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Mutual Fund Analysis
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[An Comparative & Quantified Analysis ]
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6/17/2010

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 Sandeep Porwal

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Guided By:  Sourabh Singh Sisodiya
 M. Aasif
 Prof. J.S. Rana
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 Vaibhav Gupta
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MUTUAL FUND Page 1
 INDEX

I. Introduction 3
II. Mutual Fund 4
III. Types Of Fund 4-6
IV. Net Asset Value (NAV) 6
V. Expenses And Expense Ratios 7
VI. Mutual Funds Vs. Other Investments 8-9
VII. DSP BlackRock 10-11
VIII. Introduction 12
IX. T.I.G.E.R. Fund 13-15
X. SBI Mutual Fund 16-18
XI. Introduction 19- 22
XII. Magnum Equity Fund 23-27
XIII. Research Methodology 28
XIV. Table of Calculation 29

MUTUAL FUND Page 2

 MUTUAL FUND INDUSTRY

This report is about the Mutual Fund Industry which is continuously making its way up to the ladder of success.
Mutual Fund is another avenue for making investment as it is attracting a large number of investor small and
institutional, what makes an investor to invest their money in various fund, how an fund said to be better than
another fund.

This report has made an attempt to rationalize the decision of picking a particular fund, here an comparative
analysis is made while taking two firms into consideration viz DSP BlackRock (T.I.G.E.R. Fund) & SBI Mutual
Fund (Magnum Equity Fund). There are various statistical techniques have been studies.

The two companies are:

MUTUAL FUND Page 3

 Mutual Fund
Mutual fund is a mechanism for pooling the resources by issuing units to the investors and investing
funds in securities in accordance with objectives as disclosed in offer document.

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

The profits or losses are shared by the investors in proportion to their investments. The mutual funds
normally come out with a number of schemes with different investment objectives which are launched
from time to time. A mutual fund is required to be registered with Securities and Exchange Board of
India (SEBI) which regulates securities markets before it can collect funds from the public.

Different types of mutual fund schemes

I. Schemes according to Maturity Period

A mutual fund scheme can be classified into open-ended scheme or close-ended scheme depending on
its maturity period.

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous
basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units
at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-
end schemes is liquidity.

Close-ended Fund/ Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can invest in
the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the
scheme on the stock exchanges where the units are listed. In order to provide an exit route to the
investors, some close-ended funds give an option of selling back the units to the mutual fund through

MUTUAL FUND Page 4

periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit
routes is provided to the investor i.e. either repurchase facility or through listing on stock exchanges.
These mutual funds schemes disclose NAV generally on weekly basis.

Schemes according to Investment Objective

A scheme can also be classified as growth scheme, income scheme, or balanced scheme considering its
investment objective. Such schemes may be open-ended or close-ended schemes as described earlier.
Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes
normally invest a major part of their corpus in equities. Such funds have comparatively high risks. These
schemes provide different options to the investors like dividend option, capital appreciation, etc. and the
investors may choose an option depending on their preferences. The investors must indicate the option
in the application form. The mutual funds also allow the investors to change the options at a later date.
Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of
time.

Income / Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such schemes generally
invest in fixed income securities such as bonds, corporate debentures, Government securities and money
market instruments. Such funds are less risky compared to equity schemes. These funds are not affected
because of fluctuations in equity markets. However, opportunities of capital appreciation are also limited
in such funds. The NAVs of such funds are affected because of change in interest rates in the country. If
the interest rates fall, NAVs of such funds are likely to increase in the short run and vice versa.
However, long term investors may not bother about these fluctuations.

Balanced Fund

The aim of balanced funds is to provide both growth and regular income as such schemes invest both in
equities and fixed income securities in the proportion indicated in their offer documents. These are
appropriate for investors looking for moderate growth. They generally invest 40-60% in equity and debt
instruments. These funds are also affected because of fluctuations in share prices in the stock markets.
However, NAVs of such funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund

MUTUAL FUND Page 5

These funds are also income funds and their aim is to provide easy liquidity, preservation of capital and
moderate income. These schemes invest exclusively in safer short-term instruments such as treasury
bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc.
Returns on these schemes fluctuate much less compared to other funds. These funds are appropriate for
corporate and individual investors as a means to park their surplus funds for short periods.

Gilt Fund

These funds invest exclusively in government securities. Government securities have no default risk.
NAVs of these schemes also fluctuate due to change in interest rates and other economic factors as is the
case with income or debt oriented schemes.

Index Funds

Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50
index (Nifty), etc These schemes invest in the securities in the same weightage comprising of an index.
NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not
exactly by the same percentage due to some factors known as "tracking error" in technical terms.
Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

There are also exchange traded index funds launched by the mutual funds which are traded on the stock
exchanges.

Net asset value

The net asset value, or NAV, is the current market value of a fund's holdings, minus the fund's liabilities,
that is usually expressed as a per-share amount. For most funds, the NAV is determined daily, after the
close of trading on some specified financial exchange, but some funds update their NAV multiple times
during the trading day. The public offering price, or POP, is the NAV plus a sales charge. Open-end
funds sell shares at the POP and redeem shares at the NAV, and so process orders only after the NAV
are determined. Closed-end funds (the shares of which are traded by investors) may trade at a higher or
lower price than their NAV; this is known as a premium or discount, respectively. If a fund is divided
into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees
and expenses paid by the different classes.

Some mutual funds own securities which are not regularly traded on any formal exchange. These may
be shares in very small or bankrupt companies; they may be derivatives; or they may be private
investments in unregistered financial instruments (such as stock in a non-public company). In the
absence of a public market for these securities, it is the responsibility of the fund manager to form an
estimate of their value when computing the NAV. How much of a fund's assets may be invested in such
securities is stated in the fund's prospectus.

MUTUAL FUND Page 6

The price per share, or NAV (net asset value), is calculated by dividing the fund's assets minus liabilities
by the number of shares outstanding. This is usually calculated at the end of every trading day.

Expenses and expense ratios

Mutual funds bear expenses similar to other companies. The fee structure of a mutual fund can be
divided into two or three main components: management fee, non-management expense, and 12b-1/non-
12b-1 fees. All expenses are expressed as a percentage of the average daily net assets of the fund.

Management fees

The management fee for the fund is usually synonymous with the contractual investment advisory fee
charged for the management of a fund's investments. However, as many fund companies include
administrative fees in the advisory fee component, when attempting to compare the total management
expenses of different funds, it is helpful to define management fee as equal to the contractual advisory
fee plus the contractual administrator fee. This "levels the playing field" when comparing management
fee components across multiple funds.

Contractual advisory fees may be structured as "flat-rate" fees, i.e., a single fee charged to the fund,
regardless of the asset size of the fund. However, many funds have contractual fees which include
breakpoints so that as the value of a fund's assets increases, the advisory fee paid decreases. Another
way in which the advisory fees remain competitive is by structuring the fee so that it is based on the
value of all of the assets of a group or a complex of funds rather than those of a single fund.

Non-management expenses

Apart from the management fee, there are certain non-management expenses which most funds must
pay. Some of the more significant (in terms of amount) non-management expenses are: transfer agent
expenses (this is usually the person you get on the other end of the phone line when you want to
purchase/sell shares of a fund), custodian expense (the fund's assets are kept in custody by a bank which
charges a custody fee), legal/audit expense, fund accounting expense, registration expense (the SEC
charges a registration fee when funds file registration statements with it), board of directors/trustees
expense (the members of the board who oversee the fund are usually paid a fee for their time spent at
meetings), and printing and postage expense (incurred when printing and delivering shareholder
reports).

12b-1/Non-12b-1 service fees

In the United States, 12b-1 service fees/shareholder servicing fees are contractual fees which a fund may
charge to cover the marketing expenses of the fund. Non-12b-1 service fees are marketing/shareholder
servicing fees which do not fall under SEC rule 12b-1. While funds do not have to charge the full
contractual 12b-1 fee, they often do. When investing in a front-end load or no-load fund, the 12b-1 fees
for the fund are usually .250% (or 25 basis points). The 12b-1 fees for back-end and level-load share
classes are usually between 50 and 75 basis points but may be as much as 100 basis points. While funds

MUTUAL FUND Page 7

are often marketed as "no-load" funds, this does not mean they do not charge a distribution expense
through a different mechanism. It is expected that a fund listed on an online brokerage site will be
paying for the "shelf-space" in a different manner even if not directly through a 12b-1 fee.

Investor fees and expenses

Fees and expenses borne by the investor vary based on the arrangement made with the investor's broker.
Sales loads (or contingent deferred sales loads (CDSL)) are included in the fund's total expense ratio
(TER) because they pass through the statement of operations for the fund. Additionally, funds may
charge early redemption fees to discourage investors from swapping money into and out of the fund
quickly, which may force the fund to make bad trades to obtain the necessary liquidity.

Brokerage commissions

An additional expense which does not pass through the fund's income statement (statement of
operations) and cannot be controlled by the investor is brokerage commissions. Brokerage
commissions are incorporated into the price of securities bought and sold and, thus, are a component of
the gain or loss on investments. They are a true, real cost of investing though. The amount of
commissions incurred by the fund and are reported usually 4 months after the fund's fiscal year end in
the "statement of additional information" which is legally part of the prospectus, but is usually available
only upon request or by going to the SEC's or fund's website. Brokerage commissions, usually charged
when securities are purchased and again when sold, are directly related to portfolio turnover which is a
measure of trading volume/velocity (portfolio turnover refers to the number of times the fund's assets are
bought and sold over the course of a year). Usually, higher rate of portfolio turnover (trading) generates
higher brokerage commissions. The advisors of mutual fund companies are required to achieve "best
execution" through brokerage arrangements so that the commissions charged to the fund will not be
excessive as well as also attaining the best possible price upon buying or selling.

Mutual funds vs. other investments

Mutual funds offer several advantages over investing in individual stocks. For example, the transaction
costs are divided among all the mutual fund shareholders, which allows for cost-effective
diversification. Investors may also benefit by having a third party (professional fund managers) apply
expertise and dedicate time to manage and research investment options, although there is dispute over
whether professional fund managers can, on average, outperform simple index funds that mimic public
indexes. Yet, the Wall Street Journal reported that separately managed accounts (SMA or SMAs)
performed better than mutual funds in 22 of 25 categories from 2006 to 2008. This included beating
mutual funds performance in 2008, a tough year in which the global stock market lost US$21 trillion in
value. In the story, Morningstar, Inc said SMAs outperformed mutual funds in 25 of 36 stock and bond
market categories. Whether actively managed or passively indexed, mutual funds are not immune to
risks. They share the same risks associated with the investments made. If the fund invests primarily in
stocks, it is usually subject to the same ups and downs and risks as the stock market.

MUTUAL FUND Page 8

Share classes

Many mutual funds offer more than one class of shares. For example, you may have seen a fund that
offers "Class A" and "Class B" shares. Each class will invest in the same pool (or investment portfolio)
of securities and will have the same investment objectives and policies. But each class will have
different shareholder services and/or distribution arrangements with different fees and expenses. These
differences are supposed to reflect different costs involved in servicing investors in various classes; for
example, one class may be sold through brokers with a front-end load, and another class may be sold
direct to the public with no load but a "12b-1 fee" included in the class's expenses (sometimes referred to
as "Class C" shares). Still a third class might have a minimum investment of $10,000,000 and be
available only to financial institutions (a so-called "institutional" share class). In some cases, by
aggregating regular investments made by many individuals, a retirement plan (such as a 401(k) plan)
may qualify to purchase "institutional" shares (and gain the benefit of their typically lower expense
ratios) even though no members of the plan would qualify individually.[15] As a result, each class will
likely have different performance results.[16]

A multi-class structure offers investors the ability to select a fee and expense structure that is most
appropriate for their investment goals (including the length of time that they expect to remain invested in
the fund).[16]

Load and expenses

A front-end load or sales charge is a commission paid to a broker by a mutual fund when shares are
purchased, taken as a percentage of funds invested. The value of the investment is reduced by the
amount of the load. Some funds have a deferred sales charge or back-end load. In this type of fund an
investor pays no sales charge when purchasing shares, but will pay a commission out of the proceeds
when shares are redeemed depending on how long they are held. Another derivative structure is a level-
load fund, in which no sales charge is paid when buying the fund, but a back-end load may be charged if
the shares purchased are sold within a year.

MUTUAL FUND Page 9

The Asset Management Company

DSP BlackRock Investment Managers Pvt. Ltd. is the investment manager to DSP BlackRock Mutual
Fund.

The philosophy of DSP BlackRock Investment Managers Pvt. Ltd. has been grounded in the belief that
experienced investment professionals, using a disciplined process and sophisticated analytical tools, can
consistently add value to client portfolios.

DSP BlackRock Investment Managers Pvt. Ltd. takes a three dimensional approach to the management
of the organization, incorporating functional, product and regional elements in support of clients' goals.
The functional dimension looks at the company's operations by specific task, such as portfolio
management, account management or operations. The product dimension brings together the cross-
disciplinary expertise critical to managing client assets in each class. Finally, the regional aspect of the
company's model recognizes the unique, geography-specific needs of clients as well as the importance
of local regulatory issues.

With our three-dimensional approach to managing the organization, we seek to:

 Ensure consistency on a global basis;

 Allow for the tailoring of products and services according to client or local needs;
 Promote teamwork among our employees worldwide; and
 Facilitate operational integrity and efficiency

Sponsors

DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd.
DSP HMK Holdings Pvt. Ltd. and DSP ADIKO Holdings Pvt. Ltd. are companies incorporated in 1983
under the Companies Act, 1956 and are also registered with the Reserve Bank of India as non deposit
taking Non-banking Finance Companies. These companies have been functioning as investment
companies.

MUTUAL FUND Page 10

BlackRock

BlackRock is a premier provider of global investment management services to institutional and retail
clients around the world managing assets in excess of US$ 1.3 trillion* as on June 30, 2009.
Headquartered in New York, BlackRock serves clients from offices in 19 countries, maintaining a major
presence in North America, Europe, Asia-Pacific, and the Middle East. With approximately 5,700
employees, including more than 700 investment professionals worldwide, BlackRock offers clients in-
depth local knowledge and understanding, while leveraging the strength of their global presence and
infrastructure to deliver focused investment solutions. Today, BlackRock services clients in over 60
countries.

Trustees

DSP BlackRock Trustee Company Private Ltd., a company incorporated under the Companies Act,
1956, is the trustee for the Fund vide Trust Deed dated December 16, 1996. The shareholding of the
Trustee is as follows: BlackRock Advisors Singapore Pte. Ltd., a wholly owned subsidiary of
BlackRock Inc., holds 49% and the balance 51% is held by Mr. Hemendra Kothari.

 Mr. Shitin D. Desai

 Mr. S. S. Thakur
 Ms. Tarjani Vakil
 Mr. S. Doreswamy
 Mr. T. S. Krishna Murthy

AMC Director

 Mr. Hemendra M. Kothari, Chairman

 Mr. Laurence D Fink
 Ms. Susan L. Wagner
 Mr. K R V Subrahmanian
 Mr. Ranjan Pant
 Dr. Omkar Goswami
 Mr. Piyush Mankad
 Mr. Quintin Price (Alternate Director to Mr. Laurence D Fink)
 Mr. John R Kushel (Alternate Director to Ms. Susan L. Wagner)
 Mr. Rakesh Mohan

An open ended diversified equity Scheme, seeking to generate capital appreciation, from a portfolio that
is substantially constituted of equity securities and equity related securities of corporate, which could
benefit from structural changes brought about by continuing liberalization in economic policies by the
Government and/or from continuing investments in infrastructure, both by the public and private sector.

MUTUAL FUND Page 11

 Plans Minimum Investment

 Regular  Regular – Rs. 5,000 and multiples of Re. 1/-

 Institutional thereafter
 Institutional - Rs. 5 crore and multiples of Re.
1/- thereafter
 SIP – Rs. 1000 (min 12 installments)

Options Minimum Additional Purchase

 Growth  Regular – Rs. 1000/-

 Dividend – Payout  Institutional – Rs. 1000/-

 Reinvest

Expense Ratio* Exit Load

Plan Ratio Plan % Load Holding Period

Regular 1.81% Regular 1% < 12 months

(For Regular &
Institutional 1.25% Nil
SIP Purchase)
≥ 12months

Institutional 1% < 12 months

Nil ≥ 12months

MUTUAL FUND Page 12

* Financial year beginning to February 28, 2010.

Entry Load: NIL.

 Indicative Asset Allocation

Under normal circumstances, it is anticipated that the asset allocation shall be as follows:

Instrument Indicative Allocation (% of Corpus) Risk Profile

Equity and equity related securities 90% - 100% Medium to High

Debt, Securitized Debt and money market securities 0% - 10% Low to Medium

ADR, GDR and foreign securities 0% - 25% Medium to High

 Investor Benefits & General Services:

o STP, SWP, Nomination & Direct Deposit Application facilities available, subject to applicable
conditions as per the Scheme Information Document
o Redemption proceeds issued normally within 3 Business Days
o Declaration of NAV on all Business Days
o Sale and Redemption of units on all Business Days at Purchase Price and Redemption Price
respectively Cut Off Time for Subscription, Redemption and Switching : 3.00 p.m.

Investment Portfolio

MUTUAL FUND Page 13

As on 31st April, 2010

Top 10 Sectors Top 10 Stocks

(% to Net % to Net
Industry Name of Instrument
Assets) Assets

Banks 15.25% Reliance Industries 4.29%

Power 11.20% Bharat Heavy Electricals 3.53%

Industrial Capital Goods 9.34% Larsen & Toubro 3.07%

Petroleum Products 7.31% HDFC Bank 3.02%

Construction Project 7.24% State Bank of India 2.89%

Transportation 6.13% GAIL (India) 2.72%

Oil 5.54% Bharat Electronics 2.62%

Finance 4.35% IndusInd Bank 2.61%

Cement 4.14% Cairn India 2.24%

Construction 4.13% Oil & Natural Gas Corpn 2.07%

MUTUAL FUND Page 14

 Periodical Net Asset Value

NAV index Of DSP Blac

Index Value

Index Value 1

MUTUAL FUND Page 15

 SBI MUTUAL FUND

Proven Skills in Wealth Generation.

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, patronised 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 Société Générale Asset
Management, one of the world’s leading fund management companies that manages over US$
500 Billion worldwide.

Exploiting expertise, compounding growth

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 5.8 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. 38,782 crores of assets and has a diverse profile of investors actively
parking their investments across 38 active schemes.

MUTUAL FUND Page 16

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.

Growth through innovation and stable investment policies is the SBI MF credo.

Mr. Achal K. Gupta Mr. Ashwini K Jain

Managing Director & Chief Executive Chief Operating Officer
Officer

Mr. Didier Turpin Mr. C A Santosh

Dy. Chief Executive Officer Chief Manager - Customer Service.
Mr. Navneet Munot
Ms. Aparna Nirgude
Chief Investment Officer
Chief Risk Officer
Mr. R. S. Srinivas Jain Mr. Parijat Agrawal
Chief Marketing Officer Head – Fixed Income
Ms. Vinaya Datar
Company Secretary & Compliance
Officer

MUTUAL FUND Page 17

MD's Letter – February 2010

Dear Investor,
The Union Budget for 2010 has been the highlight for the month of February 2010 for
individual as well as for corporate investors. The finance minister announced some
landmark decisions, to which the markets have responded positively. From the
announcement, it is clear that in view of the Indian Economy’s speedy recovery from
the global recession, there would be a gradual exit from protective measures like
stimulus and sops, which were meant to guard our economy through the tough phase.

The Union Budget has ensured policies that would encourage steady growth in consumption and add
substance to the India Growth story. For individuals, the restructuring of the Income Tax slabs would
ensure more disposable income owing to substantial savings in their Income Tax. The corporate tax rates
have been left unchanged, however surcharge on tax has been reduced to 7.5% from 10%. Apart from
consumption, Infrastructure Development is a key priority of the Government.

The markets responded positively on and after the day of budget announcement. During the month of
February 2010, the BSE Sensex grew by 0.44% to close at 16429 points, while S&P Nifty grew by
0.82% to close at 4922 points. On the sectoral side, Automobile sector showed the maximum gain for
the month, with almost all the players reporting record sales for the month of February. Expectation of
increase in excise duty led to a preponement of demand, and hence a surge in sales. BSE Auto grew by
3.13%. During the month, Realty Sector was among the major losers shedding 7.5%. Widened scope of
service tax has had its impact on the sector.

During February 2010, the assets managed by the Indian mutual fund industry (Average AUM) grew by
2.6% to Rs.7.82 lakh crore. The Average AUM of SBI Mutual Fund stood at Rs. 36,072 crore.

We would like to thank our investors for their continued faith in our flagship scheme – Magnum
Taxgain Scheme. The encouraging response to the scheme during the last quarter is a clear indication of
our investor’s trust and support. Among our other equity schemes we would like to draw your attention
to Magnum Global Fund. With consistent performance, the scheme has been awarded a ‘Five Star’
ranking at ICRA Mutual Fund Awards 2010, in the Open-Ended Equity Diversified category, for its one
year performance. Another star performing scheme which we would like to recommend is Magnum
Comma Fund. The scheme has been rated five star by Value Research. Feel free to approach any of our
Investor Service centres to know more about how to get potential investment benefits from these
schemes.
MUTUAL FUND Page 18
We are absolutely committed to provide unparalleled service to our investors’ and cater to your
information, investment and servicing needs. Please feel free to call at our dedicated customer care
numbers 1-800-425-5425 (MTNL/BSNL users only) and 080-26599420 from Monday to Saturday (8am
– 10pm) or write to us at customer.delight@sbimf.com with your queries. Alternatively you can also
visit your nearest Investor Service Centre / Investor Service Desk for any assistance.

Regards,

Achal Gupta
Managing Director & Chief Executive Officer

The investment environment is becoming increasingly complex. Innumerable parameters need to be

factored in to generate a clear understanding of market movement and performance in the near and long
term future.

At SBIMF, we devote considerable resources to gain, maintain and sustain our profitable insights into
market movements. We consistently push the envelope to ensure our investors get the maximum
benefits year after year.

Research - the backbone of our Performance

Our expert team of experienced and market savvy researchers prepare comprehensive analytical and
informative reports on diverse sectors and identify stocks that promise high performance in the future.

This team works in tandem with a compliance and risk-monitoring department, which ensures
minimisation of operational risks while protecting the interests of the investors.

Quite naturally many of our equity funds have delivered consistent returns to investors and have
repeatedly out performed benchmark indices by wide margins.

MUTUAL FUND Page 19

Much of the credit for sustained performance of SBIMF goes to our team. They are the real performers
whose expertise and capability rewards our investors.

Head Portfolio Management Services / Fund Manager :

Nipa Ladiwala
After obtaining a post graduate degree in Business Management and Law, Nipa worked as an equity
analyst, and dealer for the offshore Funds of UTI. Subsequently she was appointed as Fund Manager for
India Growth Fund, which was listed on NYSE. She was head of Research at UTI Securities before
joining SBIMF as Head of PMS. Nipa has 6 years experience as Fund Manager. She has a total of 15
years experience and has been with SBI Funds Management Pvt Ltd since October 2005.

Debt / Fixed Income :

Parijat Agrawal (Head - Fixed Income)

Parijat has done his B.E (ECE) and PGDM (IIM Bangalore). He has got 12 years experience in capital
markets in areas like research, dealing and fund management. Parijat is associated with SBI Funds
Management Pvt. Ltd. since July 2006.

Prior to joining SBI Funds Management Pvt. Ltd., he was with State Bank of Mauritius Limited,
Mumbai as Head – Treasury.

Investment Team (Equity) :

Aashish Wakankar (Vice President & Fund Manager)

Aashish Wakankar is a Bachelor of Science from University of Mumbai and holds Post Graduate
Diploma in Management Studies from Jamnalal Bajaj Institute of Management Studies, University of
Mumbai. He has more than 12 years of experience in capital markets ranging from institutional equities,
equity research and fund management. He is associated with SBI Funds Management from December
2005.

Prior to joining SBI Funds Management, he has worked with Kotak Mahindra Asset Management,
Deutsche Asset Management - part of Deutsche Bank Group, and TATA TD Waterhouse Securities - a
joint venture between the TATA Group, India and TD Bank Financial Group, Canada. At Deutsche
Asset Management, he was responsible for advising the offshore fund Deutsche India Equity Fund,
Japan and MetLife Insurance.

Pankaj Gupta - Fund Manager

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Pankaj has done his B.Com (Hons), PGDBM, C.S and PGDBM IIM - Lucknow. He has experience of
over 4 years in Mutual Fund, Equity Research and Corporate Banking. His last assignment was ICICI
Bank Ltd. and has been with SBI Funds Management Pvt. Ltd. since December 2005.

Jayesh Shroff - Fund Manager

Jayesh has done his B.Com and PGD (MBFS) - ICFAI. He has experience of over 5 years as Fund
Manager. He also has wide experience in investment banking activities including M&A activities,
venture capital funding, preparation of business plans, project reports etc. His last assignment was with
BOB Mutual Fund and has been with SBI Funds Management Pvt. Ltd. since March 2006

Dy. Chief Executive Officer :

Didier Turpin
Prior to joining SBI Funds Management Pvt. Ltd., Mr Turpin was the Head of the European Activities
and Associate Director International Network, Société Général Asset Management (SGAM). Between
1997 and 1999 he was Finance Director of SGAM, UK. He was Deputy General Manager of SGAM
(Asia) Singapore between 1995 and 1997 and from 1988 to 1995 has held several positions within the
SG Custody Department in France and abroad.

Chief Investment Officer :

Navneet Munot
Navneet joined SBI Funds Management Private Limited as Chief Investment Officer in Dec. 2008. He
brings with him over 15 years of rich experience in Financial Markets. Most recently, he was the
Executive Director and head- multi strategy boutique with Morgan Stanley Investment Management.
Prior to joining Morgan Stanley Investment Management, he worked as the Chief Investment Officer -
Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Several funds
managed by Navneet got recognition for their consistent superior risk-adjusted performance and won
several awards from independent agencies such as CRISIL-CNBC TV 18, ICRA, Reuters Lipper and got
top ranking in Value Research. Navneet had been associated with the financial services business of the
group for over 13 years and worked in various areas such as fixed income, equities and foreign
exchange. His articles on matters related to financial markets have widely been published.

Navneet is a postgraduate in accountancy and business statistics and a qualified Chartered Accountant.
He is also a charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM

MUTUAL FUND Page 21

charterholder of Global Association of Risk professionals (GARP).

Vice President - Investment Department :

Thierry Nardozi
Thierry graduated from University of Glamorgan with a BA (Hons) in Business studies. He started his
career with Irish Life in Dublin before moving to Societe Generale Asset Management. Thierry has an
experience of 14 years within the asset management industry and has been involved in fund
management for 10 years. Prior to joining SBI Funds Management Pvt. Ltd. in October 2007, he was
handling institutional and mutual funds invested in European equities. Thierry is also a post-graduate of
SFAF (European Federation of Financial Analysts Societies).

Head Portfolio Management Services / Fund Manager :

Nipa Ladiwala
After obtaining a post graduate degree in Business Management and Law, Nipa worked as an equity
analyst, and dealer for the offshore Funds of UTI. Subsequently she was appointed as Fund Manager for
India Growth Fund, which was listed on NYSE. She was head of Research at UTI Securities before
joining SBI Funds Management Pvt. Ltd. as Head of PMS. Nipa has 6 years experience as Fund
Manager. She has a total of 15 years experience and has been with SBI Funds Management Pvt. Ltd
since October 2005.

Equity :

Aashish Wakankar (Vice President & Fund Manager)

Aashish Wakankar is a Bachelor of Science from University of Mumbai and holds Post Graduate
Diploma in Management Studies from Jamnalal Bajaj Institute of Management Studies, University of
Mumbai. He has more than 12 years of experience in capital markets ranging from institutional equities,
equity research and fund management. He is associated with SBI Funds Management from December
2005.

Prior to joining SBI Funds Management, he has worked with Kotak Mahindra Asset Management,
Deutsche Asset Management - part of Deutsche Bank Group, and TATA TD Waterhouse Securities - a
joint venture between the TATA Group, India and TD Bank Financial Group, Canada. At Deutsche
Asset Management, he was responsible for advising the offshore fund Deutsche India Equity Fund,
Japan and MetLife Insurance.

Debt / Fixed Income :

Parijat Agrawal (Head – Fixed Income)

Parijat has done his B.E (ECE) and PGDM (IIM Bangalore). He has got 12 years experience in capital
markets in areas like research, dealing and fund management. Parijat is associated with SBI Funds

MUTUAL FUND Page 22

Management Pvt. Ltd. since July 2006.

Prior to joining SBI Funds Management Pvt. Ltd., he was with State Bank of Mauritius Limited,
Mumbai as Head – Treasury.

Our expertise and excellent performance is frequently recognized by the mutual fund industry.

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.

MUTUAL FUND Page 23

 Awards & Accreditation

2010

2009

2008

2007

MUTUAL FUND Page 24

2006

MUTUAL FUND Page 25

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

MUTUAL FUND Page 26

index and the performance of such funds move with the movements of the index.

Magnum COMMA Fund

Magnum Equity Fund

Magnum Global Fund

Magnum Index Fund

Magnum MidCap Fund

Magnum Multicap Fund

Magnum Multiplier Plus 1993

Magnum NRI Investment Fund - FlexiAsset Plan

Magnum Sector Funds Umbrella

MSFU - Emerging Businesses Fund

MSFU - IT Fund

MSFU - Pharma Fund

MSFU - Contra Fund

MSFU - FMCG Fund

SBI Arbitrage Opportunities Fund

SBI Blue Chip Fund

SBI Infrastructure Fund - Series I

SBI Magnum Taxgain Scheme 1993

SBI ONE India Fund

SBI PSU Fund

SBI TAX ADVANTAGE FUND - SERIES I

MUTUAL FUND Page 27

 Magnum Equity Fund

Investment Objective

To provide the investor Long-term capital appreciation by investing in high growth companies along with
the liquidity of an open-ended scheme through investments primarily in equities and the balance in debt
and money market instruments

Asset Allocation

% of Portfolio of Plan A
Instrument Risk Profile
&B

Equity and related instruments not less than 70% High

Debt instruments not more than 30% Medium

Securitized Debt investments in debt not more than 10% Low

Money market instruments * Balance Low

Scheme Highlights

1. A diversified equity fund, focusing on aggressive growth

2.Ideal for investors who wish to benefit from the growth of the equity markets and are comfortable
with the attendant volatility

Launch Date Minimum Application

January 2, 1991 Rs. 1000

Entry Load Exit Load

NA 1) For exit within 1 year from the date of allotment -

1 %. 2) For exit after 1 year from the date of
allotment - Nil

SIP SWP

Rs.500/month - 12 months, Rs.1000/month - 6 available for a minimum of Rs. 500/- subject to

months, Rs.1500/quarter - 12 months maintaining the minimum investment payable on a
monthly basis

Nav's

Plan Latest Nav Date

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 Magnum Equity Fund - Growth 40.86 18/06/2010

Magnum Equity Fund - Dividend 30.83 18/06/2010

Periodical Net Asset Value

Magnum Equity NAV Index 1

The line graph depicts periodical Net Asset Value of Magnum Equity (Growth) Fund, the value is underlying
between Rs.20-40 price band, which is indicative of its consistent growth over a period of time.since 1991 this
fund is being available to the market and has become an consistent performer to the category of fund link with
equity market.

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 Research Methodology

The system of collecting data for research projects is known as research methodology. The data may be
collected for either theoretical or practical research for example management research may be
strategically conceptualized along with operational planning methods and change management.
Some important factors in research methodology include validity of research data, Ethics and the
reliability of measures most of your work is finished by the time you finish the analysis of your data.
Formulating of research questions along with sampling weather probable or non probable is followed by
measurement that includes surveys and scaling. This is followed by research design, which may be
either experimental or quasi-experimental. The last two stages are data analysis and finally writing the
research paper, which is organized carefully into graphs and tables so that only important relevant data
is shown.

Fundamental and Technical Analysis Tools

1- Calculation of Mean of both companies.

2- Calculation of Standard Deviation of respective companies.
3- Calculation of covariance’s
4- Calculation of Pearson's Correlation Coefficient.
5- Significance checks out by Probable Error.

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 CONCLUSION

While analyzing the data mentioned below to the table this could be concluded that the T.I.G.E.R.
Fund By the DSP BlackRock is more promising in term of return’s to the future, as there is low
variation to the NAV of it with Index Value alongside covariance and correlation are other indicative
facts that make oneself to recommend T.I.G.E.R. Fund.

Particulars T.I.G.E.R. Fund Magnum Equity Fund

Mean 39.93092946 34.13112033

S.D. 4.69946812 4.745691646

co-variance 1001.384 1076.599289

correlation 0.934765365 0.935133631

(Perfect Correlation)
P.E. 0.0054 0.0051
Signi.corre. 6 times =.0324 6 times =.0306

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