Modified Project

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A PROJECT REPORT
ON
A STUDY OF SBI MUTUAL FUNDS
Submitted in partial fulfillment of the requirement for the award of

degree of Master of Business Administration (MBA) under M.S.
Patel Institute of Management Studies, University of Vadodra
SUBMITTED BY :RAJAT KOUL

ROLL NO. 49
BATCH : 2014-2016
UNDER THE GUIDANCE OF :SIR RAVNEET PAL SINGH
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ACKNOWLEDGEMENT
I hereby acknowledge SBI mutual funds providing the constant guidance for
encouragement which helped me a lot to be successful in my efforts. This formal
acknowledgement will hardly be sufficient to express my deep sense of gratitude to all
of them. It was a memorable experience while doing my summer training project on a
study of SBI Mutual Funds.
I would like to acknowledge my obligation to MR. RAVNEET PAL SINGH for

granting me the permissions for the assignment work, under whom I have done the
work and for his warm and constant guidance. I express my deep gratitude and sincere
thanks to him.
THANK YOU
RAJAT KOUL
ROLL NO. 49
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DECLARATION
This is to certify that Summer Training Report entitled A Study of SBI Mutual
Fund which is submitted by me in partial fulfillment of the requirement for the award
of degree Master of Business Administration (MBA), at M.S. PATEL INSTITUTE OF
MANAGEMENT STUDIES, UNIVERSITY OF VADODRA comprises only my
original work and due acknowledgement has been made in the text to all other material
used.
RAJAT KOUL
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EXECUTIVE SUMMARY
In few years Mutual Fund has emerged as a tool for ensuring ones financial well being.
Mutual Funds have not only contributed to the India growth story but have also helped families
tap into the success of Indian Industry. As information and awareness is rising more and more
people are enjoying the benefits of investing in mutual funds. The main reason the number of
retail mutual fund investors remains small is that nine in ten people with incomes in India do
not know that mutual funds exist. But once people are aware of mutual fund investment
opportunities, the number who decide to invest in mutual funds increases to as many as one in
five people. The trick for converting a person with no 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.. This Report will help to know about the investors
Preferences in Mutual Fund means Are they prefer any particular Asset Management Company
(AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or
Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This
Project as a whole can be divided into two parts.
The first part gives an insight about Mutual Fund and its various aspects, the Company Profile,
Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual
Fund and its basics through the Project. The second part of the Project consists of data and its
analysis collected through survey done on 50 people. For the collection of Primary data I made
a questionnaire and surveyed of 50 people. I have also taken interview of many People those
who were coming at the SBI Branch where I done my Project. The data collected has been well
organized and presented. I hope the research findings and conclusion will be of use.
CONTENTS
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Acknowledgement
Declaration
Executive Summary
Chapter - 1
INTRODUCTION
Chapter - 2
COMPANY PROFILE
29
Chapter - 3
SCHEMES OF SBI
30
Chapter- 4
REQUIRED
Chapter-5
ESSENTIAL DOCUMENTS
43
RESEARCH AND METHODOLOGY
46
Chapter-6
INTERPRETATION
DATA ANALYSIS AND

48
Chapter 7
RECOMMENDATIONS
SUGGESTIONS AND
57
Chapter-8
FINDINGS AND CONCULISION
58
ANNEXURE
59
QUESTIONNAIRE
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58
ANNEXURE
QUESTIONNAIRE
59
BIBLIOGRAPHY
52
INTRODUCTION TO MUTUAL FUND

What is a Mutual fund?
Mutual fund is an investment company that pools money from shareholders and invests in a variety
of securities, such as stocks, bonds and money market instruments. Most open-end Mutual funds
stand ready to buy back (redeem) its shares at their current net asset value, which depends on the
total market value of the fund's investment portfolio at the time of redemption. Most open-end
Mutual funds continuously offer new shares to investors. Also known as an open-end investment
company, to differentiate it from a closed-end investment company. Mutual funds invest pooled cash
of many investors to meet the fund's stated investment objective. Mutual funds stand ready to sell
and redeem their shares at any time at the fund's current net
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asset value: total fund assets divided by shares outstanding.
In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the
investors and investing funds in securities in accordance with objectives as disclosed in offer
document. Investments in securities are spread across a wide cross-section of industries and
sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not
move in the same direction in the same proportion at the same time. Mutual fund issues units
to the investors in accordance with quantum of money invested by them. Investors of Mutual
funds are known as unit holders. The profits or losses are shared by the investors in proportion
to their investments. The Mutual funds normally come out with a number of schemes with
different investment objectives which are launched from time to time. In India, A Mutual fund
is required to be registered with Securities and Exchange Board of India (SEBI) which
regulates securities markets before it can collect funds from the public. In Short, a Mutual fund
is a common pool of money in to which investors with common investment objective place
their contributions that are to be invested in accordance with the stated investment objective of
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the scheme. The investment manager would invest the money collected from the investor in to
assets that are defined/ permitted by the stated objective of the scheme. For example, an equity
fund would invest equity and equity related instruments and a debt fund would invest in bonds,
debentures, gilts etc. Mutual fund is a 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.
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is invested by the fund manager in different types of
securities depending upon the objective of the scheme. These could range from shares to
debentures to money market instruments. The income earned in these investments and the
capital appreciation realized by the scheme is shared by its unit holders in proportion to the
number of units owned by them. Thus a Mutual Fund is the most suitable investment for the
common man as it offers an opportunity to invest in a diversified, professionally managed
portfolio at a relatively low cost. Anybody with an invest able surplus of a few thousand rupees
can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and
strategy.
A mutual fund is the ideal investment vehicle for todays complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real estate,
derivatives and other assets have become mature and information driven. Price changes in these
assets are driven by global events occurring in faraway places. A typical individual is unlikely
to have the knowledge, skills, inclination and time to keep track of events, understand their
implications and act speedily.
A mutual fund is answer to all these situations. It appoints professionally qualified and
experienced staff that manages each of these functions on a fulltime basis. The large pool of
money collected in the fund allows it to hire such staff at a very low cost to each investor. In
fact, the mutual fund vehicle exploits economies of scale in all three areas research,
investment and transaction processing.
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A draft offer document is to be prepared at the time of launching the fund. Typically, it pre
specifies the investment objective of the fund, the risk associated, the cost involved in the
process and the broad rules for entry into and exit from the fund and other areas of operation. In
India, as
in most countries, these sponsors need approval from a regulator, SEBI in our case. SEBI looks
at track records of the sponsor and its financial strength in granting approval to the fund for
commencing operations.
A sponsor then hires an asset management company to invest the funds according to the
investment objective. It also hires another entity to be the custodian of the assets of the fund
and perhaps a third one to handle registry work for the unit holders of the fund.In the Indian
context, the sponsors promote the Asset Management Company also,in which it holds a
majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management
Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset
Management Company Ltd., which has floated different mutual funds schemes and also acts as
an asset manager for the funds collected under the schemes.
As per SEBI regulations, mutual funds can offer guaranteed returns for a maximum period of
one year. In case returns are guaranteed, the name of the guarantor and how the guarantee
would be honored is required to be disclosed in the offer document.
Investments in securities are spread across a wide cross-section of industries and sectors and
thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the
same direction in the same proportion at the same time. Mutual fund issues units to the
investors in accordance with quantum of money invested by them. Investors of mutual funds
are known as unit holders.
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THE CONCEPT OF MUTUAL FUND IN DETAIL
A mutual fund uses the money collected from investors to buy those assets which are
specifically permitted by its stated investment objective. Thus, an equity fund would
buy equity assets ordinary shares, preference shares, warrants etc. A bond fund would
buy debt instruments such as debentures, bonds or government securities. It is these
assets which are owned by the investors in the same proportion as their contribution
bears to the total contributions of all investors put together.
Any change in the value of the investments made into capital market instruments (such
as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV
is defined as the market value of the Mutual Fund scheme's assets net of its liabilities.
NAV of a scheme is calculated by dividing the market value of scheme's assets by the
total number of units issued to the investors.
A Mutual Fund is an investment tool that allows small investors access to a welldiversified portfolio of equities, bonds and other securities. Each shareholder
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participates in the gain or loss of the fund. Units are issued and can be redeemed as
needed. The funds Net Asset value (NAV) is determined each day.
When an investor subscribes to a mutual fund, he or she buys a part of the assets or the
pool of funds that are outstanding at that time. It is no different from buying shares
of joint stock Company, in which case the purchase makes the investor a part owner of
the company and its assets. However, whether the investor gets fund shares or units is
only a matter of legal distinction.
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A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them. Thus Mutual fund is 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.
MUTUAL FUND OPERATION FLOW CHART
From the above chart , it can be observed that how the money from the investors flow
and they get returns out of it. With a small amount of fund, investors pool their money
with the funds managers. Taking into consideration the market strategy the funds
managers invest this pool of money into reliable securities. With ups and downs in
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market returns are generated and they are passed on to the investors. The above cycle
should be very clear and also effective.
The fund manager while investing on behalf of investors takes into consideration various
factors like time, risk, return, etc. so that he can make proper investment decision.
ADVANTAGES AND DISADVANTAGES OF MUTUALFUNDS :

ADVANTAGES OF MUTUAL FUND
Professional Management.
The major advantage of investing in a mutual fund is that you get a professional money manager to
manage your investments for a small fee. You can leave the investment decisions to him and only
have to monitor the performance of the fund at regular intervals.
Diversification.
Considered the essential tool in risk management, mutual funds make it possible for even small
investors to diversify their portfolio. A mutual fund can effectively diversify its portfolio because of
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the large corpus. However, a small investor cannot have a well-diversified portfolio because it calls
for large investment. For example, a modest portfolio of 10 bluechip stocks calls for a few a few
thousands.
Convenient Administration.
Mutual funds offer tailor-made solutions like systematic investment plans and systematic withdrawal
plans to investors, which is very convenient to investors. Investors also do not have to worry about
investment decisions, they do not have to deal with brokerage or depository, etc. for buying or
selling of securities. Mutual funds also offer specialized schemes like retirement plans, childrens
plans, industry specific schemes, etc. to suit personal preference of investors. These schemes also
help small investors with asset allocation of their corpus. It also saves a lot of paper work.
Costs Effectiveness
A small investor will find that the mutual fund route is a cost-effective method (the AMC fee is
normally 2.5%) and it also saves a lot of transaction cost as mutual funds get concession from
brokerages. Also, the investor gets the service of a financial professional for a very small fee. If he
were to seek a financial advisor's help directly, he will end up paying significantly more for
investment advice. Also, he will need to have a sizeable corpus to offer for investment management
to be eligible for an investment advisers services.
Liquidity
You can liquidate your investments within 3 to 5 working days (mutual funds dispatch redemption
cheques speedily and also offer direct credit facility into your bank account i.e. Electronic Clearing
Services).
Transparency
Mutual funds offer daily NAVs of schemes, which help you to monitor your investments on a regular
basis. They also send quarterly newsletters, which give details of the portfolio, performance of
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schemes against various benchmarks, etc. They are also well regulated and Sebi monitors their
actions closely.
Tax benefits
You do not have to pay any taxes on dividends issued by mutual funds. You also have the advantage
of capital gains taxation. Tax-saving schemes and pension schemes give you the added advantage of
benefits under section 88.
Affordability
Mutual funds allow you to invest small sums. For instance, if you want to buy a portfolio of
blue chips of modest size, you should at least have a few lakhs of rupees. A mutual fund gives
you the same portfolio for meager investment of Rs.1,000-5,000. A mutual fund can do that
because it collects money from many people and it has a large corpus.
DISADVANTAGES OF MUTUAL FUNDS:
Professional Management
Did you notice how we qualified the advantage of professional management with the word
"theoretically"? Many investors debate over whether or not the so-called professionals are any better
than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses
money, the manager still takes his/her cut. We'll talk about this in detail in a later section.
Cost
Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The Mutual
fund industry is masterful at burying costs under layers of jargon. These costs are so complicated
that in this tutorial we have devoted an entire section to the subject.
Dilution
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It's possible to have too much diversification (this is explained in our article entitled "Are You OverDiversified?"). Because funds have small holdings in so many different companies, high returns
from a few investments often don't make much difference on the overall return. Dilution is also the
result of a successful fund getting too big. When money pours into funds that have had strong
success, the manager often has trouble finding a good investment for all the new money.
Taxes
When making decisions about your money, fund managers don't consider your personal tax situation.
For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how
profitable the individual is from the sale. It might have been more advantageous for the individual to
defer the capital gains liability.
Equity funds, if selected in the right manner and in the right proportion, have the ability to play an
important role in achieving most long-term objectives of investors in different segments. While the
selection process becomes much easier if you get advice from professionals, it is equally important
to know certain aspects of equity investing yourself to do justice to your hard earned money.
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CATEGORIES OF MUTUAL FUND:
TYPES OF MUTUAL FUND SCHEMES
1. BY STRUCTURE
Open Ended Schemes.
Close Ended Schemes.
Interval Schemes.
2. BY INVESTMENT OBJECTIVE
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Growth Schemes.
Income Schemes.
Balanced Schemes.
3. OTHER SCHEMES
1.
Tax Saving Schemes.
Special Schemes.
Index Schemes.
Sector Specific Schemes.
OPEN ENDED SCHEMES
The units offered by these schemes are available for sale and repurchase on any business day at NAV
based prices. Hence, the unit capital of the schemes keeps changing each day. Such schemes thus
offer very high liquidity to investors and are becoming increasingly popular in India. Please note that
an open-ended fund is NOT obliged to keep selling/issuing new units at all times, and may stop
issuing further subscription to new investors. On the other hand, an open-ended fund rarely denies to
its investor the facility to redeem existing units.
2.
CLOSED ENDED SCHEMES
The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of
units. These schemes are launched with an initial public offer (IPO) with a stated maturity period
after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy or
sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit capital
in closed-ended schemes usually remains unchanged. After an initial closed period, the scheme may
offer direct repurchase facility to the investors. Closed-ended schemes are usually more illiquid as
compared to open-ended schemes and hence trade at a discount to the NAV. This discount tends
towards the NAV closer to the maturity date of the scheme.
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3.
INTERVAL SCHEMES
These schemes combine the features of open-ended and closed-ended schemes. They may be traded
on the stock exchange or may be open for sale or redemption during pre-determined intervals at
NAV based prices.
4.
GROWTH SCHEMES
These schemes, also commonly called Equity Schemes, seek to invest a majority of their funds in
equities and a small portion in money market instruments. Such schemes have the potential to
deliver superior returns over the long term. However, because they invest in equities, these schemes
are exposed to fluctuations in value especially in the short term.
5.
INCOME SCHEMES
These schemes, also commonly called Debt Schemes, invest in debt securities such as corporate
bonds, debentures and government securities. The prices of these schemes tend to be more stable
compared with equity schemes and most of the returns to the investors are generated through
dividends or steady capital appreciation. These schemes are ideal for conservative investors or those
not in a position to take higher equity risks, such as retired individuals. However, as compared to the
money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they
have a higher credit risk.
6.
BALANCED SCHEMES
These schemes are commonly known as Hybrid schemes. These schemes invest in both equities as
well as debt. By investing in a mix of this nature, balanced schemes seek to attain the objective of
income and moderate capital appreciation and are ideal for investors with a conservative, long-term
orientation.
7. TAX SAVING SCHEMES
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Investors are being encouraged to invest in equity markets through Equity Linked Savings Scheme
(ELSS) by offering them a tax rebate. Units purchased cannot be assigned / transferred/ pledged /
redeemed / switched out until completion of 3 years from the date of allotment of the respective
Units.
The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations, 1996
and the notifications issued by the Ministry of Finance (Department of Economic Affairs),
Government of India regarding ELSS.
Subject to such conditions and limitations, as prescribed under Section 88 of the Income-tax Act,
1961.
8.
INDEX SCHEMES
The primary purpose of an Index is to serve as a measure of the performance of the market as a
whole, or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate
the performance of mutual funds. Some investors are interested in investing in the market in general
rather than investing in any specific fund. Such investors are happy to receive the returns posted by
the markets. As it is not practical to invest in each and every stock in the market in proportion to its
size, these investors are comfortable investing in a fund that they believe is a good representative of
the entire market. Index Funds are launched and managed for such investors.
9.
SECTOR SPECIFIC SCHEMES.
Sector Specific Schemes generally invests money in some specified sectors for example: Real
Estate Specialized real estate funds would invest in real estates directly, or may fund real estate
developers or lend to them directly or buy shares of housing finance companies or may even buy
their securitized assets.
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SEBI REGISTERED MUTUAL FUNDS

1. FORTIS Mutual fund
2. Alliance Capital Mutual fund,
3. AIG Global Investment Group Mutual fund
4. Benchmark Mutual fund,
5. Baroda Pioneer Mutual fund
6. Birla Mutual fund
7. Bharti AXA Mutual fund
8. Canara Robeco Mutual fund
9. CRB Mutual fund (Suspended)
10. DBS Chola Mutual fund,
11. Deutsche Mutual fund
12. DSP Blackrock Mutual fund,
13. Edelweiss Mutual fund
14. Escorts Mutual fund,
15. Franklin Templeton Mutual fund
16. Fidelity Mutual fund
17. Goldman Sachs Mutual fund
18. HDFC Mutual fund,
19. HSBC Mutual fund
20. ICICI Securities Fund,
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21. IL & FS Mutual fund,
22. ING Mutual fund,
23. ICICI Prudential Mutual fund
24. IDFC Mutual fund,
25. JM Financial Mutual fund
26. JP Morgan Mutual fund
27. Kotak Mahindra Mutual fund,
29. LIC Mutual fund
31. Morgan Stanley Mutual fund
32. Mirae Asset Mutual fund
33. Principal Mutual fund
34. Quantum Mutual fund,
35. Reliance Mutual fund
36. Religare AEGON Mutual fund
37. Sahara Mutual fund,
38. SBI Mutual fund
39. Shriram Mutual fund
40. Sundaram BNP Paribas Mutual fund,
41. Taurus Mutual fund
42. Tata Mutual fund,
43. UTI Mutual fund
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INVESTMENT STRATEGIES
1. Systematic Investment Plan: under this a fixed sum is invested each month on a
fixed date of a month. Payment is made through post dated cheques or direct debit
facilities. The investor gets fewer units when the NAV is high and more units when
the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA)
2. Systematic Transfer Plan: under this an investor invest in debt oriented fund
and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme
of the same mutual fund.
3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual
fund then he can withdraw a fixed amount each month.
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WHY INVESTOR NEEDS MUTUAL FUND :Mutual funds offer benefits, which are too significant to miss out. Any investment has to be
judged on the yardstick of return, liquidity and safety. Convenience and tax efficiency are
the other benchmarks relevant in mutual fund investment. In the wonderful game of
financial safety and returns are the tows opposite goals and investors cannot be nearer to
both at the same time. The crux of mutual fund investing is averaging the risk.
Many investors possibly dont know that considering returns alone, many mutual funds
have outperformed a host of other investment products. Mutual funds have historically
delivered yields averaging between 9% to 25% over a medium to long time frame. The
duration is important because like wise, mutual funds return taste bitter with the passage of
time. Investors should be prepared to lock in their investments preferably for 3 years in an
income fund and 5 years in an equity funds. Liquid funds of course, generate returns even
in a short term.
MUTUAL FUND RISK:Mutual funds face risks based on the investments they hold. For example, a bond fund faces
interest rate risk and income risk. Bond values are inversely related to interest rates. If
interest rates go up, bond values will go down and vice versa. Bond income is also affected
by the changes in interest rates. Bond yields are directly related to interest rates falling as
interest rates fall and rising as interest rates.
Similarly, a sector stock fund is at risk that its price will decline due to developments in its
industry. A stock fund that invests across many industries is more sheltered from this risk
defined as industry risk.
Followings are glossary of some risks to consider when investing in mutual funds:-
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COUNTRY RISK :- The possibility that political events (a war, national election),
financial problems (rising inflation, government default), or natural disasters will
weaken a countrys economy and cause investments in that country to decline.
INCOME RISK :The possibility that political events (a war, national election), financial problems
(rising inflation, government default), or natural disasters will weaken a countrys
economy and cause investments in that country to decline.
MARKET RISK :The possibility that stock fund or bond fund prices overall will decline over short or
even extended periods. Stock and bond markets tend to move in cycles, with periods
when prices rise and other periods when prices fall.
GRAPH 1.3:- RISK RETURN REWRAD IN MUTUAL FUND
This graph shows risk and return impact on various mutual funds. There is a direct
relationship between risks and return, i.e. schemes with higher risk also have potential
to provide higher returns
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ABOUT SBI MUTUAL FUND
CORPORATE PROFILE
Our Identity
With 28 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd.
bring forward our expertise by consistently delivering value to our investors. We have a strong
and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. We are
a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund
management companies.
With our network of over 222 points of acceptance across India, we deliver value and nurture the
trust of our vast and varied family of investors.
Excellence has no substitute. And to ensure excellence right from the first stage of product
development to the post-investment stage, we are ably guided by our philosophy of growth
through innovation and our stable investment policies. This dedication is what helps our
customers achieve their financial objectives.
Our Vision
To be the most preferred and the largest fund house for all asset classes, with a consistent track
record of excellent returns and best standards in customer service, product innovation,
technology and HR practices.
Our Services
Mutual Funds
Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment
option to the masses in the country. Working towards it, we developed innovative, need-specific
products and educated the investors about the added benefits of investing in capital markets via
Mutual Funds.
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Today, we have been actively managing our investor's assets not only through our investment
expertise in domestic mutual funds, but also offshore funds and portfolio management advisory
services for institutional investors.
This makes us one of the largest investment management firms in India, managing investment
mandates of over 5.4 million investors.
Portfolio Management and Advisory Services
SBI Funds Management has emerged as one of the largest player in India advising various
financial institutions, pension funds, and local and international asset management companies.
We have excelled by understanding our investor's requirements and terms of risk / return
expectations, based on which we suggest customized asset portfolio recommendations. We also
provide an integrated end-to-end customized asset management solution for institutions in terms
of advisory service, discretionary and non-discretionary portfolio management services.
Offshore Funds
SBI Funds Management has been successfully managing and advising India's dedicated offshore
funds since 1988. SBI Funds Management was the 1st bank sponsored asset management
company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with
an objective to provide our investors with opportunities for long-term growth in capital, through
well-researched investments in a diversified basket of stocks of Indian Companies.
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MANAGEMENT TEAM
Mr. Dinesh Kumar Khara
Mr. Philippe Batchevitch
MD & CEO
Deputy CEO
Mr. L. Pattabhiraman
Mr. Navneet Munot
Executive Director & Chief Operating

Officer
Executive Director & Chief Investment

Officer
Mr. R. S. Srinivas Jain
Mr. D. P. Singh
Executive Director & Chief Marketing

Officer (Strategy and International
Business)
Executive Director & Chief Marketing

Officer (Domestic Business)
Ms. Aparna Nirgude
Mr. Rakesh Kaushik
Chief Risk Officer
Senior Vice President (Accounts &

Administration)
Ms. Vinaya Datar
Mr. Rohidas Nakashe
CS & Compliance Officer
Head - Customer Service
BOARD OF DIRECTORS - AMC

Ms.Arundhati Bhattacharya
Mr. Dinesh Kumar Khara
Chairman and Associate Director
Managing Director & CEO
Mr. Shishir Joshipura
Mr. Vellur Gopalaraghavan Kannan
Independent Director
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Mrs. Madhu Dubhashi
Mr. Fathi Jerfel
Associate Director
Mr. Jashvant Raval
Mr. Philippe Batchevitch
Alternate Director to Mr. Jerfel
Mr. Om Prakash Gahrotra

Mr. Thierry Raymond Mequillet
Associate Director
Dr. Prafulla Agnihotri
DISTRIBUTION NETWORK
We had 30,500 AMFI certified Agents as on 31st March, 2014 as against 31,083 AMFI certified
Agents as on 31st March, 2013. The number of AMFI certified Agents came down as several
Agents did not renew their ARNs and New Agents enrolment also came down due to changed
regulatory environment making retail IFA model unviable. The number of AMFI certified
employees in State Bank Group, however, increased to 20,491 as on 31st March, 2014 from
20,166 as on 31st March, 2013. As on 31st March, 2014, SBI Mutual Fund had 29 Investor
Service Centres, 122 Investor Service Desks, 8 Investor Service Points and 1 Overseas Points of
presence.
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Schemes Of SBI Mutual Fund

A. Equity Schemes
B. Debt & Liquid Schemes
A. Equity Schemes SnapShot :

SBI BlueChip Fund
SBI Magnum Balance Fund
\SBI Magnum Global Fund
SBI Magnum MidCap Fund
SBI Magnum TaxGain Scheme
ASBI Contra Fund
SBI Magnum Multiplier Fund
SBI Magnum MultiCap Fund
SBI Magnum Comma Fund
SBI Emerging Businesses Fund
SBI FMCG Fund
SBI I.T Fund
SBI Small and Midcap Fund
SBI Gold Fund
4 Most Preferable Schemes :
SBI BlueChip Fund: (an open ended growth scheme)
P a g e | 33
Minimum investment: Rs 5000 & in multiples of Re 1

Additional Investement: Rs 1000 & in multiples of Re 1
Exit Load: For exit within 1 year from the date of allotment ---_1%
After 1 year from date of allotment : Nil
Plans Available : Regular & Direct
SIP : Monthly : a minimum Rs 1000 for minimum 6 months or
minimum Rs 500 for minimum 1 year
Quaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for
minimum 1 year
SBI Magnum Balance Fund: ( an Open ended Balanced Scheme)

P a g e | 34
Exit Load: For exit within 12 months from the date of allotment
---_1%
After 12 months from date of allotment : Nil
minimum 1 year
SBI Contra Fund: ( Open ended Equity fund)
P a g e | 35

Quaterly: a minimum Rs.1500 and in multiples of Re 1 thereafter for
minimum 1 year.
SBI Magnum Tax Gain Scheme: (Open ended Equity Linked

Savings Scheme)
Minimum investment: Rs 500 & in multiples of Rs 500
Additional Investement: Rs 500 & in multiples of Rs 500
Exit Load: NIL
SIP : Rs 500 and in multiples of Rs 500
SBI Magnum MultiCap Fund: (an Open Ended Growth Scheme)
P a g e | 36

Exit Load: NIL (w.e.f. September,01,2014
Quaterly: Minimum Rs 1500 and in multiples of Re1 thereafter for
minimum 1 year
SBI Small and MidCap Fund: (Open Ended Equity Scheme):
P a g e | 37

minimum 1 year
B. Debt & Liquid Schemes:

SBI Magnum Monthly Income Plan
SBI Magnum Income Fund
SBI Magnum Children Benefit Plan
SBI Ultra Short term Debt Fund
SBI Short term Debt Fund
SBI Savings Fund
SBI Dynamic Bond Fund
SBI Regular Savings Fund
SBI Corporate Bond Fund
SBI Magnum Gilt Fund-Short Term Plan
SBI Magnum Gilt Fund-Long Term Plan
SBI Inflation Indexed Bond Fund
Preferable Debt & Liquid Schemes:
SBI Short term Debt Fund: ( an Open ended income scheme)
P a g e | 38

Exit Load: For exit within 90 days from the date of allotment
---_0.25%
After 90 days from date of allotment : Nil
minimum 1 year
SBI Magnum Childerns benefit plan: (Open ended income scheme)

P a g e | 39
Exit Load:within 1 year 3% within 2 years 2%, within 3 years

-1% . above 3 years_ NIL
minimum 1 year
SBI Magnum Income Fund: (an open ended Debt Scheme) :

Exit Load: For exit within 1 year from the date of allotment ---_
For 10% of investment_ NIL
P a g e | 40
For remaining investment 1%

For exit after 1 year from the date of allotment NIL
minimum 1 year
SBI Savings Fund: (an Open ended Debt Fund)

Exit Load: within 3 business days from the date of allotment 0.10 %
For exit after 3 business days from the date of allotment NIL
P a g e | 41

minimum 1 year
SBI Regular Savings Fund: (Open ended income scheme)

P a g e | 42

minimum 1 year
SBI Corporate Bond Fund (An open ended debt fund)
Exit Load: For exit within 12 months from the date of allotment
---_3%
After 12 months within 24 months from date of allotment : 1.5%
For exit after 24 months but within 36 months from the date of
allotment 0.75%
For exit after 36 months from the date of allotment _ NIL
P a g e | 43

minimum 1 year
P a g e | 44
Essential Documents Required for Mutual Funds:

Application Form
This is the most basic requirement. If you wish to start a systematic
investment plan (SIP), you need to fill in two forms. One to open an
account with the mutual fund and the other to specify your SIP details
such as frequency, monthly instalment amount, and so on.
If you are investing afresh in a mutual fund (MF) scheme, both the
above mentioned forms are
necessary.
KYC And PAN Card
Effective 1 January, know-your-client
(KYC) norms have been made
mandatory for everyone who wishes
to invest in an MF. All you need to do
is to submit your KYC acknowledgement along with your MF
investment form. You no longer need to submit copies of your
Permanent Account Number (PAN) card since your KYC-compliance
proves that you already have PAN. Before KYC was made mandatory
for all, you needed to submit your PAN card copy if your investment
amount was Rs 50,000 (KYCs minimal threshold limit at that time) or
below.
Visit www.cvlindia.com and click on Inquiry on KYC. A small
window will pop up on your screen that will ask for your PAN card
number. Fill it up and submit. If your KYC is approved, you will get a
notification on the screen saying so. You need to take a printout of it as
proof.
P a g e | 45
Blank Cheque
Typically, a blank cancelled cheque is not mandatory when you start
your SIP these days. But if you wish to start an SIP straightaway without
investing the minimal amount, its best that you give a cancelled blank
cheque to facilitate an electronic clearing system (ECS) mandate. This is
to ensure that your cheque details like the magnetic ink character
recognition (MICR) code, Indian Financial System Code (IFSC), apart
from your account number and others are appropriately captured. This is
required for opening an SIP. However, if you are investing an amount by
giving a cheque and wish to start an SIP starting from the next month,
your first investment cheque is enough, even if you give both the forms
together.
For Minors
If you wish to invest in the name of a minor, you need to fill in a thirdparty declaration form. Only parents are allowed to invest on behalf of
their children. Documents that establish the parents relationship with
the child should be submitted; for example, a passport. If the child has
no parents in case of an eventuality, then a court-appointed guardian can
invest if necessary documentary proof is submitted to establish the
relationship between the minor child and the guardian.
Once the KYC is formed,a folio no is generated to the customer.
P a g e | 46
OBJECTIVES AND SCOPE OF THE STUDY

OBJECTIVES OF THE STUDY
1. The analyze the awareness level of investors of mutual funds.
2. An attempt has been made to measure various variables playing in the minds of investors in
terms of safety, liquidity, service, returns, and tax saving.
3. To get insight knowledge about mutual funds
4. To know the awareness of mutual funds among different groups of investors.
5. To find out the Preference of the investors for Asset Management of company.
6. To know why one has invested in SBI Mutual Funds.
7. To find out the most preference channel.
8. To find out what should do to boost Mutual Fund Industry.
9.
To study the general criteria for investing and applying in Mutual Funds.
SCOPE OF THE STUDY

A big boom has been witnessed in Mutual Fund Industry in resent times. A large
number of new players have entered the market and trying to gain market share in this
rapidly improving market.
The study will help to know the preferences of the customers, which company,
portfolio, mode of investment, option for getting return and so on they prefer. This
project report may help the company to make further planning and strategy.
P a g e | 47
RESEARCH METHODOLOGY
My research project has a specified framework for collecting the data in an effective manner.
Such framework is called RESEARCH DESIGN. The research process which was followed by
me consisted following steps.
A. PROBLEM:
The problem at hand was to study and measure the awareness level of people regarding mutual
funds in the city.
B. DEVELOPING THE RESEARCH PLAN :
A descriptive Research Design method was applied for the project.

The development of Research Plan has the following Steps:
1. DATA SOURCES: Two types of data were taken into consideration i.e. Secondary data &
primary data. My major emphasis was on gathering the primary data. The secondary data has
been used to make things more clear.
(i)
Primary Data: Direct collection of data from the source of information, technology
including personal interviewing, survey etc.
(ii)
Secondary Data: Indirect collection of data from sources containing past or recent past
information like Banks Brochures, Annual publications, Books, Fact sheets of mutual
funds, Newspaper & Magazines etc.
2. RESEARCH INSTRUMENT
A questionnaire was constructed for my survey. Questionnaire consisting of a set of questions
made to be filled by various respondents.
3. SAMPLING PLAN
The sampling plan calls for three decisions.
P a g e | 48
a) Sampling Unit: I have completed my survey in Jammu City, J&K
b) Sample Size: The sample consisted of 50 respondents. The sample was drawn from walk
in customers of SBI MUTUAL FUND. The selection of the respondents was done on the
basis of simple random sampling.
c) Contact Methods
I have contacted the respondents through personal communication.
C. COLLECTING THE INFORMATION
After this, I have collected the information from the respondents with the help of
questionnaire.
D. ANALYZE THE INFORMATION
The next step is to extract the pertinent findings from the collected data. I have tabulated the
collected data & developed frequency distributions. Thus the whole data was grouped aspect
wise and was presented in tabular form. Thus, frequencies & percentages were prepared to
render impact of the study.
E. PRESENTATIONS OF FINDINGS
This was the last step of the survey.
DATA ANALYSIS & INTERPRETATION
P a g e | 49
1) Do you invest your saving in mutual fund? (Investment Willingness)
Investment
Number Of Respondents
Yes
34
No
16
Total
50
We observe that 68% of all the respondents invest in mutual fund. We have got 32% of
our total respondents who do not invest in any mutual fund at all.
2) Do you have complete information about mutual fund? (Awareness Level)

Information
Yes
28
No
12
Not Much
10
Total
50
20
Yes
No
24
56
Not Much
We observe that 56% of all the respondents have complete information of mutual funds.
We have got 24% of our total respondents who do not have complete information of mutual fund
at all and 20% of our total respondents have some information of mutual fund.
P a g e | 50
3) Are you an investor, who is interested in getting good deduction from tax?
(Interested in Tax Deduction)
Information
Yes
45
No
Total
50
11
Yes
No
89
We observe that 89% of all the respondents are interested in getting good deduction from
tax. We have got 11% of our total respondents who are not interested in getting good deduction
from tax at all.
4) Do you know mutual fund is a good instrument of tax saving? (Awareness for Tax
saving)
Investment
Yes
38
No
12
Total
50
P a g e | 51
24
Yes
76
No
We observe that 76% of all the respondents knows mutual fund is a good instrument of
tax saving. We have got 24% of our total respondents who are mutual fund is a good instrument
of tax saving.
5) Among which of the following income group you fall? (Income Group)
Income group
Upto 1,00,000
12
1,00,001-2,00,000
30
2,00,001-3,00,000
3,00,001 & more
TOTAL
50
P a g e | 52
60
50
40
30
20
10
0
We observe that 25% of all the respondents fall under income group of less than
1,00,000. We have got 60% of our total respondents fall under income group of 1,00,0012,00,000 and 10% of our respondents fall under income group of 2,00,001-3,00,000 while 5% of
our respondents fall under income group of 3,00,000 & more.
6) Which are the investments you hold at present? (Investment Holding)

Investment
Equity market
10
Mutual fund
27
Govt. bond
Real estate
Bank FD
24
Post office
13
Insurance
22
P a g e | 53
(in terms of percentage)
60
50
40
30
20
10
0
We observed that many respondents invest in more than one instrument of saving. The
people are not channelizing all of their savings in just one Investment Avenue.
7) What is the Basic purpose of your investments? (Purpose for Investment)

Investment purpose
High return
10
Tax benefit
Saving
22
Wealth creation
Risk diversification
Total
50
P a g e | 54
45
40
35
30
25
20
15
10
5
0
(graph shown in terms of percentage)

We observe that 20% of all the respondents Invest for the purpose of high return, 18%
Invest for the purpose of tax benefit, 45% Invest for the purpose of saving, 10% Invest for the
purpose of wealth creation , 7% Invest for the purpose of risk diversification.
8) What returns do you receive at present from all your investments? (Returns from
Investment)
Investment Returns
Less than 5%
5%-10%
32
10-15%
10
15%-20%
Greater than 20%
Total
50
P a g e | 55
Less than 5%
5%-10%
10-15%
15%-20%
Greater than 20%
(pie chart shown in terms of percentage)

We observe that 3% of all the respondents get less than 5%, 65% of all the respondents get
between 5%-10%, 20% of all the respondents get between 10%-15%, 7% of all the respondents
get between 15%-20% and 5% of all the respondents get more than 20%.
9) Which types of funds would you like to prefer for your investment in mutual
fund? (Fund Preference)
Investment preference
Equity fund
32
Debt fund
Balanced fund
12
Total
50
P a g e | 56
24
11
Equity fund
65
Debt fund
Balanced fund
(pie chart shown in terms of percentage)

We observe that 64% of all the respondents prefer investment in equity fund, 12% of all
the respondents prefer investment in Debt fund, and remaining 24% of all the respondents prefer
investment in balanced fund.
10) Give your preference for tax saving plan of SBI Mutual Funds ? (SBI Tax saving
Plan)
Investment Preference for

SBI
Most preferred
Favorably preferred
Preferred
22
Least preferred
Not preferred
Total
50
P a g e | 57
45
40
35
30
25
20
15
10
5
0
(graph shown in terms of percentage)

We have observed that a large number of investors prefer SBI tax plan.
P a g e | 58
RECOMMENDATIONS AND SUGGESTIONS

Customer education of the salaried class individuals is far below standard. Thus Asset
Management Companys need to create awareness so that the salaried class people become
the prospective customer of the future.
The target market of salaried class individual has a lot of scope to gain business, as they
are more fascinated to Mutual Funds than the self employed.
Schemes with high equity level need to be targeted towards self employed and
professionals as they require high returns and are ready to bear risk.
Salary class individuals are risk averse and thus they must be assured of the advantage of
risk diversification in Mutual Funds.

There should be given more time & concentration on the Tier-3 distributors.
The resolution of the queries should be fast enough to satisfy the distributors
Time to time presentation/training classes about the products should be there.
There should be more number of Relationship Managers in different Regions because one
RM can handle a maximum of 125 distributors efficiently and also to cover untapped
market.
Regular session should be organized on the handling of the india infoline software so as to
resolve the account statement problem.
All the persons who have cleared the AMFI exam should be empanelled with Mutual Fund
so as to be largest distributor base.
CONCLUSIONS
These were my objectives of my project
P a g e | 59
To get an insight knowledge about mutual funds

Understanding the different ratios & portfolios so as to tell the distributors about these
terms, by this, managing the relationship with the distributors
To know the mutual funds performance levels in the present market
To know the awareness of mutual funds among different groups of investors.
To evaluate consumer feedback on mutual funds
Finding out ways and means to improve on the services by SBI Mutual Funds.
I satisfied my objectives of the project in the following manner
1. Complete insight knowledge about the mutual funds were mentioned in the project
2. Different ratios with complete graphical representation were explained in the project
3. To know the performance levels of the project I have done the comparative analysis of the
project using the four major leading mutual fund companies using different parameters.
4. To know the consumer awareness I have done the survey using different customers so as to
analyze the views about the mutual funds and perception of the customer in the present scenario.
4. To evaluate the ways and means to improve SBI Mutual Funds. I have mentioned various
suggestions that are listed above
QUESTIONNAIRE
P a g e | 60
Dear Sir/Madam,
I, Rajat Koul, being the student of M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES,
UNIVERSITY OF VADODRA pursuing MBA, doing an internship on a Project with title A
STUDY OF SBI MUTUAL FUNDS.
I therefore request you to kindly fill the questionnaire below that would enable me to complete
the said project and I assure you that the data generated shall be kept confidential.
Name:
Age:
Below 20
21-30
31-44
45 above
Gender:
Male
Female
Place of Domicile:
Rural
Urban
Highest Educational Qualification:

Matriculate
Higher Secondary
Graduate
Post Graduate
Q.1. Do you invest your saving in mutual fund? (Investment Willingness)

YES
NO
Q.2. Do you have complete information about mutual fund? (Awareness Level)
YES
NO
NOT MUCH
Q.3. Are you an investor, who is interested in getting good deduction from tax? (Interested
in Tax Deduction)
P a g e | 61
YES
NO
Q.4. Do you know mutual fund is a good instrument of tax saving? (Awareness for Tax
saving)
YES
NO
Q.5. Among which of the following income group you fall? (Income Group)
YES
NO
Q.6 Which are the investments you hold at present? (Investment Holding)
Equity Market
Mutual Funds
Govt. Bonds
Bank FDs
Post Office
Insurance
Real Estate
Q. 7. What is the Basic purpose of your investments? (Purpose for Investment)

High Return
Wealth Creation
Tax Benefit
Savings
Risk Diversification
Q. 8. What returns do you receive at present from all your investments? (Returns from
Investment)
Less than 5%
5%-10%
15%-20%
Greater than 20%
10%-15%
Q.9. Which types of funds would you like to prefer for your investment in mutual
fund? (Fund Preference)
P a g e | 62
Equity Fund
Debt Fund
Balanced Fund
Q.10. Give your preference for tax saving plan of SBI Mutual Funds ? (SBI Tax saving Plan)
Mostly Preferred
Favourably Preferred
Least Preferred
Not Preferred
Preferred
P a g e | 63
BIBLIOGRAPHY
Books
Handbook of SBI Mutual Funds
Websites
https://en.wikipedia.org/wiki/Mutual_fund
https://www.sbimf.com/AboutUs.aspx
https://www.sbimf.com/Downloads/Product_Brochures.aspx
http://www.moneycontrol.com/mutual-funds/amc-details/SB
http://profit.ndtv.com/mutual-funds/sbimutualfund-amc-details_sbi
http://www.indiainfoline.com/mutualfunds/fundhouses/sbi-mutual-fund/47408592
Journals
Journal of Business Management, Commerce & Research Acomparitive study of

SBI Mutual Funds & Unit Trust of India
(http://www.jbmcr.org/pdf/JBMCR-DEC-13-04.pdf)

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Page |1

Submitted in partial fulfillment of the requirement for the award of

SUBMITTED BY :RAJAT KOUL

UNDER THE GUIDANCE OF :SIR RAVNEET PAL SINGH

I would like to acknowledge my obligation to MR. RAVNEET PAL SINGH for

DATA ANALYSIS AND

FINDINGS AND CONCULISION

INTRODUCTION TO MUTUAL FUND

THE CONCEPT OF MUTUAL FUND IN DETAIL

MUTUAL FUND OPERATION FLOW CHART

ADVANTAGES AND DISADVANTAGES OF MUTUALFUNDS :

DISADVANTAGES OF MUTUAL FUNDS:

CATEGORIES OF MUTUAL FUND:

TYPES OF MUTUAL FUND SCHEMES

Open Ended Schemes.

Close Ended Schemes.

Tax Saving Schemes.

Sector Specific Schemes.

OPEN ENDED SCHEMES

CLOSED ENDED SCHEMES

7. TAX SAVING SCHEMES

SECTOR SPECIFIC SCHEMES.

SEBI REGISTERED MUTUAL FUNDS

GRAPH 1.3:- RISK RETURN REWRAD IN MUTUAL FUND

ABOUT SBI MUTUAL FUND

Mr. Philippe Batchevitch

Mr. Navneet Munot

Executive Director & Chief Operating

Executive Director & Chief Investment

Mr. R. S. Srinivas Jain

Executive Director & Chief Marketing

Executive Director & Chief Marketing

Ms. Aparna Nirgude

Mr. Rakesh Kaushik

Chief Risk Officer

Senior Vice President (Accounts &

Ms. Vinaya Datar

Mr. Rohidas Nakashe

CS & Compliance Officer

Head - Customer Service

BOARD OF DIRECTORS - AMC

Mr. Dinesh Kumar Khara

Chairman and Associate Director

Managing Director & CEO

Mr. Shishir Joshipura

Mr. Vellur Gopalaraghavan Kannan

Mr. Fathi Jerfel

Mr. Jashvant Raval

Mr. Philippe Batchevitch

Alternate Director to Mr. Jerfel

Mr. Om Prakash Gahrotra

Schemes Of SBI Mutual Fund

A. Equity Schemes SnapShot :

Minimum investment: Rs 5000 & in multiples of Re 1

SBI Magnum Balance Fund: ( an Open ended Balanced Scheme)

SIP : Monthly : a minimum Rs 1000 for minimum 6 months or

SBI Magnum Tax Gain Scheme: (Open ended Equity Linked

SBI Magnum MultiCap Fund: (an Open Ended Growth Scheme)

Minimum investment: Rs 1000 & in multiples of Re 1

Plans Available : Regular & Direct

B. Debt & Liquid Schemes:

Minimum investment: Rs 5000 & in multiples of Re 1

SBI Magnum Childerns benefit plan: (Open ended income scheme)

Exit Load:within 1 year 3% within 2 years 2%, within 3 years