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Supervised by :- Submitted by

Mr. Rajesh Sharma Kiranjeet kaur

Roll no: 1521065



(2015 17)


I hereby declare that the Training Report was submitted by me under the supervision and
guidance of Mr Rajesh Sharma, Project guide, Global Institute of Management, Amritsar in
Partial Fulfillment of M.B.A. I further declare that I am surely responsible for omission and
commission of errors if any.

(Kiranjeet kaur)


Amongst the wide panorama of people who provided me the inspiration, guidance and
encouragement, I take this opportunity to thank those who gave me indebted assistance and
constant encouragement for completing this project.

I would like to thank Mr. Pankaj karma, Manager of State bank of India, FGC Road,
Amritsar for his continuous help in completion of this project. He motivated me and was
available whenever his guidance was sought. He was actively involved throughout the project
and was also kind enough to tell me the strengths and weaknesses and how I could improve
myself to face the corporate world. Without his support the completion of this project would
be impossible.

I would like to extend my thanks to all the employees/staff of the State bank of India, FGC
Road, Amritsar, for their support.

I would also like to thank my college project guide Mr Rajesh Sharma, Global Institute of
Management, Amritsar, for her valuable guidance and support.

Thanking you All

Place: Amritsar (Kiranjeet kaur)




2 Industry profile 10-11

3 Company profile 12-13

4 Background and inspection of the company 14

5 Nature and business carried 15-16

6 Vission , mission and quality policy 17-19

7 Products and services 20-30

8 Area of operation - global national and regional 31-32

9 Competitors information 33

10 Achievements and awards 34-35

11 Future growth and prospectus 36-37


13 Literature review 38-43


Table no TABLE Page no

4.1 Income of investors 52

4.2 Qualification of investors 53

4.3 Demographics 54

4.4 Occupations 55

4.5 Kind of investments 56

4.6 Amount invested on mutual funds 57

4.7 Years of doing investment 58

4.8 Time horizon of investment 59

4.9 Reason for preferrence of mutual funds 60

4.10 Preferrence of investors towards sip 61

4.11 Which plan adopted 62

4.12 Media through know about mutual fund 63

4.13 Why choose sip 64

4.14 65
Doing investment in any other company

4.15 Is sbi product is better 66


Company: SBI Mutual Fund and Securities Ltd.

The project on Portfolio Management and mutual fund analysis was carried out in SBI GROUP
Wakdewadi, Pune. The intention behind taking over this project with SBI Group was to primarily
understand the role of banks in providing investment solutions and advices to its customers. The
project was carried out for the period of 45 days i.e. from July 16, 2007 to Aug. 31, 2007. The
project was done by analyzing the different investment options available and to compare them with
the mutual fund investments. For the purpose of analyzing the Investment pattern and selecting
effective and beneficial schemes of mutual funds different available schemes were thoroughly
analyzed and then an ideal portfolio of those investment options available was made. Finally the
ideal portfolio was created to understand the importance of portfolio management and to ease the
selection of different mutual fund schemes and the weight age to be given to them. The project study
focused on increasing brand awareness at retail level clients and various activities that result in brand
awareness among the same. This project also consists of generating and getting clients, generating
database and after sales services to retain client and make them happy investor.

While analyzing trend, I tried to map how Asset Under Management (AUM) varied over the period
with BSE-Sensex to facilitate feature projections. It has been done separately for Equity Schemes,
Income Schemes, Balanced Schemes and Liquid Schemes.



The first introduction of a mutual fund in fund occurred in 1963, when the government of
india launched unit trust in india (UTI). UTI enjoyed a monopoly in the Indian mutual fund market
until 1987, when a host of other government-controlled Indian financial companies established their
own funds, including state bank of india, canara bank, and punjab national bank. This market was
made open to private players in 1993, as a result of the historic brought forward by the then
of liberlization, privatization and globalization (LPG). The first private sector fund to operate in

India was Kothari Pioneer, which later merged with . In 1996,SEBI, the regulator of mutual funds in
India, formulated the Mutual Fund Regulation which is a comprehensive regulatory framework.

Mutual funds are an under tapped market in India

Deposit being available in the market less than 10% of Indian households have invested in

mutual funds. A recent report on Mutual Fund Investments in India published by research and

analytics firm, Boston Analytics, suggests investor are holding back from putting their money

into mutual funds due to their perceived high risk and a lack of information on how mutual

funds work. There are 46 Mutual Funds as of June 2013.

The primary reason for not investing appears to be correlated with city size. Among

respondents with a high saving rate, close to 40% of those who live in metros and Tier I cities

considered such investments to be very risky, whereas 33% of those in Tier II cities said they

did not know how or where to invest in such assets.


Mutual fund investments are sourced both from institutions (companies) and individuals.

Since January 2013, institutional investors have moved to investing directly with the mutual

funds since doing so saves on the expense ratio incurred. Individual investors are, however,

served mostly by investment advisor and banks. Since 2009, online platforms for investing in

Mutual funds have also evolved.


Larger Indian Mutual Fund Industry has benefited from outsourcing the activity of servicing

their investors to two of the leading Registrar and Transfer Agents (RTAs) in India

namely CAMS and Karvy. While CAMS commands close to 65% of the Assets servicing,

rest is with Karvy. mutual fund services its investors through its own in-house RTA set up.

Both the RTAs have vibrant network of their local offices which enable the Mutual Fund

Investors to transact locally. These touch points (or) Customer Service Centers (CSCs),

provide a wide range of servicing including, financial transaction acceptance & processing,

non financial changes, KYC fulfillment formalities, nomination registration, transmission of

units apart from providing statement of accounts etc.

These two RTAs also provide most of the similar facilities in their respective assets which are

very user friendly.


A partner for life SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with
an investor base of over 4.6 million. With over 20 years of rich experience in fund management, SBI
MF brings forward its expertise in consistently delivering value to its investors. Proven Skills in
wealth generation: SBI Mutual Fund is Indias 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 - Indias 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 Socit General

Asset Management, one of the worlds 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 its investors handsomely with consistently high 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 HNIs. Today, the fund manages
over Rs. 51,461 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 organizers. 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

Fund house expertise:

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 minimization 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

Risk Factors Mutual Funds and Securities Investments are subject to market risks and there is no
assurance or guarantee that the objective of scheme(s)/plan(s) will be achieved. As with any other
investment in securities, the NAV of the Magnums/Units issued under the scheme(s)/plan(s) can go
up or down depending on the factors and forces affecting the securities market. Past performance of
the Sponsor/AMC/Mutual Fund/Scheme(s)/Plan(s) and their affiliates do not indicate the future
performance of the scheme(s) of the Mutual Fund. Statutory details: SBI Mutual Fund has been set
up as a trust under the Indian Trusts Act, 1882. State Bank of India (SBI ), the sponsor is not
responsible or liable for any loss resulting from the operation of the schemes beyond the initial
contribution made by it of an amount of Rs. 5 lakhs towards setting up of the mutual fund

Trustee Company: SBI Mutual Fund Trustee Company Pvt. Ltd. Please read the offer
document of the respective schemes carefully before investing


Company Background - State Bank of India

Industry Name Finance - Banks - Public Sector

House Name SBI Group

Collaborative Country Name N.A.

Joint Sector Name N.A.

Year Of Incorporation 1955

Year Of Commercial Production N.A.

Regd. Office

Address State Bank Bhavan, , Corporate Centre,

District Mumbai

State Maharashtra

Pin Code 400021

Tel. No. 022-22740841,022-22740842

Fax No. 022-22855348

Email : Internet :

Auditors Company Status

Amit Ray & Co. N.A.


Name Datamatics Financial Services Ltd.

Address Plot No. B-5, MIDC, Part B Cross Lane, Andheri (E), Mumbai - 400093, Maharashtra

Tel. No. : 022-66712151 - 160 Fax No. : 022-66712230

Email : Internet :


A MUTUAL FUND is simply a financial intermediary that allows a group of investors to pool their
money together with a predetermined investment objective. The mutual fund will have a fund
manager who is responsible for investing the pooled money into specific securities (usually stocks or
bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and
become a shareholder of the fund. Mutual funds are one of the best investments ever created because
they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or
bonds to buy). If you would like to know the history of mutual funds,

By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower
trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is

Diversification is the idea of spreading out your money across many different types of investments.
When one investment is down another might be up. Choosing to diversify your investment holdings
reduces your risk tremendously.

The most basic level of diversification is to buy multiple stocks rather than just one stock. Mutual
funds are set up to buy many stocks (even hundreds or thousands). Beyond that, you can diversify
even more by purchasing different kinds of stocks, then adding bonds, then international, and so on. It
could take you weeks to buy all these investments, but if you purchased a few mutual funds you could
be done in a few hours because mutual funds automatically diversify in a predetermined category of
investments (i.e. - growth companies, low-grade corporate bond)

A MUTUAL FUND is an investment company designed to pool the funds of smaller investors and
place them under professional management. A mutual fund allows small investors to diversify their
portfolios. When a mutual fund is formed, it issues a prospectus detailing its intended investment
strategy, and it is not permitted to deviate from that strategy without public disclosure. A mutual fund
prospectus also details the fees investors will be charged, which can be substantial. In the US, a
mutual fund is regulated by the SEC. A mutual fund may invest in stocks, bonds, options, futures,

currencies, and/or commodities. Although any specific mutual fund is required to follow a specific
investing strategy, the range of strategies available is wide. A mutual fund such as an index fund may
attempt to replicate market or sector index. A mutual fund may specialize in large-cap, small-cap or
even micro-cap stocks. Investors seeking regular income can invest in a mutual fund that specializes
in government bonds or, for the more aggressive, corporate debt.


Stocks represent shares of ownership of a company. Examples of public companies include IBM,
Microsoft, Ford, Coca-Cola, and General Motors etc. Stocks are the most common ownership
investment traded on the market.


Bonds are basically a chance for you to lend your money to the government or a company. You
can receive interest and your principle back over predetermined amounts of time. Bonds are the
most common lending investment traded on the market.

There are many other types of investments other than stocks and bonds (including annuities, real
estate, and precious metals), but the majority of mutual funds invest in stocks and/or bonds.

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial
goal. The money thus collected is then invested in capital market instruments such as shares,
debentures and other securities. The income earned through these investments and the capital
appreciation realized is shared by its unit holders in proportion to the number of units owned by them.
Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to
invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a mutual fund

In the working of mutual fund, there are following steps-

1. First of all, Asset Management Company issues new fund offer.

2. Interested investors invest the money with fund manager.

3. Then fund manager invests the money in different profitable securities.

4. Then securities generate returns.

5. These returns are passed back to investors.

Returns are given to investors according to the units given to them which is determined according to the
investment made by them in the mutual funds



The State Bank of India has launched a mutual fund called State bank of India Mutual fund in
1987.State Bank of India funds management is a joint venture between State Bank of India, the
countrys largest bank and Societe Generale Asset Management (france), one of the worlds
leading fund management companies. With over 20 years of rich experience in fund
management, SBI Funds Management PVT. LTD. is one of the largest investment management
firms in India managing investment mandates of over 46 lakh investors. With the network of
over 130 points of acceptance spread across India over vast family of investors is expanding
faster and further. State Bank of India Mutual Fund has won the prestigious CNBC TV8 Crisil
Mutual Fund of the Year Award 2007, but above all, it is the trust of over 46 lakh investors that
eggs us on to deliver innovative and stable investment service, day after day. It is the driving
force for our team of investment experts to develop and deliver products that help investors like
you achieve their financial objectives


With 25 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd. .


Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment
option to the masses in the country. Working towards it, we developed innovative, need-specific
products and educated the investors about the added benefits of investing in capital markets via
Mutual Funds.Today, we have been actively managing our investor's assets not only through our
investment expertise in domestic mutual funds, but also offshore funds and portfolio management
advisory services for institutional investors.This makes us one of the largest investment
management firms in India, managing investment mandates of over 5.4 million investors.


SBI MFPL was founded with the vision: to be globally respected organization whose core values lie
in the integrity with which we provide expert investment solutions to our investors.

To be the most preferred and the largest fund house for all asset classes, with a consistent track
record of excellent returns and best standards in customer service, product innovation, technology
and HR practices.


Constantly evolving fund houses which focuses on customer delight, transparency and
sustained returns.
Attracting, nurturing and retaining the best talents.
Leaders and not followers, targeting to set the benchmark rather than following it.
Leveraging on latest technology and group synergy to enhance business effectiveness.
Global reach and awareness.
Active risk management and global best practices in all business areas.
Launching a wide range of innovative products.


Integrity - True to self and to all our stakeholder.

Team work - Each individual work hand in hand to achieve common organization
Transparency- A deep sense of trust, winning the confidence and respect of
Courage -To take the right decision without any fear onfavour, in the best interest of
all our stakeholder.
Commitment -To remain steadfast and true to our principles and goals, irrespective
of situations.
To be passionate about creating value.
To make commitment a way of life.

Customer friendly-Customer first, understanding the customers need with full
empathy and providing solutions through customer delight.
Objectivity - Customer centric, creative and clarity.



The primary objective of the equity asset class is to provide capital growth / appreciation by investing
in the equity and equity related instruments of companies over medium to long term.

SBI Magnum Multicap Fund

Magnum Multiplier Plus 1993
SBI Blue Chip Fund
SBI Magnum Global Fund
SBI One India Fund
SBI Magnum Midcap Fund


The primary objective of the sectoral fund is to provide the investor to invest in a particular sector.

SBI Magnum Sector Funds Umbrella - Emerging Businesses Fund

SBI Magnum Sector Funds Umbrella - Contra Fund
SBI Magnum Sector Funds Umbrella - FMCG Fund SBI Magnum
Sector Funds Umbrella - IT Fund
SBI Magnum Sector Funds Umbrella - Pharma Fund


SBI Magnum Income Plus Fund - Saving Plan

SBI The schemes in this asset class generally invest in fixed income securities such as bonds,
corporate debentures, government securities (gilts), money market instruments, etc. and provide
regular and steady income to investors.

SBI Magnum Children's Benefit Plan
SBI Dynamic Bond Fund
SBI Magnum Gilt Fund - Short Term Plan
SBI Magnum Gilt Fund - Long Term Plan
SBI Short Horizon Debt Fund - Short Term Fund

SBI Short Horizon Debt Fund - Ultra Short Term Fund


The strategy for liquid funds include investments in short investment horizon, which includes 'cash'
assets such as treasury bills, certificates of deposit and commercial paper, bill of exchange, call
money market.

SBI Magnum InstaCash Fund

SBI Magnum InstaCash Fund - Liquid Floater

SBI Premier Liquid Fund


These are closed ended debt schemes with a fixed maturity date and they invest in debt & money
market instruments maturing on or before the date of the maturity of the scheme.

SBI Debt fund series.

SBI Debt fund series 365 Days
SBI Debt fund series 180 Days
SBI Debt fund series 90 Days


Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial position, risk
tolerance and return expectations etc. The table below gives an overview into the existing types of
schemes in the Industry.

Equity / Growth Fund Liquid Funds

Invest primarily in equity Provide high level of

and equity related liquidity by investing in
instruments. money market and debt
Children's Gift Fund
Debt/ Income Fund
Children's Gift Fund
Invest in money market and
debt instruments and provide
optimum balance

Fixed Maturity Plan

Invest primarily in Debt /

Money Market Instruments
and Government Securities.


1. By Structure

Open Ended Schemes

Close - Ended Schemes

Interval Schemes

2. By Investment Objective

Growth Schemes

Income Schemes

Balanced Schemes

Money Market Schemes

Gilt schemes

3. Other Schemes

Tax Saving Schemes

Special Schemes

Index Schemes

Sector specific schemes


These funds have a stipulated maturity period generally ranging from 3 to 15 years. The fund is open
for subscription only during a specified period at the time of their launch. Closed-end funds trade on
stock exchanges like stocks or bonds. The market price of closed-end funds is determined by supply
and demand and not by net-asset value (NAV), as is the case in open-end funds.


An open-end mutual fund is a fund that does not have a set number of shares. It continues to sell
shares to investors and will buy back shares when investors wish to sell. Units are bought and sold at
their current net asset value.

Open-end funds keep some portion of their assets in short-term and money market securities to
provide available funds for redemptions. A large portion of most open mutual funds is invested in
highly liquid securities, which enables the fund to raise money by selling securities at prices very
close to those used for valuations. The unit are bought and sold at NAV related price.


Interval schemes are a combination of open-ended and closed-ended schemes. These schemes
remain open for sale and repurchase only during a specified period.


Large cap funds are those mutual funds, which seek capital appreciation by investing primarily in
stocks of large blue chip companies with above-average prospects for earnings growth.

Different mutual funds have different criteria for classifying companies as large cap. Generally,
companies with a market capitalization in excess of Rs. 1000 crore are known large cap companies.
Investing in large caps is a lower risk-lower return proposition (vis--vis mid cap stocks), because
such companies are usually widely researched and information is widely available.


Mid cap funds are those mutual funds, which invest in small / medium sized companies. As there is
no standard definition classifying companies as small or medium, each mutual fund has its own
classification for small and medium sized companies. Generally, companies with a market

capitalization of up to Rs.500 crores are classified as small. Those companies that have a market
capitalization between Rs. 500 crores and Rs. 1,000 crores are classified as medium sized.

Big investors like mutual funds and Foreign Institutional Investors are increasingly investing in mid
caps nowadays because the price of large caps has increased substantially. Small / mid sized
companies tend to be under researched thus they present an opportunity to invest in a company that
is yet to be identified by the market. Such companies offer higher growth potential going forward
and therefore an opportunity But mid cap funds are very volatile and tend to fall like a pack of cards
in bad times. So, caution should be exercised while investing in mid cap mutual funds.


Balanced fund is also known as hybrid fund. It is a type of mutual fund that buys a combination of
common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital
appreciation while avoiding excessive risk.

Balanced funds provide investor with an option of single mutual fund that combines both growth and
income objectives, by investing in both stocks (for growth) and bonds (for income). Such diversified
holdings ensure that these funds will manage downturns in the stock market without too much of a


Growth funds are those mutual funds that aim to achieve capital appreciation by investing in
equities. They focus on those companies, which are experiencing significant earnings or revenue
growth, rather than companies that pay out dividends.

Growth funds tend to look for the fastest-growing companies in the market. Growth managers are
willing to take more risk and pay a premium for their stocks in an effort to build a portfolio of

companies with above-average earnings momentum or price appreciation.In general, growth funds
are more volatile than other types of funds, rising more than other markets. Only aggressive
investors, or those with enough time to make up for short-term market losses, should buy these


A money market fund is a mutual fund that invests solely in money market instruments. Money
market instruments are forms of debt that mature in less than one year and are very liquid. Treasury
bills make up the bulk of the money market instruments. Securities in the money market are
relatively risk-free.

Money market funds are generally the safest and most secure of mutual fund investments. The goal
of a money-market fund is to preserve principal while yielding a modest return. Money-market
mutual fund is akin to a high-yield bank account but is not entirely risk free. When investing in a
money-market fund, attention should be paid to the interest rate that is being offered.


Sector mutual funds are those mutual funds that restrict their investments to a particular segment or
sector of the economy. These funds concentrate on one industry such as infrastructure, heath care,
utilities, pharmaceuticals etc. The idea is to allow investors to place bets on specific industries or
sectors, which have strong growth potential.


The scheme offer deduction from gross total income to the investors, at present, under Sec.80c of the
income Tax Act. The investment made to any equity linked saving scheme are eligible for deduction

up to Rs 1,00,000 every financial year. Tax saving schemes are growth oriented and invest
predominantly in equities.


These funds invest exclusively in government securities which have zero credit risk. The NAV of
these schemes are determined by changes in interest rates and other economic factors as is the case
with income or debt oriented scheme.


There are numerous benefits of investing in mutual funds and one of the key reasons for its
phenomenal success in the developed markets like US and UK is the range of benefits they offer,
which are unmatched by most other investment avenues. We have explained the key benefits in
this section. The benefits have been broadly split into universal benefits, applicable to all schemes,
and benefits applicable specifically to open-ended schemes.


It simply means that you must spread your investment across different securities (stocks, bonds,
money market instruments, real estate, fixed deposits etc.) and different sectors (auto, textile,
information technology etc.). This kind of a diversification may add to the stability of your returns,
for example during one period of time equities might underperform but bonds and money market
instruments might do well enough to offset the effect of a slump in the equity markets. Similarly the
information technology sector might be faring poorly but the auto and textile sectors might do well
and may protect your principal investment as well as help you meet your return objectives


Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules,
which govern mutual funds. These rules relate to the formation, administration and management of
mutual funds and also prescribe disclosure and accounting requirements. Such a high level of
regulation seeks to protect the interest of investors.


Funds yours money is invested across different companies or sectors. By doing this yours investment
returns get averaged. This means, even if two investments go bad other investments may average
your returns.


A mutual fund invests in a portfolio of assets, i.e. bonds, shares, etc. depending upon the investment
objective of the scheme. An investor can buy in to a portfolio of equities, which would otherwise be
extremely expensive. Each unit holder thus gets an exposure to such portfolios with an investment as
modest as Rs.500/-. This amount today would get you less than quarter of an Infosys share! Thus it
would be affordable for an investor to build a portfolio of investments through a mutual fund rather
than investing directly in the stock market.


Returns in the mutual funds are generally better than any other option in any other avenue over a
reasonable period of time. People can pick their investment horizon and stay put in the chosen fund
for the duration. Equity funds can outperform most other investments over long periods by placing
long-term calls on fundamentally good stocks. The debt funds too will outperform other options such
as banks. Though they are affected by the interest rate risk in general, the returns generated are more

as they pick securities with different duration that have different yields and so are able to increase
the overall returns from the portfolio


Any income distributed after March 31,2014 will be subject to tax in the assessment of all Unit
holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds,
income distributions for the year ending March 31, 2014, will be taxed at a concessional rate of
10.5%. In case of Individuals and Hindu Undivided Families a deduction uptoRs. 9,000 from the
Total Income will be admissible in respect of income from investments specified in Section 80L,
including income from Units of the Mutual Fund. Units of the schemes are not subject to Wealth-Tax
and Gift-Tax


An investor can purchase or sell fund units directly from a fund, through a broker or a financial
planner. The investor may opt for a Systematic Investment Plan (SIP). In addition to this an
investor receives account statements and portfolios of the schemes.


Open-ended mutual funds disclose their Net Asset Value (NAV) daily and the entire portfolio
monthly. This level of transparency, where the investor himself sees the underlying assets bought
with his money, is unmatched by any other financial instrument. Thus the investor is in the know of
the quality of the portfolio and can invest further or redeem depending on the kind of the portfolio
that has been constructed by the investment manager.


In open-ended mutual funds, you can redeem all or part of your units any time you wish. Some
schemes do have a lock-in period where an investor cannot return the units until the completion of
such a lock-in period.


Mutual Funds offering multiple schemes allow investors to switch easily between various schemes.
This flexibility gives the investor a convenient way to change the mix of his portfolio over time


Mutual funds have their drawbacks and may not be for everyone:


No investment is risk free. If the entire stock market declines in value, the value of mutual fund
shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer risks
when they invest in mutual funds than when they buy and sell stocks on their own. However, anyone
who invests through a mutual fund runs the risk of losing money.


All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge
sales commissions or "loads" to compensate brokers, financial consultants, or financial planners.
Even if you don't use a broker or other financial adviser, you will pay a sales commission if you buy
shares in a Load Fund.


During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent of
the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on the
income you receive, even if you reinvest the money you made.


SBI provides a range of banking products through its network of branches in India and

overseas, including products aimed at non resident indians (NRIs). SBI has 14 regional hubs

and 57 Zonal

Offices that are located at important cities throughout India.

Domestic presence

SBI has 18,354 branches in India. In the financial year 201213, its revenue was 2.005

trillion (US$30 billion), out of which domestic operations contributed to 95.35% of revenue.

Similarly, domestic operations contributed to 88.37% of total profits for the same financial

Under the pradhan mantra jhan dhan yogna of financial inclusion launched by Government in

August 2014, SBI held 11,300 camps and opened over 3 million accounts by September,

included 2.1 million accounts in rural areas and 0.88 million accounts in urban area

International presence

As of 201415, the bank had 191 overseas offices spread over 36 countries having the largest

presence in foreign markets among Indian banks. It has branches in Singapore,

Moscow, colombo, dhaka, Frankfurt, Hong Kong, tehran, , London, Los Angeles, Male in the

Maldives, , dubai, New York, osaka , Sydney, and Tokyo. It has offshore banking units in the

Bahamas and Bahrain, and representative offices in Myanmar, Bhutan and cape town.

SBI has 7 retail banking branches in Singapore.

The Canadian subsidiary SBI Canada Bank (previously State Bank of India (Canada)) also

to 1982. It has six branches, four in the toranto area and two in the vancouver area.

SBI operates several foreign subsidiaries or affiliates.

In 1990, it established an offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has

branches in major cities/towns of the country including Rodrigues.

State Bank of India Branch at jaffna, Sri Lanka

SBI Sri Lanka now has three branches located in colombo, kandy and jaffna. The Jaffna

was opened on 9 September 2013. SBI Sri Lanka, the oldest bank in Sri Lanka, celebrated its

150th year in Sri Lanka on 1 July 2014.

State Bank of India (S.B.I.) Branch at Tsim Sha Tsui, Hong Kong

In 1982, the bank established a subsidiary, state bank of india, which now has ten branches

nine branches in the state of California and one in Washington, D.C. The 10th branch was

opened in Fremont, California on 28 March 2011. The other eight branches in California are

located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and


In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the IndoNigerian

In Nepal, SBI owns 49% of SBI Nepal (State Bank in Nepal) share with Nepal Government

owing the rest and SBI NEPAL has branches throughout the country in each and every city as

banking has become the major part of daily life for nepalese people.

In Moscow, SBI owns 60% of commercial bank of india, with canara bank owning the rest.

In Indonesia, it owns 76% of PT Bank Indo Monex.

The State Bank of India already has a branch in Shanghai and plans to open one in tianjin.

In Kenya, State Bank of India owns 76% of giro commercial bank, which it acquired
for US$8

million in October 2005.

In January 2016, SBI opened its first branch in seoul, South Korea following the continuous

significant increase in trade due to the signed between New Delhi and Seoul in 2009.



SBI mutual fund was ranked as the top bank in India based on tier 1 capital by THE
BANKER magazine in a 2014 ranking.

SBI mutual fund was ranked 298th in the fortune global 500 rankings of the world's
biggest corporations for the year 2012.

SBI mutual fund was named the 29th most reputed company in the world according
to forbes 2009 rankings

SBI was 50th Most Trusted brand in India as per the brand trust report 2013, an
annual study conducted by Trust Research Advisory, a brand analytics company and
subsequently, in the brand trust report 2014, SBI finished as India's 19th Most Trusted
Brand in India.

June 08 Awards & Recognitions CNN IBN Network 18 has selected Shri O.P.Bhatt
as Indian of the Year Business 2007.

Asian Centre for Corporate Governance & Sustainability and Indian Merchants
Chamber has awarded the Transformational Leader Award 2007.

State Bank of India mutual fund ranked as NO.1 in the 4Ps B & M & ICMR Survey
on India's Best Marketed Banks in August2009.

Shri Om Prakash Bhatt declared as one of the '25 Most Valuable Indians' By The
Week Magazine For 2009.

State Bank of India mutual fund has been adjuged The Best Bank 2009 By Business
India in August2009.

It bagged Most Preferred Bank and Most Preferred Brand for Home Loan at CNBC
Awaaz Consumer Awards.

It became the only Indian bank to get listed in the Fortune Global 500 List.

SBI mutual fund was at the 70th slot in the top 1000 bank survey by Banker Magazine

It was awarded Golden award for being among the two most trusted banks in India by
Readers Digest.

SBI mutual fund is ranked 6th in the Economic Times Market Cap List.

SBI mutual fund ranked as no.1 in the 4Ps B & M & ICMR Survey on India's Best
Marketed Banks (August2009)


With a recent leadership change in its CMD's post, but with no change in its controversial
teaser loan product in home financing, and a renewed interest in growings its retail business,

here is a look at SBI's (BSE: 500112, NSE: SBIN) short term and long term prospects for


SBI recently concluded a successful bond issue that takes care of the fund requirements. The
bank remains bullish on teaser loans in home financing, and seems to have the tacit approval
of Finance Ministry, even against the wishes of banking regulator, Reserve Bank of India
(RBI). Teaser home loans are expected to be a future money-spinner for SBI, if it doesnt
regress to a sub-prime like scenario. Due to its unique positioning as the bank closest to
Government of India, SBI has unique access to some incredibly large fund decisions like the
recent Employees' Provident Fund Organization's (EPFO) decision to park Rs. 3.5 lakh crore
solely with SBI, even if it is for three months.


SBI is 330% larger than Punjab National Bank (BSE: 532461, NSE: PNB), the nearest public
sector competitor by income; and 275% larger than nearest private sector peer, ICICI Bank
(BSE: 532174, NSE: ICICIBANK). Not only cant both of them play catch-up in the coming
few years, but size-wise things are getting better for SBI due to the upcoming mergers with
SBI Group banks like State Bank of Mysore (BSE: 532200, NSE: MYSOREBANK), State
Bank of Bikaner & Jaipur (BSE: 501061, NSE: SBBJ), & State Bank of Travancore (BSE:
532191, NSE: SBT). The dominance in income is also on a comparable asset base. SBI has
shown the capability for leading other PSBs in innovative products, and lately even a brand
of defiance to regulators when it comes to pushing things their way. State Bank Group has
access to some of the lowest cost Current Account / Savings Account (CASA) funds in the
country that protects margins. Reputation wise and trust wise, SBI is quite popular among


Despite leadership in income and CASA, SBI lags in profitability compared with a few other

PSBs, and many private sector banks. This might hint at systemic inefficiencies. SBI's recent
rows with RBI regarding teaser loans and provisioning can invite unnecessary wrath and
regulation. SBI has been very sluggish compared with private sector peers like ICICI Bank
when it comes to offering a bouquet of services. State Bank of India had witnessed a
significant negative cash flow last year. SBI's Return on Equity (RoE) is below 14, unlike
many outperforming peers in both public and private sector. Free reserves per share is not
impressive at less than 40% of the book value.


The recent correction has shaved off almost Rs. 800 from SBI's share price and made the
scrip safer than before. But it is not the safest bet among PSBs, as SBI still trades at a
significant premium to its peers with a P/E of over 17 and P/BV of 2.70 times. For a while,
that is during the last Bank Nifty rally, it seemed as though SBI would be re-rated to reach
private sector valuations. But this was not to be, and the scrip took its investors through a
painful correction, which seems to have not found its bottom still. But if Bank Nifty improves
in the coming months, expect SBI to join in, but not outperform.


If both Foreign Institutional Investments (FII) inflow and credit growth outperforms, SBI can
perform as good as a bank fixed deposit, that is deliver an annual return of around 10%. Has
the potential to double in the long run - 3 to 5 years or more - if and only if the mergers with
all the three group banks occur. Chances are more for this to get delayed, and SBI delivering
only an FD type return in good markets, and correcting significantly in adverse markets and
slow credit growth conditions.



A Literature review is a body of text that aims to review the critical points of current knowledge on a
particular topic. Most often associated with science-oriented literature, such as a thesis, the literature
review usually precedes a research proposal, methodology and results section. Its ultimate goal is to
bring the reader up to date with current literature on a topic and forms the basis for another goal, such as
the justification for future research in the area.

A good literature review is characterized by: a logical flow of ideas; current and relevant
references with consistent, appropriate referencing style; proper use of terminology; and an
unbiased and comprehensive view of the previous research on the topic.

Markowitz (1959), has generally concluded support the mutual fund is better
considered in a multi attribute framework where return and risk are merely two aspects of
a set of attributes whose importance varies across consumers however one might
hypothesize intuitively that as mutual fund purchase value increases investors would
behave in a more rational manner simply because of the magnitude of the magnitude of
potential gains and losses.

Anjan Chakarabarti and Harsh Rungta (2000) has been concerned the importance of
brand effect in determining the competitive position of the AMCs. Their study reveals that
brand image factor, though cannot be easily captured by computable performance measures,
influences the investors perception and hence his fund/scheme selection.

Akhilesh Mishra(2008) has done a study on the topic Mutual Fund as a Better Investment
Plan and states that many of the people have the fear of Mutual Funds. They think their
money will not be secure in Mutual funds, says Mishra . He also says that the investors need
the knowledge of Mutual Funds and its related terms. Many of the people have not invested
in Mutual funds due to lack of Awareness although they have money to invest. Mishra also

points out that Brand plays an important role for the investment. Only people who invest
directly know well about the Mutual fund and its operations

From the above review it can be inferred that Mutual Fund as an investment vehicle is
capturing the attention of various segments of the society, like academicians, industrialists,
financial intermediaries, investors.

Gayathri, S., Karthika, S. & Kumar, Gajendran L. (2010) reviewed on Mutual Funds in

Indiaare financial instruments. A mutual fund is not an alternative investment

option to stocks and bonds; rather it pools the money of several investors and

invests this in stocks, bonds, moneym a r k e t i n s t r u m e n t s a n d o t h e r t y p e s

o f s e c u r i t i e s . T h e o w n e r o f a m u t u a l f u n d u n i t g e t s a proportional share of
the funds gains, losses, income and expenses. Mutual Fund is vehicle for investment in
stocks and Bonds. Each mutual fund has a specific stated objective.

The fundobjective i s l a i d o u t i n t h e f u n d ' s p r o s p e c t u s , w h i c h i s t h e l e

g a l d o c u m e n t t h a t c o n t a i n s information about the fund, its history, its officers and
its performance. Some popular objectivesof a mutual fund are: Fund Objective - What the
fund will invest in; Equity (Growth) - Only instocks; Debt (Income); Only in fixed-
income securities; Money Market (including Gilt) - Inshort-term money market
instruments (including government securities); Balanced - Partly in stocks and
partly in fixed-income securities, in order to maintain a 'balance' in returns and risk.The share
value of the Mutual Funds in India is known as net asset value per share (NAV). The NAV is
calculated on the total amount of the Mutual Funds in India, by dividing it with
thenumber of shares issued and outstanding shares on daily basis. The company that puts
together amutual fund is called an AMC. An AMC may have several mutual fund schemes

with similar or varied investment objectives. The AMC hires a professional money manager,
who buys and sellssecurities in line with the fund's stated objective. The Securities
and Exchange Board of India(SEB I) mutual fund regulations require that
the funds objectives are clearly spelt out in the prospectus. In addition, every mutual
fund has a board of directors that is supposed to representthe shareholders' interests, rather than
the AMCs.

Agarwal, R K. et al. (2010) has reviewed since long the performance of mutual funds has
beenreceiving a great deal of attention from both practitioners and academics.
With an aggregateinvestment of trillion dollars in India, the investing publics
interest in identifying successfulfund managers is understandable. From an academic
perspective, the goal of identifying superior fund managers is interesting as it
encourages development and application of new models and theories. The idea
behind performance evaluation is to find the returns provided by the individualschemes
especially growth funds and the risk levels at which they are delivered in
comparisonw i t h t h e m a r k e t a n d t h e r i s k f r e e r a t e s . I t i s a l s o o u r a i m t o
i d e n t i f y t h e o u t - p e r f o r m e r s f o r healthy investments. We have also ranked
the investment opportunities for better evaluation of these funds based on
various adjusted ratios like Sharpe ratio, Jensen Measure, Fama ratio,Sortino
ratio, Treynors ratio and few others. Financial literature has very little studies
whichconcentrate on multiple measures of mutual fund performance evaluation. Therefore,
an attempthas been made to capture the critical measures of performance evaluation of
mutual funds.

Agarwal, R K. and Mukhtar, W. (2010) conducted a study; today mutual funds

representthem o s t a p p r o p r i a t e o p p o r t u n i t y f o r m o s t s m a l l i n v e s t o r s . A s f i n a
n c i a l m a r k e t s b e c o m e m o r e sophisticated and complex, investors need a
financial intermediary who provides the required knowledge and professional
expertise on successful investing. It is no wonder then that in the birth place
of mutual funds- the USA - the fund industry has already overtaken the banking

industry, with more money under mutual fund management than deposited with
banks. This p r o j e c t c o v e r s a broad range of equity growth funds.
T h e o b j e c t i v e s o f t h e p a p e r a r e a s ( a ) Twenty four Equity growth funds have
been studied for the application of composite portfolio performance measures like
Treynor ratio, Sharpe ratio, Jenson ratio, Information ratio, M square ,specific ratio etc, and
(b) Evaluate the asset allocation policy for Kotak 30 Growth Mutual fund using Sharpe
optimisation technique.

Rao, D. N. and Rao , S. B. (2009) has conducted research on the general

I n v e s t o r s a n d F u n d M a n a g e r s a r e t h a t ( A ) M a r k e t o u t p e r f o r m s Balanced
and Income Funds during Bull run (B) Balanced and Income Funds outperform
the stock market during Bear run (C) Market outperforms Balanced
and Income Funds over a long holding period (a minimum period of three years). The
objective of the study was to empirically investigate whether the above stated perceptions are
valid in the Indian context. For this purpose, six hypotheses were tested. The performance
of the 47 Balanced and 72 Income Funds were analyzed in terms of Return, Risk,
Return per Risk and Sharpe ratio over the past three years (2006, 2007 and 2008)
during which period the Indian Stock Market had witnessed much volatility. Further, the
performance of these funds was compared with that of the Market and Benchmark
Indices. The Null Hypotheses were rejected leading to the acceptance of Alternate Hypothesis
in all the six cases leading us to conclude that Market outperformed both the Balanced and
Income Funds over Bull run and 3-year periods while both the funds outperformed
the Market over Bear run period which confirms the popular belief of the Investors and
Fund Managers in India.

Agrawal, D and Patidar, D (2009) has conducted study on Mutual funds are key
contributors to the globalization of financial markets and one of the main sources
of capital flows to emerging economies. Despite their importance in emerging markets,
little is known about their investment allocation and strategies. This article provides an
overview of mutual fund activity in emerging m a r k e t s . I t d e s c r i b e s a b o u t t h e i r

s i z e a n d t h e i r a s s e t a l l o c a t i o n . Al l f u n d m a n a g e r s a r e n o t successful in
the formation of the portfolio and so the study also focuses on the empirically
testing on the basis of fund manager performance and analyzing data at the fund-
manager and fund-investor levels. The study reveled that the
p e r f o r m a n c e i s a f f e c t e d b y t h e s a v i n g a n d investment habits of the people
and at the second side the confidence and loyalty of the fund Manager and rewards-
affects the performance of the MF industry in India.

Chakrabarti, R. (2009)

conducted study on Asset Management Industry in India consists of a vibrant and

rapidly growing mutual funds sector, an insurance sector that is dominated by unit-
linked insurance plans, and Venture Capital Funds, both domestic and foreign.
Also Foreign Institutional Investors form a category that pool foreign retail or institutional
funds and invest in Indian debt and equity. Private Equity funds both domestic and foreign
constitute a booming segment as well. In the last decade or so, this industry has witnessed a
wide range of regulatory c h a n g e s that have brought about increased
c o m p e t i t i o n a n d a v e r y i m p r e s s i v e g r o w t h r a t e . Mutual Funds and Insurance
sectors have been opened up to private players only 16 and 8
yearsa g o r e s p e c t i v e l y. Ven t u r e F u n d s h a v e b e e n a l l o w e d e v e n m o r e r e c e n
t l y. T h e I n d i a n e q u i t y market with its remarkable bull run throughout most of
this decade right up to the crisis has boosted major growth in the asset
management industry. Even now, India stands poised at the threshold of major
regulatory changes that can open up new segments like Real Estates and

Pension Funds to retail investors and private and foreign fund managers. The rapid growth of
thesector is likely to continue once the dampening effects of the ongoing crisis are behind us.

Sehgal, S. and Jhanwar, M. (2007)

in this paper, authors examine if there is any short-
term p e r s i s t e n c e i n m u t u a l f u n d s p e r f o r m a n c e i n t h e I n d i a n c o n t e x t . We
f i n d n o e v i d e n c e t h a t confirms persistence using monthly data. Using daily
data, we observe that for fund scheme ssorted on prior period four-factor
abnormal returns, the winners portfolio does provide gross abnormal returns of
10% per annum on post-formation basis. The economic feasibility of zero-investment trading
strategies that involve buying past winners and selling past losers is however in doubt. This
is owing to the fact that these strategies generate low gross returns and that the
winners portfolios involve higher investment costs than losers portfolios, thus
destroying a major portion of extra-normal returns. Our empirical findings are
consistent with the efficient market hypothesis and have implications for hedge funds
and other managed portfolios that relyon innovative investment styles, including
the fund of funds trading strategies that implicitly assume short-term persistence

Kamiyama, T. (2007)

has conducted a research on the assets managed by India's mutual fund shave shown
impressive growth, and had totaled 3.3 trillion rupees (Rs 3.3 trillion) as of the end of March
2007. India's middle class, who are prospective investors in mutual funds,
has been growing, and we expect to see further growth in the mutual fund market moving
forward. In this paper, we first provide an overview of the assets managed within
India's mutual fund market, both now and in the past, and of the legal framework
thec u r r e n t s i t u a t i o n a n d r e c e n t t r e n d s i n f i n a n c i a l p r o d u c t s , d i s t r i b u t i o n
c h a n n e l s a n d a s s e t management companies.

A g r a w a l , D . ( 2 0 0 7 ) has conducted a research,

S i n c e t h e d e v e l o p m e n t o f t h e I n d i a n c a p i t a l Market and deregulations of
the economy in 1992 it has came a long way with lots of ups and downs. There
have been structural changes in both primary and secondary markets since
1992scandal where the no seduce to the bottom and was bravely survived in ICU.
Mutual funds are key contributors to the globalization of financial markets and one of the
main sources of capital flows to emerging economies. Despite their importance in
emerging markets, little is known about their investment allocation and strategies. This
article provides an overview of mutual fund activity in emerging markets. It describes
toa n a l y z e t h e I n d i a n M u t u a l F u n d I n d u s t r y p r i c i n g m e c h a n i s m w i t h e m p
i r i c a l s t u d i e s o n i t s valuation. It also analyzes data at both the fund-manager
and fund-investor levels. The study reveled that the performance is affected saving and
investment habits of the people at the second side the confidence and loyalty of the fund
Manager and rewards affects the performance of the MF industry in india



Research-Research comprises defining and redefining problems , formulating hypothesis

or suggested solutions, collecting, organizing and evaluating data; making deductions and

reaching conclusions; and at last carefully testing the conclusions to determine whether
they fit the formulating hypothesis.

-Clifford woody

Research methodology has many dimensions. It includes not only research methods but also
consists the logic behind the methods used in the context of the study and explains why only a
particular method of technique had been used so that search lend themselves to proper evaluation.
Thus in a way it is a written game plan for concluding research. Therefore in order to solve our
research problem, it is necessary to design a research methodology for the problem as the same may
differ from problem to problem.


Research design is the conceptual structure within which the research is conducted. Its function is to
provide for the collection of relevant evidence with minimum expenditure of effort, time and money.
But how this can be achieved depends on the research purpose,

Research design is of mainly three types-

1. Exploratory research

2. Descriptive research

3. Experimental research

Exploratory Research-

It focuses on the discovery of ideas and is generally based on primary data. It is preliminary
investigation which does not have a rigid design. This is because a researcher engaged in exploratory
study may have to focus as a result of new ideas and relationship among the variables.

Descriptive Research-

This kind of research is concerned with describing the characteristics of a particular individual or of a
group. In this kind of research primary and secondary both type of data is used. As my project is
comparative analysis of performance of mutual fund schemes on the basis of past data about NAVS
and PAST RETURNS. I have collected data from secondary sources. So my research study is based on
Descriptive Research Design.

Experimental research-

This is also called hypothesis-testing research. In it the researcher tests the hypothesis of causal
relationship between variables.


This project has been made to study about mutual funds, so the purpose of study includes following

To know the investment pattern of investor in mutual funds.

To find out the preferences of the investors for Mutual fund.


Research is totally based on primary data. Secondary data can be used only for reference.
Research has been done by the primary data collection and primary data has been collected
interacting with various people. The secondary data has been collected through various
journals and websites.


The study was carried out for a period of 45 days, from 1st june 2016 to 15th july 2016.


The sample was selected of them who are the customers of state bank of india, Fatehgarh
churian road branch, irrespective of them being investor or not or availing the services or not.
It was also collected through personal visit to person by formal and informal talk and through
filling up the questionnaire prepared. The data has been analysed by using mathematical tool.


The sample size of my project is limited to 200 people only . Out of which only 120 people
has invested in mutual funds. Other 80 people did not have invested in mutual fund.


Data has been presented with the help of pie charts etc.


Sample size -- the number of the units of analysis you use in your study is dictated by
the type of research problem you are investigating. Note that, if your sample size is
too small, it will be difficult to find significant relationships from the data, as
statistical tests normally require a larger sample size to ensure a representative
distribution of the population and to be considered representative of groups of people
to whom results will be generalized or transferred.

Lack of available and/or reliable data -- a lack of data or of reliable data will likely
require you to limit the scope of your analysis, the size of your sample, or it can be a
significant obstacle in finding a trend and a meaningful relationship. You need to not
only describe these limitations but to offer reasons why you believe data is missing or

is unreliable. However, dont just throw up your hands in frustration; use this as an
opportunity to describe the need for future research.

Lack of prior research studies on the topic -- citing prior research studies forms the
basis of your literature review and helps lay a foundation for understanding the
research problem you are investigating. Depending on the currency or scope of your
research topic, there may be little, if any, prior research on your topic. In cases when
a librarian has confirmed that there is a lack of prior research, you may be required to
develop an entirely new research typology [for example, using an exploratory rather
than an explanatory research design]. Note that this limitiation can serve as an
important opportunity to describe the need for further research.

Measure used to collect the data -- sometimes it is the case that, after completing
your interpretation of the findings, you discover that the way in which you gathered
data inhibited your ability to conduct a thorough analysis of the results. For example,
you regret not including a specific question in a survey that, in retrospect, could have
helped address a particular issue that emerged later in the study. Acknowledge the
deficiency by stating a need in future research to revise the specific method for
gathering data.

Self-reported data -- whether you are relying on pre-existing self-reported data or

you are conducting a qualitative research study and gathering the data yourself, self-
reported data is limited by the fact that it rarely can be independently verified. In other
words, you have to take what people say, whether in interviews, focus groups, or on
questionnaries, at face value. However, self-reported data contain several potential
sources of bias that should be noted as limitations: (1) selective memory
(remembering or not remembering experiences or events that occurred at some point
in the past); (2) telescoping [recalling events that occurred at one time as if they

occurred at another time]; (3) attribution [the act of attributing positive events and
outcomes to one's own agency but attributing negative events and outcomes to
external forces]; and, (4) exaggeration [the act of representing outcomes or
embelishing events as more significant than is actually suggested from other data].

Access -- if your study depends on having access to people, organizations, or

documents and, for whatever reason, access is denied or otherwise limited, the
reasons for this need to be described.

Longitudinal effects -- unlike your professor, who can literally devote years [even a
lifetime] to studying a single research problem, the time available to investigate a
research problem and to measure change or stability within a sample is constrained by
the due date of your assignment. Be sure to choose a topic that does not require an
excessive amount of time to complete the literature review, apply the methodology,
and gather and interpret the results. If you're unsure, talk to your professor.

Cultural and other type of bias -- we all have biases, whether we are conscience of
them or not. Bias is when a person, place, or thing is viewed or shown in a
consistently inaccurate way. It is usually negative, though one can have a positive bias
as well. When proof-reading your paper, be especially critical in reviewing how you
have stated a problem, selected the data to be studied, what may have been omitted,
the manner in which you have ordered events, people, or places and how you have
chosen to represent a person, place, or thing, to name a phenomenon, or to use
possible words with a positive or negative connotation. Note that if you detect bias in
prior research, it must be acknowledged and you should explain what measures were
taken to avoid perpetuating bias.

Fluency in a language -- if your research focuses on measuring the perceived value
of after-school tutoring among Mexican-American ESL [English as a Second
Language] students, for example, and you are not fluent in Spanish, you are limited in
being able to read and interpret Spanish language research studies on the topic. This
deficiency should be acknowledged.



Target Population: All customers of SBI MUTUAL FUNDS.

Survey Frame: I chose SBI Banks to conduct my survey.

Sample Size: 200 customers..

Type of data used: Primary data.

Tools Used: Questionnaire

Gender: Males and Females

Age:25 years to 70 years.


The income level of investors is an important factor for investment, when an investor has
sufficient income he will like to invest in many plans, as a measure to earn from the


Income per month No of investors Percentage

<5000 6 6%

5000-10000 32 32%

10000-20000 33 33%

>20000 29 29%

Chart Title

<5000; 6%
>20000; 29%
5000-10000; 32%

10000-20000; 33%


33% of investors have a income between Rs 10001 20000 per month, 32% of investors
have a income between Rs. 5001- 10000 per month, 29% have a income of above 20000 per
month. There are 6% of investors who have an income less than Rs.5000 per month.


The Qualification of investors is an important aspect related to Investments in Mutual Funds.


No. of investors Percentage

Pre-schooling 32 32%

Under graduate 45 45%

Post graduate 12 12%

Professional degree 11 11%

Total 100 100%

Chart Title

Professional degree; 11%

Pre-schooling; 32%
Post graduate; 12%

Under graduate; 45%


Nearly 45% of the investors are under graduates whereas 12% of the investors are post
graduates, 11% are professional degree holders and 32% have completed their schooling


Age percentages
20-25 years 6%
25-30 years 10%
30-35 years 23%
35-40 years 49%
Above 40 years 12%
Total 100%

Chart Title

35-40; 12% category; 6%

20-25; 10%

25-30; 23%

30-35; 49%


Out of total sample of, 6 are in the category of 20-25, 10 falls in the category of 25-30, 23
people are in the age group of 30-35 years, 49falls in the category of 35-40 and rest 12 are
above 40 years of age.

Occupations Percentages
Business 47%
Services 53%
total 100%

Chart Title

Business; 47%
Services; 53%


In the sample, the occupation of people shows that 47% are from Business class and 53%
people are salaried people.

What kind of investment do you make?

This question is asked to find out the investment patterns of people in financial products.

Investment Avenues No. of Respondents Percentage (%)

(Out of 100)

Bank 11 11%

Govt. Securities/Debts 9 9%

Insurance 22 22%

Mutual Fund 41 41%

Equity 10 10%

Real Estate 7 7%

Total 100 100%


11% of the respondents save their money in saving accounts, 9% invest in Govt.
Securities/Debts like FDs, Post Savings etc., 22% of the respondents but insurance for their
safety, 41% invest in Mfs, 10% in Equities and only 7% people invest in Real Estate.


Investors will like to invest certain sum of money for future benefits. Such amount may be a
small sum or a large sum according to the interest of the investors.


Amount Invested No of investors Percentage

<100000 69 69%

>100000 31 31%

Total 100 100%

No of investors

>100000; 31%

<100000; 69%


69% investors have invested less than Rs.100000 in Mutual funds whereas 31% have
invested more than Rs.100000 in Mutual funds.

From last how many years are you doing investment?

less than 2 years
3-5 years
5-10 years
More than 10 years

Chart Title

less than 2 years; 13%

More than 10 years; 23%

3-5 years; 29%

5-10 years; 35%


The table depicts that 13% people are investing from less than 2 years and 29% people are
investing from last 3-5 years, and majority of the people i.e. 35% of the people are investing
since last 5-10 years and remaining 23% of people are investing from last more than 10 years.


This question is to find out whether people think for short term or for long term.

Short term Upto 1 year 20%

Middle term 1 to 5 years 18%
Long term Above 5 years 62%
Total 100%

Chart Title


62% 18%


The above figure shows that 62% of the respondents think for long term i.e. above 5 years,
18% respondents invest for middle term i.e. 1-5 years and only 20% respondents save their
money for short term i.e. up to 1 year.


Mutual funds are preferred for various reasons. The benefits derived from mutual fund
investment acts as a reason for preferring mutual funds. In case of mutual fund its distinctive
features also act as a reason for investors to invest in it.


Preference of Mutual
Funds No. of investors Percentage

Savings 28 28%

Returns 41 41%

Diversification 8 8%

Risk tolerance 23 23%

Total 100 100%

Chart Title

Risk tolerance; 23% Savings; 28%

Diversification; 8%

Returns; 41%


Returns has been the main reason for preferring mutual funds as 41% of the respondents
have opted for it, while saving is the reason for 28% of investors, risk tolerance for 23% and
diversification for 8% of the respondents


Systematic Investment Plan (SIP) is a smart way to invest in mutual funds. It is truly
small on savings and big on returns. It doesnt demand lump sum investment. Hence SIPs
are preferred by many investors now-a-days.


Preference of SIP No. of investors

Yes 39%

No 61%

Total 100%

No. of investors

Yes; 39%

No; 61%


From the above table it is inferred that 39% of investors prefer SIPs whereas 61% do not
prefer them Reasons for preference :All the investors have pointed out that Small investment
amount is the main reason for the preference towards SIPs.

In SBI Mutual Funds, in which plan have you adopted?

Sbi mutual fund plans Percentages

SIP 54%
Lump sum 46%
total 100%

Chart Title

sbi plans ; 46%

lump sum; 54%


Looking at the above diagram, we can find out that majority of the people go for SIP
(Systematic Investment Plan) and these people do not want to take risk and mostly are
middle-class people. Rest 46% of the remaining people opt the lump sum payment plan as
they want more returns on their investment.


No of investors Percentage
Awareness about
Mutual Fund

Friends / Agents 54 54%

Relatives 2 2%

TV 21 21%

Newspaper 23 23%

Others 0 0%

Total 100 100%

No of investors

TV; 23%

Awareness about Mutual Fund; 54%

Relatives; 21%
Friends / Agents; 2%


The investors have mainly gained knowledge about investments through friends showing the
response percentage as 54%, while Media and Newspapers have influenced to an extent of
21% and 23%.

Why have you choose SIP for doing investment?

Investment of SIP Percentages
Long term purpose 13%
To reduce the risk 31%
Monthly savings 56%
total 100%

Chart Title

Monthly savings; 56%

Long term purpose; 13%
To reduce the risk; 31%


In the above diagram, we find that majority of the people (56%) go for the option of monthly
saving, 31% people of them wants to reduce the risk of fluctuating market and rest 13%
wants to do SIP for long term purpose.

Are you doing investment in any other company mutual funds?

1. Reliance

2. Tata

3. Kotak Mahindra

4. SBI


6. Fidelity

Invested in other companies or not Percentages

YES 28%
NO 72%
Total 100%

Chart Title

YES; 28%

NO; 72%


This question was asked to know how many investor are investing in SBI Mutual Fund or
other. 28% investor said yes and 72% investor said no

.Is SBI products better than any other companys products?

SBI Products better than others? percentages
YES 89%
NO 11%
Total 100%

Chart Title

NO; 11%

YES; 89%


This question was to know whether SBI Mutual product is better than any than organization
product. 11% customer said No and 89% said Yes that SBI Mutual fund product is better than
any organization product.




1. What is your age?

(a) 20-25

(b) 25-30

(c) 30-35

(d) 35-40

(e) Above 40

2. What is your annual income?

(a) Less than Rs.5000

(b) Between Rs.5000- Rs.10000

(c) Between Rs10000- Rs.20000

(d) Above Rs.20000

3. Occupation?

(a) business

(b) service

4. What is the Qualification of investors? :

(a) Under Graduate

(b) Graduate

(c) Post Graduate (d) Professional Degree

5. Do you have an insurance policy?

(a) Yes

(b) No

6. Amount Invested in Mutual Funds

(a) Below Rs.100, 000

(b) Above Rs.100, 000

7. Why do you prefer a Mutual Fund?


(b) Returns

(c) Diversification

(d) Risk Tolerance

8. How many plans have you invested in?

(a)Only one

(b) Two

(c) Three

(d) More than three

9. How did you come to know about the Mutual Fund you have invested in?


(b) Relatives

(c) Media

(d) Newspapers

(e) Others, please mention

10. What scheme have you taken?

(a)Open ended

(b) Close Ended

(c) Interval

11. From last how many years are you doing investment?

(a) Less than 2 years

(b) 3-5 years

(c) 5-10 years

(d) More than 10 years

12. What kind of investment do you make? (You can tick more than one)

(a) Bank

(b) Government Securities/Debts

(c) Insurance

(d) Mutual funds

(d) Equity

(e) Real Estate

(f) Others (please specify)

13. What is your main investment objective?

(a) Safety

(b) Tax saving

(c) Returns

(d) Capital appreciation

14. For what time period do you do investment?

(a) Short term (Up to 1 year)

(b) Middle term (1-5 years)

(c) Long term (Above 5 years)

15. How much return are you getting?

(a) Bank

(b) Government Securities/Debts

(c) Insurance

(d) Mutual funds

(d) Equity

(e) Real Estate

16. How much risk are you ready to assume in following?

(a) Bank

(b) Government Securities/Debts

(c) Insurance

(d) Mutual funds

(d) Equity

(e) Real Estate

17. Have you ever invested in SBI Mutual Funds?

(a) Yes

(b) No

18. In SBI Mutual Funds, in which plan have you opted?

(a) SIP (Systematic Investment Plan)

(b) Lump sum

19. Why have you opted lump sum for doing investment?

(a) Short period investment

(b) Greater returns

(c) To take the advantage of arbitrage (buying in lower market and selling in higher market)

20. Is SBI products better than any other companys products?

(a) Yes

(b) No

21. Why have you choose SIP for doing investment?

(a) Long term purpose

(b) Monthly saving

(c) To reduce risk of fluctuating market

(d) Any other.


Mutual funds offer a lot of benefits which no other single option could offer.

Mutual Fund Company needs to give the training of the individual advisors about the
various Schemes.

Young people aged fewer than 35 will be a key new customer group into the future, so
making greater efforts with young customer who show some interest in investing.

Systematic Investment Plan (SIP) is one of the innovative products launched by

Assets Management companies very recently in the industry.

There is a very large scope for the companies to tap the salaried class persons.



In any Mutual Fund Industry investors awareness plays an important role. With the increasing
number of Mutual Fund organizations, there is a need for every company to educate investors
and the general public on various aspects concerned with the mutual fund investments which
in turn reveals their attitude towards such investments.

From the study on Investors attitude towards SBI Mutual funds, it is found that the
investors have a positive attitude towards their investment made in SBI Mutual funds.
Majority of the investors prefer Mutual Funds for the returns and feel that it is a safe measure
of investment. The investors select the schemes considering the returns earned from them.
The preferred schemes and funds are the Equity schemes and Open ended funds. Though the
investors are not aware of the risks attached to the investment they have a positive attitude
towards the mutual funds.Mutual fund industry is on growth nowadays. People are becoming
more interested in purchasing mutual funds because they find it less risky and more beneficial
compared to direct investment

I observed that many of people have fear of Mutual Fund. They think their money will not be
secure in Mutual fund. They have no knowledge of Mutual fund. Many people do not have
invested in Mutual fund due to lack of knowledge and awareness although they have money
to invest. As the awareness and income is growing the number of investors are also growing.
Brand plays a important role for the investment. People have invested in those companies
where they have full faith. There are many Asset management companies but only some
companies performing well these are SBIMF, Reliance, ICICI prudential, HDFC etc.

The study has helped the researcher gain real time knowledge and has helped to use
her analytical skills to analyse the attitude of the investors.


Mutual funds offer a lot of benefits which no other single option could offer. But most of the
people are not aware of what actually the Mutual fund is? So the advisors should target for more
and more young investors. Mutual Fund Company needs to give the training of the individual
advisors about the various Schemes and its objective because they are the main source to
influence the investors. Young people aged under 35 will be a key new customer group into the
future, so making greater efforts with young customer who show some interest in investing.

Systematic Investment Plan (SIP) is one of the innovative product launched by Assets
Management companies very recently in the industry. Systematic Investment Plan (SIP) is
easy for monthly salaried person as it provide the facility to investor to invest in small
amount. Most of the potential investors are not aware about the Systematic Investment Plan
(SIP). There is a very large scope for the companies to tap the salaried class persons. The
investors should be given the option of attending investors education programme once in a
month. The information about the products should be revealed exactly to the investors, and
they should be advised on the risks attached to them. Portfolio of the securities should be kept

under check so as to increase the growth of funds, which in turn will increase the satisfaction
of the

investors. Providing proper reports revealing all the information related to the investment have to
be sent to the investors regularly and this can change the general attitude towards mutual funds.
Investors can take their own steps in analyzing the market conditions and can be advised to make
a portfolio and investment analysis on their investment. The investors should be given all the
information regarding their investment and the benefits or the drawbacks of the investments.


1. Books on mutual fund- AMFI publications, Investment Analysis and Portfolio

Management by Prasanna Chandra.

2. Journals- ICFAI Publications- Overview on Mutual Funds.

3. Newspapers- The Economic Times, Business Standard.