investment in mutual fund at sbi

8/10/2019 Investment in Mutual Fund at Sbi

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C.A.GIRIDHARANT.J.INSTITUTE OF

TECHNOLOGY


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MUTUAL FUND:The Definition

SEBI 1996Defined Mutual funds as A fundestablished in the form of a trust to raise monies

through the sale of units to the public or a section ofthe public under one or more schemes for investing insecurities, including money market instruments.

Investment company institute of the US A Mutualfund is a financial service organization that receivemoney from share holder, invest it ,earn returns on it,

attempts to make it grow and agrees pay theshareholders cash on demand for the current value ofhis investment.


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The mutual fund industry in India started in 1963 with theformation of Unit Trust of India, at the initiative of theGovernment of India and Reserve Bank of India.

Though the growth was slow, but it accelerated from the year1987 when non- UTI players entered the industry.

In the past decade, Indian mutual fund industry had seendramatic improvements, both quality wise as well as quantitywise.

Before, the monopoly of the market had seen an endingphase; the Asset under Management (AUM) was Rs. 6,700 cr.

The private sector entry to the fund family raised the AUM to

Rs. 4,700 cr in March 1993 and till March 2007; it reached theheight of Rs. 3, 25,000 cr.


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The evolution of State Bank of India can be tracedback to the first decade of the 19th century. Itbegan with the establishment of the Bank ofCalcutta in Calcutta, on 2 June 1806.

The bank was redesigned as the Bank of Bengal,three years later, on 2 January 1809. It was the first ever joint-stock bank of the British

India, established under the sponsorship of theGovernment of Bengal.

Subsequently, the Bank of Bombay (established on15 April 1840) and the Bank of Madras(established on 1 July 1843) followed the Bank ofBengal.


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SUBSIDIARIES: The State Bank Group includes a network of eight banking

subsidiaries and several non-banking subsidiaries. Through the establishments, it offers various services

including merchant banking services, fund management,

factoring services, primary dealership in governmentsecurities, credit cards and insurance. The eight banking subsidiaries are: State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI)

State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Travancore (SBT)


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Magnum sector funds umbrellacontraEquity fund:

Magnum tax gain Equity scheme:Magnum balanced Equity fund:Magnum multiplier plus Equity scheme:Magnum equity fund scheme:SBI blue chip equity fundMagnum income plus debt fund:

Magnum income debt fund:Magnum insta cash liquid fund:SBI premier liquid fund:


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Primary objective: To know the Mutual funds investment

in the State Bank of India. Secondary objective:

To Study on the SBI Mutual fund Schemes andreturn To Study on debt funds, equity schemes, liquid

funds To Study on schemes to give good dividend in the

SBI Mutual Funds. To Study on asset allocation of funds sector To Study on return on growth


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Primary data: Primary data comprises information

obtained by during discussion with the officials. No Primary Data is used in this study.

Secondary data: The secondary data comprises of information

obtained from offer of the documentwww.sbimf.com, magazine, journals and its

maintained by the organization. In the study maximum part of the data obtained is

from secondary data. So the project is totallybased on secondary data.
http://www.sbimf.com/http://www.sbimf.com/


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YEAR 1 3 5 SINCE INCEPTION

FUND 90.73 11.2 29.78 26.86

BENCH MARK 85.39 6.82 19.86 14.79

Interpretation:

Magnum sector funds umbrellacontra

equity fund 90.73, 11.2, 29.78, 26.86 according to

period for 1, 3, 5 years with inception period .Bench

mark growth

85.39, 6.82, 19.86, 14.79 according to period for 1, 3,

5 years with inception period

Table showing Magnum sector funds

umbrella contra Equity fund:


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Magnum sector funds umbrella contra fund

0

10

20

30

40

50

60

70

80

90

100

1 3 5 SINCE INCEPTION

YEAR

RE

TURN

FUND

BENCH MARK


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YEAR 1 3 5 SINCE INCEPTION

FUND 86.94 6.14 28.59 19.46

BENCH MARK 85.39 6.82 19.86 13.53

Table showing Magnum tax gain Equity scheme:

Interpretation:Magnum tax gain equity fund 86.94,

6.14, 28.59, 19.46 according to period for 1, 3, 5

years with inception period .Bench mark growth

85.39, 6.82, 19.86, 13.53 according to period for 1,3, 5 years with inception period


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Magnum tax gain scheme

0

10

20

30

40

50

60

70

80

90

100

1 3 5 SINCE INCEPTION

YEAR

RETURN

FUND

RETURN


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Magnum income plus debt fund:Report as on : NAV 29/01/10 1.08Magnum income debt fund:Report as on : NAV 29/01/10 7.33Magnum insta cash liquid fund:Report as on : NAV 29/01/10

6.82SBI premier liquid fund:Report as on : NAV 29/01/10 6.22


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Magnum sector funds umbrella

contra Equity fund: Report as on: NAV 29/01/10 26.86 Magnum tax gain Equity scheme: Report as on: NAV 29/01/10 19.46 Magnum balanced Equity fund:

Report as on: NAV 29/01/10 18.23 Magnum multiplier plus Equity scheme: Report as on: NAV 29/01/10 15.2 Magnum equity fund scheme: Report as on : NAV 29/01/10 15.53 SBI blue chip Equity fund: Report as on : NAV 29/01/10 15.2


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Magnum income plus debt fund:Report as on : NAV 29/01/101.08Magnum income debt fund:

Report as on : NAV 29/01/107.33Magnum insta cash liquid fund:Report as on : NAV 29/01/106.82SBI premier liquid fund:Report as on : NAV 29/01/106.22


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Interpretation:

Magnum sector funds umbrella contra

equity fund give return since inception to

26.86 among the scheme


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Magnum sector funds umbrella contra equity fundreturn give since inception to 26.86

Magnum multiplier plus equity scheme give 71.97growth return

Magnum multiplier plus equity scheme give 51.10dividend return There is lack of publicity on mutual fund products. In asset allocation all fund managers give more

prefers on large cap sector.

MFs, although regulated by the Govt. are notinsured against losses.


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Fund manager should take step to increase SBI premier liquidfundreturn.

Fund manager give concentrate on magnum income plus deptfund increase dividend and Growth in future

In assets allocation of funds manager should be give prefers

to all sector Fund manager must design the portfolio in such a way tolessen risk that is prevalent in market

Investor invest in long term is get back good return When publicity increases in mutual funds automatically

increases the mutual fund business.

Investor should carefully study the risk before investing Government and Industry should take further step for futuregrowth


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References:-

Security Analysis and Portfolio Management, PUNITHAVATHYPANDIAN.

Investment Management, V.K. BHALLIA, FISCHER AND

JORDEN

Websites:- www.mutualfundsindia.com www.amfiindia.com

www.valueresearchonline.com www.sbimf.com www.moneycontrol.com
http://www.mutualfundsindia.com/http://www.amfiindia.com/http://www.valueresearchonline.com/http://www.sbimf.com/http://www.moneycontrol.com/http://www.moneycontrol.com/http://www.sbimf.com/http://www.valueresearchonline.com/http://www.amfiindia.com/http://www.mutualfundsindia.com/

investment in mutual fund at sbi

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