INDEX

1] Introduction

2] Objective

3] Introduction of the Mutual Fund

4] Systematic Investment Plan

5] Data Analysis

6] Types

7] Scope and Limitations

8] Findings

9] Suggestions

10] Conclusion
 CUSTOMER AWARENESS

Customer awareness is important for the success of any

product. As customer can demand any product when they
would be known about the product.

Customer awareness can be created by the personal contact

with customers, by advertisement, by making product
success clear to customer.

For creating customer awareness in the term of

Mutual fund systematic investment plan, the plan should
be completely known to customers as well as plan’s
term and conditions should be compared to other
competitive plan and then customer should be made
aware that how the plan is beneficial to them.
 RESEARCH MATHODOLOGY

Research means to search for new facts or to modify older ones

in any branch of knowledge. Research is a systematic activity
directed towards discovery & the development of an organized
body of knowledge.

Type of Research:

 Experimental Research
 Survey Research

EXPERIMENTAL RESEARCH:

This is based on experiments conducted in a laboratory.

Research in terms of laboratory experiment in physics; biology etc.
is example of experimental research.

SERVEY RESEARCH:

It is on of most popular methods of investigation because a

study of the attributes & variables in relation to the population is
easier & is more accurate. It suffers from a magnitude of error.
LIBRARY RESERCH:

This is type of research, which is based on the books

periodicals, journals and documents, secondary data that are
available in the library. Two types of data are used in the project
report.

PRIMARY DATA:

Primary data are those statistical data, which are collected

first time &are original in nature. A researcher of this group
collects primary data Different primary data were collected for
this project this were available with the help of interview &
questionnaire.

SECONDARY DATA:

Secondary data are stored data, which are collected and

published by one organization & subsequently treated utilized by
the organization other then authorities who required then
subsequently for their use and treatment.

Important aspects considered for survey are:

 Area to be surveyed
 Who are to be surveyed
 Procedure of surveyed
 For the study, I used survey research
MARKET RESEARCH:

Market research is a systematic & objective search for and

analysis information relevant to the identification & solution of
any problem in the field of marketing.

NEED OF MARKET SURVEY

The decision making process in market is essentially

similar to that in any other area of human affair, the process can be
broken.
 DATA COLLECTION and ANALYSIS

There are two important source of data collection.

SAMLING PLAN:

This classifies the target population that has to be sampled once

this units determining, a sampling frame must be developed, so
every one in the target opinion has an equal or know chance of
being sampled.

SAMLING SIZE:

I have chosen random 50 people for my survey in Pune city.

SOURCE OF DATA COLLECTION:

For data collection, I have concentrated on primary data though

survey and personal observation visit to bank floor also collected
secondary data.

ANALYSIS

An analytical aspect of data collection will be presented in

suitable diagrammatic representation like table, pie charts, bar
diagrams etc. The sample method used was probability sampling,
under which simple random sampling method was used.
Table:

A table represents the data in a systematic manner. It contains title,

heading, sub-heading and footnotes and these give clear and
accurate information of the special characteristics that are
contained in the data.

Pie Diagram:

Pie Diagrams are very popularly used in practice to show

percentage breakdowns. While making comparisons, pie diagrams
should be used on a percentage basis and not an absolute basis,
since a series of pie diagrams showing absolute figures would
require that larger circle.

Bar or One Dimensional Diagram:

Bar diagram is the most common type of diagram used in practice.

A bar is a thick line whose width is shown merely for attention.
They are called one dimensional because it is only the length of the
bar that matters and not the width. When the number of items is
large, lines may be drawn instead of bars to economies space.

SAMPLE AREA:

Geographical sample area is Pune and nearest area.

 OBJECTIVE

1. To Study for knowledge of people about SIP, Mutual Fund.

2. To Study about how many people invest in Mutual Fund.

3. To Study about to know customers satisfaction level for

Mutual Fund.

4. To Study about rate of return is good according to customers

or not.
 INTRODUCTION OF MUTUAL FUND IN
SBI

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

and has an enviable track record in judicious investments and
consistent wealth creation.

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

enterprise. The institution has grown immensely since its inception
and today it is India's largest bank, patronized by over 80% of the
top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India
and Society General Asset Management, one of the world’s
leading fund management companies that manages over US$
500 Billion worldwide.
SBI Mutual Fund (SBI MF) is one of the largest mutual funds in
the country with an investor base of over 5.8 million. With over 20
years of rich experience in fund management, SBI MF brings
forward its expertise in consistently delivering value to its
investors. SBI MF draws its strength from India's Largest Bank
State Bank of India and Society General Asset Management,
France.
 What is a Mutual Fund?

When you invest in a mutual fund you are not alone. There are
several other like minded investors like you who want their money
to work hander them. But at the same time, want a professional to
do it for them. When you invest in a mutual fund, your money is
collected in a common pool along with the money of other
investors who share a common investment goal like you. The
Mutual Fund Manager then invests this pool of money, also known
as corpus, in securities ranging from shares, debentures to money
market instruments. The income earned through investments by
these is then shared by means of dividend or capital appreciation
by the investors in proportion to the investments made by them.
Income is earned from dividends on stocks and interest on bonds.
A fund pays out nearly all of the income it receives over the year to
fund owners in the form of a distribution. If the fund sells
securities that have increased in price, the fund has capital gain.
Most funds also pass on these gains to investors in a distribution. If
fund holdings increase in price but are not sold by the fund
manager, the fund's shares increase in price. You can then sell your
mutual fund shares for a profit.
 What is Systematic Investment Plan (SIP).

As simple as the word SIP is an investment technique that allows

you to provide for the future by investing small amounts of money
in mutual fund schemes of your choice on a regular basis. It gives
you a lot of flexibility and is very convenient way of building a
large corpus over a period of time. In mutual fund terminology, SIP
allows the investors to invest a fixed amount every month or
quarter for purchasing additional units of the scheme at NAV based
prices.

SIP, an option available on SBI mutual fund schemes (equity,

select debt, and balanced) allows you to invest a pre-specified
amount in a scheme at pre-specified period intervals at the then
prevailing NAV. All you need to do is issue post dated cheques or
avail of our Auto Debit (Easy Pay) facility available in select
centers.

Investment decisions are crucial as they help fulfill our dreams.

Very often, we got through life juggling our dreams; comprising on
some, dropping out some and managing only a few.
But now you can realize your dreams through SBI
Mutual Fund Systematic Investment Plan.

SBI mutual fund presents Systematic Investment Plan (SIP), a

smart financial planning tool that helps you to create wealth, by
investing as little as Rs. 500/- per month, over a period of time. We
have been consistently delivering value to our investors since the
last 20 years, thereby helping them realize their dreams.
Systematic investment Plan is an investment technique that allows
you to provide for the future by investing small amounts of money
in Mutual fund schemes of your choice.

SIP ensures that the investor continues to be invested at an early

stage in life and lets you enjoy the benefits of two powerful
investment strategies: rupee cost averaging and power of
compounding. And with inflation and rising prices, having a long-
term investment horizon will only help you create wealth and
prepare you for tomorrow.
 SIP – how does it operate.

An investor can invest a fixed amount every month for atleast 6

months or more through post dated cheques or through auto debit
facility in select centres. Investors can indicate their choice on their
applicaton form in the box provided for the same. The post dated
cheques should be dated 5th/15th/25th of every month. This will
make it easy for you to keep a track of your regular contributions.
The application along with the post dated cheques can be mailed to
or submitted to any of the Investor Service Centres or Investor
Service Desks.
 List of Cities for SIP Auto Debit Facility:

Agra, Ahmedabad, Allahabad, Amritsar, Aurangabad, Bangalore,

Bardhaman, Baroda, Belgaum, Bhilwara, Bhopal, Bhubaneshwar,
Bijapur, Calicut, Chandigarh, Chennai, Cochin, Coimbatore,
Dehradun, Delhi, Dhanbad, Durgapur, Erode, Gadag, Gorakhpur,
Guwahati, Gwalior, Hubli, Hyderabad, Indore, Jabalpur, Jaipur,
Jalandhar, Jammu, Jamnagar, Jamshedpur, Jodhpur, Kakinada,
Kanpur, Kolhapur, Kolkata, Lucknow, Ludhiana, Madurai,
Mangalore, Mumbai, Mysore, Nagpur, Nasik, Nellore, Panjim,
Patna, Pondicherry, Pune, Raipur, Rajkot, Ranchi, Salem, Shimla,
Sholapur, Siliguri, Surat, Thirupur, Tirupati, Trichur, Trichy,
Trivandrum, Udaipur, Udipi, Varanasi, Vijaywada, Vizag
 List of banks for Direct Debit facility:

1. SBI - All Branches,

2. HDFC Bank - All Branches,

3. Axis Bank - All Branches,

4. Punjab National Bank - Select Branches,

5. Bank of India - Select Branches,

6. Kotak Mahindra Bank - All Branches,

7. IDBI Bank - All Branches,

8. IndusInd Bank - All Branches,

9. Bank of Baroda - Select Branches.

Procedure of SIP:
How you can invest in a mutual fund there are ways in which you
can invest in a mutual fund.

1. A one-time outright payment if you invest directly in the

fund, you just hand over the cheque and you get your fund
units depending on the value of the units on that particular
day.

2. Let's say you want to invest Rs 10,000. All you have to do is

approach the fund and buy units worth Rs 10,000.

3. Periodic investments this is referred to as a SIP. That means

that, every month, you commit to investing, say, Rs 1,000 in
your fund.

4. At the end of a year, you would have invested Rs 12,000 in

your fund. Minimum investment required for starting an SIP
is Rs 500. Liquid funds, cash funds and floating rate debt
funds do not offer an SIP.

5. These are funds that invest in very short-term fixed-return

investments. Floating rate debt funds invest in fixed return
investments where the interest rate moves in tandem with
interest rates in the economy (just like a floating rate home
loan).

6. All types of equity funds (funds that invest in the shares of

companies), debt funds (funds that invest in fixed-return
investments) and balanced funds (funds that invest in both)
 offer a SIP. Tax implications: Let's say you have invested in
the SIP option of a diversified equity fund.

7. If you sell the units after a year of buying, you pay no capital
gains tax. If you sell if before a year, you pay capital gains
tax of 10%. Let's say you invest through a SIP for 12 months:
January to December 2005.

8. Now, in February 2006, you want to sell some units. Will you
be charged capital gains tax? The system of first-in, first-out
applies here. So, the amount you invest in January 2005 and
the units you bought with that money, will be regarded as the
units you sell in February 2006. For tax purposes, the units
that you sell first will be considered as the first units bought.

Benefits of a Systematic Investment Plan

Rupee Cost Averaging –
Capitalize on periodic dips in the stock market and its helps to buy
more units when the markets is down and fewer units when the
market is up, lowering your average unit cost resulting in optimum
returns. The most important advantage offered by an SIP is Rupee
cost averaging. Since share prices change from day to day, so the
set amount of money you invests buys different amount of shares
every time. When prices are high, NAV is high- so you get less.
And when prices are low, NAV is low – so you get more. An
example will clarify this better. Suppose the monthly investment
installment is Rs 500 and the fund’s NAV is Rs 20; this will lead to
25 units of the fund being credited to the investor. However, in the
next month on account of the volatile markets, the fund’s NAV
falls to Rs 20. This will lead to a lowering in the average purchase
cost;

as a result, the investor will have 25 units credited to his account.

In other words, an SIP can help investors benefit from volatility in
equity markets.

Disciplined Investing Approach –

Plan your investment and select a fund and invest small amount
regularly to build a sizable amount

Lack of disciplined investing is one of the major reasons for

investors not achieving their financial goals. For example, often
monies that are kept aside for investment purpose end up getting
used for extraneous purposes. As a result, the investor is even
further divorced from his goals. An SIP ensures that the investor
continues to be invested in a disciplined manner and thereby stays
on course to achieve his financial goals. An SIP imparts discipline
to investing. Whether it is the regular act of saving or investing, an
SIP does both automatically. Overall, an SIP is a simple device that
helps you to save and invest in a disciplined manner without
having to worry about the market Fluctuation .

Investments can be built with a modest amount –

For as little as Rs 500 every month you can start purchasing mutual
fund units.

An often heard excuse for not investing is lack of monies. SIP

takes care of this problem by lowering the minimum investment
amount. For example, while the minimum investment amount for a
lump sum investment in a diversified equity fund could typically
be Rs 5,000, for an SIP it can be as low as Rs 500. As a result,
investing via the SIP route becomes lighter on the wallet.

Benefits of Compounding –
The key to building wealth is to start investing early and to keep
investing regularly. This helps in creating a substantial amount of
wealth which includes your own contribution plus returns
compounded over the years.

By beginning early and investing regularly, even a small amount of

money can grow to larger sum. This is possible because of
compounding. Or in simpler terms, the returns on your
contribution are added to make a bigger corpus for the next year.
Money deducted from your account (through post-dated cheques /
ECS) and invested is money you cannot spend. And a rupee saved
is a rupee earned. Even if each investment is small, over time this
can add up to a significant amount.

SBI Mutual Fund is one of the leading AMC in the Indian

Mutual Fund industry. We continue setting benchmark in the
Indian financial market. We started with the daunting task of
establishing mutual funds as a viable investment option to masses
in our country. For this, we developed innovative, need-specific
products and educated the investors about the benefits of investing
in Mutual Funds. We have been actively managing our investor’s
assets since 1987. Today, not only does SBI Funds Management
offer investment expertise in domestic mutual funds, but also
offers offshore funds and portfolio management services.

With an AUM of over 29,000* crores, and more than 200 points of
acceptance across India, we have managed to win trust and faith of
over 5.5 million investors. And this has resulted in various awards
and accolades for us from the fund industry, motivating us to do
better. We have won one of the most prestigious awards for two
years in a row, Most Preferred Mutual Fund Brand for the year
2006 and 2007 by CNBC Awaaz Consumer Awards.

SBI Chota SIP launched by SBI

Mutual Fund
SBI Mutual Fund on Wednesday, April 15th started its equity based
micro systematic investment plan (Micro SIP) at Alibaug, near
Mumbai.

Micro SIP has been launched to offer long-term investment

benefits in equity to low income households residing in the rural
and semi-urban areas. "This plan is aimed at getting in low income
households in rural and semi-urban areas to benefit from long-term
investment in equity as an asset class," said Achal Gupta,
Managing Director, SBI Mutual Fund.

The first 100 investors from the low income group in Alibaug were
basically the daily wage earners who enrolled with the SIP in the
presence of Mr. O. P. Bhatt, Chairman, State Bank of India. This
was a part of the initiative taken by the bank.

The bank plans to market the product through intermediaries like

Self-Help Groups (SHGs), NGOs and Micro Credit/ Finance
Institutions. "We plan to take this product to the masses partly
through marketing by SBI Mutual Fund, and partly by setting
targets for SBI branches for the sale of this product," said Bhatt.

The plan is called as SBI Chota SIP and requires a minimum

investment of only Rs 100 per month with minimum tenure of 5
years.

The bank has also requested the government to remove the

permanent account number (PAN) requirement, which is a must for
all mutual fund investments, for this plan.

Presently the investors who want to opt for this plan have the
option of investing in SBI Mutual Fund's Magnum Balanced Fund,
MMPS 93, MSFU Contra Fund, and SBI Blue Chip Fund and later
on this plan would be extended to other schemes as well.
 DATA ANALYSIS

AND

INTERPRETATION

SAMPLING DETAILS
  Sample size – 50
 Sample were selected on random basis

 Highest number of respondents from Age group 30 to 50

people.
 Second number of respondents from Age group below 30.
 POLICY DETAILS

 70% of respondents have a good return on own Mutual fund

in Sip.

 30% of respondents have not good return on own Mutual

fund in Sip.
 COMPARISION TO OTHER BANKS

 50% of respondents have policy of SBI Bank.

 30% of respondents have policy of other bank.
 20% of respondents have policy of both banks.
 Total number of Sip policy sums up to 75(50%), and total
number of other bank policy sold sums up to 45(30%). (This
includes multiples policies bought by one respondent from
different banks.)
 YES 95%
NO 5%

 95% respondents have account in SBI.

 5% respondents have not account in SBI.

 A/C No. of % of
respondents respondents
CURRENT 60 40%
SAVING 75 50%
OTHER A/C 15 10%

 40% respondents have current A/C.

 50% respondents have saving A/C.

 10% respondents have other A/C.

 Time of No. of % of
account respondents respondents
Less 5 yrs. 75 50%
5-10 yrs. 60 40%
10 and above
yrs. 15 10%

 50% respondents have less then 5 yrs A/C.

 40% respondents have 5 to 10 yrs A/C.

 10% respondents have 10 and above yrs A/C.

 No. of % of
respondents respondents
YES 120 80%
NO 30 20%

 80% respondents know about SIP (Mutual Fund).

 20% respondents don’t know about SIP (Mutual Fund).

 No. of % of
respondents respondents
YES 105 70%
NO 45 30%

 70% respondents have account in SIP (Mutual Fund).

 30% respondents do not have account in SIP (Mutual Fund).

 TYPE OF PLAN OF SIP

 SIP and TAX ADVANTAGE plans have been most popular

plans till now.

 SIP is fast gaining popularity.

 A number of respondents were not even aware of type plan,

mainly because policy was not bought by them directly.
 INVESTMENT/SAVING PATTERN

 Respondents reluctant in providing actual figures.

 Some of them said they don’t remember while other was not
certain about the figures.

 Out of some respondents who earn good return into these

policies.
 90% respondents are satisfied to their policy.

 10% respondents are not satisfied to their policy.

 INCOME DISTRIBUTION

 Respondents reluctant in providing real figures.

 Highest, 50 respondents in income bracket 10000-20000,

which comprise mainly of age group below 30 years.

 Minimum, 25 respondents in income bracket of above 30000,

10 of which are in age group of above 50 years.
 SCOPE OF THE STUDY

 The greater Gwalior is the geographical area of

study.

 Random sampling size will be taken around 50

customers.

 Project on the awareness of the Mutual Fund Of

SBI.
LIMITATIONS OF THE STUDY

 The scope of the study is limited to the vicinity of SBI

MUTUAL FUND.

 Time taken to complete the project work is very

limited.

 The primary data collected are assumed to be correct.

 Non availability of related secondary information, data.

 Non availability of resource person in the organization.

 CONCLUSION

1. At last, it’s my conclusion that mutual fund is one of the

way through which investor can get quick return on their
investment.

2. SBI should extent aboard knowledge of SIP in rural area.

3. SBI mutual fund is one of the largest AMC’s in the

country, managing asset over rate 29,000crore.

4. The trust reposed by 5.5 million Investors is a testimony

to fund management expertise.

5. Schemes of the mutual fund have consistently out-

performed its benchmark indices and have emerged as
the preferred investment option for millions of investors.

6. Hence at last it’s my conclusions that SBI mutual fund is

the best option for investors to investment their money.
 FINDING

1. After the deep analysis on the “SBI MUTUAL FUND” I

have lot of finding related to different schemes of mutual
fund, customer perception for mutual fund, success of
mutual fund and future demand of mutual fund.

2. As SBI mutual fund provide the schemes-tax gain 93,

which is for the saving the tax, contra fund which is
available in two option-GROWTH AND DIVIDEND.

3. The return of contra fund during 1 year is 27.085%;

3years in 10% and 5 years is 33.69%.

4. Magnum equity fund provide the investor long term

capital appreciated by investing in high growth
companies.

5. Finding related to customers perception is that maximum

customers are optimistic towards their fund because of its
quick and sound return but many customer are also
patristic towards this plans because its markets
degradation.

6. But however mutual funds have bright success as many

investors are investing their money in mutual fund.
 SUGGESTION

1. Working on the project SBI MUTUAL FUND it’s my

suggestion based on my knowledge is that mutual fund is
one of the way to get the investment just double or triple
in a very short period of time.

2. Since investment in mutual fund depend upon the

Ma655rket share condition, there forgetting more
return, it is necessary to have investment in best
schemes.

3. As SBI mutual fund provide many schemes under

which an investors can invest her money.

4. The schemes are –magnum blanched funds, magnum

index fund, magnum equity fund, magnum multiplier
plus schemes 93, contra fund, magnum multiple cap
funds etc.

5. All these schemes are concerned are With different

areas and their returning are based on the schemes
.among all these schemes contra fund is providing best
return because under contra fund investment by the
investors are invested in some of the growing
companies which shares are growing up.

6. Hence it’s is my suggestion that investors should optimum

contra fund.
 QUESTIONNAIRS

Questionnaire to study customer’s awareness and view of SBI

Mutual Fund in SIP.

Dear Sir/Madam
I am a student of Jain College, doing a Project work on
Systematic Investment Plan of SBI Mutual Fund to find out the
best use of it.

1. Do you have any account in SBI?

a) Yes b) No

2. If you have then which type account you have and which
branch?

-----------------------------------------------------------

3. How much old your account?

------------------------------------------

4. Do you know about SIP or Mutual Fund of SBI?

a) Yes b) No
5. Do you have any SIP in SBI?

a) Yes b) No

Those persons who does not have SIP Policy

6. Why you don’t have any policy of SIP?

----------------------------------------------------------
7. Do you want to take any policy of SIP?
----------------------------------------------------------
8. If you want to get any policy then what will you choose into
the schemes of SIP policy?
-----------------------------------------------------------

Those persons who have SIP Policy.

9. What type schemes do you have?

-------------------------------------------------------------
10. How much you invest in SIP?
a) <500Rs. b) 500-1000Rs. c) 1000 & above.

11. How much old your SIP policy?

a) <5 yrs b) 5-10 yrs c) 10 yrs & above

12. Are you satisfied the SIP of SBI?

a) Yes b) No
13. Do you find it as a liquid asset or not?

a) Yes b) No

14. Is it safer than any other investment?

a) Yes b) No

15. If no, why are you not satisfied?

--------------------------------------------------------------
16. Do you want to give any suggestion for SIP or Mutual
fund of SBI?
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