Smeet Report

Summer Internship Project Report
On
“A Role of Asset Allocation in SBI Mutual Funds”
At
Submitted to
Institute Code: 778
Institute Name: Som-Lalit Institute of Business Management
Under the Guidance of

Prof. Khushboo Vachhani Talati
In partial fulfilment of the requirement of the award of the degree of

Master of Business Management (MBA)
Offered By:
Gujarat Technological University,
Ahmedabad
Prepared By:
Dhedhi Sameetkumar
217780592002
MBA (Semester - III)
September, 2022
DECLARATION
I Sameet Dhedhi (Enrollment No. 217780592002) student of Faculty of

Management (MBA) hereby declare that they have successfully completed this
project on “A Role of Asset Allocation in SBI Mutual Funds”. In the academic
year 2022-23. I declare that this submitted work is done by me and to the best of
my knowledge; no such work has been submitted by any other person for the
award of degree or MBA. I also declare that all the information collected from
various primary sources has been duly acknowledged in this project report.
I
II
CERTIFICATE OF EXAMINER
This is to certify that project work embodied in this report entitled “A ROLE OF SBI
MUTUAL FUND IN RETIREMENT PLANING” was carried out by Jenny Jain
(217780592038) of Som-Lalit Institute of Business Management.
The Report is approved / Not approved
This report is for partial fulfilment of the requirement of the award of the degree of master of
business administration (Part-Time) offered by Gujarat Technological University.
________________________
(Examiner’s sign)
Name of Examiner:
External Examiner’s Institute Name:
External Examiners Institute Code:
Date:
Place:
III
IV
V
PREFACE
As a part of MBA Curriculum and in order to gain practical knowledge in the

field of Management, I have prepared a report “A Role of SBI Asset Allocation”
in SBI Mutual Funds” The MBA programme is a well-structured course of
business management at SLIBM. The main objective of preparing the
Comprehensive Project at MBA level is to develop skills in students by providing
them an opportunity to relate practical experience with the theoretical concepts
and principles of business management. The Comprehensive Project has taught
us various managerial skills of which, Time Management is the most important.
The dissertation has been regarded as an important feature of post-graduate
education.
VI
ACKNOWLEDGEMENT
The success and the final observation drawn out from this project required a lot
of guidance and assistance from a lot of people and I am extremely privileged to
have got it all along throughout the duration of project report. The project report
in an outcome of overall supervision and co-operation received from project
guide, and most importantly, participants, and I am grateful to all of them.
I also thank Som Lalit Institute of Management and to our college Director Dr.
Neha Patel for providing me an opportunity to work on this research project. I
also express our sincere gratitude to my project guide Prof. Khushboo Vachhani
who took keeping interest in my project report and guided all along, till the date
of completion of my project report by providing all the vital and necessary
information and guidance, which further enabled to carry out the project report in
the most effective manner. I express my gratitude to all those people who
contributed in different ways in completion of this research. At last, I am highly
thankful to all the respondents, who have provided their valuable time and sincere
effort, which allowed me to meet the objectives of the research, in fair and true
manner.
VII
Contents
X. EXECUTIVE SUMMARY ............................................................................................................. IX
1. INTRODUCTION OF INDUSTRY ............................................................................................. I
1.1 How do mutual funds work? ...................................................................................................... 1
1.2 A Mutual Fund's Operation ....................................................................................................... 1
1.3 Why buy mutual funds? ............................................................................................................. 2
1.4 Types of mutual fund schemes ................................................................................................... 2
1.5 Advantages of investing in mutual funds .................................................................................. 6
1.6 SEBI Categorization of Mutual Fund Schemes ....................................................................... 8
1.7 History of Mutual Funds in India ............................................................................................ 17
1.8 Net Asset Value (NAV) ............................................................................................................. 20
1.9 SBI: Mutual Fund ..................................................................................................................... 23
1.9.2 SWOT Analysis of SBI Mutual Funds ............................................................................. 27
2. LITERATURE REVIEW........................................................................................................... 30
3. RESEARCH METHODOLOGY .............................................................................................. 30
4. DATA ANALYSIS ...................................................................................................................... 34
4.1 Graphs and Table ..................................................................................................................... 36
5. DATA STATISTICS ....................................................................................................................... 36
5.1 Reliability Test .......................................................................................................................... 46
5.2 Hypothesis Testing .................................................................................................................... 50
5.3 Factor Analysis .......................................................................................................................... 52
FINDINGS ........................................................................................................................................... 61
SUGGESTIONS .................................................................................................................................. 62
CONCLUSION ................................................................................................................................... 63
BIBLIOGRAPHY ............................................................................................................................... 46
ANNEXURE ........................................................................................................................................ 46
VIII
X. EXECUTIVE SUMMARY
Mutual funds operate under the principle that "little drops of water build a large ocean." Small
investors can also invest in mutual funds and receive a reasonable rate of return while taking
on less risk than they would with shares. Additionally, mutual funds offer advantages like tax
advantages, specialised services, and expert knowledge. Consumers do not always invest their
entire income in different goods and services. They set aside a particular amount, and a portion
of that amount will be invested in mutual funds. Mutual funds are anticipated to be a better
solution for consumers right now. It is a financial middleman who is interested in directing the
savings of persons with excess surplus. Consumers have access to a variety of investment
options, but mutual funds stand out due to their unique combination of risk, return, liquidity,
profitability, and transparency. As a result, they are growing in popularity in today's market.
The customer perception of Mutual Funds as a Asset Allocation in Gujarat's Ahmedabad city
was the primary subject of this study. It revealed that consumers' attitudes on investing in
mutual funds were favourable.
As intern, I am working with ‘SBI Mutual Fund’. SBI Mutual Fund is one of the top most Asset
Management Company (AMC). Under this firm, I got to know the about the working and
selling pattern of SBI Mutual Funds. In addition to this, I also got the product knowledge of
Company.
After getting enough number of responses on questionnaire, I started data analysis part of report
with coordination my college faculty’s guidance and my internship firm’s coordinators. In data
analysis part of summer project; I used various chart pattern like Bar chart, Pie chart etc,
Various tabular are created for better understanding of data collected through questionnaire,
moreover upon data some hypothesis test is also run for establishing relationship between two
types of variables.
Last and most important part of my summer project is described what are all findings,
suggestions and conclusion of data analysis part.
IX
1. INTRODUCTION OF INDUSTRY
1.1 How do mutual funds work?
In order to invest in shares, bonds, government securities, and money market instruments, a
mutual fund pools and collects money from a number of individuals.
Professional fund managers invest the money raised through mutual fund schemes in stocks,
bonds, etc. in accordance with the investment goal of the scheme. After deducting any
necessary costs and fees, the income or profits from this collective investment scheme are
allocated equally among the investors by figuring out the "Net Asset Value" of the scheme, or
NAV. Mutual funds demand a little fee in exchange.
In a nutshell, a mutual fund is a pool of money that is provided by a number of investors and
is managed by a qualified fund manager.
In India, mutual funds are created as trusts under the Indian Trust Act of 1882 and in accordance
with the SEBI (Mutual Funds) Regulations of 1996.
The costs and fees that mutual funds charge to manage a scheme are regulated and are limited
by SEBI's guidelines.
1.2 A Mutual Fund's Operation

The temptation to evaluate the fund's performance each time the market declines or increases
significantly should be resisted. In order for an actively managed equity scheme to produce
returns in the portfolio, one needs to be patient and give the fund a reasonable amount of time
(between 18 and 24 months).
By contributing to a mutual fund, you combine your funds with those of numerous other
investors. Mutual funds issue "Units" in exchange for the invested sum at the current NAV.
Income distributions to investors from dividends, interest, capital gains, or other income earned
by the mutual fund may be included in the returns from the fund. If you sell the mutual fund
units for more (or less) than you invested, you may experience capital gains (or losses).
The best investors for mutual funds are those who: -
1
• Lack the expertise, knowledge, or experience necessary to make direct stock market
investments.
• Want to increase their wealth but lack the interest or time to do stock market research.
• Only want to invest small sums.
1.3 Why buy mutual funds?

The investment products needed to achieve these goals vary, just as investment goals do-post-
retirement expenses, funds for children's education or marriage, and house purchases, etc.-
depend on the investor. Compared to buying individual securities, investing in mutual funds
has some clear advantages. Mutual funds provide a variety of investment options in
government securities, corporate bonds, money market instruments, and equity shares, giving
retail investors a great way to participate in and profit from market uptrends. The main benefits
are the ability to hire a professional manager to make investment decisions and the ability to
invest in a wide range of securities for a reasonable price.
1.4 Types of mutual fund schemes
Mutual fund scheme classification
There are many different types of mutual funds available that are made to fit various investor
objectives. The following factors can be used to categorise mutual funds:
1. Organisation Structure – Open ended, Close ended, Interval
2. Management of Portfolio – Actively or Passively
3. Investment Objective – Growth, Income, Liquidity
4. Underlying Portfolio – Equity, Debt, Hybrid, Money market instruments, Multi Asset
5. Thematic / solution oriented – Tax saving, Retirement benefit, Child welfare, Arbitrage
6. Exchange Traded Funds
7. Overseas funds
8. Fund of funds
2
1.4.1 Classification of scheme based on Organizational Structure
Open-ended Schemes
on all business days, open-ended schemes are perpetually available for subscription and
repurchase at the current NAV.
Close ended Schemes
Closed-ended investment vehicles have a set maturity date. Units are only redeemed upon
maturity and are issued at the time of the initial offer. Close-ended scheme units must be listed
on the stock exchanges in order to offer an exit strategy prior to maturity and allow for sales
and trading.
Interval Scheme
in accordance with predetermined transaction periods, interval schemes permit purchase and
redemption (intervals). The transaction period must last at least two days, and there must be at
least a 15-day interval between transactions. Additionally, interval scheme units must be listed
on stock exchanges.
1.4.2 Classification of scheme by Portfolio Management
Current Funds
In an active fund, the fund manager makes decisions about which stocks to choose and whether
to buy, hold, or sell the underlying securities. To build and manage the portfolio, active funds
use a variety of strategies and management techniques.
The Scheme Information document provides an upfront description of the investment

philosophy (offer document). The goal of active funds is to outperform the benchmark index
in terms of returns (alpha).
The strategy chosen will determine the risk and return in the fund. The stocks for the portfolio
are “selected” by active funds using various strategies.
3
Passive Assets
Passive Funds maintain a portfolio that corresponds to a specified Index or Benchmark, for
example:
• Index Funds
• Exchange Traded Funds (ETFs)
In a passive fund, the fund manager plays a passive role because the benchmark index
determines which stocks to buy, hold, and sell, and the fund manager or dealer only needs to
replicate that with little tracking error.
Funds: active vs. Passive
Active Fund:
Rely on qualified fund managers to oversee your investments. To perform better Standard
Index suitable for investors who want to benefit from the potential alpha generation of fund
managers.
Passive Funds:
Investment holdings in passive funds, such as exchange-traded funds or index funds, closely
replicate and follow a benchmark index (ETFs) ideal for investors who want to allocate funds
precisely according to the market index. A lower expense ratio means better liquidity and lower
costs for investors.
1.4.3 Classification by Investment Objectives
Mutual funds provide products that address the various investment goals of the investors,
including:
a. Capital Appreciation (Growth)
b. Capital Preservation
c. Regular Income
4
d. Liquidity
e. Tax-Saving
In order to help investors, customize their investments to meet their needs, mutual funds also
provide investment plans like Growth and Dividend options.
Growth funds
Growth Funds are investments that aim to increase in value over time. Invest primarily in
growth-oriented assets, like equity A medium- to long-term investment horizon is necessary
for investments in growth-oriented funds. Equity has historically outperformed the majority of
other types of investments held over the long term. However, because the prices of the
underlying equity shares may change, growth fund returns are frequently erratic in the short
term. Investors must therefore be able to accept short-term return volatility.
Income funds
Income Funds’ main goal is to give investors a consistent and reliable income. In fixed income
securities like corporate bonds, debentures, and government securities, income funds invest.
The interest income from these investments and any capital gains from changes in the value of
the securities make up the fund’s return. If the portfolio produces the required returns, the fund
will distribute the income. No assurance of income is provided. The tenor and credit quality of
the securities held will affect the returns.
Liquid/overnight/mutual funds from the money market
Investors looking for liquidity and principal protection with comparable returns should
consider liquid schemes, overnight funds, and money market mutual funds.
The funds make investments in money market instruments
5
• with 91-day maximum maturities. The market’s standard short-term interest rate will
determine the return on the invested capital. These are perfect for investors who want
to temporarily park their excess cash.
• Money Market Instruments are defined as commercial papers, commercial bills,

treasury bills, government securities with a remaining maturity of up to one year, call
or notice money, certificates of deposit, usance bills, and any other similar instruments
as may be specified from time to time by the Reserve Bank of India.
1.4.4 Classification by Investment Portfolio
According to the composition of their underlying portfolios, mutual fund products can be
categorized. According to the asset class, the fund invests in, such as equity, debt, money
market instruments, or gold, the first level of categorization will be applied.
• The second level of categorization is based on the methods and methods of portfolio
construction, such as Income fund, Dynamic Bond Fund, Infrastructure fund, Large-
cap/Mid-cap/Small-cap Equity fund, Value fund, etc.
• The scheme's investment objectives drive the composition of the portfolio.
1.5 Advantages of investing in mutual funds
1. Professional management - It's possible that investors lack the time, expertise, and
resources needed to conduct their own research and buy specific stocks or bonds.
Professional full-time money managers who have the knowledge, experience, and
resources to actively buy, sell, and monitor investments are in charge of running a
mutual fund. To achieve the goals of the scheme, a fund manager continuously monitors
investments and rebalances the portfolio as necessary. One of the most significant
6
benefits of a mutual fund is the portfolio management provided by qualified fund
managers.
2. Risk Diversification - Purchasing shares in a mutual fund is a simple way to diversify

your holdings across a variety of securities and asset classes, such as gold, debt, and
equity, which helps spread the risk and keeps all of your eggs out of one basket. When
a mutual fund scheme's underlying security faces market challenges, this is
advantageous. By diversifying, one asset class's risk is offset by the risk of the other
asset classes. Other investments in the portfolio might not be affected and might even
increase in value if the value of one investment falls. In other words, even if one part
of your portfolio experiences volatility, you won't lose the entire value of your
investment. One of the most notable benefits of investing in mutual funds is risk
diversification.
3. Affordability & Convenience (Invest Small Amounts) - For many investors, it might
be more expensive to buy all of the individual securities held by a single mutual fund
directly. In contrast, most mutual funds have lower initial minimum investments.
4. Liquidity - You have easy access to your money because you can easily redeem
(liquidate) units of open-ended mutual fund schemes to meet your financial needs on
any business day (when the stock markets and/or banks are open). Depending on the
type of scheme, the redemption amount is paid out the following business day in the
case of liquid funds and overnight funds. After redemption, the redemption amount is
credited in your bank account within one day to three or four days.
Please take note, though, that close-ended mutual fund schemes only allow redemption
of units at maturity. The same is true for ELSS units, which have a 3-year lock-in period
and can only be liquidated after that.
5. Low Cost - The low cost of mutual funds is a significant benefit. The low expense ratio
of mutual fund schemes is a result of significant economies of scale. A scheme's annual
fund operating costs are shown as a percentage of the fund's daily net assets in an
expense ratio. Administration, management, advertising-related costs, etc. are
7
examples of operating expenses for a scheme. Regulation 52 of the SEBI Mutual Fund
Regulations, 1996 specifies the upper limits for expense ratio for various types of
schemes.
6. Well-Regulated – Under the SEBI (Mutual Funds) Regulations, 1996, Mutual Funds
are governed by the capital markets watchdog, Securities and Exchange Board of India
(SEBI). In order to protect investors, ensure transparency, and adhere to fair valuation
principles, SEBI has established strict rules and regulations.
7. Tax Benefits - Under section 80C of the Income Tax Act of 1961, investments in ELSS
up to $1,50,000 are eligible for a tax benefit. When held for a longer period of time,
mutual fund investments are tax efficient.
1.6 SEBI Categorization of Mutual Fund Schemes
Mutual fund schemes are categorised as follows according to SEBI guidelines on

categorization and rationalisation of schemes released in October 2017:
• Equity Schemes
• Debt Schemes
• Hybrid Schemes
• Solution Oriented Schemes – For Retirement and Children
• Other Schemes – Index Funds & ETFs and Fund of Funds
• Large, Mid, and small cap stocks have now been defined under the Equity category.
• Naming convention of the schemes, particularly debt schemes, in accordance with
the level of risk present in the underlying portfolio (e.g., the formerly-named
"Credit Opportunity Fund" is now known as the "Credit Risk Fund").
• Conservative hybrid fund, balanced hybrid fund, and aggressive hybrid fund are
additional categories for balanced/hybrid funds.
8
1.6.1 Equity Schemes
o A fund that has an equity scheme

o Invests primarily in equity-related securities and instruments.
o Aims for long-term growth but may be unstable in the near future.
o Appropriate for investors with a greater tolerance for risk and a longer investment
horizon.
o An equity fund's main goal is typically to pursue long-term capital growth. Equity
funds may concentrate on particular market segments or may have a particular
approach to investing, such as buying growth or value stocks.
Sector specific funds
o Sectoral funds make investments in a specific area of the economy, such as banking,
technology, pharmaceuticals, or infrastructure.
o These funds limit diversification and increase risk because they concentrate on a
single economic sector.
o Because the performance of the sectors tends to be cyclical, timing of investments
into such funds is crucial.
o Equity mutual funds are an example of sector-specific funds because they have as
their investment goal to invest in
Healthcare & Pharma Sector

Sector of Banking & Finance:
FMCG (fast moving consumer goods) and related sectors.
Technology and related sectors
Thematic funds
o Thematic funds choose stocks from businesses in sectors related to a specific theme,
such as infrastructure, services, PSUs, or multinational corporations.
o They are less risky than Sectoral Funds because they are more diversified.
9
Value funds (strategy and style-based funds)
o Based on the valuation criteria used in stock selection, equity funds can be divided
into different categories. For example, growth funds identify momentum stocks that
are anticipated to outperform the market.
o Stocks that are currently undervalued but are anticipated to perform well over time
as the value is unlocked are identified by value funds.
o Equity funds may keep a small number of stocks in their portfolio to gain from stock
selection. These funds will be riskier because a poor choice could have a significant
negative impact on the return of the portfolio.
Contra funds
o Equity mutual funds that adopt a contrarian stance on the market are known as
contra funds.
o Ineffective stocks and industries are chosen at low price points with the expectation
that they will perform over the long term.
o Defensive and undervalued stocks that have produced negative returns during bear
markets are included in the portfolios of contra funds.
o These funds run the risk of making bad predictions because it's not always possible
to spot trends before the crowd, and they typically perform worse in bull markets.
o A fund house is only permitted to offer a Contra Fund or a Value Fund, not both, in
accordance with SEBI guidelines on the scheme categorisation of mutual funds.
Equity linked savings scheme (ELSS)
o According to the Equity Linked Savings Scheme, 2005, announced by the Ministry
of Finance, ELSS invests at least 80% in stocks.
o has a three-year lock-in period (which is shortest amongst all other tax saving
options)
o presently eligible for a deduction of up to 1,50,000 euros under Section 80C of the
Income Tax Act.
10
1.6.2 Debt schemes
o A fund that primarily invests in bonds and other debt securities is referred to as a
debt fund (also known as an income fund).
o Debt funds invest in short- and long-term securities such as Treasury bills,
Government Securities, Debentures, Commercial paper, Certificates of Deposit,
and other securities issued by governments, public financial institutions, and
businesses.
o According to the tenor of the securities held in the portfolio, the issuers of the
securities, or their fund management strategies, debt funds can be divided into three
categories: short-term funds, medium-term funds, and long-term funds.
o Infrastructure debt fund, corporate bond fund, Gilt fund, and Treasury fund Fixed
Maturity Plans, Floating Rate Funds, and Dynamic Bond Funds Debt funds have
the potential to preserve capital and generate income.
o In accordance with expectations for interest rates, dynamic bond funds change the
tenor of the securities in their portfolio. If lower interest rates are anticipated, the
tenor is lengthened, and vice versa.
o Investing in bonds with periodic interest resets allows floating rate funds to earn
coupon income that is consistent with market rates and substantially reduces interest
rate risk.
Short-Term Debt Funds
o Coupon income is the main concern of short-term debt funds. The credit risk that
short-term debt funds might take in exchange for higher coupon income must also
be considered. The return and risk of the fund will be determined by the tenor of
the securities.
o The risk and return on investments held by funds with shorter-term securities are
lower.
o Liquid funds invest in securities with a maximum remaining maturity of 91 days.
o To generate more coupon income, ultra short-term debt funds hold a portfolio with
a marginally longer tenor.
11
o In order to profit from price increases, short-term funds combine coupon income
from a portfolio of mostly short-term debt with some exposure to longer-term
securities.
Fixed Maturity Plans (FMPs)
o FMPs are closed-ended funds that only invest in securities whose maturity matches
the fund's maturity, eliminating interest rate risk and locking in a yield.
o FMPs build a portfolio of investments whose maturity profile matches the tenor of
the FMP.
o Given that investments are locked in, they may be able to offer better returns than
liquid funds and ultra-short-term funds.
o Low market risk because investments are sold off when they reach maturity.
o Investors commit capital for a predetermined time.
o Investors are not permitted to prematurely redeem their fund units.
o Because FMPs are closed-end schemes, they must be listed; after the NFO,
investors can only purchase or sell FMP units on the stock exchange.
Capital Protection Oriented Funds
o Close-ended hybrid funds called Capital Protection Oriented Funds build a portfolio
of debt and equity derivatives.
o A credit rating agency has given the portfolio a rating based on its capacity to offer
capital protection. Every three months, the rating is evaluated.
o The portfolio's debt portion must be allocated to securities with the highest
investment grade rating.
o A portion of the funds received from investors is put toward debt instruments with
expected maturities equal to the initial capital contributions made by investors to
the fund. Thus, the capital is safeguarded.
1.6.3 Hybrid funds
o Investments in hybrid funds include both debt and equity securities.
12
o Invest in a variety of debt and equity securities. They invest in both equity and debt
in an effort to strike a "balance" between income and growth.
o The regular income from the debt instruments gives the returns on such funds more
stability.
o The Scheme Information Document specifies the percentage of equity and debt that
will be held in the portfolio.
o Equity-oriented hybrid funds (also known as aggressive hybrid funds) are the best
choice for investors seeking growth with some stability in their investments.
o Conservative investors looking for a return boost with little exposure to equity
should consider debt-oriented hybrid funds (Conservative Hybrid Fund).
o The portfolio's equity exposure will determine the fund's risk and return. The higher
the allocation to equity, the greater the risk.
Multi Asset Funds
o A multi-asset fund provides access to many different asset classes and frequently
provides the level of diversification typically found in institutional investing.
o The traditional equity and fixed income strategies, index-tracking funds, financial
derivatives, and commodities like gold are all possible investments for multi-asset
funds.
o In particular in volatile markets, this diversity enables portfolio managers to
potentially balance risk and reward and provide investors with consistent, long-term
returns.
Arbitrage Funds
o The simultaneous purchase and sale of an asset is referred to as "arbitrage" in order

to profit from the price difference on the two markets and the price difference of
the asset on various markets or in various forms.
o To profit from the difference between the price of the security in the two markets,
an arbitrage fund purchases a stock in the cash market and simultaneously sells it
in the futures market at a higher price. The fund enters both markets with equal but
opposing positions, locking in the difference. Both positions must be closed at the
13
same price in order to realise the difference, and the positions must be held until the
derivative cycle expires.
o At the conclusion of the contract period, the cash market price and the futures
market price converge. As a result, it generates risk-free profit for the trader or
investor.
o Price changes have no impact on the initial price differential because the gain in
one market is offset by the loss in the other. Since mutual funds invest their own
money, the return from the difference is total.
o Arbitrage funds are therefore regarded as a wise choice for cautious investors who
want to profit from a volatile market without assuming too much risk.
1.6.4 Other Funds
Index Funds
o A portfolio created by an index fund reflects a market index.

o The portfolio's securities and their weights are identical to those of the index.
o The portfolio is not rebalanced based on the fund manager's assessment of the
market or a particular sector. Since index funds are managed passively, their
manager only occasionally makes small changes to keep the fund's performance in
line with the index. As a result, index funds provide the same return and risk as the
index they track. The maximum amount of fees that an index fund may charge is
1.5%.
o Since the makeup of the index is known, investors can feel secure knowing the
stocks that will make up their portfolio.
Market-Traded Funds (ETFs)
An exchange-traded fund (ETF) is a marketable security that follows an index, a

commodity, bonds, or a collection of assets, similar to an index fund.
Exchange Traded Funds (ETFs)
14
o An ETF trades on a stock exchange like a common stock, unlike regular mutual
funds. As an ETF is bought and sold on the stock market throughout the day, its
traded price fluctuates just like the price of any other stock.
o ETF Units must always be held in Demat mode.
o ETFs are passively managed, so the fund manager only occasionally makes small
changes to keep the ETF in line with its benchmark index.
o Compared to actively managed portfolios, an ETF has lower administrative costs
because it simply tracks an index rather than attempting to outperform it.
o When one purchases units of an ETF, they are utilising the power of the market
itself as opposed to investing in a "active" fund managed by a fund manager.
o Suitable for investors seeking index-like returns and stock-like liquidity
Fund of Funds (FoF)
o Fund of Funds are mutual fund schemes that invest in the shares of other schemes
in the same or different mutual funds.
o Based on the FoF's investment objective, the schemes chosen for investment will
be chosen.
o The FoF incurs expenses on two levels: those of the scheme in whose units it invests
and those of the FoF itself.
The following regulations set a cap on the overall costs that can be billed at both levels:
➢ TER has been capped at 1% with regard to FoF investing liquid schemes, index funds,
and ETFs.
➢ The maximum annual return on equity-oriented funds (TER) has been set at 2.25
percent.
➢ The maximum TER for FoF investments in any other schemes besides those listed
above is 2%.
Gold Exchange Traded Funds (FoF)
➢ ETFs called "gold ETFs" will issue units in exchange for gold that is already held.
Each unit will stand for a specific amount of gold, usually one gramme.
15
➢ The gold held by the scheme will be physical gold or gold-related instruments that
have been approved by SEBI.
➢ Plans may invest up to 20% of their net assets in bank gold deposit schemes.
➢ ETF unit prices fluctuate in tandem with the price of gold on the metal exchange.
Following the NFO, units are issued to agents known as authorised participants in exchange
for gold or funds provided. Additionally, they can exchange the units for the underlying
gold.
Benefits of Gold ETFs
o Convenience - option to hold gold digitally rather than physically.

o Gold is a safer option to hold because there are no purity or theft risks.
o Offers simple liquidity and transaction ease.
o For taxation purposes, gold ETFs are regarded as non-equity oriented mutual funds.
o If held for three years, eligible for long-term capital gains benefits.
o There is no wealth tax for gold ETFs.
International Funds
o By including one or more of the following in their portfolios, international funds

make it possible to invest in markets outside of India.
o The equity of foreign-listed companies.
o Indian company ADRs and GDRs.
o Foreign-listed companies' debt.
o ETFs from other nations.
o Shares of passive index funds located abroad.
o Units of actively managed international mutual funds.
o Indian debt or equity may also make up a portion of the portfolios of international
equity funds.
o To manage liquidity, they can hold a portion of the portfolio in money market
instruments.
16
o The investor receives additional advantages from using international funds.
o Diversification, as there may be little correlation between domestic and
international markets.
o Potentially unavailable investment options domestically.
o Access to businesses that are industry leaders on a global scale.
Investing in these funds carries certain risks, such as:
o Unfamiliar macroeconomic and political developments that are challenging to

interpret.
o The return on redemption may be impacted by changes in the foreign exchange rate.
o Nations may alter their policies regarding foreign investors' investments.
o These funds are categorised as non-equity oriented mutual fund schemes for tax
purposes.
1.7 History of Mutual Funds in India

For a developed economy, a vibrant financial market with wide participation is crucial. The
Government of India and Reserve Bank of India took the initiative to establish India's first
mutual fund, Unit Trust of India (UTI), with the broad goal of "encouraging saving and
investment as well as participation in the income, profits, and gains accruing to the Corporation
from the acquisition, holding, management, and disposal of securities."
The MF Industry has expanded significantly in recent years. The development of mutual funds
in India can be roughly divided into the following five phases:
Primary phase: 1964–1987
In India, the first mutual fund company, UTI, was established in 1963 by a parliamentary act,
and it operated under the administrative and regulatory oversight of the Reserve Bank of India
(RBI). The Industrial Development Bank of India (IDBI) replaced the RBI as the regulatory
and administrative authority over UTI in 1978 after it was delinked from the RBI. Unit Scheme
17
1964 (US '64) was UTI's initial programme. UTI had $6,700 crores in assets under management
at the end of 1988. (AUM).
Second Phase: Entry of Public Sector Mutual Funds, 1987-1993
Public sector banks, Life Insurance Corporation of India (LIC), and General Insurance
Corporation of India launched public sector mutual funds in 1987. (GIC). The first "non-
UTI" mutual fund was created in June 1987 by SBI Mutual Fund, which was followed by
Can bank Mutual Fund in December 1987, Punjab National Bank Mutual Fund in August
1989, Indian Bank Mutual Fund in November 1989, Bank of India in June 1990, and Bank
of Baroda Mutual Fund in June 1990. (Oct. 1992). While GIC had established its mutual
fund in December 1990, LIC had done so in June 1989. The MF sector had 47,004 crores
in assets under management at the end of 1993.
Third Phase: Entry of Private Sector Mutual Funds (1993–2003)
With the establishment of SEBI in April 1992 to safeguard the interests of investors in the
securities market, to encourage its growth, and to regulate it, the Indian securities market
gained more significance.
The first set of SEBI Mutual Fund Regulations, which apply to all mutual funds with the
exception of UTI, were established in 1993. The first private sector MF registered in July
1993 was the former Kothari Pioneer, which has since merged with Franklin Templeton
MF. A new era in the Indian MF sector began in 1993 with the entry of private sector funds,
offering Indian investors a wider selection of MF products. A comprehensive set of
regulations, the SEBI (Mutual Fund) Regulations, 1996, which are still in effect, were
revised and added to the original SEBI MF Regulations in 1996.
Over the years, more and more foreign sponsors established mutual funds in India,
increasing the number of MFs. During this phase, the MF industry also saw a number of
mergers and acquisitions. There were 33 MFs as of the end of January 2003, with a
combined AUM of 1,21,805 crores, of which UTI alone had an AUM of 44,541 crores.
18
Fourth phase - since February 2003 – April 2014
After the Unit Trust of India Act of 1963 was repealed in February 2003, UTI was divided
into the Specified Undertaking of the Unit Trust of India (SUUTI) and the UTI Mutual
Fund, which operates in accordance with the SEBI MF Regulations. The former UTI was
split into two, and a number of private sector fund mergers occurred, ushering in the MF
sector's fourth phase of consolidation.
Following the global financial crisis in 2009, stock markets all over the world collapsed,
including those in India. The majority of investors who entered the capital market at its
peak lost money, which seriously weakened their faith in MF products. The Indian MF
Industry had already been negatively impacted by the global financial crisis and the SEBI's
elimination of Entry Load. For more than two years, the industry struggled to recover and
transform itself in an effort to maintain its economic viability, as evidenced by the slow
growth in MF Industry AUM from 2010 to 2013.
Fifth (current) phase – since May 2014
In order to "re-energize" the Indian mutual fund industry and increase MFs' penetration,
SEBI introduced a number of progressive measures in September 2012. This was done in
recognition of the low penetration of MFs, particularly in tier II and tier III cities, and the
need for greater alignment of the interests of various stakeholders.
After the global meltdown, things started to turn around thanks to the measures, and things
significantly got better once the new government was established at the centre.
Since May 2014, the sector has experienced consistent inflows, growth in AUM, and an
increase in the number of investor folios (accounts).
On May 31, 2014, the industry's AUM reached the milestone of $10 trillion (ten lakh crore),
and in just three years, it had increased more than twofold. In August 2017, it reached the
milestone of $20 trillion (twenty lakh crore). In November 2020, the AUM size surpassed
30 trillion (or 30 Lakh) for the first time.
19
The overall size of the Indian MF Industry increased more than five times in just ten years,
from 7.53 trillion on August 31, 2012, to 39.34 trillion on August 31, 2022.
The AUM of the MF Industry increased nearly twofold in just 5 years, from 20.59 trillion
on August 31, 2017, to 39.34 trillion on August 31, 2022.
From 6.08 crore investor folios as of August 31, 2017, to 13.65 crore as of August 31, 2022,
there has been a more than 2-fold increase in just five years.
In the five years since August 2017, 12.60 lakh new folios have been added on average
each month.
The regulatory actions taken by SEBI to re-energize the MF Industry in September 2012
and the support from mutual fund distributors in growing the retail base have had a dual
effect that has allowed the industry to grow in size.
The last mile connection between investors and MF Distributors has been greatly needed,
especially in smaller towns. This connection not only allows investors to invest in suitable
schemes but also supports investors in staying on track during periods of market volatility
so that they can benefit from mutual fund investing.
Systematic Investment Plans (SIP) have become increasingly popular over the years thanks
in large part to MF distributors. The number of SIP accounts surpassed the one billion
marks in April 2016, and as of August 31, 2022, there are 5.72 billion SIP accounts overall.
1.8 Net Asset Value (NAV)

Net asset value is referred to as NAV. The NAV per unit of a mutual fund scheme serves
as a performance indicator. The NAV per unit is calculated by dividing the market value
of the securities in a scheme by the total number of units in the scheme as of a particular
date. For instance, if a mutual fund issued 10 lakh units to investors at a price of 10 each
and the market value of the securities in the mutual fund scheme is 200 lakhs, then the NAV
per unit of the fund is 20 (i.e., 200 lakh/10 lakh). Since the market value of securities
changes every day, a scheme's NAV also changes daily. On the websites of the respective
mutual funds and AMFI, NAVs for mutual fund schemes are posted every day. Contrary
20
to stocks, whose value is determined by the stock market and fluctuates minute-to-minute,
NAVs of mutual fund schemes are announced in accordance with SEBI Mutual Fund
Regulations at the conclusion of each trading day after markets have closed. Additionally,
units of mutual fund schemes are only allocated at prospective NAV, or the NAV that
would be announced at the end of the day based on the closing market value of the securities
held in the respective schemes (aside from liquid and overnight funds).
Even after the deadline, a mutual fund may accept applications; however, you will receive
the NAV for the following business day. Additionally, the cut-off time guidelines also
apply to redemptions.
1.8.1 NAV calculation
The realisable value of a mutual fund's portfolio expressed as a share is reflected in the
fund's net asset value on a specific date. or in terms of units. An open-end mutual fund
investment's value is expressed in terms of its Net asset worth Additionally, that is the sum
an investor would receive if they were to sell their units. returning to the issuer As a starting
point, daily closing prices of all securities held by the fund are used. Subtract this sum for
obligations (including expenses and commissions). then divide the outcome by the number
of shares in circulation. Divide the realisable value of the portfolio, which is Rs. 12 million,
by the number of outstanding shares, say one. then the NAV is Rs 12 (12/1) for a million
units. Your pre-tax return is 14.28 if a fund's NAV was Rs 10.5 one year ago and is now
Rs 12. percent ((12-10.5)/ (10.5) *100).
All that a NAV represents is a portfolio's current value. Only when a fund's NAV is
compared to a benchmark index does it begin to make sense. It first explains how much the
securities that make up the portfolio of the fund have outperformed or underperformed the
index. Second, you can determine whether a fund was able to generate above-average, risk-
returned schemes by using specific statistical measures. Despite this, the past NAV
performance of a fund is not the best predictor of its future performance. This NAV
fluctuates almost daily for equity funds due to changes in stock prices. While changes in
interest rates have a greater impact on the NAV of a fixed-income fund. A rising NAV
21
alone only signals that the portfolio of assets that make up the fund is increasing and vice
versa.
1.8.2 Types of loads
Your mutual fund's AMC is responsible for paying a variety of costs. As a result, it is able
to recoup some of these costs from the investors for whom it is managing money. The
annual management fee (up to 1.25 percent for funds under 1 billion rupees and 1 percent
for funds over 1 billion rupees) and entry and exit loads are the two components.
Entry load:
Only open-ended schemes typically have entry loads. The sales load is another name for an
entry load. which is primarily intended to assist the AMC in recouping costs associated
with sales literature, distribution, advertising, and agent/broker commissions. The NAV
and sales load both affect how much money an investor pays to invest in the fund. An
investor must pay an extra fee at the point of entry known as an entry load. Assume your
suggested investment is 10,000,000 rupees. Assume that the entry load is Rs. 0.50 and that
the fund's current NAV is Rs. 12.00. Following that, you will receive 800 units
(10000/12.50). For each scheme, the entry load might be different; it would also depend on
how much was invested and how long was invested.
Exit load:
On the other hand, exit load is charged when redeeming your credit card (if you withdraw
within a certain period of time) units. The latter is more sensible, particularly with income
or money market funds, where a Too many investors withdrew quickly, which could put
pressure on the asset maturity profile of the fund. So to make sure that while short-term
investors pay an exit load, longer-term investors are not penalised. An Exit load is a fee
that an investor must pay when leaving a position. This fee is assessed to deter investors
from leaving. the money. Assume that the fund's NAV is Rs. 12.00 at the moment and that
the exit load is Rs. Now If you sell 800 units, you will be paid 800 x 11.5%, or Rs. 9200.
Each scheme may have a different exit load. Additionally, it would depend on the sum
invested and the length of the investment.
22
1.9 SBI: Mutual Fund
The financial goal should include wealth appreciation over the course of the time horizon
in addition to being driven by savings. Mutual funds have become one of the most widely
used investment instruments over the past few years. The flexibility this fund offers is the
main driver of its popularity. A lucrative choice for investors is made possible by the
availability of small investments through SIP of up to INR 500 and by the wide range of
features available in market products. One of the top companies in the nation is The State
Bank of India Mutual Funds, which has more than 30 years of fund management
experience. In light of this fact, SBI MF may present a viable choice for investors looking
to launch a venture in the money market. Allow me to give you a brief overview of its
background, facts, and investment advice.
The State Bank of India and AMUNDI, a French international fund management company
that is a subsidiary of Crédit Agricole and Société Générale, jointly created the SBI Mutual
Fund. It was established as a Trust in accordance with the terms of the Indian Trust Act of
1882 and is commonly referred to as the SBI Mutual Fund Trustee Company Private
Limited. One of the biggest bank-sponsored mutual funds in India, this one has its corporate
headquarters in Mumbai. The Resurgent India Opportunity Fund, an offshore fund, has also
been introduced by this mutual fund. Additionally, the Securities and Exchange Board of
India is listing it (SEBI). The fund manages over INR 42,000 crore in assets and has a
diverse investor base that parks their money across 38 active schemes.
Business Performance of SBI Mutual Fund
The highest growth rate among the top six fund houses in terms of Quarterly AAUM was
achieved by SBI Mutual Fund (SBIMF), which increased by 28.27% on an annual basis in
FY 2022. SBIMF continued to maintain its top position in the sector in terms of average
AUM throughout the year. The market share increase in terms of average AUM was the
highest in the sector at 1.15 percent on an annual basis. 33.2% of the industry's new net
inflows for the year come from net inflows for SBIMF.
SBI Mutual Fund -Schemes Performance
According to the one-year return category as of March 31, 2022:
23
1. The top two quartiles included 67% of our equity funds and 69% of our debt funds.
2. SBI Magnum Large and Midcap Fund, SBI Magnum Infrastructure Fund, and SBI
Consumption are a few of our larger equity funds.
Opportunities Fund, SBI Magnum Children Benefit Fund - Investment, and SBI Retirement
Benefit Fund - Aggressive Hybrid Plan
SBI Balanced Advantage Fund and Plan both scored highly.
3. SBI Banking & PSU Debt Fund, SBI Dynamic Bond Fund, SBI Magnum Gilt Fund, and
SBI Magnum Ultra are among the fixed income funds.
In the top quartile were Short Duration Fund and SBI Retirement Benefit Fund -
Conservative Hybrid Plan.
Awards and Recognition
Details of SBI Mutual Fund's awards for outstanding investment performance are as follows:
1. In the Lipper Fund Awards' Equity India Small and Mid-Cap category (5 & 10 years),
SBI Small Cap Fund came out on top. Celebration of 2021
2. In the Lipper Fund Awards, SBI Banking & Financial Services won in the Equity Sector
Financials category (3 & 5 years). Celebration of 2021
3. The Mixed Asset INR Conservative category winner was SBI Magnum Children's
Benefit Fund- Savings Regular Growth (10 years) in the Lipper Fund Awards Ceremony
of 2021
4. In the Asian Investor Awards 2021, SBI Funds Management Ltd. received the "Best
Fund House - India" award.
5. The Morningstar Fund Awards Ceremony recognised SBI Magnum Income Fund as the
Best Medium to Long Duration Fund. - 2021.
6. The Morningstar Fund Awards Ceremony recognised SBI Magnum Income Fund as the
Best Medium to Long Duration Fund. - 2022.
7. In the Asian Investor Awards 2022, SBI Funds Management Ltd. received the "Best
Fund House - India" award.
24
Distribution network
As of March 31, 2022, the fund house had 90,050 AMFI certified agents, up from 82,897
AMFI certified agents on the same date in the previous year. Additionally, the number of
employees with a State Bank of India Unique Identification Number increased to 29,968
from 27,273 during the same period. the same timeframe. We had 259 points of presence
throughout India during the year, with a point of presence abroad in Dubai.
Achievements and new initiatives
1. SBIMF was the first mutual fund company to surpass $6 trillion in AUM, further
solidifying our position as the industry leader. Additionally, our market share has reached
a new high of 17%. In addition, we welcomed 20 lakh new investors for the fiscal year
2022.
2. SBIFM has reached another milestone by increasing its profit after tax (PAT) from
862.76 Cr in FY 2021 to 1070.65 Cr in FY 2022, a significant increase. growth of 24%.
3. Total Assets Under Management (AUM) of SBIFM, which includes the AUM of all
three businesses (Mutual Funds, Portfolio Management Services, and Alternative
Investments). The amount of funds was Rs. 16.50 lakh Crore, representing a 24% market
share across the entire asset management sector.
4. Despite suffering from the severe effects of COVID-19 for the first quarter of FY 2022,
SBIMF's quarterly average assets under management (QAAUM) increased to Rs. 6.47 lakh
crore in the quarter ending March 2022 from Rs.
5. SBIMF QAAUM increased by 28% in FY 2022, outpacing the mutual fund industry's
QAAUM growth of 19% during the same period.
25
6. SBIMF mobilised '14,728 Crore from SBI Balanced Advantage Fund and '8170 Crore
from SBI Multicap Fund in two of the largest NFO's in the history of the Indian MF
industry.
7. The majority of domestic investors have developed small, regular savings habits. SIPs
have been instrumental in leveraging this behaviour. Another aspect of these investments
that has been encouraging for growth and helped to forge enduring bonds between the fund
house, distributors, and investors is their stickiness. With our monthly SIP book at "1,908
crores" in March 2022 as compared to "1,382 crores" in March 2021, a growth of 38.07%,
we have increased our share of the industry SIP book.
8. In order to create a sustainable business for all stakeholders and to put the safety of
investors first, we continuously work to improve our risk mitigation processes, which
remained in place for FY 2022.
9. After changing from a private limited company to a public limited company, SBI Funds
Management Private Limited became SBI Funds Management Limited (SBIFM).
10. In Gandhinagar, Gujarat, the first International Financial Services Centre (IFSC) in
India, Gift City, was chosen as the location for SBIFM's branch. This is a calculated move
to entice foreign capital into a country with favourable tax laws.
11. In FY 2022, SBIFM received a third consecutive certification as a "Great Place to

Work," with higher scores than the previous year across all defined parameters. This
certification, which is valid from March 2022 to February 2023, is the result of the
organization's High-Trust and High-Performance culture.
12. SBIFM continues to make significant investments in this sector with a focus on
customer service to support investors at every stage of their investment journey. By
26
gathering customer feedback, enhancing systems, strengthening governance around
recurrent requests, upskilling teams, and quick resolution, we were able to address many
customer pain points. By offering improved digital solutions to both our investors and
distributors, we continuously improved the on-boarding and investment processes. The
overall number of complaints is declining.
1.9.1 Competitors of SBI Mutual Fund
1. Axis Asset Management Company Ltd.

2. Birla Sun Life Asset Management Company Ltd.
3. HDFC Asset Management Company Ltd.
4. ICICI Prudential Asset Management Company Ltd.
5. IDBI Asset Management Ltd.
1.9.2 SWOT Analysis of SBI Mutual Funds

A form of fundamental assessment of a company's health that looks at its strengths,
weaknesses, commercial opportunities, and any threats or risks
1. Strengths
SBI Mutual Fund is sponsored by the State Bank of India, the nation's largest lender
with more than 200 years of history and a vast network of more than 13000 branches.
• Wide Reach: Association banks are defeated by SBI Mutual Fund's powerful
distribution network. State Bank of India's 13000 branches, which outnumber the 2000
branches of associate banks, and the distribution of SBI mutual fund products provide
those funds' products a significant presence.
• Services: SBI Mutual Funds is a financial product where services play a major role
offering common services through its branches, which are spread in 445 cities
• Brand Image: Unlike some of its rivals (like HSBC), has a multi-brand approach. The
company sells products under a variety of well-known brand names, which enables it
to appeal to a wide range of market sectors.
• Distribution Channel Strategy: SBI is always enhancing how its products are
distributed. Its connectivity via the Internet and online platforms provides a
27
combination of outstanding development possibilities. Additionally, its retail direct
business expanded by 27% in 2002 and 15% in 2003.
• Large pool of installed capacities.
• Experienced managers for large number of generics
• Large pool of skilled and knowledgeable manpower.
2. Weakness
• Less publicity: SBI Mutual Fund is primarily a public sector organization. Fund uses a
smaller budget for advertising and doesn't use brand advocates, thus it doesn't receive
much attention.
• Being an asset management business, it is unable to quickly alter the market or weaken
the power of the competition.
• Less aggressive
• Comparatively less reach to the investors
3. Opportunities
• The strong brand recognition of State Bank of India aids SBI mutual fund in expanding
its market share. Additionally, there is a chance that SBI mutual fund will be ranked
among the top three AMCs in the nation because it has the ability to get to the top.
• Governmental policies are becoming more liberal within the mutual fund sector
4. Threats
• Regulatory Framework: Due to the constantly evolving regulatory framework in India,

the mutual fund sector faces significant threats to both its inflow of new investors and
sustainable growth in the absence of entry loads, making it exceedingly challenging to
manage the assets management industry.
• Increased Competition: Because of the fierce rivalry from so many local competitors,
current marketers are having trouble. Multinational brands will also soon enter the
market, despite the fact that they are not yet well-known. Approximately 60–70% of
the total revenue is spent on management and services.
• Lack of sufficient branch offices for the speedy delivery of services
28
• Hedge Funds: Mutual funds are also at risk because of what is frequently referred to as
"hot money," which has a reputation for crashing the markets. Whether there is a crash
in the stock, bond, or currency markets, a hedge fund typically plays a significant role.
• Inflation: War and natural disasters like the Tsunami had an impact on the Indian stock
market crash, which had a direct impact on mutual funds.
29
2. LITERATURE REVIEW
Akhtar et al (2021)
The SBI Mutual Fund is the first AMC to follow this and has been benchmarked against the
Nifty 100 ESG indices. A correlation analysis is made among the results of the SBI Mutual
Fund and the NIFTY to compare the four different types of SBI ESG funds and their sector
wise participation in different industries. This research paper is methodological in nature as it
interprets the published secondary data sources of the SBI Mutual Fund and the NIFTY indices.
The goal of this paper is to assess the efficacy of the ESG Equity Fund in the investment
portfolio of mutual fund investors and to enable small and medium-sized investors to contribute
their money to ESG-driven mutual fund schemes.
Jacob (2020)
The paper examines the investment decisions of equity mutual funds during various stages of
the COVID-19 pandemic with monthly portfolio holdings. We find that funds have favored
firms with lower risk, higher financial flexibility, and larger asset size during the early months
of the pandemic. This preference for relatively less risky firms, which later reverses, suggests
a reallocation towards safer assets given the higher uncertainty at the beginning of the crisis.
We also find that funds preferred growth firms overvalue firms as value firms with greater
invested capital are likely to be less resilient to the crisis-induced shock. The paper brings out
key firm- and fund-level characteristics that impact the asset allocation of institutional investors
during extreme market uncertainty.
Chahal (2018)
A mutual fund is a professionally managed investment fund that pools money from many
investors to purchase securities. Mutual funds are subject to market risk (i.e. systematic risk
and unsystematic risk). Mutual funds lower the risks associated with investment through
diversification. The Assets under Management (AUM) of the Indian mutual fund (MF) industry
witnessed an exceptional growth of 42% in financial year 2017. The growth can be attributed
to strong retail participation and overall market gains. The paper measures the risk involved in
SBI mutual funds schemes under various categories of equity. Further, it also highlights the
return given by various SBI mutual funds schemes under various category of equity. Beside
this, paper analyses the portfolio and assets allocation of SBI mutual funds schemes under
different Category of Equity.
30
Sathish et al (2016)
This research paper is an attempt to evaluate the performance of selected schemes of different
mutual funds in India. The sample consists of 20 schemes from the selected asset management
companies over a study period of 5 years spanning from January 2010 to December 2014. The
performance of selected funds is evaluated by using statistical tools like average rate of return
of funds, standard deviation, beta, correlation, regression analysis and risk adjusted techniques
are used by using Sharpe ratio, Treynor ratio and Jensen ratio. Benchmark index has also done
for the purpose of analysis.
Rohitraj et al (2015)
Investment is very important to park the surplus fund of an individual for the purpose of earning
additional income or capital appreciation or both. The investor has to consider various factors
while making an investment decision these are as follows: risk associated with the investment,
tax benefits, liquidity, and marketability etc. In this research work the performance of the fund
will be evaluated using five portfolio performance measurement parameters like Beta, Standard
Deviation, Sharpe Ratio, Treynor Ratio and Jensen’s Alpha. The benchmark taken for this is
CNX NIFTY Index. The study is primarily done to evaluate the performance of the selected
Mutual Funds schemes over a period ranging from 2009 to 2014.
Gupta et al (2015)
This research paper consists of the analytical and different schemes of SBI Fund Management
Pvt. Ltd. which provides to give the concept of what is the difference in their schemes and their
performance. The research paper also highlighted the various objectives from which major
objective is to understand the basic concepts of Portfolio management and Mutual funds and
its benefits as an investment avenue. In this research paper the analysis is done on the basis of
returns and net asset values of the various schemes that is SBI blue chip (G), SBI Magnum Gilt
- Long Term Plan (G), SBI Dynamic Bond Fund (G),. This scheme varies under the various
categories of mutual funds.
31
Bhavsar et al (2014)
Mutual funds have emerged as an intermediary for wealth creation for investors with varied
objectives and varied risk -return appetites, without having to go through the rigmarole of direct
investments in equity, which are more volatile, need professional and technical know-how.
However, the industry has not been immune from recent economic turbulences including the
recent Subprime crisis in 2008, Euro-zone crisis of 2010 and a slowdown in the global financial
markets in recent years. The falling Net Asset Values (NAV) have been eroding investor's
wealth and confidence. The paper attempts a comparative analysis of the performance of
selected private and public sector mutual funds. Findings indicate that public sector mutual
funds have been better performers than their private sector counter parts. Further public sector
funds have been ranked higher under the Sharpe and Treynor ratio, whereas private sector funds
have been ranked higher under the Jensen's Alpha.
Thomas (2013)
This study is helpful in tracing the performance of top mutual funds and to compare the mutual
fund based on the risk bearing capacity and expected returns of the investors and will also carry
out an analysis of the portfolio of the selected mutual fund.
Dani et al (2012)
In the context of this paper, the discussion is restricted to financial assets or securities. When
an amount is invested in any security, it is expected to be held by the investor for a certain
period of time. The investor expects monetary return from such investment. An investment in
a fixed deposit can fetch an assured rate of return in the form of interest on the deposit amount.
On the other hand, an investment in a security of a company may not guarantee an assured rate
of return. The return may change depending upon different factors. It may be higher than the
interest earned on a fixed deposit or can be very high. In some cases, the investor may actually
incur loss. Investment in such securities has risk associated with it. Is it possible for investors
to minimize the risk or loss associated with such securities?
Agrawal (2011)
This article provides an overview of mutual fund activity in emerging markets. It describes
their size and asset allocation. This paper is a process to analyze the Indian Mutual Fund
32
Industry pricing mechanism with empirical studies on its valuation. It also analyzes data at both
the fund manager and fund-investor levels. The study reveled that the performance is affected
by the saving and investment habits of the people and on the second side the confidence and
loyalty of the fund Manager and rewards affects the performance of the MF industry in India.
33
3. RESEARCH METHODOLOGY
3.1 Research Objective
• To analyze the customers perception towards the asset allocation
• To identify customer preferred asset to risk
• To analyse the satisfaction levels of customers towards SBI Mutual Fund asset
allocation strategy
3.2 Hypothesis Testing

H0: There is no significant relation between age and type of Mutual fund Scheme they prefer.
H1: There is significant relation between age and type of Mutual fund Scheme they prefer.
H0: There is no significant relation between income and Investment Purpose.
H1: There is significant relation between income and Investment Purpose.
3.3 Research Design

Quantitative and exploratory research design is used in this study. Exploratory design is used
here to have the proper understanding about the asset allocation opinion of the respondents.
Also, the research design is cross sectional in nature as the responses are collected once and at
a single point of time.
3.4 Source of Data

This research study is based on the collection of primary data. Primary Data are original sources
from which the researcher directly collects data. The objective of this study has been
accomplished with the help of primary data collected from 100 responses. Questionnaire was
created on google form and link is been sent to the respondents.
3.5 Population of the study

Population is defined as the whole group that the research focuses on. For this research,
Population of study are the study of SBI Mutual Funds.
3.6 Sampling Method and Sampling Technique

Sampling refers to the method, criteria, rules and procedures used to select subject’s further
study. The researcher should have a good understanding of the research topic and related on
field knowledge. Sampling can be defined as the process by which relatively small numbers of
34
individuals, objects or events is chosen and analyzed for further findings from population of
study.
When field studies are under undertaken in practical life, consideration of time, cost and some
other factors almost invariably lead to selection of respondents. The selected respondents
constitute a sample and the selection process is called sampling technique. Non probability
judgmental used for getting better understanding of A Role of Asset Allocation in SBI Mutual
Funds.
3.7 Statistical Tool for Data Analysis

The most convincing and appealing ways in which data may be presented are tables, charts and
pictures. Pictorial representation helps in quick understanding of the data. Charts have greater
memorizing effect as the impressions created by them last much longer than those created by
the figure. A chart can take the shape of either a diagram or a graph. The data are presented
through different types of diagrams are as followed with the help of Statistical Package for
Social Science (SPSS)v28 Evaluation 14-days Trial Version.
3.8 Limitation of the Study

a. The sample size is restricted to 100 respondents due to time constraints and unwillingness
of half of the respondents to provide information for the study.
b. This research does not study the perceptions of individuals towards Asset Allocation outside
Ahmedabad.
c. This research studies only a specific group of people belonging to a particular customer of
SBI Mutual Funds.
3.9 Scope of Further Study

Under the same topic of the project, a further study can be carried out with more sample size
or with more categories of respondents are or more statistical tools can be used or more
questions can be included in questionnaire.
35
4. DATA ANALYSIS
4.1 Graphs and Table
1. Gender
Gender
Frequency Percent
Male 77 77.0
Female 23 23.0
Total 100 100.0
GENDER
Female
23%
Male
Male Female
77%
Interpretation:
In this survey of 100 people 75 responses which accounts to 77% were from male and 25
responses which accounts to 23% were female.
36
2. Age Group
Age
Frequency Percent
20 Years to 35 Years 52 52.0

65 Years and above 4 4.0
Total 100 100.0
AGE GROUP
4
7
52
37
20 Years to 35 Years 35 Years to 50 Years

50 Years to 65 Years 65 Years and above
Interpretation:
Approximately 50% of the responses were from the age group 20 to 35 years. 37 responses
were from the age group 35 to 50 years. Very few responses were from the age group of 50 to
65 Years and above 65 Years.
37
3. Occupation
Occupation
Frequency Percent
Student 11 11.0
Self Employed 29 29.0
Professional 49 49.0
Retired 4 4.0
Others 7 7.0
Total 100 100.0
OCCUPATION
1 49
29
11
0 10 20 30 40 50 60
Others Retired Professional Self Employed Student
Interpretation:
In the above survey, nearly 50 responses were from the professional class and approximately
30 responses were from Self-employed group.
38
4. Income
Income
Frequency Percent
Less than 10 lakhs 34 34.0
10 lakhs to 30 lakhs 37 37.0
Above 70 lakhs 3 3.0
Total 100 100.0
INCOME
Less than 10 lakhs 10 lakhs to 30 lakhs 30 lakhs to 50 lakhs
50 lakhs to 70 lakhs Above 70 lakhs
40
35
30
25
20
15
10
5
0
Frequency
Interpretation:
In the above survey, nearly equal percentage of the respondents belong to income group of less
than 10 lakhs and income group of 10 lakhs to 30 lakhs. Only responses were from the income
group of above 70 lakhs.
39
5. Investment Purpose
Investment Purpose
Frequency Percent
Tax Savings 19 19.0

Wealth Creation 36 36.0
Retirement 22 22.0
Safety 17 17.0
Others 6 6.0
Total 100 100.0
INVESTMENT PURPOSE
Others
6% Tax Savings
Safety 19%
17%
Retirement
22% Wealth Creation
36%
Interpretation:
From the survey we can conclude that for 36% of the population invest for the purpose of
wealth creation, 22% of the population invest for the retirement purpose and 19% invest to
save the tax.
40
6. Percentage of Income you Invest in SBI Schemes
Percentage of income you invest in SBI Schemes

Frequency Percent
Up to 10% 21 21.0
Up to 20% 19 19.0
Up to 30% 31 31.0
More than 30% 29 29.0
Total 100 100.0
% OF THE INCOME INVESTED IN SBI

SCHEMES
35
30
31
29
25
20
21
19
15
10
0
Up to 10% Up to 20% Up to 30% More than 30%
Interpretation:
We can see from the above table 31 respondents invest up to 30% of their income in SBI
schemes and 19 respondents invest up to 20% of their income in SBI schemes.
41
7. Top 3 Preferred Instruments 1st Preference
Top 3 preferred instruments 1st preference
Frequency Percent
Fixed Deposits 58 58.0
Mutual Funds 42 42.0
Total 100 100.0
Top 3 preferred instruments 1 st

preference
Mutual Funds
42%
Fixed Deposits
58%
Fixed Deposits Mutual Funds
Interpretation:
When asked about the top 3 preference of investment instruments, all the respondents chose
Fixed Deposits and Mutual Funds as their 1st preference from various investment instrument
options.
42
8. Top 3 Preferred Instruments 2nd Preference
Top 3 preferred instruments 2nd preference

Frequency Percent
Mutual Funds 47 47.0
Govt. Securities 35 35.0
Equities 18 18.0
Total 100 100.0
Top 3 preferred instruments 2nd preference
47
35
18
FREQUENCY
Mutual Funds Govt. Securities Equities
Interpretation:
2nd preference for the responses are Mutual Funds, Govt. Securities and Equities in 47 , 35 and
18 proportion respectively.
43
9. Top 3 preferred Instruments 3rd Preference
Top 3 preferred instruments 3rd preference

Frequency Percent
Govt. Securities 8 8.0
Equities 59 59.0
Others 29 29.0
Missing 4 4.0
Total 100 100.0
Top 3 preferred instruments 3rd preference

Missing
Govt. Securities
4% 8%
Others
29%
Equities
59%
Govt. Securities Equities Others Missing
Interpretation:
When asked about their 3rd preference, people chose Govt. Securities, Equities and others as
their preference.
44
10. Type of Mutual Fund Scheme You Prefer
Type of Mutual Fund you prefer

Frequency Percent
Equity 44 44.0
Debt 10 10.0
Hybrid 26 26.0
Solution Oriented 20 20.0
Total 100 100.0
Type of Mutual Fund you Prefer
0 5 10 15 20 25 30 35 40 45 50
Solution Oriented Hybrid Debt Equity
Interpretation:
From 100 responses, 44 respondents prefer Equity ,10 prefer Debt, 26 prefer hybrid and 20
prefer solution-oriented schemes.
45
5. DATA STATISTICS
5.1 Reliability Test
Test Interpretation:
Cronbach’s Alpha is measure of internal consistency, that is, how closely related a set of items
are as a group. It is considered to be measure of scale reliability. The alpha coefficient for the
seven items is .632, suggesting that the items have relatively high internal consistency. (Note
that reliability coefficient of 0.60 or higher is considered “acceptable”).
Reliability Statistics
Cronbach's
Alphaa N of Items
0.632 5
a. The value is negative due to a negative average covariance
among items. This violates reliability model assumptions.
You may want to check item coding.
Item Statistics
Std.
Mean Deviation N
Level of risk associated 3.8700 .56237 100
with Fixed Deposits
Level of risk associated 3.1700 1.31852 100
with Mutual Funds
with_Govt._Securities
with Equities
with Others
46
Item-Total Statistics
Scale Mean Cronbach's Alpha
Level of risk associated with 21.2300 .743
Fixed Deposits
Mutual Funds
Level_of_risk_associated_with_ 18.9800 .794
Govt._Securities
Equities
Others
a. The value is negative due to a negative average covariance among items. This
violates reliability model assumptions. You may want to check item codings.
seven items is .765, suggesting that the items have relatively high internal consistency. (Note
that reliability coefficient of 0.60 or higher is considered “acceptable”).
Cronbach's Alpha N of Items
.765 5
47
Item Statistics
Std.
Mean Deviation N
Return associated with 3.9300 .68542 100
Fixed Deposits
Mutual Funds
Return associated 4.2900 .74257 100
Equities
Others
Return associated with 23.1800 .624
Fixed Deposits
Mutual Funds
Return associated 22.8200 .517
Equities
Others
seven items is .850, suggesting that the items have high internal consistency. (Note that
reliability coefficient of 0.60 or higher is considered “acceptable”).
48
Cronbach's
Alpha N of Items
.850 4
Item Statistics
Std.
Mean Deviation N
Equity investment 3.52000 .867575 100
satisfaction with
objective
Debt investment 3.20000 .932034 100
satisfaction with
objective
Hybrid investment 3.33000 .61468 100
satisfaction with
objective
Solution oriented 3.92000 .577911 100
investment satisfaction
with objective
Equity investment satisfaction with 22.45000 .658
objective
Debt investment satisfaction with 20.77000 .743
objective
Hybrid investment satisfaction 21.64000 .789
with objective
Solution oriented investment 22.05000 .790
satisfaction with objective
za. The value is negative due to a negative average covariance among items. This
violates reliability model assumptions. You may want to check item codings.
49
5.2 Hypothesis Testing
H0: There is no significant relation between age and type of Mutual fund Scheme they prefer.
H1: There is significant relation between age and type of Mutual fund Scheme they prefer.
Age * Type of Mutual Fund you prefer Cross Tabulation

Type of Mutual Fund you prefer
Solution
Equity Debt Hybrid Oriented Total
Age 20 Years to 35 28 3 13 8 52
Years
35 Years to 50 14 2 11 10 37
Years
50 Years to 65 2 2 2 1 7
Years
65 Years and 0 3 0 1 4
above
Total 44 10 26 20 100
Chi-Square Tests
Asymptotic
Significance
Value df (2-sided)
Pearson Chi-Square 27.537a 9 .001
Likelihood Ratio 19.789 9 .019
Linear-by-Linear 1.921 1 .166
Association
N of Valid Cases 100
a. 9 cells (56.3%) have expected count less than 5. The
minimum expected count is .40.
It can be seen from the test results that chi square calculated is less than chi square tabulated
[0.001 < 0.05]. Therefore we reject the null hypothesis and accept the alternative hypothesis.
In other words, we can see that there is significant relation between the age group and the type
of Mutual Fund Schemes they prefer.
H0: There is no significant relation between income and Investment Purpose.
50
H1: There is significant relation between income and Investment Purpose.
Income * Investment Purpose Cross Tabulation

Investment Purpose
Tax Wealth Retiremen
Savings Creation t Safety Others Total
Income Less than 10 lakhs 4 12 12 5 1 34
10 lakhs to 30 12 13 2 7 3 37
lakhs
30 lakhs to 50 2 6 7 0 1 16
lakhs
50 lakhs to 70 1 3 1 4 1 10
lakhs
Above 70 lakhs 0 2 0 1 0 3
Total 19 36 22 17 6 100
Chi-Square Tests
Asymptotic
Significance
Value df (2-sided)
Pearson Chi-Square 26.567a 16 .047
Likelihood Ratio 30.294 16 .017
Linear-by-Linear .516 1 .473
Association
N of Valid Cases 100
a. 16 cells (64.0%) have expected count less than 5. The
minimum expected count is .18.
It can be seen from the test results that chi square calculated is less than chi square tabulated
[0.047 < 0.05]. Therefore, we reject the null hypothesis and accept the alternative hypothesis.
In other words, we can see that there is significant relation between Income and Investment
Purpose.
51
5.3 Factor Analysis
Correlation Matrix
Correlation Matrix
Level of
Level of risk Level of Level of
risk associate risk risk Level of
associate with associate associate risk
with Fixed Mutual with Govt. with associate
Deposits Funds Securities Equities with Others
Correlatio Level of risk 1.000
n associated with
Fixed Deposits
Level of risk .016 1.000
associated with
Mutual Funds
Level of risk .012 -.073 1.000
associated with
Govt. Securities
Level of risk .146 -.085 -.119 1.000
associated with
Equities
Level of risk -.063 -.074 .101 -.150 1.000
associated with
Others
a. Determinant = .914
Test Interpretation
The output from the analysis is the correlation coefficient. A correlation matrix is simply a
rectangular array of numbers which gives the correlation coefficients between a single variable
and every other variable in the investigation. The correlation coefficient between a variable
and itself is always 1, hence the principal diagonal of the correlation matrix contains 1s. The
correlation coefficients above and below the principal diagonal are the same. The determinant
of the correlation matrix is shown at the foot of the table above.
KMO and Bartlett’s Test
52
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling .508
Adequacy.
Bartlett's Test of Approx. Chi-Square 8.701
Sphericity df 10
Sig. .561
Test Interpretation
The KMO measures the sampling adequacy which should be greater than 0.5 for a satisfactory
factor analysis to proceed. If any pair of variables has a value less than this , consider droping
one of them from the analysis. The off-diagonal elements should all be very small (close to
zero) in a good model. Looking at the table below, the KMO measure is 0.508
There is no significant answer to question “How many cases do I need to factor analysis?”, and
methodologies differ. A common rule is to suggest that a researcher has at least 10-15
participant per variable. Fiedel (2005) says that in general over 300 cases for sampling analysis
is probably adequate. There is universal agreement that factor analysis is inappropriate when
sample size is below 50. Kaisen (1974) recommend 0.5 as minimum (barely accepted), values
between 0.7-0.8 acceptable, and values above 0.9 are superb
53
Bartlett’s Test
Test Interpretation
Bartlett's test is another indication of the strength of the relationship among variables. This tests
the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is matrix
in which all of the diagonal elements are 1 and all off diagonal elements are 0. You want to
accept this null hypothesis. From the same table, we can see that the Bartlett's test of sphericity
is significant That is, its associated probability is greater than 0.05. In fact, i.e. the significance
level is big enough to accept the null hypothesis. This means that correlation matrix is an
identity matrix.
Communalities
Communalities
Extractio
Initial n
Level of risk associated 1.000 .325
with Fixed Deposits
with Mutual Funds
with Govt. Securities
with Equities
with Others
Extraction Method: Principal Component
Analysis.
Test Interpretation
The next item from the output is a table of communalities which shows how much of the
variance in the variables has been accounted for by the extracted factors. For instance over 61
54
% of the variance in level of risk associated with Fixed Deposits is accounted for while 61%
of the variance level of risk associated with Equities in is accounted for.
Total Variance
Total Variance Explained

Extraction Sums of Rotation Sums of
Initial Eigenvalues Squared Loadings Squared Loadings
% of % of % of
Compo Varianc Cumulat Varianc Cumulat Varianc Cumulat
nent Total e ive % Total e ive % Total e ive %
1 1.302 26.037 26.037 1.302 26.037 26.037 1.219 24.383 24.383
2 1.093 21.864 47.901 1.093 21.864 47.901 1.176 23.518 47.901
3 .984 19.679 67.580
4 .877 17.532 85.112
5 .744 14.888 100.000
Extraction Method: Principal Component Analysis.
Test Interpretation
The next item shows all the factors extractable from the analysis along with their eigenvalues,
the percent of variance attributable to each factor, and the cumulative variance of the factor
and the previous factors. Notice that the first factor accounts for 26.037% of the variance, the
second 47.901%. All the remaining factors are not significant.
55
Rotated Component Matrix

Component
1 2
Level of risk associated .570
with Fixed Deposits
Level of risk associated -.412
with Mutual Funds
with Govt. Securities
with Equities
with Others
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 3 iterations.
Test Interpretation
The idea of rotation is to reduce the number factors on which the variables under investigation
have high loadings. Rotation does not actually change anything but makes the interpretation of
the analysis easier. Looking at the table above, we can see that Govt. Securities are loaded on
component 2 and Fixed Deposits, Mutual Funds and Equities are loaded on component 1. These
factors can be used as variables for further analysis.
56
Correlation Matrix
Correlation Matrixa
Return
Return associated Return
associated with associated Return Return
with Fixed Mutual with Govt. associatewi associated
Deposits Funds Securities th Equities with Others
Correlatio Return associated 1.000
n with Fixed Deposits
Return associated -.085 1.000
with Mutual Funds
Return associated .140 .221 1.000
with Govt.
Securities
Return associated .307 -.024 .012 1.000
with Equities
Return associated -.026 .011 .003 -.036 1.000
with Others
a. Determinant = .830
Test Interpretation
factor analysis to proceed. If any pair of variables has a value less than this , consider droping
zero) in a good model. Looking at the table below, the KMO measure is 0.734.
between 0.7-0.8 acceptable, and values above 0.9 are superb.
57
KMO and Bartlett’s Test
KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling .472
Adequacy.
Bartlett's Test of Approx. Chi-Square 17.943
Sphericity Df 10
Sig. .056
Test Interpretation
factor analysis to proceed. If any pair of variables has a value less than this, consider dropping
zero) in a good model. Looking at the table below, the KMO measure is 0.472
between 0.7-0.8 acceptable, and values above 0.9 are superb
Bartlett’s Test
Test Interpretation
Bartlett's test is another indication of the strength of the relationship among variables. This tests
the null hypothesis that the correlation matrix is an identity matrix. An identity matrix is matrix
in which all of the diagonal elements are 1 and all off diagonal elements are 0. You want to
accept this null hypothesis. From the same table, we can see that the Bartlett's test of sphericity
is significant That is, its associated probability is greater than 0.05. In fact, i.e. the significance
level is big to accept the null hypothesis. This means that correlation matrix is an identity
matrix.
58
Communalties
Communalities
Extractio
Initial n
Fixed Deposits
Mutual Funds
Govt. Securities
Equities
Others
Analysis.
Test Interpretation
The next item from the output is a table of communalities which shows how much of the
variance in the variables has been accounted for by the extracted factors. For instance over 68%
of the variance in return associated with Fixed Deposits is accounted for while 65% of the
variance in return associated with Equities is accounted for

Extraction Sums of Squared Rotation Sums of Squared
Initial Eigenvalues Loadings Loadings
Compo % of Cumulati % of Cumulati % of Cumulati
nent Total Variance ve % Total Variance ve % Total Variance ve %
1 1.347 26.939 26.939 1.347 26.939 26.939 1.341 26.814 26.814
2 1.220 24.407 51.346 1.220 24.407 51.346 1.227 24.532 51.346
3 .994 19.880 71.227
4 .816 16.312 87.538
5 .623 12.462 100.000
Extraction Method: Principal Component Analysis.
59
Test Interpretation
The next item shows all the factors extractable from the analysis along with their eigenvalues,
the percent of variance attributable to each factor, and the cumulative variance of the factor
and the previous factors. Notice that the first factor accounts for 26.939% of the variance, the
second 51.346%. All the remaining factors are not significant.

Component
1 2
Return associated with .810
Fixed Deposits
Mutual Funds
Govt. Securities
Equities
Others
Analysis.
Rotation Method: Varimax with Kaiser
Normalization.
a. Rotation converged in 3 iterations.
The idea of rotation is to reduce the number factors on which the variables under investigation
have high loadings. Rotation does not actually change anything but makes the interpretation of
the analysis easier. Looking at the table above, we can see Mutual Funds, Govt Securities,
others are loaded on component 2 and Fixed Deposits and Equities are loaded on component
1. These factors can be used as variables for further analysis.
60
FINDINGS
✓ Survey shows that most important purpose of Investment is Wealth Creation

✓ According to the responses, people these days are more interested in Equity type of
Mutual Funds
✓ Survey shows that more people invest between 20% to 30% of their income
✓ Survey shows that there is direct relation between age group and type of investment
they prefer.
✓ Survey shows that there is significant relation between income and investment purpose.
61
SUGGESTIONS
✓ Compared to Foreign countries, India has very less schemes of Mutual Funds. Hence it
should focus on to launch schemes according to the Investors requirement.
✓ Investors make the investment to meet their different financial goals. But the schemes
are available only for Retirement and Children Benefit. So more Solution Oriented
Schemes must be launched.
✓ Mutual Fund Schemes with the reference to Risk and Investment Horizon should come
up in the Market.
✓ Variety of the Sector Oriented Fund should exist in the Market to meet the requirements
of the Investors.
62
CONCLUSION
✓ The preferential choices across the age group of the Investors is same towards the
avenues like Real Estate and Insurance and they differ in the aspects like stock markets,
gold, bank savings and Post Office savings.
✓ The study concludes that investments by the investors towards various Investment
avenues were done with the expectation of capital appreciation and earnings comprising
both short term and long-term periods.
✓ It has been observed that the investors are investing in residential property along with
commercial property because it acts as extra income source. It is concluded that
investors still prefer banks over other kinds of fixed deposit.
63
BIBLIOGRAPHY
Association of Mutual Funds in India (amfiindia.com)
Mutual Fund India - SBI Mutual Fund, Mutual Fund Investment Company (sbimf.com)
Banu, A. A. A. S. (2021). A Study On The Sustainable Investment Funds With Special Reference To State Bank
Of India Esg Mutual Fund Schemes. Turkish Journal of Computer and Mathematics Education
(TURCOMAT), 12(6), 261-266.
Jacob, J., Gupta, N., & Gopalakrishnan, B. (2020). Mutual Fund Asset Allocation During COVID-19. Available
at SSRN 3705153.
Chahal, P. S. Study of Risk and Return regarding Some Selected Equity Mutual Fund Schemes (With Special
Reference to SBI Mutual Funds).
Sathish, P., & Srinivasan, K. S. (2016). Performance evaluation of selected open ended mutual fund schemes in
India: An empirical study. Global Management Review, 10(3).
Rohitraj, S., & Rao, D. H. (2015). Performance Evaluation of Open Ended Large Cap Equity Mutual Fund and
Mid & Small Cap Equity Mutual Fund Growth Scheme with Special Reference to SBI Mutual Fund and HDFC
Mutual Fund. International Journal of Management, 6(1), 661-669.
Gupta, V., & Goel, S. ANALYSIS OF MUTUAL FUNDS AND PORTFOLIO MANAGEMENT WITH
SPECIAL REFERENCE TO SBI FUND MANAGEMENT PVT LTD. The Research Repository, 70.
Bhavsar, A. C., & Damani, A. (2014). A Comparative Study of the Performance of Selected Mutual Fund Growth
Schemes from the Private Sector and Public Sector Schemes in India. Anvesha, 7(1).
James, T. (2013). Performance Evaluation of SBI Mutual Fund selected Schemes in relation to Risk-Return,
Rivalry's and Market Comparison. Advances in Management, 6(12), 48.
Dani, A. R., Ali, N., Simhadri, S., & Murthy, D. (2012). Portfolio selection using min-max
approach. Vikalpa, 37(2), 61-72.
Agrawal, D. (2011). Measuring performance of Indian mutual funds. Finance India, June.
ANNEXURE
Questionnaire
1. Name:
2. Gender:
a. Male
b. Female
c. Others
3. Age:
a. 20 to 35 years
b. 35 to 50 years
c. 50 to 65 years
d. 65 years and above
4. Occupation:
a. Student
b. Business
c. Job
d. Retired
e. Housewife
5. Income (Annually):
a. Less than 10 Lakhs
b. 10 Lakhs to 30 lakhs
c. 30 Lakhs to 50 Lakhs
d. 50 Lakhs to 70 lakhs
e. Above 70 Lakhs
6. What is your Investment Purpose?

a. Tax Savings d. Wealth Creation
b. Retirement e. Safety
c. Others
7. What percentage (%) of your income do you invest in SBI

schemes?
a. Upto 10% b. Upto 20% c. Upto 30% d. More than 30%
8. Which are your top 3 preferred investment instruments?

a. Fixed Deposits
b. mutual Funds
b. Govt. Securities
d. Equities
e. Others
9. Which type of mutual fund schemes do you prefer?

a. Equity b. Debt
c. Hybrid d. Solution Oriented
10. Level of risk associated with investments

Strongly Disagree Neutral Agree Strongly
disagree Agree
Fixed
Deposit
Mutual Fund
Government
Securities
Equity
Others
11. Level of return associated with investments

Strongly Disagree Neutral Agree Strongly
disagree Agree
Fixed
Deposit
Mutual Fund
Government
Securities
Equity
Others
12. Level of satisfaction with investment with investment objective

Highly Satisfied Neutrally Dissatisfied Dissatisfied
satisfied highly
Dividend
Capital gain
Tax benefit
Safety
other

Smeet Report

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Smeet Report

Uploaded by

Copyright:

Available Formats

Summer Internship Project Report

Under the Guidance of

In partial fulfilment of the requirement of the award of the degree of

I Sameet Dhedhi (Enrollment No. 217780592002) student of Faculty of

The Report is approved / Not approved

External Examiner’s Institute Name:

External Examiners Institute Code:

As a part of MBA Curriculum and in order to gain practical knowledge in the

1.2 A Mutual Fund's Operation

The best investors for mutual funds are those who: -

1.3 Why buy mutual funds?

1.4 Types of mutual fund schemes

Mutual fund scheme classification

1. Organisation Structure – Open ended, Close ended, Interval

2. Management of Portfolio – Actively or Passively

3. Investment Objective – Growth, Income, Liquidity

6. Exchange Traded Funds

Close ended Schemes

1.4.2 Classification of scheme by Portfolio Management

The Scheme Information document provides an upfront description of the investment

• Exchange Traded Funds (ETFs)

Funds: active vs. Passive

1.4.3 Classification by Investment Objectives

a. Capital Appreciation (Growth)

Liquid/overnight/mutual funds from the money market

The funds make investments in money market instruments

• Money Market Instruments are defined as commercial papers, commercial bills,

1.4.4 Classification by Investment Portfolio

• The scheme's investment objectives drive the composition of the portfolio.

1.5 Advantages of investing in mutual funds

2. Risk Diversification - Purchasing shares in a mutual fund is a simple way to diversify

1.6 SEBI Categorization of Mutual Fund Schemes

Mutual fund schemes are categorised as follows according to SEBI guidelines on

o A fund that has an equity scheme

Sector specific funds

Healthcare & Pharma Sector

Equity linked savings scheme (ELSS)

Short-Term Debt Funds

Fixed Maturity Plans (FMPs)

Capital Protection Oriented Funds

1.6.3 Hybrid funds

o Investments in hybrid funds include both debt and equity securities.

Multi Asset Funds

o The simultaneous purchase and sale of an asset is referred to as "arbitrage" in order

1.6.4 Other Funds

o A portfolio created by an index fund reflects a market index.

Market-Traded Funds (ETFs)

An exchange-traded fund (ETF) is a marketable security that follows an index, a

Exchange Traded Funds (ETFs)

Fund of Funds (FoF)

Gold Exchange Traded Funds (FoF)

Benefits of Gold ETFs

o Convenience - option to hold gold digitally rather than physically.

o By including one or more of the following in their portfolios, international funds

Investing in these funds carries certain risks, such as:

o Unfamiliar macroeconomic and political developments that are challenging to

1.7 History of Mutual Funds in India

Primary phase: 1964–1987

Second Phase: Entry of Public Sector Mutual Funds, 1987-1993

Third Phase: Entry of Private Sector Mutual Funds (1993–2003)

Fifth (current) phase – since May 2014

1.8 Net Asset Value (NAV)