Sasmiras Institute of Management Studies &

Research
PROJECT REPORT
ON
COMPARITIVE ANALYSIS OF MUTUAL FUNDS

SUBMITTED TO
SASMIRAS INSTITUTE OF MANAGEMENT STUDIES &
RESEARCH,
SASMIRA MARG,WORLI, MUMBAI
BY

S. JAIDHEER REDDY
Roll No. 102
MMS 2015-16 Semester III
IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS),
UNIVERSITY OF MUMBAI
June, 2015

A
Summer Internship Project Report
On

COMPARITIVE ANALYSIS OF MUTUAL FUNDS

In the partial fulfillment of the Degree of
Master of Management Studies
Under the University of Mumbai
By

Mr. S. JAIDHEER REDDY

Roll No. 102

Specialization: FINANCE
Batch: 2014-16
Under the Guidance of

Mr. Rajat Chattopadhyay ,

VP, Western Zonal Head
SBI Funds Management Pvt. Ltd.
And

Dr Amit Oak
Director,
Sasmira`s Institute of Management Sudies & Research

SASMIRAs Institute of Management Studies and Research

Worli, Mumbai-400030
2

June, 2015

DECLARATION

I, Mr. S. Jaidheer Reddy hereby declare that this project report is the
record of authentic work carried out by me during the period from 22nd
May 2015 to 21st July 2015 and has not been submitted to any other
University or Institute for the award of any degree / diploma etc.

Signature :

Name of the student : S. Jaidheer Reddy

Date :

CERTIFICATE FROM GUIDE

This is to certify that Mr. S. Jaidheer Reddy of Sasmiras Institute of

Management Studies & Research has successfully completed the
project work titled Comparitive analysis of Mutual Funds in partial
fulfillment of requirement for the completion MMS as prescribed by
the University of Mumbai.

This project report is the record of authentic work carried out by him /
her during the period from 22nd of May 2015 to 21st of July 2015.
He / She has worked under my guidance.

Signature :
Name : Dr. Amit Oak
Project Guide (Internal):
Date :

ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep

regards to my Company guide Mr.Rajat Chattopadhyay (VP, Western
Zonal Head), Mr.Vishal Udasi (Senior Manager, Banking Channel

Mr.Rupesh Dolas (Manager, Banking Channel) from SBI Funds

Management Pvt. Ltd.for

exemplary guidance, monitoring and

constant encouragement throughout the course of this project. The

help & guidance given by them time to time shall carry me a long
way in the journey of life on which I am about to embark.

I would like to thank our Director Dr. Amit Oak for his
encouragement, cordial support, valuable information and guidance,
which helped me in completing this task through various stages
report.

Table of C O N T E N T S
Chapter No.

Title

Page No.

Declaration from student

iii

Certificate from Company/Organisation

iv

Certificate from Guide

Acknowledgement

vi

Table of Contents

vii-viii

Chapter Scheme

ix-x

List of Tables
List of Graphs

x-xi
xiii

List of Charts

xiv

Executive Summary

xv

Introduction

1.1

Background of the study

1.2

Background of the topic

3-4

1.3

Company profile

29

1.4

Need of the study

38

1.5

Scope of the study

39

1.6

Objectives of the study

39

II

Research Methodology

2.1

Research design

41-42

2.2

Primary data

42-43

2.2

Secondary data

43

2.3

Sample design

43

2.3.1

Population

43

2.3.2

Sample size

44

2.3.3

Sampling method

44

2.4

Method of data collection

44

2.4.2

Instrument for data collection

44

2.4.3

Drafting of a questionnaire

44-45

2.4.4

Testing of Questionnaire / Pilot survey

2.5

Data- analysis techniques

45
46

2.6

Limitations

46

III

Data Analysis and Interpretation

47-78

IV

Findings

79-80

Conclusions

81-83

VI

Recommendations

84-89

Bibliography

90

Appendices /Annexure

Questionnaire/ (s), if any

91-97

CHAPTER SCHEME
Chapter No.

Title

INTRODUCTION

1.1

Inception

1.2

What are Mutual Funds?

3-4

1.3

How Mutual Funds Operate?

1.4

Distribution Channels

6-9

1.5

Advantages & Disadvantages

9-10

1.6

Categories

11-14

1.7

Current scenario

15

1.8

Growth Drivers

16

1.9

Investment Strategies

16

1.10

Need for Mutual Funds

17

1.11

Risk Involved

17-19

1.12

Regulatory Bodies- AMFI& SEBI

19-22

1.13

Financial Aspects

22-28

1.14

Company Profile

29

1.15

Products

30-36

Page No.

1.16

Competitors

37

1.17

Need of Study

38

1.18

Scope of the Study

39

10

LIST OF CHARTS
Chart No.

Title

Page No.

1.1

How Mutual Funds Operate?

1.2

Advantages & Disadvantages of Mutual Funds

10

1.3

Categories of Mutual Funds

11

1.4

World Mutual Funds AUM

15

2.1

Age Profile of Investors

53

2.2

Academic Qualification of Investors

53

2.3

Marital Status of Investors

54

2.4

Occupation Profile of Investors

54

2.5

Annual Income Range of Investors

55

2.6

Investment Objective of Investors

56

2.7

Scheme Preferences- Asset Class

57

2.8

Preferable Route of Investment

58

11

2.9

Scheme Preferences Structure

59

2.10

Saving Habbits of Investors

60

2.11

Satisfaction Level with SBI

61

2.12

Most Popular Fund House

62

12

LIST OF GRAPHS

Graph No.

Title

Page No.

1.1

Contribution of Fund Inflow from channels

1.2

Risk,Return Reward in Mutual Funds

19

3.1

HDFC Bank Stock Perfromance

75

3.2

Sun Pharma Stock Performance

76

13

LIST OF TABLES

14

Table No.

Title

Page
No.

1.1

Independent Variable Ranking

49

1.2

Factor Analysis & Categorization

50

3.1

SBI Bluechip Fund- Returns

67

3.2

SBI Bluechip Fund- Risk Profile

68

3.3

SBI Magnum MidCap Fund- Returns

69

3.4

SBI Magnum MidCap Fund- Risk Profile

70

3.5

SBI Magnum Balanced Fund- Returns

71

3.6

SBI Magnum Balanced Fund-Risk Profile

72

3.7

SBI Magnum Tax Gain Scheme Returns

73

3.8

SBI Magnum Tax Gain Scheme Risk Profile

74

EXECUTIVE SUMMARY

15

Mutual funds pool money from different investors and invest in different investment sources
like stocks, shares, bonds etc. A professional fund manager manages these and returns are
paid in according to what option the investor has opted (Regular or Growth). Mutual funds
have to be subscribed in units and the purchase or sale is dependent on NAV (Net Asset
Value), taking into consideration the exit load factor into account (before August, 2009 there
used to be entry load also, which SEBI has now discarded)
This project undertaken deals with customer perception with regard to mutual funds that is
the schemes they prefer, the plans they are opting, the reasons behind such selections and also
this project dealt with different investment options, which people prefer along with and apart
from mutual funds. Like postal saving schemes, recurring deposits, bonds, and shares. The
project also focuses on comparing the SBIs Focus products with that of competitors in the
business in respect of the key financial parameters.
The findings from this project is that most of the people are hesitant in going for new age
investments like mutual funds and prefer to avert risks by investing in less riskier investment
options like recurring deposits and so. Also people going for investment in mutual funds are
not going for high-risk portfolios and schemes but want to go for medium risk elements. And
another finding is that most of the workingwomen does not prefer this type of investments.

16