kartheek final report sbi mutual fund

INVESTORS CHOICE OF INVESTMENT BETWEEN MUTUAL FUND (EQUITY SCHEMES) AND EQUITY SHARES TOWARDS SBI MUTUAL FUND

1. INDUSTRY PROFILE

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

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. Though the growth

was slow, but it accelerated from the year 1987 when non-UTI players entered

In the past decade, Indian mutual fund industry had seen a dramatic improvement, both

qualities wise as well as quantity wise. Before, the monopoly of the market had seen an

ending phase; the Assets under Management (AUM) was Rs67 billion. The private sector

entry to the fund family raised the amount to Rs. 470 billion in March 1993 and till April

2004; it reached the height if Rs. 1540 billion.

The history of mutual fund industry in India can be better understood divided into

following phases:

Phase1. Establishment and Growth of Unit Trust of India - 1964-87

Unit Trust of India enjoyed complete monopoly when it was established in the year 1963

by an act of Parliament. UTI was set up by the Reserve Bank of India and it continued to

operate under the regulatory control of the RBI until the two were de-linked in 1978 and

the entire control was transferred in the hands of Industrial Development Bank of India

(IDBI). UTI launched its first scheme in 1964, named as Unit Scheme 1964 (US-64),

which attracted the largest number of investors in any single investment scheme over the

years. UTI launched more innovative schemes in 1970s and 80s to suit the needs of

different investors. It launched ULIP in 1971, six more schemes between1981-84,

Children's Gift Growth Fund and India Fund (India's first offshore fund) in 1986, Master

share (India's first equity diversified scheme) in 1987 and Monthly Income Schemes

(offering assured returns) during 1990s. By the end of 1987, UTI's assets under

management grew ten times to Rs 6700 crores.

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Phase II. Entry of Public Sector Funds - 1987-1993

The Indian mutual fund industry witnessed a number of public sector players entering the

market in the year 1987. In November 1987, SBI Mutual Fund from the State Bank of

India became the first non-UTI mutual fund in India. SBI Mutual Fund was later

followed by Can bank Mutual Fund, LIC Mutual Fund, Indian Bank Mutual Fund, Bank

of India Mutual Fund, GIC Mutual Fund and PNB Mutual Fund. By 1993, the assets

under management of the industry increased seven times to Rs. 47,004 crores. However,

UTI remained to be the leader with about 80% market share.

Phase III. Emergence of Private Sector Funds - 1993-96

The permission given to private sector funds including foreign fund management

companies (most of them entering through joint ventures with Indian promoters) to enter

the mutual fund industry in 1993, provided a wide range of choice to investors and more

competition in the industry. Private funds introduced innovative products, investment

techniques and investor-servicing technology. By 1994-95, about 11 private sector funds

had launched their schemes.

Phase IV. Growth and SEBI Regulation - 1996-2004

The mutual fund industry witnessed robust growth and stricter regulation from the SEBI

after the year 1996. The mobilization of funds and the number of players operating in the

industry reached new heights as investors started showing more interest in mutual funds.

Investors' interests were safeguarded by SEBI and the Government offered tax benefits to

the investors in order to encourage them. SEBI (Mutual Funds) Regulations, 1996 was

introduced by SEBI that set uniform standards for all mutual funds in India. The Union

Budget in 1999 exempted all dividend incomes in the hands of investors from income

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tax. Various Investor Awareness Programmes were launched during this phase, both by

SEBI and AMFI, with an objective to educate investors and make them informed about

the mutual fund industry.

Phase V. Growth and Consolidation - 2004 Onwards

The industry has also witnessed several mergers and acquisitions recently, examples of

which are acquisition of schemes of Alliance Mutual Fund by Birla Sun Life, Sun F&C

Mutual Fund and PNB Mutual Fund by Principal Mutual Fund. Simultaneously, more

international mutal fund players have entered India like Fidelity, Franklin Templeton

Mutual Fund etc. There were 29 funds as at the end of March 2006. This is a continuing

phase of growth of the industry through consolidation and entry of new international and

private sector players.

Mutual Fund Companies in India

The concept of mutual funds in India dates back to the year 1963. The era between 1963

and 1987 marked the existence of only one mutual fund company in India with Rs. 67bn

assets under management (AUM), by the end of its monopoly era, the Unit Trust of India

(UTI). By the end of the 80s decade, few other mutual fund companies in India took their

position in mutual fund market. The new entries of mutual fund companies in India were

SBI Mutual Fund, Can bank Mutual Fund, Punjab National Bank Mutual Fund, Indian

Bank Mutual Fund, Bank of India mutual funds the succeeding decade showed a new

horizon in Indian mutual fund industry. By the end of 1993, the total AUM of the

industry was Rs. 470.04 bn. The private sector funds started penetrating the fund

families. In the same year the first Mutual Fund Regulations came into existence with re-

registering all mutual funds except UTI. The regulations were further given a revised

shape in 1996.

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Kothari Pioneer was the first private sector mutual fund company in India which has

now merged with Franklin Templeton. Just after ten years with private sector players

penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund

companies in India.

Current Scenario of the Mutual Fund Industries

The face of the domestic Mutual fund industry is undergoing a transformation, with

continuous shifts in business strategies and models, in order to adapt to changing

regulations. As the Indian mutual fund industry moves up the maturity curve, assets

under management maintain the growth momentum clocking a compounded growth

rate of 25% between 2006-11, reporting a value of Rs 700, 538 crore as on March 31,

2011. Given the latent opportunity in terms of under-penetration of financial products,

the programs of outreach in the sector, looks at various ways to distribute mutual funds

in a cost effective manner.

Asset Management companies keep their focus on innovation in products and more use

of technology so as to take the industry to the next level of growth. In the backdrop of

rising incomes, and increased rate of savings and investment, it is of crucial

importance that products are designed keeping in mind the needs of investors and their

appetite for risk. Industry stakeholders are struggling to build a sustainable distribution

model, which will enhance reach and penetration to the smaller towns and cities.

Industry players keep a keen eye on evolving regulations, identifying innovative ways

to reach the retail consumer.

Taking cognizance of the favorable macro-economic environment, India holds huge

prospects for growth, luring foreign investors. India emerges as one of the most

popular destinations for investments, opening up multiple avenues and promising

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higher yields. Asset management companies in the domestic market look upon this as

an opportunity to manage International funds, as they strategies’ to modify their

distribution model to fit into a global platform. A resilient distribution strategy and

increased scale of operations is required to keep pace with the global players.

New streams of growth arise not only from an increased flow of funds from Flls, but

also through emerging products like pensions, which are slowly gaining ground. The

integration of technology in the service delivery models the use of online platforms,

which succeed in reaching out to a larger number of investors, in Tier 3 to Tier 6

towns, riding on well entrenched mobile net-works, have provided the reins of growth

to the Indian mutual fund industry.

To sum up, some of the challenges plaguing the industry in the current scenario

include that of low retail participation, search for appropriate distribution models, and

product innovation in tune with investor profiles, high costs of transactions and low

levels of investor awareness.

Indian Economy – GDP of SBI Mutual Fund

The economy grew at its fastest pace in ten months, clocking a growth of 8.9 per cent in

the second quarter ended September. The numbers bettered industry and government

expectations that GDP growth would run out of steam in the period. Growth was buoyed

by a healthy increase in service sector and farm output.

The Central Statistical Organization (CSO), in data released today, also revised the first-

quarter growth figures from 8.8 per cent to 8.9 per cent on account of the new base year

adopted in the calculation of inflation and industrial output. The growth numbers in the

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first half have revived hopes of a 9-per-cent-or-thereabouts growth for the whole

financial year — higher than the government’s estimate of 8.5 per cent.

“We may be confident that at the end of this year, GDP growth will not be less than 8.7-

8.75 per cent. It may be more,” said Finance Minister Pranab Mukherjee. He added that

projections of over 9 per cent growth by the International Monetary Fund could be

correct this time.

A growth of 9 per cent in 2010-11 will be significantly higher than the 7.4 per cent

growth recorded in 2009-10 and 6.7 per cent in 2008-09. The government had projected 9

per cent growth in 2011-12. The last time GDP grew faster than 9 per cent was in

October-December 2007-08 (9.3 per cent).

Asked whether the economy could achieve 9 per cent growth in the current fiscal,

Finance Ministry Chief Economic Advisor Kaushik Basu said, “It is not impossible any

more. We are very close to that.”

Association of Mutual Funds in India

With the rise in mutual fund companies, a requirement for mutual fund association in

India was experienced to operate as a non-profit organization. This led to the

establishment of Association of Mutual Funds in India in 1995. Association of Mutual

Funds in India is an important organ of all Asset Management Companies that are

registered with Securities and Exchange Board of India. Till today, all the Asset

Management Companies with Mutual Fund schemes are the members of Association of

Mutual Funds in India. AMFI operates under the superintendence of its Board of

Directors.

Association of Mutual Funds India, also referred to as AMFI, has helped the Indian

Mutual Fund Industry to enter into a healthy and professional market, maintaining the

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market ethics and standards. It attempts to promote the interests of both Mutual Funds

and unit holders.

Growth of Mutual Funds

Has been gradual and it took really long years to evolve the modern day mutual funds.

Mutual Funds emerged for the first time in Netherlands in the 18th century. Then it got

introduced to Switzerland, then Scotland and then to United States in the 19th century.

The very idea of mutual funds came from the urge to deliver a form of Diversified

Investment Solution. Over the years the idea developed and people received more and

more choices of Diversified Investment Portfolio through the mutual funds.

When in 1924, Massachusetts Investors Trust first introduced mutual funds in U.S they

found it difficult to gain the trust of the investors. It was very natural that the people took

time to adapt to a new investment idea. There emerged some confusion regarding the

Taxation of Investment Income from mutual funds as there was no Regulation or

legislation.

Laws started to came in existence from 1940s. The result was not immediate. The Mutual

Fund Concept achieved warm reception only in the middle of 1950s. By the end of fifties

and in first half of 1960s mutual fund investment triggered up tremendously.

Monetary Funds benefited a lot from the mutual funds. Earlier investors was used to

invest directly in the stock market and many times suffered from loss due to wrong

Speculation. But, with the mutual funds which were handled by efficient Fund Managers,

Investment Risks was lowered by a great extent. The diversified investment structure of

mutual funds also diversified risk and this contributed tremendously in the Growth of

Mutual Funds.

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Over the years not only the new types of mutual funds emerged, the way, in which

mutual funds were sold also changed. But, the Growth of Mutual Funds has not stopped.

It is continuing to evolve to a better future, where investors will get newer opportunities.

Aims of Association of Mutual Funds in India

The aims of Association of Mutual Funds in India are as follows:

Association of Mutual Funds endeavors to maintain high standards in all fields of

operation within the industry.

Association of Mutual Funds maintains an interaction with Securities and

Exchange Board of India, and functions in accordance with the guidelines

established by SEBI (Securities and Exchange Board of India).

Association of Mutual Funds in India takes up all India awareness program on

behalf of the investors. This is done to facilitate proper comprehension of the

concept and functioning of Mutual Funds.

At last but not the least association of mutual fund of India also circulate

information related to Mutual Fund Industry.

Association of Mutual Funds in India: Sponsors

Some of the major sponsors of Association of Mutual Funds in India include:

SBI Fund Management Ltd.

Benchmark Asset Management Company Pvt.

UTI Asset Management Co Pvt. Ltd.

JM Financial Mutual Fund

Can bank Investment Management Services Ltd.

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2. SBI MUTUAL FUND COMPANY PROFILE

SBI MUTUAL FUND PROFILE

Mutual Fund SBI Mutual Fund

Setup Date Jun-29-1987

Incorporation Date Feb-07-1992

Sponsor State Bank of India

Trustee SBI Mutual Fund Trustee Company Private Limited

Chairman Mr. Pratip Chaudhri

CEO / MD Mr. Deepak Kumar Chatterjee

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CIO Mr. Navneet Munot

Compliance Officer Ms. Vinaya Datar

Investor Service Officer Mr. C A Santosh

Assets Managed Rs. 41551.51 crore (Dec-31-2011)

Other Details

Auditors Haribhakti & Co / M/S. Chandabhoy & Jassoobhoy

CustodiansBank of Nova Scotia / Citi Bank / HDFC Bank / Stock Holding

Corporation of India

Registrars

Computer Age Management Services Pvt. Ltd, Computronics

Financial Services (I) Ltd, Datamatics Financial Software Services

Ltd

Address 191 Maker Tower E, Cuffe Parade, Mumbai - 400005.

Telephone Nos. 022 - 22180221-27

Fax Nos. 022 – 22189663

E-mail [email protected]

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 of rich experience in

fund management consistently delivering value to its investors. SBI Funds

Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of

India's largest banking enterprises, and AMUNDI (France), one of the world's

leading fund management companies that manages over US$ 500 Billion worldwide

Today the fund house manages over Rs 28500 crores of assets and has a diverse

profile of investors actively parking their investments across 36 active schemes. In

20 years of operation, the fund has launched 38 schemes and successfully redeemed

15 of them, and in the process, has rewarded our investors with consistent returns.

Schemes of the Mutual Fund have time after time outperformed benchmark indices,

honored us with 15 awards of performance and have emerged as the preferred

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mailto:[email protected]



investment for millions of investors. The trust reposed on us by over 4.6 million

investors is a genuine tribute our expertise in fund management

SBI Funds Management Pvt. Ltd. serves its vast family of investors through a

network of over 130 points of acceptance, 28 Investor Service Centres, 46 Investor

Service Desks and 56 District Organizers.

SBI Mutual is the first bank- sponsored fund to launch an offshore fund – Resurgent

India Opportunities Fund.

Background of the company


India. SBI mutual fund, the first bank sponsored mutual fund in India, was

incorporated on 29 June, 1987 by state bank of India. Magnum regular income

scheme-1987, the fund has launched 40 schemes till date, of which 32 schemes are

available currently.

Took over the investment management business from 14th may, 1993, from SBI

capital markets limited. In December 2004, SBI enter into joint venture with

AMUNDI and transferred 37% equity shares to them, in December 2004, the board

of trustees appointed by SBI has been replaced by SBI mutual fund trustee

company private limited.

CORPORATE PROFILE

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With over 24 years of rich experience in fund management, we at SBI Funds

Management Pvt. Ltd. bring forward our expertise by consistently delivering value to our

investors. We have a strong and proud lineage that traces back to the State Bank of India

(SBI) - India's largest bank. We are a Joint Venture between SBI and AMUNDI (France),

one of the world's leading fund management companies.

With our network of over 222 points of acceptance across India, we deliver value and

nurture the trust of our vast and varied family of investors.

Excellence has no substitute. And to ensure excellence right from the first stage of

product development to the post-investment stage, we are ably guided by our philosophy

of ‘growth through innovation’ and our stable investment policies. This dedication is

what helps our customers achieve their financial objectives.

Back ground and inception of the company


India. SBI mutual fund, the first bank sponsored mutual fund in India, was

incorporated on 29 June, 1987 by state bank of India. Magnum regular income

scheme-1987, the fund has launched 40 schemes till date, of which 32 schemes are

available currently. Took over the investment management business from 14th may,

1993, from SBI capital markets limited. In December 2004, SBI enter into joint

venture with AMUNDI and transferred 37% equity shares to them, in December

2004, the board of trustees appointed by SBI has been replaced by SBI mutual fund

trustee company private limited.

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NATURE OF THE BUSINESS CARRIED

SBI mutual fund Nature of the business is Fund management, portfolio

management. SBI Funds Management Pvt. Ltd. is a joint venture between 'The

State Bank of India' one of India's largest banking enterprises, and

AMUNDI(France), one of the world's leading fund management companies that

manages over US$ 500 Billion worldwide.

Today the fund house manages over 33727.90 as on Mar-2012 of assets and has a

diverse profile of investors actively parking their investments across 36 active

schemes. In 20 years of operation, the fund has launched 38 schemes and

successfully.

VISION AND MISSION

VISION :

“To be the most preferred and the largest fund house for are asset classes with a

consistent track record of excellent return and best standards in customers services,

product innovation technology and HR practices”

MISSION :

Constantly evolving fund house which focuses On customer delight

transparency and sustained return

Attracting nurturing and retaining the best talents

Leader and not follower targeting to set the benchmark enhance

business effectiveness

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Active risk management and global best practices in all business

areas

Launching a wide range of innovative products

PRODUCTS OF SBI MUTUAL FUND:

Products

1. Equity fund

These funds concentrate mainly on long run gains therefore capital gains.

However they are also exposed to the volatility and attendant risks of stock markets

and hence should be chosen only by such investors who have high risk taking

capacities and are willing to think long term. Equity Funds include diversified

Equity Funds

Magnum Equity Fund

Magnum Global Fund

Magnum Index Fund

Magnum Midcap Fund

SBI Arbitrage Opportunities Fund

SBI Blue Chip Fund

SBI Infrastructure Fund – Series I

SBI Magnum Tax gain Scheme 1993

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SBI ONE India Fund

SBI TAX ADVANTAGE FUND – SERIES I

2. Debt fund

These funds aims of generating and distributing regular income to the members on

a periodical basis. Hence they are safer than equity funds. At the same time the

expected returns from debt funds would be lower. Such investments are advisable

for the risk-averse investor and as a part of the investment portfolio for other

investors.

Magnum Children`s Benefit Plan

Magnum Gilt Fund

o Magnum Gilt Fund (Long Term)

o Magnum Gilt Fund (Short Term)

Magnum Income Fund

Magnum Income Plus Fund

o Magnum Income Plus Fund (Saving Plan)

o Magnum Income Plus Fund (Investment Plan)

SBI Debt Fund Series

o SDFS 15 Months Fund

o SDFS 90 Days Fund




o SDFS 30 DAYS

SDFS 370 days

SDFS 60 Days Fund

SDFS 180 Days Fund

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SDFS - 370 Days - 7

3. Balance fund

This is also called as income-cum-growth fund. It is nothing but a combination of

both income and growth funds. They provide a good investment opportunity to

investors who do not wish to be completely exposed to equity markets, but is

looking for higher returns than those provided by debt funds.

Magnum Balanced Fund

Area of operation- global/national / regional

Branch office

SBI funds management private limited

C/o state bank of India , commercial branch , station road, Bellary - 583101

LL no: 08392 271775

Head office:

SBI Funds Management Pvt. Ltd. (SBIMF) having its corporate office at 191, Maker

Tower “E”, 19th Floor, Cuffe Parade, and Mumbai 400005 is a joint venture between SBI

and SGAM

Branches

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The fund has a network of 100 collection branches

SBI mutual funds operation partially for globally and fully national

Ownership pattern

Incorporation Date: 29-06-1987

Ownership: Public

Ownership Pattern: Foreign - 37%, Domestic - 63%

Sponsors: State Bank of India, Amundi

Chief Executive: Mr. Deepak Kumar Chatterjee

Chief Investment Officer: Mr. Navneet Munot

Investor Relations Officer: G Kandasubramanian

Total Assets (Cr.): 33727.90 as on Mar-2012

Address: 191, Maker Tower E 19th Floor, Cuffe Parade, Mumbai - 400005

Telephone: (022) 22180221/ 27

Fax: ((022) 22189663

Email: [email protected]

Website: www.sbimf.com

BOARD OF DIRECTORS - AMC

Mr. Pratip Chaudhuri Chairman & Associate Director

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Mr. Deepak Kumar Chatterjee Managing Director

Mrs. Madhu Dubhashi Independent Director

Mr. Jean-Paul Mazoyer Associate Director

Mr. Shyamal Acharya Associate Director

Mr. Thierry Raymond Mequillet Associate Director

Mr. Jayesh Gandhi Independent Director

Dr. H. Sadhak Independent Director

Dr. H. K. Pradhan Independent Director

Mr. Philippe Batchevitch Alternate Director to Mr. Mazoyer

Mr. Shishir Joshipura Independent Director

COMPETITORS OF SBI MUTUAL FUND

Some of the main competitors of SBI Mutual Fund in Dehradoon are as

Follows

ICICI Mutual Fund

Reliance Mutual Fund

UTI Mutual Fund

Birla Sun Life Mutual Fund

Kotak Mutual Fund

HDFC Mutual Fund

Sundaram Mutual Fund

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LIC Mutual Fund

ING Vysya Mutual Fund

HSBC Mutual Fund

Tata Mutual Fund

Sahara Mutual Fund

Principal

Franklin Templeton

For the first time in the history of Indian mutual fund industry, Unit Trust of India Mutual

Fund has slipped from the first slot. Earlier, in May 2012, the Prudential ICICI Mutual

Fund was ranked at the number one slot in terms of total assets.

In the very next month, the UTIMF had regained its top position as the largest fund house

in India. Now, according to the current pegging order and the data released by

Association of Mutua l Funds i n Ind i a (AMFI ) , t he Re l i ance Mutua l

Fund , w i th a J anua ry -end AUM of Rs 39,020 crore has become the largest

mutual fund in India On t he o the r hand , UTIMF, w i th an AUM of Rs

37 ,535 c ro re , ha s gone t o s econd position.

The Prudential ICICI MF has slipped to the third position with an AUM of Rs

34,746crore.It happened for the first time in last one year that a private sector mutual

fund house has reached to the top slot in terms of asset under management (AUM). In the

last one year to January, AUM of the Indian fund industry has risen by 64% to Rs 3.39

lakh crore. According to the data released by Association of Mutual Funds in

India (AMFI), the combined average AUM of the 35 fund houses in the country

increased to Rs 5,512.99 billion in April compared to Rs 4,932.86 billion

In March Reliance MF maintained its top position as the largest fund house in the

country with Rs74.25 billion jump in AUM to Rs 883.87 billion at April-end. The

s econd - l a rge s t f und house HDFC MF ga ined Rs 59 .24 b i l l i on i n i t s

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AUM a t Rs 638 .80 billion.ICICI Prudential and state-run UTI MF added Rs

46.16 billion and Rs 57.35 billion irrespectively to their assets last month. ICICI

Prudential`s AUM stood at Rs 560.49 billion at the end of April, while UTI MF had

assets worth Rs 544.89 billion. The o the r f und house s wh ich s aw an

i nc r ea se i n t he i r ave rage AUM in Apr i l i nc lude -Canara Robeco MF,

IDFC MF, DSP Blackrock, Deutsche MF, Kotak Mahindra MF and LICMF.

Infrastructural facilities

All Transactions going on by computerized

Good furniture facilities

Technology like management information system etc,

Good working condition

Transaction data base available in system

AWARDS AND ACHIEVEMENTS :

SBI- MUTUAL FUND has been performing excellently since its inception. The fund

has received lot of appreciation for its performance from the mutual fund industry. It

has been awarded by ICRA on line award 8 times, CNBC- TV 18 CRISIL 4

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AWARDS, the Lipper award (year 05-06) and most recently the CNBC TV 18 Crisil

Mutual Fund Award of the year 2007 and 5 award for the schemes.

Year Awards

2011 Readers Digest Awards 2011 For Trusted Brand in Fund Management Category

ICRA Mutual Fund Awards 2011 For Magnum Income Fund - Floating Rate Plan - Long Term Plan

2010 ICRA mutual fund award

2009 ICRA mutual fund award

Lipper award the Indian mutual fund awards

2008 Outlook money NDTV profit award

Outlook money NDTV profit award

ICRA mutual fund award

2007 Outlook money NDTV profit award

CNBC awaaz consumer award

Lipper award the Indian mutual fund awards


CNBC TV18 CRISIL mutual fund of the year award

2006 CNBC awaaz consumer award

Lipper award the Indian mutual fund awards CNBC TV18 CRISIL mutual fund of the year


SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8

times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-

2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award

WORK FLOW MODEL

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Investor Pools money withPassed

back to



This diagram signifies the importance of Mutual Fund. A Mutual Fund is a trust that

pools the savings of a number of investors who share a common financial goal. The

money thus collected is invested by the fund manager in different types of securities

depending upon the objective of the scheme. These could range from shares to debentures

to money market instruments. The income earned through these investments and the

capital appreciations realized by the schemes are shared by its unit holders in proportion

to the number of units owned by them. Thus a mutual fund is the most suitable

investment for the common person as it offers an opportunity to invest in a diversified,

professionally managed basket of securities at a relatively low cost. Since small investors

generally do not have adequate time, knowledge, experience & resources for directly

accessing the capital market, they have to rely on an intermediary, which undertakes

informed investment decisions & provides consequential benefits of professional

expertise.

The advantage of Mutual Funds to the investors is professional managed, low transaction

cost, liquidity, transparency, well regulated, diversified portfolios & tax benefits. By

pooling their assets through mutual funds, investors achieve economies of scale.

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Fund house

Securities based on financial goal

Returns

Fund managers invest in

Generates



A collected corpus can be used to procure a diversified portfolio indicating greater

returns has also create economies of scale through cost reduction. This principle has been

effective worldwide as more & more investors are going the mutual fund way. This

portfolio diversification ensures risk minimization. The criticality such a measure comes

in when you factor in the fluctuations that characterize stock markets. The interest of the

investors is protected by the SEBI, which acts as a watchdog. Mutual funds are governed

by SEBI (Mutual Funds) regulations, 1996.

Future growth and prospects:

The Future of Mutual Funds in India suggests that the industry has got huge scopes of

development in the times to come. The entry-ban load adversely imported inflow in

equity funds as nearly 85% of inflow in equity schemes come from distributers,

who started to feel the pinch. Because the investors booked profits as the market had

gone up.

As such , high revenue generating assets are partly being replaced by asset , which

will start generating revenues only from the second year. In this changed scenario,

the banking channel has become more important to us and we are working on

increasing the overall share of the banking channel, as this channel is less price –

sensitive.

We plan to augment our distribution network to their 3towns and extend the

market coverage in rural markets through SBI business correspondents / facilitators

with Micro SIP options.

The other steps for improving investors services includes increasing the electronic

payout of redemption / dividend for around 90% introduction of centralized

management of SIPs of all associates banks by direct debits for further increase

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our SIP research and improve efficiency , increasing e- communication and fine –

tuning of our contact centre services and reduce call waiting time. We popularized

online investment through net banking solutions.

Important aspects related to the future of mutual funds in India are -

The growth rate was 100 % in 6 previous years.

The saving rate in India is 23 %.

There is a huge scope in the future for the expansion of the mutual funds industry.

A number of foreign based assets management companies are venturing into

Indian markets.

The Securities Exchange Board of India has allowed the introduction of

commodity mutual funds.

The emphasis is being given on the effective corporate governance of Mutual

Funds.

The Mutual funds in India has the scope of penetrating into the rural and semi

urban areas.

Financial planners are introduced into the market, which would provide the

people with better financial planning.

The McKinsey 7S Framework

The 7-S model is better known as McKinsey 7-S model. This is because the two persons

who developed this model, Tom Peters and Robert Waterman, have been consultants at

McKinsey & co. at that time. They published their 7-S model in their article “Structure is

not organization” (1980) and in their books “The art of Japanese management” (1981)

and “In search of excellence” (1982).

The model starts on the premise that an organization is not just structure, but consists of

seven elements:

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STRATEGY:The direction and scope of the company over the long term.

STRUCTURE: The basic organization of the company, its departments, reporting lines,

areas of expertise and responsibility.

SYSTEMS: Formal and Informal procedures that govern everyday activity, covering

everything from management information systems, through to the systems at the point of

contact with the customer (retail systems, call centre, systems, online systems, etc).

SKILL: The capabilities and competencies that exist within the company. What it does

best.

SHARED VALUES: The values and beliefs of the company. Ultimately they guide

employees towards ‘valued’ behavior.

STAFF: the Company’s people resources and how they are developed, trained and

motivated.

STYLE: The leadership approach of top management and the company’s overall

operating approach.

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1. STRATEGY : At SBI Mutual Fund we know that every investors has unique

financial goals and requires a different set of products.

Each scheme is managed by devising a different strategy which is reflective of

the investors profile and carries with its different risk and rewards.

2. STRUCTURE: Structure tells us in the organization who reports to whom. He /

she will do what and he / she work reported whom this all information helps to take

decision making in the organization this information consider under the structure

Below diagram shows to the organization structure

SBI MUTUAL FUND ORGANISATION STRUCTURE

MD (Mr. Deepak Kumar Chatterjee)

Chief investment officer chief marketing officer chief operating officer

(Mr.Navneet Munot) (Mr. R.S. SrinivasJain)

(Mr.K.T.Ravindran)

Risk management team National sales head Chief customer services

(Ms.Aparnanirgude) (Ms. Vinaya Datar) (Mr.C.A.Santosh)

Fund management team Regional manager Chief risk executive

(Mr.Dharmendra Grover) (Mr.Vishal Saraf) (Mr. Philippe batchenitch)

Investment research team Relationship manager & channel head

(Mr.sohini Andani) (G. Kandasubramanian)

3. SKILLS:

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The company employees must to know the new technical skills like online business, &

management information system skills etc. and how to adopted that skills in the

organization and employees must to know the human & ethical skills its necessary

because its tells us how to behave with the customer in corporate word

4. STYLE:

Style includes Leadership style of top management and overall operating style of the

organization. Style impacts the norms people follow and they work and interact with each

other and with customers.

How does the top management make decisions – Participatory Vs Top Down?

How do managers spend their time in informal meetings, informal conversations,

etc...?

Style of functioning

Emergency meetings are held where top management and employees collectively

participate- targets for the week is set, responsibilities are delegated, suggestions

are invited.

Personal attention to the project trainees helps in creating a good image in the

eyes of the public.

Staff has very good informal conversations that develop a sense of loyalist,

motivation, dedication within the employee

There is a good cordial relation between the management and the employees

which shows a participatory leadership style is observed

5. STAFF

The staffing procedure mainly includes how the organization has to look into its people,

their backgrounds, and competencies. Staff also includes the organization approaches to

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recruitment, selection and specialization. How people are developed, how recruits are

trained, socialized and integrated and how their careers are managed.

The candidates are recruited from diverse fields of commerce like B. Com’s, MBA’s,

ICWA’s, CA’s and CFA’s great opportunity for fresher’s and post graduates are

available.

They are involved in all the required meetings and activities.

The Staff are given freedom to use their innovation and creative skills.

6. System:

Systems in their frame work stands for the rules and regulations, procedures and practices

that must be allowed to carry out the tasks in the organization. A good system adds to the

efficient and effective working of the entrepreneur. Management information system

helps to organization and MIS provide the report to organization, head office easy to get

the branch office daily transaction report with the help of MIS

MIS give the various branch office report

MIS give the customer transaction data base report

Providing statement of account to the investors on request

7. Shared value:

team work, transparency, courage, integrity, trustworthiness this all are the core value of

SBI mutual fund Each individual worker hands –hand to common organization goal,

crate a culture of openness internally communicating discloser policy and standards to

external word true to self and to all our stockholder, to take the right decision without any

fear or favor in the best interest of all our stake holders The employees share

responsibility and protect the company’s name and integrity. There is no sharing of

confidential/ important information with the outsiders. There is collective responsibility

and accountability on the part of its members. This can be said as the shared values of the

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employees of the organization.

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SWOT ANALYSIS of SBI MUTUAL FUNDS

SWOT ANALYSIS

A type of fundamental analysis of the health of a company by examining its strengths(S),

weakness (W), business opportunity (O), and any threat (T) or dangers it might be

exposed to.

I. STRENGTHS

SBI mutual fund is a sponsored by state bank of India which is the more than the 200

years old, largest lender in the country and having a massive network of over 13000

branches in India

1. Wide reach: SBI mutual fund strong distribution network throw association banks

over 13000 branches of state bank of India over 2000 branches of association banks

and distribution of SBI mutual fund products giving a big space and visibility for the

products of SBI mutual funds

2. Services : as services place a dominant role in a financial products SBI mutual funds

is providing standard services throw which branches located in over 445 cities

3. Brand image: as opposed to some of its competitors (e.g. HSBC), operates a multi-

brand strategy. The company operates under numerous well-known brand names,

which allows the company to appeal to many different segments of the market.

4. Distribution channel strategy: SBI is continuously improving the distribution of its

products. Its online and Internet-based access offers a combination of excellent

growth prospects and its retail direct business also saw growth of 27% in 2002 and

15% in 2003.

5. Large pool of installed capacities.

6. Experienced managers for large number of Generics.

7. Large pool of skilled and knowledgeable manpower.

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II. WEAKNESS

1. Technologically little less advanced : SBI mutual fund technology less

advanced comparing to other mutual fund for eg: HDFC, RELIANCE, this

both companies use the advanced technologies in the business

2. Less publicity: SBI mutual fund its basically public sector company and SBI

mutual fund use the less amount for advertisement its not using any brand

ambassadors so its not giving high publicity

3. Since it is a asset management company it can’t quick ever change the market

there minimize the competitors strength of the public

4. Less aggressive

5. Comparatively less reach to the investors

III. OPPORTUNITIES

1. State Bank of India’s great brand image helps SBI mutual fund to increase

penetration in to market , there are possibility for SBI mutual fund to get listed

in top 3 AMC of the country, as it is having all potential to reach top position

2. Increasing in liberalization of government policies. In mutual fund industry

IV. THREATS

1. Regulatory frame work : due to every changing regulatory frame work in India

mutual fund industry is facing the great threat for its inflow and sustainable

growth in the scenario of no entry load it has became very difficult to manage

assets management business

2. Increased Competition : With intense competition by so many local players

causing headache to the current marketers. In addition to this though multinational

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brands are not yet established but still they will soon hit the market. Almost 60 to

70% of the revenue is spending on the management and services.

3. Lack of sufficient branch-offices for speedy delivery of services.

4. Hedge funds : sometimes referred to as ‘hot money’, are also causing a threat for

mutual funds have gained worldwide notoriety for bringing the markets down. Be

it a crash in the currency, stock or bond market, usually a hedge fund prominently

figures somewhere in the picture.

5. Inflation: war, natural disaster like Tsunami it effect the crash in Indian capital

market the crash directly impact on mutual funds

ANALYSIS OF FINANCIAL STATEMENT

Balance sheet As At March 31 2011

Particulars Schedules

Rs As at 31.3.2011 Rs

Rs As at 31.3.2010 Rs

Source of fundsShareholders’ fundsCapital 1 500,000,00

0 500,000,000

Reserves and surplus

2 2,275,791,688

1,824,554,402

Total 2,775,791,688

2,324,554,402

Application of funds Fixed assets 3

Gross block 177,056,599

151,994,567

Less: depreciation 124,447,461

103,764,634

Net block 52,609,138 48,229,933

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Capital work in progress

6,786,254 5,517,305

Investments 4 1,772,969,400

371,464,385

Deferred tax asset(net)

17,670,855 4,822,541

Current assets, loan and advance

Sundry debtors 5 111,594,460

167,913,529

Cash and bank balance

6 1,100,014,984

2,046,273,249

Other current assets 7 39,081,263 47,651,436

Loans & advance 8 318,013,328

180,964,971

1,568,704,035

2,442,803,185

Less :current liabilities and provisions Current liabilities 9 283,739,46

3215,407,017

Provisions 10 359,208,531

332,875,930

642,947,994

548,282,947

Net current assets 925,756,041

1,894,520,238

Total 2,775,791,688

2,324,554,402

PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011Schedules

Rs For the year ended 31.3.2011 Rs

Rs For the year ended 31.3.2010 Rs

Income Management fees (gross)[tax

2,206,646,200 1,815,674,733

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deducted at source Rs.243,393,103 (previous year Rs.213,099,174)]Portfolio advisory fee [tax deducted at source Rs.18,059 (previous yearRs.36,298)] Portfolio Management Fee [ Tax deducted at source Rs.632,588(Previous year Rs.1,271,077]

160,936,141

30,022,891

130,489,018

21,964,880

Income from investments

11 21,678,304 17,948,403

Other income 12 133,138,577 171,328,9162,552,422,113 2,157,405,950

EXPENDITURE:

Employee Costs 13 678,305,452 464,355,867Administrative and Other Expenses

14 680,632,431 532,397,781

Depreciation on Fixed Assets

24,436,883 22,196,076

1,383,374,766 1,018,949,724Profit before tax 1,169,047,347 1,138,456,226Provision for taxes:Current Tax (393,420,000) (386,700,000)Deferred Tax ( refer note 5)

12,848,314 2,639,864

Fringe Benefit Tax - 2,193,433Excess Provision for Tax in respect ofprevious years written backExcess Provision for FBT in respect of

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previous years written back

2,147,720

(380,571,686) (379,718,983)

Profit after tax 788,475,661 758,737,243Balance brought forward fromprevious year

1,429,363,841 1,031,414,598

Profit available for appropriation

2,217,839,502 1,790,151,841

APPROPRIATIONSTransfer to General Reserve

78,847,566 80,000,000

Interim Dividend

Proposed Equity Dividend

290,000,000

-

-

240,000,000

Tax on Proposed Equity Dividend

48,165,375 -

Excess provision for Dividend Distribution Tax of PY written Back Surplus carried to Balance Sheet

-

(927,000)

1,801,753,561

40,788,000

-

1,429,363,841

2,217,839,502 1,790,151,841Basic and diluted earnings per share (Face Value per Share Rs. 100/-)

157.70 151.75

Interpretation:

Particular

31.3.2011 31.3.2010

Net present value (NPV ) 38.223 35.168

Return on net worth (RONW) 41.088 32.640

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Return on capital employee (ROCE) 51.326 47.979

Current ratio (CR) 3.382 1.289

Fixed assets (FA) 2.437 2.235

Earnings per share (EPS) 157.70 151.75

Dividend per share ( DPS) 40 48

An interim Dividend of Rs. 58 per Equity Share, subject to tax, was declared on 28th

March, 2011 on the paid-up equity Share capital of the Company, involving a total outgo

of Rs. 3,381.65 lacs on account of dividend inclusive of dividend Distribution tax. The

Directors recommend that the Interim Dividend paid during the year, be declared as the

Final Dividend for the year 201011.

During the year under review, the Company has not made any fresh issue of capital.

However, consequent upon AMUNDI and Credit Agricole S.A. entering into an

agreement to undertake a global merger of their fundamental asset management

businesses, 18, 50,000 equity shares constituting 37% of the paid-up equity share capital

held bySociété Générale Asset Management have been transferred to AMUNDI India

Holding, a wholly owned subsidiary of AMUNDI on 30th May, 2011 after obtaining

relevant regulatory approvals

LEARNING EXPERIENCE:

During this project work, I got the opportunity to study and know exactly the various

aspects of the organization in practical sense. I was able to gain the knowledge of various

strategies adopted by the organization and also to understand the duties responsibilities of

various departments and its functioning. In fact I was exposed to the system followed by

the organization the style of management.

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It was a great experience obtained during my project work in SBI MUTUAL FUND. All

the staffs of the company were very co-operative and they provided all the detailed

information about SBI MUTUAL FUNDS, they provide the necessary information for

the project. The internal atmosphere inside the company was cool and friendly. Inside the

office every one busy with they work, most of times managers sir busy with clients and

every Saturday sir not available in the office

I got some information about the mutual funds and how the customers behave with

employees and how to fill the customers needs how to solve the customers problem this

all information I try to know in the office.

This project work a greater extent has helped me to understand the aspects such as

different product services offered by SBI MUTUAL FUND, area of operation, work flow

model, overall organization functioning etc. apart from these things I was also able to

understand the organization in depth with the application of McKenzie’s 7s frame work

with special reference to organization under study namely structure, skill, style, strategy,

system, staff, shared values, and lastly the aspects of SWOT analysis of the organization.

GENERAL INTRODUCTION

RESEARCH METHODOLOGY:

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A. TITLE OF THE PROJECT:

“A study on investor choice of investment between mutual fund (equity

schemes) and equity shares”

STATEMENT OF THE PROBLEM:

Investment decisions mainly depend upon the investor’s perception towards performance

of mutual funds and the overall performance of Mutual Fund industry in India. The study

choice which compared of the mutual fund with an investors. The project is entitled

as “A study on investor choice of investment between mutual fund (equity schemes) and

equity shares.”

OBJECTIVES OF THE STUDY:

To study the investor choice of investment between equity schemes and equity

shares.

To compare equity & mutual fund schemes in respect of their risk & return.

Analyzing the performance of equity shares & mutual fund schemes with

their benchmark

To examine how customers in specific segment rate the investment in

mutual fund as an investment option .

To study a wide spectrum of investment option.

SCOPE OF THE STUDY

The project is entitled as “A study on investors choice of investment between

mutual fund(equity schemes) and equity shares ” this study is based on primary data

to know the investors choice of investment on equity schemes and equity shares towards

SBI mutual funds and survey has been conducted for 100 respondents limited to Bellary

region. Preferences and satisfactory level of investors as been analyzed.

RESEARCH METHODOLOGY

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Type of research used Descriptive research/Diagnostic Research under

that cross sectional research

Research approach Literature Survey

Research instrument Questionnaire

Source Website of: mutualfundindia.com, www. money

control.com www.SBImf.com

Sample Size 100

Sampling Technique Non-probability Sampling/ purposive or

judgement sampling under that convenience

sampling

Statistical Tools: Ratio analysis, Arithmetic Mean, Percentage,

Graphical charts

1. Descriptive Research: Descriptive research includes surveys and fact- finding

enquiries of different kinds. The major purpose of descriptive research is description of

the state of affairs as it exists at present. From the point of view the research design,

the descriptive as well as diagnostic studies share common requirement. To applying

the characteristics of investors choice of investment for comparing with the equity

schemes with equity shares.

2. Literature survey: It most of the cases exploration phase begin with Literature search-

Review of books

3. Source: This from websites like Mutualfundindia.com, www. Money control.com

Collection of data:

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http://www.SBImf.com/



Collection of data is the first step in the research report. The data may be primary or

secondary data. And primary data has-been collected by interacting with various people.

And data which is collected through structured questionnaire method. As much as

possible ambiguous questions are excluded from the data collected for this project is

primary questionnaire.

Primary data:

All primary data has been collect from the personally, the required information are also

collected from the end user of the product by survey to know the awareness mutual fund

Secondary data:

All secondary data has been collected from the Company Website, Internet, The

required information are also collected form respective which have passed through the

statistical process. To sort the data would be using collecting the studying

according to be method of data collection.

Limitations of the study:

Primary data is limited to only respondents in Bellary

Possibility of error in data collection because many of investors may have not

given actual answers to questions

This study is limited to sample size of 100.

Project duration time is limited to 10 weeks

GENERAL INTRODUCTION:

THEORETICAL BACKGROUND

THEORETICAL ASPECTS

The SEBI (Mutual Funds) Regulations 1993 define a mutual fund (MF) as a fund

established in the form of a trust by a sponsor to raise monies by the Trustees through the

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http://www.sebi.gov.in/HomePage.jsp



sale of units to the public under one or more schemes for investing in securities in

accordance with these regulations.

These regulations have since been replaced by the SEBI (Mutual Funds) Regulations,

1996. The structure indicated by the new regulations is indicated as under.

A mutual fund comprises four separate entities, namely sponsor, mutual fund trust, AMC

and custodian. The sponsor establishes the mutual fund and gets it registered with SEBI.

The mutual fund needs to be constituted in the form of a trust and the instrument of the

trust should be in the form of a deed registered under the provisions of the Indian

Registration Act, 1908.

The sponsor is required to contribute at least 40% of the minimum net worth (Rs. 10

crore) of the asset management company. The board of trustees manages the MF and the

sponsor executes the trust deeds in favor of the trustees. It is the job of the MF trustees to

see that schemes floated and managed by the AMC appointed by the trustees are in

accordance with the trust deed and SEBI guidelines.

What is a Mutual Fund?

A mutual fund is a trust that pools the money of many investors its shareholders to invest

in a variety of different securities. Investments may be in stocks, bonds, money market

securities or some combination of these. Those securities are professionally managed on

behalf of the shareholders, and each investor holds a pro rata share of the portfolio

entitled to any profits when the securities are sold, but subject to any losses in value as

well.

A mutual fund is a group of investors operating through a fund manager to purchase a

diverse portfolio of stocks or bonds. There are myriad kinds of mutual funds, each with

its own goals and methodologies. Whether or not a mutual fund is a good investment is a

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matter of much public debate, with many claiming they are excellent for the average

person, and others saying they are simply a poor way to invest.

For the individual investor, mutual funds provide the benefit of having someone else

manage your investments, take care of record keeping for your account, and diversify

your rupees over many different securities that may not be available or affordable to you

otherwise. Today, minimum investment requirements on many funds are low enough that

even the smallest investor can get started in mutual funds.

A mutual fund, by its very nature, is diversified its assets are invested in many different

securities. Beyond that, there are many different types of mutual funds with different

objectives and levels of growth potential, furthering your chances to diversify.

Many critics of mutual funds point out that scarcely over 20% of mutual funds

outperform the Standard and Pool’s 500 Index. This means that nearly 80% of the time,

an investor would have been more profitable by simply buying equal shares in all 500 of

the companies currently on the S&P 500.

Structure of mutual fund industry

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The above diagram gives an idea on the structure of an Indian mutual fund.

Sponsor: Sponsor is basically a promoter of the fund. For example Bank of Baroda,

Punjab National Bank, State Bank of India and Life Insurance Corporation of India (LIC)

are the sponsors of UTI Mutual Funds. Housing Development Finance Corporation

Limited (HDFC) and Standard Life Investments Limited are the sponsors of HDFC

mutual funds. The fund sponsor raises money from public, who become fund

shareholders. The pooled money is invested in the securities. Sponsor appoints trustees.

Trustees: Two third of the trustees are independent professionals who own the fund and

supervises the activities of the AMC. It has the authority to sack AMC employees for

non-adherence to the rules of the regulator. It safeguards the interests of the investors.

They are legally appointed i.e. approved by SEBI.

AMC: Asset Management Company (AMC) is a set of financial professionals who

manage the fund. It takes decisions on when and where to invest the money. It doesn’t

own the money. AMC is only a fee-for-service provider.

The above 3 tier structure of Indian mutual funds is very strong and virtually no chance

for fraud.

Custodian: A Custodian keeps safe custody of the investments (related documents of

securities invested). A custodian should be a registered entity with SEBI. If the promoter

holds 50% voting rights in the custodian company it can’t be appointed as custodian for

the fund. This is to avoid influence of the promoter on the custodian. It may also provide

fund accounting services and transfer agent services. JP Morgan Chase is one of the

leading custodians.

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Transfer Agents: Transfer Agent Company interfaces with the customers, issue a fund’s

units, help investors while redeeming units. Provides balance statements and fund

performance fact sheets to the investors. CAMS are a leading Transfer Agent in India.

ADVANTAGES OF MUTUAL FUND INVESTMENT

Professional Management

Mutual Funds provide the services of experienced and skilled professionals,

backed by a dedicated investment research team that analyses the performance

and prospects of companies and selects suitable investments to achieve the

objectives of the scheme.

Diversification

Mutual Funds invest in a number of companies across a broad cross-section of

industries and sectors. This diversification reduces the risk because seldom do all

stocks decline at the same time and in the same proportion. You achieve this

diversification through a Mutual Fund with far less money than you can do on

your own.

Convenient Administration

Investing in a Mutual Fund reduces paperwork and helps you avoid many

problems such as bad deliveries, delayed payments and follow up with

brokers and companies. Mutual Funds save your time and make investing easy

and convenient.

Return Potential

Over a medium to long-term, Mutual Funds have the potential to provide a higher

return as they invest in a diversified basket of selected securities.

Low Costs

Mutual Funds are a relatively less expensive way to invest compared to directly

investing in the capital markets because the benefits of scale in brokerage,

custodial and other fees translate into lower costs for investors.

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Liquidity

In open-end schemes, the investor gets the money back promptly at net asset

value related prices from the Mutual Fund. In closed-end schemes, the units can

be sold on a stock exchange at the prevailing market price or the investor can

avail of the facility of direct repurchase at NAV related prices by the Mutual

Fund.

Transparency

You get regular information on the value of your investment in addition to

disclosure on the specific investments made by your scheme, the proportion

invested in each class of assets and the fund manager’s investment strategy and

outlook.

Flexibility

Through features such as regular investment plans, regular withdrawal plans and

dividend reinvestment plans, you can systematically invest or withdraw funds

according to your needs and convenience.

Affordability

Investors individually may lack sufficient funds to invest in high-grade stocks. A

mutual fund because of its large corpus allows even a small investor to take the

benefit of its investment strategy.

Well Regulated

All Mutual Funds are registered with SEBI and they function within the

provisions of strict regulations designed to protect the interests of investors. The

operations of Mutual Funds are regularly monitored by SEBI.

DISADVANTAGES OF MUTUAL FUNDS INCLUDE

Inability to make one’s own decisions

No guarantee that the professional managers will provide anticipated results

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Investment company managers can switch styles of investing, even while

adhering to the objectives and policy agreed upon by the mutual fund. This makes

it difficult for the investor to keep track of the investments owned by the fund and

the activity of fund managers.

Past performance, a highly reported indicator is just that, one of many indicators;

it is no guarantee for future performance. Careful scrutiny is warranted when

reading a fund’s advertisement

TYPES OF MUTUL FUNDS:

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial

position, risk tolerance and return expectations etc. thus mutual funds has Variety of

flavors, Being a collection of many stocks, an investors can go for picking a mutual fund

might be easy. There are over hundreds of mutual funds scheme to choose from. It is

easier to think of mutual funds in categories, mentioned below:

1. BASED ON THEIR STRUCTURE

OPEN ENDED FUNDS

CLOSE-ENDED FUNDS

Interval Schemes.

2. BASED ON NATURE

Equity Fund

Diversified Equity Funds

Mid-Cap Funds

Sector Specific Funds

Tax Savings Funds (ELSS)

Debt Fund

Gilt Funds:

Income Funds:

MIPs:

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Short Term Plans (STPs):

Liquid Funds:

Balanced Fund

3. BASED ON INVESTMENT OBJECTIVE

Growth Schemes

Income Schemes

Balanced Schemes:

Money Market Schemes

Tax Saving Schemes

Index Schemes

Sector Specific Schemes

Equity Shares

It defines a share as “ a share in the share capital”. A company , other than that

one limited by guarantee , has got the statutory right to raise the capital through the

issue of shares. As mentioned earlier, there are two kinds of shares

What is equity?

Equity is the term commonly used to describe the ordinary share capital of a business.

Ordinary Shares or equity shares

Ordinary shares are also sometimes referred to as common stock. With this type of stock,

you are entitled to a partial ownership in the company. This type of stock does not have

any predetermined number of dividends allocated to it. The only time that the owner of

ordinary shares will receive a dividend is after the preferred shareholders have already

been paid.

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However, it is important to understand that the market value of a company's shares has

little (if any) relationship to their nominal or face value. The market value of a company's

shares is determined by the price another investor is prepared to pay for them. In the case

of publicly-quoted companies, this is reflected in the market value of the ordinary shares

traded on the stock exchange (the "share price").

In the case of privately-owned companies, where there is unlikely to be much trading in

shares, market value is often determined when the business is sold or when a minority

shareholding is valued for taxation purposes.

In your studies, you may also come across "Deferred ordinary shares". These are a form

of ordinary shares, which are entitled to a dividend only after a certain date or only if

profits rise above a certain amount. Voting rights might also differ from those attached to

other ordinary shares.

Features of the equity shares

Permanent capital base :- the equity shares represent a company’s permanent

capital base, that is , the capital that is returned to the shareholders only

after the company’s life time comes to an end or it goes in to liquidation .

No fixed dividend :- the amount of dividend on equity shares is not fixed in

so far as it is the residual amount left after the retention of earnings and

payment of dividend to the preference share holders.

Voting rights :- since the equity share holders are the owners of the

company, they have the right to vote at the company’s meetings and for

important decisions and thereby to exercise control over the management of

the enterprise.

Basis of raising borrowed capital :- with a given leverage ratio, more

borrowed capital can be raised with a rise in the equity share capital. This

means that these shares form the basis for raising debt.

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Public issues :- equity shares are sold to public through a prospective

published in the newspaper. The new company issues shares at par. However,

a company with a good record can issue shares at a premium.

Compare between equtity shares and mutual fund

Shares:

When companies look for money for their business, they can get it in two ways -

either they borrow from a bank and pay interest ("debt") or they ask people like you

and me to invest and give us shares ("equity"). A share is a part of a business.

Then let's say a friend named Sarath wants to buy a share of this business but the

company has got all the money it needs. So Sarath asks us to sell our shares to him, at

a higher value than we bought it. So he will own our share of the company, but he's

willing to pay more because he thinks the company will do well. Now we make a

profit and then Sarath perhaps sells it to someone else at even higher values etc. The

company doesn't really get affected because it isn't seeing the money, but the share

price goes up as the company starts doing better, and as more people begin to want

the shares.

Why does the share price go up? The answer is: Perceived value. I may think the

company is worth 1 crore, but someone else might think it's worth 2 crores. When my

shares reach my valuation I sell, but someone else will think it's a good deal and buy.

To organize such buying and selling, there are commercial "stock exchanges". BSE

and NSE are some of them, though there are a number of other, smaller exchanges in

India. An exchange provides a common place for people to buy or sell shares, with

sales happening on an auction basis - buyers bid for shares at a price they are willing

to pay, and sellers "ask" for a price from buyers. Exchanges match these prices and

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share exchanges happen along with payments. "Brokers" facilitate these exchanges,

and you pay them a fee as brokerage, part of which goes to the stock exchange as

well.

Mutual funds: When a lot of shares are available on stock exchanges, you and me

don't know which companies to invest in. But let us say a guy named Sandip

Subherwal knows, and keeps track of the market daily. So we give him our money

and he buys and sells stocks for us. This is a mutual fund - it's our money (mutual),

and Sandip is a Fund Manager. There is a structure to this in India, so a fund manager

is part of an "asset management company (AMC)". To protect Sandip from running

away with our money, SEBI has some rules in place, and there are "trustees" for

every fund. With this structure the AMC issues "units" to us for the money we have

invested, and tells us how much our units are worth daily (NAV). We can then choose

to exit by selling our units back to the AMC ("redemption").

Mutual funds are not just restricted to shares. They are mutual investments, therefore

they can be anywhere. The common ones are equity (stocks and shares) and Debt.

Debt markets are where companies borrow money, but they want to borrow huge

sums of money that you and I don't have. Therefore, we pool in our money (mutual

fund) and give the big whole lot to the company at an interest. Even the government

borrows, but again, only large sums of money. Mutual funds can invest there too.

Debt is traditionally "safer" than equity since there is a fixed valuation and good

rating mechanisms to curb risk; and in the same vein, the profits (and losses) are

usually much lesser than equity.

Mutual funds can also invest in other investment avenues, like Gold, Real Estate, and

Commodities and even in Windmills! Of course, in India only a few of these are

available.

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DATA ANALYSIS AND INTERPRETATION

Comparative Analysis of return for selected Mutual funds with Nifty Index:

Equity Diversified Asset (Rs. cr.)

NNAV

11 wk

1 mth

33 mth

6 6mth

11yr

22yr 3yr

y

55yr

SBI Magnum Emerging Busi (G) 506.89

447.01

00.7

33.4

99.1

66.2

13.9

26.6

164.8

59.6

Mirae India-China Consumption (G) 16.00

11.42

00.9

33.8

88.7

88.8

11.9

--

--

--

Birla SL Intl. Equity - A (G) 68.70

11.24

22.0

33.8

114.5

16.7

99.7

332.2

552.1

--

HDFC Midcap Opportunities (G) 1,860.2

8

16.45

00.2

--

88.5

66.9

55.7

220.8

1135.8

664.5

Franklin Asian Equity Fund (G) 186.92

12.11

22.0

22.9

88.2

111.7

55.5

221.9

446.6

--

Analysis of index

IIndex

AAssets

NNav 1w

k

11mth

33mth

66mth

11yr

22yr

33yr

55yr

SS&p cnx nifty

--

--

--

--1.66

114.52

77.13

--8.50

117.90 75.8

0

554.80

Interpretation:

According to compare the various schemes and index. The 1month of Mirae India-China

Consumption (G) & Birla SL Intl. Equity - A (G) having both same value of highest

of 3.8 compare to index of -1.66 and SBI Magnum Emerging Busi (G) having value of

1month 3.4 compare to index -1.66, lastly the Franklin Asian Equity Fund (G) of 2.9

for compare to index of -1.66 for 3moth of 14.50 and index value is 14.52 and for

BITM-MBA,BELLARY

http://nseindia.moneycontrol.com/mutualfundindia/snapshot.php?im_id=MTE182

http://nseindia.moneycontrol.com/mutualfundindia/snapshot.php?im_id=MSB059

http://nseindia.moneycontrol.com/mutualfundindia/snapshot.php?im_id=MBS203

http://nseindia.moneycontrol.com/mutualfundindia/snapshot.php?im_id=MMA090




http://nseindia.moneycontrol.com/mutualfundindia/snapshot.php?im_id=MHD068










Franklin Asian Equity Fund (G) having value of 11.52 and index is 14.52 and for

SBI Magnum Emerging Busi (G) is having of 9.1 is compare to index s and p cnx

nifty 50 is 14.52, for 8.7 is Mirae India-China Consumption (G) compare to index to

the value is highest. HDFC Midcap Opportunities (G) for having 8.5 compare to lowest

of index is highest of 3 month. Franklin Asian Equity Fund (G) for 8.2 values is to be

compare to the index is high and 6month of Franklin Asian Equity Fund (G is 11.7

compare to index of 7.13 is lowest to compare schemes fund next will be the

Mirae India-China Consumption (G) of 8.80 will lowest of index next the HDFC

Midcap Opportunities (G) having 6.9 compare to index highest to 7.13 next Birla SL

Intl. Equity - A (G) 6.90 is compare to index is high of 7.13, SBI Magnum Emerging

Busi (G) is lowest to compare to index of s&p cnx 50 of 7.13, for years when

compare to schemes the highest of Birla SL Intl. Equity - A (G) of 9.7 to be index is

-8.50 having low and for 2year for schemes to Birla SL Intl. Equity - A (G) of 32.20

to compare to index is having 17.90 and for 3year for schemes of HDFC Midcap

Opportunities (G) having 135.80 is highest to compare to index of 75.80 and for

5year the schemes of fund is HDFC Midcap Opportunities (G) 64.50 is compare to

the index of 54.80.

QUESTIONNAIRE

1. Table showing the Age group of respondents in SBI mutual funds

Age Group No of Respondents

Total Male Female

25-35 80 5 85

36-45 14 14

46-55 1 1

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Male Female Total No of Respondents

0102030405060708090

25-3536-4546-55

Interpretation

According to survey age group between 25-35 age respondents are 80% of Male

and Female 5%, next is 36-45 age groups of respondents are 14% male and lastly

1% of Male 46-55 in mutual fund. So the Male is more than Female in invest in

Mutual Fund .

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a. Table showing the Education Groups of respondents in SBI mutual funds

Options No of

respondents Total Male Fem

ale a

a Graduation/pg 50 4 54b

b Under graduate 11

1

12

cc Others 34 34

Graduation/pg Under graduate Others 0

10

20

30

40

50

60

Interpretation

According to survey the respondents are male 50% and female are 4% are

graduation and 11% of male and 15% are undergraduate and lastly 34% are male

others education.

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b. Table showing the occupation Groups of respondents in SBI mutual funds

Options No of respondents Total Male Female

Aa Government servant 9 1 10

Bb Private servant 32 3 35

Cc Business Man 24 1 25

dd Agriculture 20 20

ee Others 10 10

Govern

ment s

ervan

t

Private

serva

nt

Business

Man

Agricu

lture

Others

010203040

Interpretation

According to survey the respondents of male of govt ser are 9% and female are1%

in invested in sbi mutual fund, next private ser male 32% and 3% are female and

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agriculture 20% are male and lastly others are 10% are in investing sbi mutual

fund .

1. Are you aware about mutual fund and their operations?

Options No of respondents

Total

male femalea

a yes 70 3 73b

b No 25 2 27

yes No 0

10

20

30

40

50

60

70

80

Interpretation:

According to the survey the conducted maximum number of responds i.e. 70%

respondents Male and 3% of respondent female aware of mutual fund. And 27% both

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Male and Female Are not aware about the mutual .So More respondents are aware the

mutual fund operations.

2. Are you aware about share market and their operations?


Total

male femalea

a yes 70 3 73b

b No 25 2 27

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Options yes No 0

10

20

30

40

50

60

70

80

Interpretation:

According to the survey the conducted maximum number of respondents are 70% male

are aware about the share market and 3% of female aware of share market. Lastly 25%

of male not aware the share market So more number of male and compare to

female .

3. List the investment instruments you are currently owned/in the past.

Options No of respondentsa

a pension funds 18b

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b Gold 37c

c equity stock 13d

d Bonds 32

pension funds Gold equity stock Bonds0

5

10

15

20

25

30

35

40

Interpretation:


respondents are investment instruments of pension funds, 37% respondents are

investment instruments from gold, 13% respondents are investment instruments from

equity stock and 32% respondents are investment instruments of bonds.

4. Are you aware of below mentioned scheme of investment in mutual fund?

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Options No of respondentstotal

Male female

aa Equity schemes 36 3

39

bb Debt/income schemes 7 1 8

cc

liquid schemes 3

3

dd Hybrid schemes 3

3

ee fixed maturity plan 25 1

26

ff exchange traded fund 21 21

Options

Equity

schem

es

Debt/i

ncome s

chem

es

liquid sc

hemes

Hybrid

schem

es

fixed m

aturit

y plan

exch

ange

trad

ed fu

nd0

10203040

Interpretation:

According to the survey the conducted maximum number of responds i.e. 36% male and 3% female are aware about the equity schemes, 7% male are aware about the debt/ income schemes and 1% female are aware about the debt/income schemes, 3% respondents are aware about the hybrid schemes , 25% male are aware about the fixed maturity plan 1% female are aware about the fixed maturity plan ,lastly 21% male are aware about the exchange traded fund.

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5. what kind of investment in mutual fund you have made so far ?please tick

Options

No of respondentsTotal Male Female

aa All applicable 33 5 38

bb Debt/income schemes 11 11

cc liquid schemes 7

7

dd Hybrid schemes 8 8

ee fixed maturity plan 14 14

ff exchange traded fund 19 19

Options

All applica

ble

Debt/i

ncome s

chem

es

liquid sc

hemes

Hybrid

schem

es

fixed m

aturit

y plan

exch

ange

trad

ed fu

nd0

10203040

Interpretation:


respondents are male investment in mutual fund and 5% female through all applicable,

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11% respondents are male investment in mutual fund through debt/income, 7% male

respondents are investment in mutual fund through liquid schemes, 8%male

respondents are investment in mutual fund through hybrid schemes, 14% male

respondents are investment in mutual fund through fixed maturity plan, and 19% male

respondents are investment in mutual fund through exchange traded fund.

6. If you have invested in equity schemes , why did you prefer to invest ?

Options No of respondents a

a Liquidity 12b

b Low risk 26c

c high return 41d

d hedge against inflation 21

liquidity Low risk high return hedge against inflation 05

1015202530354045

Interpretation:

According to the survey 12% of respondent invested in equity schemes prefer to invest

their in liquidity , 26% of respondent invested in equity schemes prefer to invest in

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low risk , 41% respondents prefer from high return, & 21% respondents prefer from

hedge against inflation.

7. If you have invested in debt schemes , why did you prefer to invest?


a liquidity 12b

b Low risk 25c

c high return 42d

d hedge against inflation 21

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liquidity Low risk high return hedge against inflation 0

5

10

15

20

25

30

35

40

45

Interpretation:

According to the survey 12% of respondent invested in debt schemes prefer to invest

their in liquidity , 25% of respondent invested in debt schemes prefer to invest in

low risk , 42% respondents prefer from high return, & 21% respondents prefer from

hedge against inflation.

8. what is your current attitude towards the following financial instruments, in the

Indian capital market ? Please tick


aa Highly favorable 37

bb Favorable 18

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cc Somewhat favorable 35

dd Not very favorable 9

ee Not at all favorable 1

05

10152025303540

Interpretation:

According to the survey the maximum Respondents are favorable current attitude

towards financial instruments, in the Indian capital market i.e. in 37% are highly

favorable, favorable are 18% , somewhat favorable are 35%, not very favorable are 9%

& not at all favorable are 1% so the respondents are favorable with an current

attitude towards the financial.

9. You prefer investment in mutual fund due to (rank from 1 to 8 down)


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aa Safety 10

bb Liquidity 23

cc Flexibility 19

dd Good return 19

ee tax benefit 16

ff diversification benefit 13

Safety Liquidity Flexibility Good return tax benefit diversification benefit

0

5

10

15

20

25

Interpretation:

According to survey the maximum respondents i.e. prefer for investment in

mutual fund are 10%, liquidity are 23%,flexibility are 19%,good return are 19%, tax

benefit are 16% & diversification are 13%. So the respondents are mainly on liquidity

to have the benefited.

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10. There are many qualities that could affect your selection of investment

Schemes please indicate importance of following in your decision.

Highly Important

Important

Some whatImportant

Not veryImportant

Not at allimportant

fund Performance record

75 17

4

1

Reputation or brand name

47 45 5 2

Portfolio of investment

62 33 5 1

Withdrawal facilities

27 46 21 5

Tax benefit 68 26 6 2Entry & Exit load

51 36 7 2 1Minimum Initial Investment 59 29 10

fund Perform

ance

record

Portfolio

of in

vestm

ent

Tax b

enefi

t

Options 0

1020304050607080

Highly ImportantImportantImportantSome what ImportantSome what ImportantNot very ImportantNot very ImportantNot at all important

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Interpretation:

According survey the no of respondents are 75% are highly important for selection

of investment for performance,17% are important to investment, 4% are somewhat

important investment , and 1% are investment. Second reputation for brand name

for 47% for highly important ,45% are important , 5% are somewhat important ,

lastly 2% are not very important ,third will be the portfolio of investment 62% in

highly important 33% were important 5% are somewhat important 1% were not

more important, fourth withdrawn the facilities 27% were important 46% important

21% were some important ,5% were not very important ,fifth tax benefit 68%

important 26% were important 6% were some what important 2% were not very

important, sixth entry and exit load of 51% were highly important 36% important 7%

somewhat important 2% were not very important 1% were not at all important and

lastly minimum initial investment 59% were highly important 29% important 10%

somewhat important.

11. Do you interest to investment in mutual fund / equity. Schemes please tick

Options No of respondents Total Male Female

Aa Yes 95 3 98

B

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b No 2 2

Options Yes No 0

20

40

60

80

100

120

Interpretation:

According to survey the maximum number of respondents i.e. interest to

investment in mutual / equity schemes in 95% are male interest to investment in

mutual fund and 3%female in mutual /equity schemes & 2% male respondents are

not interested to investment in mutual fund and equity schemes.

12. How often do you monitor your portfolio of customer?

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a Daily -b

b Weekly -c

c Twice in a month 25d

d Monthly 33e

e More than a month 42

Twice in a month Monthly More than a month 0

5

10

15

20

25

30

35

40

45

Interpretation:

According to survey the maximum respondent’s i.e. In daily & weekly bases respondent

s are not monitoring the portfolio to customers so in twice in a month are 25% ,

monthly are 33% , & more than a month are 42% for monitor the portfolio of

customers .

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13. While investing you are more concerned about


a Safety of principal 25b

b Earning interest above the inflation rate 39c

c Earning high return 36

Safety of principal Earning interest above the inflation rate

Earning high return 0

5

10

15

20

25

30

35

40

45

Interpretation:

According to survey the maximum respondent’s i.e. investing to concern about the

safety of principal are 25% , earning interest above the inflation are 39% & mainly

concern about the return are 36% in concern for investing in mutual fund.

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14. Approach in making investment


a You take educated view on the investment 29b

b You take friendly advice and make decision 27c

c You rely totally on your investment advisors 44

You take educated view on the investment

You take friendly advice and make decision

You rely totally on your investment advisors

0

5

10

15

20

25

30

35

40

45

50

Interpretation:

According this survey the respondents are approach to take the guide of

educated person are 29%, friendly guide decision are 27%, & totally considered

for advisors to approach to investment are 44% so the investment in make the

finally concern for advisors.

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15. If you have invested in equity shares , what is your expected return

Options No of respondentsa

a 10-15 % 43b

b 15-25 % 25c

c 25-35 % 21d

d 35-above % 11

10-15 % 15-25 % 25-35 % 35-above % 0

5

10

15

20

25

30

35

40

45

50

Interpretation:

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According to survey the respondents are equity shares expected return the

respondents are 43% are return of 10-15%, 25% respondents are return of 15-25%,

21% respondents are return of 25-35%, & 11% respondents are return of 35% so

that the average respondents are prefer for the advisors to gain in invested in

fund.

FINDINGS SUGGESTION AND CONCLUSION

FINDINGS

In Bellary in the Age Group of 25-35years were 80% male 5% female in numbers.

The Investors were in the age group of 36-45 years 14% and the least were in the age

group of above 46- 55 years 1% were investors.

In education group , most of the graduation of male 50%, female 4% and under

graduate 11% and 1% female and others 34% were investors.

In Occupation Group, Most of the Investors Consist of Private Employees with 32%

of male and 3% of female , The next Consist Investors Were Govt. Employees

male 9% and 1% female , And the Least Were Associated with others , Business of

male 24%and female 1% and lastly agriculture were male 20% in investors.

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Only 70% male Respondents were aware about Mutual fund and 3% female aware

about mutual fund its operations and 25% male and female 2% were not aware of

mutual fund.

In 70% of respondents are male and 3% aware share market their operation

and 25% of male and 2% of female share market not aware operation .

Only respondents of pension funds of 18% , gold with 37%, equity stock 13% and

lastly 32% of bonds to be currently owned in the past.

Only 36% male and 3% female equity schemes of investment in mutual

fund ,debt/income schemes 7% male and 1% female of investment in mutual

fund ,liquid 3% of male in investment of mutual fund, hybrid 3% male of

investment in mutual fund, fixed maturity 25% of male and 1% were investment in

mutual fund, lastly exchange traded in 21% of investment in mutual fund.

Only 33% respondents of male and female 5% of for applicable for invest,

debt/income male 11%, 7% male for invest in mutual fund, hybrid schemes 8%,

for fixed maturity plan 14% and lastly exchange traded fund for 19% for invest

in mutual fund.

In liquidity for equity schemes of 12%, low risk for 26%, high return for 41%, and

lastly hedged against inflation of 21%.

In invest prefer liquidity 12% and for low risk 25% prefer for high return 42%

and lastly hedged inflation to the investors of 21% were preferred.

The current attitude towards of highly favorable of 37%, 18% for favorable

some favorable 35%, not very favorable 9% and not at all favorable is least of

1%.

The prefer investment for safety is 10% and liquidity for 23% and flexibility

19%, good return 19%, tax benefit 16% and lastly diversify the benefit 13% for

in mutual fund.

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The affect the qualities of investors in performance and reputation, portfolio

investment , withdrawn facilities and tax benefits , entry load and exit load for

lastly minimum initial investment for least for 1% in not very important.

The interest of investors were 95% male and 3% female and lastly 2% female

were not interest to invest.

In monitor the portfolio the twice in a month of 25% monthly 33% and lastly

more than month of 42% were more monitor in customers.

While investing the safety of principal of 25%, earning interest for inflation

rate for 39% and lastly for earning high return for 36% to be concerned.

29% of Investors preferred to Invest through educated person , 27% of investors

preferred for friendly and lastly prefer for 44% advisors.

In equity shares for percentage of 10-15 for 45%, 15-25% of equity of return to

the 25%, 25-35 of 21% and lastly 35 above were 11% to invested in equity

shares.

Maximum Number of Investors Preferred Growth Option for returns, the next

preferred income and then finally balance fund.

SUGGESTIONS

Mutual Fund Company needs to give the training of the Individual Financial Advisors

about the Fund/Scheme and its objective, because they are the main source to

influence the investors to invest.

Before making any investment Financial Advisors should first enquire about the risk

tolerance of the investors/customers, their need and time (how long they want to

invest). By considering these three things they can take the customers into

consideration.

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Younger people aged fewer than 35 will be a key new customer group in the future,

so making greater efforts with younger customers who show some interest in

investing should pay off.

Customers with graduate level education are easier to sell to and there is a large

untapped market there. To succeed however, advisors must provide sound advice and

high quality.

Investors must be communicated about the schemes on regular basis

Company must offer new and attractive schemes to the investors.

The investment potential is more in rural areas measures should be taken to create

awareness amongst the rural people.

The extensive training should be given to the executives in the company. Besides, the

company should conduct seminars to the customers about various financial services.

The most of the problem spotted is the ignorance. investors should be made aware

of the benefits , no body will invest until and unless he is fully convinced.

The mutual fund offer a lot of benefits which no other single options could

offer.

The advisors should target for more and more young investors. The young investors

as well as persons at the height of their career would like to go for advisors

due to lack of expertise and time.

Conclusion:

Running a successful mutual fund requires complete understanding of the

peculiarities of the small investors. This study has made an attempt to understand

the financial investment of mutual fund investors in connection with the

preference of brand , products etc.

BITM-MBA,BELLARY



I observed that many of people have fear of mutual fund . They think their money

will not be secure in mutual fund.

Many people do not have invested in mutual fund due to lack of awareness

although they have money to invest.

As the awareness and income is growing the number of mutual fund investors are

also growing. Some of the AMC are not performing well although some of the

schemes of them are giving good return because of not awareness about brand.

Reliance, UTI, SBIMF, ICICI prudential etc.

Lastly I thank our institute and the university as well providing such an

opportunity of learning and understanding the various function and process of the

organization practically. Where it is possible for me to make an attempt to apply

theoretical aspects in the organization and most importantly decision making in the

organization.

ANNEXURE:

QUESTIONNAIRE

BITM-MBA,BELLARY



Dear Sir/Madam,

I KARTHEEK.G.S, a student of Bellary institute of technology & management, Bellary doing my dissertation on “A STUDY ON INVESTORS CHOICE OF INVESTMENT BETWEEN MUTUAL FUND (EQUITY SCHEMES) AND EQUITYSHARES ”, as a part of my MBA (Master of Business Administration) curriculum. I request you to fill the questionnaire and help me in completing the project. I assure you that the information provided will be kept strictly confidential and used for academic purposes only.

1. Personal Details: (A). Name: ___________________ (b). Age: _____________________ (c). qualification: Graduation/PG [ ] under graduate [ ] others [ ] (d). occupation please tick ( ) Govt.ser [ ] Pvt.ser [ ] Business [ ] Agriculture [ ] others [ ] (e).What is your income per Month? Please tick ( ) Up to. 10,000 [ ] 10,001 to 15000 [ ] 15,001 to 20000 [ ] 20,001 to30000 [ ] 30,001 and above [ ]

2. Are you aware about mutual fund and their operations? a. Yes [ ] b. No [ ]

3. Are you aware about share market and their operations? a. Yes [ ] b. No [ ]4. List the investment instruments you are currently owned/in the past. a. pension funds [ ] b. Gold [ ] c. equity stock [ ] d. Bonds [ ]5. Are you aware of below mentioned scheme of investment in mutual fund? a. Equity schemes [ ] b. Debt/income schemes [ ] c. liquid schemes [ ] d.Hybrid schemes [ ] e. fixed maturity plan [ ] f. exchange traded fund [ ]

6.what kind of investment in mutual fund you have made so far ?please tick a. All applicable [ ] b. Debt/income schemes [ ] c. liquid schemes [ ] d. Hybrid schemes [ ] e. fixed maturity plan [ ] f. exchange traded fund [ ]

7. If you have invested in equity schemes , why did you prefer to invest ? a. Liquidity [ ] b. Low risk [ ] c. high return [ ] d. hedge against inflation [ ]

8.if you have invested in debt schemes , why did you prefer to invest.

BITM-MBA,BELLARY



a. liquidity [ ] b. Low risk [ ] c. high return [ ] d. hedge against inflation [ ]

9.what is your current attitude towards the following financial instruments, in the Indian capital market ? Please tick

Highlyfavorable

Favorable Some whatfavorable

Not veryfavorable

Not at allfavorable

10. You prefer investment in mutual fund due to (rank from 1 to 8 down) a. Safety [ ] b. Liquidity [ ] c. Flexibility [ ] d. Good return [ ] e. tax benefit [ ] f. diversification benefit [ ]

11. There are many qualities that could affect your selection of investmentSchemes please indicate importance of following in your decision.

Highly Important

Important Some whatImportant

Not veryImportant

Not at allimportant

I. Fund related Qualitiesfund Performance recordReputation or brand namePortfolio of investmentWithdrawal facilitiesTax benefitEntry & Exit loadMinimum Initial Investment

12. Do you interest to investment in mutual fund / equity. Schemes please tick a. Yes [ ] b. No [ ]13. How often do you monitor your portfolio of customer? a. Daily [ ] b. Weekly [ ] c. Twice in a month [ ] d. Monthly [ ] e. More than a month [ ] 14. While investing you are more concerned about a. Safety of principal [ ] b. Earning interest above the inflation rate [ ] c. Earning high return [ ] 15. Approach in making investment

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a. You take educated view on the investment [ ] b. You take friendly advice and make decision [ ] c. You rely totally on your investment advisors [ ]

16. if you have invested in equity shares , what is your expected return a. 10-15 % [ ] b. 15-25 % [ ] c. 25-35 % [ ] d.35-above % [ ]

BIBLIOGRAPHY

Text Books

Research Methodology - Kothari

Websites

mutual fund hand book

www.SBImf.com

www.moneycontrol.com

www.amfiindia.com

Www. mutualfundsindia.com

Www. sebi.com

Www. bseindia.com

Nse .com

BITM-MBA,BELLARY


kartheek final report sbi mutual fund

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