Tax Saver Fund via lump sum is ₹500 and via SIP is ₹500.

₹
5
Min Investment Amt
0
0

₹
1
3,
0
AUM
8
4
C
r

4
0.
1Y Returns
1
%
ICICI Prudential Banking and Financial Services Direct Plan Growth

Fund Performance: The ICICI Prudential Banking and Financial Services Fund has given
17.06% annualized returns in the past three years and 12.07% in the last 5 years. The ICICI
Prudential Banking and Financial Services Fund comes under the Equity category of ICICI
Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Banking and Financial Services Fund via lump sum is ₹5,000 and via SIP is ₹100.

₹
5
,
Min Investment Amt
0
0
0

AUM ₹
7
,
 4
8
9
C
r

2
8
1Y Returns .
5
%

ICICI Prudential Liquid Fund Direct Plan Growth

Fund Performance: The ICICI Prudential Liquid Fund has given 5.52% annualized returns in
the past three years and 5.28% in the last 5 years. The ICICI Prudential Liquid Fund comes
under the Debt category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Liquid Fund via lump sum is ₹99 and via SIP is ₹99.
 ₹
Min Investment Amt 9
9

₹
3
5,
4
AUM
2
8
C
r

7.
1Y Returns 3
%

ICICI Prudential Technology Direct Plan Growth

 Fund Performance: The ICICI Prudential Technology Fund has given 15.88% annualized
returns in the past three years and 24.87% in the last 5 years. The ICICI Prudential Technology
Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
Technology Fund via lump sum is ₹5,000 and via SIP is ₹100.

Min Investment Amt ₹5,000

AUM ₹11,977Cr

1Y Returns 31.4%
ICICI Prudential US Bluechip Equity Direct Plan Growth

Fund Performance: The ICICI Prudential US Bluechip Equity Fund has given 11.05%
annualized returns in the past three years and 17.33% in the last 5 years. The ICICI Prudential
US Bluechip Equity Fund comes under the Equity category of ICICI Prudential Mutual Funds.

Minimum Investment Amount: The minimum amount required to invest in ICICI Prudential
US Bluechip Equity Fund via lump sum is ₹5,000 and via SIP is ₹100.
CHAPTER 3
● SUMMARY
⮚ Summary of Report
⮚ Findings
⮚ Suggestions
⮚ Conclusion
 Conclusion

A mutual fund is the best investment for a person who cannot monitor the
market every day as we have analyzed the risk of mutuals funds the mutual
funds is subject to market risk you cannot predict the market but you any
minimize your risk by investing in the best performing mutual fund with your
own research.

What ever you do you cannot eliminate the risk and return of your investment
but you can only minimize by staying for the long term e.g., 10 to 30 years than
only you can get the benefit of compounding of your investment.

So, I would like to conclude by saying the risk of your investment can be
minimized by ascertaining the value of beta and alfa, if the value is greater than
1 then it is more volatile with change in market. So, a lower value of beta below
1 would be a better investment and also by staying for the long term around 10
to 30 years to get the best returns of your investment and also it will help you in
minimizing your risk.
 BIBLIOGRAPHER
1. www.moneycontrol.com
2. www.ICICI mf.com
3. www.wekepead.com
4. Www.wikipedia.com