A Project Report Presentation On “ SBI Mutual Fund”

Presented by

Master In Business Administration -College Name

What is Mutual Funds? .

These investors buy units of a particular Mutual Fund scheme that has a defined investment objective and strategy. The income earned through these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them. These could range from shares to debentures to money market instruments. The money collected is invested by the fund manager in different types of securities. depending upon the scheme’s stated objectives.     .Mutual Fund is…  A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. Anybody with an investible surplus of as little as a few thousand rupees can invest in Mutual Funds.

.Flow Chart of Mutual Fund. .

.About SBI Mutual Fund. SBI mutual fund offers variety of funds .  SBI Mutual Fund is one of the best and the top mutual fund investment company among mutual funds companies in India.

Advantage of Mutual Funds Portfolio Diversification  Professionally Management  Diversification of Risk  Wide Choice to Investor for MF  Liquidity  Convenience& flexibility  Transparency  .

Disadvantage of Mutual Fund No Control Over Cost  Redemption Charges if Withdrawn  No Standard Portfolios  No Guarantee of Returns  Subject to Market Risk  .

Types Of Mutual Fund Type of Mutual Fund Schemes Investment Objective Structure Open Ended Funds Close Ended Funds Interval Funds Special Schemes Growth Funds Income Funds Balanced Funds Money Market Funds Industry Specific Schemes Index Schemes Sectoral Schemes .

• Investors are not allowed to buy or redeem the units directly from the funds. • Units maybe traded at a discount or premium to NAV based on investor’s perception about the funds future performance and other market factors.  Closed-end Fund • One time sale of fixed number of units. • Fund size and its total investment go up if more new subscriptions come in than redemptions and vice-versa. Some funds offer repurchase after a fixed period. • Unit capital of the fund is not fixed but variable. For example.  .Types of Mutual Funds SBI MF Serve Open-end Fund • Available for sale and repurchase at all times based on the net asset value (NAV) per unit. UTI MIP offers a repurchase after 3 years. • Listed on stock exchange and investors can buy or sell units through the exchange.

Gilt Funds Invest in Gilts which are government securities with medium to long term maturities. Certificates of deposit issued by banks. typically over one year.  • • • • .Mutual Fund Types  • • • Money Market Funds/Cash Funds Invest in securities of short term nature I. preservation of capital and moderate income. Virtually zero risk of default as it is backed by the Government. It is most sensitive to market interest rates. Invest in Treasury bills issued by government. Gilt funds invest in government paper called dated securities. The price falls when the interest rates goes up and vice-versa. less than one year maturity. Aim to provide easy liquidity. Commercial Paper issued companies and inter-bank call money.e.

Have higher price fluctuation as compared to money market funds due to interest rate fluctuation.Debt Funds  • • • • • • Debt Funds/Income Funds Invest in debt instruments issued not only by government. but also by private companies. banks and financial institutions and other entities such as infrastructure companies/utilities. Debt funds can be categorized further based on their risk profiles. Target low risk and stable income for the investor. Have a higher risk of default by borrowers as compared to Gilt funds. Carry both credit risk and interest rate risks. .

Equity funds can be further categorized based on their investment strategy.Equity Funds • Invest a major portion of their corpus in equity shares issued by companies. Equity funds must have a long-term objective. • Risk is higher than debt funds but offer very high growth potential for the capital. acquired directly in initial public offering or through secondary market and keep a part in cash to take care of redemptions. • • .

Ideal for investors with a conservative and long-term orientation.Hybrid Funds  • • • • Balanced Funds: Has a portfolio comprising of debt instruments. Objective is to gain income. . Normally funds maintain a Equity-Debt ratio of 55:45 or 60:40. convertible securities. moderate capital appreciation and preservation of capital. Almost equal proportion of debt/money market securities and equities. preference and equity shares.

Probability of Returns .

SBI MF Growth from 20062012 Series1 5000000 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 .

and there is more prospect chances.  .CONCLUSION After studying & analyzing different mutual fund schemes the following conclusions can be made:  Diversified stock portfolios have offered superior long term inflation protection  Portfolio managers have done a fairly good job in generating positive returns  Those who want to eliminate the risk element should invest in MF  The Performance of SBIMF is good.

Thanks .

Sign up to vote on this title
UsefulNot useful