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The project Market Research on Various Schemes of SBI Mutual Fund

ACKONWLEDGEMENT

I take this opportunity to express my heartfelt gratitude to all people who have extended their assistance and provide me information during the tenure of the project and I am greatly indebted to them for guiding and support me throughout the project and sparing some of their valuable time.

I would like to express my deep gratitude to my project guide _______________________for their expert guidance and support throughout the project. This project report could not have been completed without his the guidance.

I would like to thank Mr. Khanna, ( Marketing Manager, SBI mutual Fund ) for providing me necessary information about mutual fund industry and SBI mutual fund.

I express my sincere thanks to my friend and family without whose support this project would not have been possible.

PREFACE

In todays world of globalization, opportunities are plenty and they keep knocking at our doors all the time. One should be bold, ready to take risk and seek the opportunities and put them into action.

The world of success is always open to the dynamic, confident and courageous youth. All we need is positive attitude and forceful personality to breathe the myth of bad block. Adequate business knowledge of how to snide is major attributes. All these qualities have nearly become compulsory, especially for the students of management who want to achieve success.

For achieving all these qualities theoretical knowledge is not enough. It provides only a base. So opportunities for practical studies are provided along with theoretical concepts. It definitely helps us the students to face the world with courage, confidence and positive attitude. Keeping all these things in mind course has introduced practical studies which bridges the gap between theoretical knowledge and practical training.

I wish to mention that I have tried to keep the simple language and straight presentation of the entire matter as evidenced by classification of topics into parts and section. An attempt has been made throughout the report to clarify various business and management concepts with the help of collective information.

TABLE OF CONTENT
Chapter Content Page No.

Executive Summary 1 2 Research Methodology Introduction of Mutual Fund An Overview History of mutual fund Structure of Mutual Fund Benefit of investing through mutual fund Disadvantages of mutual fund Types of mutual fund scheme Regulatory Authority Current scenario of Mutual fund Industry Corporate Profile of SBI Fund Management Pvt. Ltd. Services Schemes 4 5 6 7 8 Data Collection and Interpretation Findings Recommendation Bibliography Annexure

Executive Summary

Mutual fund now represents perhaps the most appropriate investment opportunity for most small investors. India is one of the countries that concentrate towards its share market

& investment sector. Because a countries growth is totally dependent upon its educated people. So with the changing economical environment its effect can be easily being seen in this field also.

Today when the investors have lot many options for investing their savings, Mutual fund is one of the options where in the investor can invest their savings. Many Asset Management Company (AMCs) have come out with various types of funds that caters the investment need of investing the savings on the basis of the customers risk appetite towards the investment, age factor, time horizon and various other factors. With the help of this study, effort will be put on to study various schemes offered by SBI mutual fund, what are customers expectation from SBI and factors affecting customers choice in investing mutual fund.

The project Market Research on Various Schemes of SBI Mutual Fund analyses the future market and assists in understanding upcoming competition specifies about the future numbers, characteristics, and trends in markets and trying to analyze the factors affecting customer expectations.

The research will also help to understand about the various viewpoints of the customers by which the company can easily make out where it is exactly lagging behind vis--vis customer expectations. The survey method is used wherein Structured Questionnaire, Personal Interview, and data collection has been used as a research instrument.

After analyzing the data, it was observed that though there is some strength, still there are areas which the company needs to improve upon.

A sample size of about 60 customers was taken for this study which included institutions, Govt. officers, business persons. After the survey was completed, the data was first sorted and then analyzed on the chosen parameters. This analyzed data was later converted into graphs such as pie charts, bar graphs, etc. This was done to make results easily comprehensible by anyone going through the report. This also made it easy to draw out the conclusions and provide a presentable format of the report.

CHAPTER -1 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

To know about the Mutual fund. To Study the various schemes offered by SBI mutual fund. To study in which scheme the investor invest the most. To study what are the factors affecting Mutual fund choice of Investor. To tap the future market. To know about the future competition by understanding their unit wise sales. To know about the sales potential. To find out the expectations of the consumers about the products. To study the factors affecting on SBI mutual fund services. To retain the existing user and to convert the new prospects into buyers.

RESEARCH METHODOLOGY

Research Design

A research design is the arrangement of the condition for collection and analysis of data. Actually it is the blueprint of the research project. Research design used will be descriptive type.

DATA COLLECTION

Primary Data :

It will be collected through structured questionnaire. Questionnaire

will contain close ended questions.

Secondary Data :

It will be collected from Business Newspapers, magazines, Journal

and websites related to the mutual fund industry.

SAMPLING DESIGN Sample Size : 60 Sample Unit : Institutions, Govt. officials, business persons Sampling technique : Convenience sampling.

Convenience sampling refers to the collection of information from members of the population who are conveniently available to provide it.

DATA ANALYSIS Data analysis will be done with the help of pie and bar chart.

LIMITATIONS OF STUDY

I will consider Ahmedabad City for survey because of time and cost. Finding of the study will be based on the assumptions that respondents have given correct

information. Information provided by respondents may be biased. The study is academic in nature. Sample size is very small.

CHAPTER -2 INTRODUCTION OF MUTUAL FUND AN OVERVIEW

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 a Mutual Fund 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. The flow chart below describes broadly the working of a mutual fund:

Mutual Fund Operation Flow Chart

History of Mutual Fund

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Reserve Bank of India and Government of India. The objective then was to attract the small investors and introduce them to market investments. Since then, history of mutual funds in India can be broadly divided into four distinct phases.

Phase I (1964-1987) 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. US-64 was the first and still one of the largest schemes, launched by UTI Scheme 1964. Over the years, US-64 attracted, and probably still has, the largest number of investors in any single investment scheme.

Later in 1970 and 80s, 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. During 1984-1987 new schemes like Childrens Gift Growth Fund & Mastershare were launched. Mastershare could be termed as first diversified equity investment scheme in India.

The mutual fund industry in India not only started with UTI but still counts UTI as its largest player with the largest corpus of investable funds amongst all mutual funds currently operating in India.

Phase II (1987-1993) Entry of Public Sector Funds

1987 marked the entry of non-UTI, Public Sector mutual funds, bringing in competition. With the opening up of the economy, many public sector banks and financial institutions were allowed to establish mutual funds. The State Bank of India established first non-UTI mutual funds SBI Mutual Fund in November, 1987. This was followed by Canbank Mutual Fund (Dec.87), LIC Mutual Fund (1989), and Indian Bank Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. These mutual funds helped enlarge the investor community and the investible funds. From 1987 to 1992-93, the fund industry expanded nearly seven times of Assets Under Management.

During this period, investors were shifting from bank deposits to mutual funds, as they started allocating larger part of their financial assets and savings to fund investments. UTI was still the largest segment of the industry, although with nearly 20% market share ceded to the Public Sector Funds.

Phase III - 1993-2003 (Entry of Private Sector Funds) With the entry of private sector funds in 1993, a new era started in the Indian mutual fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI

(Mutual

Fund)

Regulations

1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting up funds in India and also the industry has witnessed several mergers and acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other mutual funds . Phase IV : Since 2003 This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835 crores (as on January 2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and under the rules framed by Government of India and does not come under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place among different private sector funds, the mutual fund industry has entered its current phase of consolidation and growth. As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes. History of Mutual Funds in India can be better understood through its 4 phases.

Structure of Mutual Fund

All mutual funds comprises of following constituents.

Sponsors The sponsor initiates the idea to set up a mutual fund. It could be a registered company, scheduled bank or financial institution. A sponsor has to satisfy certain conditions, such as on capital, track record (at least five years' operation in financial services), default-free dealings

and a general reputation of fairness. The sponsor appoints the trustees, AMC and custodian. Once the AMC is formed, the sponsor is just a stakeholder.

Trust/board of trustees Trustees hold a fiduciary responsibility towards unit holders by protecting their interests. Trustees float and market schemes, and secure necessary approvals. Its role is to check whether the AMC's investments are within well defined limits, whether the fund's assets are protected, and also ensure that unit holders get their due returns. It also reduces any due diligence done by the AMC. For major decisions concerning the fund, it has to take unit holders' consent. They submit reports every six months to SEBI; investors get an annual report. Trustees are paid annually out of the fund's assets 0.05% per cent of the weekly average net asset value.

Fund Managers/AMC They are the ones who manage your money of the investors. An AMC takes investment decisions, compensates investors through dividends, maintains proper accounting and information for pricing of units, calculates the NAV, and submits quarterly reports to the trustees. A fund's AMC can neither act for any other fund nor undertake any business other than asset management. Custodian It is an independent organization, it takes custody of securities and other assets of a mutual fund. A custodian's responsibilities include receipt and delivery of securities, collecting

income, distributing dividends, safekeeping of units and segregating assets and settlements between schemes.

Unit holders Individuals holding and trading in Mutual Funds are called Unit Holders.

Transfer Agent Transfer agents are responsible for issuing and redeeming units of the mutual fund and provide other related services as preparation of transfer documents and updating investors records.

SEBI All MFs must be registered with SEBI before they become operational. MFs are governed by the Securities and Exchange Board of Indian (Mutual Fund) Regulations, 1996.

Distributor AMCs usually appoint distributors or agents or brokers, who sell units on behalf of the fund. Besides brokers, independent individual may be appointed as agents for the purpose of selling the funds schemes to the individuals. They also served as invested as investment advisor as fund sale persons.

BENEFITS OF INVESTING THROUGH A MUTUAL FUND

A mutual fund is an entity that pools the money of many investors -- its unit-holders -- to invest in different securities. Investments may be in shares, debt securities, money market securities or a combination of these. Those securities are professionally managed on behalf of the unit-holders, and each investor holds a pro-rata share of the portfolio i.e. entitled to any profits when the securities are sold, but subject to any losses in value as well. i) Professional investment management

Mutual funds hire full-time, high-level investment professionals. Funds can afford to do so as they manage large pools of money. The managers have real-time access to crucial market information and are able to execute trades on the largest and most cost-effective scale. ii) Diversification Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund unit-holders can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities. iii) Low Cost A mutual fund let investor participate in a diversified portfolio for as little as Rs.5,000/-, and sometimes less. And with a no-load fund, investor pay little or no sales charges to own them.

iv) Convenience and Flexibility Investor own just one security rather than many, yet enjoy the benefits of a diversified portfolio and a wide range of services. Fund managers decide what securities to trade, collect the interest payments and see that investors dividends on portfolio securities are received and his rights exercised. It also uses the services of a high quality custodian and registrar in order to make sure that investors convenience remains at the top of mind. v) Personal Service One call puts investor in touch with a specialist who can provide investor with information he can use to make his own investment choices. They will provide investor personal assistance in buying and selling investors fund units, provide fund information and answer questions about investors account status. vi)Liquidity In open-ended schemes, investor can get his money back promptly at net asset value related prices from the mutual fund itself. vii) Transparency Investor get regular information on the value of his investment in addition to disclosure on the specific investments made by the mutual fund scheme.

DISADVANTAGES OF MUTUAL FUND

1. Costs Control Not in the Hands of an Investor: Investor has to pay investment

management fees and fund distribution costs as a percentage of the value of his investments, irrespective of the performance of the fund.

2. No Customized Portfolios: The portfolio of securities in which a fund invests is a

decision taken by the fund manager. Investors have no right to interfere in the decision making process of a fund manager, which some investors find as a constraint in achieving their financial objectives.

3. Difficulty in Selecting a Suitable Fund Scheme: Many investors find it difficult to

select one option from the plethora of funds/schemes/plans available.

Types of Mutual fund schemes

1) Schemes by Structure A mutual fund schemes can be classified into open-ended scheme or close-ended scheme depending on its maturity period.

Open-ended Fund/Scheme An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can

conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

Close-ended fund/scheme A close-ended fund or scheme has a stipulated maturity period eg five and seven years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor ie either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

2) Schemes by Investment Objectives A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its investment objective. Such schemes may be open-ended or close-ended schemes as described earlier. Such schemes may be classified mainly as follows:

a) Growth/Equity oriented schemes

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These schemes provide different options to the investors like dividend option, capital appreciation, etc and the investors may choose an option depending on their preferences. The investors must indicate the option in the application form. The mutual funds also allow the investors to change the options at a later date. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.

b) Income/Debt oriented scheme The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, Government securities and money market instruments. Such funds are less risky compared to equity schemes. These funds are not affected because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa. However, long term investors may not bother about these fluctuations.

c) Balanced fund The aim of balanced funds is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth. They generally invest 40-60 per cent in equity and debt instruments. These funds are also affected because of

fluctuations in share prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

d) Money Market or Liquid fund These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

e) Gilt fund These funds invest exclusively in government securities. Government securities have no default risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the case with income or debt oriented schemes.

f) Other Scheme Index funds Index funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty), etc These schemes invest in the securities in the same weightage comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as

"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which are traded on the stock exchanges.

Sector specific funds/schemes These are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. Eg Pharmaceuticals, Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc The returns in these funds are dependent on the performance of the respective sectors/industries. While these funds may give higher returns, they are more risky compared to diversified funds. Investors need to keep a watch on the performance of those sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.

Tax saving schemes ELSS FUNDS An ELSS (Equity Linked Saving Scheme) is the mirror image of a diversified equity fund. This means the fund manager will invest in shares of various companies across various industries.

What sets it apart is the added tax benefit, something a diversified equity fund does not offer.

ELSS funds have a lock-in period of three years. This could be restricting, but the lock-in period prevents unnecessary with drawals and helps money grow over a period of time.

REGULATORY AUTHORITIES

To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF either promoted by public or by private sector entities including one promoted by foreign entities is governed by these Regulations. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc.

CURRENT SCENARIO OF MUTUAL FUND INDUSTRY

The domestic mutual fund industry lost over 10 per cent of its assets during the financial year ended March 2011. Put together, the five leading fund houses alone saw assets dip by over seven per cent. Assets grew by 52 per cent last year. According to the Association of Mutual Funds in India (Amfi), the industrys average asset under management (AAUM) stood at Rs 6,58,914 crore (SBI MF did not declare its AUM till the copy was released), as against Rs 7, 47, 204 last year. Industry experts say the primary reason for the dip could be outflows from the ultra-shortterm funds after the mark-to-market norms were introduced in the middle of the last financial year. Ultra-short-term funds comprised 40 per cent of the total assets of the industry. Outflows from this category hit assets, said an industry analyst.

The Securities and Exchange Board of India (Sebi) had mandated that debt securities with maturity of up to 182 days be valued at their weighted average market price from August 1 rather than the earlier practice of valuation on the basis of amortisation. Ultra-short term funds or liquid-plus schemes have a maturity of over 91 days. Liquid-plus funds were favoured by firms and banks as they generated annual returns of 5.5 per cent, while liquid schemes and banks short-term fixed deposits could give just 4.25 per cent. Dhruva Chatterji, senior research analyst at Morningstar India, which tracks the mutual fund industry, said, During February-December last year, the ten largest ultra-short term funds saw assets decline by 60-70 per cent. Many of these were managing assets in excess of Rs 30,000 crore in the initial part of last year.

Almost half of the 43 players in the industry reported decline in assets. Among the top five players which control 70 per cent of the total assets, UTI MF was hit the hardest as its AAUM plunged over 16 per cent. ICICI MF witnessed a dip of over nine per cent, followed by Reliance MF(eight per cent). While HDFCs assets were down three per cent, Birla Sun Life MF emerged as the only big fund house which managed a rise of two per cent in FY11. Bowing to the demand of fund houses, Amfi had stopped declaration of AUM on a monthly basis. According to them, monthly data was brewing unhealthy competition among fund houses to gather assets.

CHAPTER

CORPORATE PROFILE OF SBI MUTUAL FUND

With over 24 years of rich experience in fund management, SBI Funds Management Pvt. Ltd. bring forward expertise by consistently delivering value to investors. SBI fund management Pvt. Ltd. is a Joint Venture between SBI and Socit Generale Asset Management (France), one of the world's leading fund management companies, managing over US$ 500 Billion.

In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them. In the process it has rewarded its investors handsomely with consistent returns. A total of over 5.4 million investors have reposed their faith in the wealth generation expertise of the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark indices and have emerged as the preferred investment for millions of investors and HNIs.

Today, the fund manages over Rs. 27,076.63 crores of assets and has a diverse profile of investors actively parking their investments across 36 active schemes.

The fund serves this vast family of investors by reaching out to them through network of over 200 points of acceptance, 28 investor service centers, 46 investor service desks and 56 district organisers.

SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent India Opportunities Fund. SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and

most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for their schemes.

Services

Mutual Funds SBI Mutual funds mission has been to establish Mutual Funds as a viable investment option to the masses in the country. Working towards it, Co. developed innovative, need-specific products and educated the investors about the added benefits of investing in capital markets via Mutual Funds. Today, Co. has been actively managing investor's assets not only through investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors. This makes Co. one of the largest investment management firms in India, managing investment mandates of over 5.5 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. Co. has excelled by understanding investor's requirements and terms of risk / return expectations, based on which Co. suggest customized asset portfolio recommendations. Co. 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 longterm growth in capital, through well-researched investments in a diversified basket of stocks of Indian Companies.

Schemes of SBI Mutual Fund

EQUITY SCHEMES The primary objective of the equity asset class is to provide capital growth / appreciation by investing in the equity and equity related instruments of companies over medium to long term.

Equity/ Growth Funds


Magnum Multicap Fund Magnum Equity Fund Magnum Multiplier Plus 1993 SBI Blue Chip Fund Magnum Global Fund

SBI One India Fund Magnum Midcap Fund

Sectoral Funds

Magnum Sector Funds Umbrella-Emerging

Businesses Fund

Magnum Sector Fund Umbrella-Contra Fund Magnum Sector Funds Umbrella-FMCG Fund Magnum Sector Funds Umbrella-IT-Fund Magnum Sector Funds Umbrella-Pharma Fund

Thematic Funds

Magnum COMMA Fund SBI Infrastructure Fund - Series I SBI PSU Fund

ELSS Funds

SBI Tax Advantage Fund Series I Magnum Taxgain Scheme 1993

Index Funds

Magnum Index Fund

Market Neutral Strategy

SBI Arbitrage Opportunities Fund

DEBT / INCOME SCHEMES

The schemes in this asset class generally invest in fixed income securities such as bonds, corporate debentures, government securities (gilts), money market instruments, etc. and provide regular and steady income to investors.

Magnum Children's Benefit Plan Magnum Income Plus Fund - Saving Plan Magnum Income Fund Floating Rate Plan -

Savings Plus Bond Plan

Magnum Income Fund Floating Rate Plan -

Long Term

Magnum Income Fund SBI Dynamic Bond Fund Magnum Gilt Fund - Short Term Plan Magnum Gilt Fund - Long Term Plan SBI Short Horizon Debt Fund - Short Term

Fund

SBI Short Horizon Debt Fund - Ultra Short

Term Fund LIQUID SCHEMES The strategy for liquid funds include investments in short investment horizon, which includes 'cash' assets such as treasury bills, certificates of deposit and commercial paper.

Magnum InstaCash Fund Magnum InstaCash Fund-Liquid Floater

SBI Premier Liquid Fund

HYBRID SCHEMES These schemes invest in a mixture of debt and equity securities in different proportions as prescribed in the Scheme Information Document.

Magnum Balanced Fund Magnum NRI Investment Fund - Flexi Asset

Plan

Magnum Income Plus Fund - Investment Plan Magnum Monthly Income Plan Magnum Monthly Income Plan Floater SBI Capital Protection Oriented Fund Series I SBI Capital Protection Oriented Fund Series II

FIXED MATURITY PLANS These are closed ended debt schemes with a fixed maturity date and they invest in debt & money market instruments maturing on or before the date of the maturity of the scheme.

SBI Debt Fund Series 13 MONTHS 11 SBI Debt Fund Series 15 MONTHS 5 SBI Debt Fund Series 15 MONTHS 6 SBI Debt Fund Series 18 MONTHS 4 SBI Debt Fund Series 18 MONTHS 5

SBI Debt Fund Series 18 MONTHS 6 SBI Debt Fund Series 180 DAYS 13 SBI Debt Fund Series 180 DAYS 14 SBI Debt Fund Series 180 DAYS 15 SBI Debt Fund Series 180 DAYS 16 SBI Debt Fund Series 180 DAYS 17 SBI Debt Fund Series 180 DAYS 18 SBI Debt Fund Series 24 MONTHS 2 SBI Debt Fund Series 36 MONTHS 1 SBI Debt Fund Series 370 DAYS 5 SBI Debt Fund Series 370 DAYS 6 SBI Debt Fund Series 370 DAYS 7 SBI Debt Fund Series 370 DAYS 8 SBI Debt Fund Series 370 DAYS 9 SBI Debt Fund Series 370 DAYS 10 SBI Debt Fund Series 370 DAYS 11 SBI Debt Fund Series 370 DAYS 12 SBI Debt Fund Series 370 DAYS 13 SBI Debt Fund Series 370 DAYS 14 SBI Debt Fund Series 370 DAYS 15 SBI Debt Fund Series 60 MONTHS 1 SBI Debt Fund Series 90 DAYS 40 SBI Debt Fund Series 90 DAYS 41 SBI Debt Fund Series 90 DAYS 42 SBI Debt Fund Series 90 DAYS 43

EXCHANGE TRADED SCHEMES ETFs are nothing but a basket of securities that are traded on the stock exchange. SBI Mutual fund launched its first ETF product SBI Gold Exchange Traded Fund in March 2009

SBI Gold Exchange Traded Scheme

Chapter -4 DATA COLLECTION and INTERPRETATION

1 Do you Invest Money?

No. of Respondent Yes No 48 12

Percent 80% 20%

INTERPRETATION-

While survey in the market it has been found that the number of people making investment is 80%.

2) If yes, in which avenues you invest?

Avenues of Investment Mutual Fund Bank FD Share Market Post Office Others

No. of Respondent

41 35 17 22 08

INTERPRETATION From the Survey it was observed that majority of respondent were investing in Mutual Fund along with other options like Bank FDs, Share Market Post office and others i.e. ULIP plans and PPF account. Since one individual is investing in more than one option the total feedback is more than the sample size.

3) Do You invest in SBI Mutual fund?

No. of Respondent Yes No 15 26

Percent 37% 63%

INTERPRETATION Out of total 41 respondent who replied positive that they invest in Mutual fund, 15 respondent were those respondent who had already invested in SBI Mutual fund. This was 37% of the respondent out of 41 who said that they invest in Mutual fund.

4) Why do you invest in SBI mutual funds?

No. of Respondent

Good Returns Govt company image Good Fund Manager Good ELSS Funds

12 08

09 11

INTERPRETATION: According to the survey maximum people invest their money in SBI mutual Fund in ELSS (Equity Linked Savings Scheme) schemes and for good returns. Also other reason mentioned was good fund manager and an image of Government Company.

5) Do you know about various schemes offered by SBI mutual funds?

No. of Respondent Yes No 12 03

Percent 80% 20%

INTERPRETATION: According to the survey 80% of the people are aware about the various scheme offered by SBI Mutual Fund and 20% people are still unaware.

6) Which type of mutual funds you invest?

No. of Respondent Open Ended Close Ended Both 04 06 05

Percent 27% 40% 33%

INTERPRETATION: 27% people are investing in Open ended fund, 40% people in Close ended fund and 33% in both

7) Are you aware about the risk factors associated with SBI mutual funds?

No. of Respondent Yes No 11 04

Percent 73% 27%

INTERPRETATION: From the above 73% of the people are aware with risk factor associated with SBI mutual fund and 27% people are unaware about it.

08) Are you getting good returns in SBI mutual funds?

No. of Respondent Yes No 13 02

Percent 87% 13%

INTERPRETATION: From the above, 87% of the people are getting good returns in SBI mutual fund.

09) From where you come to know about SBI mutual funds?

No. of Respondent News Paper Relative/Friends MF Brokers Hoardings/Glow sign 05 05 02 03

Percent 33% 33% 14% 20%

INTERPRETATION: According to the survey, majority of the people (33%) come to know about mutual fund from News paper ads, Relative and Friends, 20% from Hoardings and 14% from Mutual Fund Agents. 10) Are you facing any problem with your mutual funds?

No. of Respondent Yes No 8 52

Percent 13% 87%

INTERPRETATION: From the 60 people surveyed, only 08 people are facing problem with their mutual fund / Mutual Fund Company.

5.1 FINDINGS: 1) While survey in the market it has been found that the number of people making investment is 80%.

2) From the Survey it was observed that majority of respondent were investing in Mutual Fund along with other options like Bank FDs, Share Market Post office and others i.e. ULIP plans and PPF account. Since one individual is investing in more than one option the total feedback is more than the sample size.

3) Out of total 41 respondent who replied positive that they invest in Mutual fund, 15 respondent were those respondent who had already invested in SBI Mutual fund. This was 37% of the respondent out of 41 who said that they invest in Mutual fund.

4) According to the survey maximum people invest their money in SBI mutual Fund in ELSS (Equity Linked Savings Scheme) schemes and for good returns. Also other reason mentioned was good fund manager and an image of Government Company.

5) According to the survey 80% of the people are aware about the various scheme offered by SBI Mutual Fund and 20% people are still unaware.

6) 27% people are investing in Open ended fund, 40% people in Close ended fund and 33% in both

7) From the Survey, 73% of the people are aware with risk factor associated with SBI mutual fund and 27% people are unaware about it. 8) From the survey, 87% of the people are getting good returns in SBI mutual fund.

9)

According to the survey, majority of the people (33%) come to know about mutual

fund from News paper ads, Relative and Friends, 20% from Hoardings and 14% from Mutual Fund Agents.

10)

From 60 people surveyed, only 08 people are facing problem with their mutual fund /

Mutual Fund Company, while others were satisfied.

5.2 RECOMMENDATIONS:

Many of the people are still want to know more about the concept of mutual fund. Thus their arises need to provide more information to the people about the concept of mutual fund.

Mutual fund schemes should have perfect blend of safety, Returns, Tax benefit.

Brokers are the most important link in channel of distribution with respect to mutual fund industry and can influence the people to invest in Mutual Funds. Therefore the fund houses should do their best to inspire and motivate the broker by providing them good incentives.

5.3 Conclusion: In this project an attempt to study the mutual funds and go for the comparative analysis of investor behavior who invests in SBI mutual fund. Here the comparative analysis is done on the basis of primary and secondary data and thus increasing the authencity of the result obtained.

According to the analysis done under this project, both the primary and secondary data analysis reflects that SBI Mutual fund is the most promising fund among the other mutual funds and people who invest in SBI mutual fund are fully satisfied with their investment.

BIBLIOGRAPHY

BOOKS 1) AMFI -BY D.C.ANJARIA 2) MUTUAL FUNDS- DR.UMA SHASHIKANT

MAGAZINES 1) FUND DOSSIER(SBI Mutual Fund) 2) FACT SHEET(SBI Mutual Fund) 3) BUSINESS TODAY

THROUGH INTERNET 1) www.mutualfunds.com 2) www.sbimf.com 3) www.amfiindia.com

QUESTIONNAIRE

Disclaimer: I am Management student. The purpose of this study is purely academic and information will not be disclosed for any commercial purpose. Institute/Organization Name:-.. Contact Person:-... Date:-........ Email Id:-.. Phone Number:-

1. Do you invest money? o Yes o No

2. If Yes, in which avenues you invest? o Mutual Fund o Banks o Share Market o Post Office o Others

3. Why do you invest in SBI Mutual Fund? o Good Return o Low risk o Best Investment o Others

4. From how many years you are investing in SBI Mutual Fund? o 1year 1 o 1-2year o 2years o more than 2 years

5. Do you know about various schemes offered by SBI Mutual Fund? o Yes o No

6. Which type Mutual Funds you invest? o Open Ended o Close Ended o Both o Dont know

7.In which scheme do you invest?

o Equity diversified o Sector fund o Balance fund o Money market fund

8.Are you aware about the risk factors associated with SBI Mutual Fund? o Yes o No

9.How much you invest in SBI Mutual Fund? o 10000 o 1000-2000 o 20000 o More than 20000

10. Are you getting good returns in SBI Mutual Fund? o Yes o No

11. From where you come to know about SBI Mutual Fund?

o News paper o Relatives/Friends o Brokers o Television o Hoardings

12. Are you facing any problem with your mutual funds? o Yes o No