a study of sbi mutual funds

7/21/2019 A Study of Sbi Mutual Funds

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A STUDY OF SBI MUTUAL FUNDS

Project submitted to

S.A.V A!A"YA INSTITUT# OF MANA$#M#NT STUDI#S

I% &'rti'( )u()i((me%t o) t*e re+uireme%ts )or

M'ster i% M'%',eme%t Studies

B-

VIAYALA/MI.V. S!A"D!I"o(( No012

S&eci'(i3'tio%4FINAN#B'tc*0 5678 4 5679

U%der t*e ,uid'%ce o)

:PROF. KHUSHBOO SATARDEKAR;

1


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A STUDY OF SBI MUTUAL FUNDS

Project submitted to


I% &'rti'( )u()i((me%t o) t*e re+uireme%ts )or

M'ster i% M'%',eme%t Studies

B-

VIAYALA/MI.V. S!A"D!I"o(( No012

S&eci'(i3'tio%4 FINAN#B'tc*0 5678 4 5679

U%der t*e ,uid'%ce o)

:PROF. KHUSHBOO SATARDEKAR;

2


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SHELUDECEMBER 2014

Students Declaration

I hereb declare that this re!ort sub"itted in !artial #ul#ill"ent o# the re$uire"ent o#

MMS De%ree o# Uni&ersit o# Mu"bai to S.A.V A!A"YA INSTITUT# OF

MANA$#M#NTSTUDI#S.'his is " ori%inal (or) and is not sub"itted #or a(ard o#

an de%ree or di!lo"a or #or si"ilar titles or !ri*es+

,a"e - .I/LMI+.+SHRDHI

Class - MMS32ndear3 inance

Roll ,o+ - 45

6lace - SHELU

Date -

Students Si%nature -

Certi#icate

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'his is to certi# that the dissertation sub"itted in !artial #ul#ill"ent #or the a(ard o# MMS

de%ree o# Uni&ersit o# Mu"bai to S.A.V A!A"YA INSTITUT# OF MANA$#M#NT

STUDI#S is a result o# the bona#ide research (or) carried out b

Miss.


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Chapter

No. Particulars Pae No.

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! E"ecuti#e Su$$ar% &

' ()tro*uctio) +

Introduction a study of sbi mutualfunds

Introduction to the industry/sector

Introduction to the company

3 Literature Revie !"econdary #ata$

, Research -etho*olo%

%roblem #efinition

&b'ectives

Research desi(n

Limitations

5 A)al%sis a)* Fi)*i)s

) Suestio)sReco$$e)*atio)s

* Co)clusio)s

+ Bi/lioraph% a)* Re0ere)ces

E1ECUT(2E SU--AR3

)


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In fe years ,utual -und has emer(ed as a tool for ensurin( one.s financial ell

bein( ,utual -unds have not only contributed to the India (roth story but have

also helped families tap into the success of Indian Industry 0s information and

aareness is risin( more and more people are en'oyin( the benefits of investin( in

mutual funds he main reason the number of retail mutual fund investors remains

small is that nine in ten people ith incomes in India do not no that mutual

funds eist ut once people are aare of mutual fund investment opportunities the

number ho decide to invest in mutual funds increases to as many as one in five

people he tric for convertin( a person ith no noled(e of mutual funds to a

ne ,utual -und customer is to understand hich of the potential investors are

more liely to buy mutual funds and to use the ri(ht ar(uments in the sales process

that customers ill accept as important and relevant to their decision

(NTRODUCT(ON

*


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'.! ()tro*uctio) o) 4A stu*% o0 S/i -utual Fu)*s5

0 ,utual -und is a trust that pools the savin(s of a number of investors ho share

a common financial (oal he money thus collected is invested by the fund

mana(er in different types of securities dependin( upon the ob'ective of the

schemehese could ran(e from shares to debentures to money maret instruments

he income earned in these investments and the capital appreciation reali6ed by

the scheme is shared by its unit holders in proportion to the number of units oned

by them hus a ,utual -und is the most suitable investment for the common man

as it offers an opportunity to invest in a diversified professionally mana(ed

portfolio at a relatively lo cost 0nybody ith an invest able surplus of a fe

thousand rupees can invest in ,utual -unds 7ach ,utual -und scheme has a

defined investment ob'ective and strate(y

0 mutual fund is the ideal investment vehicle for today.s comple and modern

financial scenario ,arets for e8uity shares bonds and other fied income

instruments real estate derivatives and other assets have become mature and

information driven %rice chan(es in these assets are driven by (lobal events

occurrin( in faraay places 0 typical individual is unliely to have the

noled(e sills inclination and time to eep trac of events understand their

implications and act speedily

0 mutual fund is anser to all these situations It appoints professionally 8ualified

and eperienced staff that mana(es each of these functions on a fulltime basis he

lar(e pool of money collected in the fund allos it to hire such staff at a very lo

cost to each investor In fact the mutual fund vehicle eploits economies of scale

in all three areas 9research investment and transaction processin(

0 draft offer document is to be prepared at the time of launchin( the fund

ypically it pre specifies the investment ob'ective of the fund the ris associated

the cost involved in the process and the broad rules for entry into

and eit from the fund and other areas of operation In India as in most countries

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these sponsors need approval from a re(ulator "7I in our case "7I loos at

trac records of the sponsor and its financial stren(th in (rantin( approval to the

fund for commencin( operations

0 sponsor then hires an asset mana(ement company to invest the funds accordin(

to the investment ob'ective It also hires another entity to be the custodian of the

assets of the fund and perhaps a third one to handle re(istry or for the unit

holders of the fundIn the Indian contet the sponsors promote the 0sset

,ana(ement :ompany alsoin hich it holds a ma'ority stae In many cases a

sponsor can hold a 1;;< stae in the 0sset ,ana(ement :ompany !0,:$ 7(

irla =lobal -inance is the sponsor of the irla "un Life 0sset ,ana(ement

:ompany Ltd hich has floated different mutual funds schemes and also acts as

an asset mana(er for the funds collected under the schemes

0s per "7I re(ulations mutual funds can offer (uaranteed returns for a maimum

period of one year In case returns are (uaranteed the name of the (uarantor and

ho the (uarantee ould be honored is re8uired to be disclosed in the offer

document

Investments in securities are spread across a ide cross>section of industries and

sectors and thus the ris is reduced #iversification reduces the ris because all

stocs may not move in the same direction in the same proportion at the same time

,utual fund issues units to the investors in accordance ith 8uantum of money

invested by them Investors of mutual funds are non as unit holders

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!.! THE CONCEPT OF -UTUAL FUND (N DETA(L

0 mutual fund uses the money collected from investors to buy those assets

hich are specifically permitted by its stated investment ob'ective hus an e8uity

fund ould buy e8uity assets 9 ordinary shares preference shares arrants etc 0

bond fund ould buy debt instruments such as debentures bonds or (overnment

securities It is these assets hich are oned by the investors in the same proportion

as their contribution bears to the total contributions of all investors put to(ether

0ny chan(e in the value of the investments made into capital maret

instruments !such as shares debentures etc$ is reflected in the @et 0sset Aalue

!@0A$ of the scheme @0A is defined as the maret value of the ,utual -und

schemeBs assets net of its liabilities @0A of a scheme is calculated by dividin( the

maret value of schemeBs assets by the total number of units issued to the investors

1;
http://www.appuonline.com/mf/knowledge/concept.htmlhttp://www.appuonline.com/mf/knowledge/concept.html


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0 ,utual -und is an investment tool that allos small investors access to a

ell>diversified portfolio of e8uities bonds and other securities 7ach shareholder

participates in the (ain or loss of the fund Cnits are issued and can be redeemed asneeded he funds @et 0sset value !@0A$ is determined each day

Dhen an investor subscribes to a mutual fund he or she buys a part of the

assets or the pool of funds that are outstandin( at that time It is no different from

buyin( shares of 'oint stoc :ompany in hich case the purchase maes the

investor a part oner of the company and its assets Eoever hether the investor

(ets fund shares or units is only a matter of le(al distinction

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0 ,utual -und is a trust that pools the savin(s of a number of investors ho

share a common financial (oal he money thus collected is then invested in capital

maret instruments such as shares debentures and other securities he income

earned throu(h these investments and the capital appreciation reali6ed is shared by

its unit holders in proportion to the number of units oned by them hus ,utual

fund is most suitable investment for the common man as it offers an opportunity to

invest in a diversified professionally mana(ed baset of securities at a relatively

lo cost

!.! -UTUAL FUND OPERAT(ON FLO6

CHART

CHART !.'

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-rom the above chart it can be observed that ho the money from the

investors flo and they (et returns out of it Dith a small amount of fund investors

!., A*#a)taes a)* *isa*#a)taes o0 $utual 0u)*s :

AD2ANTA7ES OF -UTUAL FUND

%rofessional mana(ement

%ortfolio #ivercification

Reduction / #iversification of Ris

Li8uidity

-leibility F :onvenience

Reduction in ransaction cost

"afety of re(ulated environment

:hoice of schemes

ransparency

D(SAD2ANTA7E OF -UTUAL FUND

@o control over :ost in the Eands of an Investor

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@o tailor>made %ortfolios

,ana(in( a %ortfolio -unds

#ifficulty in selectin( a "uitable -und "cheme

'.' ()tro*uctio) to the i)*ustr%sector

he insurance sector as opened up in the year 1??? facilitatin( the entry of private players intothe industry Dith an annual (roth rate of 2431 percent and thelar(est number of life insurancepolicies in force the potential of the Indian insuranceindustry is hu(e he year 1??? sa arevolution in the Indian insurance sector as ma'or structural chan(es too place ith the endin(of =overnment monopoly and thepassa(eof the Insurance Re(ulatory and #evelopment 0uthority !IR#0$ ill liftin( entryrestrictions for private players and alloin( forei(n players to enter the maret ith somelimits ondirect forei(n onership0ccordin( to the :"& the insurance and banin( services. contributiontothecountry.s =#% is *1 percent out of hich the (ross premium collection forms asi(nificant part Life insurance penetration in India as less than 1 percent till 1??;>?1#urin( the G?;s it asbeteen 1 and 2 percent and from 2;;1 it as over 2 percent In2;;3>;4 it as 24 percent In2;;*>;+ it as 14percent

he impetus for increase is due to the active role played by IR#0 in licensin( private playersand tain( positive steps in increasin( the insurance aareness amon( the people esides theinsurance companies in (eneral and private insurance companiesin particular are reachin( out to untapped potential in rural areas ith a((ressivecampai(nsInnovative products smart maretin( and a((ressive distribution have enabledfled(lin( privateinsurance companies to si(n up Indian customers faster than anyoneepected Life insurance isvieed as a ta savin( device %eople are no turnin( to the private sector for providin( themith ne products and (reater variety for their choicehe improvement in -#I flos reflected

the impact of recent initiatives aimed at creatin(an enablin( environment for -#I and forencoura(in( infusion of ne technolo(iesandmana(ement practices he =overnment.s proposal to increase the -#I cap in theinsurancesector from the present 2) percent to 4? percent has raised epectations amon(the internationalinsurance companies

111#efinition

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Insurance is a contract in hich sum of money is paid to the assuredinconsideration of insurer.s incurrin( ris of payin( a lar(e sum upon a (ivencontin(ency>>>

Hustice indall

1127volution of Insurance

In the days of yore insurance as in its crude form and as cooperative andvoluntary in natureDhen here and ho it ori(inated is still a matter of research in oneay or the other asprevalent in olden days De can trace its history from the evolutionsociety from huntin( sta(e tothe modern industrial a(e 0 ord 0=:EE7, occursin the orld.s most ancient Eindu"cripture Ri( Aedahe ord 0=:EE7, means insurance It clearly indicated that aboutfour thousand years a(o insurance as prevalent in its crude form It as cooperative

andvoluntary in

nature %eople formed different (roups of or(ani6ations to share the

lossamon( themselves incase of a particular ris 7ach member contributed some amount to acommon fund to meet the unforeseen losses "ometimes they also contributed e8uallytocompensate person as and hen he suffered a loss races of insurance in the ancient orld arealso found in the form of marino trade loans or carriers contracts hich included an element ofinsurance7vidence is on records that arran(ements embodyin( the idea of insurance ere madein abylonia and India at 8uite an early period References ere made to theconcept of insurancein ,anu.s code ,anu "mrity It as ain to a(ashemo of Ri(veda in hich the ellbein( and security of the community as aimed at Eoeverthere is no evidence that insurancein its present farm as practiced prior to telfth century

113@ature of Insurancehe insurance has the folloin( characteristics hich are observed in cases of life marine fireand (eneral insurance

1"harin( of rissJInsurance is a cooperative device to share the financial losseshich mi(ht befall on an individualor his facility on the occurrence ofspecifiedevent such as sudden death of the bread inner marine perils in marineinsurance firein the fire insurance and theft insurance etc in the case of (eneral insurance

2:ooperative deviceJ0 lar(e number of persons a(ree to share the loss arisin(sue to a particular ris hus insuranceis a cooperative device

3Aalue of risJhe ris is evaluated before insurin( to char(e the amount of share called premium

4%ayment made at contin(encyJ

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he payment is made at a certain contin(ency insured he :ontin(ency may be death firemarine perils etc

50mount of paymentJhe amount of payment depends upon policy insured

114 -unctions of Insurance

0$%rimary -unctions>

1$Insurance provides certaintyJ Insurance provides certainty of payments atthe uncertainty oflosses he element of uncertainty is reduced by better plannin( and administration

2$Insurance provides protectionJ he ris ill occur or not hen ill occur and ho much lossill be there here are uncertainties of happenin( of time and amount of losses he mainfunction of the insurance is to provide protection a(ainst the losses

3$Ris sharin(J Ris is uncertain and therefore the loss arisin( from the ris is also uncertain0ll business concern faces the problem of the ris and if the concern is bi( enou(h the handlin(of ris becomes a speciali6edfunction Insurance as a device is the outcome of the eistence ofvarious

$"econdary -unctions>

1$%revention of lossJ %revention is alays better than cure%revention is by far the best solutionto the problem of ris It is moreeffective and cheapest method to avoid the unfortunateconse8uence utsometimes prevention is not alays possible and 7ffective

2$%rovides capitalJ It provides the capital to the society -or plandevelopment of country there isa (reat need for hu(e amount of capital @o days the insurance companies are renderin(positive help in thedevelopment of trade commerce and industry of the country

3$Improves efficiencyJ 0chievement of (oals it improves not onlyhis efficiency of the masses isalso advanced he insurance eliminatesorries and miseries of losses as death and destructionof property carefree person can devote his ener(ies for better

4$7nsures the elfare of societyJ Insurance is a sa(a of serviceandsecurity to thee society "ecurity of the life and property (iven byinsurance brin( peace ofmind to the insured he investment in LI: inelfare schemes lie electricity housin( atersupply a(ro industryestates are able to solve many problems in India

1)


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'.8 ()tro*uctio) to the co$pa)%

"tate an of India is an Indian multinational %ublic "ectorbanin(and financial servicescompany It is a (overnment>oned corporationith its head8uarters in ,umbai ,aharashtra0s of #ecember 2;13 it had assets of C"K3++ billion and 1*;;; branches includin( 1?;forei(n offices main( it the lar(est banin( and financial services company in India by assets"tate an of India is one of the i( -our bansof India alon( ithan of aroda%un'ab@ational anand an of Indiahe ban traces its ancestry toritish India throu(h the Imperial an of India to the foundin(in 1+;) of the an of :alcuttamain( it the oldest commercial ban in the Indian

"ubcontinentan of ,adrasmer(ed into the other to presidency bans in ritishIndia an of :alcuttaand an of ombayto form the Imperial an of Indiahich in turnbecame the "tate an of India =overnment of Indiaoned the Imperial an of India in 1?55ithReserve an of India!IndiaBs :entral an$ tain( a );< stae and renamed it the "tatean of India In 2;;+ the (overnment too over the stae held by the Reserve an of India"tate an of India is a re(ional banin( behemoth and has 2;< maret share in deposits andloans amon( Indian commercial bans

EistoryMeditN

1*
http://en.wikipedia.org/wiki/Public_Sectorhttp://en.wikipedia.org/wiki/Public_Sectorhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Big_Four_(banks)http://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=1http://en.wikipedia.org/wiki/Public_Sectorhttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Government-owned_corporationhttp://en.wikipedia.org/wiki/Mumbai,_Maharashtrahttp://en.wikipedia.org/wiki/Big_Four_(banks)http://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Punjab_National_Bankhttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/British_Rajhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Indian_Subcontinenthttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=1


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"eal of ($perial Ba)9 o0 ()*ia

he roots of the "tate an of India lie in the first decade of the 1?th century hen the an of

:alcuttalater renamed the an of en(al as established on 2 Hune 1+;) he an of en(al

as one of three %residency bans the other to bein( thean of ombay!incorporated on 15

0pril 1+4;$ and the an of ,adras!incorporated on 1 Huly 1+43$ 0ll three %residency bans ere

incorporated as'oint stoc companiesand ere the result of royal chartershese three bans

received the eclusive ri(ht to issue paper currency till 1+)1 hen ith the %aper :urrency 0ct the

ri(ht as taen over by the =overnment of India he %residency bans amal(amated on 2* Hanuary

1?21 and the re>or(anised banin( entity too as its nameImperial an of India he Imperial

an of India remained a 'oint stoc company but ithout =overnment participation

%ursuant to the provisions of the "tate an of India 0ct of 1?55 the Reserve an of Indiahich

isIndiaBs central banac8uired a controllin( interest in the Imperial an of India &n 1 Huly 1?55

the Imperial an of India became the "tate an of India In 2;;+ the (overnment of Indiaac8uired

the Reserve an of IndiaBs stae in "I so as to remove any conflict of interest because the RI is

the countryBs banin( re(ulatory authority

In 1?5? the (overnment passed the "tate an of India !"ubsidiary ans$ 0ct his made "I

subsidiaries of ei(ht that had belon(ed toprincely statesprior to their nationali6ation and operatonal

tae>over beteen "eptember 1?5? and &ctober 1?); hich made ei(ht state bans associates of

"I his ac8uisition as in tune ith the first -ive ear %lan hich prioritised the development of

rural India he (overnment inte(rated these bans into the "tate an of India system to epand its

rural outreach In 1?)3 "I mer(ed "tate an of Haipur !est 1?43$ and "tate an of ianer

!est1?44$

"I has ac8uired local bans in rescues he first as the an of ihar !est 1?11$ hich "I

ac8uired in 1?)? to(ether ith its 2+ branches he net year "I ac8uired @ational an of Lahore

1+
http://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/Indian_Princely_Stateshttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Calcuttahttp://en.wikipedia.org/wiki/Bank_of_Bengalhttp://en.wikipedia.org/wiki/Bank_of_Bombayhttp://en.wikipedia.org/wiki/Bank_of_Madrashttp://en.wikipedia.org/wiki/Joint_stock_companyhttp://en.wikipedia.org/wiki/Royal_charterhttp://en.wikipedia.org/wiki/Imperial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Central_Bankhttp://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Indian_Princely_States


19/34

!est 1?42$ hich had 24 branches -ive years later in 1?*5 "I ac8uired Orishnaram aldeo an

hich had been established in 1?1) in=alior "tate under the patrona(e of ,ahara'a ,adho Rao

"cindia he ban had been theDukan Pichadi a small moneylender oned by the ,ahara'a he

ne banBs first mana(er as Hall @ roacha a %arsi In 1?+5 "I ac8uired the an of :ochin

in Oerala hich had 12; branches "I as the ac8uirer as its affiliate the "tate an of

ravancore already had an etensive netor in Oerala

here has been a proposal to mer(e all the associate bans into "I to create a me(a ban and

streamline the (roupBs operations M1;N

he first step toards unification occurred on 13 0u(ust 2;;+ hen "tate an of "aurashtramer(ed

ith "I reducin( the number of associate state bans from seven to si hen on 1? Hune 2;;? the

"I board approved the absorption of"tate an of Indore "I holds ?+3< in "tate an of

Indore !Individuals ho held the shares prior to its taeover by the (overnment hold the balance of1*urban areasM2NIn the financial year 2;12>13 its revenue as I@R 2;;5); :rores !C"K3)?

billion$ out of hich domestic operations contributed to ?535< of revenue "imilarly domestic

operations contributed to ++3*< of total profits for the same financial year M2N

1?
http://en.wikipedia.org/wiki/Gwalior_Statehttp://en.wikipedia.org/wiki/Gwalior_Statehttp://en.wikipedia.org/wiki/Madho_Rao_Scindiahttp://en.wikipedia.org/wiki/Madho_Rao_Scindiahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-10http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-11http://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-12http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-13http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=2http://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=3http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-AR201213-2http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-AR201213-2http://en.wikipedia.org/wiki/Gwalior_Statehttp://en.wikipedia.org/wiki/Madho_Rao_Scindiahttp://en.wikipedia.org/wiki/Madho_Rao_Scindiahttp://en.wikipedia.org/wiki/Keralahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-10http://en.wikipedia.org/wiki/State_Bank_of_Saurashtrahttp://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-11http://en.wikipedia.org/wiki/State_Bank_of_Indorehttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-12http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-13http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=2http://en.wikipedia.org/wiki/Non-resident_Indianhttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=3http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-AR201213-2http://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-AR201213-2


20/34

Cnder the%radhan ,antri Han #han o'anaof financial inclusion launched by =overnment in

0u(ust 2;14 "I held 113;; camps and opened over 3; lahs accounts by "eptember hich

included 211) lah accounts in rural areas and ++ lah accounts in urban areas M14N

()ter)atio)al prese)ceMeditN

he Israeli branch of the "tate an of India located in Ramat =an

0s of 2+ Hune 2;13 the ban had 1+; overseas offices spread over 34 countries It has branches of

the parent in,osco :olombo#haa -ranfurt Eon( Oon( ehran Hohannesbur( London Los

0n(eles ,ale in the ,aldives ,uscat #ubai @e or &saa "ydney and oyo It hasoffshore

banin(units in the ahamas ahrain and"in(apore and representative offices inhutanand :ape

on

he :anadian subsidiary "tate an of India !:anada$ also dates to 1?+2 It has seven branches four

in the orontoarea and three in the Aancouverarea

"I operates several forei(n subsidiaries or affiliates In 1??; it established an offshore banJ "tate

an of India !,auritius$ "I !,auritius$ has 15 branches in ma'or cities/tons of the country

includin( Rodri(ues

"I "ri Lana no has three branches located in :olombo Oandyand Haffna he Haffna branch as

opened on ? "eptember 2;13 "I "ri Lana the oldest ban in "ri Lana celebrated its 15;th year

in "ri Lana on 1 Huly 2;14

"tate an of India !"I$ ranch at sim "ha sui Eon( Oon(

In 1?+2 the ban established a subsidiary "tate an of India !:alifornia$ hich no has ten

branches 9 nine branches in the state of :alifornia and one in Dashin(ton #: he 1;th branch as

2;
http://en.wikipedia.org/wiki/Pradhan_Mantri_Jan_Dhan_Yojanahttp://en.wikipedia.org/wiki/Pradhan_Mantri_Jan_Dhan_Yojanahttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-etsep-14http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=4http://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Tehranhttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Vancouverhttp://en.wikipedia.org/wiki/Vancouverhttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Kandyhttp://en.wikipedia.org/wiki/Kandyhttp://en.wikipedia.org/wiki/Jaffnahttp://en.wikipedia.org/wiki/Sri_Lankahttp://en.wikipedia.org/wiki/Pradhan_Mantri_Jan_Dhan_Yojanahttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-etsep-14http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=4http://en.wikipedia.org/wiki/Ramat_Ganhttp://en.wikipedia.org/wiki/Moscowhttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Dhakahttp://en.wikipedia.org/wiki/Tehranhttp://en.wikipedia.org/wiki/Johannesburghttp://en.wikipedia.org/wiki/Maldiveshttp://en.wikipedia.org/wiki/Muscat,_Omanhttp://en.wikipedia.org/wiki/Osakahttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Offshore_bankhttp://en.wikipedia.org/wiki/Bahamashttp://en.wikipedia.org/wiki/Singaporehttp://en.wikipedia.org/wiki/Bhutanhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Cape_Townhttp://en.wikipedia.org/wiki/Torontohttp://en.wikipedia.org/wiki/Vancouverhttp://en.wikipedia.org/wiki/Colombohttp://en.wikipedia.org/wiki/Kandyhttp://en.wikipedia.org/wiki/Jaffnahttp://en.wikipedia.org/wiki/Sri_Lanka


21/34

opened in -remont :alifornia on 2+ ,arch 2;11 he other ei(ht branches in :alifornia are located

in Los 0n(eles 0rtesia "an Hose :ano(a %ar -resno "an #ie(o ustin and aersfield

In@i(eria "I operates as I@, an his ban be(an in 1?+1 as the Indo>@i(erian ,erchant

an and received permission in 2;;2 to commence retail banin( It no has five branches in@i(eria

InEindu "tates of @epal!Eindu Ra'ya @epal$ "I ons 4?< of SB( Nepal!"tate an in @epal$

share ith@epal =overnmentoin( the rest and "I @7%0L has branches throu(hout the country in

each and every city as banin( has become the ma'or part of daily life for@epalesepeople In

,osco "I ons );< of :ommercial an of India ith :anara anonin( the rest

InIndonesiait ons *)< of % an Indo ,one

he "tate an of India already has a branch in "han(hai and plans to open one in ian'inM15N

InOenya "tate an of India ons *)< of =iro :ommercial an hich it ac8uired for C"K+

million in &ctober 2;;5M1)N

Associate /a)9sMeditN

,ain ranch of "I in ,umbai

"I no has five associate bans don from the ei(ht that it ori(inally ac8uired in 1?5? 0ll use the

"tate an of India lo(o hich is a blue circle and all use the "tate an of name folloed by

the re(ional head8uartersB nameJ

"tate an of ianer F Haipur

"tate an of Eyderabad

"tate an of ,ysore

"tate an of %atiala

"tate an of ravancore

21
http://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepali_peoplehttp://en.wikipedia.org/wiki/Commercial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-15http://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Giro_Commercial_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-16http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=5http://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancorehttp://en.wikipedia.org/wiki/Nigeriahttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepalhttp://en.wikipedia.org/wiki/Nepali_peoplehttp://en.wikipedia.org/wiki/Commercial_Bank_of_Indiahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Indonesiahttp://en.wikipedia.org/wiki/Tianjinhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-15http://en.wikipedia.org/wiki/Kenyahttp://en.wikipedia.org/wiki/Giro_Commercial_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_India#cite_note-16http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=5http://en.wikipedia.org/wiki/State_Bank_of_Bikaner_%26_Jaipurhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Patialahttp://en.wikipedia.org/wiki/State_Bank_of_Travancore


22/34

he "tate an of India and all its associate bans are identified by the same blue keyholelo(o he

"tate an of India ordmarusually has one standard typeface but also utilises other typefaces

"tate an of IndiaMumbai LHO

No)/a)9i) su/si*iariesMeditN

0part from its five associate bans "I also has the folloin( non>banin( subsidiariesJ

"I :apital ,aretsLtd

"I -unds ,ana(ement %vt Ltd

"I -actors F :ommercial "ervices %vt Ltd

"I :ardsF %ayments "ervices %vt Ltd !"I:%"L$

"I #-EI Ltd

"I Life Insurance :ompany Limited

"I =eneral Insurance

In ,arch 2;;1 "I !ith *4< of the total capital$ 'oined ith @% %aribas!ith 2)< of the

remainin( capital$ to form a 'oint venture life insurance company named "I Life Insurance

company Ltd In 2;;4 "I #-EI !#iscount and -inance Eouse of India$ as founded ith its

head8uarters in ,umbai

Other SB( ser#ice poi)tsMeditN

0s of 31 ,arch 2;14J "I has 43515 0,sand "I (roup !includin( associate bans$ has 514?1

0,s "I has become the first ban to install an 0, at #rass in the Hammu F Oashmir Oar(il

re(ion his as the anBs 2*;32nd 0, on 2* Huly 2;12

22
http://en.wikipedia.org/wiki/Wordmarkhttp://en.wikipedia.org/wiki/Wordmarkhttp://en.wikipedia.org/w/index.php?title=Mumbai_LHO&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=6http://en.wikipedia.org/wiki/SBI_Capital_Marketshttp://en.wikipedia.org/wiki/SBI_Cardshttp://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=7http://en.wikipedia.org/wiki/Automated_teller_machinehttp://en.wikipedia.org/wiki/Wordmarkhttp://en.wikipedia.org/w/index.php?title=Mumbai_LHO&action=edit&redlink=1http://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=6http://en.wikipedia.org/wiki/SBI_Capital_Marketshttp://en.wikipedia.org/wiki/SBI_Cardshttp://en.wikipedia.org/wiki/SBI_Life_Insurance_Company_Limitedhttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/w/index.php?title=State_Bank_of_India&action=edit&section=7http://en.wikipedia.org/wiki/Automated_teller_machine


23/34

8.; Literature Re#ie< =Seco)*ar% Data>

0 lar(e number of studies on the (roth and financial performance of mutual funds have been carried out

durin( the past in the developed and developin( countries rief revies of the folloin( research ors

reveal the ealth of contributions toards the performance evaluation of mutual fund maret timin( and

stoc selection abilities of fund mana(ers In India one of the earliest attempts as made by @ational

23


24/34

:ouncil of 0pplied 7conomics Research !@:07R$ in 1?)4 hen a survey of households as undertaen

to understand the attitude toards and motivation for savin(s of individuals

0nother @:07R study in 1??) analy6ed the structure

of the capital maret and presented the vies and attitudes of individual shareholders "7I 9 @:07R

"urvey !2;;;$ as carried out to estimate the number of households and the population of individual

investors their economic and demo(raphic profile portfolio si6e and investment preference for e8uity as

ell as other savin(s instruments #ata as collected from 3; ;;;;; (eo(raphically dispersed rural and

urban households

"ome of the relevant findin(s of the study are J Eouseholds preference

for instruments match their ris perceptionQ an #eposit has an appeal across all income classQ 43< of

the non>investor households e8uivalent to around ); million households apparently lac aareness about

stoc maretsQ and compared ith lo income (roups the hi(her income (roups have hi(her share of

investments in ,utual -unds si(nifyin( that ,utual funds have still not become truly the investment

vehicle for small investors

"ince 1?+) a number of articles and brief essays have been published in financial dailiesperiodicals professional and research 'ournals 2; eplainin( the basic concept of ,utual -unds

and hi(hli(hted their importance in the Indian capital maret environment hey touched upon

varied aspects lie re(ulation of ,utual -unds Investor epectations Investor protection and

(roth of ,utual -unds and some on the performance and functionin( of ,utual -unds

0 fe amon( them are Aidyashanar !1??;$ "arar !1??1$ 0(aral !1??2$ "adha !1??1$

"harma : Lall !1??1$ "amir O arua et al !1??1$ "andeep am6ai !2;;1$ 0tmaramani

!1??5$ 0tmaramani !1??)$ "ubramanyam !1???$ Orishnan !1???$ 0'ay "rinivsasn !1???$

"e(mentation of investors on the basis of their characteristics as hi(hli(hted by Ra'a Ra'an

!1??*$ Investor.s characteristics on the basis of their investment si6e Ra'a Ra'an !1??*$ and the

relationship beteen sta(es in life cycle of the investors and their investment pattern as studied

Ra'a Ra'an !1??+$ -riend et al !1?)2$ made an etensive and systematic study of 152 mutual

funds found that mutual fund schemes earned an avera(e annual return of 124 percent hile

their composite benchmar earned a return of 12) percent

heir alpha as ne(ative ith 2; basis points &verall results did

not su((est idespread inefficiency in the industry :omparison of fund returns ith turnover

and epense cate(ories did not reveal a stron( relationship Irin ron -7 !1?)5$ analy6ed

issues relatin( to investment policy portfolio turnover rate performance of mutual funds and its

impact on the stoc marets hey identified that mutual funds had a si(nificant impact on the

price movement in the stoc maret

42 &H7:IA7"

a o find out the %reference of the investors for 0sset ,ana(ement of company

b o no the preference of the portfolios

24


25/34

c o no hy one has invested in "I ,utual -unds

d o find out the most preference channel

e o find out hat should do to boost ,utual - und Industry

,.; Research -etho*olo%

-inancial analysis is mainly done to compare the (roth profitability and financial soundness of

the respective ban by dia(nosin( the information contained in the financial statements

25


26/34

-inancial analysis is done to identify the financial stren(ths and eanesses of the to bans by

properly establishin( relationship beteen the items of alance "heet and %rofit F Loss

0ccount It helps in better understandin( of bans financial position (roth and performance by

analy6in( the financial statements ith various tools and evaluatin( the relationship beteen

various elements of financial statements "ample "i6e In the present study an attempt has been

made to evaluate and compare the financial performance of "I and I:I:I an #ata collection

he study is based on secondary data that has been collected from annual reports of the

respective bans he study covers the period of 5 years ie from year 2;;+>;? to year 2;12>13

#ata analysis Ratio 0nalysis as applied to analy6e and compare the trends in banin( business

and financial performance Aarious ratios used areJ 1 :redit #eposit Ratio 2 &peratin(

7penses / otal -unds 3 @et %rofit / otal funds 4 :ash #eposit Ratio 5 Return &n 78uity

:R7#I #7%&"I R0I&J >

:redit>#eposit Ratio is the proportion of loan>assets created by a ban from the deposits

received :redits are the loans and advances (ranted by the ban In other ords it is the amount

lent by the ban to a person or an or(ani6ation hich is recovered later on Interest is char(ed

from the borroer #eposit is the amount accepted by ban from the savers and interest if paid to

them

OB?ECT(2ES

2)


27/34

1-.Accepts deposit

2- Gives loans and advances

3- Invests and Borrows

4- Deals in bill of exchange

5- Deals in gold and silver

6- Deals in foreign currencies

7- Underwrite issues

8- Form subsidiary

9- Housing schemes

10- Acts and agent

RESEARCH DES(7N

2*


28/34

he present study is an attempt to eamine the impact of electronic banin( on operational performance

and service 8uality of banin( sector in India his chapter discusses the research methodolo(y of the

dissertation It eplains the scope ob'ectives period and sample of the study he statistical techni8ues

used to analy6e the data and limitations of the study have also been discussed

Pri$ar% Sources:

o achieve the ob'ectives of the study mainly primary data has been used o study the etent of

electronic banin( services in India a survey as conducted durin( the month of Hune 2;;+ he search

as conducted throu(h a orldide eb ith usin( a various ebsites vi6 bannetindiacom and

ebsites of bans found at rbior(in and (oo(lecom to discover the main pa(es and home

pa(es of 5; public and private sector bans hese ebsites ere monitored to have a close loo at the

services delivered to customers 0 chec list containin( various e>banin( services offered by the bans

as prepared to chec the etent of disclosure of banin( services and products by the bans offerin(

electronic banin( services 0ll the data for the said purpose as collected throu(h internet

-easure$e)t o0 E"te)t o0 Electro)ic Ba)9i) Ser#ices:

-or the purpose of etent of e>banin( services 4+ services have been taen into account hese

have been divided into four cate(ories vi6 internet banin( services phone banin( services

mobile banin( services and 0, services

Buil*i) o0 ()*e":

In order to measure the etent of electronic banin( services provided by the bans it as

considered necessary to convert the services into a numerical form -or this purpose an Inde

as prepared he e>banin( services 4+ in all have been divided into four cate(ories vi6

internet banin( services phone banin( services mobile banin( services and 0, services

&ne point has been assi(ned to each

Seco)*ar% Sources:

2+


29/34

he secondary data has been collected from various I0 ulletins published by Indian bans

statistical tables relatin( to bans of India rends and %ro(ress Reports of RI and annual

reports of the bans he (roth of 0,s has been studied by dividin( the bans into five

cate(ories ie nationali6ed bans "I (roup old private sector bans ne private sector

bans and forei(n bans hese have been further classified into onsite 0,s and offsite 0,s

he compiled data relates to the period from 2;;4>;5 to 2;;*>;+ o study the (roth of 0,s

(roth to previous year and to total has been calculated hird ob'ective is based upon both the

primary and secondary data he data re(ardin( 7lectronic clearin( services !debit and credit$

7lectronic fund transfer #ebit cards :redit cards Real time (ross settlement system and

,a(netic In :haracter Reco(nition !,I:R$ has been collected throu(h published sources oth

volume and value based transactions are calculated he data as collected for the period 2;;3>

;4 to 2;;+>;? @o sector> ise division has been made for this ob'ective In order to no the

trend of epayment (roth to previous year has been calculated he fourth section of

8uestionnaire filled by the customers provides the data hich helps to achieve this ob'ective of

the study -olloin( sources are used for the collection of dataJ

1 I0 ulletins published by Indian ans 0ssociation !various issues$

2 "tatistical tables relatin( to bans in India available at the ebsite of Reserve an of India

!rbior(in$

3 Aarious 'ournals and ma(a6ines issued by the bans from time to time

4 rends and %ro(ress Reports of Reserve an of India RI ulletin !various issues$

5 Reports on :urrency and -inance annual publication of RI !various issues$

L(-(TAT(ONS OF S B ( -UTUAL FUND

2?
http://www.rbi.org.in/http://www.rbi.org.in/


30/34

"utual #unds o##er ad&anta%es and disad&anta%es7 (hich are i"!ortant #or ou to consider

and understand be#ore ou decide to bu+ Here (e e@!lore so"e o# the dra(bac)s o# "utual

#unds+

luctuatin% Returns

Di&ersi#ication

Cash and More Cash

Costs

Misleadin% d&ertise"ents

E&aluatin% unds

ANAL3S(S AND F(ND(N7

3;


31/34

he "tate an of lndia is the first public sector ban to start mutual fund buslness follon( the

permission of the =overnment of lndia to do mutual fund bus mess he permission as (ranted in 1?+*he "I ,utual -und launched ts frst scheme ir 13+* th a lon(>term point of vie to help small

investors spread throu(hout the country and mobili6ed Rs 131 cores from ?;;;; Investors In P&:I:B

illS Jund ith an Investor base of over 2>+ million spread over 23 schemes rnool6ed Rs 2;*? crores

Investment in ,utual -unds put everythin( into one paca(e diversification

professionalisrn and ease of purchase in lndia ovei Ttie last fe years ,utual -unds have remer(ed as

ma'or players in savin(s mobili6ation Institutional investors such as mutual fund constitute a very

important component of the capital maret in developin( countries lnvestors have been shoin( eeninterest by subscribin( to various mutual fund schemes anticipatin( hi(her returns and capital (ains

In Oerala "I ,utual -und "chemes are attractive to small investors because

of the brand ima(e of "tate an of lndia ,ore and more investors are investin( in mutual funds

epectin( hi(h return and lo ris covera(e ut the political instability stale of capital maret and

adverse international developments has lead to the poor performance of the mutual funds It is in this

bac(round that a study B%erformance 0ppraisal of "I ,utual -und > ith special reference to Oerala

"tateB assumes relevance

Suestio)sReco$$e)*atio)s

31


32/34

Reco$$e)*atio)s to SB( Fu)* -a)ae$e)t Lt*.

1 Oeep up the brand ima(e in the minds of people throu(h better performance both in thecase of returns as ell as after sales services

2 =ive more financial information to the investors so that they can tae decisions oftheir on investmentlmprove the 8uality of a(ents in their 'ob throu(h trainin( and (ive them betterIncentives ,ae servlce available at every branch of "I for better and easv accessibilityIncrease the speed of (rievances redressel facilties and maei1 accessible to the tnvestors

Reco$$e)*atio)s to the l)#estors o0 SB( -utual Fu)*

1 0n investor should carefully study various mutual fund schemes before investin( in

them eepin( in mind his on needs of (roth returns capital appreciation or ta

savin(s

2 Investors must alays remember that ris and returns (o hand in hand If one antsmore return one ill have to tae more riss

3 Investors shall clot drop on top Sr poor performed mutual fund units too 8uicly

4 Investors donBt put all investment in the same mutual fund #iversify anc invest invariety of funds 5 investors donBt panic and sell mutual fund holdin(s durin( or after aplun(e

Reco$$e)*atio)s to SB( -utual Fu)* Ae)ts! ()ter$e*iaries

Investors need to be educated about the various mutual fund schemes and their ob'ectsthrou(h appropriate publicity measures issuin( brochures etc

2 Improve the confidence amon( investors throu(h appropriate communications

3 %erformance based maretin( strate(ies should be introduced

4 "I ,- schemes adopt tme>bound investment pro(rammers Real benefit can onlybe reali6ed at the time of redemption emporary fluctuations in @0A and re>purchaseprice do not reflect the real benefits 0(ents should convey this basic truth to investors inclear terms

5 0(ents should be informed and advised the available eit options of "I ,iffs to theinvestors

Co)clusio)sased on the detailed analysis of Indian elecom Industry harti 0irtel Limited and its

competitors e conclude the folloin( re(ardin( the financial health of harti 0irtel LimitedJ

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httpJ//mana(ementhelpor(/customer/satisfyhtm

httpJ//airtelbroadbandin/ps/cm/connect/airtelin/airtelin/Eome

httpJ//customersatisfactioncom/

httpJ//marosebcom//airtelin/

httpJ//1;;;venturescom/businessU(uide/crosscuttin(s/customerUsatisfactionhtml

Airtel siteis the site here I come to no about the basic of the company and no more

about the company
http://managementhelp.org/customer/satisfy.htmhttp://airtelbroadband.in/wps/wcm/connect/airtel.in/airtel.in/Homehttp://www.customersatisfaction.com/http://www.markosweb.com/www/airtel.in/http://www.1000ventures.com/business_guide/crosscuttings/customer_satisfaction.htmlhttp://managementhelp.org/customer/satisfy.htmhttp://airtelbroadband.in/wps/wcm/connect/airtel.in/airtel.in/Homehttp://www.customersatisfaction.com/http://www.markosweb.com/www/airtel.in/http://www.1000ventures.com/business_guide/crosscuttings/customer_satisfaction.html

a study of sbi mutual funds

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