Professional Documents
Culture Documents
Customer Awareness SBI Fund
Customer Awareness SBI Fund
TABLE OF CONTENT
S.NO
PARTICULAR
PAGE
NO
EXECUTIVE SUMMARY
03
INTRODUCTION TO BANKING
INDUSTRIES
06
07
12
25
45
FINDINGS
58
SUGGESTIONS
59
CONCLUSION
60
REFERENCES
61
ANNEXURE
62
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
BABASAB PATIL
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EXECUTIVE SUMMARY
TITLE OF THE STUDY
INTRODUCTION
SUMMARY OF THE COMPANY
State Bank of India
INCLUDEPICTURE "http://upload.wikimedia.org/wikipedia/en/thumb/c/cc/SBI-logo.svg/50px-
SBI-logo.svg.png" \* MERGEFORMATINET
Type
Founded
Headquarters
Corporate Center,
Madame Cama Road,
Mumbai 400 021 India
Key people
Industry
Banking
Insurance
Capital Markets and allied industries
Products
Loans, Credit Cards, Savings, Investment vehicles, SBI Life (Insurance) etc.
Revenue
Website
www.statebankofindia.com
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: 100 respondents
Sample Unit
1. Bank Employees
2. Udyambag entrepreneurs
3. Government employees
4. Stock Dealers in Belgaum city
5. Businessmen.
Sampling Method : Simple random sampling technique.
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MERGEFORMATINET
Offices of the Bank of Bengal
PROFILE
Spreading its arms around the world, the SBIs International Banking Group delivers
the full range of cross-border finance solutions through its four wings the Domestic
division, the Foreign Offices division, the Foreign Department and the International
Services division.
The Domestic wing provides services like merchant banking, shipping finance and
project export finance. The Foreign Offices wing offers the entire range of international
trade and industrial finance products, while the Kolkatta-based Foreign Department
undertakes treasury and currency operations.
The International Services division renders specialized services like correspondent
banking, global link services and country and bank risk exposure monitoring. Being
Indias largest and most trusted commercial bank, the SBI offers you a network of
relationships unmatched in strength and span by any other Indian financial entity.
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Our Values:
Trustworthiness
Ambition
Innovation
Dynamism
Excellence
SBI Life Insurance is a joint venture between the State bank of India and Cardif
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Introduction:
SBI Lifes HORIZON II is a unique, non participating Unit Linked Insurance
Plan in Indian Insurance Industry, where you need not to be a financial market expert.
This plan offers the flexibility of Unit Linked Plan along with Automatic Asset
Allocation which provides relatively higher returns on your money where as increasing
death benefits provides higher security to your family.
Key features:
Twin benefit of insurance cover and market linked returns
Hassle-free investment management of funds from inception to maturity
Automatic Asset Allocation of funds
Automatic rebalancing of funds at yearly intervals, free of cost
Higher protection, to meet your family financial needs.
Automatic cover continuance.
Liquidity option after 3 years
Facility to top up your investment kitty.
Tax benefit as per section 80C and 10(10D) of income tax act.
15 days free look period from the date on which you receive the policy document.
No. of Units Fund(x) =
Benefits:
Hassle Free Investment Management: You simply invest we will manage it for you.
Maturity Benefits: At the end of the term you will get the fund value.
Increasing Death Benefit: For all in forced policies , In case of death after completion of
age 7.
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PENSION PRODUCT
HORIZON II PENSION
Horizon II Pension is the most simple unit linked pension plan; all you need to do is:
Choose your retirement date, the plan option and the regular premium amount.
Based on the plan option and the term opted, SBI Life will invest your money in
three different funds viz., Equity Pension Fund, Bond Pension Fund and Money
Market Pension Fund.
The funds are invested keeping in mind the term opted for and your money is
invested in safer funds as your policy approaches maturity.
Introduction:
We at SBI Life understand the basic needs for pension plan and give you financial
strength to maintain your life style even after the retirement. Unit Plus II Pension plan
makes sure that you have regular income after you retire and also helps you to maintain
your standard of living. This is a unit linked pension plan wherein the policyholder
chooses an investment period from 5 to 52 years for a vesting age between 50 to 70 years.
You can choose to pay either single premium or pay regular premium for the entire
policy term. Your contributions are invested into 4 fund options as per your choice.
Key Features:
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Swadhan
Introduction
Happiness and security for your family is what you want. However life has its
uncertainties and risks. All that youre interested in is how best to afford a secure future
for your loved one. Have you ever wished for a low premium insurance policy that not
only provides security to your loved ones but also returns back the premium paid.
Protection at affordable premium
e cover comes to you at no cost
Tax benefit u/s 80 c and (10 D) of it act
5% rebate for female lives
Guaranteed return of basic premium paid on survival at the end of the term,
depending
Shield:
Introduction
Your family is of utmost importance to you. You want your family to have all the good
things in life and you would do everything you could to fulfill them. Life is full of
uncertainties and risk. To ensure that these uncertainties do not the shatter the dreams you
have for your family.
Key features:
It offers you life insurance cover at the lowest cost for a selected term.
It is available in 3 options to suit your requirement.
Level Premium throughout the chosen term with increasing Sum Assured,
depending on the option chosen.
Tax benefit u/s 80 C and 10 (10 D) of IT Act
Attractive rebate for Female lives.
Schlor II
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Money back:
Introduction
As an individual your life is fueled by dreams. You experience different special moments
in life like wedding, birth of a child, childs education or purchasing a new home. You
have to be financially prepared for these special moments. What you need is easy
liquidity at regular intervals with life insurance protection to take care of these special
moments.
Key features
The plan has a number of money back options specially suited to your needs
The cover is available at competitive premium rates.
The cover is available at competitive premium rates.
In addition to normal death cover, the plan also provides you 4 additional covers.
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Equity (Growth)
Only in stock.
Debt (Income)
Balanced
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Investment banking
Mutual Funds
Brokerage and distribution of equities
Dematerialization services
Trading in commodities
Life Insurance
Features and Options
Wealth management
Corporate advisory
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Income is earned from dividends declared by mutual fund schemes from time to
time.
B)
If the fund sells securities that have increased in price, the fund has a capital gain.
This is reflected in the price of each unit. When investors sell these units at prices
higher than their purchase price, they stand to make a gain.
C)
If fund holdings increase in price but are not sold by the fund manager, the fund's
unit price increases. You can then sell your mutual fund units for a profit. This is
tantamount to a valuation gain.
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OPERATIONS
SPONSOR
AMC
FUND MANGER
MKT/SALES
MKT/ SALES
MUTUAL FUND
SCHEMES
DISTRIBUTOR
INVESTOR
Sponsor - Sponsor is the person who acting alone or in combination with another body
corporate establishes a mutual fund. Sponsor must contribute at least 40% of the net
worth of the Investment Managed and meet the eligibility criteria prescribed under the
Securities and Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor
is not responsible or liable for any loss or shortfall resulting from the operation of the
Schemes beyond the initial contribution made by it towards setting up of the Mutual
Fund.
Trust - The Mutual Fund is constituted as a trust in accordance with the provisions of the
Indian Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian
Registration Act, 1908.
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Costs Despite Negative Returns- Investors must pay sales charges, annual fees,
and other expenses regardless of how the fund performs. And, depending on the
timing of their investment, investors may also have to pay taxes on any capital
gains distribution they receive even if the funds went on to perform poorly after
they bought shares.
B)
Lack of Control- Investors typically cant ascertain the exact make up of a funds
portfolio at any given time, nor can they directly influence which securities the
fund manager buys and sells or the timing of those trades.
C)
Price Uncertainty- With an individual stock, you can obtain real time pricing
information with relative ease by checking financial websites or by calling your
broker. You can also monitor how a stocks price changes from hour to hour or
even seconds to seconds. By contrast, with a Mutual Fund, the price at which you
purchase or redeem shares will typically depend on the funds NAV. In general;
Mutual Funds must calculate their NAV at least once every business day,
typically after the major U.S. exchange close.
GLOBAL SCENARIO
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The asset base will continue to grow at an annual rate of about 30 to 35 % over the next
few years as investors shift their assets from banks and other traditional avenues. Some
of the older public and private sector players will either close shop or be taken over.
Out of ten public sector players five will sell out, close down or merge with stronger
players in three to four years. In the private sector this trend has already started with two
mergers and one takeover. Here too some of them will down their shutters in the near
future to come.
But this does not mean there is no room for other players. The market will witness a
flurry of new players entering the arena. There will be a large number of offers from
various asset management companies in the time to come. Some big names like Fidelity,
Principal, Old Mutual etc. are looking at Indian market seriously. One important reason
for it is that most major players already have presence here and hence these big names
would hardly like to get left behind.
The mutual fund industry is awaiting the introduction of derivatives in India as this would
enable it to hedge its risk and this in turn would be reflected in its Net Asset Value
(NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes to trade in
derivatives. Importantly, many market players have called on the Regulator to initiate the
process immediately, so that the mutual funds can implement the changes that are
required to trade in Derivatives.
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TYPES OF SCHEMES
A. Investment Objective:
Schemes can be classified by way of their stated investment objective such as Growth
Fund, Balanced Fund, and Income Fund etc.
1. Equity Oriented Schemes
The investments of these schemes will predominantly be in the stock
markets and endeavor will be to provide investors the opportunity to benefit from the
higher returns which stock markets can provide. However they are also exposed to the
volatility and attendant risks of stock markets and hence should be chosen only by
such investors who have high risk taking capacities and are willing to think long term.
Equity Funds include diversified Equity Funds, Sectoral Funds and Index Funds.
Diversified Equity Funds invest in various stocks across different sectors while
sectoral funds which are specialized Equity Funds restrict their investments only to
shares of a particular sector and hence, are riskier than Diversified Equity Funds.
Index Funds invest passively only in the stocks of a particular index and the
performance of such funds move with the movements of the index.
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STRUCTURE
Schemes can be classified as Closed-ended or Open-ended depending upon
whether they give the investor the option to redeem at any time (open-ended) or whether
the investor has to wait till maturity of the scheme.
1. Open ended Schemes - The units offered by these schemes are available for sale
and repurchase on any business day at NAV based prices. Hence, the unit capital
of the schemes keeps changing each day. Such schemes thus offer very high
liquidity to investors and are becoming increasingly popular in India. Please note
that an open-ended fund is NOT obliged to keep selling/issuing new units at all
times, and may stop issuing further subscription to new investors. On the other
hand, an open-ended fund rarely denies to its investor the facility to redeem
existing units.
2. Closed ended Schemes - The unit capital of a close-ended product is fixed as it
makes a one-time sale of fixed number of units. These schemes are launched with
an initial public offer (IPO) with a stated maturity period after which the units are
fully redeemed at NAV linked prices. In the interim, investors can buy or sell
units on the stock exchanges where they are listed. Unlike open-ended schemes,
the unit capital in closed-ended schemes usually remains unchanged. After an
initial closed period, the scheme may offer direct repurchase facility to the
investors. Closed-ended schemes are usually more illiquid as compared to openended schemes and hence trade at a discount to the NAV. This discount tends
towards the NAV closer to the maturity date of the scheme.
3. Interval Schemes - These schemes combine the features of open-ended and
closed-ended schemes. They may be traded on the stock exchange or may be open
for sale or redemption during pre-determined intervals at NAV based prices.
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age
Valid
18-30
30-40
40-50
50&above
Total
Frequency
32
26
21
21
100
Percent
32.0
26.0
21.0
21.0
100.0
Valid Percent
32.0
26.0
21.0
21.0
100.0
Cumulative
Percent
32.0
58.0
79.0
100.0
age
50&above
21.0%
18-30
32.0%
40-50
21.0%
30-40
26.0%
Interpretation:
Out of 100 respondents 32% are 18 to 30 age, 26% are 30 to 40, 21% are 40 to 50 and
remaining 21% are of above 50. So Mutual funds should more concentrate on young
generation because they have less risk on family and they will investment more because
of career development and retirement benefits.
BABASAB PATIL
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Valid
serviceman
businessman
professional
other
Total
Frequency
19
39
19
23
100
Percent
19.0
39.0
19.0
23.0
100.0
Valid Percent
19.0
39.0
19.0
23.0
100.0
Cumulative
Percent
19.0
58.0
77.0
100.0
other
23.0%
serviceman
19.0%
professional
19.0%
businessman
39.0%
Interpretation:
The responses which I had got 19% were serviceman, 39% were businessman,
19% were professional and the remaining 23% were other people.
BABASAB PATIL
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MONTHLY INCOME:
what is your monthly income in rupess
Valid
below 5000
5000-10000
10000-15000
15000-20000
20000-25000
above 25000
Total
Frequency
8
18
17
27
15
15
100
Percent
8.0
18.0
17.0
27.0
15.0
15.0
100.0
Valid Percent
8.0
18.0
17.0
27.0
15.0
15.0
100.0
Cumulative
Percent
8.0
26.0
43.0
70.0
85.0
100.0
below 5000
8.0%
5000-10000
18.0%
20000-25000
15.0%
10000-15000
17.0%
15000-20000
27.0%
Interpretation:
Out of 100 samples 8% are of below Rs.5,000, 18% are of above 5,000 and below
Rs.10,000, 17% are of above Rs.10,000 and below Rs.15,000,27% are of above 15,000
and below Rs 20,000, 15% are of above 20,000 and below 25,000 the remaining 15% are
of above Rs.25,000 monthly income.
BABASAB PATIL
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Valid
yes
no
Total
Frequency
66
34
100
Percent
66.0
34.0
100.0
Valid Percent
66.0
34.0
100.0
Cumulative
Percent
66.0
100.0
yes
66.0%
Interpretation:
Out of 100 samples 66% are aware of SBI mutual funds i.e. 66 surveyed people
know about SBI mutual funds and 34% are unaware of the SBI mutual funds. As there is
a lack of awareness in this semi urban city Belgaum, the attempts should be made to
create the general awareness through popular modes of communication that would reach
the potential customers, like Local T.V Channels, Local Newspapers, Theatres,
Hoardings and Banners in the public crowded areas.
MUTUAL FUND:
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Valid
debt fund
equity fund
no
Total
Frequency
35
40
25
100
Percent
35.0
40.0
25.0
100.0
Valid Percent
35.0
40.0
25.0
100.0
Cumulative
Percent
35.0
75.0
100.0
equity fund
40.0%
Interpretation:
Out of 100 samples 40% respondents have invested their money in equity mutual funds
and the remaining 35%have invested in debt mutual funds and remaining 25% respondents
are not interested.
INVESTED IN MUTUAL FUND:
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Valid
yes
no
Total
Frequency
65
35
100
Percent
65.0
35.0
100.0
Valid Percent
65.0
35.0
100.0
Cumulative
Percent
65.0
100.0
yes
65.0%
Interpretation:
Out of 100 samples 65% respondents have invested their money in mutual funds and
the remaining 35% have not invested in mutual funds. So that the potential market
available for targeting is around 35%.
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Valid
uti
sbi
reliance money
others
Total
Frequency
36
33
20
11
100
Percent
36.0
33.0
20.0
11.0
100.0
Valid Percent
36.0
33.0
20.0
11.0
100.0
Cumulative
Percent
36.0
69.0
89.0
100.0
36.0%
20.0%
sbi
33.0%
Interpretation:
Out of 100 samples 36% respondents have invested their money in UTI mutual funds,
33% respondents have invested their money in SBI mutual fund, 20% respondents have
invested their money in reliance money and the remaining 11% respondents have
invested their money in other mutual fund.
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Valid
debt fund
equity fund
if any other specify others
Total
Frequency
35
40
25
100
Percent
35.0
40.0
25.0
100.0
Valid Percent
35.0
40.0
25.0
100.0
Cumulative
Percent
35.0
75.0
100.0
equity fund
40.0%
Interpretation:
Out of 100 samples 40% respondents have invested their money in equity scheme
mutual funds, 35% respondents have invested their money in debt scheme mutual fund
and the remaining 25% respondents have invested their money in other scheme
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Valid
up to 10000
10000-25000
25000-50000
50000-100000
Total
Frequency
31
41
22
6
100
Percent
31.0
41.0
22.0
6.0
100.0
Valid Percent
31.0
41.0
22.0
6.0
100.0
Cumulative
Percent
31.0
72.0
94.0
100.0
up to 10000
31.0%
10000-25000
41.0%
Interpretation:
Out of 100 respondents 31% of them have invested up to Rs.10,000, 41% of them have
invested above Rs 10,000 and below Rs 25,000, 22% of them have invested above Rs
25,000 and below Rs 50,000, and remaining 6% of them have invested above Rs.50,000
and below Rs 1,00,000. Mutual fund companies should give advertisement on T.V and
other local medium to attract the customers.
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discussion with
family member
stock holder/agent
website
Total
Percent
Valid Percent
Cumulative
Percent
21
21.0
21.0
21.0
45
34
100
45.0
34.0
100.0
45.0
34.0
100.0
66.0
100.0
stock holder/agent
45.0%
Interpretation:
According to respondents the influencing factor to buy mutual funds was 21% of them
were influenced by Family member,45% were influenced by stock holder/agent,34% of
them influenced by website. People who have invested in mutual funds they have
influenced from family member, stock holder/agent, website.
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which factor you considered while taking decision to invest in mutual fund
Valid
returns
saving
liquidity
if any other specify
Total
Frequency
36
20
16
28
100
Percent
36.0
20.0
16.0
28.0
100.0
Valid Percent
36.0
20.0
16.0
28.0
100.0
Cumulative
Percent
36.0
56.0
72.0
100.0
returns
36.0%
liquidity
16.0%
saving
20.0%
Interpretation:
The various attributes the investors look for while buying the mutual funds are 36% of
them gives preference of Rate of Return, 20% of them gives preference of saving, 16% of
them gives preference of liquidity, 28% of them gives preference of other (tax benefit)
People will consider rate of return as a very high attribute while investing in mutual funds
compared to other attributes like saving, liquidity, and other.
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Valid
yes
no
Total
Frequency
64
36
100
Percent
64.0
36.0
100.0
Valid Percent
64.0
36.0
100.0
Cumulative
Percent
64.0
100.0
yes
64.0%
Interpretation:
Out of 100 samples 64% respondents will invested their money in SBI mutual fund,
and remaining 36% respondents will not invested their money in SBI mutual fund.
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if no why
Valid
risk
not much knowledge
about the mutual fund
bad experience
returns is not fixed
all of the above
Total
Frequency
28
Percent
28.0
Valid Percent
28.0
Cumulative
Percent
28.0
18
18.0
18.0
46.0
10
23
21
100
10.0
23.0
21.0
100.0
10.0
23.0
21.0
100.0
56.0
79.0
100.0
if no why
all of the above
21.0%
risk
28.0%
bad experience
10.0%
Interpretation:
The reason for not opting for mutual funds for those 28% respondents they feel mutual
fund involves high risk, 18% respondents not much knowledge about mutual fund, 10%
respondents had bad experience with mutual funds because they have lost their money in
past, 23% respondents they feel mutual fund return is not fixed, 21% respondents all of
the above reason.
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FINDINGS
Thus on the basis of the study conducted we can see that Mutual Fund is one of the best
options for investment as it has many advantages of diversification, professional
management, economies of scale, liquidity etc. From the survey conducted it was found
that
Mutual fund should mainly concentrate on young generation.
Around 66% aware about SBI mutual fund.
Investors invest in Mutual Funds as a high return and (saving) security in their old
age or as retirement security. While others invest to gain access to stock market
through professional management and for higher education.
Around 30% of the investors know about the tax benefits of investing in Mutual
Funds.
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SUGGESTIONS
Mutual fund is a classical example of unsought goods. The nature of that the
consumer does not know about or does not normally think of buying.
The
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CONCLUSION
From the above study it is seen that there is an attractive market for mutual funds in
Belgaum provided awareness should be created of the different schemes and people
should be educated with all the information of mutual funds.
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References
Company website
Magazines
www.moneycontrol.com
www.mutualfundsindia.com
www.amfi.com
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Annexure
QUESTIONARRIE
1. Age
a] 18-30
b] 30-40
c] 40-50
d] 50 & above
2. What is your occupation?
Serviceman
Professional
3. What is your monthly income in Rupess?
Below 5,000
10,000-15,000
20,000-25,000
Businessman
Other
5,000-10,000
15,000-20,000
above 25,000
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10,000-25,000
50,000-1, 00,000
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