Summer Internship Project Report

ON
Factor that influence investment in mutual funds ICICI

Submitted for the partial fulfilment towards the award of the

degree in Master of Business Administration of Dr. A.P.J
Abdul Kalam Technical University, Lucknow

Submitted by:
Vedant Khandelwal

ROLL NO- 2201330700137

Batch: MBA 2022-24

Under the supervision of

SHRUTI SHARMA

School of Management

Noida Institute of Engineering and Technology (NIET)

(AN AUTONOMOUS INSTITUTE)
Affiliated to DR. A.P.J. Abdul Kalam Technical University, U.P,
Lucknow , Plot No .19 Knowledge Park II, Greater Noida, Gautam
Buddha Nagar, (UP), India 201306
 DECLARATION

I VEDANT KHANDELWAL hereby declare that project entitled “Factor that influence investment

in mutual funds icici” is a record of original work done by me. The findings and conclusions of this

project report are based on my study and experience, and are conducted under the guidance of SHRUTI

SHARMA. I also declare that this project is result of my effort and the report is submitted in partial

fulfillment of the requirements of MBA program of Noida Institute of Engineering and Technology,

Greater Noida and it is not being submitted to any other institution for award of a degree or any personal

favor. All details stated above and analysis provided in the report are and hold the best of my knowledge

and belief.

Vedant khandelwal

(MBA-3rd SEM.)

(Signature of the Student)

 ACKNOWLEDGEMENT

I take this opportunity to thank DEEPAK SINGH for giving me the opportunity to work for this project

and I would like to express my sincere thanks to SHRUTI SHARMA who helped, inspired and

mentored me and without their help this project report would not have taken its current shape. Under

their brilliant untiring guidance, I could complete the project being undertaken on the“ Factor that

influence investment in mutual funds ICICI ” successfully in time. Their meticulous attention and

invaluable suggestions have helped me in simplifying the problem involved in the work. I would also

like to thank the overwhelming support of all the people who gave me an opportunity to learn and gain

knowledge about the various aspects of the industry.

I once again express my heartfelt in debtness to all-aforesaid. Any omission or error in acknowledgment

is inadvertent. For such oversights and lapses, I tender unconditional apology.

Rajat Bhardwaj

Roll no - 2201330700137

MBA

2022-2024
PREFACE
 PREFACE

In today's dynamic financial landscape, navigating the world of mutual funds can be akin to traversing a
labyrinth. While the allure of potential returns and diversified portfolios beckons, a myriad of factors lie
in wait, shaping our investment decisions at every turn. This preface delves into the very heart of this
complex dance, exploring the forces that sway investors towards or away from the embrace of mutual
funds.
Firstly, we must acknowledge the economic pulse of the nation. The rhythmic thrum of inflation, interest
rates, and GDP growth sets the stage upon which investor confidence pirouettes. A robust economy, with
its promise of stable growth, often emboldens investors to step onto the mutual fund dance floor.
Conversely, economic uncertainties, like recessions or market downturns, can cast a shadow of doubt,
prompting some to retreat to the sidelines.
Secondly, the personal financial tango plays a crucial role. An individual's risk appetite, investment
horizon, and financial goals act as the choreographer, guiding their steps towards specific types of
mutual funds. A young, risk-tolerant investor seeking long-term wealth creation may be drawn to equity-
heavy funds, while a retiree prioritizing income might favor debt-oriented options.
Thirdly, the melodic sway of market sentiment cannot be ignored. The whispers of analyst predictions,
media headlines, and peer recommendations can influence investor confidence, acting like a siren song
that either attracts or repels them towards specific funds. While rationality should be the guiding
principle, market sentiment often adds an unpredictable layer to the investment waltz.
Finally, the ever-evolving choreography of fund choices itself must be considered. The sheer variety of
mutual funds available, each with its own investment strategy, expense ratio, and performance history,
can overwhelm even the most seasoned investor. Understanding the nuances of fund management styles,
fees, and risk profiles becomes paramount in navigating this intricate landscape.
As we embark on this exploration, remember, the world of mutual fund investments is not a solitary
performance. It is a dynamic interplay between personal goals, economic realities, market whispers, and
the ever-changing rhythm of fund offerings. By understanding these factors, we can approach this
financial dance floor with informed steps and a measured heart, ready to waltz towards our investment
goals.
So, dear reader, shall we begin? Let the curtain rise on the fascinating world of factors influencing
mutual fund investments, and together, unravel the intricacies that guide our financial choices.
 CONTENTS
S NO. Topic Page No.

1 Introduction 7 – 11

2 Objective of Study 12 – 22

3 Company Profile 23 – 24

4 Experience as Intern at 25 – 27

5 Literature Review 28 – 30

6 Types of product 24 – 36

7 Research Methodology 37 – 54

8 Importance of Mutal Funda 55 – 56

9 Data Analysis 43 – 50

10 Findings 49 – 53

11 Conclusion 54 – 56

12 Questionnaire 57 – 61

13 Bibliography 62 – 64
INTRODUCTION
 INTRODUCTION

In the intricate landscape of Indian finance, choosing the right mutual fund can feel like navigating a
labyrinth. Yet, for many investors, ICICI Mutual Funds stand out as a beacon of opportunity. But, the
decision to invest in any mutual fund, particularly those offered by ICICI, demands a nuanced
understanding of the factors that influence its success and, ultimately, your financial journey.

This exploration takes us beyond the mere numbers and delves into the mosaic of influences that shape
the attractiveness of ICICI Mutual Funds. We'll examine the interplay of market dynamics, economic
considerations, and the very DNA of ICICI itself. We'll dissect the impact of investment objectives, risk
tolerance, and the ever-evolving regulatory environment. This journey is not just about understanding the
"what" of investing in ICICI Mutual Funds, but the intricate "why" behind it.

Prepare to shed the skin of a passive observer and transform into an active participant in your financial
future. We'll equip you with the knowledge to decipher the whispers of the market, the signals of
economic shifts, and the unique strengths and challenges that ICICI brings to the table. Whether you're a
seasoned investor or a hesitant newcomer, this exploration will paint a vibrant picture of the factors that
can guide your decision, empowering you to choose the ICICI Mutual Fund that resonates with your
financial aspirations.

So, fasten your seatbelts, as we embark on a captivating journey into the heart of ICICI Mutual Funds,
unearthing the hidden jewels that influence their worth and pave the way for your financial prosperity.

This introduction aims to capture the reader's curiosity and set the stage for a deeper exploration of the
factors influencing investment in ICICI Mutual Funds. It uses evocative language, metaphorical imagery,
and a clear progression of ideas to draw the reader in and prepare them for the information to come.
OBJECTIVE OF STUDY
 OBJECTIVE OF STUDY

 Identify and explain the major factors that influence investment decisions in ICICI mutual
funds. These factors can be categorized into three main areas: investor-related factors, fund-
related factors, and market-related factors.
 Provide investors with the necessary information and tools to assess their own circumstances
and compare different ICICI mutual funds. This might involve discussing risk tolerance
questionnaires, analyzing past performance data, and comparing fees and charges.
 Offer insights specific to ICICI mutual funds. This could include highlighting the strengths and
weaknesses of ICICI's fund offerings, discussing the firm's track record and reputation, and
comparing its performance to other fund houses in the Indian market.
 Promote responsible and informed investing. Encourage potential investors to do their own
research, seek professional advice if needed, and prioritize long-term goals over short-term
gains.
COMPANY PROFILE
 COMPANY PROFILE

Introduction:
ICICI Bank Ltd. stands tall as a titan of the Indian financial landscape, having evolved from a modest
industrial finance institution to a diversified banking behemoth. This comprehensive profile delves into
ICICI's rich history, its multifaceted operations, its impact on the Indian economy, and its ambitious
vision for the future.

A Historical Voyage:
ICICI's story begins in 1955, founded by visionary industrial leaders to nurture India's burgeoning
industrial sector. Over the decades, it transformed, embracing commercial banking in 1994 and
becoming a full-fledged banking powerhouse in 2007. Through strategic acquisitions and organic
growth, ICICI has woven a vast network across India and international borders, solidifying its position as
a global financial player.

Unveiling the Multifaceted ICICI:

ICICI's reach extends far beyond traditional banking. Its diverse portfolio encompasses:
 Retail Banking: Serving millions of individuals through a broad spectrum of products, from
savings accounts and loans to wealth management and insurance.
 Corporate & Wholesale Banking: Partnering with businesses of all sizes, offering customized
solutions for growth and risk management.
 Investment Banking: Facilitating mergers, acquisitions, and capital raising for corporates and
institutional clients.
 Technology & Innovation: Pioneering digital banking initiatives, including mobile wallets, robo-
advisory platforms, and blockchain applications.

Footprints Across the Globe:

ICICI's global presence extends to 17 countries, with subsidiaries in the USA, UK, Canada, UAE, and
Singapore. This international network facilitates cross-border trade, foreign investments, and global
financial transactions

Impact on the Indian Economy:

ICICI's contributions to India's economic growth are undeniable. It plays a pivotal role in:
 Financial Inclusion: Bringing banking services to unbanked and underbanked
communities, promoting financial literacy and economic empowerment.
 Infrastructure Development: Providing financing for critical infrastructure projects, propelling
India's infrastructure growth story.
 Entrepreneurship & SME Support: Nurturing small and medium businesses through
loans, mentorship programs, and business development initiatives.
Embracing the Future:
ICICI's vision for the future is centered on innovation, sustainability, and inclusivity. Its key focus areas
include:
 Digital Transformation: Leveraging cutting-edge technology to personalize banking
experiences, enhance efficiency, and reach new customer segments.
 Environmental & Social Responsibility: Integrating sustainability principles into its
operations, supporting green initiatives, and promoting responsible banking practices.
 Financial Inclusion 2.0: Expanding its reach to underserved communities, developing tailored
financial products, and bridging the financial gap.
 HISTORY OF COMPANY

ICICI's Saga: From Industrial Catalyst to Banking Colossus

ICICI Bank's story is woven into the very fabric of India's economic journey. It's a tale of
transformation, from a humble beginning as an industrial financier to a sprawling financial behemoth
shaping the present and future. Let's dive into this captivating tapestry:

Inception (1955): Born amidst the fervor of industrial independence, ICICI, then the Industrial Credit
and Investment Corporation of India, emerged in 1955. Visionary industrial leaders recognized the
critical need for financing India's budding industrial sector. ICICI became the torchbearer, extending
loans and nurturing nascent industries, laying the foundation for a robust, self-reliant India.

Transformation & Growth (1994-2007): The winds of liberalization swept across India in the early
1990s, and ICICI embraced the change. In 1994, it ventured into commercial banking, opening its
doors to individuals and broadening its scope. This bold move proved pivotal, setting the stage for
phenomenal growth. By 2007, ICICI had undergone a metamorphosis, shedding its 'Investment
Corporation' skin and becoming a full-fledged bank, christened ICICI Bank Ltd.

Mergers & Milestones (2002-2010): ICICI's growth story wouldn't be complete without mentioning
its strategic acquisitions. In 2002, it merged with ICICI Securities and ICICI Investment Banking,
consolidating its hold on the financial services landscape. The landmark merger with Bank of
Rajasthan in 2010 further propelled ICICI to new heights, expanding its geographical reach and
customer base.

Global Ambitions (2000s-Present): As India took its place on the global stage, ICICI followed suit.
The bank established a significant international presence, setting up subsidiaries in 17 countries
across the globe. From the bustling streets of New York to the vibrant cityscapes of Dubai, ICICI
cemented its position as a truly international banking leader.

Digital Pioneer (2010s-Present): Recognizing the transformative power of technology, ICICI has
been at the forefront of digital banking. From pioneering mobile wallets and internet banking
platforms to introducing robo-advisory services and blockchain applications, ICICI has continuously
embraced technological advancements to provide seamless and personalized banking experiences.

Beyond Banking (Present & Future): ICICI's commitment extends beyond traditional banking. It
actively contributes to India's development through initiatives fostering financial inclusion,
supporting small businesses, and promoting sustainable practices. From empowering unbanked
communities to driving green infrastructure projects, ICICI weaves social responsibility into the very
fabric of its operations.
A Legacy of Growth & Impact:

ICICI's story is not just about numbers and milestones; it's about empowering individuals, fueling
businesses, and propelling India's economic engine. From its humble beginnings as an industrial
catalyst to its present-day position as a diversified banking giant, ICICI remains a testament to India's
resilience, ambition, and unwavering spirit. As it continues to adapt and innovate, ICICI promises to
leave an indelible mark on the future of Indian finance, etching its name not just in financial ledgers,
but in the hearts of a nation.

. Key Figures & Leaders:

 Spotlight influential figures who shaped ICICI's journey, including founders, CEOs, and
prominent board members.

 Explore their leadership styles, strategic decisions, and contributions to ICICI's success.

2. Pivotal Moments & Challenges:

 Delve into specific events that significantly impacted ICICI's trajectory, such as the liberalization
era, major mergers, or technological advancements.

 Analyze the challenges faced by ICICI during these periods and how it navigated them.

3. Impact on Industries & Sectors:

 Examine how ICICI's growth and initiatives have influenced specific industries, such as
infrastructure, manufacturing, or renewable energy.

 Highlight concrete examples of projects or partnerships that demonstrate ICICI's role in sectoral
development.

4. Social & Environmental Responsibility:

 Dedicate a section to ICICI's commitment to financial inclusion, sustainability, and responsible

banking practices.

 Showcase specific initiatives, programs, and achievements related to these areas.

5. Global Expansion & Future Aspirations:

 Elaborate on ICICI's international footprint, highlighting key markets and strategic partnerships.

 Discuss the bank's future aspirations and vision for global expansion.

6. Controversies & Challenges:

 Briefly acknowledge any controversies or challenges faced by ICICI throughout its history, if
necessary.

 Maintain a neutral and objective tone while discussing such topics.

7. Awards & Recognition:

 Showcase notable awards and recognitions received by ICICI for its performance, innovation, or
social responsibility efforts.

 Briefly explain the significance of these achievements.

8. Comparisons with Competitors:

 Provide a comparative analysis of ICICI's position in the Indian banking landscape, highlighting
its strengths and differentiators.

 Maintain a respectful and professional tone when discussing competitors.

Types of Product And Services
 PRODUCTS& SERVICES

CICI Bank: A Product and Service Powerhouse

ICICI Bank stands as a titan in the Indian financial landscape, offering a vast array of products and
services catering to diverse needs. From everyday banking to wealth management and beyond, ICICI
empowers individuals and businesses alike to achieve their financial goals. Let's delve deeper into the
treasure trove that ICICI offers:

Retail Banking:

 Savings Accounts: ICICI boasts a variety of savings accounts, each tailored to specific
requirements. Whether you prioritize high interest rates, zero balance maintenance, or convenient
digital access, ICICI has an account for you. Popular options include Insta Savings
Account, Privilege Savings Account, and Senior Citizen Savings Scheme.

ICICI Bank Savings Account

 Current Accounts: Ideal for businesses and individuals with high transaction volumes, ICICI
current accounts offer flexible features like overdraft facilities, cash management services, and
online banking integration. Popular options include Prime Salary Account and Business Current
Account.

ICICI Bank Current Account


 Loans: ICICI understands the diverse loan needs of its customers. Whether you require a personal
loan for unforeseen expenses, a home loan for your dream abode, or an education loan to invest
in your future, ICICI offers competitive interest rates, flexible repayment options, and convenient
online application processes. Popular options include Insta Personal Loan, Home Loan, and
Education Loan.

ICICI Bank Education Loan

 Credit Cards: ICICI boasts a diverse range of credit cards packed with rewards
programs, cashback offers, travel benefits, and airport lounge access. Choose from cards like
Sapphire Select, Ruby Select, and Amazon Pay Credit Card to suit your spending habits and
lifestyle preferences.

ICICI Bank Credit Card

 Investments: ICICI provides a one-stop platform for your investment needs. From mutual funds
and fixed deposits to wealth management services and portfolio management solutions, ICICI
helps you grow your wealth and achieve your financial goals. Popular options include ICICI
Prudential Mutual Fund, Wealth Management, and Portfolio Management Services.
 ICICI Bank Portfolio Management Services

Corporate & Wholesale Banking:

ICICI caters to the diverse financial needs of businesses of all sizes. From working capital solutions and
trade finance to project finance and risk management services, ICICI provides customized solutions to
support business growth and success.

Investment Banking:

ICICI's investment banking arm offers a comprehensive range of services, including mergers and
acquisitions, capital raising, and private equity solutions. It helps businesses achieve their strategic
objectives and unlock new growth opportunities.

Technology & Innovation:

ICICI is at the forefront of digital banking, constantly innovating to provide seamless and personalized
banking experiences. From mobile wallets and internet banking platforms to robo-advisory services and
blockchain applications, ICICI leverages technology to empower its customers.

International Presence:

ICICI's global footprint spans 17 countries, facilitating cross-border trade, foreign investments, and
global financial transactions. Its international presence strengthens its position as a leading financial
player on the world stage.

Social Responsibility:

ICICI recognizes its role in contributing to a sustainable and inclusive society. Through initiatives
promoting financial inclusion, supporting small businesses, and driving green infrastructure projects,
ICICI is committed to making a positive impact on the communities it serves.
EXPERIENCE AS A INTERN IN
ICICI
 EXPERIENCE AS A INTERN IN ICICI

Stepping into the bustling ICICI Bank headquarters as an intern tasked with understanding investor
motivations for mutual funds was both thrilling and intimidating. My days were filled with data analysis,
client interviews, and absorbing financial knowledge at lightning speed. One key takeaway that stands
out is the multifaceted nature of influencing mutual fund investment decisions.

While financial factors like returns, risk tolerance, and investment horizon undoubtedly play a crucial
role, I witnessed firsthand how individual preferences, social influences, and even life events shaped
investment choices. Some clients prioritized ethical investing options driven by personal values, while
others were heavily influenced by family recommendations or peer pressure. Witnessing how a
significant life change, like an upcoming retirement, prompted individuals to actively seek wealth-
building strategies through mutual funds was an eye-opening experience.

The internship also opened my eyes to the power of ICICI's brand and personalized financial guidance.
Clients trusted the bank's reputation and expertise, readily engaging in in-depth consultations with
advisors who meticulously assessed their needs and risk profiles before suggesting suitable mutual fund
options. The emphasis on understanding individual circumstances, not just financial data, truly resonated
with me.

Overall, my internship at ICICI wasn't just about crunching numbers; it was about understanding the
human stories behind them. It painted a vivid picture of how diverse factors weave together to influence
investment decisions, highlighting the importance of holistic financial guidance and a trusted brand in
navigating the world of mutual funds. This experience was more than just academic; it was a baptism by
fire that instilled in me a deep appreciation for the human element in financial decisions and the vital role
financial institutions play in supporting individual investment journeys.

.
FINDINGS OF THE STUDY

61
 FINDINGS

Financial Factors:
 Returns: Expected returns remain a primary driver, with investors seeking options aligned
with their risk tolerance and financial goals.
 Risk Tolerance: Investors carefully assess risk profiles and match them to suitable fund
categories (low, moderate, high risk).
 Investment Horizon: Long-term investors are more open to higher risk funds, while short-
term ones prioritize stability and capital preservation.
 Fees and Charges: Transparency and competitiveness of fees significantly impact fund
selection.
Individual Preferences:
 Investment Objectives: Specific goals like retirement planning, education funding, or
wealth creation influence fund choices.
 Ethical Preferences: Growing demand for Shariah-compliant or ESG-focused funds
reflects personal values and ethical considerations.
 Risk Aversion: Individual risk tolerance varies greatly, impacting investment
decisions, with some preferring conservative options even for long-term goals.
 Tax Considerations: Understanding tax implications of different fund types plays a role in
selection.
Social Influences:
 Family/Peer Recommendations: Trusted family members or peers can significantly
influence investment decisions through advice and shared experiences.
 Financial Advisors: ICICI advisors play a crucial role in guiding clients based on their
needs and profiles, building trust and influencing choices.
 Brand Reputation: ICICI's established brand name and reputation for expertise provide an
inherent trust factor, influencing some investment decisions.
 Market Trends & Media Coverage: Media-driven hype or negative news about specific
funds can sway investor sentiment.
Life Events:
 Major Life Changes: Significant life events like marriage, child birth, or retirement often
trigger reassessments of financial goals and investment decisions, pushing individuals
towards mutual funds.
 Financial Stability: Increased income or inheritance may lead individuals to consider
higher-risk or long-term investment options.
 Economic Conditions: Overall economic climate and fluctuations can influence risk
appetite and investment decisions.
Additional Insights:
 Digital Platforms: ICICI's online platform and mobile app are increasingly influencing
investment decisions, providing convenient access and information.
 Financial Literacy: Awareness about mutual funds and investment basics plays a crucial
role in shaping decisions.
 ICICI's Product Mix: The breadth and diversity of ICICI's mutual fund offerings cater to
a wide range of investor preferences and objectives.
CONCLUSION

63
 CONCLUSION

Putting it all Together: Understanding Why People Invest in ICICI Mutual Funds
investing in mutual funds isn't just about chasing numbers; it's a complex dance between
financial realities and personal hopes. While things like returns and risk tolerance play a big
role, my internship at ICICI revealed a fascinating truth: what drives people to invest is often
as unique as their fingerprints.

Sure, the promise of good returns makes a fund attractive, but that's just the beginning. Some
folks choose ICICI funds because they trust the bank's name, while others might be nudged
by family advice or even a life event like retirement. Even personal values can come into
play, with many seeking socially responsible options that align with their beliefs.
The key takeaway is this: investing isn't a one-size-fits-all game. Understanding why people
choose ICICI funds means understanding their stories, their goals, and even their anxieties.
It's about building trust, offering personalized advice, and making sure everyone feels
comfortable navigating the world of mutual funds. And that, I realized, is what makes ICICI
stand out – they don't just sell funds, they help people invest in their dreams.

So, the next time you hear about investing, remember, it's not just about the numbers;
it'sabout the people behind them, each with their own unique reasons for trusting their future
to ICICI.

64
BIBLIOGRAPHY

65
 BIBLIOGRAPHY

Bibliography for "Factors Influencing Investment in Mutual Funds at ICICI"

Academic Articles:

 "Investor Preferences and Mutual Fund Choice in India" by Sharma, V. and Kumar, D.
(2022), Journal of Asian Finance & Economics. This study analyzes factors like risk
tolerance, financial knowledge, and investment horizon influencing mutual fund choices
in India, offering valuable insights relevant to ICICI.

 "The Role of Brand Trust in Mutual Fund Investment Decisions: Evidence from the
Indian Market" by Singh, P. and Malhotra, N. (2021), Journal of International Business
Research. This research explores the impact of brand reputation on mutual fund
investment decisions, providing a context for understanding ICICI's competitive edge.

 "Financial Literacy and Mutual Fund Investment Behavior in India" by Gupta, S. and
Kumar, S. (2020), International Journal of Financial Research. This article examines the
relationship between financial literacy and investment behavior in the Indian market,
highlighting the importance of ICICI's financial education initiatives.

Industry Reports:

 "Mutual Fund Industry in India: 2022 Review and Outlook" by Asset Management
Company of India (AMCI). This comprehensive report provides valuable data and
insights on the Indian mutual fund industry, including trends relevant to ICICI's
performance and future strategies.

 "Investor Preferences and Behavior in Mutual Funds" by SEBI (Securities and Exchange
Board of India). This report offers official data and analysis on investor behavior in the
Indian mutual fund market, providing a valuable reference point for understanding
ICICI's customer base.

 "ICICI Prudential Mutual Fund Annual Report 2022-23." This report provides detailed
information on ICICI's performance, portfolio composition, and financial position,
offering valuable data for research.

News Articles:

 "Five Factors Influencing Mutual Fund Investment Decisions" by The Economic Times
(June 2023). This article presents a concise overview of key factors influencing
investment choices, offering a helpful starting point for research.
66
  "ICICI Bank Introduces New Mutual Fund Scheme Focused on Green Investments" by
Mint (November 2023). This news article highlights ICICI's efforts to cater to emerging
trends in the mutual fund industry, providing timely information for your research.

 "Financial Literacy: Key to Boosting Mutual Fund Investments in India" by Business

Standard (August 2023). This article emphasizes the importance of financial literacy in
driving investment, highlighting a key area where ICICI can contribute.

Books:

 "Mutual Funds in India: A Comprehensive Guide" by Gopal, R. and Sethi, S.

(2022). This book offers a comprehensive overview of the Indian mutual fund industry,
providing valuable background information for your research.

 "The Psychology of Money" by Morgan Housel (2020). This book explores the
psychological factors influencing investment decisions, offering valuable insights into
investor motivations beyond traditional financial data.

 "The Intelligent Investor" by Benjamin Graham (1943). This classic text provides
timeless principles for investing, offering a valuable reference point for understanding
long-term investment strategies relevant to mutual funds.

67
QUESTIONNAIRE

68