Mayank Jain-SIP

1 Apeejay School of Management, Dwarka, New Delhi
Summer Internship Project

On

Study on Investors insight and Comparative
analysis of large cap Mutual fund schemes

Submitted in partial fulfillment of PGDM program
2011-13

Submitted by
Mayank Jain
PGDM/19/100

Company Mentor Faculty Mentor
Mr.Amit kapil Ms.Manisha Bachheti
Senior Sales Manager Professor
SBI-Mutual fund ASM, Dwarka
Chandigarh

Apeejay School of Management
New Delhi
July 2012


CERTIFICATE
(COLLEGE GUIDE)

This is to certify that the project work done on Study on investors insight and
Comparative analysis of Large cap Mutual funds Submitted to Apeejay School of
Management, Dwarka by Mayank Jain in partial fulfillment of the requirement for
the award of PG Diploma in Business Management, is a bonafide work carried out by
him/her under my supervision and guidance. This work has not been submitted
anywhere else for any other degree/diploma. The original work was carried out during
23
rd
April 2012 to 23
rd
June 2012 in (SBI- Mutual fund, Chandigarh.)

Date: Ms. (Dr.) Manisha Bachheti
Professor (Academic mentor)
ASM, Dwarka
Seal/Stamp of the Organization New Delhi-110077



DECLARATION
I, the undersigned, hereby declare that Project Report entitled Study on Investors
insight and Comparative analysis of Large cap Mutual funds written and
submitted by me to Apeejay School of Management, Dwarka, New Delhi in partial
fulfillment of the requirements for the award of Post Graduate Diploma in
Management under the guidance of Manisha Bachheti (Academic Mentor) and
Amit Kapil (Corporate mentor) is my original work and the conclusions drawn
therein are based on the material collected by myself.

DATE: SIGNATURE
PLACE: MAYANK JAIN
PGDM 1-C
19/100


ACKNOWLEDGMENT
In the course of this project I got an insight into the mutual fund industry, came to
know a lot about the basic working of an asset management company, understood
how the mutual funds of different fund houses are compared, learnt various
computations and overall got a preview of what a job in the mutual fund industry
would entail.
First and foremost I am very proud to be a student of Apeejay School of Management,
Dwarka and am most grateful for having been given the chance to work with a
reputed company like SBI- Mutual fund.
I would fail to do my duty if I didnt take this opportunity to thank my faculty guide,
Prof. Manisha Bachheti Maam for her timely help and guidance. I would like to
thank her whole heartedly for making me work harder so as to gain a more in depth
knowledge of the subject which I am sure will help me a lot in the long run as well. I
would say that this project wouldnt have been the same without her support,
guidance, encouragement and constant demand for improvement.
My company guide, Mr. Amit Kapil, Manager is another person who has played a
key role in the development of me as a person, in the completion of this project and in
being educated about the mutual fund industry in general. Without the knowledge,
attention and time that he has bestowed on me, this project would simply have been
impossible. He is truly an inspiration for me and drove me towards working harder
than my expectations which simply made me more ready for the corporate life. He
truly gave me the corporate exposure I had thought of.
I am also highly indebted to our dean Dr.Deepankar Chakrabarti who gave me with
this opportunity to learn about the corporate world.
Lastly, I would express my grateful thanks to my family members and my friends who
inspired me to put in my best efforts for the preparation of the Project Report.
MAYANK JAIN


TABLE OF CONTENTS
EXECUTIVE SUMMERY 10
CHAPTER -1 INTRODUCTION TO THE TOPIC..10
Mutual fund..11
Mutual fund for whom?............................................................11
Mutual fund industry in India..12
History and growth of mutual fund.12
Mutual fund structure...........13
Types of mutual funds...13
ELSS advantage.16
Benefits of mutual fund..17
Drawbacks of mutual fund..18
CHAPTER-2 STATE BANK OF INDIA..19
SBI funds management private ltd20
Services offered.20
SBI mutual fund21
Vision & mission.........21
Profile ..21
Company details.................22
Organizational structure..24
Services offered.......24
Marketing strategies26
Taxation policy.......27
Competitors.28
Achievements......29
CHAPTER-3 PROJECT DESCRIPTION.30
CHAPTER-4 LITERATURE REVIEW.31-34
Irwin, Brown, FE (1965)
Treynor (1965)
Sharpe, William F (1966)
Jensen (1968)
Fama (1972)
Indian Mutual Fund Industry (2009)
Indian MF industry has immense growth potential


Gupta Ramesh (1989)
Shashikant Uma (1993)
Sahadevan S and Thiripalraju M (1997)
Sanjay Kant Khare (2007)
Indias Mutual Fund Industry (2007)
The Fall and Rise of Mutual Funds in India (2007)
Indias Capital Markets: Unlocking the door to future growth (2007)
Downside Risk Analysis of Indian Equity Mutual Funds: A Value at
Risk(2009)
Making Mutual Fund Work for You (2008)
Risk and reward relationship34
What is risk.34
Risk and return two sides of coin35
Types of risk35-38
Net asset value..38
Ways to measure risk39
Standard deviation....39
Alpha 39
Beta...39
Sharpe ratio..40
Tryenor ratio....40
Comparison between Sharpe and tryenor ratio...40
R-squared ratio....41
Downside risk probability.41
Ways to safeguard.41
CHAPTER-5 INVESTORS INSIGHT-a primary research
Research objectives..43
Type of research...43
Data source...44
Research instrument.44
Sampling unit44
Sampling size44
Findings and Analysis.45-53
Different investment options vs. ELSS54
Return, safety, volatality, liquidity of different investment
options.................................................55
CHAPTER-6 COMPARITIVE ANALYSIS OF LARGE CAP MUTUAL
FUNDS


Why comparative analysis?............................................................56-57
SBI mutual fund....57
SBI magnum equity fund..58
SBI bluechip india fund....60
Birla sunlife mutual fund ...62
BSL top 100 fund....62
ICICI prudential mutual fund..65
ICICI pru top 100 fund.66
UTI mutual fund70
UTI opportunities fund..71
Franklin Templeton investment ltd....71
Franklin bluechip India fund..72
CHAPTER-7 DATA ANALYSIS AND INTERPRETATION..74-79
CHAPTER-8
CORPORATE LEARNING.80
LIMITATIONS OF THE STUDY...82
CONCLUSION 83
CHAPTER-9 RECOMMENDATIONS....86-88
CHAPTER-10 BIBLOGRAPHY...90
CHAPTER-11 ANNEXURE.92


EXECUTIVE SUMMARY
SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable
track record in judicious investments and consistent wealth creation. The fund traces
its lineage to SBI - Indias largest banking enterprise. The institution has grown
immensely since its inception and today it is India's largest bank, patronized by over
80% of the top corporate houses of the country.
All over the world, mutual fund is one of the most popular instruments for investment.
Its popularity with consumer has dramatically increased over the last couple of years
worldwide; the mutual fund has a long and successful history. The popularity of
mutual fund has increased manifold. In developed financial market like United
States, mutual fund has almost overtaken bank deposits and total assets of insurance
funds
The significant outcome of the government policy of liberalization in industrial and
financial sector has been the development of new financial instruments. These new
instruments are expected to impart greater competitiveness flexibility and efficiency
to the financial sector. Growth and development of various mutual fund products in
Indian capital market has proved to be one of the most catalytic instruments in
generating momentous investment growth in the capital market. There is a substantial
growth in the mutual fund market due to a high level of precision in the design and
marketing of variety of mutual fund products by banks and other financial institution
providing growth, liquidity and return.
There are various parameters which an investor should consider before investing in
mutual funds. The comparative analysis between mutual funds will help the investor
to take appropriate decision before investing in mutual funds.


INTRODUCTION TO THE TOPIC:
Wealth creation over the years has changed its avenues and area of interest for the
investors in India. The time when the investment was made in the post offices and
banks through savings and fixed deposits have changed and with the awareness of
finance, Mutual fund has became an excellent route to create wealth for the public at
large.
All over the world, mutual fund is one of the most popular instruments for investment.
Its popularity with consumer has increased over the last couple of years worldwide;
the mutual fund has a long and successful history. In developed countries like United
States, mutual fund is preferred over other avenues of investment by the people.
With the coming up of liberalization in industrial and financial sector has lead to
development of new financial instruments. These new instruments are expected to
impart greater competitiveness flexibility and efficiency to the financial sector.
Mutual funds in India have outgrown other investment options and the assets have
been increasing significantly with more awareness among the general public. There
has been increase in the investment in the capital market with the coming up of the
mutual funds in India. There is a substantial growth in the mutual fund industry due to
marketing of variety of mutual fund products by banks and other financial institution
providing growth, liquidity and return.
With the decline in the interest rates of the bank and increasing inflation and adverse
market conditions, mutual funds have become strongest and most preferred instrument
in the capital market. Moreover, the attitude of Indian small investors to avoid risk, it
is important on the part of fund managers to monitor the fund closely and come up
with various elements of liquidity, return and security. All these characterstics have
made the mutual fund a better investment option.
There are various parameters which an investor should consider before investing in
mutual funds. The comparative analysis between mutual funds will help the investor to
take appropriate decision before investing in mutual funds.


MUTUAL FUND
Mutual funds go back to the times of the Egyptians and Phoenicians when they
sold shares in caravans and vessels to spread the risk of these ventures. The
foreign and colonial government Trust of London of 1868 is considered to be
the fore-runner of the modern concept of mutual funds. The USA is, however,
considered to be the Mecca of modern mutual funds. (Source: amfi website)
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 realised
are shared by its unit holders in proportion to the number of units owned by
them. The flow chart below describes broadly the working of a mutual fund:

Source: amfi website
MUTUAL FUND FOR WHOM?

Mutual funds can survive and thrive only if they can live up to the
hopes and trusts of their investors. These hopes and trusts echo the
peculiarities which support the emergence and growth of such insecurity of such
investors who come to the rescue of such investors who face following
constraints while making direct investments:
(a) Limited resources in the hands of investors quite often take them away
from stock market transactions.
(b) Due to Lack of funds, to have a balanced and diversified portfolio becomes
difficult.


(c) Lack of professional knowledge associated with investment. Small
investors can hardly afford to have ex-pensive investment consultations.
(d) To buy and sell shares, investors have to engage share brokers to whom
investors have to pay brokerage.
(e) Lack of access to market information.
(f) It is difficult to know the development taking place in share market
and corporate sector.

MUTUAL FUND INDUSTRY IN INDIA

HISTORY & GROWTH OF MUTUAL FUNDS
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. The history of
mutual funds is mainly divided to 4 phases namely:
First phase (1964-1987): Unit Trust of India (UTI) was established on 1963
by an Act of Parliament. It was set up by the Reserve Bank of India and
functioned under the Regulatory and administrative control of the Reserve
Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme
Industry
profile
UTI
Public sector
MFs
Private Sector
MFs
Indian private
sector funds
JV with
Foreign Funds
Foreign Mfs


1964. At the end of 1988 UTI had Rs.6,700 crores of assets under
management.
Second phase (1987-1993) Entry of public sector fund houses.
Third phase (1993-2003) Entry of private sector players.
Fourth phase (2004 onwards) Division of Unit Trust of India
1) Unit Trust of India- Mutual fund, sponsored by SBI, PNB, BOB, LIC with
76000 crores of assets under management by 2003. It is registered with
SEBI and functions under the Mutual Fund Regulations.
2) Unit Trust of India representing broadly, the assets of US 64 scheme,
assured return and certain other schemes with Rs. 29,835 crore assets under
management by 2003. ( source: amfi website)



Securities and Exchange Board of India (Mutual Funds) Regulations, 1996
In the year 1992, Securities and exchange Board of India (SEBI) Act was passed.
The objectives of SEBI are to protect the interest of investors in securities and to
promote the development of and to regulate the securities market.
As far as mutual funds are concerned, SEBI formulates policies and regulates the
mutual funds to protect the interest of the investors. SEBI notified regulations for
the mutual funds in 1993. Thereafter, mutual funds sponsored by private sector
entities were allowed to enter the capital market. The regulations were fully revised
in 1996 and have been amended thereafter from time to time. SEBI has also issued
guidelines to the mutual funds from time to time to protect the interests of investors.
(source: sebi website)
MUTUAL FUND STRUCTURE
A mutual fund in India is set up in the form of a trust, which has sponsor,
trustees, Asset Management Company (AMC) and custodian. The trust is
established by a sponsor or more than one sponsor who is like promoter of a
company. The trustees of the mutual fund hold its property for the benefit of
the unit holders. Asset Management Company (AMC) approved by SEBI
manages the funds by making investments in various types of securities.
Custodian, who is registered with SEBI, holds the securities of various
schemes of the fund in its custody. The trustees are vested with the general
power of superintendence and direction over AMC. They monitor the
performance and compliance of SEBI Regulations by the mutual fund.
There are many entities involved and the diagram below illustrates the
organisational set up of a mutual fund:


Like other countries, India has a legal framework within which mutual funds must
be constituted. In India, open and close end funds operate under the same
regulatory structure, i.e. in India, all mutual funds are constituted along one unique
structure as unit trust. A mutual fund in India is allowed to issue open end and
close end schemes under a common legal structure. The structure, which is
required to be followed by mutual funds in India, laid down under SEBI (Mutual
Fund) Regulations, 1996.
TYPES OF MUTUAL FUND SCHEMES
Mutual funds can be classified on various grounds:
By Structure:
Open ended schemes: The size of the scheme is not specified or pre
determined. Entry and exit to the fund can be made at any time. It means that the
assets under management for a scheme keeps on changing as buying and selling can
be made at any time. Open ended funds have comparatively better liquidity.
Close ended schemes: This type of funds have a defined period during
which no selling and buying of units take place. The assets under management
remains same and do not change as in the open ended scheme. The scheme is traded
on stock markets.
Interval schemes: Intervals are set when the buying and selling of the units
is done. These combine the features of open-ended and close-ended schemes. They
may be traded on the stock exchange or may be open for sale or redemption during
predetermined intervals at NAV related prices.
By investment objective:
Growth scheme: Funds aim to achieve increase the underlying value of
investment through capital appreciation. Such funds invest in growth oriented
securities which can appreciate through the expansion production facilities in the
long run. An investor who chooses this type of security should assume higher than
the normal degree of risk.
Income scheme: The objective of this scheme is to maximize income of the


investor. Funds distribute returns earned periodically. The funds can further be
divided into categories:
Those that stress constant income at relatively low risk and
Those that attempt to achieve maximum income possible with use
of leverage.
Money market schemes: Money market funds aim to invest in money
market instruments, which are fixed income securities with a very short time to
maturity and high credit quality. These funds are not government insured, like bank
savings accounts.
Balanced scheme: These schemes have reasonable mix of equity and bonds,
are known as balanced funds. Such funds put more emphasis on equity share
investments when the conditions are bright and will tend to switch to debentures
when market conditions are dull.
Other schemes:
Tax saving schemes:
Special schemes:
1) Index schemes: Index schemes use nifty sensex as their bases. Fund tries to
match the index by selecting stock from it. For example: BSE 500, S&P CNX ,
NIFTY.
2) Sector specific schemes: This types of funds concentrate on a particular
sector, like FMCG sector, IT sector, etc. that of the economy. These type of funds
are aggressive in nature with more risk associated with them. These funds are
characterized by high viability, hence more risky. (Source: amfi website and SBI
handbook)
ELSS Advantage
Tax Savings is a very important part of financial planning. Post tax return is what
really matters at the end of the day as the real income from investments comes from
what you earn after paying all taxes. Equity Linked Savings Schemes (ELSS) is an


ideal way to save on tax as well as staying invested in equity mutual funds. ELSS
schemes have been introduced in India to promote investments in equity markets by
giving tax concessions to the investors. ELSS is basically equity-diversified scheme
and has a lock in period of three-years. (source: SEBI handbook)
BENEFITS OF MUTUAL FUND
Mutual funds are becoming a very popular form of investment characterized by
many advantages that they share with other forms of investments. Mutual fund
route offer several important advantages.
Diversification: Diversification refers to dividing the investment amount into
various and different stocks. By investing in many companies the mutual fund can
protect themselves from unexpected loss in the value of the some shares. Mutual
funds put together money of large no. of investors into different basket of shares of
different companies. Diversification is the major strength of mutual funds.
Expert supervision: Making investment in stock market is tedious and time
consuming task. People with lack or low knowledge in this area require expert
supervision to invest. Mutual funds provide supervision of who have knowledge
and experience in the share market managing his money.
Liquidity of investment: Liquidity refers to conversion of stock into liquid form,
i.e. cash. SEBI guidelines also provides mutual fund to ensure liquidity. Mutual
funds can be converted in to cash easily without any hassle like with other
investment options at the NAV value of the fund.
For equity fund : Transaction day+3 days
For debt funds : Transaction day +2 days
For liquid fund : Transaction day +1 day
Risk reduction: The diversification in the mutual funds leads to reduction in the
risk of returns and provide a comfortable situation for investors. Investors are safe
and secure as mutual funds provide expert supervision safeguarding from the market
up and downs.


Security of investment: Mutual funds provide safety of investment. SEBI provides
for the safety of investment for the investors. SEBI act as a watchdog and attempts
whole heartedly to protect the interest of the investors.
Tax saving: The dividends for the both equity as well as the debt schemes are tax
free in the hands of the investors, as per the union budget 2003. But capital
appreciation is taxable in the hands of the investors.
DRAWBACKS OF MUTUAL FUNDS:
Mutual funds also have few disadvantages/ drawbacks which are as follows:
1) No Insurance: Mutual funds are not insured against losses. The Federal
Deposit Insurance Corporation (FDIC) only insures against certain losses at
banks, credit unions, and savings and loans, not mutual funds. Losses can
still be there with the benefit of risk reduction as market conditions are not
known in advance. It is also possible that one can even lose the entire
investment.
2) Dilution: The amount of risk can be reduced with the help of diversification
but dilution can still exist. If the value of one holding increases 100% and
holding other increases negatively by 50%, therefore it will not mean the fund
will double in value but there will be change in NAV.
3) Fees and Expenses: Entry load and exit load leads to reduction in the profits
in the hand of the investors. However the entry load was abolished to regulated
the mutual fund in India. However, the exit load still exist which varies from
fund house to another fund house, which adds to trading cost for the investor.
4) Loss of Control: The managers of mutual funds make all of the decisions
about which securities to buy and sell and when to do so. This can make it
difficult for you when trying to manage your portfolio.
5) Trading Limitations: The units hold by the investor can be sold and
bought only at the end of the date when its NAV has been calculated. No
mid day buying and selling of units is allowed. (Source: SBI MF handbook)


STATE BANK OF INDIA
The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.
Three years later the bank received its charter and was re-designed as the Bank of
Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of
British India sponsored by the Government of Bengal. The Bank of Bombay (15 April
1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These
three banks remained at the apex of modern banking in India till their amalgamation as
the Imperial Bank of India on 27 January 1921.
With the First Five Year Plan in 1951, development of rural India being the priority.
The commercial banks of the country including the Imperial Bank of India had till
then confined their operations to the urban sector and were not equipped to respond to
the emergent needs of economic regeneration of the rural areas. Therefore, to serve
the economy in general and the rural sector in particular, the All India Rural Credit
Survey Committee recommended the creation of a state-partnered and state-sponsored
bank by taking over the Imperial Bank of India, and integrating with it, the former
state-owned or state-associate banks. An act was accordingly passed in Parliament in
May 1955 and the State Bank of India was constituted on 1 July 1955. More than a
quarter of the resources of the Indian banking system thus passed under the direct
control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed
in 1959, enabling the State Bank of India to take over eight former State-associated
banks as its subsidiaries (later named Associates). (Source: Wikipedia)

The State Bank of India was thus born with a new sense of social purpose aided by the
480 offices comprising branches, sub offices and three Local Head Offices inherited
from the Imperial Bank.
SBI also has the following non-banking subsidiaries:
SBI Capital Markets Ltd
SBI Funds Management Pvt. Ltd
SBI Factors & Commercial Services Pvt. Ltd


SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
SBI DFHI Ltd
SBI Life Insurance Company Ltd.
SBI General Insurance
SBI FUND MANAGEMENT PRIVATE LTD.
SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country with
an investor base of over 5.8 million and over 20 years of rich experience in fund
management consistently delivering value to its investors.
SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India'
one of India's largest banking enterprises, and AMUNDI, one of the world's leading
fund management companies.
SERVICES OFFERED:
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.
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.
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. (Source: www.sbimf.com)


SBI- MUTUAL FUNDS
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.
MISSION:
Attain high standards of efficiency and professionalism and core institutional
values comparable to the best in the field.
Possess world-class standards of efficiency and professionalism rooted in the
core institutional values of the State Bank Group.
To provide a satisfying work environment with opportunities for learning, self-
development and self-actualization.
PROFILE:
SBI Funds Management Pvt. Ltd. is one of the leading fund houses in the country with
an investor base of over 5.8 million and over 25 years of rich experience in fund
management consistently delivering value to its investors.
SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India',
and AMUNDI, one of the world's leading fund management companies.
With over 222 points of acceptance, managing over Rs 42,041 crores of assets and has
a diverse profile of investors actively parking their investments across 36 active
schemes. Schemes of the Mutual Fund have time after time outperformed benchmark
indices, honoured us with 15 awards of performance including ICRA Mutual Fund
Awards continuously for 4 years for Various Schemes, Readers Digest Awards 2011
For Trusted Brand in Fund Management Category, The Lipper India Fund Awards in
2008 and 2009 For Various Schemes, CNBC TV18 - CRISIL Mutual Fund of the Year
Award 2007 For Various Schemes.
But above all it is trust of 5.8 million investors that eggs us on deliver innovative and
stable investment services, day after day. It is the driving force for our team


of investment experts to develop arid deliver products that help investors like you
achieve their financial objectives. (Source: www.sbimf.com)
COMPANY DETAILS:
Name of the Mutual Fund SBI Mutual Fund
Date of setup of Mutual Fund June 29, 1987
Name(s) of Sponsor State Bank of India
Name of Trustee Company
SBI Mutual Fund Trustee
Company Private Limited
Name of Trustees
Mr. C. M. Dixit - Director
Mr. Krishnamurthy Vijayan -
Director
Mr. Shriniwas Y. Joshi -
Director
Mr. T L Palani Kumar -
Director
Ms. Sandra Martyres - Director
Smt. Bharati Rao Director
Name of the Asset Management Co.
SBI Funds Management Private
Limited
Date of Incorporation of AMC February 7, 1992
Name(s) of Director
Dr. H. Sadhak
Dr. HK Pradhan
Mr. Fathi Jerfel
Mr. Jayesh Gandhi
Mr. Shishir Joshipura
Mr. Shyamal Acharya
Mr. Thierry Mequillet
Mrs. Madhu Dubhashi
Name of Chairman Mr. Pratip Chaudhuri
Name of Head Equity Mr. Rama Iyer Srinivasan
Name of Head-Fixed Income Mr. Rajeev Radhakrishnan
Name of Sales Head Mr. D. P. Singh
Name of Chief Investment Officer Mr. Navneet Munot
Name(s) of Chief Operating Officer Mr. K T Ravindran
Name(s) of Fund Manager
Mr. Ajit Dange
Mr. Anup Upadhyay
Mr. Dinesh Ahuja


Mr. Jayesh Shroff
Mr. R. Arun
Mr. Richard D'souza
Mr. Ruchit Mehta
Mr. Saurabh Pant
Mr. Tanmaya Desai
Ms. Nidhi Chawla
Ms. Sohini Andani
Ms. Suchita Shah
Name of Compliance Officer & Company
Secretary
Ms. Vinaya Datar
Name of Investor Service Officer Mr. C A Santosh
Name(s) of Managing Director Mr. Deepak Kumar Chatterjee
Address of AMC
191 Maker Tower E, Cuffe
Parade Mumbai 400005
Website www.sbimf.com
Email partnerforlife@sbimf.com
Name(s) of Auditors
Haribhakti & Co
M/S. Chandabhoy &
Jassoobhoy
Name(s) of Custodian
Bank of Nova Scotia
Citi Bank
HDFC Bank Ltd.
Stock Holding Corporation of
India
Name(s) of Registrar and Transfer Agent
Computer Age Management
Services Pvt. Ltd
Computronics Financial
Services India Ltd
Datamatics Financial Software
Services Ltd
Source: amfi members list


ORGANISATIONAL STRUCTURE:

Source: sbi mutual fund website
SERVICES OFFERED:
At SBI Mutual Fund we know that every investor has unique financial goals and
requires a different set of products. Which is why, we have a wide range of schemes
that fulfil every kind of investors requirements. Each scheme is managed by

Fund manager
Trust
Asset management
company
Cheif executive
officer
Investment
Chief
investment
officer
Research
analyst
Industry
analyst
company
research
Technicals
Company
visits
Fund
manager
sub
broker
Custodian
Fund
accountant
Marketing
Marketing
strategy
Advertisi
ng
Pubic
relation
Product
dev.
Product
mgmt.
Communi
cation
Sales
(Branch
/ HO)
Broker/
Agent
Customer
Customer Service
Operation/
Transaction
Processing


devising a different strategy which is reflective of the investors profile and carries
with it different risks and rewards.
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.
Hybrid Schemes
These schemes invest in a mixture of debt and equity securities in different
proportions as prescribed in the Scheme Information Document.
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.
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.
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.
EXCHANGE TRADED SCHEMES
ETFs are nothing but a basket of securities that are traded on the stock exchange.
Apart from this SBI- Mutual funds offers value added services which are,
SIP-systematic investment plan: Regular investment of fixed amount periodically.
ARP- Automatic reinvestment plan: Reinvestment of dividend at Ex-dividend
NAV.


SWP- Systematic withdrawal plan: Regular withdrawals at periodical intervals.
STP- Systematic transfer plan: Selling units of one scheme & buying units of
another scheme at regular periodical interval of the same AMC.
MARKETING STRATEGIES
Personalised Service
We believe in providing personalised service and individual attention to each client
to ensure that we understand their investment goals and help them achieve it.
Professional Advice
We offer expert advice on equity and debt portfolios with an objective to provide
consistent long-term return while taking calculated market risks. Our approach helps
our clients build a proper mix of products, and not concentrate on just one individual
product. Hence, serving their long-term objectives in the best way.
Long-term Relationship
We believe that long-term vision is the only means to steady wealth creation.
However to achieve this one also needs to take advantage of short-term market
opportunities while not losing sight of long-term objectives. Hence we partner all
our clients in realising their long-term vision.
Access to Research Reports
We provide our clients with access to the expert opinion of economists and analysts
from CRISIL, one of the leading financial research and rating companies of India.
This is because; we believe that unbiased research is the key to providing sound
advice in making informed investment decisions.
Transparency and Confidentiality
Our clients receive regular portfolio statements from us via email. They can also
view the detailed performance of their investment portfolio on the web, the access to
which is restricted to the client only. Moreover, our monitoring system enables us to
detect any unauthorised access to the portfolio.


Flexibility
To facilitate smooth dealing and consistent attention, all our clients are serviced by
their individual Relationship Executives. Relationship Executives provide you with
completely hassle-free, customised services taking care of all the administrative
aspects of your investments. This includes submission of application forms to fund
houses and a monthly report on the overall performance of your investment portfolio.
Hassle-free investment
We want to ensure that the process of investing remains hassle-free. We also want to
offer complete customised service to our clients. It is for these reasons that our
Relationship Executives take care of all the administrative aspects of investments
like helping them to submit the application forms to fund houses and other such
formalities like monthly reports on the overall state of investments of the clients and
performance of portfolios. Clients are also provided with:
Information updates on a daily basis through email
Ease of viewing their portfolio on the internet
Investment advice at their convenience
Weekly, fortnightly and monthly reports sent to them via email, on request
The freedom to contact us, anywhere in India
Access to the multiple products offered by SBI Finance through their
Relationship Executive. (Source: SBI handbook)
TAXATION POLICY:
Finance act, 1999 radically changed taxation of dividends received by investors.
Mutual funds were exempt from tax as mutual fund is an entity and passes through
an entity so no tax is charged on mutual fund (section 10(23d) of the INCOMETAX
act.
Finance act also made income (dividends) from units totally exempt from tax u/s
10(33) in the hands of all investors.
LTCG in equity fund (more than 1 year) = nil


STCG for equity fund (less than 1 year) = 15%
LTCG in debt funds = 10% or 20% with indexation
STCG in debt funds = income bracket of the client
DDT=13.51%
STT=.25%
In addition there are various schemes floated by the mutual fund houses to save tax
ELSS schemes. Like, magnum tax saving scheme by sbi mutual fund under which up
to 1 lac is exempted as per section 80 c of the INCOME TAX act.
COMPETITORS:
Mutual fund industry is currently into its stage of growth and consolidation, more
and new entrants are entering into the marketplace with a view to earn a markets
share for themselves. With 44 mutual fund houses already in the economy. Recently,
Bank of India in joint venture with AXA has entered into the mutual fund industry.
Some of the others players are as follows:
Franklin Templeton asset management private limited.
Baroda Pioneer Asset Management Company Limited
IDBI Asset Management Ltd.
UTI Asset Management Company Ltd
LIC NOMURA Mutual Fund Asset Mgmt Company Ltd
Axis Asset Management Company Ltd.
Prudential ICICI mutual fund company ltd.
Edelweiss Asset Management Limited
Apart from the above stated companies there are many other prominent players
in the mutual fund industry.(Source: amfi members list)


ACHIEVEMENTS:
SBI- mutual funds despite being one of the biggest fund houses in the country. It has
also various awards and achievements into its basket. Some of the recent
achievements of the fund house are as follows;
2012
ICRA Mutual Fund Awards 2012 For Various Schemes
2011
Readers Digest Awards 2011 For Trusted Brand in Fund Management Category
ICRA Mutual Fund Awards 2011 For Magnum Income Fund - Floating Rate Plan -
Long Term Plan
2010
ICRA Mutual Fund Awards 2010 For Magnum Global Fund
2009
ICRA Mutual Funds Awards 2009 For Magnum Tax Gain Scheme 1993
The Lipper India Fund Awards 2009 For Various Schemes
2008
Outlook Money NDTV Profit Awards 2008
The Lipper India Fund Awards 2008 For Magnum Balanced Fund Dividend
ICRA Mutual Fund Awards 2008 For Various Schemes
2007
Outlook Money NDTV Profit Awards 2007
CNBC Awaaz Consumer Awards 2007
The Lipper India Fund Awards 2007 For Various Schemes
CNBC TV18 - CRISIL Mutual Fund of the Year Award 2007 For Various
Schemes.(Source: www.sbimf.com)


PROJECT DESCRIPTION
The project undertaken in the company was largely driven in analysis about the
Investors insight towards the mutual fund and measuring performances of various
large cap Mutual fund schemes with those of the SBI Large cap funds. The
responsibilities during my tenure in the organization included:
Meeting with client and discuss about product, its performance and
convincing them to invest in the product.
Market visit, to have a real look of the market.
Arranging the client meet for the benefit of company. From these meets
we acquired lot of information, which is very helpful for the project.
To know the awareness of mutual funds among people.
To learn about functioning of mutual funds vis-a vis other investment
tools.
To know why mutual funds are better investment option than other
investment instruments.
Analyze and compare the various mutual fund schemes on various
parameters.


LITERATURE REVIEW:
The literature review refers to the research work or analysis done in past by authors
on the topic. Large no. of studies has been conducted on the growth and
performance of mutual funds in the past. The articles discussed herein explores on
the various important facts of the mutual fund industry on the whole, like: risk-
reward relationship, risk measuring methods, importance of mutual funds,
consumers attitude etc.

Irwin, Brown, FE (1965) analyzed the issues regarding investment policy, portfolio
turnover rate, performance of mutual funds and its impact on the stock markets. The
research identified that funds had a notable impact on the price movement in the
stock market. It was concluded that, on an average, funds did not perform well than
the markets and there was no persistent relationship between portfolio turnover and
fund performance.

Treynor (1965) used characteristic line for relating expected rate of return of fund
with the rate of return of a suitable market average. He coined a fund performance
measure taking investment risk into account. He later evaluated evaluated
performance of no. of fund managers and found that the fund managers were not
successfully in outguessing the market.

Sharpe, William F (1966) developed a composite measure of return and risk. He
evaluated several open-end mutual funds for a period of 19 years. The results
depicted that good performance was associated with low expense ratio and not with
the size.

Jensen (1968) came up with a composite portfolio evaluation technique concerning
risk-adjusted returns. The research evaluated the ability of several fund managers in
selecting securities. Findings indicated that most of the funds yield abnormal and
poor returns.

Fama (1972) in his research developed methods to distinguish observed return with


the ability to pick up the best securities at a given level of risk with predictions of
price movements in the market. His contributions combined the concepts from
modern theories of portfolio selection and capital market equilibrium with more
traditional concepts of good Portfolio management.

Indian Mutual Fund Industry (2009)
The research highlighted on the low customer awareness levels and financial literacy
poses the biggest challenge to channelizing household savings into mutual funds.
The study highlighted that fund houses have shown limited focus on increasing retail
penetration and building retail AUM. There is a need for planning, financing and
executing initiatives to increase the awareness among the investors to increase
mutual fund penetration in the economy. Investors have shown low interest in
mutual funds continuously due to fee and expenses in the form of entry and exit load.
The mutual fund industry aim to increase the focus on consumer, cost management
and with low government involvement enabling the industry to achieve
sustained, profitable growth.

Indian MF industry has immense growth potential (2012)
The article focused on the rough patch the mutual fund industry is undergoing
through. It furthers explain the difficult conditions prevailing for the various fund
house to exist in the industry. The ET officials explain what steps are needed for the
industry to strive and sustain by asking questions to the industry veterans.

Gupta Ramesh (1989) evaluated fund performance comparing the returns earned by
different schemes having similar risk. He developed a risk-return relationship to
make compare funds with different risk levels. His study decomposed total return
into return from investors risk, return from managers risk and target risk.

Shashikant Uma (1993) research examined that rationale and relevance of mutual
fund operations in Indian Money Market. The research pointed out that money
market mutual funds with low-risk and low return offered conservative investors
with a better short-term investment option.


Sahadevan S and Thiripalraju M (1997) stated that, mutual funds provide
opportunity for the middle and lower income groups to acquire shares. The study
also identified shift in the preference from physical assets to financial assets and shift
in savings from bank deposits to mutual funds was also noticed.

Sanjay Kant Khare (2007) that investors could purchase stocks or bonds with much
lower trading costs through mutual funds and enjoy the advantages of diversification
and lower risk. The research revealed that savings in mutual fund is increasing and
preference for mutual fund has increased with the individuals. The research also
evaluated various schemes of different fund house on the parameters established by
other authors.

Indias Mutual Fund Industry (2007)
The mutual fund industry has shown impressive growth with increase in total assets
under management. The research shows increase in the no. of investors from the
middle class and to double by 2020. The mutual fund market has bright future and
prospect ahead. The research provides an overview of the assets managed by the
fund houses. The research explains the legal framework in which mutual fund
industry works. It also discusses the current as well as the recent trends in the near
future.
The Fall and Rise of Mutual Funds in India (2007)
The article focuses on the entire journey of mutual fund industry in India, its origin,
its fall & rise. It also predicts what the future may hold for the mutual fund investors
in the long run.

Indias Capital Markets: Unlocking the door to future growth (2007)
The article focuses on the analysis of supply of bonds, equities and derivatives and
demand conditions (household and institutional investors) in Indias capital markets.
The research on the class of investors in Indian market and risk and return objectives
of the investors. The research concludes with the link between economic growth and
capital markets.


Downside Risk Analysis of Indian Equity Mutual Funds: A Value at Risk
Approach (2009)
The research highlights on the importance of VaR as a measure of downside risk
for Indian equity mutual funds, which is completely ignored in the performance
measurement of the mutual funds. The study focused on three parametric models
and one non parametric model and weekly returns of a sample of equity mutual fund
schemes in India, to know their weekly VaR.

Making Mutual Fund Work for You (2008)
The research work focuses on the concept, operations and advantages of mutual
funds and the rights of mutual fund unit holders to promote financial literacy among
public regarding Indian Mutual fund Industry. It focuses on the concept of mutual
fund, its advantages and risks associated with the mutual funds, spread awareness
among investors regarding their rights as mutual fund unit holders.

As the mutual fund industry has a significant role, there is a great need to study the
performance of mutual fund industry along with the performance of the schemes.
The mentioned studies indicate that the evaluation of mutual funds has been a matter
of concern in India for the researchers, Academicians, fund managers and financial
analysts. Some of the important facts and terminology from the studies are discussed
below ;
Risk and Reward Relationship
Risk and reward go hand in hand. Most investments involve some element of risk.
Risk refers to the uncertainty about the potential performance that can sometimes
cause concern. But, risk can be managed and minimised both at the same time. Most
of the investors invest money to get returns for on their investment with the best
suited level of risk. If one wants to enjoy higher returns for the investment, then he
has to take more risk in comparison to lower returns with low level of risk. That is
why, understanding the Risk profile is important.
What is risk?
To begin with, let us understand the concept of risk on an investment. Consider the


returns generated by two equity stocks, A and B, over a 5-year period.
Stock A: 25%, 12%, 4%, 22%, and 7%.
Stock B: 16%, 13%, 11%, 17% and 13%.
Both Stock A and Stock B have provided average returns of 14% during the 5-year
period. However, it is clearly evident that Stock A is a riskier investment because its
returns have fluctuated more widely than that of Stock B. In other words, higher the
volatility (variability) of the returns, greater will be the risk of the investment.
Risk refers to the fluctuation or variability in returns and the chance that your
investment will make a loss in the principal amount, or return less than you expect
from the investment, or the investment does not even keep up with inflation making
it is worth less over time. So risk has two sides: it causes change in the value of
investments, but it is also the reason that one can expect to earn higher returns.
RISK AND RETURN TWO SIDES OF COIN
Risk and Returns go hand in hand. Different categories have different level of risk.
Higher the risk taken higher is the chance of good and aggressive returns and vice-
versa. Mutual Funds offer a range of schemes that cover different levels of Risks Vs
Returns.

Types of risk:
Mutual funds also have an element of risk. Mutual funds depend on the working of


market; therefore risk is inherent to them. No one can wholly remove the risk from
mutual fund but it can be minimised through diversification. Mutual fund schemes
have varying degrees of risk, depending upon the funds management style and its
objective; its important that one should know the different types of risk involved:
Volatility: As the instruments that the funds invest in are marked to market (tradable
at a certain price in the market), their NAVs are automatically subject to the price
movements of these securities. Which means the NAV may move down just as
surely as it moves up. Neither the principal nor the returns are assured: in fact, SEBI
does not allow it.
Scrip Concentration: Although one of the key benefits of mutual funds is that
investments are diversified across many instruments, schemes sometimes concentrate
on a few scrips. This is risky, as the NAV movement will then depend largely on
the performance of these few securities. A rise in even a few of these scrips can
push up the NAV considerably; a fall in even one pulls it down as sharply.
Sector concentration: The fund needs to diversify across sectors as wellunless
otherwise mandated, as in a sector fund. This ensures that its fortunes do not ride on
a few sectors alone. For example: IT boom in 2000, based on phenomenal gains
made by InfoTech companies during this period, many equity-diversified funds went
overboard on IT. All went well till the sector crashed, NAVs came tumbling down
and investors incurred huge losses. Avoid funds that chase hot sectors.
Large individual holding: Its important for a fund to have a diversified investor
base. This ensures that the funds investment and management policies are not
skewed towards a few select investors.
Exchange risk: Exchange rates of foreign currency sometimes lead to risk as now
days a large no. of companies are earning revenue in the form of foreign currencies.
Changes in exchange rates may have a positive or negative impact on companies
which in turn would have an effect on the investment of the fund.
Strategy risk: This refers to the balanced fund dividing its corpus between equity
and debt. Although SEBI doesnt stipulate the debt-equity proportion for balanced


funds, most balanced funds are equity-oriented and, therefore, invest between 40
and 60 per cent in equity instruments and the balance in debt. It is okay if the fund
breaches these limits once in a while, but if it does so regularly, avoids it.
Continuous breaching of set limits is a warning, as the deviation from mandate can
give returns inconsistent with expectations
Market Risk: The risk associated with the share market. The funds have an
impact on price due to ups and downs of the share market. The change in price of
NAV of a fund is known as "market risk". It is also known as systematic risk.
Interest Rate Risk: The rate of return or interest depends on the performance of the
company which affects the rate of return of the scheme. A diversified portfolio can
help in offsetting these changes.
Credit Risk: Credit risk is when the fund to which he has lend the company fails to
give the amount or returns on time and as required. If the company is not doing well
and is going through a rough patch, the company may not be able to repay the
principal amount to the fund back.
Liquidity Risk: Liquidity risk arises when the holding held by the fund does not
convert into cash or the stock is difficult to sell in the market. Therefore, it is always
advisable to have some liquid securities in the portfolio so that risk can be mitigated.
Diversification also helps in mitigating the liquidity risk.
Inflation Risk: Inflation means rise in the price of the goods and services in the
country which leads to "loss of purchasing power" with the consumer. Inflation
risk also occurs when prices rise faster than your returns.
Changes in the Government Policy: Changes in Government policy especially in
regard to the tax benefits may impact the business prospects of the companies
leading to an impact on the investments made by the fund.
Loss of key professionals and inability to adapt rapid changes: An industry key
asset is often the personnel who run the business i.e. intellectual properties of the key
employees of the respective companies. Given the ever-changing complexion of few


industries and the high obsolescence levels, availability of qualified, trained and
motivated personnel is very critical for the success of industries in few sectors.
Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities.
The per unit NAV is the net asset value of the scheme divided by the number of
units outstanding on the Valuation Date.

Net assets = Assets Liabilities
Assets = Market Value of investment + receivables + Accrued income +
Other Assets
Liabilities = Accrued expenses + Payables + Liabilities
NAV of a Unit = Net assets of the scheme / No. of units outstanding
Factors affecting NAV:
Variation in portfolio:
Variation in the investment portfolio also causes change in the NAV of the fund,
which may affect the overall value of the fund. Securities in the fund play an
important role depends on the performance of the stock choosen by the fund manager
in the portfolio.
Sale and purchase of units:
Sale and repurchase of units also leads to change in the overall NAV of the fund.
For example, security X is priced at Rs100 and we sell this security and after one
week when the price of the security comes to Rs80 we buy back it, keeping all other
investments intact, then the NAV of the portfolio will come down, which in turn will
result in better valuation for the fund.
Valuations of assets:
The value of the underlying asset, whose portfolio the fund has managed or is
managing, with the change in the value of asset, the overall NAV of the fund can
also change.
Cost associated with the Fund


The cost also leads to fluctuation in the NAV of the fund. The charges which are
charged during the selling of a security are known as Sales charges. Different funds
have different charge. Funds having low expense ratios are preferred as they
decrease the cost.
Ways to Measure Risk
Modern portfolio theory states five main indicators of investment risk that are used
for the analysis of stocks, bonds and mutual fund portfolios. These are alpha, beta, r-
squared, standard deviation and the Sharpe ratio. These are statistical measures and
historical predictors of volatility. It is standard financial and academic methodology
which is used for assessing the performance of equity, fixed-income and mutual fund
investments by comparing it with market indexes or benchmarks.
These five risk measurements help investors determine the risk-reward parameters of
their investments.
Standard deviation
It measures the variability i.e. how much the returns will deviate from the average.
The greater the standard deviation, the greater the variability in the returns i.e. higher
the risk.
Alpha:
Alpha is a measure of an investment's performance on a risk-adjusted basis. It takes
the volatility (price risk) of a security or fund portfolio and compares its risk-adjusted
performance to a benchmark index. The excess return of the investment relative to
the return of the benchmark index is its "alpha." A positive alpha of 1.0 means the
fund has outperformed its benchmark index by 1%. %.
Beta
It is a widely used measure of risk. It is the true relationship between returns given
by a security and the benchmark index. If the beta ratio for a stock is 1.4 then that
stock can rise or fall 1.4 times the market, i.e. it is more volatile


Sharpe ratios
This ratio measures how much return a security has given per unit of risk, where risk
is measured by Standard Deviation. It measures the risk adjusted performance of any
security against a risk-free asset like cash.
The formula is SR (x) = | R - r| / Std Dev (R)
x is amount of investment
R is the average annual rate of return of x
r is the best available rate of return of a risk-free like cash
Std Dev(R) is the standard deviation of R
The higher the Sharpe ratio, the better the risk / reward relationship of the investment
Treynor Ratio
This Index is a ratio of return generated by the fund over and above risk free rate of
return during a given period and systematic risk associated with it (beta).
Symbolically, it can be represented as:
Treynor's Index (Ti) = (Ri - Rf)/Bi.
Where, Ri represents return on fund, Rf is risk free rate of return and Bi is beta of the
fund.
All risk-averse investors would like to maximize this value. While a high and
positive Treynor's Index shows a superior risk-adjusted performance of a fund.
Comparison of Sharpe and Treynor
Sharpe and Treynor measures are similar in a way, since they both divide the risk
premium by a numerical risk measure. The total risk is appropriate when we are
evaluating the risk return relationship for well-diversified portfolios.
On the other hand, the systematic risk is the relevant measure of risk when we are
evaluating less than fully diversified portfolios or individual stocks. For a well-


diversified portfolio the total risk is equal to systematic risk. Rankings based on total
risk (Sharpe measure) and systematic risk (Treynor measure) should be identical for
a well-diversified portfolio, as the total risk is reduced to systematic risk. Therefore,
a poorly diversified fund that ranks higher on Treynor measure, compared with
another fund that is highly diversified, will rank lower on Sharpe Measure.
R-squared ratio:
It is a statistical measure that represents the percentage of a fund portfolio's or
security's movements that can be explained by movements in a benchmark index.
For fixed-income securities and their corresponding mutual funds, the benchmark is
the Govt. Treasury Bill, and, likewise with equities and equity funds, the benchmark
is the S&P500 Index.
R-squared values range from 0 to 1. Higher the R-squared, lower the risk of the fund
and better diversified
Lower R-square indicates, higher the risk.
Fama ratio:
The fama ratio is the extension of Jensens alpha. This model compares the
performance, measured in terms of returns, of a fund with the required return
commensurate with the total risk associated with it.
Higher value of fama ratio indicates that fund manager has earned returns well above
the return commensurate with the level of risk taken by him.
Manage Asset Allocation:
One can reduce risks, by having a proper asset allocation plan. It is not a 100%
guaranteed way of removing all kinds of risks, but it is a way by which One can
protect Oneself from market fluctuations by considering them and balancing his
investment portfolio. Proper asset allocation takes all kinds of securities into
consideration and uses them effectively to achieve higher returns at a given level of
risk


WAYS TO SAFEGUARD:
Regular Investment: One can protect oneself against market fluctuations over a
long period of time by investing regularly.
Understand the Risk profile: It is important for one to understand your risk profile.
Risk profile depends on two things:
Risk capacity: Risk capacity depends on Ones financial situation and how
much risk you can take.
Risk tolerance: It depends on how much risk one can take psychologically.
Set the investment objectives: Work out how much return will make one happy and
meet Ones needs. What are the future goals and what kind of investments can help
achieve these goals?
Know the timeframe: The amount of time available to invest is also critical in
determining which investments may suit Ones needs and in managing investment
risks. The longer one has to invest, generally the more risks one can take with your
investments, as there is more time for one to ride out the peaks and troughs of
investment performance.
Diversify the investments: By spreading investments around, one is not as affected
by (or exposed to) the movements of just one market, some of which may rise,
while others may fall.


THE INVESTOR INSIGHT A Primary Research

The Mutual Funds Industry is relatively new in India. The purpose of the research
was to understand the Investors awareness and viewpoint of Mutual funds as an
investment alternative.
1. OBJECTIVES OF THE STUDY

I. To know the awareness of MUTUAL FUND among people.

II. To see the interest of people in investing in MUTUAL FUNDS.

III. To know the investment behaviour of investors in MUTUAL FUND according
to different age group.

IV. To ascertain the percentage of income the investors invest in MUTUAL FUND

V. To know the different attitudes of people regarding risk, rate of return, period of
investment.

VI. To know the investors preferred financial product for investment.

VII. Why ELSS scheme is better investment option than other instruments.

2.TYPE OF RESEARCH

Descriptive Research: The study falls under the category of Descriptive research.
Descriptive research includes survey and fact finding inquiries of different kind. It is
the description of the state of affair as it exists at present. The main characteristics of
this method are that the researcher has no control over the variables; he can only
report what has happened or what is happening. The method of research used in this
research was survey method.


The research assignment under focus is aimed at gathering some vital information of
the investors investment pattern which could be through a structured questionnaire
which covers aspects like individual role in customer investment decisions etc.

3. DATA SOURCE
The primary data collection was the most important part of the project. The include
collecting the information through field research for collecting information, a personal
interview was conducted with the help of questionnaire the required information was
collected for the respondents.
4. RESEARCH INSTRUMENT
The questionnaire is the most common instrument used to collect the primary date. A
questionnaire consists of set of questions presented to the respondents for the answers.
In marketing research careful choice of the questions and their form wording and their
sequence is important.
5. SAMPLING UNIT
This research was carried in only Chandigarh.
For this research, target respondent were,
Retail
High Net worth
Corporate
The reason for selecting this sampling unit was to find out the consumer behaviour of
mutual fund amongst the retail and corporate investors. It was presumed that the
sampling units states above only fall in this category.
6. SAMPLING SIZE
The Sample size of the Study is 74 people.


7.FINDINGS AND ANALYSIS
AWARENESS OF MUTUAL FUND OUT OF 74 PEOPLE

CHART I
In chart I the awareness of mutual fund is determined in the percentage terms only 7%
of the total population are not aware of MUTUAL FUNDS, the mutual funds are very
common with the public. Housewives were the majority who were unaware of the
mutual funds.
ANALYSIS AS PER AGE:
AGE NO. OF PEOPLE PERCENTAGE OF
PEOPLE
Less than 35 yrs. 10 14%
35- 50 yrs. 40 58%
Above 50 yrs. 19 28%

CHART II
93%
7%
Awareness of Mutual Funds Out of 74
people
Yes
No
10
40
19
NO. OF PEOPLE
Less than 35 yrs.
35- 50 yrs.
Above 50 yrs.


As per the above analysis, only 14% of respondents who are below 35 years are
interested to invest in MF. The reasons being that there are more needs to be fulfilled
for this age group viz. education, entertainment etc. and therefore these people do not
have surplus funds to invest in saving schemes or Mutual Funds etc.
The persons within the age group of 35-50 years only 58% of respondents are
interested to invest in MF. These persons have more investing potential than their
counterparts and they want to increase their income through investing in Mutual
Funds.
The persons having the age equal to or above 50 years, only 28% of respondents are
interested to invest in MF. The reasons being that these persons are more inclined to
age-old principals and want to invest in schemes giving fixed returns as compared to
investing in Mutual Fund.
PERCENTAGE OF TOTAL INCOME INVESTED
Percentage of the total
income invested
No of people Percentage of people
Over 50% 1 1%
30-50% 4 5%
10-30% 38 56%
Less than 10% 26 38%

Chart III
a. From the above table it is seen that majority of the sample invest between 10%
to 30% of their income because of many other needs to be fulfilled like childs
education, demands and daily spending.
1
4
38
26
No of people
Over 50%
30-50%
10-30%
Less than 10%


b. There are very few people who invest above 50% of their income and majority
of them having business.
c. Many people invest below 10% of their income which include students and
individuals who have just started earning.

ON THE BASIS OF PROFESSION:
INVESTORS CATEGORY No. of people in %
IT SECTOR 35%
DOCTOR 20%
STUDENT 7%
JEWELLERS 3%
REAL ESTATE AGENTS 6%
HOUSEWIFES 25%
RETIRED 9%

Chart IV

In this Pie chart it is clear that professional people are more intended to invest in
comparison of business people though they are highly risk taker. Business people
are more inclined towards investing in real estate, land etc.
The majority of housewives in the sample study were influenced to invest in the
mutual funds by their husbands, as they influence the decisions of their wives.

35%
20%
7%
3%
6%
25%
9%
No.of people in %
IT SECTOR
DOCTOR
STUDENT
JEWELLERS
REAL ESTATE AGENTS
HOUSEWIFES


PERCEPTION ABOUT MUTUAL FUND:

PERCEPTION NO. OF PEOPLE %AGE OF PEOPLE
SAFE 25 36%
RISKY 30 44%
OTHERS 14 20%

CHART V.

a. In chart V it is being determined that more people prefer mutual funds as a
risky option to invest in comparison to other instruments.
b. In the study it was found that 25 people out of 69 were interested in safe
options than the risky option.
c. Rest of the people preferred other option stating reason as risk n safe go hand
RISK TAKEN BY DIFFERENT AGE GROUP

AGE GROUP
HIGH
RISK MEDIUM RISK
LOW
RISK
Less than 35 years 5 3 2
35- 50 years 13 17 10
Above 50 years 5 7 7

25
30
14
NO. OF PEOPLE
SAFE
RISKY
OTHERS
0
5
10
15
20
HIGH RISK MEDIUM RISK LOW RISK
Less than 35 years
35- 50 years
Above 50 years


Chart VI

a) In chart VI the risk taking ability of younger is highest with 50% willing to take
risk. This is due to people of this age group having lesser responsibilities.
b) The age group from 35 to 50 yrs. Are willing to take medium risk and high risk.
c) An interesting fact about Above 50 years is that they are also willing to invest in
risky options. However they opt more in monthly income and regular income
schemes.

RETURN EXPECTATION:
INCOME
INVESTED
HIGH RETURNS MODERATE
RETURNS
LOW RETURNS
Over 50% - 1 -
30-50% 1 3 -
10-30% 14 19 5
Less than 10% 14 8 4

CHART VII
As we can see in the chart, investors who invest more than 50% expect moderate
returns as risk and return are directly related to each other.
0
2
4
6
8
10
12
14
16
18
20
Over 50% 30-50% 10-30% Less than
10%
HIGH RETURNS
MODERATE RETURNS
LOW RETURNS


High returns are liked by people who invest less amount of money, i.e. less than 10% ,
whereas moderate are preferred by people investing between 10 to 30%.
Low returns are least expected and this is due to loss they have suffer in past.
SCHEME PREFRENCE:
They are various schemes in mutual fund:
SCHEMES NO. OF PEOPLE %AGE OF PEOPLE
GROWTH 12 17%
INCOME 22 32%
BALANCED 14 20%
MONEY MKT. 8 12%
TAX SAVING 10 14%
GILT 3 5%

Chart VIII
Above chart clearly shows that more no. of investors are interested in regular income
from the mutual fund so as to fulfill their needs and demands on regular basis. Money
market are preferred as they are easy to convert into cash and are less risky.

INVESTMENT IN FINANCIAL PRODUCTS

FINANCIAL INSTRUMENTS % OF INVESTMENT
BANK 40%
INSURANCE 10%
STOCK MARKET 15%
BONDS & DEBENTURE 3%
12
22
14
8
10
3
NO. OF PEOPLE
GROWTH
INCOME
BALANCED
MONEY MKT.
TAX SAVING


PPF 7%
NSC 5%
POST OFFICE SAVING SCHEMES 8%
REALESTATE 2%
GOLD 5%
CHIT FUND 5%

Chart IX
a. In this chart it is clear that people mainly invest and keep their money in
banks. Stock market came into existence only from early 90s thats why the
percentage investment in stocks is low as compared to banks.
b. People generally invest in Risk free financial product like PPF, NSC etc.
c. Investment in Insurance is also preferred by people because it is not a risky
instrument.
INVESTMENT OBJECTIVE:
It can be seen from the following graph that the main investment objective of most
of the investors is good returns and capital appreciation.
Objective No. of people Percentage of people
Safety 17 24%
Good return 25 37%
Tax benefit 4 6%
40%
10%
15%
3%
7%
5%
8%
2%
5%
5%
% OF INVESTMENT
BANK
INSURANCE
STOCK MARKET
BONDS & DEBENTURE
PPF


Capital appreciation 10 14%
Liquidity 13 19%

Chart X
As the above chart clearly explains that good return are preferred by most of the
people if they invest in mutual funds. It was also observed people had more
requirements, so they wanted to have good return.
CHANNEL THROUGH WHICH DECISION IS MADE:
Channel No. of people Percentage of people
Newspaper/magazine 8 12%
Friends suggestion 5 7%
Self decision 27 38%
Broker/agent 18 26%
Television 5 8%
Others 6 9%

Chart XI
17
25
4
10
13
No. of people
Safety
Good return
Tax benefit
Capital apprecitaion
Liquidity
8
5
27
18
5
6
No. of people
Newspaper/magazine
Friends suggestion
Self decision
Broker/agent
Television


As above chart clearly explains that majority of respondents take self decision ones
they start investing in mutual funds. Whereas 26% of respondents take help
of Brokers/Advisors when it comes to final decision of investing. Therefore, it shows
that AMCs in general and SBI in particular have to be more informative so that they
can provide best material, service and information to facilitate subsequent investment
of investors.
DECISION ABOUT SELECTING FUND HOUSE:
No. of people %age of people
BRAND NAME 22 32%
GOOD SERVICE 17 25%
HIGH YIELD 13 19%
ADVERTISEMENT 10 14%
OTHERS 7 10%

Chart XII
The pie chart above clearly depicts the basis on which the consumer takes decision
regarding the fund house, it was found that people preferred brand name more than
services and high yield, whereas younger generation was willing to take risk with high
yield as there basis on decision. Others take decision where they have there relative or
some trusted person working or on friends decision.

22
17
13
10
7
No. of people
BRAND NAME
GOOD SERVICE
HIGH YIELD
ADVERTISEMENT
OTHERS


DIFFERENT INVESTMENT OPTIONS Vs. ELSS SCHEME
On the basis of the findings, we can compare the mutual funds with other investment
options available in the economy.
Parameters P.P.F P.O.T.D NSC P.O.M.IS Bank
deposit
(F.D)
Company
Deposit
ELSS
Scheme
Other
mutual
fund
schemes
Interest rate 8.80% 8.50% 8.60% 8.50% 9.00% 7-12% 47% 20-25%
annualise
d over
long
period.
Interest /
returns receipt
On
maturity
Annually

On
maturity
Monthly On
maturity
On
maturity
Depends
on
performa
nce
Depends
on
performa
nce
Tenure 15 yrs 1-5 yrs 6 yrs 6 yrs 6
months
to 10
yrs
1 to 5 yrs Min. 3
yrs
Open
ended or
close
ended
Tax Benefits Under
80 c
Nil Under
Sec. 80
c
Nil Nil Nil Tax free
(both
capital
gains and
dividend)
Dividend
s- exempt
STCG/
LTCG
exists
Diversificatio
n of funds
No No No No No

No Yes Yes
Capital
appreciation
No No No No No No High
probabilit
y of
capital
appreciati
High
probabilit
y of
capital
appreciati


on on
Minimum
investment
INR
500
INR 200 INR
100
INR 1500 INR
1000
INR 5000 500 500
Maximum
investment
1 lac Nil Upto
10000
4.5 Lac
(individual
)
Nil Nil 1 lac P.A 1 lac p.a

RETURN, SAFETY, VOLATILITY, LIQUIDITY OF DIFFRENT INVESTMENT
OPTIONS:
Investment Option Return Safety Volatility Liquidity
Equity High Low High High
FI Bonds Moderate High Moderate Moderate
Bank Deposits,
PPF
Moderate High Low High
Life Insurance Low High Low Low
Gold Low High Moderate Moderate
Real Estate High Moderate High Low
Mutual Funds High High Moderate High


COMPARATIVE ANALYSIS OF LARGE CAP FUNDS OF
SBI WITH OTHER FUND HOUSES:
Under this chapter we will study the analysis of different large cap mutual funds
schemes floated by SBI (state bank of India) and other premiere financial institutions
in India, such as Franklin, JP Morgan, HDFC mutual fund, ICICI etc.
WHY COMPARITIVE ANALYSIS?
Return alone should not be considered as the basis of measurement of the
performance for a mutual fund scheme, it should also include the risk taken by the
fund manager because different funds will have different levels of risk attached to
them. Risk associated with a fund, in a general, can be defined as variability or
fluctuations in the returns generated by it. The higher the fluctuations in the returns of
a fund during a given period, higher will be the risk associated with it. These
fluctuations in the returns generated by a fund are resultant of two guiding forces.
First, general market fluctuations, which affect all the securities, present in the
market, called market risk or systematic risk and second, fluctuations due to specific
securities present in the portfolio of the fund, called unsystematic risk. The Total
Risk of a given fund is sum of these two and is measured in terms of standard
deviation of returns of the fund. In order to determine the risk-adjusted returns of
investment portfolios, several eminent authors have worked since 1960s to develop
composite performance indices to evaluate portfolio by comparing alternative
portfolios within a particular risk class. But before that we need to understand all the
components that are used to explain the ratios like Beta, Treynor, Sharpe, and Jensen
etc. the components are as follows:
The funds will be studied on the following parameters:
Investment Objective.
Fund Manager.
Top 10 holdings.
Top 5 Sectors.
Net Asset Value.
Inception Date.


Entry & Exit Load Structure.
Investment Details.
AAUM (Average assets under management)
Benchmark Index.
Statistical Ratios:
P/E & P/Bv (Price to Book Value)
Dividend Yield.
Market Capitalization.
Performance & Rank of fund in comparison to other funds in same
category by CRISIL, rating institution.
CAPITALISATION:
Market Capitalisation refers to the no. of outstanding shares of the company into stock
price per share.
No. of outstanding shares* share price

LARGE CAP FUNDS:
Large cap companies are the big Kahunas of the financial world. These are the top
100 companies on the share market having market capitalisation more than 2000
crores. Like SBI, Wal-Mart, HDFC bank, TCS.

SBI MUTUAL FUND
SBI was the first non UTI mutual fund company in India incorporated on June 29,
1987. SBI MUTUAL FUND is one of the dominant players in the mutual fund space.
The SBI mutual funds are handled by SBI funds management pvt. Ltd.
Trustee: SBI Mutual Fund Trustee Company Private Limited
Chairman: Mr. Pratip chaudhari
Chief Executive officer: Mr. Deepak kumar chaterjee
Chief Investment Officer: Mr. Navneet munot
Compliance Officer: Ms. Vinaya Datar


Investor service officer: Mr. C.A Santosh
As of 31
st
March, 2012 the fund has Assets Of Rs. 42041 crores under management.

SBI MAGNUM EQUITY FUND:
SCHEME CATEGORY: An open ended equity scheme
INVESTMENT OBJECTIVE: To provide the investor long-term capital
appreciation by investing in high growth companies along with the liquidity of an
open-ended scheme through investments primarily in equities and the balance in debt
and money market instruments.
ASSET ALLOCATION:
EQUITY 90.78%
DEBT -
MONEY MARKET INSTRUMENT 9.22%
CASH/ CALL -

TOP 5 SECTORS
SECTORS % TO NAV
AUTOMOBILE 9.85%
ENERGY 12.26%
FINANCIAL SERVICES 24.60%
PHARMA 10.53%
IT 12.97%

TOP 10 HOLDINGS:
EQUITY SECTOR ASSET %
ICICI BANK BANKING/FINANCE 9.71
INFOSYS TECHNOLOGY 7.14
ITC TOBACCO 6.64
BHARTI AIRTEL TELECOM 5.40
SBI BANKING/FINANCE 5.37


DR REDDYS LABS PHARMACEUTICALS 4.76
HDFC BANK BANKING/FINANCE 4.61
RELIANCE OIL & GAS 4.18
TCS TECHNOLOGY 4.09
TATA MOTORS AUTOMOTIVE 3.53

FUND INFORMATION:
FUND MANAGER MR. R. SRINIVASAN
INCEPTION DATE 01/01/1991
BENCHMARK INDEX S&P CNX NIFTY INDEX
RANKING 2
nd

INVESTMENT DETAILS

ENTRY LOAD N.A.
EXIT LOAD WITHIN 1 YEAR-1%
AFTER 1 YEAR- NIL
MINIMUM APPLICATION AMOUNT RS. 1000
INVESTMENT PLAN / OPTIONS GROWTH
DIVIDEND
LOCK IN PERIOD NIL
REDEMTION PROCEEDS WITHIN 3 DAYS
AAUM 491.37 CRORES
NAV GROWTH 42.63
NAV DIVIDEND 28.64

STATISTICS:
STANDARD DEVIATION 25.45%
BETA 0.90
R-SQUARED 0.95
SHARPE RATIO 0.73
TYENORS RATIO 0.24
FAMA RATIO 0.11


P/E RATIO 20.87
P/BV RATIO 4.19
DIVIDEND YIELD RATIO 1.26
EXPENSE RATIO 2.50
MARKET CAPITALISATION 92933.30 CRORES

1. As beta is less than 1 the securities price will be less volatile than market.
2. The Sharpes ratio which is .73 in this case which is high, so it means it has
adjusted the risk quiet well.
3. R-squared ration of 0.95 indicated near perfect correlation.
4. Dividend yield stands at 1.26 which is above average.
5. Tyenor ratio of 0.24 indicates comparatively less risk which directly relates to more
returns.
6. Fama ratio of 0.11 which indicates selection of fund by fund managers are not
performing well.
SBI BLUE CHIP FUND:
SCHEME CATEGORY: An open ended growth scheme.
INVESTMENT OBJECTIVE: To provide investors with opportunities for long-
term growth in capital through an active management of investments in a diversified
basket of equity stocks of companies whose market capitalization is at least equal to
or more than the least market capitalized stock of BSE 100 Index.

ASSET ALLOCATION:
EQUITY 93.18%
DEBT -
MONEY MARKET INSTRUMENT -
CASH/ CALL 6.82%

TOP 5 SECTORS


SECTORS % TO NAV
AUTOMOBILE 10.73%
ENERGY 13.87%
FINANCIAL SERVICES 20.91%
CONSUMER GOODS 10.06%
PHARMA 11.16%

TOP 10 HOLDINGS:
TATA MOTORS AUTOMOTIVE 5.60
YES BANK BANKING/FINANCE 3.87
TCS TECHNOLOGY 3.80
DIVIS LABS PHARMACEUTICALS 3.76
HDFC BANKING/FINANCE 3.22

FUND INFORMATION:
FUND MANAGER MS. SOHINI ADNANI
BENCHMARK INDEX BSE 100 INDEX
RANKING 3
rd

INVESTMENT DETAILS

ENTRY LOAD N.A.
EXIT LOAD NIL


DIVIDEND
LOCK IN PERIOD NIL
AAUM 706.80 CRORES
NAV GROWTH 13.79
NAV DIVIDEND 10.78

STATISTICS:
BETA 0.94
R-SQUARED 0.98
SHARPE RATIO 0.52
TYENORS RATIO 0.15
FAMA RATIO 0.01
P/E RATIO 26.870
P/BV RATIO 3.57
EXPENSE RATIO 2.50

2. The Sharpes ratio which is .52 in this case is quiet moderate as compared to its
peers, so it means it has adjusted the risk quiet well.
5. Tyenor ratio of 0.15 indicates more risk which directly relates to more returns.
6. Fama ratio of 0.01 is very low which indicates very low returns compared to risk
associated with it.
BIRLA SUNLIFE
Birla Sun Life Asset Management Company Ltd. (BSLAMC), the investment
managers of Birla Sun Life Mutual Fund, is a joint venture between the Aditya Birla


Group and the Sun Life Financial Services Inc. of Canada. The joint venture brings
together the Aditya Birla Group's experience in the Indian market and Sun Life's
global experience. Since its inception in 1994, Birla Sun Life Mutual fund has
emerged as one of India's leading Mutual Funds managing assets of a large investor
base..
Trustee: Birla Sun Life Trustee Company Private Limited
Chairman: Mr. Donald Stewart
Chief Executive officer: Mr. Anil Kumar
Chief Investment Officer: Mr. A. Balasubramaniam
Compliance Officer: Mr. Rajiv Joshi
Investor service officer: Mrs. Molly Kapoor
As of 31
st
March, 2012 the fund has Assets Of Rs. 61142.50 crores under
management.
BIRLA SUNLIFE TOP 100 (G)
SCHEME CATEGORY: An open ended scheme.
INVESTMENT OBJECTIVE: An open-ended growth scheme with the objective to
provide medium to long term capital appreciation, by investing predominantly in a
diversified portfolio of equity and equity related securities of top 100 companies as
measured by market capitalization.

ASSET ALLOCATION:
EQUITY 98.3%
DEBT -
CASH/ CALL 1.7%

TOP 5 SECTORS:


SECTOR %
BANKING/FINANCE 22.57
TECHNOLOGY 9.70
PHARMACEUTICALS 8.52
AUTOMOTIVE 7.91
OIL & GAS 7.55
ENGINEERING 7.29
FUND INFORMATION:
FUND MANAGER MR. MAHISH PATIL
BENCHMARK INDEX S&P CNX NIFTY
RANKING 2
nd

INVESTMENT DETAILS
ENTRY LOAD N.A.
EXIT LOAD 1% WITHIN 365 DAYS
DIVIDEND
LOCK IN PERIOD NIL
AAUM 290.11 CRORES
NAV GROWTH 21.27
NAV DIVIDEND 13.10

STATISTICS:
BETA 0.84
R-SQUARED 0.96
SHARPE RATIO 0.06
TYENORS RATIO 0.25
FAMA RATIO 0.11


P/E RATIO 19.08
P/BV RATIO 4.51
DIVIDEND YIELD 1.47
EXPENSE RATIO 0.93

2. The Sharpes ratio which is .06 in this case which means it has not adjusted for the
risk.
3. R-squared ration of 0.986indicated near perfect correlation.
4. Dividend yield stands at 1.47 which is above average as more risk is associated
with the fund.
6. Fama ratio of 0.01

ICICI MUTUAL FUNDS
ICICI Prudential Asset Management Company Ltd. is a joint venture between ICICI
Bank, Indias second largest commercial bank & a well-known and trusted name in
the financial services in India, & Prudential Plc, one of the United Kingdoms largest
players in the financial services sectors.
In a span of over 18 years since inception and just over 13 years of the Joint Venture,
the company has forged a position of preeminence as one of the largest Asset
Management Companys in the country, contributing significantly towards the growth
of the Indian mutual fund industry.
Trustee: ICICI prudential trust Limited
Chairman: Ms. Chanda kochar
Chief Executive officer: Mr. Nimish shah
Chief Investment Officer: Mr. S. naren
Compliance Officer: Ms. Supriya sapre
Investor service officer: Ms. Kamaljeet saini


As of 31
st
March, 2012 the fund has Assets Of Rs 68718.49 crores under
management.
ICICI PRUDENTIAL TOP 100 FUND
SCHEME CATEGORY: An open ended equity fund scheme
INVESTMENT OBJECTIVE: The investment objective of the Scheme is to
generate long-term capital appreciation from a diversified portfolio of predominantly
equity and equity-related securities including equity derivatives, in the Indian
markets. The Scheme could also additionally invest in Foreign Securities in
international markets.
ASSET ALLOCATION:
EQUITY 88.68%
OTHERS 5.56%
DEBT -
CASH/ CALL 5.77%

TOP 5 SECTORS:
Sector %
TECHNOLOGY 19.31
OIL & GAS 14.57
METALS & MINING 12.40
TOP 10 HOLDINGS:


SUN PHARMA PHARMACEUTICALS 6.76
CIPLA PHARMACEUTICALS 6.20
STANCHART IDR BANKING/FINANCE 4.74
STERLITE IND METALS & MINING 4.64
WIPRO TECHNOLOGY 4.49
COAL INDIA METALS & MINING 4.23

FUND INFORMATION:
FUND MANAGER MR. SANKARAN NAREN
BENCHMARK INDEX S&P CNX NIFTY
RANKING 3
rd

INVESTMENT DETAILS
ENTRY LOAD N.A.
EXIT LOAD 1% WITHIN 15 MONTHS
DIVIDEND
LOCK IN PERIOD NIL
AAUM 325.06 CRORES
NAV GROWTH 129.81
NAV DIVIDEND 12.84

STATISTICS:
BETA 0.91
R-SQUARED 0.97
SHARPE RATIO 0.11
TYENORS RATIO 0.17
FAMA RATIO 0.05


P/E RATIO 15.59
P/BV RATIO 2.78
EXPENSE RATIO 2.27
MARKET CAPITALISATION 93,994.65 CRORES

2. The Sharpes ratio which is .11, indicating more risk with the fund.
4. Dividend yield stands at 1.58 which is above average as more risk is there with the
funds.
6. Fama ratio of 0.05 represents stock selected have not performed well as compared
to risk associated.
UTI MUTUAL FUND
Unit trust of India marked the beginning of the mutual fund industry in India. Later in
2003, with the bifurcation of the Unit trust of India, uti- mutual fund was formed
taking care of the mutual funds schemes solely wounding up various schemes earlier
offered. Uti mutual fund is the oldest fund house of the country and still the largest
player in the mutual fund industry.
Trustee: UTI Trustee Company Pvt. Ltd
Chairman: Mr. Imtaiyazur rahman
Chief executive officer: Mr. Anoop bhaskar (head equity)
Chief Investment Officer: Mr. S L Pandian
Compliance Officer: Mr. S C Dikshit
Investor service officer: Mr. G S Arora
As of 31
st
management.


UTI OPPURTUNITIES FUND
SCHEME CATEGORY:
INVESTMENT OBJECTIVE: This scheme seeks to generate capital appreciation
and/or income distribution by investing the funds of the scheme in equity shares and
equity-related instruments. The main focus of this scheme is to capitalize on
opportunities arising in the market by responding to the dynamically changing Indian
economy by moving its investments amongst different sectors as prevailing trends
change.
ASSET ALLOCATION:
EQUITY 88.64
OTHERS 0.24
DEBT 2.57
MONEY MARKET 0.00
CASH / CALL 8.56

TOP 5 SECTORS:
SECTOR %
TECHNOLOGY 8.15
AUTOMOTIVE 8.01
OIL & GAS 7.87
MISCELLANEOUS 7.57
TOBACCO 6.58

ITC TOBACCO 6.58
CRISIL MISCELLANEOUS 4.70


SBI BANKING/FINANCE 4.17
HDFC BANKING/FINANCE 3.93
TCS TECHNOLOGY 3.65
CAIRN INDIA OIL & GAS 3.57
AMBUJA CEMENTS CEMENT 3.04

FUND INFORMATION:
FUND MANAGER MR. ANOOP BHASKAR
BENCHMARK INDEX BSE 100
RANKING 1
st

INVESTMENT DETAILS:
ENTRY LOAD N.A.
DIVIDEND
LOCK IN PERIOD NIL
AAUM 2729.86 CRORES
NAV GROWTH 27.28
NAV DIVIDEND 12.91

STATISTICS:
BETA 0.76
R-SQUARED 0.95
SHARPE RATIO 0.10


TYENORS RATIO 0.43
FAMA RATIO 0.22
P/E RATIO 22.89
P/BV RATIO 7.49
EXPENSE RATIO 1.87

2. The Sharpes ratio which is .10 indicating instability and more risk with the fund.
5. Tyenor ratio of 0.43 indicates less risk as compared to other funds.
6. Fama ratio of 0.22 represents better performance of the stocks selected by the fund
manager.
FRANKLIN TEMPELETON MUTUAL FUND:
Franklin Templeton's association with India dates back to more than a decade as an
investor. As part of the group's major thrust on investing in markets around the
world, the India office was set up in 1996 as Templeton Asset Management India Pvt.
Limited. It flagged off the mutual fund business with the launch of Templeton India
Growth Fund in September 1996, and since then the business has grown at a steady
pace. Since starting its operations in India, Franklin Templeton has invested a
considerable amount of time, effort and resources towards investor and distributor
education, the belief being - to be successful in the long term.
Trustee: Franklin Templeton Trustee Services Pvt. Ltd.
Chairman: Mr. Charles B. Johnson
Chief Executive officer: Mr. Gregory E. Johnson
Chief Investment Officer: Mr. R. Sukumar


Mr. Santosh kamath
Compliance Officer: Ms. Shilpa shetty
Investor service officer: Ms. Sheela kartik
As of 31
st
management.
FRANKLIN INDIA BLUE CHIP:
SCHEME CATEGORY: An open ended equity fund scheme.
INVESTMENT OBJECTIVE: An open-end growth scheme with an objective
primarily to provide medium to long-term capital appreciation.
ASSET ALLOCATION:
EQUITY 93.11
OTHERS 0.00
DEBT 0.02
MONEY MARKET 0.00
CASH / CALL 6.87
TOP 5 SECTORS:
SECTORS %
OIL & GAS 10.34
TECHNOLOGY 8.99
TELECOM 8.58
TOP 10 HOLDINGS:


GRASIM CONGLOMERATES 3.89
POWER GRID CORP UTILITIES 3.06
KOTAK MAHINDRA BANKING/FINANCE 2.93
INDUSIND BANK BANKING/FINANCE 2.68

FUND INFORMATION:
FUND MANAGER MR. ANAND RADHAKRISHNAN
AND
MR. ANAND VASUDEVAN
BENCHMARK INDEX BSE SENSEX
RANKING 2
nd

INVESTMENT DETAILS
ENTRY LOAD N.A.
DIVIDEND
LOCK IN PERIOD NIL
AAUM 4516.35 CRORES
NAV GROWTH 201.58
NAV DIVIDEND 33.17

STATISTICS:
BETA 0.80
R-SQUARED 0.96
SHARPE RATIO 0.58
TYENORS RATIO 0.31


FAMA RATIO 0.15
P/E RATIO 18.48
P/BV RATIO 3.45
EXPENSE RATIO 2.22
2. The Sharpes ratio which is .58 in this case is quiet moderate as compared to its
peers, so it means it has adjusted the risk quiet well.
3. R-squared ration of 0.96 indicated near perfect correlation between the fund and the
equities.
4. Dividend yield stands at 1.50 which is a good indicator for the investors.
5. Tyenor ratio of 0.31 indicates less risk which as compared to other funds in this
category.
6. Fama ratio of 0.15 represents funds selected have not performed well.

ANALYSIS & FINDINGS
SBI
equity
fund
SBI
bluechip
fund
ICICI
pru top
100
fund
Birla
sunlife
top 100
fund
UTI
oppurtunities
fund
Franklin
bluechip
india
BETA 0.90 0.94 0.84 0.91 0.76 0.80
ALPHA 4.59 0.20 5.17 4.14 7.60 5.72
STANDARD
DEVIATION
25.45% 27.30% 33.57% 18.97% 32.5% 31.93%
TYENOR
RATIO
0.24 0.15 0.25 0.17 0.43 0.31
SHARPE
RATIO
0.73 0.52 0.06 0.11 0.10 0.58
R-
SQUARED
0.95 0.98 0.96 0.97 0.95 0.96
FAMA 0.11 0.01 0.05 0.11 0.22 0.15
P/E RATIO 20.87 26.87 19.80 15.59 22.89 18.48
DIVIDEND
YIELD
RATIO
1.26 1.53 1.47 1.58 1.53 1.50


EXPENSE
RATIO
2.50 2.50 0.93 2.27 1.87 2.22
PORTFOLIO
TURNOVER
RATIO
1.28 0.94 1.12 1.76 .56 .70

1) The beta for UTI opportunities fund is 0.76 which is the lowest in this
category implying lesser risk as compared to SBI- bluechip fund with 0.94
times indicating more risk directly meaning more returns to the investors of
this fund. Beta for both the large cap funds of the SBI is higher in comparison
to other funds.

2) The alpha for the SBI equity fund is comparatively high and SBI blue chip
fund is the lowest representing fund has not performed well as predicted by the
fund manager. Better choices in the form of stock should be made to increase
the returns for the investors.
0
0.5
1
Beta
Beta
0
5
10
alpha
alpha


3) Since Standard Deviation is the measure which shows variability in the returns
from the mean return, therefore it is considered to be the direct and primary
measure of risk. Standard deviation for Birla sun life top 100 funds is 18.97%
is the lowest in this category indicating less deviation or change in the returns
than the historical returns, whereas S.D. for ICICI pru top 100 fund is the
highest with 33.57% implying change in returns more than the historical
pattern of the returns. Both the SBI MF have average standard deviation
which is considered good.

4) The sharpe ratio which means returns per unit of risk that a fund is able to
generate. ICICI pru top 100 fund is 0.06 indicating poor relationship between
risk and reward whereas there is a good and strong relationship between risk
and reward for SBI equity fund with 0.73 and SBI blue chip fund also has
good sharpe ratio indicating strong relation between two prime factors.

0.00%
10.00%
20.00%
30.00%
40.00%
Standard deviation
Standard deviation
0
0.2
0.4
0.6
0.8
Sharpe ratio
Sharpe ratio
0
0.2
0.4
0.6
Tyenor ratio
Tyenor ratio


5) Tyenor ratio for all the funds is positive showing superior risk adjusted
performance of funds.

6) R-squared ratio indicates the correlation between the stocks and the market
indexes with SBI bluechip with value of 0.98 shows high influence with the
indices whereas UTI opportunities fund show less influence in comparison to
other funds in this category. However, SBI equity fund has low R-squared
ratio which is matter of concern for the fund manager.

7) P/E ratio indicates what investors are expecting returns from the fund knowing
the historical patterns which are higher for the SBI blue chip with 26.87 and
lowest for the ICICI pru top 100 fund with 15.59 higher the P/E ratio is higher
the confidence investors have in the fund performance.
Investors have faith in both the schemes of the SBI MF in the large cap
category.

0.92
0.94
0.96
0.98
1
R-squared
R-squared
0
10
20
30
P/E ratio
P/E ratio
0
0.5
1
1.5
2
Dividend yield ratio
Dividend yield ratio


8) Dividend yield ratio explains payout of dividend by the company with ICICI
pru top 100 fund paying highest with 1.58 and lowest with 1.26 for SBI
magnum equity fund. SBI MF paying lower dividend means retaining more
profit and capitalizing it for future.

9) Operating cost of the mutual fund have direct impact on the earnings with
ICICI pru top 100 fund with lowest 0.93 indicating more earnings for the
investors and SBI with 2. 50 with the highest indicating low earnings.
10) Higher Portfolio turnover ratio indicates change in stock holding more
frequent, here we can see Birla sunlife top 100 fund with the highest rate of
portfolio turnover indicating more frequent change in the stock holding by the
company indicating less return to the investors.

FUNDS RETURN:
SBI
equit
y
fund
SBI
bluechip
fund
ICIC
I pru
top
100
fund
Birla
sunlife
top 100
fund
Uti
oppurtunitie
s fund
Franklin
india
bluechip
fund
6
months
13.4 13.9 16.7 13.4 11.4 10.6
1 year -0.6 -1.2 4.4 -1.8 5.1 -2.2
3 year 10 5.6 11.2 10.1 6.4 11.0
5 year 7.0 2.4 6.2 5.1 13.7 8.0

0
0.5
1
1.5
2
2.5
3
EXPENSE RATIO
PORTFOLIO TURNOVER
RATIO


1) In six month category both the schemes of the SBI (Equity fund and Blue chip
fund) has performed very well, it is preceded only by ICICI pru top 100 fund
when compared to other similar large capital funds like BSL top 100 fund,
UTI opportunities and Franklin fund.
2) In one year category, both funds has performed averagely well than other
funds like BSL top 100 fund and Franklin giving negative returns more than
the SBI funds.
3) Last but not the least, it is good news that funds have performed averagely in
Three Year and Five Year Category giving returns of 10.0% and 7.0% for the
SBI- equity fund and 5.6% and 2.4% for the SBI blue chip fund respectively
with ICICI and fidelity doing better in the 3 year category indicating more
better investment options chosen by the fund manager.

-4
-2
0
2
4
6
8
10
12
14
16
18
6 months
1 year
3 year
5 year


CORPORATE LEARNING:

Having had the experience of working with SBI- Mutual fund, I have begun to see the
level of commitment and responsibility needed while working in the corporate world.
Before starting the training at SBI MF, lot of questions related to mutual funds came
to my mind and were answered during my training at the SBI MF. I also learned the
entire functioning of the organization and many of the questions got answered during
the tenure at SBI MF.
I have been lucky to get an opportunity to work with the SBI mutual funds in the
finance department. During my training period, I got guidance from both the sides, i.e.
corporate as well as academic. I was provided requisite training and instructions from
time to time from the mentors who helped me to perform better and achieve my
targets.
Summer Training was like an eye opener. In other words internship is a trailer of real
corporate world. During internship I learnt that punctuality and hard work is required
for sustaining in the market. Apart from this, at the college, the theoretical concepts
were more like dictionary with lots of words but after Summer Training, the words
have their practical use in corporate life. The things are not exactly done according to
the theories in the book, there are certain modifications done according to the
requirements of the industry.
When i joined the organisation, I faced a lot of problems as to
How should I initiate
How should I get the business for the company
Whom to target for my product
How to convince the customer
So, towards the end of my project after cracking 43 applications, I had a lot of
exposure & experience of how practical world works.
Apart from the above, SBI MF provided me with lot of other learnings,
Practical exposure of how mutual funds work.
Building relationship with other members of the organization.
How to work in a team to achieve the targets.
Time management by handling 2-3 customers at a time.


The tenure of 2 months spent at the SBI- Mutual fund gave me true knowledge about
the working of the mutual fund industry and the work culture of the SBI MF.


LIMITATIONS OF THE STUDY:

It is well known fact that constraint and limitations are bound to be present in any
study do this also has some limitation as:-
1) The consumer perception about mutual funds on national basis cannot be
inferred only on the basis of sample collected from Chandigarh region only.
2) The sample of 74 is not very large for making inference.
3) Consumers were hesitant to provide information, due to lack of knowledge.
4) In the comparative analysis, the unavailable data was picked from different
mutual funds site which use different formulas to calculate.
5) Another problem was of the risk free return rate, which is different for fund
houses.
6) Since I have not undertaken the AMFI exam, which is a mandatory condition
to work, I was not able to understand some of the common terms of the mutual
funds industry but later I learnt them.


CONCLUSION
The State bank of India was the first public sector bank to start mutual fund business
with the permission of the government. SBI was granted permission in 1987. SBI
mutual fund started its first scheme with a view to help small investors who had lack
of knowledge, experience, and time to look into the details of Share market. Soon SBI
became one of the biggest fund houses in the country with total assets under
management of more than 10 billion. Investment in mutual fund instrument provides
diversification, professionalism, and ease of purchase and sale.

The future of mutual fund industry is very bright and has immense growth potential, if
proper awareness and technological advancements are provided. Currently, Mutual
fund industry is going through a rough patch due to political instability, state of
capital market, and adverse international development leading to poor and slow
development of mutual funds industry in India.

SBI mutual funds with a huge no. of schemes matching the requirements of each and
every investor. Schemes are also attractive to the people because of the brand name
and image the State bank of India have with the people. It is in this background the
study on investors insight and comparative analysis of mutual fund assumes
relevance;
The study has been conducted with the major objectives which are reiterated as
follows:
To study consumers insight towards mutual funds,
Why mutual funds is better option than other investment instruments,
Analysis of large cap mutual funds with SBI large cap funds,
To recommend

The study on investors insight revealed that awareness of mutual fund is well with
the people of Chandigarh, but lack of awareness exists in the rural areas, as well as the
housewives who are dependent on their husbands or some other source for
information. Age group of 35 to 50 are more interested to invest in the mutual funds
schemes as they have more requirements than other age groups like Childs education,


marriage, planning for retirement. Whereas the young people in the age group of 25 to
35 years were more risk taker than the other age groups as they had few
responsibilities in comparison to other age groups. It was also noticed people were
interested in income schemes which can fulfil their needs and demands on regular
basis and at the same time provide less risk in comparison to other schemes.
The awareness can also be seen with channel they prefer to invest with majority
taking self decision to invest in the instrument which shows the awareness level is
quite high in the region. The brand name was one of the major factors why people
preferred SBI mutual fund over other fund houses in the country.

There are various instruments available with the investors that will assure them right
mix of liquidity, regular income, growth and safety. The different saving instruments
available are post office saving , post office time deposit, P.O. recurring deposit,
National saving certificate, public provident fund, bank deposits, etc.

The study compared various investment options on various parameters and found
every option has its own strength and weakness. No doubt, mutual funds provide
better returns but risk associated with it is much higher than other investment options
i.e.; PPF, NSC, time deposit etc. It was also found the rate of interest and inflation rate
when evaluated leads to loss of investment.

Bank deposits provide high liquidity and safety but low returns. However, insurance
provides low safety, returns but high liquidity. Mutual funds provide with higher
returns and safety of investment when compared with other investment options.
Hence, a better and preferred investment option over other instruments.

Further, the study compares various large cap mutual fund schemes on various
financial parameters like beta, alpha, Sharpe, price-earnings ratio, dividend yield ratio,
r- squared ratio, etc; to evaluate the funds performance.

Beta measures the systematic risk, which is less than 1 for all schemes indicating
prices are less volatile than the market. The alpha for the Blue chip fund was the
lowest which represents that the fund has not performed well. Standard deviation
shows the deviation of returns from the historical pattern. The Sharpe ratio indicates


good relation between the risk and reward for both the funds. The r-squared ratio
focuses on the correlation between stock and market indices like BSE, NIFTY etc.
SBI equity fund with the lowest is a matter of concern for the fund manager to choose
better stocks for the fund. P/E ratio states what investors expect from the fund which
are higher for both the funds in the large cap categories. Dividend yield for SBI
Equity fund is low explaining returns are being reinvested by the manager. Expense
and portfolio turnover ratio links directly with the earnings of the fund with SBI
having highest expense ratio.

What really matters to the investors are the returns, so for this purpose historical
pattern of the returns was studied to know about the funds performance in the past
with SBI performing well in the 6 months category and low in the 1 year due to
political instability and adverse market conditions having direct impact on the returns.
The funds have also performed well in the 3 and 5 year category overall which is
good for the investors in the long run.
The future of mutual fund industry has bright prospects in the coming future with new
reforms and


RECOMMENDATIONS:

Recommendations play a very important and pivotal role to help anyone strive its
goals and missions more efficiently and effectively. I have made suggestions both for
the SBI- Mutual fund and investors, which are as follows;
Recommendation for the SBI-MF

Rural market:
There is a lot of potential in the rural market. SBI MF should come up with innovative
schemes to attract rural customers. Special focus on the needs and demands of the
rural areas should be taken care of.

Diverse Range of Products
There is a need to come out with innovative products that cater to the ever changing
customer requirements. In US, MFs provide products that cater to the entire life cycle
of the investors. Diversified products will keep the present momentum going for the
industry in a more competitive and efficient manner.

More wise fund selection:
Fund managers of the schemes should make decision about the securities in the
portfolio wisely. More careful study can help the fund managers as well as the scheme
to generate good returns for the investors.

Motivation for the staff:
During my tenure as an intern in the SBI MF. I came across theres lack of motivation
to the star performers. The employees should be motivated to tap more customers and
to do business more effectively and efficiently.

More expenditure on sales and promotion:
There is lack of promotional expenses on the mutual fund. There should be more
amount of money spent to increase the awareness about the mutual funds and its
benefits over time to the customers which would directly increase the business for the


fund house. Advertisements in newspaper, magazines etc can help in increase of
business for the SBI mutual fund.

Special training to the employees:
Special and regular training to the employees should be given in order to understand
the working of the mutual funds and the impact of the market and indices on the
mutual funds. Regular updates about mutual fund industry would help employees to
convince the customer more easily and effectively.

More aggressive fund manager:
Fund manager who manages the mutual fund scheme need to be more aggresive and
wise in choosing the stock of the funds so as to yield more profit for the investors.
Like UTI and Franklin fund managers are comparatively more aggressive in the
selection.

Every branch to have seperate mutual fund department:
During my tenure i came across there is hardly any separate department for the mutual
fund which creates a felling of insecurity in the mind of the customer. A separate area
specially designated for the mutual fund would help clients to be more confident.

Up gradation of customer care number:
However SBI MF provides its customer with toll free number for any complaints
regarding mutual fund. SBI should take effort to provide information to the customer
regarding latest NAV and risk profile about the funds to the customer. So that
customers are at convenience to get latest information about mutual funds.

Awareness drives:
SBI MF should take steps to increase awareness about the mutual fund with the
general public. The Fund house can tap on the customers from oung generation by
making them more aware about the mutual funds. This can be done with the help of
drives in college, market places etc.


Some of the recommendations for the investors:
Investors at their ends should also do some homework before investing their hard
earned income/ savings, some points to keep in mind while investing are as follows;

Self assessment:
Self-assessment of ones needs; expectations and risk profile is of prime importance
failing which; one will make more mistakes in putting money in right places than
otherwise. Irrational expectations will only bring pain.

Regularity:
Investing should be a habit and not an exercise undertaken at ones wishes, if one has
to really benefit from them. As we said earlier, since it is extremely difficult to know
when to enter or exit the market, it is important to beat the market by being
systematic. The SIPs (Systematic Investment Plans) offered by all funds helps in
being systematic. All that one needs to do is to give post-dated cheques to the fund
house.

Dont consider NAV only:
Never judge a fund on the basis of its NAV. Also have a look at the Standard
Deviation, Beta, Alpha, R Squared, Treynor & Sharpe Ratios & also its performance
in the bear and the bull phase, and then invest in it. Only judging a fund by its NAV,
is irrelevant.

Diversify:
One should diversify the investments between a few funds (the actual number
depends entirely on the amount of investment). This strategy ensures that the portfolio
is not dependent on the performance of one single fund. However, one needs to avoid
over-diversification as that would achieve nothing.

Track your investments:
Finding the right fund is important but even more important is to keep track of the
way they are performing in the market. If the market is beginning to enter a bearish
phase, then investors of equity too will benefit by switching to debt funds as the losses


can be minimized. One can always switch back to equity if the equity market starts to
show some buoyancy.

Know when to sell your mutual funds:
Knowing when to exit a fund too is of utmost importance. One should book profits
immediately when enough has been earned i.e. the initial expectation from the fund
has been met with. Other factors like non-performance, hike in fee charged and
change in any basic attribute of the fund etc. are some of the reasons for to exit.


BIBLOGRAPHY
Books referred:
Mark mobius, Mutual funds- An introduction to core concepts, john wiley & sons, 2007
pg 1 to 4 and 19 to 24 and 143 to 147.
Fact sheets of different fund houses.(SBI MF, ICICI prudential MF, UTI MF, BSL MF)
Christine benz, Morning star guide to Mutual funds- a five star strategies guide, john
wiley & sons, 2005( 2
nd
edition), pg 27 to 34 and 161-163 and 197 -200.
Mutual fund handbook by SBI- mutual fund.
Sanjay Kant Khare, 2007, Mutual Funds: A Refuge for Small Investors, Southern
Economist, pp.21-24.
A guide to mutual funds by SEBI (securities and exchange board of India).
Internet:
http://en.wikipedia.org/wiki/Mutual_fund assessed. in 9th june
http://www.icicipruamc.com/AboutUs/CorporateProfile.aspx assessed on 17th june.
http://www.franklintempletonindia.com/india/jsp_cm/aboutus/wwprofile.asp assessed
on 16th june.
http://mutualfund.birlasunlife.com/Pages/Individual/Home.aspx assessed on 17th june.
http://www.utimf.com/aboutus/Pages/overview.aspx assessed on 17th june.
http://www.indiapost.gov.in/Pdf%5CSB_Orders_2012.pdf assessed on 14
th
june.
www.valueresearch.com
http://www.sbifunds.com/ assessed on 9
th
june.
http://www.sebi.gov.in/sebiweb/stpages/about_sebi.jsp assessed on 12th june.
http://www.amfiindia.com/showhtml.aspx?page=mfconcept assessed on 9
th
june.
http://www.amfiindia.com/amfimembers.aspx assessed on 9
th
june.
http://www.amfiindia.com/AUMReport_Rpt_Po.aspx?dtAUM=01-Jan-
2012&qt=January%20-%20March%202012&rpt=fwise assessed on 9
th
and 14
th
june.
Magazines/ Journals/ Articles:
Jimmy A patel, 21
st
may 2012, Economics time
Mutual fund insight-15
th
june to 14
th
july vol.IX, number-10


AMFI in association with Price Waterhouse, 2008, The investors concise guide- making
mutual fund work for you, 3
rd
edition
KPMG & CII, june 2009, Indian Mutual Fund Industry The Future in a Dynamic Environment
Tetsuya Kamiyama, 2007, Nomura Capital Market Review Indias Mutual Fund Industry, Vol. 10,
No. 4
Kaushal Shah & Associates, 2007, The Fall and Rise of Mutual Funds in India
Sharpe, William F, 1966, Mutual Fund Performance, The Journal of Business, Vol.
39(1), pp.119-138.
Soumya Guha Deb & Ashok Banerjee (2009), Downside Risk Analysis of Indian
Equity Mutual Funds: A Value at Risk Approach, International Research Journal
of Finance &Economics, issue-23
Deutsche Bank Research, Feb 2007, Indias Capital Markets: Unlocking the door to future growth
Treynor. 1965 How to Rate Management of Investment Funds. Harvard Business
Review, 43(1): 63-75.
Fama. 1972. Components of Investment Performance, Journal of Finance, 27: 551-567.
Sarkar AK. 1991. Mutual Funds in India-Emerging Trends. The Management
Accountant, 26 (3):171-174.
Sahadevan S and Thiripalraju M, 1997, Mutual Funds: Data, Interpretation and
Analysis, Prentice Hall of India Private Limited, New Delhi.
Irwin, Brown, 1965, A Study of Mutual Funds: Investment Policy and Investment
Company Performance Elements of Investments, New York: Holt, Renchart and
Winston, pp.371-385.


APPENDIX
QUESTIONNAIRE

I intern at the SBI MF is conducting a survey on behalf of the company to know the
awareness level about mutual fund in the Chandigarh region. Please fill up the
following questions. Your identity would not be revealed and will be used only for
official purposes.
GENERAL INFORMATION:
NAME:
AGE:
PROFESSION:
GENDER:
2) ARE YOU AWARE OF MUTUAL FUNDS?
a) Yes
b) No

3) WHAT IS YOUR PERCEPTION ABOUT MUTUAL FUNDS?
a) Safe
b) Risky
c) Others

3) WHAT PERCENTAGE OF INCOME DO YOU INVEST?
a) OVER 50%
b) 30% TO 50%
c) 10% TO 30%
d) Below 10%

4. WHAT IS YOUR RISK PREFERENCE?
a) High risk
b) Moderate risk
c) Low risk
5. WHAT TYPE OF RETURNS DO YOU EXPECT?
a) High return
b) Moderate return


c) Low return
6. WHAT ARE THE VARIOUS INSTUMENTS IN WHICH YOU INVEST?
d) Bank
e) Insurance
f) Stock Market
g) Bonds and Debenture
h) PPF (Public provident Funds)
i) NSC (National saving certificate)
j) Post office saving schemes
k) Real Estate
l) Gold
m) Chit Funds

7. WHAT ARE YOUR REASON/ OBJECTIVE BEHIND INVESTMENT?
a) Safety
b) Good return
c) Tax benefit
d) Capital appreciation
e) Liquidity
8. WHAT ARE THE BREAK UP IN PERCENTAGE TERMS TO YOUR
INVESTMENT?

TYPE OF INVESTMENT PERCENTAGE
BANK
INSURANCE
STOCK MARKET
BONDS & DEBENTURE
PPF
NSC
POST OFFICE SAVING SCHEMES
REAL ESTATE
GOLD
CHIT FUNDS

9. WHAT ARE DIFFERENT TYPES OF MUTUAL FUNDS ARE YOU
AWARE OF?
a) Growth schemes. (Provide appreciation of capital over medium to long term)
b) Income schemes. (Provide regular and continuous income to investor)


c) Balance schemes. (Provide both growth and income)
d) Money market and Liquid Schemes. (Provide easy liquidity preservation of
capital and moderate income).
e) Tax saving schemes.(offer tax rebates under tax laws)
f) Gilt funds (generating returns by investing in securities created and issued by a
central government or state government)
10. WHICH OF THEM DO YOU PREFER?
a) Growth schemes
b) Income schemes
c) Balance schemes
d) Money Market and Liquid schemes
e) Tax saving schemes
f) Guilt Funds
11. HOW DO YOU CHOOSE A MUTUAL FUND COMPANY?
a) Brand Name
b) Good Service
c) High Yield
d) Advertisement
e) Any Other Reason...........................................
12. PREFERABLE ROUTE TO MUTUAL FUND INVESTING?
a) Friends suggestion
b) Newspaper
c) Self decision
d) Television
13. RANK THE FOLLOWING FACTORS THAT YOU CONSIDER WHILE
SELECTING A SCHEME:
a) Scheme Qualities like track record, fund size, entry load etc.
b) Fund Manager Experience
c) Investor Services like disclosure of NAV, A/C statements.
d) Marketing of funds through bill boards, relatives, friends, brokers etc

14. ANY SUGGESTION/ RECOMMENDATION FOR SBI MUTUAL FUND

Mayank Jain-SIP

Hochgeladen von

Dokumentinformationen

Originaltitel

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Mayank Jain-SIP

Hochgeladen von

Copyright:

Verfügbare Formate

1 Apeejay School of Management, Dwarka, New Delhi

Summer Internship Project

Das könnte Ihnen auch gefallen