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 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.
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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 reregistering all mutual funds except UTI. The regulations were further given a revised shape in 1996. 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.
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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 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
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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 firstquarter 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 first half have revived hopes of a 9-per-cent-or-thereabouts growth for the whole financial year higher than the governments estimate of 8.5 per cent. We may be confident that at the end of this year, GDP growth will not be less than 8.78.75 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).
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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 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. 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.
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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 Setup Date Incorporation Date Sponsor Trustee Chairman CEO / MD CIO Compliance Officer Investor Service Officer Assets Managed Other Details Auditors Custodians Haribhakti & Co / M/S. Chandabhoy & Jassoobhoy Bank of Nova Scotia / Citi Bank / HDFC Bank / Stock Holding Corporation of India Computer Age Management Services Pvt. Ltd, Computronics Registrars Financial Services (I) Ltd, Datamatics Financial Software Services Ltd Address Telephone Nos. Fax Nos. E-mail 191 Maker Tower E, Cuffe Parade, Mumbai - 400005. 022 - 22180221-27 022 22189663 partnerforlife@sbimf.com SBI Mutual Fund Jun-29-1987 Feb-07-1992 State Bank of India SBI Mutual Fund Trustee Company Private Limited Mr. Pratip Chaudhri Mr. Deepak Kumar Chatterjee Mr. Navneet Munot Ms. Vinaya Datar Mr. C A Santosh Rs. 41551.51 crore (Dec-31-2011)
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 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 The mutual fund industry in India started in 1963 with the formation of Unit Trust of 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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CORPORATE PROFILE 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 The mutual fund industry in India started in 1963 with the formation of Unit Trust of 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 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 SBI ONE India Fund SBI TAX ADVANTAGE FUND SERIES I 2. Debt fund
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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 o
Magnum Gilt Fund (Long Term) Magnum Gilt Fund (Short Term)
Magnum Income Fund Magnum Income Plus Fund

o o
Magnum Income Plus Fund (Saving Plan) Magnum Income Plus Fund (Investment Plan)
SBI Debt Fund Series

o o o o o o
SDFS 15 Months Fund SDFS 90 Days Fund SDFS 13 Months Fund SDFS 18 Months Fund SDFS 24 Months Fund SDFS 30 DAYS
SDFS 370 days SDFS 60 Days Fund SDFS 180 Days Fund 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 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: partnerforlife@sbimf.com Website: www.sbimf.com
BOARD OF DIRECTORS - AMC Mr. Pratip Chaudhuri Mr. Deepak Kumar Chatterjee Mrs. Madhu Dubhashi Mr. Jean-Paul Mazoyer Mr. Shyamal Acharya Mr. Thierry Raymond Mequillet Mr. Jayesh Gandhi Dr. H. Sadhak Dr. H. K. Pradhan Mr. Philippe Batchevitch
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Chairman & Associate Director Managing Director Independent Director Associate Director Associate Director Associate Director Independent Director Independent Director Independent Director Alternate Director to Mr. Mazoyer
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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 LIC Mutual Fund ING Vysya Mutual Fund HSBC Mutual Fund Tata Mutual Fund Sahara Mutual Fund Principal Franklin Templeton
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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 M u t u a l F u n d s i n I n d i a ( A M F I ) , t h e R e l i a n c e M u t u a l F u n d , w i t h a J a n u a r y - e n d A U M o f R s 39,020 crore has become the largest mutual fund in India O n t h e o t h e r h a n d , U T I M F , w i t h a n A U M o f R s 3 7 , 5 3 5 c r o r e , h a s g o n e t o s e c o n d 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. T h e second-largest fund house HDFC MF gaine d Rs 59.24 billion in its A U M a t R s 6 3 8 . 8 0 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. T h e o t h e r f u n d h o u s e s w h i c h s a w a n i n c r e a s e i n t h e i r a v e r a g e A U M i n A p r i l i n c l u d e -Canara Robeco MF, IDFC MF, DSP Blackrock, Deutsche MF, Kotak Mahindra MF and LIC MF.
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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 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 2011 Awards 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 2009 2008 ICRA mutual fund award ICRA mutual fund award Lipper award the Indian mutual fund awards Outlook money NDTV profit award Outlook money NDTV profit award
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ICRA mutual fund award 2007 Outlook money NDTV profit award CNBC awaaz consumer award Lipper award the Indian mutual fund awards ICRA mutual fund award 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 ICRA mutual fund award 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 20052006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award WORK FLOW MODEL
Passed back to
Investor
Pools money with
Returns
Fund house
Generates
Securities based on financial goal
Fund managers invest in
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. 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 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.
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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:
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.
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SHARED VALUES: The values and beliefs of the company. Ultimately they guide employees towards valued behavior. STAFF: the Companys people resources and how they are developed, trained and motivated. STYLE: The leadership approach of top management and the companys overall operating approach. 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 (Mr.Navneet Munot)
chief operating officer (Mr. R.S. SrinivasJain)
(Mr.K.T.Ravindran)
Risk management team (Ms.Aparnanirgude)
National sales head (Ms. Vinaya Datar)
Chief customer services (Mr.C.A.Santosh)
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Fund management team (Mr.Dharmendra Grover)
Regional manager (Mr.Vishal Saraf)
Chief risk executive (Mr. Philippe batchenitch)
Investment research team (Mr.sohini Andani) 3. SKILLS:
Relationship manager & channel head (G. Kandasubramanian)
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
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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 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. Coms, MBAs, ICWAs, CAs and CFAs great opportunity for freshers 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 companys 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 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 multibrand 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 cant 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 Indias 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 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.
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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
Schedule s
Rs
As at 31.3.2011 Rs
Rs
As at 31.3.2010 Rs
Source of funds Shareholders funds Capital Reserves and surplus Total Application of funds Fixed assets Gross block Less: depreciation Net block Capital progress work in 4 tax loan 5 111,594,460 167,913,529
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1 2
500,000,000 2,275,791,68 8 2,775,791,68 8
500,000,000 1,824,554,40 2 2,324,554,40 2
3 177,056,599 124,447,461 52,609,138 6,786,254 1,772,969,40 0 17,670,855 151,994,567 103,764,634 48,229,933 5,517,305 371,464,385 4,822,541
Investments Deferred asset(net) Current assets, and advance Sundry debtors

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Cash and bank 6 balance Other current assets 7 Loans & advance 8
1,100,014,98 4 39,081,263 318,013,328 1,568,704,03 5
2,046,273,249 47,651,436 180,964,971 2,442,803,185
Less :current liabilities and provisions Current liabilities 9 Provisions Net current assets Total 10
283,739,463 359,208,531 642,947,994 925,756,041 2,775,791,68 8
215,407,017 332,875,930 548,282,947 1,894,520,23 8 2,324,554,40 2
PROFIT AND LOSS ACCOUNT FOR THE YEAR ENDED MARCH 31, 2011 Schedul Rs For the year Rs es ended 31.3.2011 Rs Income Management fees 2,206,646,200 (gross)[tax deducted at source Rs.243,393,103 (previous year Rs.213,099,174)] Portfolio advisory 160,936,141 fee [tax deducted at source Rs.18,059 (previous yearRs.36,298)] Portfolio 30,022,891 Management Fee [ Tax deducted at source Rs.632,588 (Previous year Rs.1,271,077] Income from 11 21,678,304 investments
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For the year ended 31.3.2010 Rs 1,815,674,733
130,489,018
21,964,880
17,948,403
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Other income EXPENDITURE:
12
133,138,577 2,552,422,113
171,328,916 2,157,405,950
Employee Costs 13 Administrative and 14 Other Expenses Depreciation Fixed Assets on
678,305,452 680,632,431 24,436,883 1,383,374,766 1,169,047,347 (393,420,000) 12,848,314 (386,700,000) 2,639,864 2,193,433
464,355,867 532,397,781 22,196,076 1,018,949,724 1,138,456,226
Profit before tax Provision for taxes: Current Tax Deferred Tax ( refer note 5) Fringe Benefit Tax Excess Provision for Tax in respect of previous years written back Excess Provision for FBT in respect of previous years written back
2,147,720 (380,571,686) (379,718,983) 758,737,243 1,031,414,598
Profit after tax Balance brought forward from previous year Profit available for appropriation APPROPRIATION S Transfer to General Reserve Interim Dividend Proposed Equity Dividend Tax on Proposed Equity Dividend
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788,475,661 1,429,363,841
2,217,839,502
1,790,151,841
78,847,566 290,000,000 48,165,375
80,000,000 240,000,000 -
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Excess provision for Dividend Distribution Tax of PY written Back Surplus carried to Balance Sheet Basic and diluted earnings per share (Face Value per Share Rs. 100/-) Interpretation: Particular
(927,000) 1,801,753,561 2,217,839,502 157.70
40,788,000 1,429,363,841 1,790,151,841 151.75
31.3.2011
31.3.2010
Net present value (NPV ) Return on net worth (RONW) Return on capital employee (ROCE) Current ratio (CR) Fixed assets (FA) Earnings per share (EPS) Dividend per share ( DPS)
38.223 41.088 51.326 3.382 2.437 157.70 40
35.168 32.640 47.979 1.289 2.235 151.75 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 bySocit Gnrale Asset Management have been transferred to AMUNDI India
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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. 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 McKenzies 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.
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GENERAL INTRODUCTION
RESEARCH METHODOLOGY:
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 investors 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 Type of research used Descriptive research/Diagnostic Research under that cross sectional research Research approach Research instrument Source Literature Survey Questionnaire Website of: mutualfundindia.com, www. money control.com www.SBImf.com Sample Size Sampling Technique 100 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.
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2. Literature survey: It most of the cases exploration phase begin with Literature searchReview of books 3. Source: This from websites like Mutualfundindia.com, www. Money control.com Collection of data: 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 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 studying
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 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 Pools 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
The above diagram gives an idea on the structure of an Indian mutual fund.
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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 doesnt 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 cant 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. Transfer Agents: Transfer Agent Company interfaces with the customers, issue a funds 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. 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.
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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 managers 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 ones own decisions No guarantee that the professional managers will provide anticipated results 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 funds 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: Short Term Plans (STPs): Liquid Funds: Balanced Fund
3. BASED ON INVESTMENT OBJECTIVE Growth Schemes Income Schemes Balanced Schemes: Money Market Schemes
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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. 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 companys permanent capital base, that is , the capital that is returned to the shareholders only after the companys 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 companys 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. 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 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").
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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. DATA ANALYSIS AND INTERPRETATION Comparative Analysis of return for selected Mutual funds with Nifty Index:
N 1 wk 4 0.7 1 0.9 1 2.0 1 0.2 1 2.0 1 1 mth 0 3.4 0 3.8 2 3.8 0 2 2.9 3 6mth 9 6.2 8 8.8 1 6.7 8 6.9 8 11.7 6 1yr 6 3.9 8 1.9 1 9.7 6 5.7 1 5.5 1 2yr 1 6.6 1 9 32.2 5 20.8 5 21.9 2 3yr 2 64.8 3 52.1 2 135.8 2 46.6 5 5yr y 1 9.6 5 1 64.5 4 -
Equity Diversified SBI Magnum Emerging Busi (G) Mirae India-China Consumption (G) Birla SL Intl. Equity - A (G) HDFC Midcap Opportunities (G) Franklin Asian Equity Fund (G)
Asset (Rs. cr.) 506.89 16.00 68.70 1,860.28 186.92
NAV
3 mth 3 9.1 3 8.7 3 14.5 8.5 2 8.2
5 6 -
47.01 1.42 1.24 6.45 2.11
Analysis of index Index I A Assets Nav N 1w k 1mth 1 3mth 3 6mth 6 1yr 1 2yr 2 3yr 3 5yr 5
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S&p cnx nifty
S -
-1.66
14.52
1 7.13
7 8.50
17.90
1 75.8 0
5 54.80
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 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.
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QUESTIONNAIRE 1. Table showing the Age group of respondents in SBI mutual funds Age Group Male 25-35 36-45 46-55 80 14 1 No of Respondents Female 5 Total 85 14 1
90 80 70 60 50 40 30 20 10 0 Male Female No of Respondents Total
25-35 36-45 46-55
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 No of respondents Male Female 50 11 34 4 1
Options
Total
a b c
a Graduation/pg b Under graduate c Others
54 12 34
60 50 40 30 20 10 0 Graduation/pg Under graduate Others
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.
b. Table showing the occupation Groups of respondents in SBI mutual funds Options No of respondents Male Female 9 32 24 20 10 1 3 1
Total
a b c d e
A Government servant B Private servant C Business Man d Agriculture e Others
10 35 25 20 10
40 30 20 10 0 Government servant Private servant Business Man Agriculture Others
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 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 male female 70 25 3 2
Total
a b
a yes b No
73 27
80 70 60 50 40 30 20 10 0 yes No
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?
Options
No of Total respondents male female 70 25 3 2 73 27
a b
a yes b No
80 70 60 50 40 30 20 10 0 Options yes No
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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.
a b c d
Options a pension funds b Gold c equity stock d Bonds
No of respondents 18 37 13 32
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40 35 30 25 20 15 10 5 0 pension funds Gold equity stock Bonds
Interpretation: According to the survey the conducted maximum number of responds respondents are investment instruments of i.e. 18%
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?
Options
No of respondents total
Male a a Equity schemes b 36
female 39 3
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b c d e f
Debt/income schemes c liquid schemes d Hybrid schemes e fixed maturity plan f exchange traded fund
7 3
8 3 3
3 26 25 21 1 21
50 40 30 20 10 0
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.
5. what kind of investment in mutual fund you have made so far ?please tick No of respondents Options a All applicable Male Female To tal
33
38
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b Debt/income schemes c liquid schemes d Hybrid schemes e fixed maturity plan f exchange traded fund
11
11 7
c d
7 8 8
e f
14 19
14 19
40 30 20 10 0
Interpretation: According to the survey the conducted maximum number of responds i.e. 33%
respondents are male investment in mutual fund and 5% female through all applicable, 11% respondents are male investment in mutual fund through debt/income, 7% male respondents are investment in mutual fund through liquid schemes, 8%male hybrid schemes, 14% male
respondents are investment in
mutual fund
through
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 a Liquidity
No of respondents 12
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b c d
b Low risk c high return d hedge against inflation
26 41 21
50 40 30 20 10 0 liquidity Low risk high return hedge against inflation
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 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?
Options a
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No of respondents
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a b c d
liquidity b Low risk c high return d hedge against inflation
12 25 42 21
45 40 35 30 25 20 15 10 5 0 liquidity Low risk high return hedge against inflation
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
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Options a b c d e a Highly favorable b Favorable c Somewhat favorable d Not very favorable e Not at all favorable
No of respondents 37 18 35 9 1
40 35 30 25 20 15 10 5 0 Highly favorable Favorable Somewhat favorable Not very favorable Not at all favorable
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)

a b c d e f
Options a Safety b Liquidity c Flexibility d Good return e tax benefit f diversification benefit
No of respondents 10 23 19 19 16 13
25 20 15 10 5 0 Safety Liquidity Flexibility Good return tax benefit diversification benefit
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
Importa nt
Some Not very what Important Important
Not at all important
fund Performance record 75 Reputation brand name Portfolio investment Withdrawal facilities Tax benefit Entry & Exit load or 47 of 62
17
45
33
27 68 51
46 26 36 29
21 6 7 10
5 2 2 1
Minimum Initial Investment 59
80 70 60 50 40 30 20 10 0
Highly Important Important Important Some what Important Some what Important Not very Important Not very Important Not 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 A Yes B No
No of respondents Male Female 95 3 2
Total
a b
98 2
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120 100 80 60 40 20 0 Options Yes No
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?
a b c
Options a Daily b Weekly c Twice in a month
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d e
d Monthly e More than a month
33 42
45 40 35 30 25 20 15 10 5 0 Twice in a month Monthly More than a month
Interpretation: According to survey the maximum respondents 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 .
13. While investing you are more concerned about
a b
Options a Safety of principal b Earning interest above the inflation rate
No of respondents 25 39
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c Earning high return
36
45 40 35 30 25 20 15 10 5 0 Safety of principal Earning interest above the inflation rate Earning high return
Interpretation: According to survey the maximum respondents 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.
14. Approach in making investment
Options a You take educated view on the investment b
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b c
You take friendly advice and make decision c You rely totally on your investment advisors
27 44
50 45 40 35 30 25 20 15 10 5 0 You take educated view on the investment You take friendly advice and make decision You rely totally on your investment advisors
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.
15. If you have invested in equity shares , what is your expected return
Options a
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No of respondents
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a b c d
10-15 % b 15-25 % c 25-35 % d 35-above %
43 25 21 11
50 45 40 35 30 25 20 15 10 5 0 10-15 % 15-25 % 25-35 % 35-above %
Interpretation: 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.
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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. 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.
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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.
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.
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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. 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. 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.
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ANNEXURE: QUESTIONNAIRE 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 [
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] ]
] ]
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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. 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 Highly Favorable Some what Not very Not at all favorable favorable favorable favorable
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 investment Schemes please indicate importance of following in your decision. Highly Important Some what Important Important I. Fund related Qualities fund Performance record Reputation or brand name Portfolio of investment Withdrawal facilities Tax benefit Entry & Exit load Minimum 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
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Not very Important
Not at all important
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a. Safety of principal [ ] b. Earning interest above the inflation rate [ c. Earning high return [ ] 15. Approach in making investment 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 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 Kothari
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Kartheek Final Report Sbi Mutual Fund

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Kartheek Final Report Sbi Mutual Fund

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

Launching a wide range of innovative products

Magnum Children`s Benefit Plan Magnum Gilt Fund

Magnum Income Fund Magnum Income Plus Fund

SBI Debt Fund Series

Mr. Shishir Joshipura

COMPETITORS OF SBI MUTUAL FUND

Pools money with

Securities based on financial goal

Fund managers invest in

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

SBI MUTUAL FUND ORGANISATION STRUCTURE MD (Mr. Deepak Kumar Chatterjee)

Chief investment officer

chief marketing officer (Mr.Navneet Munot)

chief operating officer (Mr. R.S. SrinivasJain)

Risk management team (Ms.Aparnanirgude)

National sales head (Ms. Vinaya Datar)

Chief customer services (Mr.C.A.Santosh)

Fund management team (Mr.Dharmendra Grover)

Regional manager (Mr.Vishal Saraf)

Chief risk executive (Mr. Philippe batchenitch)

Investment research team (Mr.sohini Andani) 3. SKILLS:

Relationship manager & channel head (G. Kandasubramanian)

Increasing in liberalization of government policies. In mutual fund industry

500,000,000 2,275,791,68 8 2,775,791,68 8

500,000,000 1,824,554,40 2 2,324,554,40 2

Investments Deferred asset(net) Current assets, and advance Sundry debtors

1,100,014,98 4 39,081,263 318,013,328 1,568,704,03 5

2,046,273,249 47,651,436 180,964,971 2,442,803,185

283,739,463 359,208,531 642,947,994 925,756,041 2,775,791,68 8

215,407,017 332,875,930 548,282,947 1,894,520,23 8 2,324,554,40 2

For the year ended 31.3.2010 Rs 1,815,674,733

Other income EXPENDITURE:

Employee Costs 13 Administrative and 14 Other Expenses Depreciation Fixed Assets on

464,355,867 532,397,781 22,196,076 1,018,949,724 1,138,456,226

2,147,720 (380,571,686) (379,718,983) 758,737,243 1,031,414,598

78,847,566 290,000,000 48,165,375

(927,000) 1,801,753,561 2,217,839,502 157.70

40,788,000 1,429,363,841 1,790,151,841 151.75

38.223 41.088 51.326 3.382 2.437 157.70 40

35.168 32.640 47.979 1.289 2.235 151.75 48

SCOPE OF THE STUDY

GENERAL INTRODUCTION: THEORETICAL BACKGROUND THEORETICAL ASPECTS

Tax Saving Schemes Index Schemes Sector Specific Schemes

Asset (Rs. cr.) 506.89 16.00 68.70 1,860.28 186.92

3 mth 3 9.1 3 8.7 3 14.5 8.5 2 8.2

47.01 1.42 1.24 6.45 2.11

S&p cnx nifty

90 80 70 60 50 40 30 20 10 0 Male Female No of Respondents Total

25-35 36-45 46-55

a Graduation/pg b Under graduate c Others

60 50 40 30 20 10 0 Graduation/pg Under graduate Others

A Government servant B Private servant C Business Man d Agriculture e Others

40 30 20 10 0 Government servant Private servant Business Man Agriculture Others

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

No of respondents male female 70 25 3 2

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

No of Total respondents male female 70 25 3 2 73 27

Options a pension funds b Gold c equity stock d Bonds

40 35 30 25 20 15 10 5 0 pension funds Gold equity stock Bonds

pension funds, 37% respondents are

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

Male a a Equity schemes b 36

respondents are investment in