FINANCIAL SERVICES

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PROJECTS:

Submit at least six to seven page write up in word document in any one of the following
topics :

1) SBI MUTUAL FUND

2) HDFC MUTUAL FUND
3) RECENT IPO (2 nos.)
4) DEPOSITORY PARTICIPANTS (ILFS or INDIA INFOLINE LTD.)
5) CREDIT RATING OF CRISIL & ICRA
6) 91 DAYS TREASURY BILL

SBI Mutual Fund

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 is bringing 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 Generate Asset Management.

CONSTITUTION OF THE MUTUAL FUND

1. Constitution
SBI Mutual Fund has been constituted as a Trust, sponsored by SBI. SBI has made
an initial contribution of Rs. 5 lacs towards setting up of the Trust fund. SBI has
been designated as the Principal Trustee, and has appointed a Board of Trustees to
supervise the activities of the Fund. The Board of Trustees have entrusted the work
of management of the Fund to SBI Funds Management Ltd., an Asset Management
Company.
2. Objective of SBI Mutual Fund
The basic objective of SBI Mutual Fund is to mobilize savings from a wide cross-
section of people and to provide them attractive returns, security and liquidity
through investments in capital and money markets.
3. The Sponsor
The State Bank of India or SBI having its Corporate Office at State Bank Bhavan,
Madame Camas Road, Mumbai - 400 021, is the largest public sector bank in India
with 9026 branches in India and 52 offices in 31 countries worldwide. In addition to
this, SBI also has 7 associates and 1 banking subsidiary in addition to other non-
banking subsidiaries in India and abroad. SBI is the leader in providing loans and
related services (which generate significant fee-based income) to trade & industry.
It has also identified project finance and consumer banking as key areas.

Proven Skills in Wealth Generation :

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

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

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

Exploiting expertise, compounding growth :

In twenty years of operation, the fund has launched 38 schemes and

successfully redeemed fifteen of them. In the process it has rewarded it’s
investors handsomely with consistent returns. A total of over 5.8 million
investors have reposed their faith in the wealth generation expertise of the
Mutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark

indices and have emerged as the preferred investment for millions of
investors and HNI’s. Today, the fund manages over Rs. 38,782 crores of
assets and has a diverse profile of investors actively parking their
investments across 38 active schemes.

The fund serves this vast family of investors by reaching out to them through
network of over 130 points of acceptance, 28 investor service centers, 46
investor service desks and 56 district organizers.
SBI Mutual is the first bank-sponsored fund to launch an offshore fund –
Resurgent India Opportunities Fund. Growth through innovation and stable
investment policies is the SBI MF credo.

Portfolio Management

SBI offers an integrated end to end customized asset management solution

for institutions by:

• Understanding the client needs and requirements in terms of risk and returns

• Providing asset portfolio recommendations.

The different approaches in offering Portfolio Management Services, by SBIFM

are;

Pure Advisory Services where we offer

• Portfolio Recommendation

• Portfolio Monitoring

• Portfolio Reporting

Non Discretionary Portfolio Management Services where

• SBI offers the above advisory plus Trade Execution and Custodial services

Discretionary Portfolio Management Services

• All investment related decisions, back office, Fund Accounting and Custodian
services are undertaken. The entire management of the portfolio is done by
SBIFM.

Advantages of Using a Portfolio Management Service (PMS)

• Lower cost as compared to a mutual fund.

• Tailor-made solutions & services.

• Privileged access to the Fund Manager.

• Detailed analysis and review of your portfolio.

• Regular Reporting and communications.

• Control of Portfolio is ultimately in the Client's hands.

The different approaches in offering Portfolio Management Services, by SBIFM
are;

Expertise

• Extensive Fund Management (Both Equity and Fixed Income) Expertise

• Managing a wide variety of Schemes

Professionalism

• A strong partnership with a Global Asset Manager (SGAM)

• Bringing the best practices in terms of portfolio management, services and
risk control
• Allows a fast access to innovative products.

Safety and Reliability coming from a SBI group company

• SBI are currently offering PMS services only for institutional investors

Various products are launched by SBI under various schemes. Such schemes
are:

 Equity Schemes
 Debt Schemes
 Balanced Schemes
 Exchange Traded Schemes

Examples of certain products launched by SBI various schemes are as follows:

EQUITY SCHEMES
Magnum COMMA Fund

Investment Objective

The objective of the scheme would be to generate opportunities for growth

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

% of Portfolio of Plan
Instrument Risk Profile
A & B
Equity and equity related instruments of
within 65% – 100% High
commodity based companies
Foreign Securities/ADRs/GDRs of commodity
0% - 10% High
based companies
Fixed/Floating Rate Debt instruments including
0% - 30% Medium
derivatives
Money Market instruments* 0% - 30% Low

Scheme Highlights

1. An open-ended equity scheme investing in stocks of commodity based

companies.
2. Minimum Investment Rs. 5000 and in multiples of Rs. 1000 Dividend
and Growth options available. Reinvestment and payout facility
available.
3. Dividends will be completely tax-free. Long term capital gains to be
completely tax-free. STT would be at the rate of 0.20% at the time of
repurchase.

Launch Date Minimum Application

August 17, 2005 Rs. 5000 and in multiples of Rs. 1000
Entry Load Exit Load
NA 1) For exit within 1 year from the date of
allotment - 1 %. 2) For exit after 1 year from
the date of allotment - Nil
SIP SWP
Rs.500/month - 12 months, Rs.1000/month - A minimum of Rs. 500 can be withdrawn every
6months, Rs.1500/quarter - 12 months month or quarter by indicating in the
application form or by issuing advance
instructions to the Registrars at any time.

Magnum Equity Fund

Investment Objective

To provide the investor Long-term capital appreciation by investing in high

growth companies along with the liquidity of an open-ended scheme through
investments primarily in equities and the balance in debt and money market
instruments

Asset Allocation

% of Portfolio of
Instrument Risk Profile
Plan A & B
Equity and related instruments not less than 70% High
Debt instruments not more than 30% Medium
Securitized Debt investments in debt not more than 10% Low
Money market instruments * Balance Low

Scheme Highlights
1. A diversified equity fund, focusing on aggressive growth

2. Ideal for investors who wish to benefit from the growth of the equity markets
and are comfortable with the attendant volatility.

Launch Date Minimum Application

January 2, 1991 Rs. 1000
Entry Load Exit Load
NA 1) For exit within 1 year from the date of
allotment - 1 %. 2) For exit after 1 year
from the date of allotment - Nil
SIP SWP
Rs.500/month - 12 months, available for a minimum of Rs. 500/-
Rs.1000/month - 6 months, subject to maintaining the minimum
Rs.1500/quarter - 12 months investment payable on a monthly basis

DEBT SCHEMES

Magnum Children`s Benefit Plan

Investment Objective

The investment objective of the scheme will be to provide attractive returns

to the Magnum holders / Unit holders by means of capital appreciation
through an actively managed portfolio of debt, equity and money market
instruments. Income generated through the receipt of coupon payments, the
amortization of the discount on the debt instruments, receipt of dividends or
purchase and sale of securities in the underlying portfolio, will be reinvested.
The following table shows percentage portfolio allocation.

Asset Allocation

% of Portfolio of Plan
Instrument Risk Profile
A & B
Equity and related instruments Not more than 25% Medium to High
Debt instruments (including Securitized debt)
and Govt. Securities and Money market Up to 100% Low to Medium
instruments
Not more than 10% of
Securitized Debt Medium to High
investments in debt

Scheme Highlights

1. Open ended Income Scheme.

2. Parents/Guardians/Relatives/Institutions and NRIs can invest on behalf of the

child. The child should be above 3 months and below 15 years of age as on
the date of investment. Proof of age is not required. However, the Trustees
and/or the AMC may, if considered necessary, in their sole discretion ask for
proof of the same.

3. Magnums / Units under the scheme can be repurchased on any business day
at NAV related prices. Investors or donors investing through the parent who
desire that the investment be locked-in till the Magnum holder / Unit holder
attains the age of 18 years, they may do so by indicating it at the appropriate
place in the application form at the time of application.

4. The funds collected under the scheme shall generally be invested in equity,
debt and money market instruments consistent with the objective of the
scheme

5. On reaching 18 years of age, Magnum holders / Unit holders will have an

option to withdraw their holdings either as a lump sum amount or staggered
over a period of five years on annual/semiannual basis. In case the Magnum
holder / Unit holder opts for the staggered redemption option, the corpus on
maturity will be frozen and will be invested in instruments which seeks to
provide capital protection such as bank deposits, Government Securities (the
maturities of which will not exceed the residual maturity of the corpus) or in
the call money market. In the case of the staggered redemption option, it is
deemed that the Magnum holder / Unit holder has redeemed his investment
under the scheme and will no longer be eligible for any benefits under the
scheme. Alternatively, Magnum holders / Unit holders may also be permitted
to continue their investment under the scheme even on completion of 18
years of age.

6. The scheme will provide group accident insurance cover to the Magnum
holders / Unit holders or either parent against accidental death or permanent
total disability relating to these accidents. In addition to this, on the
accidental death of either parent the Magnum holder / Unit holder will stand
to receive an additional 10% of the claim amount towards educational
expenses. The cost of providing the insurance cover would be borne by the
 AMC. This cover will be available only for Resident Indian Magnum holders /
Unit holders.

7. At the time of application or subsequently, the investor may nominate an

alternate child not exceeding 15 years of age.

Launch Date Minimum Application

January 2, 2002 Rs. 1500/- only and in multiples of Rs. 100/-. No
maximum limit.
Entry Load Exit Load
NA Within 1 year : 3%; within 2 years : 2%; Within
3 years:1%
SIP SWP
Rs.500/month - 12 months Rs.1000/month - A minimum of Rs. 500 can be withdrawn every
6months Rs.1500/quarter - 12 months month or quarter by indicating in the application
form or by issuing advance instructions to the
Registrars at any time.

Magnum Income Fund

Investment Objective

The objective of the scheme is to provide the investors an opportunity to

earn, in accordance with their requirements, through capital gains or through
regular dividends, returns that would be higher than the returns offered by
comparable investment avenues through investment in debt & money market
securities.

Asset Allocation

% of Portfolio of Plan
Instrument Risk Profile
A & B
Corporate debentures & Bonds/PSU/FI/Govt.
Guaranteed Bonds / Other including Securitized Up to 90% High
Debt
Not more than 10% of in
Securitized Debt Low
debt
Government Securities Up to 90% High
Cash & Call Money Up to 25% Medium
Money Market Instruments Up to 25% Medium
Units of other mutual funds Up to 5% Low

Scheme Highlights

1. Open ended Debt Scheme 2. Following Plans are available to the investors :(A)
Growth Plan (B) Dividend Plan (C) Bonus Plan (D) Floating Rate Plan Options
available under Floating Rate Plan Short Term (Growth, Dividend & Weekly
 Dividend)Long Term (Regular (Dividend & Growth) Long Term (Institutional
(Dividend & Growth)

2. The Plans will invest their entire corpus in high quality debt (Corporate
debentures, PSU/FI/Govt. guaranteed bonds), Govt. securities and money
market instruments (commercial paper, certificates of deposit, T-bills, bills
rediscounting, repos, short-term bank deposits, etc). There shall be no
investment in equity.

3. The Growth Plan / Option will give returns through capital gains only. No
dividends shall be declared under this Plan. The Dividend Plan will endeavor
to declare regular dividends every half year, depending on the NAV at that
point of time. The Dividend Option in Floating Rate Short Term Plan will
endeavor to declare dividends on a monthly basis while the dividend option
under the Floating Rate Plan Long Term (Regular and Institutional) Plan will
declare dividends on a quarterly basis.

4. Switchover between the Plans at NAV. Also, switchover facility at the NAV
related prices to other opened schemes of SBI Mutual Fund is available. This
facility of switchover to other schemes is not available to NRIs and FIIs.

Launch Date Minimum Application

January 12, 1998 Rs. Rs.2000/- and in multiples of Rs. 500/-
thereafter. For Floating Rate Long Term
Insitutional Plan, Rs. 50 lakhs and in multiples of
Rs. 10 lakhs.
Entry Load Exit Load
NA 1) For exit within 6 months from the date of
allotment - 0.50%. 2) For exit after 6 months
from the date of allotment - Nil
SIP SWP
Rs.500/month - 12 months Rs.1000/month - Investors have the facility to switchover between
6months Rs.1500/quarter - 12 months the Plans at NAV. Also, switchover facility at the
NAV related prices to other openend schemes of
SBI Mutual Fund is available. This facility of
switchover to other schemes is not available to
NRIs and FIIs

BALANCED SCHEMES

Magnum Balanced Fund

Investment Objective

To provide investors long term capital appreciation along with the liquidity of
an open-ended scheme by investing in a mix of debt and equity. The scheme
will invest in a diversified portfolio of equities of high growth companies and
balance the risk through investing the rest in a relatively safe portfolio of
debt.
Asset Allocation

% of Portfolio of Plan
Instrument Risk Profile
A & B
Equities At least 50% Medium to High
Debt Instruments like debentures, bonds,khokhas,
Up to 40%
etc.
Not more than 10% of
Securitized Debt Medium to High
investments in debt
Money Market Instruments Balance Low

Scheme Highlights

1. An open-ended scheme investing in a mix of debt and equity instruments.

Investors get the benefit of high expected-returns of equity investments with
the safety of debt investments in one scheme.

2. On an ongoing basis, magnums will be allotted at an entry load of 2.25% to

the NAV.

3. Scheme opens for Resident Indians, Trusts, Indian Corporate, on a fully

reparable basis for NRIs and, Overseas Corporate Bodies.

4. Facility to reinvest dividend proceeds into the scheme at NAV available.

5. Switchover facility to any other open-ended schemes of SBI Mutual Fund at

NAV related prices.

6. The scheme will declare NAV, Sale and repurchase price on a daily basis.

7. Nomination facility available for individuals applying on their behalf either

singly or jointly up to three.

Launch Date Minimum Application

May 1, 1996 Rs. subscription: 100 Magnums or Rs.1,000/-
whichever is lower, and in multiples of Rs.500/-
Entry Load Exit Load
NA 1) For exit within 1 year from the date of
allotment - 1 %. 2) For exit after 1 year from the
date of allotment - Nil
SIP SWP
Rs.100/ month - 60 months; Rs.500/month - Systematic Withdrawal Plan (SWP): A minimum
12 months Rs.1000/month - 6months of Rs. 500 can be withdrawn every month or
Rs.1500/quarter - 12 months quarter by issuing advance instructions to the
Registrars at any time. There is also a facility of
a Monthly Pension Plan, whereby investors can
withdraw a minimum amount of Rs. 500/- every
month.
EXCHANGE TRADED SCHEME

SBI Gold Exchange Traded Scheme

Investment Objective

The investment objective of the fund is to seek to provide returns that closely
correspond to returns provided by price of gold through investment in
physical Gold. However the performance of the scheme may differ from that
of the underlying asset due to tracking error.

Asset Allocation

% of Portfolio of Plan
Instrument Risk Profile
A & B
Debt & Money Market Instruments 0-10% Low
Gold and gold bullion 90-100% Medium to High

Scheme Highlights

Launch Date Minimum Application

March 30, 2009 Rs. Investment of Rs.5000 and in multiples of
Re. 1 thereafter
Entry Load Exit Load
NA NIL
SIP SWP
NA
Expense Ratio
1.30%