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A

Project Report
ON

“A STUDY OF VARIOUS MUTUAL FUND SCHEMES


OF STATE BANK OF INIDA”
(with special reference to Pandri Branch, Raipur)

Submitted in partial Fulfillment of the requirement for the award of


the degree of Bachelors of Commerce

2014-2015
SUBMITTED TO

SCHOOL OF BUSINESS STUDIES

PANDRI,RAIPUR

Guided By :- Submitted By :-

MRS.POOJA RATHI Vinita Madhwani


Assistant Professor(MSBS) B.com VI sem
ID No-MU12BCM105
MATS SCHOOL OF BUSINESS STUDIES MATS UNIVERSITY PANDRI RAIPUR (C.G.)
ACKNOWL ACKNOWLEDGMENT
“ACKNOWLEDGMENT”

It is my proud privilege to express my sincere gratitude to all those who


helped me directly or indirectly in completion of this project report. I am
greatly indebted to Mr. Madhusoodhana Sir for his support, guidance
and valuable suggestion by which this work has been completed effectively
and efficiently. This all contribution is of immense value I owe my heartiest
thanks to Mrs. Pooja Rathi whose continuous cooperation throughout
the study was unparallel. His charismatic attitude made this study joyful
and interesting & for his kind help by way of encouragement and valuable
guidance during entire course of study.

I shall be failing in my duty if I do not express my most sincere gratitude to


my parents, who were always constant source of inspiration. Last but not
the least we are indebted to those entire people who indirectly contribute
and without whom this work could not have been possible.

Endeavour has been made the project error free yet I apologies for the
mistakes.

(Vinita Madhwani)
B.COM 6th Sem
MATS University
Raipur (C.G)
“SELF CERTIFICATE”

This is to certify that the Project report entitled “ A Study of


various Mutual Fund Schemes of state bank of India” Done by
me is an authentic work carried out for the partial fulfillment
of the degree of bachelor of commerce. Under the guidance of
Mrs. Pooja Rathi. The matter embodied in this project work
has not been submitted earlier for award of any degree or
diploma to the best of knowledge and belief.

SIGNATURE OF STUDENT
NAME-Vinita Madhwani
ROLL NO-Mu12BcM105
“CERTIFICATE”

This is to certify that this Project entitled “ A study of Various


Mutual Fund Schemes of SBI” submitted in partial fulfillment
of the degree of Bachelor of Commerce to MATS School of
Business Studies, MATS University, Raipur, C.G, prepared
by “Vinita Madhwani”, ID -MU12BCM105 is a result of
sincere and authentic work carried out by him/her under
the guidance of Mrs.Pooja Rathi, faculty,MSBS, Submission
of this project is mandatory for award of his/her degree.

Date; Head of the department


MATS School of Business Studies
MATS University,Raipur,C.G.
“DECLARATION”

I Do hereby declare that this project report titled-


“A Study of various Mutual Fund Schemes of
State bank of India”
Is submitted to the “MATS School of Business study,Raipur
in the partial fulfillment of the requirements for the Degree
of “Bachelor of Commerce (2012-2015)”
In a bonafide work and the topic embodied has not been
submitted for the award of any other University or Institution
for any Degree or Diploma.
The data and the facts provided in the report are authentic to
the best of my knowledge.

Place; Raipur (C.G) Vinita Madhwani


Date:
“CERTIFICATE FROM GUIDE”

This is to certify that project entitled “A STUDY OF VARIOUS


MUTUAL FUND SCHEMES OFSTATE BANK OF INDIA
(with special reference to Pandir branch raipur).” Submitted in
partial fulfillment of the degree of Bachelor of Commerce to
MATS University, Raipur, done by Miss Vinita Madhwani, ID
NO. MU12BCM105 is an authentic work carried out by her under
my guidance. The matter embodied in this project work has not
been submitted earlier for award of any diploma to the best of my
knowledge and belief.

Signature of the Guide


“EXECUTIVE SUMMARY”

India is a developing economy and hence demands extensive investments across sectors, which are
expected to grow on the back of a strong economic outlookState bank of India mutual fund
investment objective is to achieve long-term capital appreciation through investments in privately
negotiated equity and equity-related investments in growth oriented emerging corporate and mid-size
enterprises for business expansions, acquisition financing, and buyout transactions. In my project, I
pointed all those points, which are basically related to retail investors.

My project guide has helped me as a guide throughout the project. During my summer training, I
gained knowledge about the process of mutual fund investment in various segments and most
important point is how to convince the customers.

My project is based on primary data as well as secondary data. For the collection of primary data, I
have prepared a questionnaire and on the basis of this I found the result. As a secondary data is
collected information’s regarding the banks and their future plans and investment avenues provided
by State bank.

The study in the first part gives brief introduction about the State Bank of India and about its product
and services. Further introduction to topic and objective of the study is enlisted. The second part of
the study consists of the research methodology part in which sources of data collection and tools and
techniques used are mentioned. Then finally, analysis and interpretation of the statements is done to
bring out findings and conclusions for the same.
During collection of data, I found some difficulties like customers had no time to give time or they
were too busy with their works and in most cases, they were not available at their places. There is
one thing I found that the people working at SBI are very much helpful in all areas. Every time they
come to me and told me that, they are available at any time for me for anything, which really boost
me and motivates me towards my goal and objectives.

I have completed my project work and gained lots of knowledge. After this project, my
confidence level has also increased and I found this saying right that nothing is
impossible in this world the only requirement is hard work and positive thinking.
“TABLE OF CONTENT”
Page No.

1 INTRODUCTION 1
2 OBJECTIVE OF STUDY 29

STATEMENT ABOUT THE PROBLEM 30


IMPORTANCE &SCOPE OF STUDY 37

4 RESEARCH METHDOLOGY 41

5 MAIN REPORT: 45
MUTUAL FUND SCHEMES
COMPERATIVE STUDY OF SCHEMES 49
PROVIDED BY SBI
6 FINDING & SUGGESTIONS 65

7 CONCLUSION 70

ANNEXURE - BIBILIOGRAPHY 71
-
CHAPTER - 1

“INTRODUCTION”
“COMPANYPROFILE“

The SBI Group

SBI is one of India's leading financial institutions, offering complete


financial solutions that encompass every sphere of life. From commercial banking,
to stock broking, to mutual funds, to life insurance, to investment banking, the
group caters to the financial need of individuals and corporate.
The group has a net worth of over US $ 29.728 billion 2010, employs around
200299 people in its various businesses and has a distribution network of branches,
franchisees, representative offices across 370 cities and towns in India and offices
in New York, London, Dubai and Mauritius. The Group services around 4.4
million customeraccounts.

“HISTORY OF SBI“
SBI MUMBAI MAIN BRANCH

The roots of the State Bank of India rest in the first decade of 19th century, when the
Bank of Calcutta, later renamed theBank of Bengal, was established on 2 June 1806.
The Bank of Bengal was one of three Presidency banks, the other two being the Bank
of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1
July 1843). All three Presidency banks were incorporated as joint stock companies and
were the result of theroyal charters. These three banks received the exclusive right to
issue paper currency in 1861 with the Paper Currency Act, a right they retained until
the formation of theReserve Bank of India. The Presidency banks amalgamated on 27
January 1921, and the reorganized banking entity took as its name: Imperial Bank
ofIndia. The Imperial Bank of India remained a joint stock company

Pursuant to the provisions of the State Bank of India Act (1955), the Reserve Bank
ofIndia, which is India's central bank, acquired a controlling interest in the Imperial
Bank of India. On 30 April 1955, the Imperial Bank of India became the State Bank of
India. The government of Indiarecently acquired the Reserve Bank of India's stake in
SBI so as to remove any conflict of interest because the RBI is the country's banking
regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act,
enabling the State Bank of India to take over eight former state-associated banks as its

subsidiaries. On 13 September 2008, the State Bank of Saurashtra, one of its associate
banks, merged with the State Bank of India.
“Our Corporate Identity”

Symbol and slogan

The symbol of the State Bank of India is a circle and not key hole and a small man at
the centre of the circle. A circle depicts perfection and the common man being the
centre of the bank's business.
Slogans
With you all the way
Pure banking nothing else
The Banker to every Indian
The Nation banks on us
“Associate banks”

SBI has FIVE associate banks:

 State Bank of Bikaner & Jaipur


 State Bank of Hyderabad
 State Bank of Mysore
 State Bank of Patiala
 State Bank of Travancore

Earliar SBI had only seven associate banks that constituted the State Bank Group. All
use the same logo of a blue keyhole and all the associates use the "State Bank of" name,
followed by the regional headquarters' name. Originally, the then seven banks that
became the associate banks belonged to princely states until the government
nationalized them between October 1959 and May 1960. In tune with the first Five
Year Plan, emphasizing the development of rural India, the government integrated
these banks into the State Bank of India system to expand its rural outreach. There has
been a proposal to merge all the associate banks into SBI to create a "mega bank" and
streamline operations
“SEGMENTS IN WHICH SBI DEALS”

SBI capital market limited(SBI capital)is an investment bank and project advisor in India . The
company offers a gamut of advisory services in almostall sectors of economy.SBI capital’s
operations are primarily divided into three groups,namely,Project Advisory & Structured
finance, The capital structure and M&A and Advisory. The company provides projectadvisory
and structured finance services to sectors like Energy, Telecom, Transportation, Urban
Infrastructure and Others. The Capital Market Group of SBI capital handles transactions in the
capital market space across multipleinstrument structure, which includes management of
takeovers, right issues and delisting offers. Through the M&A and Advisory segment, SBI
Capital provides fund raising services through private equity placement, foreign currency
convertible bonds (FCCBs), rights issue. It also advices and assists companies in domestic and
cross border M&A deals. In addition company also offers broking and financial engineering
services.SBI Capital a wholly owned subsidiary of State Bank of India, is headquartered in
Mumbai, India.

“SCOPE”

Provides essential information on financial deals, where company provided


financial/legal advisory services. The deals includes mergers and acquisitions,
asset financing, asset transactions, private equity / venture capital deals, equity
offerings, debt offerings, partnerships, and licensing agreements.

Outlines key advisor information of business intelligence needs e.g. name,


business over view, contacts, location and information.

Analyzes the advisor’s deals by year, deal type, segment and geography.

Provides detailed information on deal particular, including other advisors involved


in the deal.
Includes information on the role played by advisor in specific deals, and the extent
of fees/commission charged by the advisor in a particular transaction.

Consists of Deal Advised by Year chart and table displaying information on the
no. of deals and value reported by the advisor by year, for a five year period.

Incorporates information on the major resent financial deals of the advisor. Each
such deal carries a brief summary, deal type, deal rationale, deal financials and
target company’s keyfinancial metrics and ratio.

“SBI Securities”

SBI Securities Ltd., is one of India's largest brokerage and securities distribution house in India.
Over the years SBI Securities has been one of the leading investment broking houses catering to the
needs of both institutional and non-institutional investor categories with presence all over the country
through franchisees and co-coordinators. SBI Securities Ltd. offers online and offline services based
on well-researched expertise and financial products to the non-Institutional investors.
“MILESTONE”

1986 SBI Finance Limited starts the activity of Bill Discounting

1987 SBI Finance Limited enters the Lease and Hire Purchase market

1990 The Auto Finance division is started

1991 The Investment Banking Division is started. Takes over FICOM, one
of India’s largest financial retail marketing networks

1992 Enters the Funds Syndication sector

1995 Brokerage and Distribution businesses incorporated into a separate


company - SBI Securities. Investment Banking division incorporated
into a separate company - SBI Capital Company

1996 The Auto Finance Business is hived off into a separate company.SBI
takes a significant stake in Ford Credit SBI, for financing Ford
vehicles. The launch of Matrix Information Services Limited marks
the Group’s entry into information distribution.

1998 Enters the mutual fund market with the launch of SBI Asset
Management Company.

2000 SBI ties up with Old Mutual plc. for the Life Insurance business.
SBI Securities launches its on-line broking site (now
www.sbisecurities.com). Commencement of private equity activity
through setting up of SBI Venture Capital Fund.

2001 Matrix sold to Friday Corporation


Launches Insurance Services

2003 SBI. converts to a commercial bank – the first Indian company to do


so.

2004 Launches India Growth Fund, a private equity fund.

2005 SBI Group realigns joint venture in Ford Credit; Buys SBI Prime and
sells Ford credit SBI
Launches a real estate fund
2006 Bought the 25% stake held by Goldman Sachs in SBI Capital
Company and SBI Securities

Graphical Representation

AUM MARKET SHARE


DESCTIPTION VALUES
TOTAL AUM 8,410.81
QUATERLY AVERAGE OF SBI MUTUAL FUND 65,414
MARKET SHARE IN% 7.41

Board of Directors

S.NO NAME POST


Chairman / Chair Person /
1 Ms.Arundhati Bhattacharya
Associate Director

2 Mr. shishir Joshipura Independent Director

3 Mrs. Madhu Dubhashi Independent Director

4 Mr. Jashwant Rawal Independent Director

5 Mr. Thierry Raymond Mequillet Associate Director

6 Mr. S. Vishvanathan Associate Director

7 Mr.Dinesh Kumar Khara Managing Director& CEO

8 Dr. H. Sadhak Independent Director

Dr.H.K. Pradhan Independent Director


9

Mr.Fathi Jerfel associate Director


10

Alternate Director to Mr. Jerfel


11 Mr. Philippe Batchevitch
“AWARDS”

2012

ICRA mutual fund award 2012 for various schemes.

2011

Readers Digest Awards 2011 for Trusted Brand in Fund Management Category

ICRA Mutual Fund Awards 2011 for Magnum Income Fund - Floating Rate Plan -
Long Term Plan

2010

ICRA Mutual Fund Awards 2010 For Magnum Global Fund

2009

ICRA Mutual Funds Awards 2009 For Magnum Tax Gain Scheme 1993

The Lipper India Fund Awards 2009 For Various Schemes

2008
Outlook Money NDTV Profit Awards 2008

The Lipper India Fund Awards 2008 For Magnum Balanced Fund – Dividend

ICRA Mutual Fund Awards 2008 For Various Schemes

2007

Outlook Money NDTV Profit Awards 2007

CNBC Awaaz Consumer Awards 2007

The Lipper India Fund Awards 2007 For Various Schemes

ICRA Mutual Funds Awards 2007 For Various Schemes

CNBC TV18 - CRISIL Mutual Fund of the Year Award 2007 For Various Schemes
“Recent Awards and Recognitions”

 Best Online Banking Award, Best Customer Initiative Award & Best Risk
Management Award (Runner Up) by IBA Banking Technology Awards 2010
 The Bank of the year 2009, India (won the second year in a row) by The Banker
Magazine
 Best Bank - Large and Most Socially Responsible Bank by the Business Bank Awards
2009
 Best Bank 2009 by Business India
 The Most Trusted Brand 2009 by The Economic Times
 Most Preferred Bank & Most preferred Home loan provider by CNBC
 Visionaries of Financial Inclusion By FINO
 Technology Bank of the Year by IBA Banking Technology Awards
 SKOCH Award 2010 for Virtual corporation Category for its e-payment solution

“ABOUT STATE BANK OF INDIA”

State Bank of India


Public
NSE: SBIN
Type BSE: 500112
LSE: SBID

Banking
Industry Financial services

1 July 1955
Founded

Mumbai, Maharashtra, India


Headquarters

Pratip Chaudhuri
Key people (Chairman)

Investment Banking
Consumer Banking
Commercial Banking
Retail Banking
Private Banking
Products 16
Asset Management
Pensions
Mortgages
Credit Cards

INR200,560Crores
Revenue

$5.507 Billion
Operatingincome

INR 17,916 Crores


Profit
INR 15,66,261 Crores
Total assets

INR 98,884 Crores


Total equity

295,696
Employees

www.sbi.co.in
Website

State Bank of India (SBI) (NSE: SBIN, BSE: 500112, LSE: SBID) is the largest
Indianbanking and financial services company (by turnover and total assets) with
its headquarters in Mumbai, India. It is state-owned. The bank traces its ancestry to
British India, through the Imperial Bank of India, to the founding in 1806 of the
Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent.
Bank of Madras merged into the other two presidency banks, Bank of Calcutta and
Bank of Bombay to form Imperial Bank of India, which in turn became State Bank
of India. The government of India nationalized the Imperial Bank of India in 1955,
with the Reserve Bank of India taking a 60% stake, and renamed it the State Bank
of India. In 2008, the government took over the stake held by the Reserve Bank of
India.

SBI provides a range of banking products through its vast network of branches in
India and overseas, including products aimed at non-resident Indians (NRIs). The
State Bank Group, with over 16,000 branches, has the largest banking branch
network in India. It also has around 130 branches overseas. With an asset base of
$352 billion and $285 billion in deposits, it is a regional banking behemoth and is
one of the largest financial institution in the world. It has a market share among
Indian commercial banks of about 20% in deposits and loans.

The State Bank of India is the 29th most reputed company in the world according
to Forbes.[3] Also SBI is the only bank featured in the coveted "top 10 brands of
India" list in an annual survey conducted by Brand Finance and The Economic
Times in 2010.[4]

The State Bank of India is the largest of the Big Four banks of India, along with
ICICI Bank, Punjab National Bank and HDFC Bank—its main competitors.[5] .
“REVENUE SHEET”
“Products & Services”

Personal Banking

-SBI Term Deposits SBI Loan For Pensioners

-SBI Recurring Deposits Loan Against Mortgage Of Property

-SBI Housing Loan Against Shares & Debentures

-SBI Car Loan Rent Plus Scheme

-SBI Educational Loan Medi-Plus Scheme

-Other Services

-Agriculture/Rural Banking

-NRI Services

-ATM Services

-Demat Services

-Corporate Banking

-Internet Banking

-Mobile Banking

-International Banking
-Safe Deposit Locker

-RBIEFT

-E-Pay

-E-Rail

-SBI Vishwa Yatra Foreign Travel Card

-Broking Services

-Gift Cheques

“Vision of SBI Mutual Fund”

- SBI Life reported PAT of Rs.144cr for 1QFY2012, registering growth of 26.8%
yoy. According to management, SBI Life stood at the No. 1 position with a market
share of 19.8% in private insurance business as of May 2011.

- SBI Capital Markets registered a sharp 46.5% yoy decline in PAT to Rs.84cr
during 1QFY2012, reflecting the poor capital market activity.

- SBI Cards and Payment Services posted PAT of Rs.13cr as compared to PAT of
Rs.3cr in 1QFY2011.

- SBI DFHI recorded PAT of Rs.5cr.

- SBI Funds Management’s average quarterly AUM increased by 15% as compared


to industry’s growth of 6%, leading to improvement in market share to 6.44%.
- SBI Pension Fund’s AUM grew by 53.4% yoy to Rs.4,210cr.

- During 1QFY2012, the overall SBI Group recorded a 25.3% yoy decline in net
profit to Rs.2,512cr due to fall in SBI’s profits.

“SBI Funds Management Private Limited”

Key Information
SBI Mutual Fund
Mutual Fund

Jun-29-1987
Setup Date

Feb-07-1992
IncorporationDate

Sponsor State Bank of India

SBI Mutual Fund Trustee Company Private


Trustee Limited

Ms.Arundhati Bhattcharya
Chairman

Mr. Deepak Kumar Chatterjee


CEO / MD

Mr. Navneet Munot


CIO

Compliance Ms. Vinaya Datar


Officer

Investor Service Mr. C A Santosh


Officer

Rs. 47874.46 crore (Jun-30-2012)


Assets Managed
Other Details

Haribhakti & Co / M/S. Chandabhoy & Jassoobhoy


Auditors

Bank of Nova Scotia / City Bank / HDFC Bank / Stock


Custodians Holding Corporation of India

Computer Age Management Services Pvt. Ltd,


Computronics Financial Services (I) Ltd, Datamatics
Registrars
Financial Software Services Ltd

Address 191 Maker Tower E, Cuffe Parade, Mumbai - 400005.

Telephone 022 - 22180221-27


Nos.

022 – 22189663
Fax Nos.

partnerforlife@sbimf.com
E-mail
“FACILITIES OF STATE BANK OF INDIA”

At-Home services Use our At-Home services to make your Utility Bill payments like
electricity, telephone, mobile phone bills etc. You can also get your documents picked
up from your business place. This facility is available at select cities absolutely free of
cost!
Free investment account Use the Net Banking facility to purchase/redeem mutual funds
online while directly debiting / crediting your bank account. Further, you get a free
investment account for tracking your investments with the Bank. This account provides
you a consolidated view of all your mutual fund investments across schemes with
updated returns status, latest NAV information and research reports.
Transfer money to any VISA credit/debit card in India
An experienced Free research team to analyze and research the Mutual Funds available
in the market
Portfolio assistance
Efficient depository services that allow you to hold your shares in convenient "demat"
formats.
Leverage opportunities in the stock-market when you spot them.
Carefully selected insurance policies to suit your needs.
Experts to help you analyze your insurance needs and develop the solution that works
best for you.
24 carat pure gold coins and bars carrying a 99.99% Assay Certification
Unique number on every credit card, with records maintained in Switzerland.
“SWOT ANALYSIS OF SBI”

Strengths:
Rich experience of the management.
Stabilized and loyal clients.
Skilled and tactful staff.

Weakness:
Insufficient branches and ATMs
Low awareness
Less customer’s contacts.
Work place (back office) is congested

Opportunities:
Stability through increased brand awareness, market penetration and service offerings.
Across all categories of financial services.
Increase in customer’s wallet share.
Leveraging the latest technology for providing quality and client centric services.
Growth in economy would lead to higher demand for credit.

Threats:
Increasing interest rate scenario.
Execution risk.
Competition from local and multinational players.
Rising inflation could reduce savings and investments
Rising crude oil prices.
\
“MAJOR COMPETITORS”

HDFC MUTUAL FUND

TATA MUTUAL FUND

REALIENCE MUTUAL FUND

DSP Blade Rock MUTUAL FUND

KOTAK MUTUAL FUND

PRINCIPAL MULUAL FUND

Sundram BNP Paribus MUTUAL FUND

Franklin Templeton MUTUAL FUND

Birla Sun Life MUTUAL FUND


“chapter-2”

“OBJECTIVES & PROBLEMS OF THE


STUDY”
“INTRODUCTION”
I like to introduce my project as “Study of Mutual Fund Schemes”

A Mutual Fund is a type of Professionally managed investment fund that pools money from
many investors to purchase Securities. While there is no Legal definition of the term mutual
Fund.

It is most commomly applied only to those collective investment vehicles that are regulated
and sold to the general Public They are sometimes referred to as “Investment Companies”.

In this project, first part is the study of Mutual Fund Investment products available for the customers
of SBI in present context 2014-15 is based on secondary data; second part is the analysis of the
behavior pattern of the customers towards the mutual Fund investment, which is fully based on
primary data. Here I also tried to analyze the attitude of the investors towards SBI.

I have also prepared one questionnaire for getting more result that is appropriate and tried to provide
some solutions and suggestion. I have also mentioned limitations of my project work. I have also
prepared a swot analysis chart to find out the position of State Bank of India.

“OBJECTIVE OF THE STUDY”

To find out & analyze the need/requirement of investors/customers.


To analyze whether customers are aware of & utilizing the product and services
provided by SBI.
To access whether the investment account of SBI is beneficial and helping the
customers to increase their wealth.
To properly track the wealth creation products & being advised to the correct target
segment/aud”ience.
To find whether customers are satisfied with SBI as an investments.
To know about the mutual fund.
To Study the various schemes offered by SBI mutual fund.
To study in which schemes the investor invests the most.
To study what are the factors
affecting Mutual fund choice of Investor.

“STATEMENT ABOUT THE PROBLEM”

There are different Mutual Funds Companies (Asset Management Companies) in


markets and each company has many schemes. Investors finds very difficult to choose
appropriate schemes according to his risk appetite.
Introduction to Investment Bank Services:

Banking and Investment Services


Investment bankers function as intermediaries in financial transactions. They are experienced in
carrying out projects that, for most companies, take place very rarely, but are critically important.

The role of the Investment Bank

Investment banks provide four primary types of services: raising capital, advising in mergers and
acquisitions, executing securities sales and trading, and performing general advisory services. Most
of the major Wall Street firms are active in each of these categories. Smaller investment banks may
specialize in two or three of these categories.

Raising Capital

An investment bank can assist a firm in raising funds to achieve a variety of objectives, such as to
acquire another company, reduce its debt load, expand existing operations, or for specific project
financing. Capital can include some combination of debt, common equity, preferred equity, and
hybrid securities such as convertible debt or debt with warrants. Although many people associate
raising capital with public stock offerings, a great deal of capital is actually raised through private
placements with institutions, specialized investment funds, and private individuals. The investment
bank will work with the client to structure the transaction to meet specific objectives while being
attractive to investors.

Mergers and Acquisitions

Investment banks often represent firms in mergers, acquisitions, and divestitures. Example projects
include the acquisition of a specific firm, the sale of a companyor a subsidiary of the company, and
assistance in identifying, structuring, and executing a merger or joint venture. In each case, the
investment bank should provide a thorough analysis of the entity bought or sold, as well as a
valuation a stock, placing new offerings, and publishing research reports.

General Advisory Services:


Advisory services include assignments such as strategic planning, business valuations, assisting in
financial restructurings, and providing an opinion as to the fairness of a proposed transaction.

Who needs an Investment Bank?

Any firm contemplating a significant transaction can benefit from the advice of an investment bank.
Although large corporations often have sophisticated finance and corporate development
departments, an investment bank provides objectivity, a valuable contact network, allows for
efficient use of client personnel, and is vitally interested in seeing the transaction close. Most small
to medium sized companies do not have a large in-house staff, and in a financial transaction may be
at a disadvantage versus larger competitors. A quality investment-banking firm can provide the
services required to initiate and execute a major transaction, thereby empowering small to medium
sized companies with financial and transaction experience without the addition of permanent
overhead.

What to look for in an Investment Bank

Investment banking is a service business, and the client should expect top-notch service from the
investment-banking firm. Generally, only large client firms will get this type of service from the
major Wall Street investment banks; companies with less than about $100 million in revenues are
better served by smaller investment banks. Some criteria to consider include:

Services Offered

For all functions except sales and trading, the services should go well beyond simply making
introductions, or "brokering" a transaction. For example, most projects will include detailed industry
and financial analysis, preparation of relevant documentation such as an offering memorandum or
presentation to the Board of Directors, assistance with due diligence, negotiating the terms of the
transaction, coordinating legal, accounting, and other advisors, and generally assisting in all phases
of the project to ensure successful completion.

Experience

It extremely important to make sure that experienced, senior members of the investment banking
firm will be active in the project on a day-to-day basis. Depending on the type of transaction, it may
be preferable to work with an investment bank that has some background in your specific industry
segment. The investment bank should have a wide network of relevant contacts, such as potential
investors or companies that could be approached for acquisition.

Record of Success

Although no reputable investment bank will guarantee success, the firm must have a demonstrated
record of closing transactions.

Ability to Work Quickly

Often, investment-banking projects have very specific deadlines, for example when bidding on a
company that is for sale. The investment bank must be willing and able to put the right people on the
project and work diligently to meet critical deadlines.

Fee Structure

Generally, an investment bank will charge an initial retainer fee, which may be one-time or monthly,
with the majority of the fee contingent upon successful completion of the transaction. It is important
to utilize a fee structure that aligns the investment bank's incentive with your own.

Ongoing Support

Having worked on a transaction for your company, the investment bank will be intimately familiar
with your business. After the transaction, a good investment bank should become a trusted business
advisor that can be called upon informally for advice and support on an ongoing basis.

Because investment banks are intermediaries, and generally not providers of capital, some executives
elect to execute transactions without an investment bank in order to avoid the fees. However, an
experienced, quality investment bank adds significant cant value to a transaction and can pay for its
fee many times over.

The investment banker has a vested interest in making sure the transaction closes, that the project is
completed in an efficient time frame, and with terms that provide maximum value to the client. At
the same time, the client is able to focus on running the business, rather than on the day-to-day
details of the transaction, knowing that the transaction is being handled by individuals with
experience in executing similar project
“Indian Banking”

Banking has become one of the most challenging sectors in the country. The Indian banking can be
broadly categorized into Nationalized (government owned), Private Banks and Specialized banking
institutions. The Reserve Bank of India acts a centralized monitoring body in the Indian financial
sector. The different types of banks in India are State Bank of India and Associates Nationalized
Banks, Domestic Private Sector, New Domestic Private Sector Banks, Foreign Banks.

Banking provides well-paid, secure and satisfying career prospects. Openings are available in these
banking at various levels, from Bank Clerical to Probationary Officers (PO). Often it is perceived as a
career option for commerce/economics students, but in reality, a majority of bank officers is from
different streams of education. Bright graduates from any subject can get entry in the Public Sector
Banks through an All India Examination conducted by them. The exam is a stepping-stone for a
career in the Banking Industry.

State Bank of India (SBI) is the largest bank of India in terms of profits, assets, deposits branches and
employees, investment, NRI deposit schemes etc. The State Bank of India Recruitment Examination
is held by Central Recruitment Department (State Bank Group) Madhuli, 2nd Floor, H/2 Shiv Nagar
Estate, Dr. Annie Besant Road, Worli, Mumbai-400018.Tel: 022-26445525 , 26445524 Fax: 022-
24935025 .

This examination is for recruitment of Probationary Officers, Specialist Officers and Clerical grade
staff in State Bank of India and its associate banks: State Bank of Bikaner & Jaipur, State Bank of
Hyderabad, State Bank of Indore, State Bank of Mysore, State Bank of Patiala, State Bank of
Suarastra, State Bank of Travancore. There is reservation of posts for SC/ST, Ex-Servicemen and
OBC etc.
“INDIAN BANK ASSOCIATI0N”

The Indian Banks Association (IBA) was formed on the 26th September, 1946 with 22 members.
Today IBA has more than 156 members comprising of Public Sector banks, Private Sector banks,
foreign banks having offices in India, Urban Co-operative banks, Developmental financial
institutions, Federations, merchant banks, mutual funds, housing finance corporations, etc.

The functioning of IBA

 To promote sound and progressive banking principles and practices.

 To render assistance and to provide common services to members.

 To organize co-ordination and co-operation on procedural, legal, technical, administrative


and professional matters.

 To collect, classify and circulate statistical and other information.

 To pool together expertise towards common purposes such as reduction in costs, increase in
efficiency, productivity and improve systems, procedures and banking practices.

 To project good public image of banking through publicity and public relations.

 To encourage sports and cultural activities among bank employees.

Banking services in India

With years, banks are also adding services to their customers. The Indian banking industry is passing
through a phase of customers market. The customers have more choices in choosing their banks. A
competition has been established within the banks operating in India.

With stiff competition and advancement of technology, the service provided by banks has become
more easy and convenient. The past days are witness to an hour wait before withdrawing cash from
accounts or a cheque from north of the country being cleared in one month in the south.
“CHAPTER – 3”

“IMPORTANCE AND SCOPE OF STUDY”


“SCOPE”

• To tap the future market.


• To know about the future competition by understanding their unit wise sales.
• To know about the sales potential.
• To find out the expectations of the consumers about the products.
• To study the factors affecting on SBI mutual fund services.
• To retain the existing user and to convert the new prospects into buyers.

“IMPORTANCE”

If mutual fund is emerging as the favorite investment vehicle, it is because of many


Importances it has over the forms and avenues of investing, particularly for the investor
who has limited resources available in terms of capital and ability to carry out detailed
research and market monitoring. The following are major importance offered by mutual
funds to all investors.

Portfolio Diversification: Mutual Funds normally invest in a well-diversified portfolio


of securities. Each investor in a mutual fund is a part owner of all of the fund’s assets.
This enables him to hold a diversified investment portfolio even with a small amount of
investment, which would otherwise require big capital.

Professional Management: Even if an investor has a big amount of capital available to


him, he benefits from the professional management skills brought in by the fund in the
management of investor’s portfolio.
Reduction/Diversification ofRisk: An investor in a mutual fund acquires. A diversified
portfolio, no matter how small his investment. Diversification reduces the risk of loss,
as

compared to investing directly in one or two shares or debentures or other instruments.

Reduction of Transaction Costs: What is true of risk is also true of the transaction costs.
A direct investor bears all the costs of investing such as brokerage or custody of
securities.

Liquidity: Often, investors hold shares or bonds they cannot directly, easily and quickly
sell. Investment in a mutual fund, on the other hand, is more liquid.

Convenience and flexibility: Mutual fund management companies offer many investors
cannot get.
CHPTER- 4

“RESEARCH METHODOLOGY”
Research methodology is the way to systematically solve the research problem. Research in common
refers to a search of knowledge. Infect research is an art of scientific investigation. According to the
advanced learning dictionary, “research is a careful investigation of inquiry especially for finding”.
In it we study the various steps that are generally adopted by the researcher in study of his research
problem along with logic behind them. It is necessary for the researcher to know the research method
and techniques.
So, research, methodologies adopted in this project are as follows:

According to Clifford Woody research compises definig and redefing

problems,formulating hypothesis or suggested,solution,collecting,organizing and

evaluating data,making deductions and reaching conclusions, and at last carefully

listing the conclusions to determine whether they fit the formulating hypothesis.

“Purpose of the study”

To study about the whole banking area of State Bank of India. Moreover, to take
feedback of the existing customers through which banks strength and weakness will be
find out.

Sources of data

The task of data collection begins after a research problem has been defined are
research design
chalked out. While deciding about the method of data collection to be used for the
study, the
researcher should keep in mind two types of data that is primary and secondary.

Secondary source

Various books, broachers, company’s website, project reports etc where used as
secondary source.

Sample Techniques

The subject research methodology is teaching several sampling techniques for the
research. here I have selected the method sample random sampling. The reason for
choosing this method is that the process of drawing a sample from population is such a
way that each number of populations has an equal chance of being included in the
sample. This method is free from personal bias also. As I was supposed to take out the
information without any biased opinion i.e. without any impact of personal view on
sample and so analysis will also be unbiased this is the main reason why I selected this
method other then these I could find few other advantage also for this method and they
are as follows:
 Suitable for population, this is comparatively small.
 A list of all elements in the population values very accurately.

STATISTICAL TECHNIQUES:

Percentage method technique of central tendency was used by researcher in the analysis
of the data in this research. Percentage refers to a special kind of ratio. Percentage is
used in making comparison between two or more series of data. Percentages are used to
describe relationships. Such a measure is considered as the most representative figure
for the entire mass of data.
Execution of project:

It is very important step in the research process. According it findings depends on how
systematically the study has been cased out in the time so that it can make some sense
when required. I have executed the project after prior discussion with the guide and
structure in following steps.
1. preparation of questionnaire
2. Visiting the customers and asking them about the service they all availing from State
Bank of India. Try to find out the satisfaction level with the existing customers.
CHAPTER – 5

“MUTUAL FUND SCHEMES”


“Introduction of Mutual Fund”

Mutual fund now represents perhaps the most appropriate investment opportunityfor
most small investors. A mutual fund uses the money collected from investors to buy
those assets which are specifically permitted by its stated investment objective.
In INDIA mutual fund is constituted as a ‘Trust’ and the investor the subscribes ‘Units’
issued by the fund, hence the term unit trust comes into the picture.
Mutual fund, form of a Management investment company that combines the money of
its shareholder and invests those funds in a wide variety of stocks, bonds, and so-called
money market instruments. The latter include short term investment such as United
States Treasury bills and other federal securities, commercial paper, and bank
certificate of deposits. Mutual funds provide the investor with professional
management of funds and diversification of investment among the securities offered by
leading corporations, federal and state governments, and other entities.
What Is Mutual Fund?

In a mutual fund, many investors contribute to form a common pool of money. This
pool of money is invested in accordance with a stated invested objective. The
Ownership of the fund is thus joint or “mutual”; the fund belongs to all investors. A
single investor’s Ownership of the fund is in the same proportion as the amount of the
Contribution made by him bears to the total amount of the fund.
When a person buys “shares” of a joint stock company, the purchase makes the
investors a part owner of the company and its assets. In the same way, when an investor
subscribes to a mutual fund, he becomes part owner of fund assets. In fact, in U.S.A., a
mutual is constituted as an investment company and an investor “buy into the fund”,
meaning he buys the share of the fund. In India, a mutual a mutual fund is constituted
as a Trust and the investor subscribes to the “units” of a scheme launched by the fund,
which is where the term Unit Trust comes from. However, whether the investor gets
fund shares or units is only a matter of legal distinction. In any case, a mutual fund
shareholder or units-holder is a part owner of the fund’s assets. The term unit-holder
includes investors in both the open-end and the closed-.end schemes.
THE HISTORY OF MUTUAL FUNDS IN INDIA

The mutual fund industry in India began with the setting up of the Unit Trust in India
(UTI) in 1964 by the government of India. During the last 36 years, UTI has grown to
be a dominant player in industry with asset of over Rs. 45,899 crores as of December
31, 2002. The UTI is governed by a special legislation, the Unit Trust of India Act,
1963. In 1987 public sector banks and insurance companies were permitted to set up
mutual funds and accordingly since 1987, 6 public sector banks have set up mutual
funds. Also the two insurance companies LIC and GIC established mutual funds.
Securities exchange board of India (SEBI) formulated the mutual fund (regulation)
1993, which for the first time established a comprehensive regulatory framework for
mutual fund industry. Since then several mutual funds have been set up by the private
and joint sectors.
1987 marked the entry of other public sector mutual funds. With the opening up of the
Economy, many public sector banks and financial institutions were allowed to establish
mutual funds. SBI established the first non-UTI mutual fund-SBI Mutual fund-in
November 1987. This was followed by Can bank Mutual fund, LIC Mutual fund,
Indian Bank mutual Fund, and PNB Mutual Fund. These funds helped in enlarging the
investor community and the investible funds.
Organization of mutual fund industry:
The organization of mutual fund operation in India envisages a six tier
establishment namely:
1. A sponsor institution to promote the fund.
2. A term of trusties to oversee the operations and to proved checks for efficient, 3.
3. Profitable. and transparent
4. An Asset Management company (AMC) to actually deal with the fund.
5. A custodian (care taker).
6. A transfer agent.
7. A trusty company
49

COMPARATIVE STUDY OF SCHEMES

• Sponsor:

The companies, which set up the mutual funds, are called the sponsor. The SEBI has
laid certain criteria to be met by the sponsor. These criteria mainly deal with adequate
experience, net worth, good past track record, etc

• Trustees:

Trustees are the people with experience and full integrity in their fields. They carry out
the crucial responsibility of safeguarding the interest of the investor. They keep an eye
on
the operation of different schemes. They have powers and they even dismiss the asset
management company with the approval of SEBI.

• Asset management companies:

The Asset Management Companies manage the fund of various schemes. The AMC’s
professionals make investment carry out research. The success of any mutual fund
depends upon the efficiency of AMC. The AMC submit a quarterly report on the
functioning of the mutual fund to the trustee who guide and control AMC.

• Custodian:

Custodian (caretaker) is the appointed by the board of trusty for safe keeping of
securities or participating in any clearing system through approved depository
companies on behalf of mutual fund and must fulfill its responsibility in accordance
with its agreement with mutual fund. The custodian should be an entity independent of
the sponsors and its requires to be registered with SEBI.

*Transfer agent:

The organization, that handle sales and redemption of the fund shares, maintains
shareholder records, computes the fund’s Net Asset Value (NAV) of each day and pays
dividend and capital gain distribution.

• Trustee company:

The sponsors appoint the trustee company to supervise dealing of the AMC. The trusty
are responsible for complains of legal aspect by the AMC.
Growth of mutual funds:
The Indian mutual fund has passed three phases. The first phase was between 1964 and
1967 and the only player was unit trust of India, which had a total asset of Rs. 6700
crores at the end of 1988. The second phase is between 1987 and 1993 during which
period 8 funds were established (6 by bank and one each by LIC and GIC). The total
asset under management has grown to Rs. 61028 crores at the end of 1994 and the
number of schemes was 167.

The third phase began with the entry of private and foreign sector in mutual fund
industry in 1993. Kothari pioneer mutual fund was the first fund to be established by
the private sector in association with a foreign fund. Today it is renamed as Franklin
Templeton mutual fund.
As at the end of financial year 2000 (31st march) 32 funds were functioning with Rs.
1132005 crores as total asset under management. As on August end 2000, there were
33 funds with 391 scheme and assets under management with Rs. 102849 crores.
The securities and exchange board of India came out with comprehensive regulation in
1993, which defines the structure of mutual fund and asset management companies for
the first time. Several private sectors mutual funds were launched in 1993 and 1994. the
share of private players has risen rapidly since then.

Types of mutual fund scheme:

• Open ended scheme:

These schemes have no specific closing date. They are open for investment and exit in
any time.
• Close ended scheme:

These schemes are open for a specific period of time. The scheme windup by repairing
the money collected along with gain, if any, to the investor.

• Money Market funds:

These schemes invest in the securities like treasury bills; commercial paper issued by
companies, certificates of deposit issued by bank and in money market (inters market).

• Balance fund:

These schemes invent both in equity and depth in a variable ratio, which is generally 40
% in equity and 60 % in dept or vice versa. The objective of this scheme is to provide
some amount of appreciation from investment in equity and at the same time income
from investment in debt.

• Debt income fund:

This scheme invests in debt instruments issued by the government, banks, financial
institution and companies. The objective is to earn a well- mannered and Gilt fund
regular income.
In this scheme investment is done in government securities, having maturity nearly in
one year.

Index fund:
This scheme invests in companies, a which are list in stock market index, in same
proportion, as they constitute in the index.

• Sector fund:
These schemes invest in to a specific sector of market such as FMCG sector, IT sector,
PHARMA sector and COMMODITY sector.

• Children scheme:
This schemes objective is for saving for children. These schemes invest both in debt
and in equity.

MUTUAL FUND PROVIDED BY SBI

\An introduction to SBI Mutual Funds

SBI Mutual Funds are an Indian-based mutual fund. In operation since 1977, the SBI
fund is one of India’s premier investment products. With a network of over 200 points
of acceptance throughout India, this fund has very good national coverage, and is well
worth considering as a potential investment vehicle.

SBI mutual fund was setup on June 29th, 1987 and incorporated on February 7th, 1992.
It is a result of joint venture between State Bank of India and Societe Generale Asset
Management of France. This is a bank sponsored mutual fund and has a base of 3.5
million investors (approx). Over the years it has carved a niche for itself through
prudent investment decisions and consistent wealth creation for its customers. They
offer Mutual Fund products in Equity Funds, Index Funds, Balanced Funds, Debt
Funds, etc.

The assets under management are Rs 33,727.90 crores as of June, 30, 2010.
About SBI Mutual Fund:

SBI Fund Management Private Limited, investment managers for SBI Mutual Fund, is
a joint venture between State Bank of India and Société Générale Asset Management –
France, is amongst the leading Asset Management Companies in India with total Assets
under Management (AUM) at Rs 20272 crores as on June 30, 2007 (source:
www.amfiindia.com).

The Equity schemes of SBI Mutual Fund have performed well and have consistently
scored over the respective benchmark indices in the long term. SBI Mutual Fund has
won 12 awards this year including “CNBC TV-18 Crisil Mutual Fund of the Year
2007” and 5 CNBC TV-18 Crisil Awards for our schemes, 3 ICRA Mutual Fund
Awards and 3 Lipper Mutual Fund Awards. SBI Mutual Fund has also won the CNBC
Awaaz Consumer Award 2006 for being the Most Preferred Mutual Fund.

SBI Mutual Fund has an investor base of over 35 Lacks spread over 40 schemes. With
a large network of over 26 Investor Service Centers, 33 Investor Service Desks and 52
District Organizers covering over 100 points of acceptance, the fund house constantly
endeavors to get closer to its growing family of investors.

Some of the various mutual funds offered by SBI mutual fund are discussed
below

• SBI Arbitrage Opportunities Fund: Open-ended Equity Fund with growth and
dividend option. With no entry load, the minimum investment required is Rs. 25000.

• SBI Magnum Balanced Fund: Open-ended Equity & Debt Fund with growth and
dividend option. The minimum investment is Rs. 1000 but there is an entry load of
2.25% for investments below 5 crores.

• SBI Magnum Blue Chip Fund: Open-ended Equity Scheme along with dividend and
growth option. The minimum required investment is Rs. 5000 and has an entry load of
2.25% for investments below 5 crores.

• SBI Magnum Children's Benefit Plan: Open-ended Income Scheme with a face
value of Rs.10 and the minimum investment required is Rs. 1500. The entry load is
1.5%.

• SBI Magnum COMMA Fund: Open-ended Equity Scheme having a dividend and
growth option. The minimum investment needed is Rs. 5000 and the entry load of
2.25% for investments below 5 crores is applicable.

• SBI Magnum Contra Fund: Open-ended Equity Scheme having a dividend and
growth option. The minimum investment needed is Rs. 2000 and the entry load of
2.25% for investments below 5 crores is applicable.

• SBI Magnum Emerging Businesses Fund: Open-ended Equity Scheme having a


dividend and growth option. The minimum investment needed is Rs. 2000 and the entry
load of 2.25% for investments below 5 crores is applicable.

57

• SBI Magnum Equity Fund: Open-ended Diversified Equity Fundhaving a dividend


and growth option. The minimum investment needed is Rs. 1000 and the entry load of
2.25% for investments below 5 crores is applicable.

• SBI Magnum FMCG Fund: Open-ended Equity Schemewith a face value of Rs.10.
The minimum investment needed is Rs. 1000 and the entry load of 2.25% for
investments below 5 crores is applicable.

• SBI Magnum Gilt Fund Long Term Plan: Open-ended Gilt Scheme with quarterly
dividend option and growth option. As far as minimum investment is concerned, it is
Rs. 25000/- and in multiples of Rs. 5000/- thereafter for the Growth option. Rs.
1,00,000/- and in multiples of Rs. 5000/- thereafter for dividend option.

• SBI Magnum Gilt Fund Short Term Plan: Open-ended Gilt Scheme with monthly
dividend option and growth optionwith minimum investmentRs. 25000/- and in
multiples of Rs. 5000/- thereafter for the Growth option. Rs. 1,00,000/- and in multiples
of Rs. 5000/- thereafter for dividend option.

• SBI Magnum Global Fund: Open-ended Equity Scheme with Growth & Dividend
Option with a minimum investment of Rs.2000and the entry load of 2.25% for
investments below 5 crores is applicable.

• SBI Magnum Income Fund: Open-ended Debt Scheme with a face value of Rs. 10
and minimum investment of Rs. 2000 and no entry load.

• SBI Magnum Income Plus Fund Investment Plan: Open-ended Income Scheme
with dividend and growth option and a minimum investment ofRs.25000 with zero
entry load.

• SBI Magnum Income Plus Fund Saving Plan: Open-ended Income Scheme with
dividend and growth option. The minimum investment required is Rs.25000 with zero
entry load.
• SBI Magnum Index Fund: Open-ended Index Fundwith Growth & Dividend Option
with a minimum investment of Rs.5000 and the entry load of 1.25% for investments
below 50lakhs is applicable.

• SBI Magnum Insta Cash Fund: Open-ended Liquid Income Fund with daily
dividend plan, dividend plan & cash plan. With a minimum investment of Rs. 10000,
there is no entry load.

The first mutual fundto be introduced in India was way back in 1963 when the
Government of Indialaunched Unit Trust of India (UTI). UTI enjoyed a monopoly in
the Indian mutual fund market till 1987 when a host of other government controlled
Indian financial companies came up with their own funds. These included State Bank
of India, Canara Bank, Punjab National Bank etc. This market was made open to
private players in 1993 after the historicconstitutional amendments brought forward by
the then Congress led government under the existing regime of Liberalization,
Privatization and Globalization(LPG). The first private sectorfund to operate in India
was Kothari Pioneer which was later merged with Franklin Templeton.

“Milestone”

Mumbai: SBI Mutual Fund has crossed Rs 20,000-crore mark in assets under
management (AUM) as on 30 June, 2007.

According to a release the AUM of SBI MF stood at Rs 20,272 crore as on June 30 and
it is placed sixth among existing fund houses. SBI Mutual funds Achieves Milestone

While commenting on the milestone achieved Syed Shahabuddin, Managing Director


and CEO, SBI Mutual Funds stated, “SBI Mutual Fund's excellent run is a reflection of
the fund house's ability to understand the needs of investors and introduce products
suited to their needs.”

SBI MF has an investor base of over 35-lakh spread over 40 schemes.

SBI Mutual Fund (SBI MF) is one of the leading mutual funds in the country. It has
more than 3.45 million investors. With more than 19 years of rich experience in fund
management, SBI MF brings ahead its proficiency in systematically delivering value to
its investors.

SBI Mutual Fund draws its intensity from India’s biggest banking institution State
Bank of India and Société Générale Asset Management, France.

SBI Mutual Funds customers

SBI Mutual Funds have a variety of institutional customers such as financial


institutions, pension funds, as well as local and international asset management
companies. On top of this, they also specialise in dedicated offshore funds, which are in
operation since 1988. In this regard, SBI was the first Indian bank to launch such a
product. Finally, SBI Mutual Funds also boast a considerable number of private
investors who take advantage of their portfolio of services.

SBI Mutual Funds offerings

Equity
The goal of the equity asset class is to bring about capital growth and appreciation. It
endeavours to achieve this by investing in equity, and various equity related
instruments of companies over both medium and long term periods.

SBI equity funds:

· Equity growth funds.


· Thematic funds.
· Index funds.
· Sectorial funds.
· ELSS funds.
· Market neutral strategy.

Hybrid

These schemes involve a mixture of debt and equity securities combined in various
proportions, depending upon the needs of the investor.

Hybrid funds:

·
Magnum Balanced Fund.
· Magnum NRI Investment Fund-Flexi Asset Management Fund.
· Magnum Income Plus Fund-Investment plan.
· Magnum Monthly Income Plan/Floater plan.
· SBI Capital Protection Orientated Fund Series I and II.

Debt

The debt schemes invest in various income securities such as bonds, government
securities (Gilts), money market instruments and corporate debentures.

Debt funds:
· Magnum Children’s Benefits Fund.
· Magnum Income Plus Fund-Saving Plan.
· Magnum Income Fund Floating Rate-Savings Plus Bond Plan and Long Term Plan.
· Magnum Income Fund.
· SBI Dynamic Bond Fund.
· Magnum Gilt Fund-Short Term and Long Term plans.
· SBI Short Horizon Debt Fund-Short Term and Ultra-Short Term Fund.

Exchange traded schemes

ETF’s are a mixed portfolio of securities traded on the stock market. SBI Mutual Funds
has one ETF running as of 2009, which is the SBI Gold Exchange traded scheme.

SBI-Mutual Fund-Corporate profile

SBI Mutual Fund, boast of an impeccable, being sponsored by India’s Premier bank – the
state bank of India.
SBI fund management, one of the country’s premier fund house, with over 20 years of
rich experience in fund management, was founded with a vision- to reach out smallest of
the small investor and provide them with alternate investment options to help achieve
their financial goals. It is India’s largest bank sponsored mutual fund and has enviable
track record in judicious investments and consistent wealth creation. SBI Fund
Management is a joint venture state bank of India – India’s largest bank, which has
grown immensely since it’s inception and Société Générale Asset Management, France,
one of the world’s leading fund management companies.
SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8
times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-
2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award
2007 and 5 Awards for our schemes.
SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track
record in judicious investments and consistent wealth creation.
The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has
grown immensely since its inception and today it is India's largest bank, patronized by
over 80% of the top corporate houses of the country.
SBI Mutual Fund is a joint venture between the State Bank of India and Society General
Asset Management, one of the world’s leading fund management companies that
manages over US$ 500 Billion worldwide.
In twenty years of operation, the fund has launched 38 schemes and successfully
redeemed fifteen of them. In the process it has rewarded it’s investors handsomely with
consistent returns.
A total of over 5.4 million investors have reposed their faith in the wealth generation
expertise of the Mutual Fund.
Schemes of the Mutual fund have consistently outperformed benchmark indices and have
emerged as the preferred investment for millions of investors and HNI’s.
Today, the fund manages over Rs. 27,076.63 crores of assets and has a diverse profile of

investors actively parking their investments across 36 active schemes.

The fund serves this vast family of investors by reaching out to them through network of
over 130 points of acceptance, 28 investor service centers, 46 investor service desks and
56 district organisers.
SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent India
Opportunities Fund.
CHAPTER-6

“FINDINGS AND SUGGESTIONS”


“FINDINGS”

1. Majority of customer have said that, because of unique product they have attracted
towards SBI.
2. Majority of customers often use net banking.
3. SBI is quite upto the mark as far as current accounts and saving accounts is concerned
but in other segments like insurance, term deposit and wealth management SBI have to
work more.
4. The promotional activity of SBI is quite average due to which people generally do not
know about SBI.
5. As per analysis of data it was found, that majority of customers want to grow their
money through mutual fund and insurance.
6. Most of customers of SBI have said that they haven’t advised by the SBI about various
investment schemes.
7. Many of customers were asked for the products from SBI such as credit cards, home
loans, cc limits etc.
8. Bank employees are one of the major factor or medium through which people know
about SBI.
9. Most of the customers are quite satisfied with the investment advisory of SBI.
10. Employees of SBI are very friendly and helpful.
11. While doing summer training it was found that most of the people are not aware about
SBI.

12. Most of the people are invested in Mutual Funds.

13. Almost 41% people invest in Open ended fund, 18% people invest in Close ended fund,
and 41% invest in both.

14. Out of 50 people, 26 people are invested in Mutual Fund, 12 people are invested in
Banks, 4 people in Share Market and 8 people in Post office.

15.70% of people agreed that they are getting good returns in their SBI Mutual Fund.
16. Out of 50 people, 29 people are invested in Mutual Fund in between 1-2 Years.

17. 53% of the people come to know about Mutual fund through Brokers.

18. While survey I found that people are satisfied with their investment and most of them do
not want to shift to other mutual fund

SBI Funds Management Private Limited

Key Information

SBI Mutual Fund


Mutual Fund
Setup Date Jun-29-1987
Incorporation Date Feb-07-1992
Sponsor State Bank of India
SBI Mutual Fund Trustee Company Private
Trustee
Limited
Chairman Mr. Pratip Chaudhri
CEO / MD Mr. Deepak Kumar Chatterjee
CIO Mr. Navneet Munot
Compliance Officer Ms. Vinaya Datar
Investor Service
Mr. C A Santosh
Officer
Assets Managed Rs. 47874.46 crore (Jun-30-2011)

Other Details

Haribhakti & Co / M/S. Chandabhoy & Jassoobhoy


Auditors
Custodians Bank of Nova Scotia / Citi Bank / HDFC Bank / Stock
Holding Corporation of India
Computer Age Management Services Pvt. Ltd, Computronics

Registrars
Financial Services (I) Ltd, Datamatics Financial Software
Services Ltd
Address 191 Maker Tower E, Cuffe Parade, Mumbai - 400005.
Telephone
022 - 22180221-27
Nos.
Fax Nos. 022 – 22189663
E-mail partnerforlife@sbimf.com

“LIMITATIONS”

We have to face certain difficulties while carrying out the research work.
I know the limitations before hands which are controllable. Some important limitations
faced during the project are as follows:-

Sample Size:
The opinion of just 50 respondents cannot represent opinion of all investors.

Limitations of responses:-

The number of responses given by the respondents may not always 100% correct. Also
some respondents refuse to disclose data.

Accuracy of data:-
Though extensive efforts are made to collect accurate data but due to human touch
there may be some inaccuracy in them as it is possible that the data given by
respondents may carry some inaccuracy.

Limitations of bias:-

Sometimes it is possible that respondents may get biased, for avoidance of that thing
special influential & respectful behavior is exercised.

“SUGGESTIONS”

1. SBI should open more branches along with more ATMS


2. SBI should promote their bank through advertisement or through other channel. So that
everybody should get aware of this bank.
3. Have to aggressive in marketing strategy for brand awareness.
4. SBI must emphasize more to make more and more customers contact.
5. SBI should advise their customers regularly about their various investment schemes.
6. Time to timeSBI should take their customers feedback, so that they can asses
themselves.
7. SBI should provide schemes like cash back offers on the purchase through debit and
credit card.
8. SBI should launch the following products soon i.e. home loans, credit cards and
education loans. Because many person are there who were asked about these products.
9. Mobile banking provided SBI is not working properly, so SBI should take this into
consideration and try to eradicate such problems.
“CHAPTER -7”

“CONCLUSION”
“ CONCLUSION”

IN conclusion it was found that well planned and organized agent training programs of
MUTUAL FUNDS are able to achieve correct need of customer or the needed person
and it will result into a great success for the company.It plays an essential part in the
growth of the company.

Through the accurate need assessment and by understanding the nature of training
required by understanding the individual employees need a company can achieve a
tremendous success
“BIBLIOGRAPHY”
MAGZENE
Punithavathy Pandian ,Security Analysis and Portfolio Management ,Vikas Publishing House,2001

WEBSITES
http;//www.moneycontrol.com
http;//www.sbimutualfunds.com
www.amfiindia.com

BOOKS
SUNDAR SANKARAN Indian Mutual Funds Handbook
NORTHCUT The Mutual Fund
ESME FAERBERR All about value investing