INTERNSHIP REPORT

ON
“A STUDY MUTUAL FUNDS AS AN
INVESTMENT OPTION”
A report submitted in partial fulfillment of the requirement of award of degree of
MASTER OF COMMERCE
SBI MUTUAL FUND
Duration- 15.10.2021 to 30.11.2021

Submitted by:
Mohd. Adil
Roll No. 200731780018
M.com (Applied) 3rd Sem.
Session: 2021-22

SHIA PG COLLEGE

UNIVERSITY OF LUCKNOW
1
 DECLARATION

I hereby declare that the following project report titled “A STUDY MUTUAL

FUNDS AS AN INVESTMENT OPTION” is an authentic work done by me.

This is to declare that all the work indulged in the completion of this work such as

research, data collection, analysis is a profound and honest work of mine.

Mohd. Adil
M.com. (Applied) 3rd SEM.
Roll No. 200731780018

2
 ACKNOWLEDGEMENT

I would like to thank employees of SBI Mutual Funds for giving me an opportunity

to intern with them. The training at the company was held over a period of 45 days.

The project report and the learning process would not have been possible without

his inputs and guidance at critical points of the project. He imparted to me the

knowledge of mutual funds and shared with me the practical marketing techniques

of mutual funds. He also made sure that I was exposed to all the distribution

channels, the operational processes and also was exposed to the sale of mutual

funds. Under his guidance I was able to enhance my marketing and inter-personal

skills.

During the course of the 45 days I also came across other people who put in their

time and effort towards acclimatizing me towards the working of their

organization. I express my thanks to every one of them.

These 45 days were very important to me as it helped me in going beyond the class

room and get a practical feel of how things worked.

Mohd. Adil
M.com. (Applied) 3rd SEM.
Roll No. 200731780018

3
 EXECUTIVE SUMMARY

A mutual fund is a scheme in which several people invest their money for a

common financial goal. The collected money invests in the capital market. debt

and the money market. which they earned, is divided based on the number of units

which they hold.

The topic of this project is "Increasing the value of mutual funds in India". The

mutual fund industry in India has seen dramatic improvements in quantity as well

as quality of product and service offerings in recent years. Along with this project

also touches on the aspect of Systematic Investment Plan and Steps of how to

invest in Mutual Fund.

An effort has been made to work on the concepts that have been taught in class

along with other useful parameters so that better study can be done.

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 OBJECTIVE AND SCOPE OF THE STUDY

Objectives of this study

To know the awareness and interest of Mutual Fund among people.

To find out the preferences of the investors for Asset Management Company.

To know about the customers preference's in investments.

To find what should be done to boost SBI Mutual Fund .

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 TABLE OF CONTENT
SR NO. TOPIC
1. CERTIFICATE FROM THE DEPARTMENT OF THE
INSTITUTE
2 CERTIFICATE FROM THE COMPANY
3 DECLARATION
4 ACKNOWLEDGEMENT
5 EXECUTIVE SUMMARY
6 OBJECTIVE AND SCOPE OF THE STUDY
7 INTRODUCTION TO SBI MUTUAL FUND

8 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

9 OBJECTIVES OF THE STUDY
10 HISTORY OF SBI BANK
11 COMPANY PROFILE OF SBI BANK
12 ORGANISATIONS AND STRUCTURE OF SBI
13 SBI MUTUAL FUND SCHEMES
14 RESEARCH METHODOLGY
15 DATA ANALYSIS RESPONDENTS OF INVESTED IN
DIFFERENT INVESTMENTS
16 FINDINGS
17 SUGGESTIONS
18 CONCLUSION
19 RECOMMENDATIONS
20 QUESTIONNAIRE

21
BIBLIOGRAPHY

6
 INTRODUCTION TO SBI MUTUAL FUND

A Mutual Fund is a trust that pools the

savings of a number of in estors who share a

common financial goal. The money thus

collected is invested by the fund manager in

different types of securities depending upon

the objective of the scheme.These could

range from shares to debentures to money market instruments. The

income earned in these investments and the capital appreciation realized

by the scheme 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

liar the common man as it offers an opportunity to invest in a diversified,

professionally managed portfolio at a relatively low cost. Anybody with an

invest able surplus of a kw thousand rupees can invest in Mutual Funds.

Each Mutual Fund scheme has a defined investment objective and

strategy.

A mutual find is the ideal investment vehicle for today's complex and

modern financial scenario. Markets for equity shares, bonds and other fixed

income instruments, real estate. derivatives and other assets have become

mature and information driven. Price changes in these assets are driven by

7
global events occurring in faraway places. A typical individual is unlikely to

have the knowledge.

skills, inclination and time to keep track of events, understand their

implications and act speedily.

A mutual fund is answer to all these situations. It appoints professionally

qualified and experienced staff that manages each of these functions on a

fulltinte basis. The large pool of money collected in the fund allows it to hire

such staff at a very low cost to each investor. In fact. the mutual fund

vehicle exploits economies of scale in all three areas —research.

investment and transaction processing.

A draft offer document is to be prepared at the time of launching the fund.

Typically. it pre specifies the investment objective of the fund. the risk

associated. the cost involved in the process and the broad rules for entry

into and exit front the fund and other areas of operation. In India. as in most

countries. these sponsors need approval from a regulator, SEBI in our

case. SEBI looks at track records of the sponsor and its financial strength

in granting approval to the fund for commencing operations.

A sponsor then hires an asset management company to invest the funds

according to the investment objective. It also hires another entity to he the

custodian of the assets of the fund and perhaps a third one to handle

8
registry work for the unit holders of the fundin the Indian context. the

sponsors promote the Asset Management Company alsoin which it holds a

majority stake. In many cases a sponsor can hold a 100% stake in the

Asset Management Company (AMC). E.g. Birla Global Finance is the

sponsor of the Birla Sun Life Asset Management Company Ltd.. which has

floated different mutual funds schemes and also acts as an asset manager

for the funds collected under the schemes.

As per SEBI regulations. mutual funds can offer guaranteed returns for a

maximum period of one year. In case returns are guaranteed. the name of

the guarantor and how the guarantee would be honored is required to be

disclosed in the 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.

9
THE CONCEPT OF MUTUAL FUND IN DETAIL

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A mutual fund uses the money collected from investors to buy those assets

which are specifically permitted by its stated investment objective. Thus, an

equity fund would buy equity assets – ordinary shares, preference shares,

warrants etc.

A bond fund would buy debt instruments such as debentures. bonds or

government securities. It is these assets which are owned by the investors

in the same proportion as their contribution bears to the total contributions

of all investors put together.

Any change in the value of the investments made into capital market

instruments (such as shares. debentures etc) is reflected in the Net Asset

Value (NAV) of the scheme. NAV is defined as the market value of the

Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is

calculated by dividing the market value of scheme's assets by the total

number of units issued to the investors.

A Mutual Fund is an investment tool that allows small investors access to a

well-diversified portfolio of equities. bonds and other securities. Each

shareholder participates in the gain or loss of the fund. Units are issued

and can be redeemed as needed. The funds Net Asset value (NAV) is

determined each day.

11
When an investor subscribes to a mutual fund. he or she buys a part of the

assets or the pool of funds that are outstanding at that time. It is no

different from buying "shares" of joint stock Company, in which case the

12
purchase makes the investor a part owner of the company and its assets.

However, whether the investor gets fund shares or units is only a matter of

legal distinction.

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 Mutual fund is 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.

13
From the above chart . it can be observed that how the money from the

investors flow and they get returns out of it. With a small amount of fund.

investors pool their money with the funds managers. Taking into

consideration the market strategy the funds managers invest this pool of

money into reliable securities. With ups and downs in market returns are

generated and they are passed on to the investors. The above cycle

should he very clear and also effective.

The fund manager while investing on behalf of investors takes into

consideration various factors like time. risk. return. etc. so that he can

make proper investment decision.

Advantages and disadvantages of mutual funds :

ADVANTAGES OF MUTUAL FUND

· Professional management

· Portfolio Divercification

· Reduction / Diversification of Risk

· Liquidity

· Flexibility & Convenience

· Reduction in Transaction cost

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· Safety of regulated environment

· Choice of schemes

· Transparency

DISADVANTAGE OF MUTUAL FUND

· No control over Cost in the Hands of an Investor

· No tailor-made Portfolios

· Managing a Portfolio Funds

· Difficulty in selecting a Suitable Fund Scheme

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 HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

The mutual fund industry in India started in 1963 with the formation of Unit

Trust of India. at the initiative of the Government of India and Reserve

Bank. 'though the growth was slow. but it accelerated from the year 1987

when non-UT1 players entered the Industry.

In the past decade, Indian mutual fund industry had seen a dramatic

improvement, both qualities wise as well as quantity wise. Before. the

monopoly of the market had seen an ending phase: the Assets Under

Management (AUNT) was Rs67 billion. The private sector entry to the fund

titmilp raised the Aum to Rs. 470 billion in March 1993 and till April 2004: it

reached the height if Rs. 1540 billion.

The Mutual Fund Industry is obviously growing at a tremendous space with

the mutual fund industry can be broadly put into four phases according to

the development of the sector. Each phase is briefly described as under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament

by the Reserve Bank of India and functioned under the Regulatory and

administrative control of the Reserve Bank of India. In 1978 UTI was de-

linked from the RBI and the Industrial Development Bank of India (IDBI)

took over the regulatory and administrative control in place of RBI. The first

16
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI

had Rs.6.700 crores of assets under management.

Second Phase – 1987-1993 (Entry of Public Sector hinds)

1987 marked the entry of non- UTI. public sector mutual funds set up by

public sector banks and Life Insurance Corporation of India (LIC) and

General Insurance Corporation of India (GIC). SBI Mutual Fund was the

first non- UTI Mutual Fund established in June 1987 followed by Canbank

Mutual Fund (Dec 87). Punjab National Bank Mutual Fund (Aug 89). Indian

Bank Mutual Fund (Nov 89). Bank of India (Jun 90). Bank of Baroda Mutual

Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had

set up its mutual fund in December 1990.At the end of 1993. the mutual

fund industry had assets under management of Rs.47.004 crores.

Third Phase – 1993-21)1)3 (Ellin of Pri' ate Sector Funds)

1993 was the year in which the first Mutual Fund Regulations came into

being. under which all mutual funds. except UTI were to be registered and

governed. The erstwhile Kothari Pioneer (now merged with Franklin

Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more

comprehensive and revised Mutual Fund Regulations in 1996. The industry

now functions under the SEBI (Mutual Fund) Regulations 1996. As at the

17
end of January 2003, there were 33 mutual funds with total assets of Rs.

1.21.805 crores.

Fourth Phase–since February. 2003

In February 2003. following the repeal of the Unit Trust of India Act 1963

UTI was bifurcated into two separate entities. One is the Specified

Undertaking of the Unit Trust of India with assets under management of

Rs.29.835 crores as at the end of January 2003.

Representing broadly. the assets of US 64 scheme. assured return and

certain other schemes The second is the UTI Mutual hind Ltd. sponsored
by SBI. PNB, BOB and LIC. It is registered with SEBI and functions under
the Mutual Fund Regulations. consolidation and growth. As at the end of
September. 2004. there were 29 funds. which manage assets of
Rs.153108 crores under 421 schemes.

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 CATEGORIES OF MUTUAL FUND:

Mutual funds can be classified as follow:

Based on their structure:

· Open-ended funds: Investors can buy and sell the units from the fund, at

any point of

time.

Close-ended funds: These funds raise money from investors only once. Therefore. after

the offer period, fresh investments can not be made into the fund. II the fund is listed on

a stocks exchange the units can be traded like stocks (E.g.. Morgan Stanley Growth

Fund). Recently. most of the New Fund Offers of close-ended funds provided

19
liquidity window on a periodic basis such as monthly or weekly.

Redemption of units

can be made during specified intervals. Therefore. such funds have

relatively low liquidity.

•••• Based on their investment objective:

A) Equity funds: These funds invest in equities and equity related

instruments.

With fluctuating share prices, such funds show volatile perlOrmance, even

losses.

However, short term fluctuations in the market. generally smoothens out in

the long term. thereby offering higher returns at relatively lower volatility ,. At

the same time. such funds can yield great capital appreciation as,

historically, equities have outperformed all asset classes in the long term.

Hence, investment in equity funds

should be considered for a period of at least 3-5 years. It can be further

classified as:

i) Index funds- In this case a key stock market index. like BSE

Sensex or Nifty is tracked. Their portfolio mirrors the benchmark

index both in terms of composition and individual stock weightages.

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 ii) Equity diversified funds- 100% of the capital is invested in

equities spreading across different sectors and stocks.

Hill Dividend yield funds- it is similar to the equity diversified funds except

that they invest in companies offering high dividend yields.

iv) Thematic funds- Invest 100% of the assets in sectors which are related

through some theme.

e.g. -An infrastructure fund invests in power. construction, cements sectors

etc.

v) Sector funds- Invest 100% of the capital in a specific sector.

e.g. - A banking sector fund will invest in banking stocks.

vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the

investors. B) Balanced fund: Their investment portfolio includes both

debt and equity. As a

result. on the risk-return ladder. they fall between equity and debt funds.

Balanced funds are the ideal mutual funds vehicle for investors who prefer

spreading their risk across various instruments. Following are balanced

funds classes:

i) Debt-oriented funds -Investment below 65% in equities.

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 i) Equity-oriented funds -Invest at least 65% in equities. remaining

in debt. C) Debt fund: They invest only in debt instruments, and are a good

option for

investors averse to idea of taking risk associated with equities. Therefore.

they invest exclusively in fixed-income instruments like bonds. debentures.

Government of India securities: and money market instruments such as

certificates of deposit (CD),

commercial paper (CP) and call money. Put your money into any of these

debt funds depending on your investment horizon and needs.

i) Liquid funds-'These funds invest IOU% in money market

instruments, a large portion being invested in call money market.

i) Gilt funds ST- They invest 100% of their portfolio in government

securities of and 'T-bills.

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ill) Floating rate funds - Invest in short-term debt papers. Floaters invest in

debt instruments which have variable coupon rate.

iv) Arbitrage fund-'they generate income through arbitrage

opportunities due to mis-pricing between cash market and

derivatives market. Funds are allocated to equities. derivatives and

money markets. Higher proportion (around 75%) is put in money

markets, in the absence of arbitrage opportunities.

iv) Gilt funds LT- They invest 1009 of their portfolio in long-term

government securities.

v) Income funds LT- Typically. such funds invest a major portion of

the portfolio in long-term debt papers.

iv) MIPs- Monthly Income Plans have an exposure of 70%-90% to

debt and an exposure of 10%-30% to equities.

v) FMPs- fixed monthly plans invest in debt papers whose maturity

is in line with that of the fund.

INVESTMENT STRATEGIES

1. Systematic Investment Plan: under this a fixed sum is invested each

month on a

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fixed date of a month. Payment is made through post dated cheques or

direct debit facilities. The investor gets fewer units when the NAV is high

and more units when

the NAV is low. This is called as the benefit of Rupee Cost Averaging

(RCA)

2. Systematic Transfer Plan: under this an investor invest in debt

oriented fund and give instructions to transfer a fixed sum, at a fixed

interval, to an equity scheme of the same mutual fund.

3. Systematic Withdrawal Plan: if someone wishes to withdraw from a

mutual fund then he can withdraw a fixed amount each month.

WHY INVESTOR NEEDS MUTUAL FUND :-

Mutual funds offer benefits, which are too significant to miss out. Any

investment has to be judged on the yardstick of return. liquidity and safety.

Convenience and tax efficiency are the other benchmarks relevant in

mutual fund investment. In the wonderful game of financial safety and

returns are the tows opposite goals and investors cannot be nearer to both

at the same time. The crux of mutual fund investing is averaging the risk.

24
Many investors possibly don't know that considering returns alone_ many

mutual funds have outperformed a host of other investment products.

Mutual funds have historically delivered yields averaging between 9% to

25% over a medium to long time frame. The duration is important because

like wise, mutual funds return taste bitter with the passage of time.

Investors should he prepared to lock in their investments preferably for 3

years in an income fund and 5 years in an equity funds. Liquid funds of

course. generate returns even in a short term.

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MUTUAL FUND RISK:-

Mutual funds face risks based on the investments they hold. For example.

a bond fund faces interest rate risk and income risk. Bond values are

inversely related to interest rates. If interest rates go up, bond values will go

down and vice versa. Bond income is also affected by the changes in

interest rates. Bond yields are directly related to interest rates falling as

interest rates fall and rising as interest rates.

Similarly. a sector stock fund is at risk that its price will decline due to

developments in its industry. A stock fund that invests across many

industries is more sheltered from this risk defined as industry risk.

Follow ings are glossary of sonic risks to consider when investing in inutual

funds:-

· COUNTRY RISK :-

The possibility that political events (a war. national election), financial

problems (rising inflation, government default), or natural disasters will

weaken a country's economy and cause investments in that country to

decline.

· INCOME RISK :-

26
The possibility that political events (a war, national election), financial

problems (rising inflation, government default), or natural disasters will

weaken a country's economy and cause investments in that country to

decline.

· MARKET RISK :-

The possibility that stock fund or bond fund prices overall will decline over

short or even extended periods. Stock and bond markets tend to move in

cycles, with periods when prices rise and other periods when prices fall.

27
RISK RETURN REWARD IN MUTUAL FUND

This graph shows risk and return impact on various mutual funds. There is

a direct relationship between risks and return. i.e. schemes with higher risk

also have potential to provide higher returns.

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 OBJECTIVES OF THE STUDY

a. To find out the Preference of the investors for Asset Management of

company.

b. To know the preference of the portfolios.

c. To know why one has invested in SB I Mutual Funds.

d. To find out the most preference channel.

e. To find out what should do to boost Mutual F and Industry.

Scope of The Studs

A big boom has been witnessed in Mutual Fund Industry in resent times. A

large number of new players have entered the market and trying to gain

market share in this rapidly improving market.

The study will help to know the preferences of the customers, which

company, portfolio, node of investment. option for getting return and so on

they prefer. This project report may help the company to make further

planning and strategy.

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 HISTORY OF SBI BANK:-

The evolution of State Bank of India can be traced back to the first decade

of the 19th century. It began with the establishment of the Bank of Calcutta

in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of

Bengal, three years later, on 2 January 1809. It was the first ever joint-

stock bank of the British India, established under the sponsorship of the

Government of Bengal. Subsequently, the Bank of Bombay (established on

15 April 1840) and the Bank of Madras (established on 1 July 1843)

followed the Bank of Bengal.

An important turning point in the history of State Bank of India is the launch

of the first Five Year Plan of independent India, in 1951. The Plan aimed at

serving the Indian economy in general and the rural sector of the country,

in particular. Until the Plan, the commercial banks of the country, including

the Imperial Bank of India, confined their services to the urban sector.

Moreover, they were not equipped to respond to the growing needs of the

economic revival taking shape in the rural areas of the country. Therefore,

in order to serve the economy as a whole and rural sector in particular.

The All India Rural Credit Survey Committee proposed the take over of the

Imperial Bank of India, and integrating with it, the former state-owned or

30
state-associate banks. Subsequently, an Act was passed in the Parliament

of India in May 1955. As a result, the State Bank of India (SBI) was

established on 1 July 1955. This resulted in making the State Bank of India

more powerful, because as much as a quarter of the resources of the

Indian banking system were controlled directly by the State. Later on, the

State Bank of India (Subsidiary Banks) Act was passed in 1959.

The State Bank of India emerged as a pacesetter, with its operations

carried out by the 480 offices comprising branches, sub offices and three

Local Head Offices, inherited from the Imperial Bank. Instead of serving as

mere repositories of the community's savings and lending to creditworthy

parties, the State Bank of India catered to the needs of the customers, by

banking purposefully.

State Bank of India (SBI) (LSE: SBID) is the largest bank in India.

The bank traces its ancestry back through the Imperial Bank of India to the

founding in 1806 of the Bank of Calcutta, making it the oldest commercial

bank in the Indian Subcontinent. The Government of India nationalised the

Imperial Bank of India in 1955, with the Reserve Bank of India taking a 60%

stake, and renamed it the State Bank of India. In 2008, the Government

took over the stake held by the Reserve Bank of India.

31
SBI provides a range of banking products through its vast network in India

and overseas, including products aimed at NRIs. With an asset base of

$126 billion and its reach, it is a regional banking behemoth. SBI has laid

emphasis on reducing the huge manpower through Golden handshake

schemes, which led to a flight of its best and brightest managers which took

to retirement allowances and then went on the become senior managers at

new private sector banks, and computerizing its operations.

The roots of the State Bank of India rest in the first decade of 19th century,

when the Bank of Calcutta, later renamed the Bank of Bengal, was

established on 2 June 1806. The Bank of Bengal and two other Presidency

banks, namely, the Bank of Bombay (incorporated on 15 April 1840) and

the Bank of Madras (incorporated on 1 July 1843).. These three banks

received the exclusive right to issue paper currency in 1861 with the Paper

Currency Act, a right they retained until the formation of the Reserve Bank

of India. The Presidency banks amalgamated on 27 January 1921, and the

reorganized banking entity took as its name Imperial Bank of India. The

Imperial Bank of India continued to remain a joint stock company.

Pursuant to the provisions of the State Bank of India Act (1955), the

Reserve Bank of India, which is India's central bank, acquired a controlling

interest in the Imperial Bank of India. On 30 April 1955 the Imperial Bank of
32
India became the State Bank of India.In 1959 the Government passed the

State Bank of India (Subsidiary Banks) Act, enabling the State Bank of

India to take over eight former State-associated banks as its subsidiaries.

On Sept 13, 2008, State Bank of Saurashtra, one of its Associate Banks,

merged with State Bank of India.

Associate banks:-

There are six associate banks that fall under SBI, and together these six

banks constitute the State Bank Group. All use the same logo of a blue

keyhole and all the associates use the "State Bank of" name followed by

the regional headquarters' name. Originally, the then seven banks that

became the associate banks belonged to princely states until the

government nationalized them in 1959. In tune with the first Five Year Plan,

emphasizing the development of rural India, the government integrated

these banks into State Bank of India to expand its rural outreach. There

has been a proposal to merge all the associate banks into SBI to create a

"mega bank" and streamline operations. The first step along these lines

occurred in September 2008 when State Bank of Saurashtra merged with

State Bank of India, which reduced the number of state banks from seven

to six.

33
 State Bank of Indore

 State Bank of Bikaner & Jaipur

 State Bank of Hyderabad

 State Bank of Mysore

 State Bank of Patiala

 State Bank of Travancore

Growth:-

State Bank of India has often acted as guarantor to the Indian Government,

most notably during Chandra Shekhar's tenure as Prime Minister of India.

With more than 11,111 branches and a further 6500+ associate bank

branches, the SBI has extensive coverage. State Bank of India has

electronically networked all of its branches under Core Banking

System(CBS). The bank has one of the largest ATM networks in the region.

More than 8500 ATMs across India. The State Bank of India has had

steady growth over its history, though it was marred by the Harshad Mehta

scam in 1992. In recent years, the bank has sought to expand its overseas

operations by buying foreign banks. It is the only Indian bank to feature in

34
the top 100 world banks in the Fortune Global 500 rating and various other

rankings. Group companies:-

 SBI Capital Markets Ltd

 SBI Mutual Fund (A Trust)

 SBI Factors and Commercial Services Ltd

 SBI DFHI Ltd

 SBI Cards and Payment Services Pvt Ltd

 SBI Life Insurance Co. Ltd - Bancassurance (Life Insurance)

 SBI Funds Management Pvt Ltd

 SBI Canada

Establishment:-

The establishment of the Bank of Bengal marked the advent of limited

liability, joint-stock banking in India. So was the associated innovation in

banking, viz. the decision to allow the Bank of Bengal to issue notes, which

would be accepted for payment of public revenues within a restricted

geographical area. This right of note issue was very valuable not only for

the Bank of Bengal but also its two siblings, the Banks of Bombay and

35
Madras. It meant an accretion to the capital of the banks, a capital on which

the proprietors did not have to pay any interest.

The concept of deposit banking was also an innovation because the

practice of accepting money for safekeeping (and in some cases, even

investment on behalf of the clients) by the indigenous bankers had not

spread as a general habit in most parts of India. But, for a long time, and

especially upto the time that the three presidency banks had a right of note

issue, bank notes and government balances made up the bulk of the

investible resources of the banks.

The three banks were governed by royal charters, which were revised from

time to time. Each charter provided for a share capital, four-fifth of which

were privately subscribed and the rest owned by the provincial government.

The members of the board of directors, which managed the affairs of each

bank, were mostly proprietary directors representing the large European

managing agency houses in India. The rest were government nominees,

invariably civil servants, one of whom was elected as the president of the

board.

Business:-

The business of the banks was initially confined to discounting of bills of

36
exchange or other negotiable private securities, keeping cash accounts and

receiving deposits and issuing and circulating cash notes. Loans were

restricted to Rs.one lakh and the period of accommodation confined to

three months only. The security for such loans was public securities,

commonly called Company's Paper, bullion, treasure, plate, jewels, or

goods 'not of a perishable nature' and no interest could be charged beyond

a rate of twelve per cent. Loans against goods like opium, indigo, salt

woollens, cotton, cotton piece goods, mule twist and silk goods were also

granted but such finance by way of cash credits gained momentum only

from the third decade of the nineteenth century. All commodities, including

tea, sugar and jute, which began to be financed later, were either pledged

or hypothecated to the bank.

Major change in the conditions:-

A major change in the conditions of operation of the Banks of Bengal,

Bombay and Madras occurred after 1860. With the passing of the Paper

Currency Act of 1861, the right of note issue of the presidency banks was

abolished and the Government of India assumed from 1 March 1862 the

sole power of issuing paper currency within British India. The task of

37
management and circulation of the new currency notes was conferred on

the presidency banks and the Government undertook to transfer the

Treasury balances to the banks at places where the banks would open

branches. None of the three banks had till then any branches (except the

sole attempt and that too a short-lived one by the Bank of Bengal at

Mirzapore in 1839) although the charters had given them such authority.

But as soon as the three presidency bands were assured of the free use of

government

Presidency Banks Act:-

The presidency Banks Act, which came into operation on 1 May 1876,

brought the three presidency banks under a common statute with similar

restrictions on business. The proprietary connection of the Government

was, however, terminated, though the banks continued to hold charge of

the public debt offices in the three presidency towns, and the custody of a

part of the government balances. The Act also stipulated the creation of

Reserve Treasuries at Calcutta, Bombay and Madras into which sums

above the specified minimum balances promised to the presidency banks

at only their head offices were to be lodged. The Government could lend to

38
the presidency banks from such Reserve Treasuries but the latter could

look upon them more as a favour than as a right.

Bank of Madras:-

The decision of the Government to keep the surplus balances in Reserve

Treasuries outside the normal control of the presidency banks and the

connected decision not to guarantee minimum government balances at

new places where branches were to be opened effectively checked the

growth of new branches after 1876. The pace of expansion witnessed in

the previous decade fell sharply although, in the case of the Bank of

Madras, it continued on a modest scale as the profits of that bank were

mainly derived from trade dispersed among a number of port towns and

inland centers of the presidency.

India witnessed rapid commercialization in the last quarter of the nineteenth

century as its railway network expanded to cover all the major regions of

the country. New irrigation networks in Madras, Punjab and Sind

accelerated the process of conversion of subsistence crops into cash

crops, a portion of which found its way into the foreign markets. Tea and

coffee plantations transformed large areas of the eastern Terais, the hills of

Assam and the Nilgiris into regions of estate agriculture par excellence. All

these resulted in the expansion of India's international trade more than six-

39
fold.

The three presidency banks were both beneficiaries and promoters of this

commercialization process as they became involved in the financing of

practically every trading, manufacturing and mining activity in the sub-

continent.

While the Banks of Bengal and Bombay were engaged in the financing of

large modern manufacturing industries, the Bank of Madras went into the

financing of large modern manufacturing

industries, the Bank of Madras went into the financing of small-scale

industries in a way which had no parallel elsewhere. But the three banks

were rigorously excluded from any business involving foreign exchange.

Not only was such business considered risky for these banks, which held

government deposits, it was also feared that these banks enjoying

government patronage would offer unfair competition to the exchange

banks which had by then arrived in India. This exclusion continued till the

creation of the Reserve Bank of India in 1935.

Presidency Banks of Bengal:-

The presidency Banks of Bengal, Bombay and Madras with their 70

branches were merged in 1921 to form the Imperial Bank of India. The triad

had been transformed into a monolith and a giant among Indian

40
commercial banks had emerged. The new bank took on the triple role of a

commercial bank, a banker's bank and a banker to the government.

But this creation was preceded by years of deliberations on the need for a

'State Bank of India'. What eventually emerged was a 'half-way house'

combining the functions of a commercial bank and a quasi-central bank.

The establishment of the Reserve Bank of India as the central bank of the

country in 1935 ended the quasi-central banking role of the Imperial Bank.

The latter ceased to be bankers to the Government of India and instead

Became agent of the Reserve Bank for the transaction of government

business at centers at which the central bank was not established.

But it continued to maintain currency chests and small coin depots and

operate the remittance facilities scheme for other banks and the public on

terms stipulated by the Reserve Bank. It also acted as a bankers' bank by

holding their surplus cash and granting them advances against authorized

securities.

The management of the bank clearing houses also continued with it at

many places where the Reserve Bank did not have offices. The bank was

also the biggest tendered at the Treasury bill auctions conducted by the

Reserve Bank on behalf of the Government.

The establishment of the Reserve Bank simultaneously saw important

41
amendments being made to the constitution of the Imperial Bank

converting it into a purely commercial bank.

http://www.sbi.co.in/viewsection.jsp?lang=0&id=0,11,86 - #Imperial Bank:-

The Imperial Bank during the three and a half decades of its existence

recorded an impressive growth in terms of offices, reserves, deposits,

investments and advances, the increases in some cases amounting to

more than six-fold.

The financial status and security inherited from its forerunners no doubt

provided a firm and durable platform. But the lofty traditions of banking

which the Imperial Bank consistently maintained and the high standard of

integrity it observed in its operations inspired confidence in its depositors

that no other bank in India could perhaps then equal. All these enabled the

Imperial Bank to acquire a pre-eminent position in the Indian banking

industry and also secure a vital place in the country's economic life.

42
 Stamp of Imperial Bank of India

Subsidiaries: -

The State Bank Group includes a network of eight banking subsidiaries and

several non-banking subsidiaries. Through the establishments, it offers

various services including merchant banking services, fund management,

factoring services, primary dealership in government securities, credit

cards.

The eight banking subsidiaries are:

1. State Bank of Bikaner and Jaipur (SBBJ)

2. State Bank of Hyderabad (SBH)

3. State Bank of India (SBI)

4. State Bank of Indore (SBIR)

43
 5. State Bank of Mysore (SBM)

6. State Bank of Patiala (SBP)

7. State Bank of Saurashtra (SBS)

8. State Bank of Travancore (SBT)

Products

Personal Banking:-

 SBI Term Deposits SBI Loan For Pensioners

 SBI Recurring Deposits Loan Against Mortgage Of Property

 SBI Housing Loan Loan Against Shares & Debentures

 SBI Car Loan Rent Plus Scheme

 SBI Educational Loan Medi-Plus Scheme

Other Services:-

 Agriculture/Rural Banking

 NRI Services

 ATM Services

 Demat Services
44
 Corporate Banking

 Internet Banking

 Mobile Banking

 International Banking

 Safe Deposit Locker

 RBIEFT

 E-Pay

 E-Rail

 SBI Vishwa Yatra Foreign Travel Card

 Broking Services

 Gift Cheques

NETWORK OF SBI BANK:-

SBI Bank India has 52 Foreign Offices in 34 countries. SBI India serves

the international needs of its foreign customers, in addition to conducting

retail operations. The focus of the offices of SBI is India-related business.

Few of the countries where SBI Bank has branches are as under:

 Australia

45
 Bahamas

 Bahrain

 Bangladesh

 Belgium

 Bhutan

 Canada

 France

 Germany

 Hong Kong

 Japan

 Maldives

 Mauritious

 Muscat

 Nepal

 Nigeria

46
 Oman

 Russia

 Singapore

 Sri Lanka

 South Africa

 UK

 USA

47
48
 COMPANY PROFILE OF SBI BANK

ORIGIN AND GROWTH OF STATE BANK OF INDIA (S.B.I.)

The origin of State Bank of India goes back to the first decade of the

nineteenth century with the establishment of Bank of Calcutta in Calcutta

on second June 1806 Three years late the bank received its charter and

was redesigned as the Bank of Bengal (2 nd January 1809). A unique

institution, it was the first joint stock bank of British India sponsored by the

Government of Bengal The Bank of Bombay (15 'h April 1840) and the

Bank of Madras (1St July 1843; followed the Bank of Bengal_ These three

banks remained at the apex of modern banking in India till 1921

The Presidency Banks of Bengal, Bombay and Madras with their 70

branches were merged in 27 th January 1921 to form the imperial Bank of

India. The new bank took on the triple role of a Commercial bank, a

banker's bank and a banker to the Government. But this creation was

preceded by years of deliberations on the need for 'State Bank of India.'

Imperial Bank was a halfway house combining the functions of a

49
commercial bank and a quasi central bank.

The establishment of the Reserve Bank of India as the Central Bank of the

country in 1935 ended the quasi-central banking role of the imperial Bank.

The latter ceased to be banker to the Government of India and instead

became agent of the Reserve Bank for the transaction of government

business at centres at which the central bank was not established. But it

continued to maintain currency chests and small coin depots and operate

the remittance facilities scheme for other banks and the public on terms

stipulated by the Reserve Bank. It also acted as a banker's bank by

holding their surplus cash and granting them advances against authorized

securities The management of the bank clearing houses also continued

with it at many places where the Reserve Bank did not have offices. The

bank was also the biggest tenderer at the Treasury bill auction conducted

by the Reserve Bank on behalf of the Government.

Reserve Bank made certain amendments to the constitution of Imperial

Bank converting it into a purely commercial bank. The bank was permitted

to undertake foreign exchange business. and executor and trustee

business for the first time The Imperial Bank during the three and a half

decades of its existence recorded an impressive growth in terms of

offices, reserves, deposits, investment and advances. The high standard

50
of integrity in its operations inspired confidence in its depositors and

enabled the Imperial Bank to acquire a pre-eminent position in the Indian

banking industry and also to secure a vital place in the country's economic

life.

When India attained freedom, the Imperial Bank had a capital base

(including reserves) of Rs. 11.85 crores, deposits and advances of Rs.

275.14 crores and 72.94 crones respectively and a net work of 172

branches and more than 200 sub offices extending all over the country.

In 1951, when the First Five Year Plan was launched, the development of

rural India was given the highest priority. The commercial banks of the

country including Imperial Bank of India had till then confined their

operations to the urban sector and were not equipped to respond to the

emergent needs of economic regeneration of the rural areas. Therefore to

serve the economy in general and the rural sector in particular, the All

India Rural Credit Survey Committee recommended the creation of a state

partnered and state sponsored bank by taking over the Imperial Bank of

India, integrating with it, the former state owned or state associate banks.

Accordinglt an Act was passed in Parliament in May 1955 and the State

Bank of India was constituted on 1st July 1955. Later, the State Bank of

India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank
51
of Ino}a to lake over seven former State associated banks as its

subsidiaries (later named Associates) S.B.I. holds not less than 55 per cent

of the issued capital of each subsidiary bark. Subsidiaries are'.

State Bark of Bikaner & Jaipur

State Bank of Hyderabad

State Bark of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra and

State Bank of Travancore

T h e State Bank of India was thus born with a new sense of social purpose

aided by 480 offices comprising branches, sub-offices and three Local

Head

Offices inherited from the imperial Bank. The concept of banking as mere
depositories of the community's savings and lenders to creditworthy
parties was soon to give way to the concept of purposeful banking by
serving the growing and diversified financial needs of planned economic
development.

52
 ORGANISATIONS AND STRUCTURE OF SBI

The State Bank of India has an authorized capital of Rs.1000 crores, which

has been divided into 100 crores shares of Rs. 10 each. The issued capital

of State Bank of India is Rs.526.30 crores The shares are held by the

Reserve Bank, Insurance Companies and the general public. At the end of

March 2000, the paid up capital and reserves of the Bank were Rs. 12,147

crores.

The management of the SBI is under the control of a Central Board

of Directors consisting of twenty members It consists of a Chairman

and a Vice- Chairman who are to be appointed by the Central

Government in consultation with Reserve Bank. Two Managing

Directors are to be appointed by the Central Board with approval of

the Central Government Six directors are to be elected by the

private shareholders eight directo r s are to be nominated by the

Central Government in consultation with the Reserve Bank to

represent territorial and economic interests One director is to ne

nominated by the Central Government and one is to be nominated

by the Reserve Bank.

State Bank of India is the lar g est Commercial bank in India in terms

53
of profits, assets, deposits. branches aria employees, On March

31st 2001, the Bank had total assets of Rs 3,15,644 crore, total

deposits of Rs. 2,42,828 crore, total advances of Rs 1.13,590 crore

total net profit of Rs. 1,604 crore through a network of 9,026

branches. The Bank commanded about one-fifth of deposits and

loans of all scheduled commercial banks in the country.

h of 2,14,845 on 31st March 2001. Of this,

52,459 (24.4%) were officers, 1,06, 731 (49.7%) belonged to the

Award staff category, and the remaining 55.655 (25 9%) were sub-

staff.

STRUCTURE OF SBI

Several organizational charges have been brought about in the areas of

structure, system and strategies enah!ing the Bank to effectively meet the

challenges posed by the forces of competition, deregulation and

globalization. The Bank's top management consists of the Chairman, group

executives for the National Banking Group, International Banking Group,

Corporate Associates and subsidiaries and for the staff functionaries in

charge of finance, credit, human resources and technology management,

54
and inspection and audit.

Three Strategic Business Units i SBUsi under the Corporate Banking

Group have been set up for focused attentior to very large corporate

customers, lease finance and project finance, all re porting directly to the

corporate office. Distinguishing feature of the SBUs are integration of

operational planning with operations within each SBU, a focused delivery

system with appropriate specialist inputs and focused attention on

profitab * =y

Functionaries at various levels have been delegated higher financial

powers to ensure foster decision making in credit areas and disposal of a

large number of credit proposals at operating unit's level. A Committee

approach has been adopted, both at the Apex and Circle levels, for

sanction of large advances. For this purpose, Central Office Credit iTmmittee

and Circle Credit Committees have been streamlined Simplified and

concise credit appraisal formats have been designed to ensure

improvement in the quality of credit decisions, better quality of assets

and reduction of Non-Performing Assets.

CAPITAL AND SHARE HOLDING PATTERN

The RBI required that S.B.I. and other Indian banks having foreign

55
offices maintain a total adequacy ratio of eight per cent by March 31 sr

1994 and nine per cent by May 31st, 2000 Subsequently SBI was the first

public sector bank to shore up its capital base and its capital adequacy

ratio has consistently remained above the minimum eight per cent. In

Fiscal Year 1994, the Bank raised Rs. 22,104 million through the issue of

shares and Rs. 10,000 million through the issue of unsecured

redeemable subordinated floating rate bonds. In October 1996, the Bank

successfully floated the GDR issue as the 'Asian Equity issue of the year'

for its being a well planned, well priced and well executed issue that

continued to perform well for the investors.

During the year 1999-2000, the Bank augmented its Tier II capital by

private placement of unsecured, non-convertible, redeemable,

subordinated bonds in the nature of promissory notes aggregating to

Rs. 9,358.70 million.

Reserve Bank of India is the single largest shareholder of the Bank.

SBl's shares and bonds are listed for trading on all the major Indian

Stock exchanges namely, Bombay Stock Exchange and Stock

Exchanges at New Delhi, Kolkotta, Chennai and Ahemedabad: at the

National Stock exchanges only the Bank's shares are listed S .B I

56
has one of the largest market capitalization of a ,l companies traded

on such exchanges. The total number of shareholders as on 31st

March 2001 was 7 37 lakh.

Reserve Bank of India owns 59 73 per cent shares of SBI. 18.31 per cent

owned by non-residents 11 58 per cent by Financial institutions, 1.30 per

cent by mutual funds / banks and Government companies, 6.24 per cent

by Domestic Companies/Trust and 2 84 percent by Resident Individuals.

57
Table Market Price Data ('Closin2 Values) (From April 2000-March 01

Months SBis share Price

BSE Sen sex
(BSE)
Her Low High Low
t_ 4511.0
296.00 5541.54
May '00 203 70 180.50 4693.88 53920.1
4325.4
June '00 236 40 199 55 4863.90 8
4188.3
July '00 232.95 194.00 4964.28 7
4186.1
August '00 203.55 196.75 4477.31 4
4032.3
September '00 213.60 176.15 4763.63 6
October '00 173.70 155.95 4160.41 4393.6
7
3788.5
November '00 186.35 165.65 4028.71 1
- 3826.8
199.10 182.25 4284.98 3
3955.0
January '01 233.40 195.60 4372.04 2
4069.6
February '01 255.65 220.80 4437.99 8
March '01 3540.6
267.45 200.25 4271.65 8
5
Source : SBI Aririual Report 2001

Market price at closing values of SBI share price at high level of 267.45 on

March 2001 and low Level of 155-95 on October 2000 recorded Market

price data at BSE sensex. high value recorded at 5,541.54 on April 2000

and low value at 3,5040.65 on March 2001.

58
The Bank provides financial sere f;es through its Non-Banking

Subsidiaries, including merchant banking services -and management,

leasing and factoring services and primary dealing in gave , ''ment

securities. SBICAPS, the Bank's merchant banking subsidiary continuea

is dominance in the capital market. The Bank's fund management

subsidiary Is .1dia's second largest asset management company, next to

the UTl

DOMESTIC BRANCH NETWORK

State Bank of India s Commercial banking business is through its

nationwide network of 9,019 branches The Bank's domestic branches

represent approximately 14 per cent of all bank branches in India. About

46 per cent of the Bank's branches are located in urban and metropolitan

areas respectively. This wide spread branch network enables the Bank to

raise a substantial and stable deposit base, to provide a wide range of

lending products and other financial services and to diversify lending risks

geographically as well as by type of credit risk and customer The Bank's

ability to diversify and enhance the quality of service related to its deposit:

taking as well as its lending activities and other financial services is a

fundamental strength of the Bank.

59
i) The National Banking Group (NBG)

The NBG commands about 99 per cent of the domestic deposits and 84

per cent of the domestic advances of the Bank It provides banking

services to customers spread over the country through two networks,

namely, Development and personal Banking Network and Commercial

Network.

The Development and Personal Banking Network is sometimes referred to

as the bank's 'retail banking' business subgroup. The network represents

the backbone of the Bank and encompasses the vast majority of the

Bank's assets, loans, deposits branches and employees. The D&PB

network focuses on the Bank's small industrial. agricultural and

,
nstitutional customers, Central and State Government entities and

personal bank ng customers. it also services the needs of individuals

including high net worth Individuals, as well as engages in home finance.

The branches in the D&PB neiYvork generally provide lending facilities of

less than Rs. 2.5 million. as well as other services such as cash

management and personal banking advisory services.

The Commercial Network focuses on large and medium-sized industrial

corporations and services the large accu.jnts among Bank's small

industries, high technology agricultural concerns and those of its

60
corporate customers. This network provides lending facilities of Rs. 2.5

million and above.

The NBG give high priority to personal banking. The Bank's sixty Personal

Banking Branches targets high net worth individuals for the personal

segment products. Gold Banking, Housing finances and Consumer

finance are other thrust areas of the Bank.

ii) The Corporate Banking Group

The Bank's Corporate Banking Group consists of three Strategic Business

Units (SBUs) created to services the Banks top 150 to 200 corporate

customers. SBUs are the Corporate Accounts Group, Leasing Group and

Project Finance Group.

The Corporate Account Group is an exclusive unit for top corporate and is

decision-making The CAG branches are fully computerized with most

customers able to access their accounts at the Bank via computer. The

total number of corporates served by the CAG rose to 185 as on 31st

March 2000.

The Leasing SBU caters to The leasing requirements of the Bank's

corporate customers served by the Corporate Banking Group and the

National Banking Group The Group offers all types of financial leases,
61
particularly tax-based structures. each of which is tailored to suit the

requirements of the customer.

The Project Finance SBU was set up in response to banking deregulation

and ensuing growth in infrastructure projects in India. The major clients of

SBU are power, petrochemicals, telecommunications, cement steel,

metals, automobiles, engineering and similar industries.

iii) Domestic Business

SBI is the largest deposit-taking bank in India, holding approximately one-

fifth of all domestic deposits. About three-fourth of the Bank's deposits are

from its retail customers, reflecting its large customer base. Around 14 per

cent of its domestic deposits are in the form of interest free current

accounts and about 25

per cent are in the form of low interest savings account. This access to

millions of small deposits throughout the country provides SB1 with a stable

funding base for all its operations.

The Bank makes to a wide range of public sector and private sector

commercial and industrial customers and agricultural customers. It extends

working capital facilities and short-term loans. Loans of medium to long

62
maturity are extended to finance capital investment including home loans to

individuals.

The Bank's retail banking activities are wide spread cover among others,

housing finance, consumer finance, loans to agriculture, small scale

industries, small business finance. retail traders, professional and other

self-employed persons. By the end of March 2000 the Bank's priority

sector lending accounted for 40.42 per cent of its net bank credit

The Bank proposes tc enter into; insurance business through subsidiary

where in it will offer 26 per cent equity to the foreign partner. The Bank

has appointed a consultant of international repute to identify the foreign

partner. The Bank expects the overseas partner to make important

contribution in the areas of technology and product development.

The Bank has entered into a Memorandum of Understanding wit HDFC

Bank, the Dun and Bradstreet and the Trans Union for setting up a world-

class credit information Bureau in India. The main objective of the Bureau

will be to institute an effective mechanisrn for mitigating credit risks and

enhance the quality of credit decisions in the banking industry.

63
iv) SBI's Deposit & Loan Schemes

a) Deposit Schemes

i) Current Accounts current accounts are designed for business

transactions.

No restrictions on number of transactions.Nominal service charges levied

annually. Standing instructions accepted

ii) Savings Bank Accounts designed for depositor of savings I

surpluses. Cheque book facility available to the customers. Interest

allowed at 4.5 per cent p.a.

Term Deposits designed for fixed periods. Accepted term deposits for any

period ranging from 15 days to 10 years. Interest payable at desired

periodicity (monthly / quarterly etc for deposits of 1 year and above. Earns

higher interest at rates ranging from 5 per cent to 10.75 per cent.

Automatic renewal facility available to the customers

iv) Special Term Deposits: Reinvestment of interest allowed.

Conversion to term deposits and vice versa permitted_

v) Recurring Deposits designed for regular savings. Monthly deposits

of a fixed amount for a fixed paid.

64
vi) Mufti Option Deposit Scheme available at computerised branches.

A fixed deposit with flexible features, Automatic overdrafts linked

Premature withdrawal of part l full amount allowed withdrawal by cheque.

Higher rates of interest allowed.

b) Advance Schemes

i) Special Scheme of finance for professionals and self employed for

acquisition 1 renovation / extension of business premises, acquisition of

vehicles i setting up of clinics etc. Both term loan and working capital

facilities available.

ii) Housing Loan Schemes for construction I outright purchase of

house/flat. Security-m(Agage of property / third party guarantee required.

Lower margins of loan ranging 20%-15%. Long repayment schedules up

to 20 years allowed.

iii) Consumer Finance Scheme for purchase of consumer durables

ranging maximum of 2 lakhs allowed Repayment offered by bank as

check-off facility wherever possible. Lower margins of loan ranging

between 20% - 15% Long repayment time allowed up to 5 years.

65
iv) Car Loan Scheme for purchase of new cars I jeeps f second

hand cars not more than 3 years old maximum loan oc to 8 lakhs.

Third party guarantee not required if check-off facility is available

Long repayment time up to 7 years allowed by bank.

v) Education Loan Scheme for stuaies in India and abroad at

recognized schools (colleges/institutions to meet tuition fees and

other fees, cost of books equipment / maintenance cost and cost of

passage in case of studies abroad. Loans amount granted ranging

from Rs. 4,0001- to Rs. 10,00,000/-. Easy repayment terms for loans

allowed.

vi) Gold Loan Scheme against pledge of gold ornaments. Low

margins and low rates of interest offered.

vii} Demand Loan Scheme against bank's own fixed deposits 1

NSCS I KVPS 1 IVPS and other acceptable securities. Low rate of

interest - 2% above the rate payable on banks own fixed deposits.

Easy repayment schemes.

viii)Personal Loan Scheme to meet personal expenses for travel,

marriage, family functions, hospitalization etc. This facility is eligible

66
for employees of State

1 Central Government organizations, PSUs, MNCs and reputed

Public Ltd., companies. No security required and easy repayment

terms.

Other Schemes such as loan against mortgage of property,

pensioner's loans, loan against approved securities etc.

The deposits and loans increase from year to year. The Net Profit varied.

Last year, the net profit decreased because of the implementation of

voluntary retirement scheme in the Bank. The Table 3.4 shows a

satisfactory growth in the business.

INTERNATIONAL BANKING

The Bank is also engaged in international banking principally for its Indian

customers, The International !Banking Group services the needs of the

Bank's domestic corporate and other customers in financing import and

export transactions. An increasing number of Bank's corporate customers

accessinternational funds through SBI's international branch network as

well as its 720 correspondent Banks. The bank's products include foreign

exchange, letter of credit, guarantees, remittances, acceptances and

67
collections. Its loan syndication activity covers arranging, participating and

underwriting foreign currency loans. It also provides short-term finances

through buyer and supplier's credit. The Bank has foreign offices n 31

countries with a network of 52 branches/offices The bank's foreign offices

include branches at London, New York, Frankfurt, Paris, Hong Kong and

'Tokyo With the introduction of Euro in January 1999, the Bank's offices in

Antweep Frankfurt and Paris acquired capability to open accounts and

handle transactions in pure.

INTERNATIONAL CONSULTANCY

The Bank is registered as a consultant with several multilateral funding

institutions including the World Bank, the Common Wealth Fund for

Technical Co-Operation U.K., The Food and Agriculture Organization, the

European Bank for Reconstruction and Development, the Asian

Development Bank and the African Development Bank.

GLOBAL LINK SERVICES

The Bank's new irk office, Global Link Service was set up in 1997 to

provide international correspondent banking services to the Bank's

branches as well as to other banks it aims to provide an efficient system for

68
realizing the proceeds of clean and documentary' collections drawn on

overseas centers. The GLS offers correspondent banking products on

matching terms with similar products of foreign banks.

SBI AS A NEW GENERATION BANK

"To retain the Banks position as the premier Indian Financial Services

Group, with the world class standards and significant global business,

committed to excellence in customer shareholder nd employee satisfaction

and to play a leading role in In- S,xl,aci-line and divesting financial

services sector, while continuing emphasis on its development banking

role." This is the Mission of State Bank of India The SBI's visions are

i) Premier Indian Financial Services Group with global perspective,

world-class standards of efficiency and professionalism and core

institutional values.

ii) Retain position in the country as pioneer in development banking.

iii) Maximise shareholder value through high-sustained earnings per

share.

iv) Institution with a culture of mutual care and commitment, a satisfying

69
 and exciting work environment and continuous learning opportunities.

TECHNOLOGY ORIENTATION

The Bank's effort to improve efficiency and customer service through use of

technology s reflected in the rapid pace of its branch computerization. As at

the end of March 2001 the Bank had 2555 fully computerized branches,

covering 71 per cent of the Bank s business. The Bank has 139 ATMs, in

52 cities. The Society for Worldwide Interbank Financial Telecommunication

(SWIFT) network of the Bank handling 85 per cent of the Bank's forex

remittances, cover 146 branches and the SBI Data net (a PC-Modem telex

network) covers 1,120 branches. With a view to helping the customers to

have access to the information regarding their accounts round-the-clock

through Internet, the Bank has introduced `Online SBI' from the 1st

August_ This is initially being introduced in eight branches, three in

Mumbai, two in New Delhi, and one each in Bangalore, Calcutta and

Chennai Two innovative path-breaking projects, namely, Electronic Nostro

Account Reconciliation (ELENOR) and State Bank Electronic Payments

System (STEPS) became operational in December 2000 and January

2001 respectively. Both the projects were conceived, developed and

implemented with in-house expertise and success was widely acclaimed.

70
ELENOR dealing with on-line nostro account reconciliation enabled online

reporting of forex transactions from 444 forex intensive branches. STEPS

was launched to facilitate instantaneous electronic transfer of funds at 326

branches. During the year, the project Electronic Reconciliation (e-

RECON) was extended to 1300 fully computerized branches for electronic

transmission of inter-branch data for reconciliation through the Internet.

 The significant improvements made by Bank in the field of technologies

are:-

 Electronic Data interchange projects for handling customer transactions

at airport and seaports made operational at eleven centers.

 Introduction of Computerized Printin g of Drafts.

 Opening of MICR and ECS Centres for Electronic Clearing Services.

 Introduction of extended Business Hours (7 to 12 Hours) and 7 Days

Banking.

 Remote login facilities .For Corporate Customers implemented in over 70

branches covering about 400 customers,

71
 Tele Banking introduced on a Pilot basis at 38 branches in Mumbai

Circle of the Bank.

 Internet Banking started on a pilct c-Iss on August at eleven branches.

The 46 VSATs of the Bank unde I idian Financial Network (INFINET) set

up by RBI were merged with 11` nSA -s of the Bank under its Corporate

Banking Group Network. The Bank now has a network covering 161

VSATs in 130 cities extending the coverage to almost the entire

country.

· During the year. the Bank established 'SBI HELPLINE' at LHO

centres, equipped with Toll-Free Telephone Lines, Fax and E-Mail for

providing quick and complete information on Bank's products and services,

and to enable the customers to have their grievances redressed through

Electronic Media in addition to normal channel of complaints received by

mail.

· The SBI Home Page was thoroughly redesigned and revamped

during the year. The site facilities attracted a large number of visitors

to the site.

NPA MANAGEMENT

72
The SBl's NPA management policy lays stress on early identification of

problem loans, effective response to early warning signals adherence to

the time norms for corrective action and recovery including one-time

settlements. Under the RBI guidelines, the Bank approved one-time

settlement for Rs. 718 crore in respect of 1.95 lakh accounts with NPAs

upto Rs. 5 crore and made cash recovery of Rs. 384 crores At the end of

March 2001, the Bank's gross and net NPA stood at 12.93 per cent and

6.03 per cent, respectively as against 14.25 per cent and 6.41 per cent

respectively in the previous year The Bank actively participated in the

rehabilitation of the units having potential for turnaround as also appro', ,ed

by the BIFR. The BIFR has identified 512 units (including 59 Public Sector

Undertakings) financed by the Bank as sick Out of these, the BIFR

approved rehabilitation packages for 96 units, involving an amount of

Rs.763 crore Table 3,5 explains the Net NPA Ratio of SBI for last three

years.

SBI MUTUAL FUND --AN OVERVIEW

The State Bank of India is the first public sector bank to start rnttual fund.

business after the Government of India issued permission to do mutual

fund business. Till 1987. Unit Trust of India was the only Mutual Fund

operating in the country. In 1987. SBI decided to provide an alternative

73
for investors and SBI Mutual Fund was born SBI Capita; Markets Ltd., a

wholly owned subsidiary of State Bank of India was appointed as

Trustees and Managers to the fund. SBI Mutual Fund was the first bank

sponsored Mutual Fund, the pioneer in an untapped field with vast

potential.

The SBI Mutual Fund launched its first scheme- 'Magnum Regular

Income Scheme 87' in 1987 and mobilized Rs 131 crore from 90,000

investors while in 2000, the Fund with an investor base of over 2.8

million spread over 23 schemes mobilized Rs.2079 crores Till 1992, SB1

Capital Markets Ltd. operated as Trustees and Managers to the Fund.

The mantle of management has now passed on to SBI Fund

Management Ltd., another wholly owned subsidiary of the State Bank

of India, which was incorporated on 7th February 1992. This company

took over the management of the Fund witn effect from 14th May 1993.

State Bank of India now operates as Principal Trustee to the fund The

Board of Trustees headed by Dr. A.M. Khusro, Editor of Financial

Express and former Member of the Planning Commission, includes

distinguished personalities like Prof. S.K. Barua, Smt. (Dr) Malati

Anagol, Shri M.M. Chitale and Shri Vepa Kamesam.

74
The Board of Directors of SBI Fund Management Ltd. includes reputed

personalities like Shri. Janaki Ballabh as Chairman, Shri. Niamatulla as

Managing Director, Shri. S I . Rao. Shri. R.G Kare, Shri. (Dr) Ajay Shah,

Shri. Manu Chadha, Shri. D.P Roy and Shri. Biredra Kumar as Directors.

75
 SBI MUTUAL FUND SCHEMES

Regular Income Schemes

Magnum Regular Income Schema 87 (MRIS 1987) was the first scheme

launched by the fund ano rt comm E ec,tA from 1st January 1988. This

was followed by three others. Magnum regular Income Scheme 1989,

which commenced from 1st April 1989. Magnum Regular income Scheme

1990 which commenced from 1st August 1990 and MRIS 1993 launched

on 15th February 1993. The investment objective of the Regular Income

Scheme is to achieve a combination of income and growth and to provide

a regular income to the investor. The target return specified is a minimum

of 12 per cent along with some capital appreciation. To achieve the

investment objective, the scheme follows a policy of investing

predominantly in fixed income securities

Monthly Income Schemes.

There are four schemes which fall under this head, namely, Magnum

Monthly Income Scheme 89 (MMIS 89), which commenced from 1st

September, 1989, MMIS 91, which commenced from 1st July 1991, MMIS

98(i) which commenced from 3rd February 1996 and MMIS 98(ii) which

commenced from 31st October 1998. The investment objective of the

76
scheme as the name suggests is to provide a monthly retu rn on

Investment to the investor, MMIS 89 offered a target return of a minimum

of 12 per cent per annum monthly pay out. Scheme, which was to be

redeemed on 31st March 1993, has been extended up to 31st December

1996 at a higher monthly pay out of 15 per cent per annum for those

investors who have exercised the option of extension. MMIS 91 targets at

a return of 13 per cent per annum with monthly pay out. MMIS 98(i)

assured a monthly income of 12.5 per cent per arnum. MMIS 980i)

offered monthly income combining the safety of high quality debt

instrument and return on equity. The investment policy followed by the

scheme is to invest mainly in fixed income securities.

80 CC Schemes

Magnum Tax Saving Scheme 88-89 MISS 88-89 which commenced from

1st April 1989, and MTSS 90 are the schemes failing into this category.

MTSS 88-89 were redeemed on 31si: Marcn 994 at Rs. 2221- with a

capital appreciation of 122 per cent and MTSS 90, redeemed on 31st

March 95 at Rs. 1721- with a capital appreciation of 72 per cent. The

investment objective of these schemes was to enable subscribers to

benefit under Sec 80 CC of the Income Tax Act 1961. The policy followed

77
was to invest in eligible issues of the capital under Section 80 CC and

other securities as were permitted. Investors were therefore saved the

trouble of seeking issues eligible under section 80CC of the Income Tax

act 1961.

80 CC B Schemes

The 80 CC B Schemes are Magnum Equity Linked Saving Scheme 91

(MELS 91), which commenced from st April 1991 and Magnum Growing

Investment from Tax Saving Scheme Plan A, 1992 (Magnum GIFTS-92

Plan A), which commenced from 1st April 1992, offer benefits to investors

under Sec. 80 CC B of Income Tax Act. Magnum GIFTS Plan B, 1992

launched in 1992 also offer benefits to investors under Sec 80 CCB of

Income Tax Act. MELS-95 launched in 1st April 1995 and MELS-96

launched in 1996 offer benefits under Sec. 88 of IT Act The investment

objective is to enable subscribers to benefit under Sec. 8000 B and 88 of

Income tax Act 1961 and aims at achieving substantial realized income

arid capital appreciation. To achieve the investment objective, investments

are mainly made ,o equities and equity related instruments and also in

money market or other liqurd instruments.

Growth Schemes

78
Magnum Multiplier Scheme, 1990 (MMS-90) which commenced fromist

January 1991, Magnum Express MEX-91 which commenced from 1st

April 1991, Magnum Multiplier 'Plus Scheme 1993 (MMPS-93) which

commenced operations on 1st March1993 as close-ended growth

scheme, Magnum Global Fund Scheme, 1994 (MGF-94) which was

launched onist October 1994 are the growth schemes of the fund. These

four schemes aim at providing long-term capital appreciation to the

investor The policy followed is to invest primarily in equities related

instruments.

Cumulative Income Schemes

Magnum Triple is the only cumulative income scheme of the Fund. It

commenced from 20th November 1991 The Investment objective of the
scheme is that the investor receives a sum equal to thrice the amount
initially invested or more at the end of 90 months from the date of
allotment. To achieve the objective, the funds are mainly invested in
equities and equity related instruments as well as in money market
instruments The other schemes existing are-

79
Magnum Equity Fund

Magnum Equity Fund was converted into open-end scheme with effect

from 1st January 1998 The aim of this fund is to provide capital

appreciation through the investment in equities.

Magnum Liqui Bond Fund

Magnum Liqui Bond s a hundred per cent debt fund that provides investors

superior risks adjusted returns l" he fund offers high degree of safety is 80

per cent of the investments are made in Government Securities and Triple-

A rated papers. Maximum market liquidity is the objective of the fund. This

fund was launched in December 1998

Magnum Tax Gain Scheme

MTGS-93 is a tax saving scheme: which was launched to offer tax benefits

to investors under Sec. 88 of the Income Tax Act. This was converted into

open-ended scheme from November 1999.

Magnum Balanced Fund

MBALF-95 was launched on 31st August 1995. The main objective of the

80
scheme is to provide growth through appreciation of capital. It may also

provide periodic income through declaration of dividends.

Magnum Sector Fund Umbrella

MSFU-99 is an umbrella fund, which covers under its fold four sub-funds,

devoted to Information Technology, Pharma. Fast Moving Consumer

Goods, and Contra fund. Investors will have the option of choosing one or

more sector for investing and will be able to freely switch across sectors,

without any load

A sector comprises of companies that manufacture or offer products of a

similar nature. Some sectors have a higher growth potential because of the

nature of business they are in. A sector fund focuses on investing in shares

of such a sector, which has high growth potential. It provides an opportunity

to the common investor to participate in the growth of such sector with an

investible amount within his range The four important funds under MSFU

are- IT FUND is a part of sector fund umbrella launched with the objective

to provide investors with capital appreciation through equity investment in

the IT sector.

i) Pharma fund is the part of the sector fund umbrella, which aims at

long term capital gains by investment in the pharmaceutical sector.

81
ii) FMCG Fund is a part of sector fund umbrella launched with the

objective to provide investors with capital appreciation through

equity investment in the Fast Moving Consumer Goods Sector

iii) Contra Fund is the part of sector fund umbrella, with a view to

providing investors with long-term gains in stocks, which are

currently out of favour but are likely to gain returns in long term.

Magnum Insta Cash Fund

Magnum Insta Cash Fund was Iauncned onl3th May 1999. The main

objective of the scheme is to activate the short-term money investment

providing superior returns consistent with a high degree of liquidity. This

fund offers two options to investors - Cash Plan and Dividend Plan.

Cash Plan is highly liquid income scheme The main objective is to provide

investors with an investment opportunity likely to be superior to returns

offered by comparable investment avenues, through investment in debt and

money market instruments.

Dividend Plan, the average maturity of assets is longer than that of cash

plan appreciation in net asset value, if any is distributed by way of dividend

or reinvested. The objective of the scheme is similar to that of cash plan.

82
Magnum Rising income Scheme 1993 (MRIS-93)

The Scheme commenced operation from December 1993. Its objective is

to provide the investors regular income through dividend. MRIS-89 and

MRIS-90 were also regular income schemes but these schemes redeemed

on 30th June 1993 and 31st July 1995 respectively.

83
 RESEARCH METHODOLGY

This report is based on primary as well as secondary data .One of the most

important use of research methodology is that it helps in identifying the

problem , collecting , analysing the required information data and providing

an alternative solution to the problem. The research was performed to find

out the actuality from the investors about what they think about various

investment options.

Data source:-

Research is totally based on primary data. Secondary data is used only for

the reference. The research has been done by the primary data by

interacting with various people. The secondary data has been collected

through various websites.

Duration of study :-

The study was carried out for a period from 10th June to 20 July 2014.

SAMPLE SIZE : 75 PEOPLE

Research Objective

a) To know the preference of semi urban investors for mutual funds.

b) To know the various fund offered by the mutual funds in India.

c) To identify the level of risk involved in investing in various equity

diversified mutual fund schemes.

84
 d) To know various regulatory firm of mutual funds in India.

e) To know the organizational structure of a mutual funds.

f) to know the best mutual funds investment plan like systematic

investment plan.

g) To know the steps of how to invest in mutual fund by investor.

Limitation of The Study

a) Time constraints: Due to shortage or less availability of time it may be

possible that all the related and concerned aspects may not be

covered in the project.

b) Analysis done is limited to the availability of data.

85
 DATA ANALYSIS

RESPONDENTS OF INVESTED IN DIFFERENT

INVESTMENTS

 53% of the respondents ivest in fixed deposits,

 Wehereas 38% of them have a investment in gold/silver, 34% invest

in Mutual Fund.

 15% of them have invested in real estate and 14% of them have

investment in shares / debentures whereas 5% of them invest in post

office.

86
 PREFERENCE OF RESPONDENTS WHILE INVESTING

 43% of the respondents prefer high return while investing

 Whereas. 34% of them prefer low risk and 18% of them prefer liqidity

while investing.

 17% of them prefer to trust while doing any kind of investment.

87
 AWARENESS ABOUT MUTUAL FUNDS AND THEIR OPERATIONS

  From above it can be inferred-

 out of the sample size of 100

 60% of them are aware about Mutual FUdns Whereas 40% of them

people are not aware about the Mutual Funds and their operations

88
 INVESTORS INVESTMENT IN MUTUAL FUND

 The above number depicts that, among 48 investors only 28 of them

have invested in SBIMF, whereas 12 of them have invested in HDFC,

7 of them in reliance, 2 of them in kotak and 1 have invested in Axis

Bank.

89
PREFERENCE OF THE INVESTORS FOR FUTURE INVESTMENT IN MUTUAL

FUND

 84 of them shown their interest in future investment.

 When asked for the Aset Management Companies 48 of them showed

interest in SBIMF whereas 13 of them with Reliance, 9 with HDFC and

ICICI, 3 with Axis and 1 with Kotak.

 Therefor, some choose the double options.

90
 MODE OF INVESTMENT PREFERRED BY INVESTORS

 The preferabel mode of investment by the investors of panckula is

systematic investment plan.

 As 33 of them chose this while 9 of them preferred to go with one

time investment.

91
 PORTFOLIOS THAT WOULD BE PREFERRED BY THE RESPONDENTS

 The portfolios funds by the respondents for future investment was

equity profolios as 40 of tem chose this option, while 27 went with the

balanced option of having debt and equity while 22 of them went for

debt portfolio

92
PREFERENCE OF INVESTORS WHETHER TO INVEST IN SECTORIALFUND

 Wh

en asked about the investment in sectorial funds 79 of them will not

be investing in it,

 While 13 of them would invest in these funds. Where 8 of them did

not respond to the question.

93
 REASONS FOR NOT INVESTING IN SECTORIAL FUNDS

 The number depicts that 44 of them have no awareness of sectorial

funds when asked the reasons for not investing. While 13 of them

said that there is risk, 8 of them gave reason that it is a long process

while 1 said there is less concern of the banker.

94
 FINDINGS

In Panchkula; the age group of 51-60; were more in numbers. The second

most investors were in the age group of 20- 30years and the least were in

the age group of below 30 years.

In Panchkula, most of the Investors were Post Graduate and under

Graduates were very few in number.

In Occupation groups most of the Investors were government employees

and the second most Investors were private employees..

About 43% invest their money for high returns.

Therefore, according to the latest news, more and more investors today are

investing in MF expecting high returns and low risk coverage and 34% of

them prefer low risk as factor.

Among 60% of the people who are aware of the mutual funds and their

operations, when asked about the source of information; 23% said from

banks, where 21% from advertisements.

About 28% of them have invested in SBI Mutual fund and when asked

about the reasons of investment about 25% gave reason that SBIMF is

associated with SB I.

Mode of investment preferred by the investors of Panchkula is SIP (about

95
33%).

As an investor about 22% of them check their returns of MF on Monthly

basis while the means to check the returns is email at about 40%.

The preference of investors whether to invest in sectorial funds were 79%

said no and when asked for the reason about 44% of them had no

awareness.

Therefore, at this time there is not much increase, therefore it is better to

invest in fixed deposits and post offices.

Most of the time the investment in MF is negative, because high expenses

are debited by the management of these funds.

Thereafter it is better to invest directly into equity funds.

MF is a long time investment and it should be preferably through SIP.

STDR is the best plan to invest money into.

96
 CONCLUSION

The study shows that most of respondents are still confused about the mutual funds

and have not formed any attitude towards the mutual fund for investment purpose.

It has been observed that most of the respondents having lack of awareness about

the various function of mutual funds. Moreover, as far as the demographic factors

are concerned, gender, income and level of education have significantly influence

the investors’ ’ attitude towards mutual funds. On the other hand the other two

demographic factors like age and occupation have not been found influencing the

attitude of investors’ ’ towards mutual funds. As far as the benefits provided by

mutual funds are concerned, return potential and liquidity have been perceived to

be most attractive by the invertors’ followed by flexibility, transparency and

affordability. Apart form the above, in India there is a lot of scope for the growth

of mutual fund companies provided that the funds satisfy everybody’s needs and

sharp improvements in service standards and disclosure.

97
 SUGGESTIONS

Following are suggestions made for the benefits and

augmentation of the sound working of the company –SBI life
insurance:

• Need to train and develop Mutual Fund agents with more

comprehensive knowledge and skills to counter every queries
of the customer.

• It is suggested that company should not left any stone

unturned towards sound advertisement and promotional
measures on every section whether it is printed, media or air
via radio.

• The advisors should be made aware and educated so that they

can extend their services not only in terms of collection of
premium checks from the customer but also to educate them
about the insurance and the latest nontraditional plans.

• All the company should come out of a unit link product that
should aid every selection of the society.

• It is also suggested that skilled management graduates need to

be places on sales and marketing of financial services who can
render their best ideas for the accomplishment of the company
goals and objectives to the best extent.

• Also, care need to be taken that every customer’s grievance

should be met with delight whether before purchase or after
sales.

• There should be an expansion measure for more offices and

location of more centres for offices of the company be
established sop that company may grow its network.

• Mutual Fund Products should be made flexible so as to suit

every section of society.

98
 RECOMMENDATIONS
Mutual Fund offers a lot of benefits: there are many people who just see it

as another option. Therefore' the advisor should target more of the young

investors.

MF Company should give a training to Individual Financial advisors about

the fund/scheme because they are the main source to influence the

investors.

The advisor should focus on the balanced portfolios and should encourage

customers to make the investment.

In case of different non-performing branches, they should:-

Increase CIF( customer information file )

The staff members are required so that a customer should get more

information about MFs.

The advisors should have full knowledge about the investments and the

risks involved

Thereafter, when the branches were visited there was no display about MF

schemes, which should he there.

Even if a branch has more of senior citizen customers they can he

encouraged for more of Debt Funds, instead of Fixed Deposits.

Investors arc totally unaware of sectorial funds: the AMCs should also

99
encourage their customers for sectorial funds have more of Risk but more

of return on the same hand.

The customers should first he encouraged in SIP: and should more targets

on the age group of 35 years around and more of graduates as they can he

manipulated on trying some new investments.

SIP: is not for long period . it is good for initial investors.

The MF Company should give training to the staff and give some time
period in the office hours to do the MF business and approach to the
customers.

100
 QUESTIONNAIRE

Sr. Questions SA A NAND I) SD

1. 5 4 3 2 1
SBI MF has a diversified portfolio of
funds suited to different customers' needs.

2. 5 4 3 2 1
The brand image of the company helps to
easily convince the customers about its
products.

3. 5 4 3 2 1
Funds of SBI MF have given consistent
returns over the years.

4. 5 4 3 2 1
There is continuous interaction through
emai Is, telephone or personal visit.

5 5 4 3 2 1
The company responds quickly to the
complaints and queries.

6. 5 4 3 2 1
I have friendly relations with the
employee at SBI MF.

101
7. 5 4 3 2 1
Customer's queries and other
transactional requests like redemption,
switch etc. are actively resolved.

8. 5 4 3 2 1
SBI MF in Indere is led by an effective
manager.

1
9. SBI MF has skilled fund managers 5 4 3 2
10. 5 4 3 2 1
Policies of SBI MF are more transparent
and fair as compared to other AMCs.

11. 5 4 3 2 1
Systematic investment plan is a batter
investment plan for future.

12. 5 4 3 2 1
Mutual funds investment are risk free
investment.

13. 5 4 3 2 1
Mutual funds scheme are always perform
batter.

102
 BIBLIOGRAPHY

Websites:

 www.sbimf.com

 www.google.co.in

 www.mutualfundsindia.com

 www.moneycontrol.com

 www.assocham.org

 www.amfindia.com

Books:

Mutual Funds in India - by H. Sadhak

103