OPEN ENDED MUTUAL FUND SCHEMES OF STATE BANK OF INDIA

Shrinathji Institute of Management Upali Oden, Nathdwara (RAJ.)

By:-Deepesh Agarwal IV Sem (Finance/Marketing)

INTRODUCTION
MUTUAL FUNDS
A mutual fund pools the money of people with similar investment goals.

The term mutual is used in sense that all its returns, minus its expenses, are shared by the funds unit holders
The Mutual Funds offer the common man an opportunity to invest in a diversified professionally managed basket of securities at a relatively low cost

Mutual funds in India

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.

MUTUAL FUND SCHEMES

1. OPEN-ENDED SCHEME: When a fund is accepted and liquidated on a continuous basis by a mutual fund manager, it is called open-ended scheme.

2. CLOSE-ENDED SCHEME: When units of a scheme are liquidated (repurchase) only after the expiry of a specified period, it is known as a close-ended scheme.

RETURN BASED CLASSIFICATION:

1. INCOME FUND SCHEME: The scheme that is tailored to suit the needs of investors who are particular about regular returns is known as income fund scheme. 2. GROWTH FUND SCHEME: it is a mutual fund scheme that offers the advantage of capital appreciation of the underlying investment.

INVESTMENT BASED CLASSIFICATION:

1. EQUITY FUND SCHEME: A kind of mutual fund whose strength is derived from equity based investments is called equity fund scheme. 2. BOND FUND SCHEME: it is a type of mutual fund whose strength is derived from bond based investments. 3. BALANCED FUND SCHEME: a scheme of mutual fund that has a mix of debt & equity in the portfolio of investment may be referred to as a Balanced Fund Scheme. 4. SECTORAL FUND SCHEMES: when the managers of mutual fund invest the collected from a wide variety of small investors 5. FUND-OF-FUND SCHEME: There can also be funds of funds, where funds of one mutual funds are invested in the units of other mutual funds.

Objective

The main purpose of doing this project was to explain about SBI mutual fund schemes and its functioning.

Helps to know in details about mutual fund industry right from its inception stage, growth and future prospects.
It also helps in understanding different schemes of mutual funds.

The project study was done to ascertain the asset allocation, entry load, exit load, associated with the mutual funds.
Ultimately this would help in understanding the benefits of mutual funds to investors.

MY VIEWS:

There is an increasing awareness about the mutual funds among Indian Investors. Young working individuals are more interested in growth based mutual funds. The brokers play a very vital role in fund selection. The bias of the broker towards a scheme impacts the sale of scheme. Investors like to get regular info. about their product Many people dont understand various technical jargons used in the FACTSHEET.

SUGGESTIONS

The investors are not willing to invest in mutual fund unless a minimum return is assured. All the mutual funds are operated only in the public sector, hence private sector must be allowed to float mutual funds, intensifying competition in this industry. Steps should be taken for funds to make fair and truthful disclosures of information to the investors. Uniform coordinated regulations by a single agency would be formed to provide the shelter to the investors. Mutual fund can penetrate rural areas like the Indian insurance industry with simple and limited products.

CONCLUSION

MOST OF THE SHEMES ARE OPEN ENDED. EASY TO INVEST. SYSTEMATIC INVESTMENT PLANS. DO NOT REQUIRE PAN CARD FOR SIPs. INVITES EASY INVESTMENT OF ONLY HUNDERED RUPEE IN CHOTA SIP SCHEME.

THANK YOU