Mutual Fund - For Merge

GRAPHIC ERA UNIVERSITY, DEHRADUN
SUMMER TRAINING REPORT ON SBI MUTUAL FUND SCHEME For the partial fulfillment of the degree of
Bachelor of Business Administration (B.B.A)

Batch2010-2013 SUBMITTED BY: PRASSANA SATI BBA 5TH SEMESTER (FINANCE GROUP) ENROLLMENT NUMBER:-G-10240729
EXTERNAL GUIDE:GUIDE-: MR. RAHUL BHATT MR.AKHILESH SHARMA ISD HEAD MANAGEMENT UTTARAKHAND UNIVERSITY DEHRADUN
INTERNAL
FACULTY OF GRAPHIC ERA
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Acknowledgement
The pleasure that follows the successful completion of an assignment would remain incomplete without a word of gratitude for the people without whose cooperation the achievement would have remained a distant dream. It is not a mere formality to place on record the tireless efforts, ceaseless cooperation, constant guidance and encouragement of the people closely associated with the assignment but a distant necessity for the authenticity and credibility of the project. I am extremely grateful to my college guide, MR.AKHILESH SHARMA for their valuable guidance and timely suggestions. The management theories learnt in a year are brought to practice. I tried to make best use of this opportunity. The work bears the imprint of many persons. I am thankful to Mr. Rahul Bhatt (Assistant relationship manager of SBI Mutual Funds dehradun), for his valuable guidance and encouragement during the preparation of my summer Training Report. I am also thankful to all my faculty members.
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PREFACE
Only Theoretical knowledge stands no where and cannot give positive and meaningful result unless supplement with the real practice of Business Environment. Summer training is the implementation of the theory in practice that makes real meaning to what exactly is management. The researcher was assigned to SBI mutual fund for summer training, which constitute an internal part of three years BBA program. The training period consists of 30days. It was really a great opportunity of getting practical insight into the corporate world. The researcher contacted directly to the customers in their home in Dehradun city to obtain relevant information. The company was interested to know to assess the customer acquisition and market position of the SBI mutual fund schemes in the Dehradun. After the analysis data, the main findings of this study and suggestion are presented in the report.
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Executive summary
In few years Mutual fund has emerged as a tool for ensuring ones finance well being. Mutual funds have not only contributed to the India growth story but have also helped families tap into the success of India industry. As information and awareness is rising more and more people are enjoying the benefits of investing in Mutual fund. The main reason the number of retail Mutual fund investors remains small is that nine in ten people with income in India do not know that Mutual fund exist. But once people are aware of Mutual fund investors opportunity, the number who decides to invest in Mutual funds increase to as many as one in five people. The trick for converting a person with number knowledge of Mutual funds to a new Mutual fund customer is to understand which of the potential investors are more likely to buy Mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision. This project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability. The analysis and advice presented in this project report is based on invest practice of the investors and preferences of the investors for invest in Mutual funds. This report will help to know about the investors preference in Mutual fund means are they prefer any particular AMC, which type of product they prefer, which option (growth and dividend) they prefer or which investment strategy they follow(SIP or one time plan). This project a whole can be divided into two parts. The first part gives on insight of Mutual fund and it various aspects, the company profile, objective of the study, research methodology one can have a brief knowledge about Mutual fund and its basis through then project. In second part gives eISC package which is used by the SBI for their customer and broker in order to view their detail regarding client investment detail, date, and detail of broker. In this part SIP detail and their benefit is also given along with example. In third part finding which equity scheme is better for investment and gives highest return with minimum risk.
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Table of content
CERTIFICATE ACKNOWLEDGEMENT PREFACE ORGANISATION CERTIFICATE DECLARATION CERTIFICATE EXECUTIVE SUMMARY SECTION A Introduction Profile of SBI. Overview of the industry as whole. Profile of state Bank of India Mutual Fund. Introduction of Mutual Fund. Working of Mutual Fund. Organization structure of Mutual Fund. Types of Mutual Fund. Mutual Fund classified on the basis of investment. Mutual Fund classified on the basis of investment objectives. Mutual Fund classified on the basis of risk profile. Advantages of Mutual Fund. Risk Associated in Mutual Fund. Who can invest in Mutual Fund Schemes? Types of Schemes offered by SBI MF. SECTION B Research Methodology Comparative Analysis of Systematic Investment Plan And Lump Sum Investment How to invest in mutual funds? SECTION C Finding, Conclusion, Recommendation (if any), Limitation SECTION D Questionnaire Bibliography 10 10 13 16 17 18 19 20 20 20 20 22 24 24 32 34 37 58 61 65
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SECTION-A
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PROFILE OF SBI
State bank of India is the largest commercial bank. SBI has vast domestic network of over 9000 branches and commands one-fifth of deposits and loan of all scheduled commercial bank in India. State bank of India a network of eight banking subsidiaries and several non-banking services, fund management, credit cards, and insurance. The origin of state bank of India date back to 1806 when the bank of Calcutta was established. In 1921, Bank of Bengal and two other Banks i.e. Bank of Madras and Bank of Bombay were amalgamated to form the imperial Bank of India. Today, state Bank of India has spread its arms around the world and has a network of branches spanning all time zones.
OVERVIEW OF THE INDUSTRY AS WHOLE

The mutual fund in India started 1963 with the formation of Unit Trust of India, at the initiative of the Reserve Bank and the Government of India. The objective then was to attract the small investors and introduced them to market investment. Since then, the history of mutual fund in India can be broadly divided into three distinct phases.
Phase 1- 1964=87(Unit Trust of India)

In 1963, UTI was established by an Act of Parliament and given a monopoly. Operationally, UTI was set up by the Reserve Bank of India, but was later de-linked from the RBI. The first and still one of the largest schemes, launched by the UTI was Unit scheme 1964. Over the years, US-64 attracted, and probably still has, the largest number of investors in any single investment scheme. It was also at least partially the first open-end scheme in the country, now moving towards becoming fully open-end.
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Later in 1970 and 1980, UTI started innovating and offering different schemes to suit the needs of different classes of investors. Unit Linked Insurance Plan (ULIP) was launched in 1971. Six new schemes were introduced between 1981 and 1984. During 1984-87, new schemes like Childrens Gift Growth Fund (1986) and Master share (1987) are launched. Master share could be termed as the first diversified equity investment scheme in India. The first Indian offshore fund, Indian Fund, was launched in August 1986. During 1990s, UTI catered to the demand for income- oriented schemes, a somewhat unusual mutual fund product offering assured returns. The mutual fund industry in India not only started with UTI, but still counts UTI as its largest player with the largest corpus of investible funds among all mutual funds currently operating in India. Until 1980s, UTIs operations in the stock market often determined the direction of market movements.
Phase 2- 1987=1993(Entry of Public Sectors Funds)

1987 marked the entry of non-UTI, public Sector mutual fund, bringing in competition. With the opening up of the economy, many public sector banks and financial institutions were allowed to established mutual funds. The State Bank of India established the first non-UTI mutual fund- SBI Mutual Fund in November 1987. This was followed by Canra bank mutual fund ( launched in December, 19870, LIC Mutual Fund (1989), and Indian Bank Mutual Fund (1990) followed by Bank by of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. These mutual funds helped enlarge the investor community and the investible fund, from 1987 to 1992-93, the fund industry expanded nearly seven times in terms of Assets under Management.
Phase 3- 1993=1996(Emergence of Private Funds)

A new era in the mutual fund industry began with the permission granted for the entry of private sector funds in 1993, giving the Indian investors a broader choice of fund families and increasing competition for the existing public sector funds. Quite significantly, foreign fund management companies were allowed to operate mutual funds, most of them coming into India through their joint ventures with Indian promoters. These private funds have brought in with them the latest product innovations, investment management techniques and 10 S.B.I MUTAL FUND
investor servicing technology that make the Indian mutual industry today a vibrant and growing financial intermediary. During the year 1993-94, five private sector mutual funds launched their schemes followed by six others in 1994-1995. Initially, the mobilization of funds by the private mutual funds as slow. But, this segment of the fund industry now has been witnessing much greater investor confidence in them. One influencing factor has been the development of a SEBI driven regulatory framework for mutual funds. But another important factor has been the steadily improving performance of several funds themselves. Investors in India now clearly see the benefits of investing through mutual funds and have started becoming selective.
Phase 4- 1996(SEBI Regulation for Mutual Funds)

The entire mutual fund industry in India, despite initial hiccups, has since scaled new heights in terms of mobilization of funds and number of players. Deregulation and liberalization of the Indian economy has introduced competition and provided impetus to the growth of the industry. Finally, most investors- small or large- have started shifting towards mutual funds as opposed to banks or direct market investments. More investor friendly regulatory measures have been taken both by SEBI to protect the investor and by the Government to enhance investors returns through tax benefits. A comprehensive set of regulations for all mutual funds operating in India was introduced with SEBI (Mutual Fund) Regulations, 1996. These regulations set uniform standards for all funds and will eventually be applied in full to Unit Trust of India as well, even though UTI is governed by its own UTI Act. In fact, UTI has been voluntarily adopting SEBI guidelines for most of its schemes. Similarly, the 1999 Union Government Budget took a big step in exempting all mutual fund dividends from income tax under the hands of investors. Both the 1996 regulations and the 1999 Budget must be considered of historic importance, given their far-reaching impact on the fund industry and investors.
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I ndustry Profile
Industry Structure UTI Public Sector MFs Private Sector MFs
Indian Private Sector Funds
JV with Foreign Funds
Foreign MFs
Profile of State Bank of India Mutual Fund

SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable track record in judicious investment and consistent wealth creation. The fund traces its lineage to SBI- Indias largest banking enterprise. The institution has grown immensely since its inception and today it is Indias largest bank, patronized by over 80% of the top corporate houses of the country. SBI Mutual Fund is a joint venture between the State Bank of India and Society Generale Asset Management, one of the worlds leading fund management companies that manages over US $ 330 Billion worldwide.
SWOT ANALYSIS OF SBI MUTUAL FUND

STRENGTHS
1. Established name in the market SBI MF is a wholly owned subsidiary of State Bank of India, which is a widely acclaimed name in the banking sector. It has got good name and reputation in the market. It is 12 S.B.I MUTAL FUND
one among the fortune 500 companies in the world. People have faith in the name of SBI, so they do not hesitate while investing in SBI MF. 2. Good performance history SBI MF has an enviable track record in judicious investment and consistent wealth creation. Most of the schemes offered by SBI MF have done well in the past which in turn helps in creating the new customers. 3. Good product line SBI MF offers a wide range of products to the investors, enabling them to choose the product according to their own need and preferences.
WEAKNESSES
1. Poor services The services of SBI MF are not to the mark. Most of the investors are not satisfied with the services provided by them. Delay in payment of amount incases of repurchase and delays in dispatch of statement are the main problem faced by the investors. 2. Lack of awareness about mutual funds Most of the people in India do not know about the mutual funds and those who know dont think about investing in it which demands more efforts on their part. 3. Non availability of MF related services in all SBI branches Non availability of MF services in all SBI branches is one of the weakness of SBI MF. Only one services desk is functioning in one city which creates problems for the investors.
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OPPORTUNITIES
1. Opportunity to use various branches of SBI to provide better services SBI MF can use various branches of SBI for the betterment of its MF related services. It will be more convenient for the investors. 2. It can use already set up network of SBI to make the popular aware of MF and to convert them into investors As the customers of SBI come to the bank on a regular basis, so, SBI MF can use the various branches for educating the customers about MF and to convert them into investors of mutual fund. 3. Potential rural market There is so much potential in the rural market and SBI MF can easily penetrate in this market with its (SBI) strong reputation and set up branches. It can mobilize huge amount of funds from this market through educating people about mutual fund.
THREATS
1. Tough competition from other mutual fund organizations SBI MF is facing so much competition from other growing MF in the market as they also performing well. The entry of new MF organizations has made the competition more severe.
2. Competition from other investment opportunities available for investors As now a days so many investment opportunities are available in the market like insurance, investment in share market and real estate which are also attracting the investors, thereby increasing competition and posing threat to mutual fund.
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INTRODUCTION
.Mutual funds are popular among all income levels. With a mutual fund, we get a diversified basket of stocks managed by a professional
Barbara Stanny, author of Prince Charming Isnt Coming & How Women Get Smart About Money
A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings..
-The U.S. Securities and Exchange Commission
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WORKING OF MUTUAL FUND
The income earned through these investments and capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus mutual funds 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.
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ORGANISATIONAL STRUCTURE OF MUTUAL FUND

Sponsor Company (For e.g. SBI MF) Sponsor set up a MF, as the trust register the MF under SEBI.
Managed by the board of trustee
Trustee (For e.g. SBI MF)
Trustees appointed by the sponsor and oversee the functioning of AMC, Invest. In MFS are held by trustee.
Asset Management Companies (e.g. MF AMC
AMC is the fund manager, it floats different MF Schemes, it manages the fund as SEBI Guidelines AMC agreement.
Custodian
Appoint by board of trustee, keep record and account of securities.
Registrar and Transfer agent
Issues, redeems, transfer units of MF schemes, keeps unit holders accounts update.
Distributors
Provides the network for distribution of the schemes to the investors.
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TYPES OF MUTUAL FUND

1. Close ended / Open ended. Load fund / No- load fund. Tax exempt / Non- tax exempt fund. Close ended: A close-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the time of the public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. Open ended: An open-end fund is one that is available for subscription all through the year. Open end do not have fixed maturity. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices. The key feature of open-end schemes is liquidity. 2. Load fund: A Load fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history. No- Load fund: A No- Load fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work. 3. Tax Exempt Fund: Such type of fund offer tax rebate to the investors under specific provisions of the Indian Income tax laws as the government offers tax incentives for investment in specified avenues. Non-Tax Exempt Fund:
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In Non-Tax Exempt fund investors have to be pay tax on their investment at a specified rate which is decided by the SEBI.
MUTUAL FUND CLASSIFIED ON THE BASIS OF INVESTEMNT

Equity Funds
Bond Funds Money Market Funds
MUTUAL FUND CLASSIFIED ON THE BASIS OF INVESTEMNT OBJECTIVES

Value Funds Growth Funds Income Funds
Mutual Fund Classified On The Basis Of Risk Profile

High Risk Funds. Moderate Risk Funds. Low Risk Funds
ADVANTAGES OF MUTUAL FUNDS
* PROFESSIONAL MANAGEMENT Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated investment research team that analyses the performance and prospects of companies and selects suitable investments to achieve the objectives of the schemes.
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* DIVERSIFIACTION Mutual Funds invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual fund with far less money than you can do on your own. * CONVENIENT ADMINISTRATION Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your time and make investing easy and convenient. * RETURN POTENTIAL Over a medium to long-term, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities. * LOW COSTS Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors. * LIQUIDITY In open-end schemes, the investors get the money back promptly at net asset value related prices from the Mutual Fund. In closed-end schemes, the units can be sold on a stock exchange at the prevailing market price or the investors can avail of the facility of direct repurchase at NAV related prices by the Mutual Fund.
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* FLEXIBILTY Through features such as regular investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience. * AFFORDABILITY Investors individually may lack sufficient funds to invest in high-grade stocks. A Mutual Fund because of its large corpus allows even a small investor to take the benefit of its investment strategy. * WELL REGULATED All Mutual Funds are registered with SEBI and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.
RISK ASSOCIATED IN MUTUAL FUNDS

Mutual funds and securities investment are subject to various risks and there is no assurance that a scheme objective will be achieved. These risks should be properly understood by investors so that they can understand how much risky their investment avenue is. Equity and fixed income bearing securities have different risks associated with them. Various risks associated with mutual funds can be described as below.
Risk associated to fixed income bearing securities are:

Interest Rate Risk As with all the securities, changes in interest rates may affect the schemes Net Asset Value (NAV) as the prices of the securities generally increase as interest rates decline and generally decrease as interest rates rise. Prices of long-term securities generally fluctuate more in 21 S.B.I MUTAL FUND
response to interest rates changes than short term securities do. Indian Debt markets can be volatile leading to the possibility of price movements up or down in the fixed income securities and thereby to the possible movements in the NAV. Liquidity or Marketable Risk This refers to the ease with which a security can be sold at near to its valuation yield to maturity. The primary measure of liquidity risk is the spread between the bid price and the offer price quoted by the dealer. Liquidity risk is inherent to the Indian Debt market. Credit Risk Credit risk or default risk refers to the risk that an issuer of fixed income security may default (i.e., will be unable to make timely principal and interest payments on the security). Because of this risk corporate debentures are sold at a yield above those offered on Government securities, which are sovereign obligations and free of credit risk. Normally the value of fixed income security will fluctuate depending upon the perceived level of credit risks well as the actual event of default. The greater the credit risk the greater the yield require for someone to be compensated for increased risk.
Risk associated to equities

Market Risk The NAV of the scheme investing in equity will fluctuate as the daily prices of the individual securities in which they invest fluctuate and the units when redeemed may be worth more or less than the original cost. Timing the Market It is difficult to identify which is the right time to invest and which is the right time to take out the money. There may be situations where stocks may not be rightly timed according to the market leading to loss in the value of scheme. Liquidity
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Investment made in unlisted equities or equity related securities might only be realizable upon the listing of the securities. Settlement problems could cause the scheme to miss certain investment opportunities
WHO CAN INVEST IN MUTUAL FUND SCHEMES

Residents:
Resident Individuals/HUF. Indian Companies. Partnership Firms. Indian Trusts/Charitable Institution. Insurance Companies. Banks. Financial Institutions.
Non Resident
NRIs & Persons of Indian origin. Overseas Corporate Bodies (OCBs).
Foreign Entities
FIIs registered with SEBI.
Foreign nationals can not invest in MF.
TYPES OF SCHEMES OFFERD BY SBI MF
Equity Schemes
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Debt Schemes
Options Available to investors in equity schemes

Each plan of every mutual fund has two options :- Growth
- Dividend: Payout Reinvestment

DIVIDEND OPTION:
PAYOUT: Under the dividend plan dividend are usually declared on quarterly or annual basis. Mutual fund reserves the right to change the frequency of dividend declared.
REINVESTMENT OPTION: Instead of remittances of units through payouts, Units holder may choose to invest the entire dividend in additional units of the scheme at NAV related prices of the next working day after the record date. No sales or entry load is levied on dividend reinvest.
GROWTH OPTION : Under this plan returns accrue to the investor in the form of capital appreciation as reflected in the NAV. The scheme will not declare the dividend under the Growth plan and investors who opt for this plan will not receive any income from the scheme. Instead of income earned on their units will remain invested within the scheme and will be reflected in the NAV.
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Equity Schemes Offered By SBIMF Are As Follows:
Magnum Multicap Fund

(An Open-ended growth scheme) To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum, debt and money market instruments.
SBI Blue chip Fund

(An Open-ended growth scheme) The objective of the scheme would be to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is atleast equal to or more than the least market capitalised stock of BSE 100 Index.
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Magnum Multiplier Plus 1993
(An Open-ended growth scheme)
Magnum Multiplier Plus is an open-ended diversified equity fund and the investment objective of the scheme is to provide investors long term capital appreciation along with the liquidity of an open-ended scheme
Magnum Equity Fund

(Open-ended equity scheme)
To provide the investor Long-term capital appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market instruments
SBI Magnum Taxgain Scheme 1993

(An Open-ended equity linked saving scheme) 26 S.B.I MUTAL FUND
The prime objective of scheme is to deliver the benefit of investment in a portfolio of equity shares, while offering tax rebate on such investments made in the scheme under section 80 C of the Income-tax Act, 1961. It also seeks to distribute income periodically depending on distributable surplus
Magnum Global Fund

(Open-ended growth scheme)
To provide the investors maximum growth opportunity through well researched investments in Indian equities, PCDs and FCDs from selected industries with high growth potential and Bonds.
MSFU - Contra Fund

(An Open-ended growth scheme) To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy..
Magnum COMMA Fund

(An Open-ended equity scheme)
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The objective of the scheme would be to generate opportunities for growth along with possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity business within the following sectors - Oil& Gas, Metals, Materials & Agriculture and in debt & money market instruments
DEBT SCHEMES:
Debt Fund invests only instruments such as corporate bonds, government securities, and money market instruments. Hence they are safer then the equity funds and the expected returns from the debt funds would be lower. Such investments are advisable for the risk averse investors.
Magnum Childrens Benefit Plan
(An Open-ended Income scheme) To provide attractive returns magnum holders/unit holders by means of capital appreciation through an actively managed portfolio of debt, equity and money market instruments.
Magnum Monthly Income Plan (An Open-ended Income scheme) To provide regular income, liquidity and attractive returns to the investors through an actively managed portfolio of debt, equity and money market instruments.
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SBI Premier Liquid Fund (An Open-ended liquid fund) To provide attractive returns to the magnum holders either through periodic dividends or through capital appreciation through an actively managed portfolio of debt and money market instruments.
Magnum Gilt Fund
(An Open-ended gilt fund) To provide the investors with returns generated through investments in government securities issued by the central government and/ or a state government.
Magnum Income Fund
(An Open-ended debt fund)
To provide the investors an opportunity to earn, in accordance with their requirements, through capital gains through regular dividends, returns that would be higher than the returns
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offered by comparable investment avenues through investments in debt & money market securities
SECTION-B
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RESEARCH METHODOLOGY
Research problem: - While completing my thesis I find out that what the problems are.
They are as follows:-
Tax Consequences: - Lastly, mutual funds have a strange characteristic when it comes
to taxes. You could owe tax even if the value of your investment is going down! When a fund sells a stock for a profit whether its by design or forced it passes the tax bill on to you in the form of annual capital gains distribution. If your timing is bad, for example, you buy just before the fund makes its capital gains distribution or you buy during the year that the fund manager is taking a lot of profit, you could end up paying a very big tax bill for no good reason.
Over Diversification: - Either by design or as a consequence of the problem explained

above, many mutual funds suffer from over diversification. Basically, the fund has so much cash that it is forced to own hundreds of stocks within its classification. Consequentially, its impossible for the fund manager to focus on the high potential stocks and the mutual fund becomes a closet index fund i.e., simply reflecting the average within that particular group.
Sub-Optimal Purchases: - When investors buy shares of a mutual fund, the fund
manager must turn around and buy shares of stocks that fit within certain guideline specified by the prospectus. For example, if its a Small Value Fund, the manager cannot buy a Large Growth stock even if it represents a better buying opportunity. Additionally, if there are not enough good buying opportunities to choose from, the fund manager is forced to buy stocks that are less desirable.
Problem solution: - As I mentioned at the beginning, mutual funds make sense for some
investors under certain circumstances. However, there are occasions when you want to choose other alternatives. In my opinion, one of the best alternatives is Exchange-Traded Funds (ETFs). Although you have to pay trade commissions, the expense ratio is much lower than an equivalent mutual fund. And due to how ETFs are created the remaining four problems are virtually eliminated. RESEARCH OBJECTIVES:
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Which one of the equity scheme is better for investment in order to get high return at low risk?
Evaluating performance and risk & return of different schemes in order to know which one of the equity scheme performing better.
To know how in what extent return value is affected during recession. On the basis of performance analysis of equity schemes suggest to investor which one of the equity scheme is better for investment?
Sources of Information
While collecting the data for my thesis I used two types of Sources:
Primary sources
The Primary data means that the data is collected by the person by himself. In this, data is collected directly from respondents using questionnaire, direct observation & interview techniques. So for this purpose I visited 50 people in the SBI bank. I Interviewed them and asked them various questions related to my thesis and try to find out the actual result.
Secondary sources
The secondary data is that type of data that is not collected by the actual person. This type of the data is already existed in the form of Internet, Research report, Journals, websites, books and also the pamphlets, and the broachers made by the company for their advertisement, etc.
Limitation: Some of the persons were not so responsive. Possibility of error in data collection because many of investors may have not given actual answers of my questionnaire. Sample size is limited to 35 visitors of State Bank of India, Rajpur Road Branch, Dehradun out of these only 31 had invested in Mutual Fund. The sample 32 S.B.I MUTAL FUND
size may not adequately represent the whole market. Some respondents were reluctant to divulge personal information which can affect the validity of all responses.
Comparative Analysis of Systematic Investment Plan and Lump Sum Investment
Summary
Mutual Funds over the years have gained immensely in their popularity. Apart from the many advantages that investing in mutual funds provide like diversification, professional management, the ease of investment process has proved to be a major enabling factor. However, with the introduction of innovative products, the world of mutual funds nowadays has a lot to offer to its investors. With the introduction of diverse options, investors needs to choose a mutual fund that meets his risk acceptance and his risk capacity levels and has similar investment objectives as the investor. Most importantly, mutual funds provide risk diversification. Diversification of a portfolio is amongst the primary tenets of portfolio structuring, and a necessary one to reduce the level of risk assumed by the portfolio holder. Most of us are not necessarily well qualified to apply the theories of portfolio structuring to our holdings and hence would be better off leaving that to a professional. Mutual funds represent one such option. Lastly, Evaluate past performance, look for stability and although past performance is no guarantee of future performance, it is a useful way to assess how well or badly a fund has performed in comparison to its stated objectives and peer group. A good way to do this would be to identify the five best performing funds (within your selected investment objectives) over various periods, say 3 months, 6 months, one year, two years and three years. Shortlist funds that appear in the top 5 in each of these time horizons as they would have thus demonstrated their ability to be not only good but also, consistent performers.
SIP and Lump Sum are the two techniques to invest in mutual funds. Any investor can
choose one out of them and can invest their money into mutual funds. SIP is Systematic Investment Plan which is very helpful to salaried and middle class man. They can invest their saving into Systematic Investment Plan and can collect huge funds for future. SIP is paid in monthly or quarterly as per the scheme. But lump sum is paid only one time and the whole transaction is based on this investing money. Opting SIP, an investor can invest their saving into it and can safe his money doing that. SIP is good because if it seems that market will goes down in few days so an investor can safely withdraw his money and can safe his money. 33 S.B.I MUTAL FUND
Objectives:

To evaluate investment performance of selected mutual funds in terms of risk and return. To evaluate and create an ideal portfolio consisting the best mutual fund schemes which will earn highest possible returns and will minimize the risk. To analyze the performance of mutual fund schemes on the basis of various parameter.
Recommendations:
Investment is the technique by which people save the money for future and increase their living standard. Many people who dont know and dont want to take more risk by investing in shares and securities therefore Mutual Funds are better instruments to save their money for future and provide them better return. SIP and Lump sum are two techniques to invest money in mutual fund. People should not confuse about them. Both are better themselves. When market is ups and down nature it is better to invest their money through SIP another reason for SIP is because it is monthly investment so when there are salaried person who want to invest money in mutual fund then SIP is good technique because they have limited saving thats why SIP is good for salaried persons. When I surveyed in the market there are many people who really dont know what actually mutual fund means is. I realized that there are many persons who dont invest money in mutual fund they only invest in insurance or fixed deposit. I will suggest here that there is need of more advertising through canopies which will help to those people who want to invest in mutual fund and will get more information through canopies. Some people prefer to invest a lump sum when they have the money available - perhaps from a bonus at work. The benefit is that you are less likely to spend the money on other things! However, if you do not have a lump sum, you don't have to save up until you have a large amount to invest. You can invest a relatively small amount every month that can build up into a worthwhile nest egg. If you set up a monthly savings plan, you will soon come to think of your regular payment as an essential part of your budget. What's more, you can benefit from a phenomenon known as "rupee cost averaging", no matter how markets are performing: If the market goes up, the units you already own will increase in value. If the market goes down, your next payment will buy more units.
Conclusions:
34 S.B.I MUTAL FUND
These two techniques are better themselves. People should consider before investing money in mutual fund and invest in good AMC. It doesnt matter that SIP or Lump Sum will give better return. It all depends on fund manager and AMC. SIP is a mean not an end. Investors would do well to realize that the SIP is means for achieving ones financial goal and not an end by itself. An investment in a poorly managed fund remains just that irrespective of the investment mode i.e. lump sum or SIP. Hence investors first select a well managed fund which has a track record to show for. Many AMC show result in their fact sheet which has good performance it doesnt mean that this mutual fund will perform in future. So investors should consider more on this point before investment. According to survey, 34% people say that Lump Sum is good technique for investment and on the other hand, 66% people say that they will chose SIP to invest in mutual fund. So trends say that SIP is good for investment purpose in mutual fund. But apart from that people also depend on the market and they take advices from some experts of this field. They invest what they want. Ive seen that people dont want to invest money monthly and they want to get rid of this kind of investment because they think that this type of investment can divert their mind from their business. Some people invest money through Lump Sum at once. So they can concentrate more their business or activities etc. So the outcomes of this survey is that people invest money in mutual fund by both techniques, SIP and Lump Sum but some time investor is in more profitable and some not its depends on market fluctuation.
Limitations:
There are some problems that I faced when I surveyed, I saw that people doesnt convinced easily to invest in mutual fund they have misperception that investing in mutual fund is like a gambling and some people says that investing in mutual fund is same as investing in share market. I surveyed this when share market was very down and day by day it was going down and down so people were hesitating to invest in mutual fund. These all things are happen when there is lack of proper advertising. People have good knowledge of insurance and other things than mutual fund. So first thing is that people should aware these all things they even dont know the terms and glossary.
35 S.B.I MUTAL FUND
How to invest in mutual funds? Investors can invest in mutual funds two ways:
- Yearly payment - SIP (Systematic Investment Plan) Yearly payment:
In such investor can invest desire amount at a one time in mutual fund scheme without follow installment payment system and on that day NAV is applicable on invested amount.
SIP (Systematic Investment Plan):

Buy low and Sell high, just four words sum up a winning strategy for the stock markets Indian Market is a synonym for volatility and dynamism. National Stock Exchange is the most liquid exchange in the world. Predicting 36 S.B.I MUTAL FUND
Indian Market is the most difficult task, almost an impossible one. The inability to time the market on a regular basis can leave an investor high and dry. However, ironically, the time in the market has historically shown more consistent success than timing the market. Though great returns from the market may not always be possible, stable and consistent returns are. And one of the best ways to get this return in this market of ours is the Systematic Investment Plan (SIP) offered by the mutual funds. SIP is a powerful tool with a strategy of not only preserving capital but also translating into substantial creation of wealth in the long run. Under this plan Investors invest a specific amount for a continuous period, at regular intervals. By doing this, the investor get the advantage of rupee cost averaging. Which means that by investing the same amount at regular intervals, the average cost per unit remains lower than the average market price, irrespective of how the market is rising, falling or fluctuating .i.e. with every fluctuation in the market the units are purchased systematically, thus resulting in averaging the purchase price? Whereas this is not true for a one- time investment. This is the reason why a SIP investors gets phenomenal rate of return compared to a one- time investor. Features of a Systematic Investment Plan 1. To get a disciplined investment. 2. To create value/wealth. 3. To avoid short-term fluctuations in the market. 4. Avoid risk of timing the market.
37 S.B.I MUTAL FUND
For Example: Let us suppose that a person invests Rs. 1,000 every month, in an equity fund using the SIP. The following table shows how investment would look in the two scenarios of fluctuating and rising market
Month Initial Investment

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.
Amount Invested(Rs.)
1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000
Purchase Price(Rs.)
10.00 8.20 7.40 6.10 5.40 6.00 8.20 9.25 10.00 11.25 13.40 14.40
No.
100.00 121.95 135.14 163.93 185.19 166.67 121.95 108.11 100.00 88.89 74.63 69.44
of
Units
Purchased
TOTAL
12,000
(109.6)
1435.90
Average Unit Cost Average Unit Price Assumed NAV@ Q12 Market Value
(Rs. 12,000/1435.9) = Rs. 8.36 (Sum of Purchase price/12) = Rs. 9.13 Rs. 14.90 (1435.9 units x Rs. 14.90) = Rs. 21,395
38 S.B.I MUTAL FUND
State Bank of India uses the eISC Package, provided by CAMS (Registrar of SBI MF) in order to maintain a database of the investors, investing in different schemes of SBI mutual funds. The package is used to: 1. For Investors: a) It is used to enquire the personal details about the investor with the help of Folio number, application number, cheque number or draft number. b) Retrieve the daily NAV (Net asset value) list. c) Generate the statement of account for the investors.
2. For Brokers: a) It is used to enquire the personal details about the investor with the help of ARN number or the name of the broker. b) Generate the commission statement for the Brokers with the help of ARN no. or number. c) Generate report regarding the total business done by the brokers in a particular month.
3. For SBI MF: a) The company can keep an eye and generate reports of the total business done by the service desk in particular month or year. b) The company can also see the business done by individual agents, brokers and the nationalized distributors in a particular month or a year.
The statement of account of the investor is shown below. In the statement the personal details, pan card number. Bank particulars and the current and initial investment of the investor, no. of units hold and the current NAV is given. An investor should 39 S.B.I MUTAL FUND
view his/her SOA (statement of account) once with in 15-20 days so that the returns generated by a particular scheme are correctly known to the investor.
40 S.B.I MUTAL FUND
Q. Which one of the Equity scheme is better on the basis of performance and risk & return for investment? Magnum Taxgain: Performance
Current Stats & Profile Current Latest NAV Stats & Profile 52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark
53.55 (06/10/09) 54.23 (01/10/09) 27.19 (09/03/09) Equity: Tax Planning Open End March 1993 Below Average Above Average 4,746.36 (30/09/09) BSE 100
Trailing Returns
Trailing Returns
Category 69.17 6.28 21.61 40.92 9.41 23.12 --
As on 06 Oct 2009 Fund Year to Date 72.80 1-Month 7.04 3-Month 19.85 1-Year 43.37 3-Year 11.66 5-Year 34.75 Return Since Launch 19.59 Returns upto 1 year are absolute and over 1 year are annualised.
41 S.B.I MUTAL FUND
Risk & Return

Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Below Average Fund Return Grade Above Average Modern Portfolio Stat R-Squared 0.96 Alpha 0.79 Beta 0.96 Volatility Measures Mean 18.09 Standard Deviation 34.51 Sharpe Ratio 0.38
Best and Worst Performance Best (Period) Month 60.94 (03/12/1999 - 04/01/2000) Quarter 117.12 (03/12/1999 - 03/03/2000) Year 371.36 (05/03/1999 - 06/03/2000)
Worst (Period) -52.41 (31/03/2000 - 02/05/2000) -61.55 (25/02/2000 - 26/05/2000) -74.61 (13/03/2000 - 13/03/2001)
Annual Returns Fund Return Rank In Category Category Average S&P CNX Nifty Sensex 2008 -54.86 14/29 -55.67 -51.79 -52.45 2007 55.27 16/26 57.96 54.77 47.15 2006 44.96 1/23 30.06 39.83 46.70 2005 96.06 1/20 51.76 36.34 42.33 2004 53.93 1/19 30.32 10.68 13.08
42 S.B.I MUTAL FUND
In the seven years spanning 1996 to 2002, the fund underperformed the category average every single year (category average 219%). However from 2003 onwards, it has been on highest. After an excellent performance that year, it was the best that year, it was the best performing fund in its category till 2006. But in 2007 its performance goes down and in meltdown of 2008, it performance is very poor. Firm broadened its portfolio because of this fund performance is improved. In the bear hug of 2008 and first quarter of 2009. Its conservative tilt may appeal to investors looking for a tax saving avenue in turbulent market conditions.
Magnum Contra:
Performance
Current Stats & Profile Current Stats & Profile Latest NAV 52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark 52.03 (06/10/09) 52.94 (01/10/09) 25.48 (27/10/08) Equity: Diversified Open End July 1999 Below Average Above Average 3,110.47 (30/09/09) BSE 100
Trailing Returns Trailing Returns As on 06 Oct 2009 Year to Date 1-Month 3-Month 1-Year 3-Year 5-Year
Fund 78.06 5.95 20.41 50.46 15.15 34.85
Category 71.16 5.92 21.07 42.02 10.10 24.47
43 S.B.I MUTAL FUND

Return Since Launch 28.53 Returns upto 1 year are absolute and over 1 year are annualised. --
Risk & Return

Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Below Average Fund Return Grade Above Average Modern Portfolio Stat R-Squared 0.97 Alpha 3.78 Beta 1.00 Volatility Measures Mean Standard Deviation Sharpe Ratio 21.61 35.81 0.46
Worst (Period) -33.18 (24/09/2008 - 24/10/2008) -42.69 (02/02/2000 - 03/05/2000) -54.68 (06/12/2007 - 05/12/2008)
44 S.B.I MUTAL FUND
Over the past eight years, magnum contra has consistently managed to stay ahead of the curve. Recently in 2009, in line with other equity diversified funds, it moved up the exposure to financial service sector and was turned into one of the best performing indices in the recent rally(09/03/2009 to 30/06/2009). The fund has evolved into a much more conservative offering. The number of stocks has risen from 34 to around 70 and its excellent performance maintains it good during a market downturn.
Magnum COMMA:
Performance
Current Stats & Profile Latest NAV 52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark 21.17 (06/10/09) 21.53 (30/09/09) 10.78 (27/10/08) Equity: Diversified Open End July 2005 Above Average Above Average 616.48 (30/09/09) BSE 200
Trailing Returns As on 06 Oct 2009 Fund Year to Date 75.68 1-Month 5.01 3-Month 21.67 1-Year 41.61 3-Year 12.65 5-Year -Return Since Launch 19.54 Returns upto 1 year are absolute and over 1 year are annualised. Category 71.16 5.92 21.07 42.02 10.10 24.47 --
Risk & Return

Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Above Average Fund Return Grade Above Average Modern Portfolio Stat R-Squared 0.94 Alpha 2.06 Beta 1.09 Volatility Measures Mean Standard Deviation Sharpe Ratio 21.00 39.47 0.40
45 S.B.I MUTAL FUND
Worst (Period) -37.78 (24/09/2008 - 24/10/2008) -44.02 (02/09/2008 - 02/12/2008) -60.69 (04/12/2007 - 03/12/2008)
Annual Returns Fund Return Rank In Category Category Average S&P CNX Nifty Sensex 2008 -59.71 149/193 -55.15 -51.79 -52.45 2007 86.01 14/162 59.45 54.77 47.15 2006 46.85 30/145 34.73 39.83 46.70 2005 --46.58 36.34 42.33 2004 --26.38 10.68 13.08
This scheme would at all times have an exposure of at least 65% of its investments in stocks of companies engaged in the commodity business. The scheme intends to take exposure only in the following four sectors:-oil & gas, metals, materials, agriculture. Its performance during downfall market so poor but after crossing this period its performance quite improving as it expand its equity portfolio because of this its risk is reduced and performance level is improved.
46 S.B.I MUTAL FUND
Magnum Balanced:
Current Stats & Profile Latest NAV 52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark 45.4 (06/10/09) 45.93 (01/10/09) 25.55 (09/03/09) Hybrid: Equity-oriented Open End October 1995 Above Average Above Average 463.97 (30/09/09) Crisil Balanced
Performance
Trailing Returns As on 06 Oct 2009 Fund Year to Date 56.34 1-Month 5.14 3-Month 14.79 1-Year 39.82 3-Year 12.03 5-Year 25.04 Return Since Launch 18.52 Returns upto 1 year are absolute and over 1 year are annualised.
Category 48.37 4.72 14.11 33.72 9.74 18.40 --
Risk & Return
Returns and Risk Aggregates
Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade Above Average Above Average
Modern Portfolio Stat R-Squared Alpha Beta 0.96 2.13 1.09
Volatility Measures Mean Standard Deviation Sharpe Ratio 16.17 28.48 0.39
Best and Worst Performance
47 S.B.I MUTAL FUND
Best (Period) Month Quarter Year 58.63 (03/12/1999 - 04/01/2000) 130.50 (04/11/1999 - 03/02/2000) 268.77 (24/02/1999 - 24/02/2000)
Worst (Period) -41.61 (31/03/2000 - 02/05/2000) -48.28 (25/02/2000 - 26/05/2000) -63.06 (09/03/2000 - 09/03/2001)
Annual Returns 2008 Fund Return Rank In Category Category Average VR Balanced -44.66 26/32 -40.90 -39.76 2007 48.37 12/33 43.32 42.86 2006 33.93 6/28 27.05 28.85 2005 47.62 2/27 31.54 24.73 2004 34.33 1/26 16.57 6.98
Magnum balanced previous chequered track record not so better but it improved much. Despite fund manager Ritesh Sheth take step to expand its equity portfolio and manage its equity in a well diversified from without taking too much of risk. A typical characteristic of this fund is that its falls harder during market downturns. In Dec 2007, the equity allocation stood at 75.10%. In the recent bull rally to, It stood at 76% (June 2009) of course, the higher equity allocation helped it reap great returns in the recent bull rally (March 2009, 2009-June 30, 2009).
Magnum Multiplier plus:

Performance
Current Stats & Profile Latest NAV 68.14 (06/10/09)
48 S.B.I MUTAL FUND
52-Week High 52-Week Low Fund Category Type Launch Date Risk Grade Return Grade Net Assets (Cr) Benchmark
68.79 (01/10/09) 35.77 (02/12/08) Equity: Diversified Open End February 1993 Average Above Average 1,015.97 (30/09/09) BSE 100
Trailing Returns As on 06 Oct 2009 Fund Year to Date 70.69 1-Month 6.22 3-Month 19.15 1-Year 41.08 3-Year 12.98 5-Year 32.48 Return Since Launch 15.00 Returns upto 1 year are absolute and over 1 year are annualised.
Category 71.16 5.92 21.07 42.02 10.10 24.47 --
Risk & Return

Returns and Risk Aggregates Rating & Risk Fund Rating Fund Risk Grade Fund Return Grade
Average Above Average
Modern Portfolio Stat R-Squared 0.93 Alpha 1.86 Beta 0.92
Volatility Measures Mean Standard Deviation Sharpe Ratio
18.73 33.89 0.40
Best and Worst Performance
Best (Period) Month Quarter Year 55.17 (03/12/1999 - 04/01/2000) 93.84 (04/11/1999 - 03/02/2000) 254.95 (04/01/1999 - 04/01/2000)
Worst (Period) -43.52 (11/04/2000 - 12/05/2000) -60.58 (25/02/2000 - 26/05/2000) -71.62 (11/04/2000 - 12/04/2001)
49 S.B.I MUTAL FUND
.. As its objective to provide investors long term capital appreciation along with the liquidity of an open-ended scheme. The scheme will invest in a diversified portfolio of equities of high growth companies this fund is capable to reach it certain extent. As its return for the last 5 years are 58.08. In worst period its performance is average not fell below the its maintain level.
By evaluating performance and risk& return all of five equity scheme it is found that Magnum contra fund performing better than others.
As its return since launch is 28.53 while others have less than it like magnum taxgain 19.59, magnum comma 19.54, magnum balanced 18.52, magnum multiplier plus 15.00. Worst performance of magnum contra fund is better as its yearly worst performance value is -54.68(2007-2008) while magnum taxgain -74.61(2000-2001), magnum comma -60.69(2007-2008),magnum balanced -63.06(2000-2001), magnum multiplier plus-71.62(2000-2001). The return performance of all five schemes shown by the graph in which magnum contra fund return value is more than 25 while other has less than it.
50 S.B.I MUTAL FUND
Magnum contra fund awarded by 5 stars while others by 4 stars.
All these points make clear that magnum contra fund is performing better than others as its worst performance during recession time is better than others its value mention in point second and other details mentioned above tables. It is awarded by lipper award in 2009 and it is also awarded by five stars for their best performance. So magnum contra fund is one of the best fund for investment as its give highest return and minimum risk in comparison to others.
SECTION-C
51 S.B.I MUTAL FUND
CONCLUSION
1. Not so long ago a common investor when asked about investing would have pointed out to the Fixed Deposits that he holds with the bank, the deposits with the Post Office, the Government Bonds that he has invested in, and the basket of shares (if any) that he holds in his kitty. He was not aware of the alternate route to investment, that of Mutual Funds. Slowly and gradually with the opening up of international borders and privatization, people are getting informed about other avenues of investment, be it Mutual Funds or Insurance. 2. Gradually people in Indian are getting educated about Mutual Funds through the interplay of the AMCs and the Banks. Every day we see new forays into the mutual fund industry with the introduction of new schemes and the entry of new players. The investors are getting informed by the day. The present generation is though open to the idea of investing in a mutual fund, since they are very much aware of the global scenario. And its good to see the service class coming up with the investments. Thanks to the Systematic Investment Plans. India is observing this transition and very soon our investors would be displaying better investment habits than they had previously. 3. And as far as SBI MF is concerned the AMC is facing tough competition from the market. Especially from its nearest competitor Reliance. The strong point the company is enjoying is the good reputation and a well known brand in the minds of the investors. But the company needs to plan for the future in order to be ahead of its close competitors.
52 S.B.I MUTAL FUND
Suggestions
1) Better services SBI MF should lay emphasis on providing better services to the investors. Especially services with regard to dispatch of statements and repayment in case of repurchase should not be delayed. Any information with regard to changes in Mutual Fund investment should be properly and promptly communicated to the investors. The employees of the company also need to personally meet and follow up the private banks and nationalized brokers in order to speed up the turnover of the SBI MF and maintain long term relations with the brokers and agents. 2) Increasing awareness about Mutual Fund The organization should increase knowledge about Mutual fund among people through organizing various kinds of awareness programs and promotional activities. SBI MF can use its wide network for educating people about Mutual Fund. 3) Promotional activities SBI MF should undertake a planned promotional program on a wide scale to reach the potential investors and to induce them to invest in Mutual Fund. It should increase the advertisement about its various Mutual Fund schemes and their benefits through TV channels, Radio and hoardings etc. It would help the organization in attracting more investments. Moreover the company needs to supply these promotional material to different distributors on time. 4) Ensuring attractive return through continuous search for low risk and better Investment Avenue The organization should ensure attractive return to its investors through continuous search for low risk and better investment avenue. This can be achieved through appointment of qualified and experienced Fund Managers.
53 S.B.I MUTAL FUND
Limitations
There are many limitations in our Summer Internship Program. Some of these are as under:
1: As the recession is going on in the whole country and customers are worried to make
investment in fund & they are not in the mood to invest. This is one of the most important reasons that there is less attraction of customers towards Mutual funds.
2:
Some of the people interested to invest in mutual fund & are able to buy Mutual but they are unaware about procedure to invest in as they have less
funds
knowledge regarding this.
3:
As there is so much fluctuation in stock market the investors get confused at what
time they invest.
54 S.B.I MUTAL FUND
Questionnaire for Consumer Perception in Investment in Mutual Fund NameAgeMartial StatusNo of Dependents1. Do you save?
Yes No
2. What do you do with your savings?

................................................................................................................... ................
3. Current Value of your investment?

................................................................................................................... ................
4. Current investment portfolio? (Rank 1-5)

MF
Equity Trading
Fixed Deposit, Post Office Savings
Insurance (ULIP) Bank savings
55 S.B.I MUTAL FUND
5. Objective of your investment?

...................................................................................................................... .............
6. Time Horizon in which you have to achieve your financial goal ? How
long do you plan to invest your money? a. Under 2 yrs b. 2-5 yrs c. 6-10 yrs d. 11-15 yrs e. Over 15 yrs
7. What factors would you consider most important before choosing an

investment? a. How quickly i will be able to increase my wealth. b. The opportunity for steady growth. c. The amount of monthly income the investment will generate. d. The safety of my investment principal.
8. Most preferred form of investment?

ULIP Bank savings MF Equity Trading F.D, P.O
9. And Why?
................................................................................................................... ........... ................................................................................................................... ........... 56 S.B.I MUTAL FUND
10. What factors would you consider most important before choosing an investment?
a. How quickly i will be able to increase my wealth. b. The opportunity for steady growth. c. The amount of monthly income the investment will generate. d. The safety of my investment principal.
Investment Profile in Mutual Funds 1. Name of Mutual Fund:
2. Amount Invested:
3. Name of
Scheme:-....................................................................................................
4. Type of scheme (rank from 1-4) 1- most preferred, 4- least preferred

Debt Fund
Equity Fund
Balanced Fund
5. Objective of Investment (Rank 1-3)

Appreciation Tax Benefit Liquidity 57 S.B.I MUTAL FUND
SECTION-D
58 S.B.I MUTAL FUND
Bibliography
Websites
www.personalfinance.com www.sbimf.com www.statebankofindia.com www.mutualfundsindia.com www.amfiindia.com www.indiainfoline.com www.navindia.com www.equitymaster.com
Fact Sheets, Fund Statements and Web Sites of the various Fund Houses
59 S.B.I MUTAL FUND
60 S.B.I MUTAL FUND

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GRAPHIC ERA UNIVERSITY, DEHRADUN

Bachelor of Business Administration (B.B.A)

FACULTY OF GRAPHIC ERA

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OVERVIEW OF THE INDUSTRY AS WHOLE

Phase 1- 1964=87(Unit Trust of India)

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Phase 2- 1987=1993(Entry of Public Sectors Funds)

Phase 3- 1993=1996(Emergence of Private Funds)

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Phase 4- 1996(SEBI Regulation for Mutual Funds)

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Indian Private Sector Funds

JV with Foreign Funds

Profile of State Bank of India Mutual Fund

SWOT ANALYSIS OF SBI MUTUAL FUND

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WORKING OF MUTUAL FUND

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ORGANISATIONAL STRUCTURE OF MUTUAL FUND

Managed by the board of trustee

Trustee (For e.g. SBI MF)

Asset Management Companies (e.g. MF AMC

Appoint by board of trustee, keep record and account of securities.

Registrar and Transfer agent

Provides the network for distribution of the schemes to the investors.

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GRAPHIC ERA UNIVERSITY, DEHRADUN

TYPES OF MUTUAL FUND

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MUTUAL FUND CLASSIFIED ON THE BASIS OF INVESTEMNT

MUTUAL FUND CLASSIFIED ON THE BASIS OF INVESTEMNT OBJECTIVES

Mutual Fund Classified On The Basis Of Risk Profile

ADVANTAGES OF MUTUAL FUNDS

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RISK ASSOCIATED IN MUTUAL FUNDS