12 13

SUMMER TRAINING REPORT ON ANALYSIS OF MUTUAL FUND IN STATE BANK OF INDIA SUBMITTED BY
GUNJAN BAJAJ

A joint venture between SBI and Socit Genral Asset Management

Slide 1 12 13 cbgngjmgh
123, 10/18/2011 123, 10/18/2011

11

INTRODUCTION TO THE COMPANY

A joint venture between SBI and Socit Genral Asset Management

Slide 2 11 hgjyjykhgjkhkjh
123, 10/18/2011

INTRODUCTION
The State Bank of India, popularly known as SBI, is one of the leading banks in India. The bank traces its origin to the first decade of the 19th century. Later on, it was merged with the Imperial Bank. In the year 1955, the Government of India nationalized the Imperial Bank along with the Reserve Bank of India. Ever since that time, the bank acquired its present name that is SBI. The State Bank of India is India's largest commercial bank. The bank has been striving sincerely to adhere to the efforts of providing utmost customer satisfaction to the best possible extent.

A joint venture between SBI and Socit Genral Asset Management

SLOGANS:With you all the way. Pure banking nothing else. The Banker to every Indian.

A joint venture between SBI and Socit Genral Asset Management

ACHIEVEMENTS
1. Largest Bank in India. 2. Bank that has more than 16000 branches in India. 3. Bank with the most number of ATMs in India 21000. 4. The oldest commercial bank in operation in the Indian subcontinent. 5. The Indian bank with most number of overseas branches (131 across 32 countries).

A joint venture between SBI and Socit Genral Asset Management

SERVICES OF SBI

TERM DEPOSITS MUTUAL FUNDS RECURRING DEPOSITS

INSURANCE

PRODUCTS AND SERVICES

LOANS

MEDI-PLUS SCHEMES PLUS SCHEMES

FOR PENSIONERS

A joint venture between SBI and Socit Genral Asset Management

INTRODUCTION TO THE PROJECT

A joint venture between SBI and Socit Genral Asset Management

MUTUAL FUND
A mutual fund is made up of money that is pooled together by a large number of investors who give their money to a fund manager to invest in a large portfolio of stocks and / bonds.

A joint venture between SBI and Socit Genral Asset Management

Mutual Fund Operation Flow Chart

1 Step: First of all assets management company issues new fund offer. 2. Step: Interested investors invest the money with fund manager. 3 Step: Then fund manager invests the money in securities. 4 Step: Then securities generate returns. 5 Step: These returns are passed back to investors.

A joint venture between SBI and Socit Genral Asset Management

ORGANIZATION OF MUTUAL FUNDS

A joint venture between SBI and Socit Genral Asset Management

THE STRUCTURE CONSIST OF:Sponsor:- Is the person who acting alone or in combination with
another body corporate establishes a mutual fund.

Trust:- The Mutual Fund is constituted as a trust in accordance with the

provisions of the Indian Trusts Act, 1882 by the Sponsor.

Trustee:- Trustee is usually a company (corporate body) or a Board of

Trustees (body of individuals).

A joint venture between SBI and Socit Genral Asset Management

Registrar and Transfer Agent:The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form, redemption requests and dispatches account statements to the unit holders.

Asset Management Company (AMC):The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund.

A joint venture between SBI and Socit Genral Asset Management

ADVANTAGES
Professional management Diversification Affordability Liquidity Transparency Variety Regulation Tax profit

A joint venture between SBI and Socit Genral Asset Management

TYPES OF MUTUAL FUNDS

A joint venture between SBI and Socit Genral Asset Management

HOW YOU CAN INVEST IN A MUTUAL FUND: There are two ways in which you can invest in a mutual fund.

1. A one-time outright payment (lump- sum) 2. Periodic investments (sip)

IT IS QUITE SIMILAR TO A RECURRING DEPOSIT OF A BANK OR POST OFFICE. SO, WE CAN SAY THAT IT IS A BEAUTIFUL TOOL, WHICH IF USED PROPERLY CAN HELP US TO ACHIEVE ALL OUR FINANCIAL GOALS

A joint venture between SBI and Socit Genral Asset Management

PROCEDURE TO INVEST IN SIP:-

A joint venture between SBI and Socit Genral Asset Management

METHODS OF INVESTMENT THROUGH SIP

METHODS

MONTHLY SIP

DAILY SIP

FLEXI SIP

A joint venture between SBI and Socit Genral Asset Management

PREQUISITES

PAN card KYC form Photo ID proof Bank account Cheque

A joint venture between SBI and Socit Genral Asset Management

 IN CASE PAN CARD IS AVAILABLE

KYC form will attach. Min Investment amount -1000rs

 IN CASE PAN CARD IS NOT KYC form will not attach AVAILABLE Min. investment amount 1000 Max. investment amount 4000rs

A joint venture between SBI and Socit Genral Asset Management

IS THERE A LOAD/CHARGE IN SIP ? ENTRY LOAD EXIT LOAD NIL 1 % If made within one year

A joint venture between SBI and Socit Genral Asset Management

BENEFITS OF SYSTEMATIC INVESTMENT PLAN

What is your equation to investments Power of compounding:
Easy, Flexibility and Liquidity: Convenience and Regularity Save tax: Disciplined approach towards investment

A joint venture between SBI and Socit Genral Asset Management

HELPS IN COMPOUNDING YOUR WEALTH

START EARLY + INVEST REGULARLY = CREATE WEALTH START EARLY

Systematic investing has a compounding effect on your investments. In the long term, an investment as low as Rs 5000/per month swells up into a huge corpus. This can be best explained by the following graph. The graph shows advantages of starting early. If an investor starts early, even with lower invested amount he can create a large corpus.

A joint venture between SBI and Socit Genral Asset Management

INVEST REGULARLY - FIGHTS MARKET VOLATILITY

SIP investments take advantage of this strategy:

A joint venture between SBI and Socit Genral Asset Management

OBJECTIVE OF THE STUDY

To know about the mutual funds schemes available in the market. To know the returns in the mutual fund schemes. Analysis the investment pattern of the mutual funds.

To check the profitability.

A joint venture between SBI and Socit Genral Asset Management

RESEARCH METHODOLOGY
SOURCES OF DATA COLLECTION
To make the research complete it is very necessary to have useful and authentic data there are two types of data collection sources.

Primary source of data collection:Personal & telephonic interviews & observation of the respondents about the various schemes helped in completion the project.

Secondary source of data collection:The data for my studies have been taken from various sources:      Books Journals Magazines Internet sources File

A joint venture between SBI and Socit Genral Asset Management

SAMPLING PLAN
The study is based on the sampling method because up to some extent it is free from biasness. Sampling size Sampling Sampling area Sampling unit : 100 : Stratified sampling : Ambala city : individual

A joint venture between SBI and Socit Genral Asset Management

TOOLS AND TECHNIQUES OF ANALYSIS Techniques Table and Graphs

Tools Questionnaire and Interview

Tables and Graphs are used in order to analyses the primary and secondary data from various sources.

A joint venture between SBI and Socit Genral Asset Management

LIMITATION OF THE STUDY

 Area covered under the report was very small.  The research was carried out in a short period of 6-7 weeks as a part of the project was completed with in the given time frame.  Some of the respondents of the survey were unwilling to give information.

 Some investors did not have proper knowledge about different alternatives in share market.

A joint venture between SBI and Socit Genral Asset Management

ANALYSIS
ANALYSIS 1. You are a: 1. Business man ( ) 2. Private employee ( ) 4.Professional ( )

3. Govt. Employee ( )

INTERPRETATION:About 34% of the investors are private employee, 32% of the investors are business man, 21% of the investors are professionals and 13% of the investors are Govt. employee.

A joint venture between SBI and Socit Genral Asset Management

2. ANNUAL INCOME OF THE INVESTOR:1. LESS THAN 1, 00,000 ( ) 2. RS.1,00,000 TO 2,00,000 ( 3. MORE THAN 2,00,000 ( ) INTERPRETATION:About 52% of the investors annual income is more than 2,00000. )

A joint venture between SBI and Socit Genral Asset Management

3. Response of the customer regarding MF 1.Yes ( ) 2. No ( )

INTERPRETATION:about 60% of the investors give response about mutual fund.

A joint venture between SBI and Socit Genral Asset Management

4. Preference of the investor regarding type of the investment 1. Sip ( ) 2. Lump-sum ( )

INTERPRETATION:Majority of investors regarding sip is 70% & lump-sum is 30%.

A joint venture between SBI and Socit Genral Asset Management

5. Reason for prefer sip:1. Better return ( 3. Savings ( ) ) 2. Diversified risk ( ) 4. Any other ( )

INTERPRETATION:Mostly investors invest in sip because of the better return on it.

A joint venture between SBI and Socit Genral Asset Management

6. Investor investment amount on monthly basis in sip Ans: 1. Rs. 1,000 ( ) 2. Rs. 1,000 to 5,000 ( ) 3. Rs. 5,000 to 10,000 ( ) 4. Above 10,000 ( )

INTERPRETATION:about 65% of the investors give response to invest in sip monthly 1000 rs.

A joint venture between SBI and Socit Genral Asset Management

7.investor near future liability 1. Child marriage ( 3. Education ( ) ) 2. Retirement planning ( ) 4. Loans (

INTERPRETATION The main purpose of the investors to invest in mutual fund is to get return for education.

A joint venture between SBI and Socit Genral Asset Management

8. Influence investor decision of selecting mutual fund scheme 1. Agent ( ) 2. Friends ( ) 3. Advertisement ( ) 4. Others (

Interpretation about 80% of the investors influence by agent, 13% by advertisement, 5% by friends and 2% by others.

A joint venture between SBI and Socit Genral Asset Management

9. Duration of prefer to invest 1. Up to 1 year ( ) 2. 1 to 3 year ( ) 3. 3 to 5 year ( )

INTERPRETATION:Mostly investors , invest in mutual fund in duration I to 3 years.

A joint venture between SBI and Socit Genral Asset Management

1o. The manner in which investor get return on their investment 1 liquid ( ) 2. Illiquid ( )

INTERPRETATION: About 76% of the investors get return in liquid manner and 24%of the investors get return in illiquid manner.

A joint venture between SBI and Socit Genral Asset Management

FINDINGS
 From my analysis I find that most of the investors who invest in mutual funds are private employees.  The income rate of the investors is between more than 2,00000.  Most of the customers prefer to invest in Mutual fund (SIP).  It is easy to invest in mutual fund because of the installments system.  The investors prefer sip because they get better return than lump-sum.  Most of the investors range to invest in sip on monthly basis is between rs.1000 to 5000.  Mostly investors are influenced by the agents.  Most of the investors are prefer to investing in mutual fund of duration between 1to3 years.  Mostly investors get s return on their investment in liquid manner.

A joint venture between SBI and Socit Genral Asset Management

RECOMENDATIONS

I have done training in STATE BANK OF INDIA. During training I met different type of customers regarding different activities like PAN information, equity sector information , mutual fund investment and so many other financial services.

And I want to give the suggestion to the SBI when customer visited the SBI regarding in any financial services. So that SBI member receive proper all the document in any financial service time like , mutual funds, demat a/c, saving a/c and so many other activities. Because most of customers have not provide the specific documents during in any financial services. So i suggesting to the SBI members please receive all the formality in proper and a systematic way for customer satisfaction and SBI service .

A joint venture between SBI and Socit Genral Asset Management

CONCLUSION
Mutual funds are subject to market risks.
Risk Factors: Mutual Funds and Securities Investments are subject to market risks and there is no assurance or guarantee that the objective of scheme (s) /plan (s) will be achieved. As with any other investment in securities, the NAV of the Units issued under the scheme (s) /plan (s) can go up or down depending on the factors and forces affecting the securities market. Past performance of the Sponsor/AMC/Mutual Fund/Scheme (s)/Plan (s) and their affiliates do not indicate the future performance of the scheme(s) of the Mutual Fund. The name of the scheme does not in any manner indicate either the quality of the scheme, its future prospects or returns. Statutory Details:. Please read the Scheme Information Document carefully before investing.

A joint venture between SBI and Socit Genral Asset Management

A joint venture between SBI and Socit Genral Asset Management