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ABSTRACT
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 capital
appreciation realized is shared by its unit holders in proportion to the number of units owned by
them. The term risk has a variety of meanings in business and everyday life. At its most general
level, risk is used to describe any situation where there is uncertainty about what outcome will
occur. Life is obviously very risky. Even the short term future is often highly uncertain. In
probability and statistics, financial management and investment management, risk is often used
in more specific sense to indicate possible variability of outcomes around some expected value.
This study aims to study the investor’s preference in selection of Mutual fund and measuring the
fund sponsor quality. A mutual fund is a common pool of money into which investors place their
contributions that are to be invested in accordance with a stated objective. Being a part of
financial markets although mutual funds industry is responding very fast by analyze investor’s
perception and expectations.
INDUSTRY PROFILE
Investors all over the world are making fast money from mutual fund investments. It's true that
mutual funds are volatile in nature and its return is subjected to market risk. But if you are a
smart investor and is also quite aware of the well-performing MF in the market, then investment
not only becomes easy but also profitable and risk free. Here is the list of top 10 mutual funds in
which one would like to invest in 2013, as they were top performing MF in the last 12 months, as
stated by Mutual Funds India.
1. ICICI Prudential Banking and Financial Services Fund - Retail
Type: Open Ended
Fund Manager: Venkatesh Sanjeevi
Launch Date: August 22, 2008
Fund Size (in Crore): 209.2 as on November 30, 2012
Minimum Investment (in ): 5000
It is an Open-ended equity scheme that seeks to generate long-term capital appreciation to unit
holders from a portfolio that is invested predominantly in equity and equity related securities of
companies engaged in banking and financial services. However, there can be no assurance that
the investment objective of the Scheme will be realized.
The Net Asset Value (NAV) for the scheme is 22.52 as on December 21, 2012. The 52 week
high value of the scheme is 22.86 as on December 19, 2012 and 52 week low value was 13.24
as on Deccember 30, 2011.
Since its inception, the Risk Return Value (RRV) has been 20.60 percent and for the month has
been 7.75 percent. The Earnings Per Share (EPS) is 15.90 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, IndusInd Bank, Mahindra
& Mahindra Financial Services, Union Bank Of India, Oriental Bank of Commerce, Yes Bank,
Federal Bank and ING Vysya Bank.
2. Reliance Media & Entertainment
Type: Open Ended
Launch Date: September 30, 2004
Fund Size (in Crore): 85.73 as on November 30, 2012
Minimum Investment (in ): 5000
The primary investment objective of the Scheme is to generate consistent returns by investing in
equity / equity related or fixed income securities of media & entertainment and other associated
companies.
The Net Asset Value (NAV) for the scheme is 38.59 as on December 21, 2012. The 52 week
high value of the scheme is 39.18 as on December 20, 2012 and 52 week low value was 24.44
as on January 2, 2012.
Since its inception, the Risk Return Value (RRV) has been 17.83 percent and for the month has
been 6.94 percent. The Earnings Per Share (EPS) is 21.63 as on November 2012.
The top holdings are Zee Entertainment Enterprises, Hathway Cable & Datacom, PVR, Hinduja
TMT, Sun TV, Jagran Prakashan, Dish TV India, Hindustan Media Ventures, HT Media and
Network 18 Media & Investments.
3. SBI Magnum Sector Funds Umbrella - FMCG
Type: Open Ended
Fund Manager: Saurabh Pant.
Launch Date: Jul 5, 1999
Fund Size (in Crore): 160.41 as on November 30, 2012
Minimum Investment (in ): 2000
To provide the investors maximum growth opportunity through equity investments in stocks of
growth oriented sectors of the economy. There are five sub-funds dedicated to specific
investment themes viz. Information Technology,Pharmaceuticals, FMCG, Contrarian
(investment in stocks currently out of favour) and Emerging Businesses.
The Net Asset Value (NAV) for the scheme is 49.38 as on December 21, 2012. The 52 week
high value of the scheme is 51.01 as on December 11, 2012 and 52 week low value was 31.95
as on January 2, 2012.
Since its inception, the Risk Return Value (RRV) has been 13.55 percent and for the month has
been 3.61 percent. The Earnings Per Share (EPS) is 38.76 as on November 2012.
The top holdings are ITC, Glaxo Smithkline Consumer, Hindustan Unilever, Agro Tech Foods,
United Spirits, Emami, Kansai Nerolac Paints, Procter and Gamble Hygiene & Healthcare, VST
Industries and Dabur India.
4. SBI Magnum Sector Funds Umbrella - Emerg Buss Fund
Type: Open Ended
Fund Manager: Rama Iyer Srinivasan.
Launch Date: September 17, 2004
Fund Size (in Crore): 1032.45 as on November 30, 2012
Minimum Investment (in ): 2000
To provide the investors maximum growth opportunity through equity investments in stocks of
growth oriented sectors of the economy. There are five sub-funds dedicated to specific
investment themes viz. Information Technology, Pharmaceuticals, FMCG, Contrarian
(investment in stocks currently out of favour) and Emerging Businesses. The investment
objective of the Emerging Business Fund would be to participate in the growth potential
presented by various companies that are considered emergent and have export
orientation/outsourcing opportunities or are globally competitive by investing in the stocks
representing such companies.The fund may also evaluate emerging businesses with growth
potential and domestic focus.
The Net Asset Value (NAV) for the scheme is 58.81 as on December 21, 2012. The 52 week
high value of the scheme is 59.50 as on December 19, 2012 and 52 week low value was 38.85
as on January 2, 2012.
Since its inception, the Risk Return Value (RRV) has been 23.91 percent and for the month has
been 5.32 percent. The Earnings Per Share (EPS) is 24.41 as on November 2012.
The top holdings are Spicejet, Muthoot Finance, Shriram City Union Finance, Kansai Nerolac
Paints, Goodyear India, Petronet Lng, VST Industries, Hawkins Cooker, Page Industries and
United Spirits.
5. Reliance Banking Fund - Regular - Growth
Type: Open Ended
Fund Manager: Sanjay Parekh and Shrey Loonkar
Launch Date: May 26, 2003
Fund Size (in Crore): 1899.07 as on November 30, 2012
Minimum Investment (in ): 5000
The primary investment objective of the Scheme is to seek to generate continuous returns by
actively investing in equity and equity related or fixed income securities of companies in the
banking sector.
The Net Asset Value (NAV) for the scheme is 117.37 as on December 21, 2012. The 52 week
high value of the scheme is 119.36 as on December 19, 2012 and 52 week low value was
74.83 as on December 29, 2011.
Since its inception, the Risk Return Value (RRV) has been 29.31 percent and for the month has
been 7.76 percent. The Earnings Per Share (EPS) is 14.03 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, Bajaj Finance, State Bank of India, Federal
Bank, Bank of Baroda, Axis Bank, Canara Bank, Oriental Bank of Commerce and ING Vysya
Bank.
6. Religare Banking
Type: Open Ended
Fund Manager: Amit Ganatra.
Launch Date: Jul 14, 2008
Fund Size (in Crore): 49.74 as on November 30, 2012
Minimum Investment (in ): 5000
The investment objective of the Scheme is to generate long-term capital growth from a portfolio
of equity and equity-related securities of companies engaged in the business of banking and
financial services.
The Net Asset Value (NAV) for the scheme is 23.39 as on December 21, 2012. The 52 week
high value of the scheme is 23.78 as on December 19, 2012 and 52 week low value was 15.07
as on December 30, 2011.
Since its inception, the Risk Return Value (RRV) has been 21.09 percent and for the month has
been 6.22 percent. The Earnings Per Share (EPS) is 17.02 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, Axis Bank, Jammu and Kashmir Bank, Karur
Vysya Bank, Federal Bank, Corporation Bank, ING Vysya Bank, Yes Bank and State Bank of
India.
7. GS Bank
Type: Open Ended
Fund Manager: Vishal Jain.
Launch Date: May 27, 2004
Fund Size (in Crore): 61.5 as on November 30, 2012
Minimum Investment (in ): 10000
To provide investment return that closely corresponds to the returns of the securities as
represented by the CNX Bank Index.
The Net Asset Value (NAV) for the scheme is 1,251.62 as on December 21, 2012. The 52 week
high value of the scheme is 1,271.48 as on December 19, 2012 and 52 week low value was
807.07 as on December 30, 2011-.
Since its inception, the Risk Return Value (RRV) has been 20.97 percent and for the month has
been 7.36 percent. The Earnings Per Share (EPS) is 19.64 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, Axis Bank, Kotak
Mahindra Bank, IndusInd Bank, Bank of Baroda, Yes Bank, Punjab National Bank and Canara
Bank.
8. Principal Emerging Bluechip
Type: Open Ended
Fund Manager: Dhimant Shah.
Launch Date: Nov 12, 2008
Fund Size (in Crore): 286.45 as on Nov 30, 2012
Minimum Investment (in ): 5000
The primary objective of the Scheme is to achieve long-term capital appreciation by investing in
equity & equity related instruments of mid cap & small cap companies.
The Net Asset Value (NAV) for the scheme is 33.13 as on December 21, 2012. The 52 week
high value of the scheme is 33.75 as on December 19, 2012 and 52 week low value was 21.74
as on December 29, 2011.
Since its inception, the Risk Return Value (RRV) has been 33.84 percent and for the month has
been 6.42 percent. The Earnings Per Share (EPS) is 22.81 as on November 2012.
The top holdings are Glaxo Smithkline Consumer, Amara Raja Batteries, Shree Cement, Divis
Laboratories, ICICI BANK, Jammu and Kashmir Bank, HCL Technologies, ING Vysya Bank,
Godrej Consumer Products and Apollo Tyres.
9. UTI Banking
Type: Open Ended
Fund Manager: Anoop Bhaskar and Arun Khurana
Launch Date: March 9, 2004
Fund Size (in Crore): 396.36 as on November 30, 2012
Minimum Investment (in ): 5000
Investment objective is "capital appreciation" through investments in the stocks of the
companies/institutions engaged in the banking and financial services activities.
The Net Asset Value (NAV) for the scheme is 47.87 as on December 21, 2012. The 52 week
high value of the scheme is 48.61 as on December 19, 2012 and 52 week low value was 30.65
as on December 30, 2011.
Since its inception, the Risk Return Value (RRV) has been 19.50 percent and for the month has
been 8.13 percent. The Earnings Per Share (EPS) is 16.23 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, State Bank of India, Axis Bank, IndusInd
Bank, Bank of Baroda, Canara Bank, Punjab National Bank, Oriental Bank of Commerce and
Vysya Bank.
10. Reliance Shares Banking Exchange Traded Fund
Type: Open Ended
Fund Manager: Krishan Daga.
Launch Date: Jun 24, 2008
Fund Size (in Crore): 12.32 as on November 30, 2012
Minimum Investment (in ): 5000
The investment objective of Reliance Banking Exchange Traded Fund (RBETF) is to provide
returns that, before expenses, closely correspond to the total returns of the securities as
represented by the CNX Bank Index. However, the performance of Scheme may differ from that
of the underlying index due to tracking error. There can be no assurance or guarantee that the
investment objective of RBETF will be achieved.
The Net Asset Value (NAV) for the scheme is 1,290.43 as on December 21, 2012. The 52 week
high value of the scheme is 1,310.79 as on December 19, 2012 and 52 week low value was
830.06 as on December 30, 2011.
Since its inception, the Risk Return Value (RRV) has been 20.95 percent and for the month has
been 7.47 percent. The Earnings Per Share (EPS) is 19.64 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, Axis Bank, Kotak
Mahindra Bank, IndusInd Bank, Bank of Baroda, Yes Bank, Punjab National Bank and Canara
Bank.
With 25 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.
Vision
“To 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.”
Services
Mutual Funds
Investors 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 Services
SBI 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 Funds
SBI 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.
FUND HOUSE EXPERTISE
Investment Expertise
The best investment strategies put together by the best minds, our Fund Managers. With a sharp
eye to monitor, gauge and understand the changes in the market, our fund managers and analysts
gear up to meet new challenging environments. Their ability to capture the growth potential of
Indian securities and manage complex portfolios as well as the drive to deliver optimum results
is their forte. With superior securities selection, incisive research, intensive coverage including
internal forecasts, active monitoring and regular tracking, our dedicated team ensures
minimization of risks while protecting our investor's interest. Always.
Investment Philosophy
Growth through innovation.
Our expert team of experienced and market savvy researchers prepare comprehensive analytical
and informative reports on diverse sectors and identify stocks that promise high performance in
the future.
What is innovation? Innovation is the process of turning ideas into concrete plans for progressive
growth. We always seek to provide our investors with opportunities for progressive growth
through our innovative products, superior stock selection and active portfolio management.
Accordingly, we also enhance and optimize asset allocation and stock selection based on internal
and external research. Derivatives are used to hedge and rebalance portfolios to keep the risk
factors at reasonable levels,
The three main phrases, which act as a guiding force for the investment performance, are as
follows:
Long-term capital appreciation for the investor: Our fund manager's view is not guided by
any momentum play but by the objective of generating sustainable performance for the
investor.
Superior stock selection: Our team is encouraged to be ahead of the rest of the industry in
terms of identifying new ideas & opportunities.
Active fund management: While the performance of all the funds is benchmarked against a
specific index, we do not encourage our investment team to replicate the index composition
with the fund portfolio.
Optimal Risk Management
Risk Management is an inherent part of any business. As one of the core focus areas, each of our
strategies is subject to close scrutiny on a continuous basis. Regulatory agencies around the
world are placing increasing pressure on institutions to measure and manage risk better. At SBI
Funds Management, we follow enterprise wide approach to risk management with a dedicated,
experienced and professional risk management team covering significant functions of the
organization. Risk Management focuses on:
Identifying actual and potential areas of risk
Assessing the adequacy of internal controls
Proposing risk mitigating measures and
Safeguarding investor interest through ongoing analysis and monitoring
Investment Objective
Setting benchmarks time and again. For our investors.
Our objective is to endeavor to outperform our benchmarks through well researched investments
in Indian equities. This is achieved by implementing an active management style based on
fundamental analysis, leading to the construction of a portfolio. It could be blended, large cap,
mid cap, or specific sector oriented - which aims at capturing the growth potential of Indian
equities.
INVESTMENT TEAM
Navneet Munot
Executive Director & Chief Investment Officer
Erwan Keraudy
VP – Investments
Fund Managers - Equity
R. Srinivasan
Head - Equities
Jayesh Shroff
Fund Manager
Sohini Andani
Fund Manager
Richard D’Souza
Fund Manager
Ajit Dange
Fund Manager
Ruchit Mehta
Fund Manager
Raviprakash Sharma
Chief Dealer & Fund Manager
Saurabh Pant
Fund Manager
Tanmaya Desai
Fund Manager
Neeraj Kumar
Dealer
Fund Managers - Fixed Income
Rajeev Radhakrishnan
Head - Fixed Income
Dinesh Ahuja
Fund Manager
R Arun
Fund Manager
Dinesh Balachandran
Fund Manager
Portfolio Management Services
Nipa Ladiwala
Vice President – PMS (Institutional)
Aashish Wakankar
Vice President – PMS (Offshore)
Amruth Rao
Senior Fund Manager – PMS (Debt)
TRUSTEES
SBI Mutual Fund Trustee Company Private Limited (the “Trustee”), through its Board of
Directors discharge its obligations as Trustee of the SBI Mutual Fund. The Board of Directors of
SBI Mutual Fund Trustee Company Private Limited are as under:
Shri T.L. Palani Kumar
Independent
Shri C.M. Dixit
Independent
Ms. Sandra Martyres
Associate
Ms. Bharati Rao
Associate
Mr. Krishnamurthy Vijayan
Independent
Mr. Shriniwas Joshi
Independent
BOARD OF DIRECTORS - AMC
Mr. Pratip Chaudhuri
Chairman & Associate Director
Mr. Deepak Kumar Chatterjee
Managing Director & CEO
Mr. Shishir Joshipura
Independent Director
Dr. H. Sadhak
Independent Director
Mrs. Madhu Dubhashi
Independent Director
Dr. H. K. Pradhan
Independent Director
Mr. Jashvant Raval
Independent Director
Mr. Fathi Jerfel
Associate Director
Mr. Thierry Raymond Mequillet
Associate Director
Mr. Philippe Batchevitch
Alternate Director to Mr. Jerfel
MANAGEMENT TEAM
Mr. Deepak Kumar Chatterjee
MD & CEO
Mr. Philippe
Batchevitch
Deputy CEO
Mr. K. T. Ravindran
Executive Director & Chief Operating Officer
Mr. Navneet
Munot
Executive Director
& Chief
Investment Officer
Mr. R. S. Srinivas Jain
Executive Director & Chief Marketing Officer (Strategy and
International Business)
Mr. D. P. Singh
Executive Director
& Chief Marketing
Officer (Domestic
Business)
Ms. Aparna Nirgude
Chief Risk Officer
Mr. Rakesh
Kaushik
Senior Vice
President (Account
s &
Administration)
Ms. Vinaya Datar
CS & Compliance Officer
Mr. C. A. Santosh
Head - Customer
Service
PRODUCTS
Every investor is unique.
At SBI Mutual Fund we know that every investor has unique financial goals and requires a
different set of products. Which is why, we have a wide range of schemes that fulfill every kind
of investors’ requirements. Each scheme is managed by devising a different strategy which is
reflective of the investors profile and carries with it different risks and rewards.
There are six basic asset classes, which we manage, and variations of these six asset classes form
various products:
EQUITY SCHEMES
The primary objective of the equity asset class is to provide capital growth / appreciation by
investing in the equity and equity related instruments of companies over medium to long term.
Equity/ Growth Funds
SBI Magnum Equity Fund
SBI Magnum Global Fund
SBI BlueChip Fund
SBI Magnum Multicap Fund
SBI Magnum Multiplier Plus 1993
SBI Magnum Midcap Fund
Sectoral Funds
SBI Emerging Businesses Fund
SBI Contra Fund
SBI FMCG Fund
SBI IT Fund
SBI Pharma Fund
Thematic Funds
SBI Magnum COMMA Fund
SBI Infrastructure Fund
SBI PSU Fund
ELSS Funds
SBI Magnum Taxgain Scheme 1993
SBI Tax Advantage Fund - Series I
SBI Tax Advantage Fund - Series II
Index Funds
SBI Nifty Index Fund
Market Neutral Strategy
SBI Arbitrage Opportunities Fund
DEBT / INCOME SCHEMES
The schemes in this asset class generally invest in fixed income securities such as bonds,
corporate debentures, government securities (gilts), money market instruments, etc. and provide
regular and steady income to investors.
SBI Magnum Children's Benefit Plan
SBI Magnum Income Fund Floating Rate Plan - Savings Plus Bond Plan
SBI Magnum Income Fund Floating Rate Plan - Long Term
SBI Magnum Income Fund
SBI Dynamic Bond Fund
SBI Magnum Gilt Fund - Short Term Plan
SBI Magnum Gilt Fund - Long Term Plan
SBI Short Term Debt Fund
SBI Ultra Short Term Debt Fund
LIQUID SCHEMES
The strategy for liquid funds include investments in short investment horizon, which includes
'cash' assets such as treasury bills, certificates of deposit and commercial paper.
SBI Magnum InstaCash Fund
SBI Magnum InstaCash Fund - Liquid Floater
SBI Premier Liquid Fund
These schemes invest in a mixture of debt and equity securities in different proportions as
prescribed in the Scheme Information Document.
SBI EDGE Fund
SBI Magnum Balanced Fund
SBI Regular Savings Fund
SBI Magnum Monthly Income Plan
SBI Magnum Monthly Income Plan - Floater
SBI Capital Protection Oriented Fund - Series II
SBI Capital Protection Oriented Fund - Series III
FIXED MATURITY PLANS
These are closed ended debt schemes with a fixed maturity date and they invest in debt & money
market instruments maturing on or before the date of the maturity of the scheme.
SBI Debt Fund Series 13 MONTHS 13
SBI Debt Fund Series 13 MONTHS 14
SBI Debt Fund Series 13 MONTHS 15
SBI Debt Fund Series 14 MONTHS 1
SBI Debt Fund Series 14 MONTHS 2
SBI Debt Fund Series 15 MONTHS 8
SBI Debt Fund Series 15 MONTHS 9
SBI Debt Fund Series 15 MONTHS 10
SBI Debt Fund Series 18 MONTHS 8
SBI Debt Fund Series 18 MONTHS 9
SBI Debt Fund Series 18 MONTHS 10
SBI Debt Fund Series 18 MONTHS 11
SBI Debt Fund Series 36 MONTHS 1
SBI Debt Fund Series 36 MONTHS 2
SBI Debt Fund Series 366 DAYS 1
SBI Debt Fund Series 366 DAYS 2
SBI Debt Fund Series 366 DAYS 3
SBI Debt Fund Series 366 DAYS 4
SBI Debt Fund Series 366 DAYS 5
SBI Debt Fund Series 366 DAYS 6
SBI Debt Fund Series 366 DAYS 7
SBI Debt Fund Series 366 DAYS 8
SBI Debt Fund Series 366 DAYS 9
SBI Debt Fund Series 366 DAYS 10
SBI Debt Fund Series 366 DAYS 11
SBI Debt Fund Series 366 DAYS 12
SBI Debt Fund Series 366 DAYS 13
SBI Debt Fund Series 366 DAYS 14
SBI Debt Fund Series 366 DAYS 15
SBI Debt Fund Series 366 DAYS 16
SBI Debt Fund Series 366 DAYS 17
SBI Debt Fund Series 366 DAYS 18
SBI Debt Fund Series 366 DAYS 19
SBI Debt Fund Series 366 DAYS 20
SBI Debt Fund Series 366 DAYS 21
SBI Debt Fund Series 366 DAYS 22
SBI Debt Fund Series 366 DAYS 23
SBI Debt Fund Series 366 DAYS 24
SBI Debt Fund Series 366 DAYS 25
SBI Debt Fund Series 366 DAYS 26
SBI Debt Fund Series 366 DAYS 27
SBI Debt Fund Series 60 MONTHS 1
SBI Debt Fund Series 60 MONTHS 2
SBI Debt Fund Series 60 MONTHS 3
EXCHANGE TRADED SCHEMES
Exchange Traded Funds/ Schemes (ETFs) are a basket of securities that are traded on the stock
exchange.
SBI Gold Exchange Traded Scheme
SBI SENSEX ETF
FUND OF FUNDS SCHEMES
A "Fund of Funds Scheme" means a mutual fund scheme that invests primarily in other schemes
of the same mutual fund or other mutual funds.
SBI Gold Fund
LITERATURE REVIEW
Mutual funds industry is a growing at a very fast rate India. Various studies and research has
been on this industry by experts. Here are the lists of few books that have been referred to for the
purpose of the study.
Mr. M. Jaidev in his book has “Investment policy and performance of Mutual Fund” has studied
the Indian Public Sector Mutual Funds. In this book he has covered risk, rate of return.
Investment policy and pricing of mutual funds. In this book he has done an empirical study
covering all aspects of mutual fund investment along with the regulatory framework.
Nalini Prava Tripathy in her book “Mutual Funds in India. Emerging Issues” provides a
detailed evaluation of investment management which is not only helpful for influencing
marketing operations but also for securities selection, investment research and timing and
resource allocation.
Dr H. Sadak in his book “Mutual Funds in India” has highlighted the importance of financial
institutions in India. The basically focuses on the growth and development of mutual funds in
India. The entire gamut of the theoretical aspects of the fund management has been critically
examined in the context of the performance of mutual funds and it provides an insight into fund
management and the areas of weakness.
Study by Laukkanen (2006) explains that varied attributes present in a product or service
facilitate customer’s achievement of desired end-state and the indicative facts of study show that
electronic services create value for customers in service consumption.
Brown & Goetzmann(1997) emphasis on mutual fund styles. Mutual funds are typically
grouped by their investment objectives or the ‘style’ of their managers. This approach is simple
to apply, yet it captures nonlinear patterns of returns that result from virtually all active portfolio
management styles. Classifications are superior to common industry classifications in predicting
cross-sectional future performance, as well as past performance, and also outperform
classifications based on risk measures and analogue portfolios. Interestingly, ‘growth’ funds
typically break down into several categories that differ in composition and strategy.
Syriopoulos (2002) gave its review on an analysis of investor’s risk perception towards mutual
funds services. Financial markets are constantly becoming more efficient by providing more
promising solutions to the investors. Being a part of financial markets although mutual funds
industry is responding very fast by analyze investor’s perception and expectations.
Spiegel (2004) covers analyzed the security returns follow linear factor model with constant
coefficients. This paper develops and estimates a Kalman filter statistical model to track time-
varying fund alphas and betas. Several tests indicate that relative to a rolling OLS model the
Kalman filter model produces more accurate fund factor loadings both in and out of sample.
Bergstresser (2007) stipulates that many investors purchase mutual funds through intermediated
channels, paying brokers or financial advisors for fund selection and advice. Brokers sold funds
exhibit no more skill at aggregate-level asset allocation than do funds sold through the direct
channel. Our results are consistent either with substantial non-tangible benefits delivered by the
brokerdistributed sector or with conflicts of interest between brokers and their clients.
Fama (2009) emphasis on the skills required for cross section of mutual funds returns. they
focuses on the aaggregate portfolio of U.S. equity mutual funds is close to the market portfolio,
but the high costs of active management show up intact as lower returns to investors. Bootstrap
simulations suggest that few funds produce benchmark adjusted expected returns sufficient to
cover their costs.
Ivković and weisbenner (2009) studied on Individual investor mutual fund flows. They studied
the relation between individuals mutual fund flows and funds characteristics, establishing three
key results. First, consistent with tax motivations, individual investors are reluctant to sell mutual
funds that have appreciated in value and are willing to sell losing funds. Second, individuals pay
attention to investment costs as redemption decisions are sensitive to both expense ratios and
loads.
Marco.et.al (2011) analysed the risk-taking behavior of a fund manager in response to prior
performance by conducting a comparative analysis between ethical and conventional investment
portfolios. The paper examined the influence on managerial risk taking of the compensation and
employment incentives.
Cederburg (2008) reviewed on the mutual fund investor behavior across the business cycle.
Mutual fund investor behavior changes across the business cycle. In economic expansions,
investors strongly display the documented behaviors of chasing returns and searching for
managerial skill. In contrast, recession investors do not chase returns and exhibit a weaker
tendency to seek alpha. Even before controlling for momentum, no smart money effect exists in
recessions.
Zhao (2004) reviewed fund families typically claim that closing a fund protects the fund superior
performance by preventing it from growing too large to be managed efficiently. Even though
funds with better performance and larger size are more likely to be closed, there is no evidence
that closing a fund can indeed protect its performance. Instead, fund closing decisions are more
likely to be motivated by spillover effects – by closing a star fund, the fund family signals its
superior performance and also bring investors attention and investments to other funds in the
family. Some evidence exists to suggest that the closing strategy is effective in generating higher
inflows into the rest of the family, at least in the short run.
REFERENCES
Brown & goetzmann (1997) Mutual fund styles. Journal of Financial Economics, Volume 43,
Issue 3, March 1997,Pages 373-399.
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