A PROJECT REPORTONA STUDY OF SBI MUTUAL FUNDS

Submitted in partial fulfillment of the requirement for the award of degree of Master of Business Administration (MBA) under M.S. Patel Institute of Management Studies, University of Vadodra

SUBMITTED BY :-RAJAT KOULROLL NO. 49BATCH : 2014-2016

UNDER THE GUIDANCE OF :-SIR RAVNEET PAL SINGH

ACKNOWLEDGEMENT

I hereby acknowledge SBI mutual funds providing the constant guidance for encouragement which helped me a lot to be successful in my efforts. This formal acknowledgement will hardly be sufficient to express my deep sense of gratitude to all of them. It was a memorable experience while doing my summer training project on a study of SBI Mutual Funds.

I would like to acknowledge my obligation to MR. RAVNEET PAL SINGH for granting me the permissions for the assignment work, under whom I have done the work and for his warm and constant guidance. I express my deep gratitude and sincere thanks to him. THANK YOU RAJAT KOULROLL NO. 49

DECLARATION

This is to certify that Summer Training Report entitled A Study of SBI Mutual Fund which is submitted by me in partial fulfillment of the requirement for the award of degree Master of Business Administration (MBA), at M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES, UNIVERSITY OF VADODRA comprises only my original work and due acknowledgement has been made in the text to all other material used.

RAJAT KOUL

EXECUTIVE SUMMARYIn few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual Funds have not only contributed to the India growth story but have also helped families tap into the success of Indian Industry. As information and awareness is rising more and more people are enjoying the benefits of investing in mutual funds. The main reason the number of retail mutual fund investors remains small is that nine in ten people with incomes in India do not know that mutual funds exist. But once people are aware of mutual fund investment opportunities, the number who decide to invest in mutual funds increases to as many as one in five people. The trick for converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to understand which of the potential investors are more likely to buy mutual funds and to use the right arguments in the sales process that customers will accept as important and relevant to their decision.This Project gave me a great learning experience and at the same time it gave me enough scope to implement my analytical ability.. This Report will help to know about the investors Preferences in Mutual Fund means Are they prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic Investment Plan or One time Plan). This Project as a whole can be divided into two parts.The first part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics through the Project. The second part of the Project consists of data and its analysis collected through survey done on 50 people. For the collection of Primary data I made a questionnaire and surveyed of 50 people. I have also taken interview of many People those who were coming at the SBI Branch where I done my Project. The data collected has been well organized and presented. I hope the research findings and conclusion will be of use. CONTENTS Acknowledgement Declaration Executive Summary Chapter - 1 INTRODUCTION 6 Chapter - 2 COMPANY PROFILE 29 Chapter - 3 SCHEMES OF SBI 30 Chapter- 4 ESSENTIAL DOCUMENTS REQUIRED 43 Chapter-5 RESEARCH AND METHODOLOGY 46 Chapter-6 DATA ANALYSIS AND INTERPRETATION 48 Chapter 7 SUGGESTIONS AND RECOMMENDATIONS 57 Chapter-8 FINDINGS AND CONCULISION 58

ANNEXURE QUESTIONNAIRE 59

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ANNEXURE QUESTIONNAIRE 59 BIBLIOGRAPHY 52

INTRODUCTION TO MUTUAL FUNDWhat is a Mutual fund?

Mutual fund is an investment company that pools money from shareholders and invests in a variety of securities, such as stocks, bonds and money market instruments. Most open-end Mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which depends on the total market value of the fund's investment portfolio at the time of redemption. Most open-end Mutual funds continuously offer new shares to investors. Also known as an open-end investment company, to differentiate it from a closed-end investment company. Mutual funds invest pooled cash of many investors to meet the fund's stated investment objective. Mutual funds stand ready to sell and redeem their shares at any time at the fund's current netasset value: total fund assets divided by shares outstanding.

In Simple Words, Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing funds in securities in accordance with objectives as disclosed in offer document. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of Mutual funds are known as unit holders. The profits or losses are shared by the investors in proportion to their investments. The Mutual funds normally come out with a number of schemes with different investment objectives which are launched from time to time. In India, A Mutual fund is required to be registered with Securities and Exchange Board of India (SEBI) which regulates securities markets before it can collect funds from the public. In Short, a Mutual fund is a common pool of money in to which investors with common investment objective place their contributions that are to be invested in accordance with the stated investment objective of the scheme. The investment manager would invest the money collected from the investor in to assets that are defined/ permitted by the stated objective of the scheme. For example, an equity fund would invest equity and equity related instruments and a debt fund would invest in bonds, debentures, gilts etc. Mutual fund is a suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.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 in these investments and the capital appreciation realized by the scheme is 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 man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Anybody with an invest able surplus of a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a defined investment objective and strategy.A mutual fund is the ideal investment vehicle for todays complex and modern financial scenario. Markets for equity shares, bonds and other fixed income instruments, real estate, derivatives and other assets have become mature and information driven. Price changes in these assets are driven by global events occurring in faraway places. A typical individual is unlikely to have the knowledge, skills, inclination and time to keep track of events, understand their implications and act speedily.

A mutual fund is answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a fulltime basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In fact, the mutual fund vehicle exploits economies of scale in all three areas research, investment and transaction processing.

A draft offer document is to be prepared at the time of launching the fund. Typically, it pre specifies the investment objective of the fund, the risk associated, the cost involved in the process and the broad rules for entry into and exit from the fund and other areas of operation. In India, as

in most countries, these sponsors need approval from a regulator, SEBI in our case. SEBI looks at track records of the sponsor and its financial strength in granting approval to the fund for commencing operations.

A sponsor then hires an asset management company to invest the funds according to the investment objective. It also hires another entity to be the custodian of the assets of the fund and perhaps a third one to handle registry work for the unit holders of the fund.In the Indian context, the sponsors promote the Asset Management Company also,in which it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset Management Company (AMC). E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management Company Ltd., which has floated different mutual funds schemes and also acts as an asset manager for the funds collected under the schemes.

As per SEBI regulations, mutual funds can offer guaranteed returns for a maximum period of one year. In case returns are guaranteed, the name of the guarantor and how the guarantee would be honored is required to be disclosed in the offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders.

THE CONCEPT OF MUTUAL FUND IN DETAIL

A mutual fund uses the money collected from investors to buy those assets which are specifically permitted by its stated investment objective. Thus, an equity fund would buy equity assets ordinary shares, preference shares, warrants etc. A bond fund would buy debt instruments such as debentures, bonds or government securities. It is these assets which are owned by the investors in the same proportion as their contribution bears to the total contributions of all investors put together.

Any change in the value of the investments made into capital market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors.

A Mutual Fund is an investment tool that allows small investors access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is determined each day.

When an investor subscribes to a mutual fund, he or she buys a part of the assets or the pool of funds that are outstanding at that time. It is no different from buying shares of joint stock Company, in which case the purchase makes the investor a part owner of the company and its assets. However, whether the investor gets fund shares or units is only a matter of legal distinction.

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 then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. Thus Mutual fund is most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

MUTUAL FUND OPERATION FLOW CHART

From the above chart , it can be observed that how the money from the investors flow and they get returns out of it. With a small amount of fund, investors pool their money with the funds managers. Taking into consideration the market strategy the funds managers invest this pool of money into reliable securities. With ups and downs in market returns are generated and they are passed on to the investors. The above cycle should be very clear and also effective.The fund manager while investing on behalf of investors takes into consideration various factors like time, risk, return, etc. so that he can make proper investment decision.

ADVANTAGES AND DISADVANTAGES OF MUTUALFUNDS : ADVANTAGES OF MUTUAL FUND

Professional Management. The major advantage of investing in a mutual fund is that you get a professional money manager to manage your investments for a small fee. You can leave the investment decisions to him and only have to monitor the performance of the fund at regular intervals.

Diversification.Considered the essential tool in risk management, mutual funds make it possible for even small investors to diversify their portfolio. A mutual fund can effectively diversify its portfolio because of the large corpus. However, a small investor cannot have a well-diversified portfolio because it calls for large investment. For example, a modest portfolio of 10 bluechip stocks calls for a few a few thousands.

Convenient Administration.Mutual funds offer tailor-made solutions like systematic investment plans and systematic withdrawal plans to investors, which is very convenient to investors. Investors also do not have to worry about investment decisions, they do not have to deal with brokerage or depository, etc. for buying or selling of securities. Mutual funds also offer specialized schemes like retirement plans, childrens plans, industry specific schemes, etc. to suit personal preference of investors. These schemes also help small investors with asset allocation of their corpus. It also saves a lot of paper work.

Costs EffectivenessA small investor will find that the mutual fund route is a cost-effective method (the AMC fee is normally 2.5%) and it also saves a lot of transaction cost as mutual funds get concession from brokerages. Also, the investor gets the service of a financial professional for a very small fee. If he were to seek a financial advisor's help directly, he will end up paying significantly more for investment advice. Also, he will need to have a sizeable corpus to offer for investment management to be eligible for an investment advisers services.

LiquidityYou can liquidate your investments within 3 to 5 working days (mutual funds dispatch redemption cheques speedily and also offer direct credit facility into your bank account i.e. Electronic Clearing Services).

TransparencyMutual funds offer daily NAVs of schemes, which help you to monitor your investments on a regular basis. They also send quarterly newsletters, which give details of the portfolio, performance of schemes against various benchmarks, etc. They are also well regulated and Sebi monitors their actions closely. Tax benefitsYou do not have to pay any taxes on dividends issued by mutual funds. You also have the advantage of capital gains taxation. Tax-saving schemes and pension schemes give you the added advantage of benefits under section 88.

AffordabilityMutual funds allow you to invest small sums. For instance, if you want to buy a portfolio of blue chips of modest size, you should at least have a few lakhs of rupees. A mutual fund gives you the same portfolio for meager investment of Rs.1,000-5,000. A mutual fund can do that because it collects money from many people and it has a large corpus.

DISADVANTAGES OF MUTUAL FUNDS:

Professional ManagementDid you notice how we qualified the advantage of professional management with the word "theoretically"? Many investors debate over whether or not the so-called professionals are any better than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut. We'll talk about this in detail in a later section.

CostMutual funds don't exist solely to make your life easier--all funds are in it for a profit. The Mutual fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that in this tutorial we have devoted an entire section to the subject.

DilutionIt's possible to have too much diversification (this is explained in our article entitled "Are You Over-Diversified?"). Because funds have small holdings in so many different companies, high returns from a few investments often don't make much difference on the overall return. Dilution is also the result of a successful fund getting too big. When money pours into funds that have had strong success, the manager often has trouble finding a good investment for all the new money.

TaxesWhen making decisions about your money, fund managers don't consider your personal tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how profitable the individual is from the sale. It might have been more advantageous for the individual to defer the capital gains liability.

Equity funds, if selected in the right manner and in the right proportion, have the ability to play an important role in achieving most long-term objectives of investors in different segments. While the selection process becomes much easier if you get advice from professionals, it is equally important to know certain aspects of equity investing yourself to do justice to your hard earned money.

CATEGORIES OF MUTUAL FUND: TYPES OF MUTUAL FUND SCHEMES

1. BY STRUCTURE Open Ended Schemes. Close Ended Schemes. Interval Schemes.

2. BY INVESTMENT OBJECTIVE Growth Schemes. Income Schemes. Balanced Schemes.

3. OTHER SCHEMES Tax Saving Schemes. Special Schemes. Index Schemes. Sector Specific Schemes.

1.OPEN ENDED SCHEMESThe units offered by these schemes are available for sale and repurchase on any business day at NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such schemes thus offer very high liquidity to investors and are becoming increasingly popular in India. Please note that an open-ended fund is NOT obliged to keep selling/issuing new units at all times, and may stop issuing further subscription to new investors. On the other hand, an open-ended fund rarely denies to its investor the facility to redeem existing units.

2. CLOSED ENDED SCHEMESThe unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of units. These schemes are launched with an initial public offer (IPO) with a stated maturity period after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy or sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit capital in closed-ended schemes usually remains unchanged. After an initial closed period, the scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV. This discount tends towards the NAV closer to the maturity date of the scheme.

3. INTERVAL SCHEMESThese schemes combine the features of open-ended and closed-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during pre-determined intervals at NAV based prices.4. GROWTH SCHEMESThese schemes, also commonly called Equity Schemes, seek to invest a majority of their funds in equities and a small portion in money market instruments. Such schemes have the potential to deliver superior returns over the long term. However, because they invest in equities, these schemes are exposed to fluctuations in value especially in the short term.5. INCOME SCHEMESThese schemes, also commonly called Debt Schemes, invest in debt securities such as corporate bonds, debentures and government securities. The prices of these schemes tend to be more stable compared with equity schemes and most of the returns to the investors are generated through dividends or steady capital appreciation. These schemes are ideal for conservative investors or those not in a position to take higher equity risks, such as retired individuals. However, as compared to the money market schemes they do have a higher price fluctuation risk and compared to a Gilt fund they have a higher credit risk.6. BALANCED SCHEMESThese schemes are commonly known as Hybrid schemes. These schemes invest in both equities as well as debt. By investing in a mix of this nature, balanced schemes seek to attain the objective of income and moderate capital appreciation and are ideal for investors with a conservative, long-term orientation.

7. TAX SAVING SCHEMESInvestors are being encouraged to invest in equity markets through Equity Linked Savings Scheme (ELSS) by offering them a tax rebate. Units purchased cannot be assigned / transferred/ pledged / redeemed / switched out until completion of 3 years from the date of allotment of the respective Units.The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations, 1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs), Government of India regarding ELSS.Subject to such conditions and limitations, as prescribed under Section 88 of the Income-tax Act, 1961.

8. INDEX SCHEMESThe primary purpose of an Index is to serve as a measure of the performance of the market as a whole, or a specific sector of the market. An Index also serves as a relevant benchmark to evaluate the performance of mutual funds. Some investors are interested in investing in the market in general rather than investing in any specific fund. Such investors are happy to receive the returns posted by the markets. As it is not practical to invest in each and every stock in the market in proportion to its size, these investors are comfortable investing in a fund that they believe is a good representative of the entire market. Index Funds are launched and managed for such investors.

9. SECTOR SPECIFIC SCHEMES.Sector Specific Schemes generally invests money in some specified sectors for example: Real Estate Specialized real estate funds would invest in real estates directly, or may fund real estate developers or lend to them directly or buy shares of housing finance companies or may even buy their securitized assets.

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SEBI REGISTERED MUTUAL FUNDS1. FORTIS Mutual fund 2. Alliance Capital Mutual fund, 3. AIG Global Investment Group Mutual fund 4. Benchmark Mutual fund,5. Baroda Pioneer Mutual fund6. Birla Mutual fund7. Bharti AXA Mutual fund8. Canara Robeco Mutual fund9. CRB Mutual fund (Suspended)10. DBS Chola Mutual fund,11. Deutsche Mutual fund12. DSP Blackrock Mutual fund,13. Edelweiss Mutual fund14. Escorts Mutual fund,15. Franklin Templeton Mutual fund16. Fidelity Mutual fund17. Goldman Sachs Mutual fund18. HDFC Mutual fund,19. HSBC Mutual fund20. ICICI Securities Fund,21. IL & FS Mutual fund,22. ING Mutual fund,23. ICICI Prudential Mutual fund24. IDFC Mutual fund,25. JM Financial Mutual fund26. JP Morgan Mutual fund27. Kotak Mahindra Mutual fund,29. LIC Mutual fund31. Morgan Stanley Mutual fund32. Mirae Asset Mutual fund33. Principal Mutual fund34. Quantum Mutual fund,35. Reliance Mutual fund36. Religare AEGON Mutual fund37. Sahara Mutual fund,38. SBI Mutual fund39. Shriram Mutual fund40. Sundaram BNP Paribas Mutual fund,41. Taurus Mutual fund42. Tata Mutual fund,43. UTI Mutual fund INVESTMENT STRATEGIES1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA)2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund.3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month.

WHY INVESTOR NEEDS MUTUAL FUND :-

Mutual funds offer benefits, which are too significant to miss out. Any investment has to be judged on the yardstick of return, liquidity and safety. Convenience and tax efficiency are the other benchmarks relevant in mutual fund investment. In the wonderful game of financial safety and returns are the tows opposite goals and investors cannot be nearer to both at the same time. The crux of mutual fund investing is averaging the risk.

Many investors possibly dont know that considering returns alone, many mutual funds have outperformed a host of other investment products. Mutual funds have historically delivered yields averaging between 9% to 25% over a medium to long time frame. The duration is important because like wise, mutual funds return taste bitter with the passage of time. Investors should be prepared to lock in their investments preferably for 3 years in an income fund and 5 years in an equity funds. Liquid funds of course, generate returns even in a short term.

MUTUAL FUND RISK:-

Mutual funds face risks based on the investments they hold. For example, a bond fund faces interest rate risk and income risk. Bond values are inversely related to interest rates. If interest rates go up, bond values will go down and vice versa. Bond income is also affected by the changes in interest rates. Bond yields are directly related to interest rates falling as interest rates fall and rising as interest rates. Similarly, a sector stock fund is at risk that its price will decline due to developments in its industry. A stock fund that invests across many industries is more sheltered from this risk defined as industry risk.Followings are glossary of some risks to consider when investing in mutual funds:-

COUNTRY RISK :- The possibility that political events (a war, national election), financial problems (rising inflation, government default), or natural disasters will weaken a countrys economy and cause investments in that country to decline.

INCOME RISK :- The possibility that political events (a war, national election), financial problems (rising inflation, government default), or natural disasters will weaken a countrys economy and cause investments in that country to decline.

MARKET RISK :- The possibility that stock fund or bond fund prices overall will decline over short or even extended periods. Stock and bond markets tend to move in cycles, with periods when prices rise and other periods when prices fall.

GRAPH 1.3:- RISK RETURN REWRAD IN MUTUAL FUND

This graph shows risk and return impact on various mutual funds. There is a direct relationship between risks and return, i.e. schemes with higher risk also have potential to provide higher returns

ABOUT SBI MUTUAL FUND

CORPORATE PROFILEOur IdentityWith 28 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.Our VisionTo be the most preferred and the largest fund house for all asset classes, with a consistent track record of excellent returns and best standards in customer service, product innovation, technology and HR practices.Our ServicesMutual FundsInvestors are our priority. Our mission has been to establish Mutual Funds as a viable investment option to the masses in the country. Working towards it, we developed innovative, need-specific products and educated the investors about the added benefits of investing in capital markets via Mutual Funds.Today, we have been actively managing our investor's assets not only through our investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors.This makes us one of the largest investment management firms in India, managing investment mandates of over 5.4 million investors.Portfolio Management and Advisory ServicesSBI Funds Management has emerged as one of the largest player in India advising various financial institutions, pension funds, and local and international asset management companies.We have excelled by understanding our investor's requirements and terms of risk / return expectations, based on which we suggest customized asset portfolio recommendations. We also provide an integrated end-to-end customized asset management solution for institutions in terms of advisory service, discretionary and non-discretionary portfolio management services.Offshore FundsSBI Funds Management has been successfully managing and advising India's dedicated offshore funds since 1988. SBI Funds Management was the 1st bank sponsored asset management company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with an objective to provide our investors with opportunities for long-term growth in capital, through well-researched investments in a diversified basket of stocks of Indian Companies.

MANAGEMENT TEAMMr. Dinesh Kumar KharaMD & CEOMr. Philippe BatchevitchDeputy CEO

Mr. L. PattabhiramanExecutive Director & Chief Operating OfficerMr. Navneet MunotExecutive Director & Chief Investment Officer

Mr. R. S. Srinivas JainExecutive Director & Chief Marketing Officer (Strategy and International Business)Mr. D. P. SinghExecutive Director & Chief Marketing Officer (Domestic Business)

Ms. Aparna NirgudeChief Risk OfficerMr. Rakesh KaushikSenior Vice President(Accounts & Administration)

Ms. Vinaya DatarCS & Compliance OfficerMr. Rohidas NakasheHead - Customer Service

BOARD OF DIRECTORS - AMCMs.Arundhati BhattacharyaChairman and Associate DirectorMr. Dinesh Kumar KharaManaging Director & CEO

Mr. Shishir JoshipuraIndependent DirectorMr. Vellur Gopalaraghavan KannanIndependent Director

Mrs. Madhu DubhashiIndependent DirectorMr. Fathi JerfelAssociate Director

Mr. Jashvant RavalIndependent DirectorMr. Philippe BatchevitchAlternate Director to Mr. Jerfel

Mr. Om Prakash GahrotraIndependent Director

Mr. Thierry Raymond MequilletAssociate Director

Dr. Prafulla AgnihotriIndependent Director

DISTRIBUTION NETWORKWe had 30,500 AMFI certified Agents as on 31st March, 2014 as against 31,083 AMFI certified Agents as on 31st March, 2013. The number of AMFI certified Agents came down as several Agents did not renew their ARNs and New Agents enrolment also came down due to changed regulatory environment making retail IFA model unviable. The number of AMFI certified employees in State Bank Group, however, increased to 20,491 as on 31st March, 2014 from 20,166 as on 31st March, 2013. As on 31st March, 2014, SBI Mutual Fund had 29 Investor Service Centres, 122 Investor Service Desks, 8 Investor Service Points and 1 Overseas Points of presence.

Schemes Of SBI Mutual Fund

A. Equity Schemes B. Debt & Liquid Schemes

A. Equity Schemes SnapShot :SBI BlueChip FundSBI Magnum Balance Fund\SBI Magnum Global FundSBI Magnum MidCap FundSBI Magnum TaxGain SchemeASBI Contra FundSBI Magnum Multiplier FundSBI Magnum MultiCap FundSBI Magnum Comma FundSBI Emerging Businesses FundSBI FMCG FundSBI I.T FundSBI Small and Midcap FundSBI Gold Fund4 Most Preferable Schemes :SBI BlueChip Fund: (an open ended growth scheme) Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 1 year from the date of allotment ---_1% After 1 year from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

SBI Magnum Balance Fund: ( an Open ended Balanced Scheme)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 12 months from the date of allotment ---_1% After 12 months from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 yearSBI Contra Fund: ( Open ended Equity fund)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 1 year from the date of allotment ---_1% After 1 year from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: a minimum Rs.1500 and in multiples of Re 1 thereafter for minimum 1 year.

SBI Magnum Tax Gain Scheme: (Open ended Equity Linked Savings Scheme)Minimum investment: Rs 500 & in multiples of Rs 500 Additional Investement: Rs 500 & in multiples of Rs 500Exit Load: NIL Plans Available : Regular & DirectSIP : Rs 500 and in multiples of Rs 500

SBI Magnum MultiCap Fund: (an Open Ended Growth Scheme)Minimum investment: Rs 1000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: NIL (w.e.f. September,01,2014Plans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re1 thereafter for minimum 1 yearSBI Small and MidCap Fund: (Open Ended Equity Scheme):Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 1 year from the date of allotment ---_1% After 1 year from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

B. Debt & Liquid Schemes:SBI Magnum Monthly Income PlanSBI Magnum Income FundSBI Magnum Children Benefit PlanSBI Ultra Short term Debt FundSBI Short term Debt FundSBI Savings FundSBI Dynamic Bond Fund SBI Regular Savings FundSBI Corporate Bond FundSBI Magnum Gilt Fund-Short Term PlanSBI Magnum Gilt Fund-Long Term PlanSBI Inflation Indexed Bond Fund Preferable Debt & Liquid Schemes:SBI Short term Debt Fund: ( an Open ended income scheme)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 90 days from the date of allotment ---_0.25% After 90 days from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

SBI Magnum Childerns benefit plan: (Open ended income scheme)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load:within 1 year 3% within 2 years 2%, within 3 years -1% . above 3 years_ NIL After 12 months from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

SBI Magnum Income Fund: (an open ended Debt Scheme) :Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 1 year from the date of allotment ---_ For 10% of investment_ NIL For remaining investment 1% For exit after 1 year from the date of allotment NIL Plans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

SBI Savings Fund: (an Open ended Debt Fund)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: within 3 business days from the date of allotment 0.10 %For exit after 3 business days from the date of allotment NIL After 12 months from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

SBI Regular Savings Fund: (Open ended income scheme)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 1 year from the date of allotment ---_1% After 1 year from date of allotment : NilPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 yearSBI Corporate Bond Fund (An open ended debt fund)Minimum investment: Rs 5000 & in multiples of Re 1 Additional Investement: Rs 1000 & in multiples of Re 1Exit Load: For exit within 12 months from the date of allotment ---_3% After 12 months within 24 months from date of allotment : 1.5%For exit after 24 months but within 36 months from the date of allotment 0.75%For exit after 36 months from the date of allotment _ NILPlans Available : Regular & DirectSIP : Monthly : a minimum Rs 1000 for minimum 6 months or minimum Rs 500 for minimum 1 yearQuaterly: Minimum Rs 1500 and in multiples of Re 1 thereafter for minimum 1 year

Essential Documents Required for Mutual Funds:Application FormThis is the most basic requirement. If you wish to start a systematic investment plan (SIP), you need to fill in two forms. One to open an account with the mutual fund and the other to specify your SIP details such as frequency, monthly instalment amount, and so on.If you are investing afresh in a mutual fund (MF) scheme, both the above mentioned forms are necessary. KYC And PAN CardEffective 1 January, know-your-client (KYC) norms have been made mandatory for everyone who wishes to invest in an MF. All you need to do is to submit your KYC acknowledgement along with your MF investment form. You no longer need to submit copies of your Permanent Account Number (PAN) card since your KYC-compliance proves that you already have PAN. Before KYC was made mandatory for all, you needed to submit your PAN card copy if your investment amount was Rs 50,000 (KYCs minimal threshold limit at that time) or below.Visitwww.cvlindia.comand click on Inquiry on KYC. A small window will pop up on your screen that will ask for your PAN card number. Fill it up and submit. If your KYC is approved, you will get a notification on the screen saying so. You need to take a printout of it as proof.

Blank ChequeTypically, a blank cancelled cheque is not mandatory when you start your SIP these days. But if you wish to start an SIP straightaway without investing the minimal amount, its best that you give a cancelled blank cheque to facilitate an electronic clearing system (ECS) mandate. This is to ensure that your cheque details like the magnetic ink character recognition (MICR) code, Indian Financial System Code (IFSC), apart from your account number and others are appropriately captured. This is required for opening an SIP. However, if you are investing an amount by giving a cheque and wish to start an SIP starting from the next month, your first investment cheque is enough, even if you give both the forms together.For MinorsIf you wish to invest in the name of a minor, you need to fill in a third-party declaration form. Only parents are allowed to invest on behalf of their children. Documents that establish the parents relationship with the child should be submitted; for example, a passport. If the child has no parents in case of an eventuality, then a court-appointed guardian can invest if necessary documentary proof is submitted to establish the relationship between the minor child and the guardian.

Once the KYC is formed,a folio no is generated to the customer.

OBJECTIVES AND SCOPE OF THE STUDY OBJECTIVES OF THE STUDY1. The analyze the awareness level of investors of mutual funds.2. An attempt has been made to measure various variables playing in the minds of investors in terms of safety, liquidity, service, returns, and tax saving.3. To get insight knowledge about mutual funds4. To know the awareness of mutual funds among different groups of investors. 5. To find out the Preference of the investors for Asset Management of company.6. To know why one has invested in SBI Mutual Funds.7. To find out the most preference channel.8. To find out what should do to boost Mutual Fund Industry.9. To study the general criteria for investing and applying in Mutual Funds.SCOPE OF THE STUDYA big boom has been witnessed in Mutual Fund Industry in resent times. A large number of new players have entered the market and trying to gain market share in this rapidly improving market. The study will help to know the preferences of the customers, which company, portfolio, mode of investment, option for getting return and so on they prefer. This project report may help the company to make further planning and strategy.

RESEARCH METHODOLOGYMy research project has a specified framework for collecting the data in an effective manner. Such framework is called RESEARCH DESIGN. The research process which was followed by me consisted following steps.

A. PROBLEM:The problem at hand was to study and measure the awareness level of people regarding mutual funds in the city.B. DEVELOPING THE RESEARCH PLAN :A descriptive Research Design method was applied for the project.

The development of Research Plan has the following Steps:1. DATA SOURCES: Two types of data were taken into consideration i.e. Secondary data & primary data. My major emphasis was on gathering the primary data. The secondary data has been used to make things more clear.(i) Primary Data: Direct collection of data from the source of information, technology including personal interviewing, survey etc.(ii) Secondary Data: Indirect collection of data from sources containing past or recent past information like Banks Brochures, Annual publications, Books, Fact sheets of mutual funds, Newspaper & Magazines etc.

2. RESEARCH INSTRUMENT A questionnaire was constructed for my survey. Questionnaire consisting of a set of questions made to be filled by various respondents.

3. SAMPLING PLANThe sampling plan calls for three decisions.a) Sampling Unit: I have completed my survey in Jammu City, J&Kb) Sample Size: The sample consisted of 50 respondents. The sample was drawn from walk in customers of SBI MUTUAL FUND. The selection of the respondents was done on the basis of simple random sampling.c) Contact MethodsI have contacted the respondents through personal communication.

C. COLLECTING THE INFORMATIONAfter this, I have collected the information from the respondents with the help of questionnaire.

D. ANALYZE THE INFORMATIONThe next step is to extract the pertinent findings from the collected data. I have tabulated the collected data & developed frequency distributions. Thus the whole data was grouped aspect wise and was presented in tabular form. Thus, frequencies & percentages were prepared to render impact of the study.

E. PRESENTATIONS OF FINDINGSThis was the last step of the survey.

DATA ANALYSIS & INTERPRETATION

1) Do you invest your saving in mutual fund? (Investment Willingness)InvestmentNumber Of Respondents

Yes34

No16

Total50

We observe that 68% of all the respondents invest in mutual fund. We have got 32% of our total respondents who do not invest in any mutual fund at all.

2) Do you have complete information about mutual fund? (Awareness Level)InformationNumber Of Respondents

Yes28

No12

Not Much10

Total50

We observe that 56% of all the respondents have complete information of mutual funds. We have got 24% of our total respondents who do not have complete information of mutual fund at all and 20% of our total respondents have some information of mutual fund.

3) Are you an investor, who is interested in getting good deduction from tax? (Interested in Tax Deduction)InformationNumber Of Respondents

Yes45

No5

Total50

We observe that 89% of all the respondents are interested in getting good deduction from tax. We have got 11% of our total respondents who are not interested in getting good deduction from tax at all.

InvestmentNumber Of Respondents

Yes 38

No12

Total50

4) Do you know mutual fund is a good instrument of tax saving? (Awareness for Tax saving)

We observe that 76% of all the respondents knows mutual fund is a good instrument of tax saving. We have got 24% of our total respondents who are mutual fund is a good instrument of tax saving.

5) Among which of the following income group you fall? (Income Group)Income groupNumber Of Respondents

Upto 1,00,00012

1,00,001-2,00,00030

2,00,001-3,00,0005

3,00,001 & more3

TOTAL50

We observe that 25% of all the respondents fall under income group of less than 1,00,000. We have got 60% of our total respondents fall under income group of 1,00,001-2,00,000 and 10% of our respondents fall under income group of 2,00,001-3,00,000 while 5% of our respondents fall under income group of 3,00,000 & more.

6) Which are the investments you hold at present? (Investment Holding)InvestmentNumber Of Respondents

Equity market10

Mutual fund27

Govt. bond0

Real estate4

Bank FD24

Post office13

Insurance22

(in terms of percentage)

We observed that many respondents invest in more than one instrument of saving. The people are not channelizing all of their savings in just one Investment Avenue.

7) What is the Basic purpose of your investments? (Purpose for Investment)Investment purposeNumber Of Respondents

High return10

Tax benefit9

Saving22

Wealth creation5

Risk diversification3

Total50

(graph shown in terms of percentage)We observe that 20% of all the respondents Invest for the purpose of high return, 18% Invest for the purpose of tax benefit, 45% Invest for the purpose of saving, 10% Invest for the purpose of wealth creation , 7% Invest for the purpose of risk diversification.

8) What returns do you receive at present from all your investments? (Returns from Investment)

Investment ReturnsNumber Of Respondents

Less than 5%2

5%-10%32

10-15%10

15%-20%3

Greater than 20%3

Total50

(pie chart shown in terms of percentage)We observe that 3% of all the respondents get less than 5%, 65% of all the respondents get between 5%-10%, 20% of all the respondents get between 10%-15%, 7% of all the respondents get between 15%-20% and 5% of all the respondents get more than 20%.

9) Which types of funds would you like to prefer for your investment in mutual fund? (Fund Preference)

Investment preferenceNumber Of Respondents

Equity fund32

Debt fund6

Balanced fund12

Total50

(pie chart shown in terms of percentage)We observe that 64% of all the respondents prefer investment in equity fund, 12% of all the respondents prefer investment in Debt fund, and remaining 24% of all the respondents prefer investment in balanced fund.

10) Give your preference for tax saving plan of SBI Mutual Funds ? (SBI Tax saving Plan)

Investment Preference for SBINumber Of Respondents

Most preferred6

Favorably preferred8

Preferred22

Least preferred6

Not preferred8

Total50

(graph shown in terms of percentage)We have observed that a large number of investors prefer SBI tax plan.

RECOMMENDATIONS AND SUGGESTIONS Customer education of the salaried class individuals is far below standard. Thus Asset Management Companys need to create awareness so that the salaried class people become the prospective customer of the future. The target market of salaried class individual has a lot of scope to gain business, as they are more fascinated to Mutual Funds than the self employed. Schemes with high equity level need to be targeted towards self employed and professionals as they require high returns and are ready to bear risk. Salary class individuals are risk averse and thus they must be assured of the advantage of risk diversification in Mutual Funds. There should be given more time & concentration on the Tier-3 distributors. The resolution of the queries should be fast enough to satisfy the distributors Time to time presentation/training classes about the products should be there. There should be more number of Relationship Managers in different Regions because one RM can handle a maximum of 125 distributors efficiently and also to cover untapped market. Regular session should be organized on the handling of the india infoline software so as to resolve the account statement problem. All the persons who have cleared the AMFI exam should be empanelled with Mutual Fund so as to be largest distributor base.

CONCLUSIONSThese were my objectives of my project

To get an insight knowledge about mutual funds

Understanding the different ratios & portfolios so as to tell the distributors about these terms, by this, managing the relationship with the distributors

To know the mutual funds performance levels in the present market

To know the awareness of mutual funds among different groups of investors.

To evaluate consumer feedback on mutual funds

Finding out ways and means to improve on the services by SBI Mutual Funds.

I satisfied my objectives of the project in the following manner

1. Complete insight knowledge about the mutual funds were mentioned in the project

2. Different ratios with complete graphical representation were explained in the project

3. To know the performance levels of the project I have done the comparative analysis of the project using the four major leading mutual fund companies using different parameters.

4. To know the consumer awareness I have done the survey using different customers so as to analyze the views about the mutual funds and perception of the customer in the present scenario.

4. To evaluate the ways and means to improve SBI Mutual Funds. I have mentioned various suggestions that are listed above

QUESTIONNAIRE

Dear Sir/Madam,

I, Rajat Koul, being the student of M.S. PATEL INSTITUTE OF MANAGEMENT STUDIES, UNIVERSITY OF VADODRA pursuing MBA, doing an internship on a Project with title A STUDY OF SBI MUTUAL FUNDS.

I therefore request you to kindly fill the questionnaire below that would enable me to complete the said project and I assure you that the data generated shall be kept confidential.

Name: Age: Below 20 21-30 31-44 45 aboveGender: Male Female Place of Domicile: Rural UrbanHighest Educational Qualification: Matriculate Higher Secondary Graduate Post Graduate

Q.1. Do you invest your saving in mutual fund? (Investment Willingness) YES NO

Q.2. Do you have complete information about mutual fund? (Awareness Level) YES NO NOT MUCH

Q.3. Are you an investor, who is interested in getting good deduction from tax? (Interested in Tax Deduction) YES NO

Q.4. Do you know mutual fund is a good instrument of tax saving? (Awareness for Tax saving) YES NO

Q.5. Among which of the following income group you fall? (Income Group) YES NO

Q.6 Which are the investments you hold at present? (Investment Holding) Equity Market Mutual Funds Govt. Bonds Real Estate Bank FDs Post Office Insurance

Q. 7. What is the Basic purpose of your investments? (Purpose for Investment) High Return Tax Benefit Savings Wealth Creation Risk Diversification

Q. 8. What returns do you receive at present from all your investments? (Returns from Investment) Less than 5% 5%-10% 10%-15% 15%-20% Greater than 20%

Q.9. Which types of funds would you like to prefer for your investment in mutual fund? (Fund Preference) Equity Fund Debt Fund Balanced Fund

Q.10. Give your preference for tax saving plan of SBI Mutual Funds ? (SBI Tax saving Plan) Mostly Preferred Favourably Preferred Preferred Least Preferred Not Preferred

BIBLIOGRAPHYBooks Handbook of SBI Mutual Funds

Websites https://en.wikipedia.org/wiki/Mutual_fund https://www.sbimf.com/AboutUs.aspx https://www.sbimf.com/Downloads/Product_Brochures.aspx http://www.moneycontrol.com/mutual-funds/amc-details/SB http://profit.ndtv.com/mutual-funds/sbimutualfund-amc-details_sbi http://www.indiainfoline.com/mutualfunds/fundhouses/sbi-mutual-fund/47408592

Journals Journal of Business Management, Commerce & Research Acomparitive study of SBI Mutual Funds & Unit Trust of India(http://www.jbmcr.org/pdf/JBMCR-DEC-13-04.pdf)