THESIS IIPM

INDIAN INSTITUTE OF PLANNING & MANAGEMENT

THESIS TOPIC:

“PERFORMANCE EVALUATION OF
SBI MUTUAL FUND”

SUBMITTED TO: EXTERNAL GUIDE:

Prof. SUMANTA SHARMA Mr. A K GUPTA
ASSOCIATE DEAN
IIPM, NEW DELHI
SUBMITTED BY:
ABHISHEK BHAGAT
BATCH: PGP/FW/06-08
ALUMNI ID: DF68-F029
IIPM, NEW DELHI
THESIS IIPM

ABSTRACT

Mutual funds are financial intermediaries, which collect the savings of investors and invest them
in a large and well-diversified portfolio of securities such as money market instruments,
corporate and government bonds and equity shares of joint stock companies. Mutual Funds can
survive and thrive only if they can live up to the hopes and trusts of their individual members.
This project deals with the structure of the Indian and the American Mutual Industry and it’s
constituents. It also classifies the Mutual fund schemes and describes the major players in the
industry.
This research is exploratory in nature. I collected data from various Primary and Secondary
sources. The choice of sample scheme was guided by the fact that a reasonable amount of
information was available and representing true picture of Indian and American Mutual Fund
Industry.
I had focused on 5 mutual funds of SBI and it was the second company after UTI which had
started its operations in Mutual Fund Industry so it means many of the SBI mutual funds had
been gone through with bearish phase during Harshad Mehta and Ketan Parekh’s scam time but
it has always been showing good returns due to its safe and conservative policy of investing the
public money in the profit booking sectors. The primary objective of any SBIMF is to provide a
vehicle for investors to avail of the opportunities offered by the capital market and money
market. SBIMF was also formed with this objective in mind. There aim is to provide such
opportunity even to the smallest investor in urban as well as rural areas and offer an opening to
employ his funds profitably. I worked on SBI MAGNUM EQUITY FUND, SBI MAGNUM
INDEX FUND, SBI MAGNUM IT FUND, SBI MAGNUM FMCG FUND AND SBI
MAGNUM NRI FUND, Wherein SBI Magnum Equity Fund has good returns among its
competitors.
In India, the trend is that investors invest when there is a boom in the stock market and withdraw
their holdings in times of slump. This is absolutely contrary to how the system works abroad as
there investments take place in the slump period when greater units can be purchased with same
amount of money. Withdrawals are correspondingly done in boom times as maximum return is
achieved. This is the right strategy and Mutual Fund companies are trying to create this
awareness among consumers.
THESIS IIPM

CERTIFICATE OF ORGINALITY

This is to certify that the thesis titled “Performance Evaluation of SBI Mutual Fund” is

prepared and submitted by me to Indian Institute of Planning & Management, New Delhi in

partial fulfillment for the award of the Master Degree in Business Administration, and this report

has not been submitted elsewhere.

A K Gupta
Assistant General Manager
State Bank of Bikaner and Jaipur
Khaari Bawali, New Delhi
Date: 08/10 2008
THESIS IIPM

CERTIFICATE FROM EXTERNAL GUIDE

This is to certify that this thesis titled “Performance Evaluation of SBI Mutual Fund” is

prepared and completed successfully by Abhishek Bhagat under my guidance. The thesis has

been completed to my satisfaction and I wish him all the best in his future endeavor.

A K Gupta
Assistant General Manager
State Bank of Bikaner and Jaipur
Khaari Bawali, New Delhi
Date: 08/10 2008
THESIS IIPM

THESIS APPROVAL LETTER

fromThesis <thesis@iipm.edu>
to a12bhagat@gmail.com

dateFri, Apr 11, 2008 at 12:35 PM

subjec Thesis Topic Approval (Fin) FW/ 2006-08
t

Dear Abhishek,

This is to inform that the thesis topic “Performance evaluation of SBI Mutual funds”, as

proposed by you, has been approved .This email is an official confirmation that you would be
doing your thesis work under the guidance of Mr. A.K.Gupta. Make it a comprehensive thesis;
the objective of a thesis should be value addition to the existing knowledge base.

Please ensure that the objectives as stated by you in your synopsis are met using the appropriate
research design.

You must always use the thesis title as approved and registered with us.

Your Alumni ID Number is DF68-F029

You are required to correspond with us by sending at least six response sheets
toThesis.fw68@iipm.edu  (format attached along with this mail) at regular intervals, before
30th  August 2008 (the last date for thesis submission).

 Regards,

Sumanta Sharma

 Dean (Projects)

The Indian Institute of Planning and Management

New Delhi

Sumanta.sharma@iipm.edu

Phone: 0124 - 4505402 / 29

THESIS IIPM

PROJECT SYNOPSIS

Details of the Student:

Name: - ABHISHEK BHAGAT

Batch: - FALL WINTER 2006-2008

Specialization: - Finance and Marketing

Phone No: - 9999606282

Email: - a12bhagat@gmail.com

Area of Research:

 Mutual fund sector analysis

 5-6 funds analysis of SBI MF
 Comparisons using various statistical tools

Title of Project: SBI MUTUAL FUND EVALUATION

Problem Definition:

 Basics of mutual fund

 Players in market
 SBI MF evaluation
 Comparison with Benchmark Indices
THESIS IIPM

RESEARCH OBJECTIVE

 To study the concept of Evaluation factors of Mutual Funds and identify the Diversifying Strategies
to reduce the volatility of portfolio with respect to market.

 To do a competitive analysis of SBI MF Technology India Pvt. Ltd. With other Funds.

 To undertake a surveys of HNI’s in Delhi and identify the Sentiments of investments in

Mutual Funds.

Literature of the problem:

Mutual funds now represent perhaps the most appropriate investment opportunity for most small
investors. As financial markets become more 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 birthplace 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.

We aim to provide the best of funds available in the market to give full value to the investors’
money.

Scope of the Thesis:

 Domain of risk:
 Information risk
 Monetary risk
 Business risk
THESIS IIPM

Research Methodology:

 Application of financial tools

 AMFI
 Personnel Interaction with industry people
 Internet
 Market research

TOOLS OF DATA COLLECTION

Primary data: Market analysis and Trend analysis

Secondary data: Internet, AMFI Book, Business magazines, Portfolio evaluation books.

Reason for choosing a particular research proposal:

 Guiding the people to invest in Mutual Funds

 Profits
 Economy
 To understand the sentiments of Investors with respect to increasing Volatility of market
 the factors that will affect their choice of Investors.

Details of the External guide:

Name : Mr. A.K Gupta

Designation : AGM SBBJ

THESIS IIPM

ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Performance Evaluation of SBI

Mutual Fund” The work would not have been possible to come to the present shape without the

able guidance, supervision and help to me by number of people.

With deep sense of gratitude I acknowledged the encouragement and guidance received by my

Prof. Sumanta Sharma Associate Dean - IIPM, New Delhi. I also convey my heartfelt affection

to Mr. Vijay Kumar Boddu who helped and supported me during the course, for completion

of my thesis. I would also like to thank Mr. AK Gupta who helped me for my completion of

thesis.