A Study On Investors Perception and Performance Towards Sbi Mutual Fund

A STUDY ON INVESTORS PERCEPTION AND PERFORMANCE TOWARDS SBI
MUTUAL FUND
CHAPTER-1
INTRODUTION
Indian mutual fund has gained a lot of popularity from the past few years. Earlier only UTI
enjoyed the monopoly in this industry.
The main motive behind mutual fund investment is to deliver a form of diversified investment
portfolio through the mutual funds.
A mutual fund is a common pool of money into which investors place their contribution that are
to be invested in accordance with a stated objective. The ownership of the fund is thus joint or
mutual the fund belongs to all investors. A single investor’s ownership of the fund is in the same
proportion as the amount of contribution made by him or her bears to the total amount of the
fund.
History
The mutual fund industry in India started in 1963, with the formation provident fund Unit Trust
of India, at the initiative of the government of India and Reserve Bank of India.
Unit trust of India (UTI) was established in 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 the fund belong to all investors. A single investor’s ownership of the
fund is in the same proportion as the amount of contribution made by him or her bears to the
total amount of the fund.
1978 UTI was delinked from the RBI and industrial development and bank of India (IDBI) took
over the regulatory and administrative control in place of UTI. The first scheme launched by UTI
was unit scheme 1964. At the end of 1988 UTI had Rs 6700 cores of assets under management.
1987 marked the entry of non-UTI public sector mutual fund setup by public sector banks and
life insurance corporation of India (LIC) and mutual fund was the first non UTI mutual fund
established in June 1987 followed by can bank mutual fund (Dec 17) Punjab national bank
ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 1

MUTUAL FUND
mutual fund (Aug. 89). Indian bank mutual fund (Nov 89) bank of India (Jan 90) bank of Baroda
mutual fund (Oct 92). LIC established its mutual fund in June 1989 which GIC had set up its
mutual fund in December 1990.
Association of Mutual Fund in India:
The Association of Mutual Funds in India is dedicated to developing the Indian Mutual Fund
Industry on professional, healthy and ethical lines and to enhance and maintain standards in all
areas with a view to protecting and promoting the interests of mutual funds and their unit
holders.
AMFI the association of SEBI registered mutual funds in India of all the registered mutual funds
in India of all the registered Asset Management Companies was incorporated on August 22,
1995, as anon-profit organization. As of now, all the 44 Asset Management Companies that
registered with SEBI, are its members.
Objectives of AMFI:
 To define and maintain high professional and ethical standards in all areas of operation of
mutual fund industry.
 To recommend and promote best business practices and code of conduct to be followed
by mutual fund and asset management including agencies connected or involved in the
field of capital markets and financial services.
 To interact with the Securities and Exchange Board of India and to represent to SEBI on
all matters concerning the mutual fund industry.
 To represent to the Government, Reserve Bank of India and other bodies on all matters
relating to the Mutual Fund Industry.
 To undertake Nation-wide investor awareness programme so as to promote proper
understanding of the concept and working of mutual funds.
 To disseminate information on Mutual Fund Industry and to undertakes studies and
research directly and/or in association with other bodies.

MUTUAL FUND
 To take regulate conduct of distributors including disciplinary actions (cancellation of

ARN) for violations of Code Conduct.
 To protect the interest of investors/unit holders.
Meaning of mutual fund:

MUTUAL FUND
A mutual fund is an investment vehicle made up of a pool of money collected from many
investors for the purpose of investing in securities such as stocks, bonds, money market
instruments and other assets.
A mutual fund is a professionally managed investment scheme, usually run by an asset

management company that bring together a group of people and invests their money in
stocks, bonds and other securities all the mutual funds are registered with SEBI.
Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to
the investors and investing funds in securities in accordance objectives as
disclosed in offer document.
Investments in securities are spread across a wide cross section of industry and sectors
and thus the risk is reduced. Diversification reduces the risk because not all stocks may
move in the same direction in the same proportion the same time.
Mutual fund issues units to the investors in accordance with quantum of money invested
by them. Investors of mutual fund are known as unit holders. The profit and losses are
shared by the investors in proportion to their investment. The mutual funds normally
come out with a number of schemes with different investment objective which are
lunched from time to time.
Types of mutual funds

MUTUAL FUND
Well in India, Mutual funds are categorized based on various fundamental fund to
be found
1. Equity mutual fund: -
Equity mutual fund will invest your money in the stock market. In plain English it
belongs to stock mutual fund where return on investments are purely based on stock
performance.
2 .Debt mutual funds: -
Debt mutual fund will invest your money in debt instruments like treasury bills,
government bonds etc. these investments ensure you fixed rate of returns.
3. ELSS–Equity linked savings schemes: -
ELSS are commonly known as tax savings funds investment made towards ELSS funds
are exempted from income tax under section 80c, however funds have 3 years of lock in
period.
4. Open-ended funds: -
Open – ended funds are funds that allow you to invest money and redeem anytime as per
your needs and your strategies regardless of any time circumstances.
5. Close-ended funds: -
Close-ended funds are funds allowing you to invest with some lock in period, mostly
within 1 to 3 years before that you cannot redeem the fund since there is a time constraint
involved with it.
Advantages and disadvantages of mutual fund

MUTUAL FUND
Mutual fund is a type of investment where investors pool their resource together to invest in
diversified assets. There are many different advantages and disadvantage of investing in
mutual fund.
Advantages: -
1) Built in diversification: -
Investing in a diversified portfolio can be very expensive. The nice thing about mutual
fund is that they allow anyone to hold a diversified portfolio. The reason why investors
invest in a diversified portfolio is because it incases the expected returns while
minimizing the risk.
2) Liquidity: -
Another nice advantage to mutual funds is that the assets are liquid. In financial jargon,
liquidity basically refers to converting your assets to cash with relative ease. Mutual
funds are considered liquid assets. Since their is high demand for many of the funds in
the market place.
3) professional management: -
Mutual funds do not require a great deal of time or knowledge from the investor because
they are managed by professional fund managers.
4) Ease of comparison: -
Mutual funds are also convenient because they are easy to compare. This is because
many mutual fund dealers allow the investor to compare the funds based on metrics such
as level of risk, return and price.
Disadvantages

MUTUAL FUND
1. Cost: -
One downside to mutual funds is that they have a high cost associated with them in
relation to the returns they produce. This is because investors are not only charged for the
price of the fund but they will often face additional fees.
2. Index does matter: -

In some cases, the stock index may outperform the mutual fund. However, this is not
always the case as it depends in large part on the mutual fund the investor has invested in,
as well as the skill set of the fund manager.
3. Fees: -
The fees that are charged will depend on the type of mutual fund purchased. If a fund is
riskier and more aggressive, the management fee will tend to be higher.
4. Unpredictable: -
Although expected returns will be quoted, it is impossible to find a mutual fund with a
guaranteed return. This is because all assets carry some degree of risk
CHAPTER -2
2.1 TITLE
MUTUAL FUND
“A STUDY ON INVESTORS PERCEPTION AND PERFORMANCE TOWARDS SBI

MUTUAL FUND”
2.2 LITERATURE REVIEWE
Obitual and Sridhar (1991) evaluated the performance two major growth oriental mutual fund
schemes master share and can share. They both concluded that both the funds provided abnormal
return master share out performed based on market risk.
Gupta IC (1992) attempted a house hold survey of investors with the objective of identifying
investors performances for mutual fund so as to help policy makers and mutual funds in
designing mutual fund products and in shopping the mutual fund industry.
Shashi Kant Uma (1993) critically examined the rationale and relevance of mutual fund
operations in Indian money markets. she pointed out that money market mutual fund with low
risk and low return offered conservative investors a reliable investment avenue for short term
investment.
Ansari (1993) stressed the need for mutual funds to bring in innovation scheme suitable to the
varied needs of the small savers in order to become predominant financial service institution in
the country.
Shukla and Singh (1994) attempted to identify whether portfolio manager’s professional
education bought out superior performance. They found that equity mutual fund managed by
professionally qualified managers were riskier but better diversified than the others.
Rich fort in and Stuart Michelson (1995) studied 1326 loan funds and 1161 no load fund and
identified that no load funds had lower expense ratio and so was suitable for six years of average
holding period.
Gupta and Sehgal (1997) evaluated investment performance for the period 1992 to 1996.
Aspects of mutual fund such as fund diversification consistency of performance, consistency b/w
risk measures, fund objectives and risk return relation in general were studied.

MUTUAL FUND
Mishra, Rahman (2000) measured mutual fund performance using lower partial moment risk
from the lower partial moment is measured by taking into account only those states in which
return is below a pre-specified “target rate” like risk-free rate. Brealey and Mayers (2002)
supported quality of earnings as a key performance measure. Earning can be manipulated by
adopting different accounting policies. Further supported by graham et al (2002), analyst rely on
the primarily date, reported cash flows and the accounting conservation in evaluating companies.
Sapper Narayan R and Madara R (2003) conducted a research on the performance evaluation
of Indian mutual funds in a bear market. The period of study was September 1998 to 2002. They
started with a sample of 269 open ended. Scheme for computing relative performance index.
Panwar et.al (2005) uses residual variance as the measure of mf portfolio diversification. RV
has a direct impact on shape fund performance measure. Kacperczyk et.al (2005) demonstrated
that unabsorbed information creates values for some funds. Return gap helps to predict future
fund performance & investors should use additional measures to evaluate the performance.
Rao D N (2006) classified 419 open ended equities mutual fund scheme and analyzed the
financial performance of selected open-ended equity mutual fund scheme for the period 1st April
2005 to 31st march 2006 pertaining to the two dominant investment styles and tested the
hypothesis.
2.3 STATEMENT OF PROBLEM:
Investment in share markets are influenced by the analysis & reasoning which help in
predicting the market to some extent. Over the past years a number of technical & theories for
analysis have evolved, these combined with modern technology guide the investor. The players
in the market, like foreign institutional investors, mutual fund, etc.

MUTUAL FUND
In recent years a large number of players have entered into the market. The project has been
carried out have an overview of mutual fund industry and to understand investor’s perception
towards Mutual Funds.
2. 4 Objectives:
1. To know the investor perception towards SBI Mutual funds in Tumkur.
2. To find out the preference of the investors for Asset Management of Company.
3. To know the preference of the portfolios.
4. To find out the most preference channel.
2.5 Scope of the study:
The present study title ”Investors perception towards SBI Mutual Fund”. This study is confined
to Tumkur city. This study is confined to SBI Mutual Fund.
2.6 Research design
Marketing research can be defined as the systematic design, collection, analysis & reporting of
the data and finding relevant to a specific marketing situation facing the company.
Research design is the basic plan which guide the researchers in the collection & analysis of data
required for practicing the research product. In fact, the research design is the conceptual
structure with which research is conducted.
a) Sources of data
The data a collected from the target segment i.e. mutual fund investors of the banks in Tumkur
city with the help of structured & well designed questionnaire.
 Primary data: -

MUTUAL FUND
Primary data is collected by the respondent of the study for the purpose of the specific enquiry.
A structured questionnaire has designed & conducted on enquiry to collect the first hand data
from the respondents.
Secondary data:
Secondary data are those data which have been already collected & analyzed by some earlier
agency for its own use and later the same data are used by different agency, used secondary data
is literature review in the website source and obtain the opinion of experts through this study by
articles, books, magazines, etc.
b) Sample size:
Population size 500, sample size is 50.
c) Sample technique:
Systematic sample technique is used for collecting the primary data. Every 10th person is chosen.
2.7 RESEARCH PLANNING
Chapter 1: Introduction: This chapter consist introduction of mutual fund, History of

mutual fund, Types of mutual fund, advantages and disadvantages of mutual fund.
Chapter 2: Research design: This chapter tells about title of the study, literature review,
objectives, statement of the problem, scope of the study, limitations of the study.

MUTUAL FUND
Chapter 3: Profile of Mutual Fund Company: This chapter include industry profile of
selected mutual fund company.
Chapter 4: Date analysis and interpretation: This chapter deals with an analysis of
date by using chi square test and drawn an interpretation relating to date.
Chapter 5: Finding, suggestion and conclusion: Under this chapter important

significant aspect are been drawn based on analysis results for providing suitable suggestion.
2.8 Limitations of the study:
 The study is conducted to analyze the performance of Mutual Fund at Tumkur city.
 This study is based on both primary data and secondary data.
 The study is based on the respondent assumption, all the information true and correct.
CHAPTER-3
COMPANY PROFILE
ABOUT SBI MUTUAL FUND COMPANY:

MUTUAL FUND
The State Bank of India is the first public sector bank to start mutual fund business after the
Government of India issued permission to do mutual fund business. Till 1987 Unit Trust of India
was the only mutual fund operating in the country. In 1987 SBI decided to provide an alternative
for investors and SBI Mutual Fund was born SBI Capital Market Ltd.., a wholly owned
subsidiary of State Bank of India was appointed as Trustees and Managers to the fund. SBI
Mutual fund was the first bank sponsored Mutual Fund, the pioneer in an untapped field with
vast potential.
The SBI Mutual Fund launched its first scheme Magnum Regular Income Scheme 87 in 1987
and mobilized Rs131 crore from 90000 investors while in 2000, the Fund with an investor base
of over 2.8 million spread over 23 schemes mobilized Rs.2079 crores.
Till 1992, SBI Capital Market Ltd operated as Trustee and Managers to the Fund. The mantle of
management has now passed on to SBI Fund Management Ltd., another wholly owned
subsidiary of the State Bank of India, which was incorporated on 7th February 1992. This
company took over the management of Fund with effect from 14th May 1993. State Bank of
India now operates as Principal Trustee to the fund. The Board of Trustees headed by
Dr.A.M.khusro. Editor of Financial Express and former Member of the planning Commission,
includes distinguished personalities like prof. S. K Barua, Smt (Dr) Malati Anagol, Shri M.M
Chitale and Shri M.M. Chitale and Shri Vepa Kamesam.
The Board of Directors of SBI Fund Management Ltd. Includes reputed personalities like Shri
Janaki Ballabh as Chairman, Shri Niamatulla as Managing Director, Shri S L Rao Shri R G Kare
Shri (Dr) Ajay Shah, Shri. Manu Chadha, Shri. D.P Roy and Shri. Biredra Kumar as Directors.
SBI MUTUAL FUND SCHEMES:
1.SBI Regular income schemes:
Magnum Regular Income Scheme was first scheme launched by the fund and it commenced
from 1st January 1988. This was followed by three others Magnum Regular Income 1989, which
commenced from 1st April 1989, Magnum Regular Income Scheme 1990 which commenced
from 1st August 1990 and MRIS 1993 launched on 15th February 1993.

MUTUAL FUND
The investment objective of Regular Income Scheme 1990 is to achieve a combination of

income and growth and to provide a regular income to the investor.
2.SBI Monthly Income Scheme:
Scheme under this head are, namely Magnum Monthly Income Scheme 89, MMIS 91,
MMIS 98.
3. 80 CC Schemes
4. 80 CC B schemes
5. SBI Growth Schemes
6. SBI Cumulative Income Schemes
7. SBI Magnum Equity Fund
8. SBI Magnum Liquid Bond Fund
9. SBI Magnum Tax Gain Scheme
10. SBI Magnum Balanced Fund
11. SBI Magnum Sector Fund Umbrella
12. SBI Magnum Rising Income Scheme 1993
13. SBI Focused Equity fund
14. SBI Contra Fund
15. SBI Small Cap Fund
16. SBI Equity Hybird Fund
WHY CHOOSE SBI MUTUAL FUND?

MUTUAL FUND
SBI Mutual Fund caters to the needs of individual investor and business entities as well. It
provides a variety of benefits to its investors. The following are the key features of SBI Mutual
Fund:
1. With SBI Mutual Fund, you get the capital appreciation for your investment at a reduced
risk.
2. For investments, it offers domestic funds and off-shore funds.
3. On the basis of personalized requirements, you can select from a wide range of
customized investment plans.
4. With SBI Mutual Fund, your tax planning is made easier. It provides ELSS(Equity
Linked Savings Scheme) a type of diversified equity mutual fund that makes you eligible
to claim tax deductions under Section 80C of the Income Tax Act, 1961. Investing in it
gives you the additional benefit of tax savings.
5. NRIs are eligible to make an investment in SBI Mutual Fund.
6. For your convenience, you can also make investment online, at your
preferred time.
SBI MUTUAL FUND COMPANY LOGO:

MUTUAL FUND
CHAPTER- 4
ANALYSIS AND INTERPRETAION OF PERCEPTION ON SBI MUTUAL

FUND
TABLE NO: 4.1 representing age group of respondents
Age Number of respondents Percentage
Below 30 13 26
30-40 16 32

MUTUAL FUND
40-50 11 22
50-60 6 12
60 & above 4 8
TOTAL 50 100
SOURCE: Primary data
GRAPH NO: 4.1 representing age group of respondents

MUTUAL FUND
Number of investors
Below 30 30-40 40-50 50-60 60 & above
8%
12% 26%
22%
32%
ANALYSIS AND INTERPRETATION:

The Table 4.1 tells that, most of the respondents are between the age group of 30-40 years
with 32% and it followed by the age group of below 30 years with 26%, then 40-50 years
age group with 22% and 50-60 years age group with 12% at last 60 and above age group
with 8% of respondents. The highest percentage 32% respondents are falls under the age
group of 30-40 years.
From the above we can interpret that, 30-40 years age group of investors are high.
TABLE NO: 4.2 representing that respondent qualification
Qualification Number of investors Percentage

MUTUAL FUND
Post-graduation 25 50
Under graduation 18 36
Others 7 14
Total 50 100
GRAPH NO: 4.2 representing that respondent qualification
INVESTORS QUALIFICATION
Others
14%
Post graduation
Under 50%
gradution
36%

The above Table 4.2 represent that respondent qualification 50% of the respondents are
post –graduation then 36% of respondents are under-graduation and 14% of respondents
are others qualification.
From the above we can interpret that most of the investors are post-graduation because they
more aware about investments then others.
TABLE NO: 4.3 representing investors occupation
Options Number of investors Percentage

Government sector 6 12
Private sector 31 62

MUTUAL FUND
Business 8 16
Agriculture 5 10
Total 50 100
GRAPH NO: 4.3 representing investors occupation
percentage
percentage
62
16
12 10
Government sector Private sector Business Agriculture
From the above table says that, 62% of the respondents are working in private sector,16% of
respondents are doing business, 12% of respondents are working in government sector, and 10%
of respondents are agriculturist.
It reviled that majority of the respondents are working in private sector.
TABLE NO: 4.4 representing awareness about SBI Mutual Fund
Option Number of respondents Percentage
Yes 35 70

MUTUAL FUND
No 15 30
Total 50 100
GRAPH NO 4.4 representing awareness about SBI Mutual Fund
Percentage
80
70
60
50
40
Percentage
30
20
10
0
Yes No
Form the above table we can interpret that 70% of respondents aware about SBI Mutual Fund
and remaining 30% of respondents are not aware about SBI Mutual Fund. Give more promotions
to attract remaining investors.
TABLE NO: 4.5 representing respondents knowing about SBI Mutual Fund
OPTIONS NUMBER OF RESPONDENTS PERCENTAGE

Advertisement 9 25
Peer group 4 11.11
Banks 8 22.22

MUTUAL FUND
Financial advisors 15 41.67

Total 36 100
GRAPH NO: 4.5 representing respondents knowing about SBI Mutual Fund
PERCENTAGE
PERCENTAGE
41.67
25
22.22
11.11
Advertisement Peer group Banks Financial advisors
The Table 4.5 tells that most of respondents know about SBI Mutual Fund through Financial
advisors. 41.67% of respondents know about SBI Mutual Fund through Financial advisors, 25%
of respondents know about SBI Mutual Fund through Advertisement, 22.22% of respondents
know about SBI Mutual Fund through banks and 11.11% of respondents know about SBI Mutual
Fund through peer group. Give more advertisement about SBI Mutual Fund that persuades
investors to invest in SBI Mutual Fund.

MUTUAL FUND
TABLE NO: 4.6 representing that in this highly volatile market Mutual Fund is the
destination for investment
Options Number of respondents Percentage
Yes 39 78
No 11 22
Total 50 100
GRAPH NO: 4.6 representing that in this highly volatile market Mutual Fund is the
destination for investment
Percentage
Percentage
78
22
Yes No
ANALYSIS AND INTEPRETATION:
Form the above table shows that most of the respondents say yes that in this highly volatile
market Mutual Fund is the destination for investment. 78% of respondents agree that Mutual
Fund is the destination for investment and remaining 22% of respondents say that in this highly
volatile market Mutual Fund is not a destination for investment. This shows that Mutual Fund
Companies well have to develop schemes that suitable to present volatile market to attract more
investors.

MUTUAL FUND
TABLE NO: 4.7 representing that respondent’s monthly income
Below 100000 26 52
100000 to 500000 20 40
500000 to 1000000 3 6
Above 1000000 1 2
Total 50 100
GRAPH NO: 4.7 representing that respondent’s monthly income
MONTHLY INCOME
Percentage
52%
40%
6% 2%
Below 100000 100000 to 500000 to Above 1000000

500000 1000000
From the above table representing that monthly income of respondents, 52% of respondents
monthly income below 100000, 40% of respondents monthly income 100000-500000, 6% of
respondents monthly income 500000-1000000 and 2% of respondents monthly income above
1000000. This information helps to develop different schemes based on investors monthly
income group.
TABLE NO: 4.8 shows that risk associated with SBI Mutual Fund

MUTUAL FUND

Low 27 54
Moderate 13 26
High 10 20
Total 50 100
GRAPH NO: 4.8 shows that risk associated with SBI Mutual Fund
RISK
Percentage
54%
26%
20%
Low Moderate High
The Table representing risk associated with SBI Mutual Fund, 54% of respondents say that SBI
Mutual Fund is low risk, 26% of respondents say that SBI Mutual Fund is moderate risk and
20% of respondents say SBI Mutual Fund is high risk. Most of the respondents say that SBI
Mutual Fund is associated with low risk.
TABLE NO: 4.9 representing that respondents prefer most while investing

MUTUAL FUND
Factor Number of respondents Percentage
Liquidity 5 10
Low risk 8 16
High return 17 34
Company reputation 20 40
Total 50 100
GRAPH NO: 4.9 representing that respondents prefer most while investing
FACTOR PREFER
Percentage
40%
34%
16%
10%
Liquidity Low risk High return Company

reputation
ANALYISIS AND INTERPRETATION:
The Table 4.9 tells that which factor investors prefer most while investing. 40% of the
respondents prefer company reputation, 34% of respondents prefer high returns than 16% of
respondents prefer low risk and 10% of respondents prefer liquidity. Highest 40% of respondents
prefer company reputation. From the above we can interpret that most of respondents prefer
company reputation and high return.

MUTUAL FUND
TABLE NO: 4.10 shows that which investment does investors fell more profitable
Options Number of investor Percentage

Fixed deposit 9 18
Mutual Fund 39 78
Equities 7 14
Commodities 1 2
Share trading 2 4
other 3 6
Total 50 100
GRAPH NO: 4.10 shows that which investment does investors fell more profitable
Percentage
Percentage
78
18 14
2 4 6
Fixed deposit Mutual Fund Equities Commodities Share trading other
The Table 4.10 reveled that 78% of investors feel more profitable in mutual fund, 18% of
respondents feel more profitable in fixed deposit, 14% of respondents feel more profitable in
equities, 6% feel more profitable in other investment, 4% feel more profitable in share trading
and 2% of respondents feel more profitable in commodities. It reveled that majority of
respondents feel more profitable in mutual fund compare to other investment pattern.
TABLE NO: 4.11 representing total investment amount of respondents

MUTUAL FUND
Options Number of investor percentage
Below 50000 23 46
50001 to 100000 21 42
100001 to 200000 5 10
above 200001 1 2
Total 50 100
GRAPH NO: 4.11 representing total investment amount of respondents
percentage
46 42
10
2
Below 50000 50001 to 100000 100001 to above 200001
200000
ANALYSIS AND INTREPRETATION:
From the above table representing total investment amount of respondents, 46% of respondents
total investment amount below 50000, 42% of respondents total investment amount more then
50000 to 100000, 10% of respondents total investment amount is more than 100000-200000 and
2% of respondents total investment amount is above 200000. Majority of the respondents total
investment amount is below 50000.

MUTUAL FUND
TABLE NO: 4.12 representing which asset management company investors prefer to
invest
SBI 14 28
UTI 1 12
Reliance 2 4
HDFC 24 48
Other 9 18
Total 50 100
GRAPH NO: 4.12 representing which asset management company investors prefer to
invest
ASSET MANAGEMENT COMPANY

Percentage
48
28 18
2 4
SBI UTI Reliance HDFC Other
The above table indicates that 48% of respondents prefer HDFC Asset Management Company
to invest, 28% respondents prefer SBI AMC to invest, 18% prefer other AMC to invest, 4%
prefer Reliance ACM and 2% of respondents prefer UTI AMC. Majority of the respondents
prefer HDFC AMC. SBI AMC provide more service to investor to attract more investors.

MUTUAL FUND
TABLE NO: 4.13 representing which channel dose investors prefer while investing
Financial advisor 14 28
Bank 5 10
AMC 31 62
Total 50 100
GRAPH NO: 4.13 representing which channel does investors prefer while investing
Financial
advisor
28%
ACM Bank
62% 10%
The above Tables tells that 62% of respondents prefer Asset Management Company channel to
invest, 28% respondents prefer financial advisor channel to invest and 10% of respondents prefer
bank network to invest. Majority of the investor prefer AMC channel to invest.

MUTUAL FUND
TABLE NO: 4.14 shows that type of fund respondent choose
Option Number of respondents Percentage

Having only debt portfolio 15 30
Having debt and equity portfolio 26 52
Only equity portfolio 9 18
Total 50 100
SOURCE: primary data
GRAPH NO: 4.14 shows that type of fund respondent choose
Percentage
Percentage
52
30
18
Having only dabt protfolio Having dabt and equit protfolio Only equity protfolio
ANALYSIS AND INTREPRETATION:
From the above table represent that when investor want to invest their money which type of
fund they choose, 52% of respondent choose debt and equity portfolio, 30% of respondent
choose debt portfolio and 18% of respondents choose only equity portfolio. Majority of the
respondents prefer debt and equity portfolio.
TABLE NO: 4.15 representing investors investment pattern

MUTUAL FUND
Pattern Number of respondents percentage

one time investment 10 20
systematic investment plan 40 80
Total 50 100
GRAPH NO: 4.15 representing investors investment pattern
percentage
one thime investment systamatic investment plan
20%
80%
From the above table tells that most of the respondent’s investment pattern is systematic
investment plan. 80% of respondent’s investment pattern is systematic investment plan and 20%
of respondent’s investment pattern is one time investment.

MUTUAL FUND
TABLE NO: 4.16 shows that reason for selecting SBI Mutual Fund

diversification 7 19.44
better return and safety 8 22.22
reduction in risk 10 27.78
SBI MF is associated with
SBI 11 30.56
Total 36 100
GRAPH NO: 4.16 shows that reason for selecting SBI Mutual Fund
Percentage
Percentage
19.44 22.22 27.78 30.56
diversification better return and reduction in risk SBI MF is

safety associated with
SBI
ANALYISIS AND INTERPRETATION:
The table representing reason for selecting SBI Mutual Fund, 30.56% select reason that SBIMF
is associated with SBI, 27.78% select reason that SBIMF is less risk, 22.22% select reason that
SBIMF is better return and safety and 19.44% select SBIMF for diversification. Majority of
investor select SBIMF because it is associated with SBI.
TABLE NO: 4.17 representing number of years respondents investing in SBI Mutual Fund

MUTUAL FUND

One year 7 28
Two years 3 12
Three years 8 32
More then three years 7 28
Total 25 100
GRAPH NO: 4.17 representing number of years respondents investing in SBI Mutual Fund
Percentage
Percentage
32
28 28
12
One year Two years Three years More then three

years
From the table most of the respondents investing in SBI mutual fund from 3years. 32% of
respondents investing in SBI mutual fund from 3years, 28% of respondents investing in SBI
mutual fund from more than 3 years, 28% of respondents investing in SBI mutual fund from one
year and 12% of respondents investing in SBI mutual fund from two years.

MUTUAL FUND
TABLE NO: 4.18 representing that respondent resaving return every year

Dividend pay out 12 24
Dividend reinvestment 20 40
Growth in net asset value 18 36
Total 50 100
GRAPH NO: 4.18 representing that respondent resaving return every year
Percentage
Percentage
40
36
24
Dividend pay out Dividend reinvestment Growth in net asset value
From the above table representing that 40% of respondents want to receive return dividend
reinvestment, 36% of respondents want to receive growth in net asset value and 24% of
respondents want to receive return dividend pay out. Majority of the respondents want to receive
return dividend reinvestment.

MUTUAL FUND
TABLE NO: 4.19 representing respondents redeemed there mutual fund because of
following reasons
Number of
Options respondents Percentage
Non performance of fund 9 18
Non availability of good service from mutual
funds company 15 30
Non availability of investment support 15 30
Lack of information about fund performance 11 22
Total 50 100
GRAPH NO: 4.19 representing respondents redeemed there mutual fund because of
following reasons
Percentage
Percentage
30 30
22
18
Non performance of fund Non avilability of good Non avilability of Lack of information about
service from mutual funds investment suuport fund performance
co
From the above table 30% of respondents redeemed their mutual fund because non availability of
good service from mutual fund company, 30% of respondents redeemed their mutual fund
because non availability of investment support, 22% of respondents redeemed their mutual fund
because lack of information about fund performance and 18% of respondents redeemed their
mutual fund because non performance of fund. Majority of respondents redeemed their mutual
fund because non availability of good service from mutual fund company and non availability of
investment support.

MUTUAL FUND
CHAPTER-5
FINDINGS, SUGGESTION AND CONCLUSION
FINDINGS:
 It reveals that majority of the respondents fall under the age group of 30-40 years.
 It reveals that majority of the respondent’s education qualification is post-graduation.
 It reveals the majority of the respondents are working in private sector when compare to
other.
 It reveals that majority of the respondents aware about SBI Mutual Fund.
 It reveals that majority of the respondents aware about SBI Mutual Fund through
Financial advisors.
 It finds that majority of the respondents tells that in this highly volatile market mutual
fund is the destination form investment.
 It finds that most of the respondent’s monthly income is below 100000.
 It finds that majority of the respondents perception on SBI Mutual Fund is low risk.
 It finds that most respondents prefer company reputation when compared to while
investing.
 It reveals that most of the respondents feel that Mutual Fund is more profitable then
compare to other investment.
 It reveals that most of the respondent’s total investment is below 50000.
 It finds that majority of the respondents prefer HDFC Asset Management Company to
invest.
 It finds that majority of the respondents prefer AMC Channel while investing.
 It finds that majority of the respondents want to choose debt and equity portfolio when
compared to debt portfolio and equity portfolio.
 It finds that most of the investor’s investment pattern is systematic investment plan and
very less investors choose one time investment pattern.

MUTUAL FUND
 It finds that most of respondents select mutual fund because SBI Mutual Fund is
associated with SBI.
 It finds that majority of the respondents investing in SBI Mutual Fund from 3 years.
 It finds that majority of the respondents like to receive return every year as dividend
reinvestment.
 It finds that majority of the respondents ever redeemed mutual fund because of non-
availability of good service from mutual fund company and non-availability of
investment support.

MUTUAL FUND
SAGGESTIONS:
 Majority of the investors age group is 30-40 years. So I suggest develop new schemes to
attract other age group of investors by understanding their needs.
 30% of respondents are not aware about SBI Mutual Fund, give more promotion to
attract investors. Give more advertisement about SBI Mutual fund that persuades
investors to invest in SBI Mutual fund.
 Most of the investors prefer company reputation while investing. So I suggest to maintain
good company reputation in financial market.
 Most of the respondents prefer HDFC Asset Management Company to invest when
compared to SBI AMC. So I suggest find reason why investors prefer HDFC AMC and
develop strategy.
 Majority of respondents redeemed their fund because of no availability of good services
and investment support, so I suggest give good service to investor and get feedback from
them and improve strategy.
 Understand investor need and help him formulate investment goals and objective, before
making specific recommendation, advisor should gain whole picture of investors part
experience, life style and goals as well as other investment and current financial
situation.
 Conduct regular review to ensure that your strategy continues to provide optimal result
for company.
 Investor play a major role in retaining present and gaining new customer to company.
Hence they should invest intelligently to give to investors.

MUTUAL FUND
CONCLUSION:
Running a successful mutual fund requires complete understanding of the peculiarities of the
Indian stock market and also the purchase of the small investors. This study has made an attempt
to understand, the financial behavior of the investors performance of mutual funds. Observation
in many of them think their money will not be success in mutual fund. Many people do not
invest in mutual fund because of volatile market except risk takes.
Financial advisors are the most preferred channel for the investment in mutual fund. They can
increase investors option, apart from AMC investors who directly know well about mutual fund
its operations.

MUTUAL FUND
BIBLIOGRAPHY:
1. Obitual and Sridhar (1991) “Mutual Funds and Investors Interest”, Chartered Secretary,
Vol.22(1):22-24.
2. Shashi Kant Uma (1993).” Restoring investor confidence”, The Hindu Survey of Indian
Industry,pp435-437.
3. Gupta, L.C. (1994). “Mutual Fund and Asset Preference”, Society for Capital Market
Research and Development, Delhi.
4. Shukla and Singh (1994) Investment Management, 6th edition, S. Chand & Co. Ltd,pp2-3
5. Rich fort in and Sturat Michelson (1995). “Emerging trendsof mutual fund in India: A
study across category and type of
6. Gupta and sehgal (1997). “ Mutual fund vs. life insurance: behavioral analysis of retail
investors”, International Journal of Business and Management, Vol. 3(10).
7. Dutta, G. (2013).”Profitablity Picture Improves for some Large and Small AMCs in
FY12-13”.
Website:
 www.sbi.com
 www.mouthshut.com
 www.shodhaganga.com

MUTUAL FUND
ANNEXURE
Dear respondent....
I am Sowmya G B 4th Sem M.com student carrying out a survey on a “A study on

investor perception towards SBI mutual funds” with special reference to Tumkur. Hence I seek
your opinion by answering the following questions concerning to this topic. I request your kind
cooperation in this regard. I promise you. That the information provide by you would be kept
confidential and used only for academic purpose.
Questionnaires:
a) Name: ......................................................
b) Address: ....................................................
c) Age:
a) 20- 30 ( ) c) 40-50( ) e) above 60( )
b) 30-40 ( ) d) 50-60( )
d) Contact number: .......................................
e) Occupation:
a) Government sector ( ) c) Privet sector ( )
b) Business ( ) d) Agriculture ( )
f) Qualification:
a) Post-graduation ( )
b) Under-graduation ( )
c) Other ( )
1. Do you aware about SBI mutual fund and their operation?

MUTUAL FUND
a) Yes ( )
b) No ( )
2. If yes how did you know about SBI mutual fund?
a) Advertisement ( )
d) Peer group ( )
c) Banks ( )
d) Financial advisors ( )
3. In this highly volatile market, do you think mutual funds are a destination for investment?
a) Yes ( )
b) No ( )
4. What is your monthly individual income approximately?
a) Below 100000 ( )
b) 100000 to 500000 ( )
c) 500000 to 1000000 ( )
d) Above 1000000 ( )
5. How do you rate the risks associated with SBI mutual funds?
a) Low ( )
b) Moderate ( )
c) High ( )
6. While inventing your money, which factor you prefer most?
a) Liquidity ( )

MUTUAL FUND
b) Low risk ( )
c) High return ( )
d) Company reputation ( )
7. Which investment do you fell more profitability?
a) Fixed deposit ( )
b) Mutual fund ( )
c) Equities ( )
d) Commodities ( )
e) Share trading ( )
f) Others ( )
8. What is your total investment amount?
a) Below 50000 ( )
b) 50001 to 100000 ( )
c) 100001 to 200000 ( )
d) Above 200000 ( )
9. Which asset management company will you prefer to invest?
a) SBI ( )
b) UTI ( )
c) HDFC ( )
d) Reliance ( )
e) Other, specify...........................

MUTUAL FUND
10. Which channel will you prefer while investing in Mutual fund?
a) Financial advisor ( )
b) Bank ( )
c) Asset management company ( )
11. When you want to invest which type of fund would you choose?
a) Having only debt portfolio ( )
d) Having debt and equity portfolio ( )
c) Only equity portfolio ( )
12. How is your investment pattern?
a) One time investment ( )
b) Systematic investment plan ( )
13. Reasons for selecting SBI Mutual fund?
a) Diversification ( )
b) Better return and safety ( )
c) Reduction in risk ( )
d) SBIMF is associated with SBI ( )
14. Since how many years you are investing in SBI Mutual fund schemes
a) One year ( )
b) Tow years ( )
c) Three years ( )

MUTUAL FUND
d) More than three years ( )
15. How would you like to receive the returns every year?
a) Dividend payout ( )
d) Dividend reinvestment ( )
c) Growth in Net asset value ( )
16. Have you ever redeemed your mutual funds because of
a) Non-performance of fund ( )
b) Non availability of good service from mutual funds company ( )
c) Non availability of investment support ( )
d) Lack of information about fund performance ( )

MUTUAL FUND

MUTUAL FUND

MUTUAL FUND

MUTUAL FUND

MUTUAL FUND

A Study On Investors Perception and Performance Towards Sbi Mutual Fund

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A STUDY ON INVESTORS PERCEPTION AND PERFORMANCE TOWARDS SBI

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 1

Association of Mutual Fund in India:

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 2

 To take regulate conduct of distributors including disciplinary actions (cancellation of

Meaning of mutual fund:

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 3

A mutual fund is a professionally managed investment scheme, usually run by an asset

Types of mutual funds

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 4

1. Equity mutual fund: -

2 .Debt mutual funds: -

3. ELSS–Equity linked savings schemes: -

Advantages and disadvantages of mutual fund

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 5

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 6

2. Index does matter: -

“A STUDY ON INVESTORS PERCEPTION AND PERFORMANCE TOWARDS SBI

2.2 LITERATURE REVIEWE

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 8

2.3 STATEMENT OF PROBLEM:

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 9

1. To know the investor perception towards SBI Mutual funds in Tumkur.

3. To know the preference of the portfolios.

4. To find out the most preference channel.

2.5 Scope of the study:

2.6 Research design

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 10

Population size 500, sample size is 50.

2.7 RESEARCH PLANNING

Chapter 1: Introduction: This chapter consist introduction of mutual fund, History of

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 11

Chapter 5: Finding, suggestion and conclusion: Under this chapter important

2.8 Limitations of the study:

ABOUT SBI MUTUAL FUND COMPANY:

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 12

SBI MUTUAL FUND SCHEMES:

1.SBI Regular income schemes:

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 13

The investment objective of Regular Income Scheme 1990 is to achieve a combination of

2.SBI Monthly Income Scheme:

5. SBI Growth Schemes

6. SBI Cumulative Income Schemes

7. SBI Magnum Equity Fund

8. SBI Magnum Liquid Bond Fund

9. SBI Magnum Tax Gain Scheme

10. SBI Magnum Balanced Fund

11. SBI Magnum Sector Fund Umbrella

12. SBI Magnum Rising Income Scheme 1993

13. SBI Focused Equity fund

14. SBI Contra Fund

15. SBI Small Cap Fund

16. SBI Equity Hybird Fund

WHY CHOOSE SBI MUTUAL FUND?

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 14

SBI MUTUAL FUND COMPANY LOGO:

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 15

ANALYSIS AND INTERPRETAION OF PERCEPTION ON SBI MUTUAL

TABLE NO: 4.1 representing age group of respondents

Age Number of respondents Percentage

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 16

GRAPH NO: 4.1 representing age group of respondents

ANANYA INSTITUTE OF COMMERCE AND MANAGEMENT Page 17