ABSTRACT

A STUDY ON PERFORMANCE EVALUATION OF SELECTED EQUITY FUNDS AT SBI MUTUAL FUNDS, TIRUPATI. Under the guidance of P.Balaji Prasad Student Name Hari prasad

INTRODUCTION
Mutual fund is a common pool of money in which investor place their contribution that is to be invested in accordance with the stated objective. The fund belongs to all the investors depending on the proportion of his contribution to the fund.

INDUSTRY PROFILE
In India, mutual fund industry incorporated by UTI in 1963. The Indian mutual fund industry dominated by UTI which has a total corpus of Rs.700bn collected from more than 20 million investors. A second largest category of mutual fund is the once floated by a private sector and by foreign asset management companies.

COMPANY PROFILE
SBI funds management private limited is an asset management company, a joint venture between SBI, the countrys largest bank and society general asset management (FRANCE) one of worlds leading fund management companies. With over 25 years of rich experience in fund management, SBI fund management private limited in one of the largest investment firms in India. Managing investment mandates of over 46 lakes investors with a network of over 130 points of acceptance spread across India.

RESEARCH METHODOLOGY NEED FOR THE STUDY

This study is need to the investors to take decisions relating to investments in mutual funds.

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A Study on Selected Equity Funds at SBI Mutual Funds

2012

The present study is intended to portray the prescription and proscription of different investment strategies to be adopted by SBI Mutual Funds so that it can, while providing better growth and income to investors emerge as a giant Mutual Funds among all the Mutual Funds in India.

SCOPE OF THE STUDY

The study is basically made to analyze the various SBI fund schemes to highlight the diversity of investment. The study covers the basic meaning, concept, structure and the organization of the SBI mutual funds. The study is restricted to explain only the equity returns provided by the SBI mutual funds against benchmark BSE 100 from various schemes

OBJECTIVES
To measure and evaluate the performance of selected equity funds. To suggest the investors to select appropriate equity fund among the selected equity funds. DATA COLLECTION: My study consists of secondary data: Collected from the websites related to mutual funds, books, and brochures. RESEARCH TYPE: My study is based on Exploratory Research ANALYSIS TOOLS: Beta, Standard Deviation, Trey nor, Sharpe Measures. LIMITATIONS: The study is confined to SBI mutual funds only. There are 15 diversified equity funds are there but for this I had analyzed only 7 equity funds. The scope of the study is limited to growth, performance and investment strategies of SBI Mutual Funds leaving the vital areas like marketing of SBI Mutual Fund investors protection, etc

The time is limited for 2 months (May-June).

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A Study on Selected Equity Funds at SBI Mutual Funds

2012

FINDINGS:

The magnum equity fund has highest return of 12.42%, with a risk of 49.70%, and magnum multi cap fund has a low return of 6.57% with a low risk of 46.85%. Magnum mid cap fund has highest risk of 65.29% with a return of 11.52% and magnum tax gain scheme has a low risk of 46.56% with a return of 9.71%. The beta values of magnum midcap and magnum comma fund are 1.061 and 1.024 it represent that these two funds are highly volatile than its bench mark index. Magnum equity fund has less volatile than its benchmark index. The performance of MSFU Contra fund and Midcap fund are closely matches its benchmark. In performance, Magnum equity fund stands first with a Sharpe ratio of 0.089, trey nor ratio 5.226 and Jensens measure of 8.408. The magnum midcap fund stands last with neither a Sharpes ratio of -0.030, trey nor ratio of 1.339, Jensens measure of 2.580.

SUGGESTIONS:

The investors who are risk takers, it is better to invest in magnum equity fund because of outstanding performance over all other selected equity funds. The investors who are risk averse, it is better to invest magnum tax gain scheme because it gives moderate returns with minimum risk. When the market is bullish it is better to invest in magnum midcap fund and when the market is bearish it is better to invest in magnum tax gain scheme fund. Magnum contra fund is also better option in regarding with systematic risk of (0.984) that means the performance of magnum contra fund closely matches its benchmark index.

CONCLUSION:
The volatility in the market might have affected the ratio but definitely not the performance of the schemes. The schemes have been the one of the best schemes of SBI MUTUAL FUNDS. Magnum equity fund gives highest returns of 12.42% with a low risk of 49.70% and the fund gives high excess return per unit of risk. So it is better to invest in magnum equity fund.

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