TREND ANALYSIS OF THE PERFORMANCE OF SPECIFIED MUTUAL FUNDS OF STATE BANK OF INDIA (SBI

)

Dissertation submitted in partial fulfillment of the requirements for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION of BANGALORE UNIVERSITY

By Kiran Kumar.H Reg. No. 10YACMA030

Under the guidance of: Mr. Soman Nambiar
Professor

PRESIDENCY BUSINESS SCHOOL

This project is prepared by my own effort and has not been submitted to any other university to get the award of any other Degree. Presidency B . Place: Bangalore KUMAR H Date: KIRAN 10YACMA030 . Bangalore. except to get the award of the Degree of Master of Business Administration of Bangalore University.Bangalore University 2011-2012 DECLARATION I hereby declare that this project report entitled “TREND ANALYSIS OF THE PERFORMANCE OF SPECIFIED MUTUAL FUNDS OF STATE BANK OF INDIA (SBI)” is prepared by me under the valuable guidance of Prof.School. Soman Nambiar lecturer in Department of Management.

Bangalore . I am deeply indebted to my parents and friends whose constant support has provided valuable in the completion of this project successfully. without which this project could not have been completed. I would like to express my sincere gratitude to Mr Bharma Sharma Director of Presidency B – School. He has been a constant source of guidance and encouragement throughout this study. Prof Soman Nambiar for his kind and valuable help.who provided me an opportunity to undertake this project work. Last but not least I would like to thank staff members of Presidency B – School for enabling me in documenting this project.ACKNOWLEDGEMENT I am extremely grateful to my project guide. Place: Bangalore KUMAR H KIRAN . thus making way for expanding my knowledge about the subject.

7 Mutual Fund Advantages and Drawbacks 1.8 Current Scenario of Mutual Fund Industry .Date: 10YACMA030 TABLE OF CONTENTS CHAPTER NO.3 Characteristics of a Mutual Fund 1. PARTICULARS List of tables List of Graphs List of Abbreviations Abstract PAGE NO. 1 Introduction 1.2 Mutual Fund 1.5 Mutual Fund Structure 1.1 Trend Analysis 1.4 History of Mutual Fund Industry 1.6 Types of schemes 1.

1 Summary of Findings 5.5 Scope and Objective of the Research 2.4 Awards 4 5 Results. Conclusions and Suggestions 5.2 Conclusions 5.10 Tools and Techniques 2.3 Statement of the Problem 2.9 Future Scenario 2 Review of Literature and Design of the Study 2.9 Data Collection 2.1 Corporate Profile 3.7 Hypothesis 2.4 Need of the Study 2.2 Review of Literature 2.12 Chapter Scheme 3 Profile of the Company 3.11 Limitations of the Study 2.8 Operational definitions of concept 2.1.3 Suggestions 5.6 Research Methodology 2. Analyses and Discussions Summary of Findings.4 Policy Implications & Scope for Further Study .3 CIO’s Desk 3.2 MD’s Desk 3.1 Introduction 2.

1.2.4.2 4.5.2.1 4.1 4.5.2 4.4 4.1 4.1.1 4.1 4.2 4.1 4.3 4.5 4.2 4.2 PARTICULARS Table showing the Magnum Multicap fund NAVs Table showing the calculation of Magnum Multicap Fund NAVs Table showing the Magnum Multicap Fund Table showing the Magnum Equity Fund NAVs Table showing the calculation of Magnum Equity Fund NAVs Table showing the Magnum Equity Fund Table showing the SBI blue chip Fund NAVs Table showing the calculation of SBI blue chip Fund NAVs Table showing the SBI blue Chip Fund Table showing the Magnum Children’s benefit plan NAVs Table showing the calculation of Magnum Children’s benefit plan NAVs Table showing the Magnum Children’s benefit Plan Fund Table showing the Magnum income plus fund – saving plan Table showing the Calculation of Magnum income plus fund – saving plan Table showing the Magnum Income Plus Fund Table showing the Magnum income fund NAVs Table showing the Calculation of Magnum income Fund NAVs Table showing the Magnum Income Fund Pg no .Appendices References LIST OF TABLES SL.6 4.6.2 4.3.NO 4.6.4.2 4.3.1 4.

5 4.1 4.1.6.10 4. 9 4.8.2 Table showing the Magnum instacash fund NAVs Table showing the Calculation of Magnum instacash fund NAVs Table showing the Magnum Instacash Fund Table showing the Magnum instacash fund – Liquid floater NAVs Table showing the Calculation of Magnum instacash fund – Liquid floater NAVs Table showing the Magnum Liquid Floater Fund Table showing the SBI premier liquid fund NAVs Table showing the Calculation of SBI premier liquid fund NAVs Table showing the SBI Premier Liquid Fund Table showing the SBI gold exchange traded scheme NAVs Table showing the calculation of SBI gold exchange traded scheme NAVs Table showing the SBI Gold ETS Fund LIST OF GRAPHS SL.1 4.1 4.3 4.1 4.8 4.8.9.7 4.3. 9.1 4.7.2.7.1 4.1 4.2 4.1 4.4 4.2 4.NO 4.8.10.8 4.1 4.5.4.1 4.7 4.1 4.2 4.10.1 PARTICULARS Graph Showing the Magnum Multicap fund NAVs Graph showing the returns for each year of Magnum Multicap Fund NAVs Graph showing the Magnum Equity Fund NAVs Graph showing the returns for each year of Magnum Equity Fund NAVs Graph showing the SBI blue chip Fund NAVs Graph showing the returns for each year of SBI blue chip Fund NAVs Graph showing the Magnum Children’s benefit plan NAVs Graph showing the returns for each year of Magnum Children’s benefit plan NAVs Graph showing the Magnum income plus fund – saving plan Graph showing the returns for each year of Magnum income plus fund – saving plan Graph showing the Magnum income fund NAVs Graph showing the returns for each year of Magnum income Fund NAVs Graph showing the Magnum instacash fund NAVs Graph showing the returns for each year of Magnum instacash fund NAVs Graph showing the Magnum instacash fund – Liquid floater NAVs Graph showing the returns for each year of Magnum instacash fund – Liquid floater NAVs Pg no .2 4.6 4.1 4.7.4.

1 Graph showing the SBI premier liquid fund NAVs Graph showing the returns for the each year of SBI premier liquid fund NAVs Graph showing the SBI gold exchange traded scheme NAVs Graph showing the returns for each year of SBI gold exchange traded scheme LIST OF ABBREVIATIONS MF SEBI AMC RBI UTI IDBI LIC GIC NAV CP COD HUF HNIs ETF PMS .Commercial Paper .Certificate of Deposit .Compound Annual Growth Rate .Mergers and Acquisitions HDFC .Net Asset Value .Treasury Bills ELSS .Equity Linked Saving Schemes CAGR .Exchange Trade Fund .10.Securities exchange Board of India .4.Reserve Bank of India .Portfolio Management Services M & A .Mutual Funds .Life Insurance Corporation of India .Asset Management Company . 9 4.1 4.General Insurance Corporation of India .Hindu Undivided Family .Housing Development Finance Corporation T-bills . 9.10 4.High Net worth Individuals .Industrial Development Bank of India .Unit Trust of India .

residual variance. average variance and average expected return. The study found that SBI mutual funds do not differ significantly in terms of mean returns%. Keywords: Mutual Funds.Bombay Stock Exchange . fund return . Sharpe fund performance measure. risk-return analysis.European Central Bank . and variable effects of diversification on investment performance for the period Mar. however. portfolio diversification. RV. there is a significant difference between in terms of average standard deviation. However. has a direct impact on Treynor’s. When residual variance (RV) is used as the measure of mutual fund portfolio diversification characteristic. there is a statistical difference between The model built on testing the impact of diversification on fund performance and found a statistical difference among sponsorship classes when residual variance is used as a measure of portfolio diversification and excess standard deviation adjusted returns as a performance measure. performance evaluation. Net asset value. 2009 to Apr 2012.Coefficient of variance .Residual value SDAR .Standard deviation adjusted return ABSTRACT The study used sample of state bank of India (SBI) mutual funds of varied net asset values to investigate the differences in characteristics of assets held.ECB BOJ BSE COV RV .Bank of Japan . The study also found that there is a statistical difference between sponsorship classes in terms of e SDAR(excess standard deviation adjusted returns)as a performance measure.