CHAPTER 1 1.

1EXECUTIVE SUMMERY

In past few years, most of the people are very much familiar with the term Mutual Fund. From last 20 years, the concept of Mutual Fund has developed as a tool for ensuring ones financial well-being. Mutual Funds have also contributed to the Indias growth. As information and awareness about this is rising more and more, people are enjoying the benefits of investing in mutual funds also. Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. Now a days, there are a lots of investment options available in the financial market for an investor with an investable surplus. Earlier, People began opting for portfolio managers with expertise in stock markets who would invest on their behalf. Thus we had wealth management services provided by many institutions. However, they proved too costly for a small investor. These investors have found a good shelter with the mutual funds. Considering the Indian Mutual fund industry, it has seen a lot of changes in past few years with multinational companies coming into the country. This project-work emphasis on the term Mutual Fund and various aspects of it such as its types, nature, advantages & disadvantages etc. This Project is divided into two parts. The first part gives a detail knowledge about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology .The second part of

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the Project consists of data and its analysis. For the better illustration SBI Mutual Fund is considered and studied. It also consist conclusion and recommendation. 1.2OBJECTIVES OF THE STUDY

To study the concept of Mutual fund in depth. To know whether the mutual fund is better than any other investment option or not. To study the concept with an effective illustration i.e. SBI Mutual Funds. To understand the practical working of mutual fund operations. To know why one has invested or not invested in SBI Mutual fund. To find out the most preferred channel of todays investors. To find out what will be the ways to boost Mutual Fund Industry.
1.3 RESEARCH METHODOLOGY This report is based on primary as well as secondary data, however the secondary data collection was given more importance since it has extracted from the reliable sources. Primary data is collected for the purpose of obtaining investors views and opinions as stated above in the objectives. Data Sources: Secondary data is used only for the reference and information. Research has been done by primary data collection and primary data has been collected by interacting with various people. The secondary data has been collected through various books and websites. Statistical Techniques Used: Statistical calculations have been made, making general use of Microsoft Excel on the computer. The Statistics and Graphs / Tables are based on Secondary & primary data extracted from various resource
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CHAPTER 2 2.1 INTRODUCTION The history of mutual funds, gives the date in 19th century when it was introduced in Europe. Robert Fleming set up in 1868 the first investment trust called Foreign And Colonial Investment Trust which promised to manage the finances of the rich classes of Scotland by distribute the investment over a number of different stocks. This investment trust and other investment trusts which were afterward set up in Britain and the U.S., resembled todays closeended mutual funds. The first mutual fund in the U.S., Massachusetts investors trust, was set up in March 1924. This was the openended mutual fund. A Mutual fund is type of Investment Company that gathers assets form investors and collectively invests in stocks, bonds, or money market instruments. A Mutual Fund is a type of professionally-managed collective investment that pools money from many investors to purchase securities. While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment vehicles that are regulated, available to the general public and open-ended in nature. Mutual funds are trusts that accept the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and
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the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Therefore a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. A Mutual Fund is an investment tool that allows small investors to receive a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as per the need. The funds Net Asset value (NAV) is determined each day. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder.Any change in the value of the investments made into capital market instruments (such as shares, debentures .etc) is reflected in the Net Asset Value (NAV) of the scheme.

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2.2 HISTORY OF INDIAN MUTUAL FUND The mutual fund industry in India was started in 1963 with the formation of Unit Trust of India (UTI) with an 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 the Industry. In the past 10 years, 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 Rs.67 billion. The private sector entry to the fund family raised the AUM to Rs. 470 billion in March 1993 and till April 2004; it reached up to the Rs. 1540 billion. The growth & development mutual fund industry can be broadly divided into four phases according to the development of the sector. It is explained as under : First Phase(1964-1987) : Origin and Pioneer Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978, UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme-1964. At the end of 1988 UTI had Rs.6, 700 crores of assets under management. Second Phase(1987-1993) :Growth : Entry of Public Sector 1987 marked the entry of non-UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
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of India (GIC). SBI Mutual Fund was the first non-UTI Mutual Fund established in June 1987. There after Punjab National Bank Mutual Fund in August1989, Indian Bank Mutual Fund in November1989, Bank of India in June1990, Bank of Baroda Mutual Fund in October1992. LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the Indian mutual fund industry had assets under management of Rs.47,004 crores. Third Phase(1993-2003):Growth : Entry of Private Sector 1993 was the year in which the first Mutual Fund Regulations came into existence, under which all mutual funds, except UTI were to be registered and governed. The earlierKothari Pioneer which now merged with Franklin Templeton was the first private sector mutual fund registered in July 1993. In1993, SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. Fourth Phase(since February 2003) In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was separated into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain other schemes The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
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CHAPTER 3 3.1 ORGANISATION STRUCTURE OF MUTUAL FUNDS

Mutual funds have organization straucture as per ther Security Exchange Board of India guideline, Security Exchange Board of India specified authority and responsibility of Trustee and Aeest Management Companies. The objectives is to controlling, to promoted, to regulate, to protected the investors right and efficient trading of units. Operation of Mutual fund start with investors save their money on mutual fund, than Mutual Fund manager handling the funds and strategic investment on scrip. As per the objectives of particular scheme manager selected scrips. Unit value will become high when fund manager investment policy generate the return on capital market. Unit return depends on fund return and efficient capital market. Also affects international capital market, liquidity and at last economic policy. Below the graph indicates how the process was going on to investors to earn returns. Mutual fund manager having high responsibility inside of return and how to minimize the risk. When fund provided high return with high risk, investors attract to invest more fund for same scheme.

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The Mutual fund organization as per the SEBI formation and necessary formation is needed for sooth activities of the companies and achieved the desire objectives. Transfer agent and custodian play role for dematerialization of the fund and unit holders hold the account statement, but custody of the unit is on particular Asset Management Company. Custodian holds all the fund units on dematerialization form. Sponsor had decided the responsibility of custodian when investor to purchase the fund and to sell the unit. Application forms, transaction slip and other requests received by transfer agent, middle men between investors and Assts Management Companies.

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3.2 ADVANTAGES OF MUTUAL FUND

ADVANTAGES OF MUTUAL FUNDS: 1. Professional Management - The primary advantage of funds is the professional management of investors money. Investors purchase funds because they do not have the time or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for a small investor to get a full-time manager to make and monitor investments. 2. Diversification - By owning shares in a mutual fund instead of owning individual stocks or bonds, investors risk is spread out. The idea behind diversification is to invest in a large number of assets so that a loss in any particular investment is minimized by gains in others. 3. Economies of Scale / Less Per-Head Operation Expenses - Because a mutual fund buys and sells large amounts of securities at a time, its transaction costs are lower than what an individual would pay for securities transactions. 4. Liquidity - Just like an individual stock, a mutual fund allows to that the shares can be converted into cash at any time. 5. Simplicity - Buying a mutual fund is an easy task. Most companies also have automatic purchase plans whereby a little amount can be invested on a monthly basis. 6. Transparency An investor gets regular information on the value of his investment in addition to disclosure on the specific investments made by his scheme, the proportion invested in each class of asset.
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7. Choices of Scheme Mutual Funds offer a family of scheme to suite your varying needs over a life time. 8. Well-Regulated In India, all mutual funds are registered with Stock Exchange Board of India (SEBI) and they function within the framework and provisions of strict regulations designed to protect the interest of Investors.

3.3 DISADVANTAGES OF MUTUAL FUND

DISADVANTGES OF MUTUAL FUNDS : 1. Management by Outsiders - Management is by no means reliable and even if the fund loses money, the manager still gets paid. 2. Costs - Creating, distributing and running a mutual fund is an expensive proposition. Those expenses are passed on to the investors. Since fees vary from fund to fund, failing to pay attention to the fees can have negative long-term consequences. 3. Dilution - Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money. 4. Taxes - When a fund manager sells a security, a capital-gains tax is generated. Investors who are concerned about the impact of taxes need to keep those concerns in mind while investing in mutual funds. 5. No guarantee of return Investment in Mutual funds does not guarantee returns on investments. A mutual fund may perform better than the stock market but this does not necessarily lead to a gain for the investor.
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6. Diversification -A mutual fund helps to create a diversified portfolio. Though such diversification helps to minimize the risks but it wont ensure the maximum returns. 7. Unethical Practices Mutual funds may not play a fair game. Each scheme may sell some of the holdings to its sister concerns for the substantive notional gains and posting NAVs in a formalized manner.

3.4 TYPES MUTUAL FUND There are various types of Mutual Funds available in the market. They are as follows:

ON THE BASIS OF STRUCTURE

ON THE BASIS OF STRUCTURE

OPEN ENDED FUNDS

CLOSE-ENDED FUNDS

1. Open-Ended Funds: Investors can buy and sell the units from the fund, at any point of time.

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2. Close-Ended Funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of closeended funds provided liquidity window on a periodic basis such as monthly or weekly.

ON THE BASIS OF INVESTMENT OBJECTIVE

EQUITY FUNDS

BALANCED FUNDS

DEBT FUNDS

ON THE BASIS OF INVESTMENT OBJECTIVE : 1. Equity Funds: These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show unstable performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower instability. At the same time, such funds can
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return great capital appreciation as, historically, equities have outperformed all asset classes in the long term. It can be further classified as: i)Index Funds- In this case a key stock market index, like BSE Sensex or Nifty is followed. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weightages. ii)Equity Diversified Funds- 100% of the capital is invested in equities spreading across different sectors and stocks. iii)Dividend Yield Funds- It is similar to the equity diversified funds except that they invest in companies offering high dividend. iv)Thematic Funds- Invest 100% of the assets in sectors which are related through some subject. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v)Sector Funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi)ELSS- Equity Linked Saving Scheme provides tax benefit to the investors. 2. Balanced Fund:Here investment portfolio includes both debt and equity. As a result, on the risk-return hierarchy, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes: i)Debt-Oriented Funds -Investment below 65% in equities. ii)Equity-Oriented Funds -Invest at least 65% in equities, remaining in debt. 3. Debt Fund: The investment is only in debt instruments and are a good option for the investors who do not want to take the risk associated with equities. Therefore, they invest
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totally in fixed-income instruments like bonds, debentures, Government of India securities and money market instruments such as Certificates of Deposit (CD), Commercial Paper (CP) and Call Money. They Put your money into any of these debt funds depending on your investment horizon and needs. i)Liquid Funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii)Gilt Funds ST- 100% investment of their portfolio in government securities of and Tbills. iii)Floating Rate Funds - Investment in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. iv)Arbitrage Fund- They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. v)Gilt Funds LT - They invest 100% of their portfolio in long-term government securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii)MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities. viii)FMPs- Fixed Monthly Plans invest in debt papers whose maturity is in line with that of the fund.

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 INVESTMENT STRATEGIES :
1. Systematic Investment Plan: Under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA). 2. Systematic Transfer Plan: Under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.

RISK V/S RETURNS

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CHAPTER 4 4.1WORKING OF MUTUAL FUND A) Guidelines of SEBI : To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. SEBI approved Asset Management Company (AMC) manages the funds by making investments in various types of securities. Custodian, registered with SEBI, holds the securities of various schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of Trustee Company or board of trustees must be independent. The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds that the mutual funds function within the strict regulatory framework. Its objective is to increase public awareness of the mutual fund industry. AMFI also is engaged in upgrading professional standards and in promoting best industry practices in diverse areas such as valuation, disclosure, transparency etc. Documents Required (PAN mandatory) : Proof of Identity: 1. Photo PAN Card 2. In case of non-photo PAN card in addition to copy of PAN card any one of the following: driving license/passport copy/ voter id/ bank photo pass book.
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Proof of address (any of the following): Latest Telephone Bill, Latest Electricity Bill, Passport, Latest Bank Passbook/Bank Account Statement, Latest Demat Account Statement, Voter ID, Driving License, Ration Card, Rent Agreement. B) OFFER DOCUMENT: An offer document is issued when the AMCs make New Fund Offer(NFO). Its advisable to every investor to ask for the offer document and read it before investing. An offer document consists of the following : Standard Offer Document for Mutual Funds (SEBI Format) Summary Information Glossary of Defined Terms Risk Disclosures Legal and Regulatory Compliance Expenses Condensed Financial Information of Schemes Constitution of the Mutual Fund Investment Objectives and Policies Management of the Fund Offer Related Information. Key Information Memorandum: A Key Information Memorandum, popularly known as KIM, is attached along with the mutual fund form. And thus every investor get to read it. Its contents are: 1 Name of the fund.
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2. Investments Objective 3. Asset Allocation Pattern of the Scheme. 4. Risk Profile of the scheme 5. Plans & Options 6. Minimum Application Amount/ No. of Units 7. Benchmark Index 8. Dividend Policy 9. Name of the Fund Manager(s) 10 . Expenses of The Scheme: Load Structure, Recurring Expenses 11. Performance of the scheme (Scheme Return v/s. Benchmark Return) 12. Year- Wise Return for the Last 5 Financial Year. C) DISTRIBUTION CHANNELS: Mutual funds posses a very strong distribution channel so that the ultimate customers doesnt face any difficulty in the final procurement. The various parties involved in distribution of mutual funds are: 1. Direct Marketing by the AMCs: The forms could be obtained from the AMCs directly. The investors can approach to the AMCs for the forms. some of the top AMCs of India are; Reliance,Birla Sunlife, Tata, SBI magnum, Kotak Mahindra, HDFC, Sundaram, ICICI, Mirae Assets, CanaraRobeco, Lotus India, LIC, UTI etc. whereas foreign AMCs include: Standard Chartered, Franklin Templeton, Fidelity, JP Morgan, HSBC, DSP Merill Lynch etc.

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2.Broker/ Sub Broker Arrangements: The AMCs can simultaneously go for broker/sub-broker to popularize their funds. AMCs can enjoy the advantage of large network of these brokers and sub brokers.eg: SBI being the top financial intermediary of India has the greatest network. So the AMCs dealing through SBI has access to most of the investors. 3. Individual Agents, Banks, NBFC: Investors can procure the funds through

individual agents, independent brokers, banks and several non- banking financial corporations too, whichever he finds convenient for him. D) PERFORMANCE MEASURES: 1. Equity funds: The performance of equity funds can be measured on the basis of: NAV Growth, Total Return; Total Return with Reinvestment at NAV, Annualized Returns and Distributions, Computing Total Return (Per Share Income and Expenses, Per Share Capital Changes, Ratios, Shares Outstanding), the Expense Ratio, Portfolio Turnover Rate, Fund Size, Transaction Costs, Cash Flow, Leverage. 2. Debt Fund: likewise the performance of debt funds can be measured on the basis of: Peer Group Comparisons, The Income Ratio, Industry Exposures and Concentrations, NPAs, besides NAV Growth, Total Return and Expense Ratio 3. Liquid Funds: the performance of the highly volatile liquid funds can be measured on the basis of: Fund Yield, besides NAV Growth, Total Return and Expense Ratio. To measure the funds performance, the comparisons are usually done with: i) A Market Index. ii) Funds From The Same Peer Group.
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CHAPTER 5 5.1 SBI MUTUAL FUND

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 bank and SocieteGenerale Asset Management (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 investment for millions of investors. The trust reposed on us by over 4.6 million investors is a genuine tribute to 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. Growth through innovation and stable investment policies is the principle of SBI MF.

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5.2 PRODUCTS OF SBI MUTUAL FUND 1. Equity Schemes : The primary objective of the equity asset class is to provide capital growth / appreciation by investing in the equity and equity related instruments of companies over medium to long term. EQUITY/ GROWTH FUNDS :

SBI Magnum Multicap Fund SBI Magnum Equity Fund SBI Magnum Multiplier Plus 1993 SBI Blue Chip Fund SBI Magnum Global Fund SBI Magnum Midcap Fund

SECTORAL FUNDS :

SBI Magnum Sector Funds Umbrella - Emerging Businesses Fund SBI Magnum Sector Funds Umbrella - Contra Fund SBI Magnum Sector Funds Umbrella - FMCG Fund SBI Magnum Sector Funds Umbrella - IT Fund SBI Magnum Sector Funds Umbrella - Pharma Fund

THEMATIC FUNDS :

SBI Magnum COMMA Fund SBI Infrastructure Fund - Series I SBI PSU Fund
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ELSS FUNDS :

SBI Tax Advantage Fund - Series I SBI Tax Advantage Fund - Series II SBI Magnum Taxgain Scheme 1993

INDEX FUNDS :

SBI Magnum Index Fund

MARKET NEUTRAL STRATEGY :

SBI Arbitrage Opportunities Fund

2. Debt Schemes : The schemes in this asset class generally invest in fixed income securities such as bonds, corporate debentures, government securities (gilts), money market instruments, etc. and provide regular and steady income to investors. SBI Magnum Children's Benefit Plan SBI Magnum Income Plus Fund - Saving Plan SBI Magnum Income Fund Floating Rate Plan - Savings Plus Bond Plan SBI Magnum Income Fund Floating Rate Plan - Long Term SBI Magnum Income Fund SBI Dynamic Bond Fund SBI Magnum Gilt Fund - Short Term Plan SBI Magnum Gilt Fund - Long Term Plan SBI Short Horizon Debt Fund - Short Term Fund
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 SBI Short Horizon Debt Fund - Ultra Short Term Fund

3. Balanced Schemes : Magnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less risky than equity funds, but at the same time provide commensurately lower returns. 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. For eg.Magnum Balanced Fund.

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5.3PERFORMANCE & RATE OF RETURN OF SBI MUTUAL FUND

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CHAPTER 6 6.1DATA ANALYSIS & INTERPRETATION OF DATA

55

75

33

74

56

44

1. Investors invested in SBI MF v/s Other AMCs : Interpretation:

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2.Reason for Invested in SBI Mutual Fund :

Interpretation: Most of the investors of SBI MF, Out of 10 people, 60% have invested because of its association with Brand SBI, 30% invested on Agents Advice, 10% invested because of better return.

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3 Preference of Investors for future investment in Mutual Fund :

Interpretation: Out of 10 investors, 20% prefer to invest in Reliance & SBI MF, 1% in ICICI Prudential,1% in Kotak, 3% in UTI and 1% in HDFC Mutual Fund. 1. Channel Preferred by Investors :
Channel Financial Advisor Bank AMC No. of Respondents 4 3.5 2.5

Interpretation :Out of 10, 4 preferred Financial Advisor, 3 preferred Bank, 2 preferred Asset management Company and 1 preferred for both Bank & AMC.

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CHAPTER 7 7.1 CONCLUSIONS CONCLUSION: Mutual fund has a very bright future. Most of the people want to invest on this but due to insufficient knowledge in this field they dont want to invest money. Mutual funds are suitable for genuine investors as the investors are depending on the objective, expectation and risk taking ability etc., it is good channel investing and turning it into an investment opportunity as well as for availing tax relief. There is no doubt that the determinant for investing in mutual fund is the NAV factor. Mutual fund have to focus more on proper pricing better investor servicing as well as offer handsome returns. Mutual fund have to understand the psychology of investors.

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CHAPTER 8 RECOMMENDATION

1. More awareness is required regarding the differences in various schemes. 2. Before investing investor should be aware on the benefits of the various plans and schemes of the mutual fund. 3. Investor should know about the risk factor. 4. Insider trading should be prohibited. 5. Promote distributers for the expansion of the industry. 6. Less government involvement as far as management is concern. 7. The news letters published helps investors. Hence newsletters bulletins can be published for guidance. 8. Schemes to be made more investor friendly. 9. A regular investor friendly seminar must be organized to make an interactive session in between the customers and the companies. 10. Efforts should be taken to make the mutual funds more popular through appropriate Publicity measures.

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CHAPTER 9 BIBLIOGRAPHY

TEXTS & PRINTED MATERIALS : Pathak Bharati V., Indian Financial System Pearson Education Publishing, New Delhi Mutual Funds in India by H. Sadhak How Mutual Funds Work- by Fredman and Wiles Economic Times (Newspaper)

WEBSITES & PORTALS :

1. http://www.sebi.com 2. http://www.mutualfundsindia.com 3. http://www.sbimf.com/AboutUs/Corporate_Profile.aspx (Company profile) 4. http://en.wikipedia.org/wiki/Mutual_Funds (Mutual funds - History) 5. http://www.sbimf.com/Products.aspx (SBI Mutual Funds - Schemes & Products ) 6. http://www.amundi.com/static/catalogueinteractif/asset3/en/appli.htm (Mutual Funds - Catalog)

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