SBI Mutual Fund
SBI Mutual Fund
A STUDY ON
“MUTUAL FUNDS”
with Reference to
SBI MUTUAL FUNDS
Asst. Professor
Submitted to
DEPARTMENT OF COMMERCE
Submitted by
PAMPANA. MOHAN
Regd. No. E18331040
CERTIFICATE
This is to certify that the project title “A STUDY ON MUTUAL FUNDS” with
the guidance of Mr.s. Eswar rao , Asst. Professor, DR. VS KRISHNA GOVT.
DEGREE & PG COLLEGE (A) and has not been submitted to any other University
I would like express my since regratitude to the Principal Dr. Sravan kumar,
M.Sc., Ph.D., for giving permission to do our project work. We are deeply obliged the
Dr.VS. Krishna Govt. Degree and PG(A)College, for his valuable guidance and
I would like to express our sincere gratitude to the management and staff of
SBI MUTUAL FUNDS for giving their permission to do my project work in their
PAMPANA.MOHAN
CHAPTER-1
COMPANY- INTRODUCTION
1.1 INTRODUCTION
1.2 NEED FOR THE STUDY
1.3 OBJECTIVES OF THE STUDY
1.4 METHODOLOGY OF STUDY
1.5 LIMITATIONS
`
CHAPTER -2
COMPANY - PROFILE
CHAPTER -3
THERORITICAL FRAME WORK
CHAPTER – 4
DATA ANALYSIS AND INTERPRETATION
CHPATER - 5
SUMMARY AND FINDING
5.1 SUMMARY
5.2 FINDING
5.3 SUGGESTIONS
5.4 CONCLUSION
1
CHAPTER–1
INTRODUCTION
2
Contents :
Meaning
Definition
Aspects of Mutual Funds
Objective of the study
Advantages
Disadvantages
Scope Of The Study
Need For The Study
3
investment. Mutual funds can invest in stocks, bonds, cash and/or other
Mutual Fund is totally based on the current market position. The Mutual
fund is thus “Mutual”, i.e. the fund belongs to all investors. The money
shares, debentures and other securities. The income earned through these
investments and capital the capital appreciations realized are shared by its
Mutual Fund is the most suitable investment for the common man as it
participates in the gain or loss of the fund. Units are issued and can be
each day. Investments in the securities are spread across a wide cross-
section of industries and sectors and thus the risk ids reduced.
Diversification reduces the risk because all stocks may not move in the
Management Company.
Mutual fund.
recent times. A large number of new players have entered the market and
1. Portfolio Diversification
2. Professional Management
4. Liquidity
5. Flexibility &Convenience
8. Choice of schemes
9. Transparency
2. No tailor-made Portfolios
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fund schem
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RESEARCH METHODOLOGY
that is required by the top management to asset them for the better
Data Sources
used only for the reference. Research has been done by primary data
Primary data:
Secondary date:
websites.
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need like available risk willing to take and expected return from the
security. But he cannot select his own portfolio and manage on his
select the mutual fund for investment. To know which fund is best
CHAPTER-2
COMPANY PROFILE
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Contents :
Introduction
Products
Competitors
12
SBI Funds Management Pvt. Ltd. Is one of the leading fund houses
in the country with an investor base of over 4.6 million and over 20 years
SBI Funds Management Pvt. Ltd. Is a joint venture between ‘The State
Today the fund house manages over Rs.28,500 crores of assets and
1. Equity Schemes:-
MSFU - IT Fund
2. Debt Schemes:-
the same time the expected returns from debt funds would be
investors.
3. Balanced Schemes:-
debt investments. Hence, they are less risky than equity funds,
CHAPTER– 3
THERORITICAL FRAME WORK
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Mutual Fund
The mutual fund in India started in 1963 with the formation of Unit
Bank. Though the growth was slow, but it accelerated from the year 1987
In the past decade, Indian mutual fund industry had seen a dramatic
monopoly of the market had seen an ending phase; the Assets Under
Management (AUM) was Rs.67 billion. The private sector entry tothe
fund family raised the AUM to Rs.470 billion in March 1993 and till
space with the mutual fund industry can be broadly put into four phases
UTI was de- linked from the RBI and the Industrial Bank Of India (IDBI)
took over the regulatory and administrative control in place of RBI. The
first scheme launched by UTI was Unit Scheme1964. At the end of 1988
was the first non – UTI Mutual Fund established in June 1987 followed
by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank Of India (June 90),
Bank Of Baroda Mutual Fund (Oct 92). LIC established its mutual fund
in June 1989 while GIC had set up its mutual fund in December 1990. At
the end of 1993, the mutual fund industry had assets under management
of Rs.47,004 crores.
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1993 was the year in which the first Mutual Fund Regulations
Came into being, under which all mutual funds, except UTI were to be
with Franklin Templeton) was the first private sector mutual fund
industry now functions under the SEBI (Mutual Fund) Regulations 1996.
As at the end of January 2003, there were 33 mutual funds with total
Act 1963 UTI was bifurcated into two separate entities. One is the
certain other schemes. The second is the UTI Mutual Fund Ltd.,
sponsored by SBI, PNB, BOB, and LIC. It is registered with SEBI and
BASED ON THEIRSTRUCTURE
MUTUAL FUNDS CAN BE CLASSIFIED AS FOLLOW :
1) Open-ended funds
2) Close-ended funds
OPEN-ENDED FUNDS:-Investment can buy and sell the units from the
once.
BASED ON INVESTMENTOBJECTIVES
1) Equity funds
2) Balanced funds
3) Debt funds
volatility.
investors.
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equity. As a result, on the risk- return ladder, they fall between equity
and debt funds. Balanced funds are the ideal mutual funds vehicle for
remaining indebt.
money. Put your money into any of these debt funds depending on
money market.
e) Gift funds LT:- They invest 100% of their portfolio in long term
government securities.
INVESTMENT STRATGIES
investor gets units fewer units when the NAV is high and
more units when the NAV is low. This is called as the benefit
the sponsor, the money invested by the asset management company and
mutual fund.
money.
holds the property of the mutual fund in trust for the benefit of unit
functioning of the mutual fund. The trustee may also form a limited
Act to raise money through, the sale of units to the public for
investing in the capital market. The funds thus collected are passed
corporate who carries out the transfer of units to the unit holder in
Sampling:
Sampling Procedure:
The sample was selected of them who are the customers / visitors
them being investors or not or availing the services or not. It was also
and through filling up the questionnaire prepared. The data has been
Sampling Size:
Sampling design:
Data has been presented with the help of bar graph, pie charts, line graphs
etc.
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LIMITATION:
CHAPTER - 4
DATA ANALYSIS
AND
INTERPRETATION
35
investors of Nakodar the most are in the age group of 31-35 yrs. i.e.,
7%, the second most investors are in the age group of below 30 yrs. i.e.,
Interpretation:
Outof20 Mutual Fund investors 55% of the Nakodar are Graduate /
Pvt. service 7
Business 2
Agriculture 0
Others 1
Interpretation:
10,000 – 20,000 1
20,000 – 30,000 3
30,000 – 40,000 4
40,000 – 50,000 7
the monthly income group of more than 50,000 and minimum investors
Interpretation:
From the above table out of the 100%, 62% of the people invest
in mutual funds Remaining 38% of people they haven’t interest
invest in mutual funds.
Interpretation:
From the following above table it is clear that all the modes of
information are not the same. Advertisement is more popular.
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Interpretation:
The following above table 54% of people prefer to government sector,
46% of people prefer to private sector.
Interpretation:
From the above table clear that 40% of the respondents want investments
to grow fastly, 26% of the respondents want their investment to grow at an
average rate, and 34% of people respondents to grow steadily.
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Interpretation:
The following above table 54% of people prefer to government sector,
46% of people prefer to private sector.
Interpretation:
From the above table clear that 40% of the respondents want their
investments to grow fastly, 26% of the respondents want their investment
to grow at an average rate, and 34% of people respondents to grow
steadily
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Interpretation:
From the following above table 68 % of the people had bought other
investment policies, and 32% of people they hadn’t interest bought other
investment policies.
Interpretation:
From the above table it is clear that 41% of the respondents are moderately
comfortable in making investment decisions, 32% of respondents are low in
marketing decisions, and 27% of respondents are high comfortable in marketing
investment decisions.
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Options Frequency
Withdraw your money 16
Wait and watch 52
Invest more in it 32
Interpretation:
From the above table 52% of the respondents will wait and watch even if
the share market drops, 32% of people invest more in it if share market
drops, and 16% 0f people with draw money if the share market drops.
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CHAPTER- 5
SUMMARY AND FINDING
44
Contents :
Summary
Suggestions
Finding
Conclusion
45
EXECUTIVE SUMMARY
very important for a company, which offers a basket of offerings, to design clear
cut strategies.
The project that I had worked upon in my training provided a lot of scope to learn,
right from the basics, about the investment opportunities available in mutual funds
included a market research where I interacted with different people, to gain more
The research work contains a comprehensive study of the Mutual Funds in India
and how it emerged as one of the most rapidly growing investment avenue. The
project also involve some practical learning of working in the bank as well. It
involves interaction with the customers that walk in to the bank to understand
their needs to invest in which fund and market, and to draw out the information
new ideas to attract more customers that helped SBI MUTUAL FUND the sales
Suggestions:
To regulate entry and exit loads effectively as it creates a lot of
To improve market penetration by targeting not only metros but mini-
made of the benefits. Nobody will invest until and unless he is fully
Mutual funds offer a lot of benefit which no other single option could
offer. But most of the people are not even aware of what actually a
mutual fund is? They only see it as just another investment option. So the
advisors should try to change their mindsets. The advisors should target
for more and more young investors. Young investors as well as persons
at the height of their career would like to go for advisors due to lack of
financial Advisors about the Fund/Scheme and its objective, because they
about the risk tolerance of the investors/customers, their need and time
(how long they want to invest). By considering these three things they
Younger people aged under 35 will be a key new customer group into
the future, so making greater efforts with younger customers who show
Customers with graduate level education are easier to sell to and there
SIP is easy for monthly salaried person as it provides the facility of do the
investment in EMI.
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FINDINGS
numbers. The second most investors were in the age group of 41-
45 years and the least were in the age group of below 30years.
respondents.
5) Most of the investor who did not invested in SBI MF due to not
aware of SBI MF, the second most due to Agent’s advice and rest
CONCLUSION
understanding of the peculiarities of the Indian Stock Market and also the
many of people have fear of mutual fund. They think their money will
not be secure in mutual fund. They need the knowledge of mutual fund
those companies where they have faith or they are well known with them.
There are many AMCs in Nakodar but only some are performing well
due to Brand awareness. Some AMCs are not performing well although
some of the schemes of them are giving good return because of not
Reliance, UTI, SBI MF, ICICI Prudential etc. they are well known
Brand they are performing well and their assets. Under Management is
larger than others whose Brand are not well known like Principle,
Sunderem, etc.
mutual fund. Financial advisors are the most preferred channel for the
investment in mutual fund. They can investors mind from one investment
AMC because they do not have to pay entry load. Only those people invest
directly who know well about mutual fund and its operations and those
have time.
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BIBLIOGRAPHY
NEWSPAPERS
TELEVISION CHANNELS(CNBC AAWAJ)
MUTUAL FUND HANDBOOK
FACT SHEET ANDSTATEMENT
WWW.SBIMF.COM
WWW.MONEYCONTROL.COM
WWW.ONLINERESEARCHONLINE.COM
WWW.MUTUALFINDSINDIA.COM
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