INTRODUCTION

The evolution of State Bank of India can be traced back to the first decade of the 19th

century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June

1806. The bank was redesigned as the Bank of Bengal, three years later, on 2 January

1809. It was the first ever joint-stock bank of the British India, established under the

sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay

(established on 15 April 1840) and the Bank of Madras (established on 1 July 1843)

followed the Bank of Bengal. These three banks dominated the modern banking scenario

in India, until when they were amalgamated to form the Imperial Bank of India on 27

January1921.

An important turning point in the history of State Bank of India is the launch of the first

Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian

economy in general and the rural sector of the country, in particular. Until the Plan, the

commercial banks of the country, including the Imperial Bank of India, confined their

services to the urban sector. Moreover, they were not equipped to respond to the growing

needs of the economic revival taking shape in the rural areas of the country. Therefore, in

order to serve the economy as a whole and rural sector in particular, the All India Rural

Credit Survey Committee recommended the formation of a state-partnered and state bank

sponsored

The All India Rural Credit Survey Committee proposed the takeover of the Imperial

Bank of India, and integrating with it, the former state-owned or state-associate banks.

Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the

State Bank of India (SBI) was established on 1 July 1955. This resulted in making the

State Bank of India more powerful, because as much as a quarter of the resources of the

Indian banking system were controlled directly by the State. Later on, the State Bank of

India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of

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India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the

480 offices comprising branches, sub offices and three Local Head Offices, inherited

from the Imperial Bank. Instead of serving as mere repositories of the community’s

savings and lending to creditworthy parties, the State Bank of India catered to the needs

of the customers, by banking purposefully the bank served the heterogeneous financial

needs of the planned economic development.

Branches

the corporate center of SBI is located in Mumbai. In order to cater to different functions,

there are several other establishments in and outside Mumbai, apart from the corporate

center. The bank boasts of having as many as 14 local head offices and 57 Zonal Offices,

located at major cities throughout India. It is recorded that SBI has about 10000 branches,

well networked to cater to its customers throughout India.

ATM Services

SBI provides easy access to money to its customers through more than 8500 ATMs in

India. The Bank also facilitates the free transaction of money at the ATMs of State Bank

Group, which includes the ATMs of State Bank of India as well as the Associate Banks –

State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Indore, etc. You

may also transact money through SBI Commercial and International Bank Ltd by using

the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries and several non-

banking subsidiaries. Through the establishments, it offers various services including

merchant banking services, fund management, factoring services, primary dealership in

government securities, credit cards and insurance.

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The eight banking subsidiaries are:

State Bank of Bikaner and Jaipur (SBBJ) State Bank of Hyderabad (SBH) State Bank of India (SBI) State Bank of Indore (SBIR) State Bank of Mysore (SBM) State Bank of Patiala (SBP) State Bank of Saurashtra (SBS) State Bank of Travancore (SBT)

Products And Services Personal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property SBI Housing Loan Loan Against Shares & Debentures SBI Car Loan Rent Plus Scheme SBI Educational Loan Medi-Plus Scheme

Other Services

Agriculture/Rural Banking NRI Services ATM Services Demat Services Corporate Banking Internet Banking Mobile Banking International Banking Safe Deposit Locker RBIEFT E-Pay E-Rail SBI Vishwa Yatra Foreign Travel Card Broking Services Gift Cheques

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OBJECTIVES

The main objective is to study about the different plans of SBI mutual fund

To give a brief idea about the benefits available from Mutual Fund investment.

 To analyze the importance of mutual funds in today scenario.

To study about the operations in SBI mutual fund.

To understand and analyze the performance of SBI Mutual Funds in Mutual Fund

Industry.

To analyze what type of scheme provide by SBI.

RESEARCH METHODOLOGY

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Research in common parlance refers to a search for knowledge. One can also define

research as a scientific and systematic search for pertinent information on a specific topic.

Research methodology is a way to systematically solve the research problem. Research

methodology just does not deal research method but also consider the logic behind the

method. It facilitates the researcher with reason for evaluating the research problem.

Definition:

According to Redman and Moray

“Research is systematized effort to gain new knowledge”.

According to Clifford Woody

“Research comprises defining and redefining problems, formulating hypothesis or

suggested solutions, collecting organizing and evaluating data , making deductions and

reaching conclusions and at last carefully testing the conclusions to determine whether

they fit the formulating hypothesis”.

It has also defined as ‘a careful investigation or inquiry especially through search

for new fact in any branch of knowledge’.

Research comprises defining research problems, formulates the hypothesis,

research design including sample designing, data collection, analysis of data,

interpretation, conclusion on the basis of interpretation. Apart from it suggestions and

recommendations are also the part of research.

The research methodology is through secondary data:

Journals

internet

books

RESEARCH DESIGN

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The formidable problem that follows the task of defining the research problem is the design

of the research project, popularly known as the ‘research design’. To define the term

research design it can be said “a research design is the arrangement of conditions for

collection and analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedure”. In fact the research design is the conceptual structure

within which research is conducted; it constitutes the blueprint for the collection,

measurement and analysis of data. As such the design includes an outline of what the

researcher will do from writing the hypothesis and its operational implications to the final

analysis of data..

Features of a good design:

It must be flexible enough.

Appropriate and efficiency must lie in the report.

It should minimize bias and maximize the reliability of the data collected.

The design must be suitable as per the requirement of the case.

Important concept relating to research design:

Dependent and independent variables.

Extraneous variables.

Control.

Confounded relationship.

Research hypothesis.

Experimental and non- experimental hypothesis- testing research.

Experimental and control groups.

Treatment.

Experiments.

Experimental units.

Research design used in this report

COMPANY PROFILE

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SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an

investor base of over 5.8 million. With over 20 years of rich experience in fund

management, SBI MF brings forward its expertise in consistently delivering value to its

investors.

SBI MF draws its strength from India's Largest Bank State Bank of India and Société

Générale Asset Management, France

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an

enviable track record in judicious investments and consistent wealth creation. The

fund traces its lineage to SBI - India’s largest banking enterprise. The institution

has grown immensely since its inception and today it is India's largest bank,

patronized by over 80% of the top corporate houses of the country. SBI Mutual

Fund is a joint venture between the State Bank of India and Society General Asset

Management, one of the world’s leading fund management companies that

manages over US$ 500 Billion worldwide. At SBI Mutual Fund, resources are

considerably devoted to gain, maintain and sustain profitable insights into market

movements. The trust reposed on SBI-MF by over 5.4 million investors is a

genuine tribute to its expertise in Fund Management. SBI Mutual Fund is India’s

largest bank sponsored mutual fund and has an enviable track record in judicious

investments and consistent wealth creation.

Thus SBI-MF believes in

Proven Skills in Wealth Generation

Exploiting expertise, compounding growth

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Proven Skills in Wealth Generation.

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation.

The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has grown immensely since its inception and today it is India's largest bank, patronized by over 80% of the top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Société Générale Asset Management,  one  of  the  world’s  leading  fund  management  companies  that  manages  over US$ 500 Billion worldwide.

Exploiting expertise, compounding growth

In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them. In the process it has rewarded it's investors handsomely with consistent returns.

A total of over 5.8 million investors have reposed their faith in the wealth generation expertise of the Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark indices and have emerged as the preferred investment for millions of investors and HNI’s.

Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile of investors actively parking their investments across 38 active schemes.

The fund serves this vast family of investors by reaching out to them through network of over 130 points of acceptance, 29 investor service centers, 59 investor service desks and 6 Investor Service Points.

SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent India Opportunities Fund.

Growth through innovation and stable investment policies is the SBI MF credo.

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Mr. Deepak Kumar ChatterjeeManaging Director & Chief Executive Officer

   

Mr. Didier TurpinDy. Chief Executive Officer

Mr. V. V. Anand Executive Vice President

Mr. K. T. Ravindran Chief Operating Officer

Ms. Aparna NirgudeChief Risk Officer

Ms. Vinaya Datar Company Secretary & Compliance Officer

Mr. Navneet MunotChief Investment Officer

Mr. R. S. Srinivas JainChief Marketing Officer

Mr. C A SantoshChief Manager - Customer Service.

 

OPERATIONS

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In twenty years of operation, the fund has launched thirty-eight schemes and successfully

redeemed fifteen of them. In the process it has rewarded its investors handsomely with

consistently high returns. A total of over 5.4 million investors have reposed their faith in

the wealth generation expertise of the Mutual Fund. Schemes of the Mutual fund have

consistently outperformed benchmark indices and have emerged as the preferred

investment for millions of investors and HNI’s. Today, the fund manages take care of

almost over Rs. 31,794 cores of assets and has a diverse profile of investors actively

parking their investments across 36 active schemes. The fund serves this vast family of

investors by reaching out to them through network of over 130 points of acceptance, 28

investor service centers, 46 investor service desks and 56 district organizers.

HISTORICAL VIEW

SBI MUTUAL FUNDS

1987- SBI mutual fund was the first bank sponsored mutual fund in India, incorporated

by SBI bank in June 1987.

1987- SBI mutual fund launches the fist scheme “Magnum regular income scheme1987”

1993- May 1993, SBI took over the principal trustee of the fund. The investment

management function was entrusted to SBI Funds Management Pvt Ltd.

1993- SBI mutual funds launches SBI magnum Taxgain on March 31 1993. The fund is

now the largest managed schemes and is a flagship ELSS scheme in industry.

1999- SBI mutual funds launches magnum sector fund umbrella in July 1999. The fund

includes sub funds like MSFU FMCG, MSFU Pharmacy, MSFU IT, MSFU emerging

business and MSFU contra fund (India’s 1st contrarian based equity fund)

2002- SBI mutual fund launches its investor’s education initiative to reach out to the

Investors and to educate about them mutual funds as interactive investment option.

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2004- SBI mutual funds launches dedicated fund targeted to the NRI investors. NRI

investment fund to provide attractive returns through periodic dividends or through

capital appreciation.

2004- SBI mutual funds formalize its joint venture with Society General Asset

management of France in December 2004.

2005- SBI mutual fund launches magnum COMMA on August 17 2005, invests in stocks

of commodity based companies.

2006- Most preferred mutual fund 2006-awared by CNBC awaaz.

2006- SBI mutual fund launches SBI ONE INDIA fund, 1st equity based fund on

regional focus.

2007- Mutual fund of the year -2007 CNBC TV 18 – CRISIL

2007- Record mobilization in NFO- SBI INFRASTRUCTURE FUND- SERIES 1.

AWARDS

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Our expertise and excellent performance is frequently recognized by the mutual fund industry.

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 2007 and 5 Awards for our schemes.

2010

 2009

 2008

12

 2007

13

 2006

 

Much of the credit for sustained performance of SBIMF goes to our team. They are the real performers whose expertise and capability rewards our investors

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COMPETITORS OF SBI MUTUAL FUND

Some of the main competitors of SBI Mutual Fund as follow

ICICI Mutual Fund

Reliance Mutual Fund

UTI Mutual Fund

Birla Sun Life Mutual F und

Kotak Mutual Fund

HDFC Mutual Fund

Sundaram Mutual Fund

LIC Mutual Fund

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STRUCTURE OF MF IN INDIA

Like other countries, India has a legal framework within which mutual funds must be

constituted. In India, open and closed-end funds operate under the same regulatory

structure, i.e. in India; all mutual funds are constituted along one unique structure-as unit

trust. A mutual fund in India is allowed to issue open-end and close end schemes under

a common legal structure. Therefore, a mutual fund may have different schemes (open

and closed-end) under it i.e. under one unit trust, at any point of time. The structure,

which is required to be followed by mutual funds in India, lay down under SEBI (Mutual

Fund) Regulations, 1996.

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The Fund Sponsor

'Sponsor" is defined under SEBI regulations as any person who, acting alone or in

combination with another body corporate, establishes a, mutual fund. The sponsor of a

fund is akin to the promoter of companies he gets the fund registered with SEBI. The

sponsor will form a Trust and appoint a board of Trustees. The sponsor will also

generally appoint 11 Asset management Company (AMC) as fund managers. The

sponsor ill also appoint a Custodian to hold the fund assets. All these appointment are

made in accordance with the SEBI regulations. Per the existing SEBI regulations, for a

person to qualify as a sponsor, must contribute at least 40% of the net worth of the AMC

and issues a sound financial track over five years prior to registration.

Mutual Funds as Trusts

Mutual fund in India is constituted in the form of a Public Trust under the Indian Trusts

Act 1882.The fund invites investors. Contribute their money in the common pool by

subscribing to units Issued by various schemes established by the trust as

evidence of their beneficial interest in the fund.

The trust or fund has no legal capacity itself rather it is the Trustee(s) who

have legal capacity and therefore the trustees take all acts in relation to the

trust on its behalf.

Trustees

A board of trustees - a body of individuals, or a Trust company - a corporate

body, may manage the Trust. Board of Trustees manages most of the funds

in India. The Board or the Trustee Company (body of individuals, corporate

body, for managing the portfolio, appoints an Asset Management Company.

The Trust is created through a document called the Trust Deed that is

executed by the Fund Sponsor in favors of the trustees. They are the

primary guardian of the unit holder's funds and assets. They ensure that

AMC's operations are along professional lines.

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Asset Management Company

The role of an Asset Management Company (AMC) is to act as the investment

manager of the trust under the Board supervision.

Transfer Agents

Transfer agents are responsible for issuing and redeeming units of the

mutual fund and provide other related services such as preparation of

transfer documents updating investors' records. A fund may choose to

out this activity in-house or by an outside transfer agent.

Distributors

AMCs usually appoint Distributors or Brokers, who sell units on behalf of the

fund. Some funds require that all transactions to be routed through such brokers.

In India, besides brokers, independent individuals are appointed as agents for the

purpose of selling the fund scheme to the investors. While individual constitute the

largest segment in the category of mutual fund distributors, other distributors include

banks, NBFCs and corporate.

Bankers

A fund's activities involve dealing with the money on a continuous basis primarily

with respect to buying and selling units, paying for investment made, receiving the

proceeds on sale of investment and discharging its obligations towards operating

expenses. A funds banker therefore plays a crucial role with respect to its financial

dealings by holding its bank account and providing it with remittance services

Custodian and Depository

The custodian is appointed by the Board of Trustees for safekeeping of securities in

terms of physical delivery and eventual safe keeping or participating in the

clearing system through approved depository companies on behalf of the

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mutual fund and must fulfill its responsibilities in accordance with its

agreement with the mutual fund.

The Indian markets are moving away from having physical certificates for securities,

to ownership of these securities in dematerialized form with a depository. Thus, a

Depository Participant will hold a mutual fund’s dematerialized securities holdings.

A fund's physical securities will continue to be held by a custodian.

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TYPES OF SBI MUTUAL FUND SCHEMES

Type Scheme Name

Investment Objective

Minimum Investment amount

Additional Investmen

t

Exit Load

Expenses Ratio

Equity SBI Arbitrage Opportunities Fund

"To provide capital appreciation and regular income for unit holders by identifying profitable arbitrage opportunities between the spot and derivative market segments as also through investment of surplus cash in debt and money market instruments "

Rs. 25000 Rs.1000 "For exit within 7 business days from the date of allotment-0.25%, For exit after 7 business days from the date of allotment - Nil "

1.22

Equity SBI Magnum Blue-chip Fund

"To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is at least equal to or more than the least market capitalized stock of BSE 100 Index."

Rs.5000 Rs.1000 Nil 2.50

Equity SBI Magnum

"To generate opportunities for

Rs.5000 Rs.1000 "For exit within 1

2.50

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COMMA Fund

growth along with possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity business within the following sectors - Oil & Gas, Metals, Materials & Agriculture and in debt & money market instruments."

year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

Equity SBI Magnum Equity Fund

"The objective of the scheme is to provide the investor – Long term capital appreciation by investing in high growth companies along with the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt and money market instruments."

Rs.5000 Rs.1000 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

2.50

Equity SBI Magnum Global Fund 94

"To provide investors maximum growth opportunity through well researched investments in Indian equities, PCDs and FCDs from selected industries with high growth potential and in Bonds"

Rs. 2000 Rs. 500 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

2.50

Equity SBI Magnum

“The scheme will invest in stocks

Rs.5000 Rs.1000 Exit Load –

1.50

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Index Fund comprising the S&P CNX Nifty index in the same proportion as their weight age in the index with the objective of achieving returns equivalent to the Total Returns Index of S&P CNX Nifty index by minimizing the performance difference between the benchmark index and the scheme. The Total Returns Index is an index that reflects the returns on the index from index gain/loss plus dividend payments by the constituent stocks. The scheme will adopt a passive investment approach"

1.00% for exit within 7 business days from the date of investment

Equity SBI Magnum Midcap Fund

"To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme by investing predominantly in a well diversified basket of equity stocks of Midcap companies. Midcap companies are those companies whose market capitalization at the time of investment is lower than the last stock in

Rs. 5000 Rs.1000 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

2.50

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the S&P CNX Nifty Index less 20% (upper range) and above Rs. 200 cores. "

Equity SBI Magnum Multi Cap Fund

"To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum and in debt and money market instruments "

Rs. 5000 Rs.1000 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

2.50

Equity SBI Magnum Multiplier Plus 1993

"The objective of the scheme is to provide the investor with long term capital appreciation/ dividends along with the liquidity of an open-ended scheme. The scheme will invest in a diversified portfolio of equities of high growth companies "

Rs. 1000 Rs.500 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

2.50

Equity SBI Magnum NRI Investment Fund Flexi Asset Plan

"To provide attractive returns to the Magnum/unit holders holders either through periodic dividends or through capital appreciation through an actively managed portfolio of debt,

Rs.50000 Rs.1000 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the

2.50

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equity and money market instruments. "

date of allotment - Nil."

Equity SBI Magnum Sector Umbrella Contra

"To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors. There are four sub-funds dedicated to specific sectors viz. IT, Pharmaceuticals, FMCG, Contra sub fund for investment in stocks currently out of favor and Emerging Business Fund (EBF) to participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies. The fund may also evaluate emerging businesses with growth potential and domestic Focus "

Rs. 2000 Rs.500 "For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of allotment - Nil."

2.50

Equity SBI Magnum Sector Umbrella Emerging Businesses

"To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors.

Rs. 2000 Rs.500 "For exit within 1 year from the date of allotment - 1%; For

2.50

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There are four sub-funds dedicated to specific sectors viz. IT, Pharmaceuticals, FMCG, Contra sub fund for investment in stocks currently out of favor and Emerging Business Fund (EBF) to participate in the growth potential presented by various companies that are considered emergent and have export orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies. The fund may also evaluate emerging businesses with growth potential and domestic Focus "

exit after 1 year from the date of allotment - Nil."

Debt SBI Magnum Gilt STP

"To provide the investors/unit holders with returns generated through investments in government securities issued by the Central Government and / or a State Government "

"Growth - Rs.25000 Dividend - Rs.100000"

"Growth Option - Rs. 5000 Dividend Option - Rs. 5000"

CDSC - 0.15% for exit within 15 days from the date of investment

0.84

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PROCEDURE

Fresh Purchase: After deciding on the type of scheme, the investor will have to fill in

the Application form, attach a payment instrument and submit it at any of the funds'

collection centers before the cut off time. The investor has to invest in rupees and units

will be allotted to him in fractions depending upon the NAV.

Additional Purchase: Buying more units either of the same scheme or of a different

Scheme under the SAME FOLIO is an additional purchase, which can be done through

Additional Purchase slips provided along with the account statement. After filling the

Same, the investor will have to attach a cheque with it and submit it at any of the

collection centers before the cut-off time.

Switch Units: A switch request will have to be filled in and submitted at any of the

Collection centers before the cut off time. SWITCH can be done with either partial or all

Units under a particular scheme to another scheme as specified by him under the same

Folio.

Redeem / Repurchase Units: If the fund is open ended, the investor has to send the

Repurchase requisition slip, duly completed and signed, to any of our branches. It is

Possible to lodge repurchase requests on the Internet also. The redemption can be done

for all units, partial units, or for an amount.

ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)

AMFI is a trade body of all the mutual funds in India. It was incorporated in August 1995

As a non-profit organization to promote and protect the interests of mutual funds and

Their Unit holders define and maintain high ethical and professional standards and

Enhance Public awareness of mutual funds. All mutual funds in India are members of the

Association. AMFI works through committees and working groups.

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LITRATURE SURVEY

A mutual fund, also called an investment company, is an investment vehicle which pools

the money of many investors. The fund's manager uses the money collected to purchase

securities such as stocks and bonds. The securities purchased are referred to as the fund's

portfolio.

When you give your money to a mutual fund, you receive shares of the fund in return.

Each share represents an interest in the fund's portfolio. The value of your mutual fund

shares will rise and fall depending upon the performance of the securities in the portfolio.

Like a shareholder in a corporation, you will receive a proportional share of income and

interest generated by the portfolio. You can receive these distributions either in cash or as

additional shares of the fund. As a shareholder, you also have certain shareholder voting

rights.

A mutual fund's portfolio is managed by a professional money manager. The manager's

business is to choose securities which are best suited for the portfolio. Be aware,

however, that even a professional money manager cannot insure against a loss of

principal.

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The mutual fund manager will invest in many different securities. This diversification of

portfolio assets means that you as an investor have not pinned all your hopes on one

company's success. Also, because the portfolio holds many securities, the negative impact

that any one company may have on the fund is diminished. While diversification is a

benefit of mutual fund investing, a mutual fund is still impacted, either favorably or

unfavorably, by the ups and downs of the market in general.

Mutual funds provide a relatively easy way to invest. Most funds have a minimum

investment of $1000. In addition, a mutual fund stands ready to buy back, or redeem,

your shares at any time. This liquidity allows you to get your money when needed. There

is no guarantee, however, that your shares at the time of redemption will not have

decreased in value.

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FINDINGS

Diversification: The best mutual funds design their portfolios so individual

Investments will react differently to the same economic conditions. For example,

Economic conditions like a rise in interest rates may cause certain securities in a

Diversified portfolio to decrease in value. Other securities in the portfolio will

Respond to the same economic conditions by increasing in value. When a portfolio

Is balanced in this way, the value of the overall portfolio should gradually increase

Over time, even if some securities lose value.

Professional Management: Most mutual funds pay topflight professionals to

Manage their investments. These managers decide what securities the fund will buy

and sell.

Regulatory oversight: Mutual funds are subject to many government regulations

That protects investors from fraud.

Liquidity: It's easy to get your money out of a mutual fund. Write a check, make

A call and you've got the cash.

Convenience: You can usually buy mutual fund shares by mail, phone, or over

the

Internet

Low cost: Mutual fund expenses are often no more than 1.5 percent of your

Investment. Expenses for Index Funds are less than that, because index funds are

not actively managed. Instead, they automatically buy stock in companies that are

Listed on a specific index

Transparency

Flexibility

Choice of scheme

Tax benefit

well regulated

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CONCLUSION

Being the 7th biggest AMC,SBI Mutual Fund has a cutting edge over other AMC’s

SBI is most popular private sector bank in India so public response is very high.

SBI Mutual Fund is one of the oldest AMC’s in private sector and schemes which

are matured enough pull new investors because of high returns.

SBI Mutual Fund offers clear and non overlapping positioning of different funds.

Increase importance of mutual fund day to day because low risk and high rate of

return

Training provided to investors may lead to more investments.

Competitors like Reliance AMC, ICICI prudential are catching up fast on the

market share.

Share market of SBI regular increase.

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LEARNINGS AT SBI MUTUAL FUND

Learning from SBI Mutual Fund include

Dealing with corporate culture

Dealing with bank officials

Building and maintaining relationships

Apart from the on field work, we took part in activities conducted in SBI Mutual

Fund office, which included discussions on

Money Market Instruments

Market news updates

These discussions gave us an exposure in the field of finance, thereby enhancing

our knowledge and allowing us to link it with the mutual fund industry.

A brief overview of the discussion outlines have been given below.

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LIMITATION

SBI Mutual funds have their Limitation and may not be for everyone:

No Guarantees: No investment is risk free. If the entire stock market declines in

Value, the value of mutual fund shares will go down as well, no matter how

Balanced the portfolio. Investors encounter fewer risks when they invest in mutual

Funds than when they buy and sell stocks on their own. However, anyone who

Invests through a mutual fund runs the risk of losing money.

Fees and commissions: All funds charge administrative fees to cover their

Day-to-Day expenses. Some funds also charge sales commissions or "loads" to

Compensate brokers, financial consultants, or financial planners. Even if you don't

Use a broker or other financial adviser, you will pay a sales commission if you buy

Share in a Load Fund.

Taxes: During a typical year, most actively managed mutual funds sell anywhere

From 20 to 70 percent of the securities in their portfolios. If your fund makes a

Profit on its sales, you will pay taxes on the income you receive, even if you

Reinvest the money you made.

Management risk: When you invest in a mutual fund, you depend on the funds

Manager to make the right decisions regarding the fund's portfolio. If the manager

Does not perform as well as you had hoped, you might not make as much money

On your investment as you expected. Of course, if you invest in Index Funds, you

Forego management risk, because these funds do not employ managers.

No control over Cost in the Hands of an Investor

Difficulty in selecting a Suitable Fund Scheme

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SWOT ANALYSIS OF SBI MU TUAL FUND

STRENGTH

Being the 7th biggest AMC,SBI Mutual Fund has a cutting edge over other AMC’s

The name SBI is also associated with one of the largest public sector bank in

India, and hence people show more faith in SBI Mutual Fund.

SBI Mutual Fund is one of the oldest AMC’s in private sector and schemes which

are matured enough pull new investors because of high returns.

Wide variety of funds, ranging from debt funds to equity and a mixture of both in

various proportions, give ample amount of choice to customers.

SBI Mutual Fund offers clear and non overlapping positioning of different funds

Winner of CNBC TV-18-CRISIL mutual fund of the year award.

WEAKNESS

Lack of promotional material, dispensers, banners.

Proper training not being provided to bank officials.

OPPORTUNITIES

Untapped rural market offers huge potential.

More focus on PSU’s may enhance business.

Training provided to investors may lead to more investments.

THREATS

Competitors like Reliance AMC, ICICI prudential are catching up fast on the

market share.

Share market slump may see downfall in investments

RECOMMENDATION

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The organization on the wide scale should conduct investor awareness programs.

While the firm should conduct such programs in their locality to inform its

existing customer about various mutual fund scheme.

The investors should analyze and indentify their objective of investment in

Mutual Funds and the periods.

Company should give handsome brokerage to brokers so that they get attracted

towards distribution of the funds.

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BIBLIOGRAPHY

WEBSITES

www.sbimf.com: For Comparative Analysis:

http://valueresearchonline.com/funds/newsnapshot.com

http://www.valueresearchonline.com/funds/default.asp

http://amfiindia.com/navreport.asp

www.franklintempletonindia.com

www.principalindia.com

http://www.google.com Advanced web search for scholarly articles and e-books on the

subject

BOOKS

V.A.Avdhani ( Financial Services)

ICFAI ( Financial Services)

NEWSPAPERS

Economic times

Financial Express

Business standard

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