01-06-2012, 10:56 AM
PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY
PRUDENTIAL ICICI ASSET MANAGEMENT COMPANY.doc (Size: 614 KB / Downloads: 40)
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.
Today’s 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.