PRC2

CHAPTER -I
PERFORMANCE EVALUATION OF HYBRID MUTUAL FUNDS

w.r.t
SBI MUTUAL FUND
INTRODUCTION
A mutual fund is a company that pools money from many investors and invests the money in
securities such as stocks, bonds, and short-term debt. In simple terms mutual fund is a trust
that pools the savings of a number of investors who share a common financial objective.
Mutual fund investors can be broadly classified into three categories. One, those who are
ready to take some risk and they invest in equity funds. Second, those who play it safe by
investing in debt funds that assures some returns while keeping money safe, and third, those
who want the best of both, by going for hybrid funds
Hybrid funds invest in both debt and equity instruments to achieve diversification and avoid
the concentration risk. A perfect blend of the two offers higher returns than a regular debt
fund while not being as risky as equity funds. The choice of a hybrid fund depends on your
risk preferences and investment objective. Hybrid funds are considered a safer bet than equity
funds. These provide higher returns than genuine debt funds and are popular among
conservative investors. Budding investors who are willing to get exposure to equity markets
may invest in hybrid funds. The presence of equity components in the portfolio offers the
potential to earn higher returns. At the same time, the debt component of the fund provides a
cushion against extreme market fluctuations.
In this way, you receive stable returns instead of a total burnout that may happen in case of
pure equity funds. For the less conservative category of investors, the dynamic asset
allocation feature of some hybrid funds becomes a great way to enjoy the best out of market
fluctuations.
NEED OF THE STUDY
1. Explore Multiple Asset Classes - The most prominent advantage of a hybrid fund
is that it allows you to open one account to invest in multiple asset classes, such as
equity, debt, commodities, and even derivatives.
2. Reduce Risks - Mutual fund houses design hybrid funds such that they deliver
decent returns without much risk. They achieve this through portfolio
diversification.
3. Diversification - Hybrid funds divide the AUM into sub-asset classes within the
master asset class. For example, an aggressive fund with 65% exposure to equity
may invest in large, mid, and small-cap stocks. Similarly, a conservative fund may
invest in corporate and government bonds.
4. Suits All Investors - Hybrid funds suit both aggressive and conservative investors.
People looking for stability and higher returns than FD can also invest in these
funds.
5. Fund Manager's Expertise - Hybrid fund managers restructure portfolios
depending on the market structure. If the equity market displays weakness, fund
managers shift the investment into debt and vice versa. Since the fund manager
does the portfolio rebalancing, you don't have to do it yourself.

SCOPE OF THE STUDY
DIVERSIFICATION: Hybrid funds provide investors with a diversified portfolio by
including a mix of equities and fixed-income securities. This diversification helps spread risk
and reduce exposure to a single asset class, making them suitable for investors with varying
risk tolerances.
RISK-RETURN PROFILES: Hybrid funds cater to a broad spectrum of investors with
different risk appetites. The scope of these funds ranges from conservative to aggressive,
offering options for both risk-averse and risk-seeking individuals. This allows investors to
choose a fund that aligns with their financial goals and tolerance for risk.
ASSET ALLOCATION STRATEGIES: The scope of hybrid mutual funds includes a wide
range of asset allocation strategies. Fund managers can adjust the allocation between equities
and fixed income based on market conditions, economic outlook, and the fund's investment
objectives. This adaptability allows for dynamic portfolio management.
GLOBAL REACH: Some hybrid funds have a global or international focus, allowing
investors to gain exposure to a broader range of markets and asset classes.
PROFESSIONAL MANAGEMENT: Investors in hybrid mutual funds benefit from
professional portfolio management. Fund managers conduct research, monitor market
conditions, and make investment decisions on behalf of investors, potentially saving them
time and effort.

OBJECTIVES OF THE STUDY
DIVERSIFICATION: Hybrid funds seek to diversify their holdings across different asset
classes, typically equities (stocks) and fixed-income securities (bonds and/or money market
instruments).
RISK MANAGEMENT: One of the key objectives of hybrid funds is to manage risk
effectively. This risk management approach is especially attractive to investors with moderate
risk tolerance.
CAPITAL APPRECIATION: Hybrid funds may have an objective of capital appreciation ,
Fund managers actively select equities that have growth potential to generate returns over
time.
ASSET ALLOCATION FLEXIBILITY: The asset allocation strategy of hybrid funds can
vary based on market conditions and the fund's stated objectives.
LONG-TERM WEALTH PRESERVATION: Hybrid funds can be used as a means of
preserving and growing wealth over the long term..
RISK-ADJUSTED RETURNS: Hybrid funds aim to provide risk-adjusted returns ,by
combining different asset classes, they seek to offer a reasonable balance between risk and
reward.
Tax Efficiency: Depending on the fund's asset allocation and investment strategy, hybrid
funds may be structured to optimize tax efficiency, potentially reducing the tax impact on
returns for investors.

LIQUIDITY: Like other mutual funds, hybrid funds offer liquidity, allowing investors to buy
or sell shares on any business day.
METHODOLOGY OF THE STUDY:
Methodology is a systematic procedure of collecting information. Research Methodology is a
way to systematically solve the research problem. It may be understood of studying how
research is done scientifically.
COLLECTION OF DATA:
The collection of data is purely about the subject and extracts, the information related to the
subject. Two types of information are taken.
PRIMARY DATA:
Primary data is the data that is originally collected by the research through survey and
personal interview. Making personal investigations helped me in collecting primary data.
Having discussing with finance department helped me in getting further insight in the annual
report. Observation of SENSEX proceeding with leading mutual fund companies.
SECONDARY DATA:
The data that has been collected by some other source is readily available and is termed as
Secondary data. Common sources of secondary data for social science include censuses,
organizational records and data collected through qualitative methodologies or qualitative
research. The source of data has been collected through by various websites and fact sheets of
respected companies & websites like:
www.mutualfundindia.com
www.moneycontrol.com
www.amfilndia.com
www.sbimf.com
LIMITATIONS OF THE STUDY
LIMITED CUSTOMIZATION: Hybrid funds are managed by professional fund managers
who make decisions about asset allocation. Investors have limited control over the allocation
of their investments and cannot customize the portfolio to their specific risk tolerance or
financial goals.
TAX EFFICIENCY: The combination of different asset classes in hybrid funds can make
them less tax-efficient compared to investing directly in individual stocks and bonds. Capital
gains and dividend distributions in the fund may lead to tax liabilities for investors.
DIVERSIFICATION LIMITATIONS: They are still limited by the assets they hold. If the
fund manager chooses to invest, it can lead to concentration risk, reducing the overall
diversification benefits.
LACK OF CONTROL: investors who prefer more control over their investment decisions
may find hybrid funds limiting. They have no say in the individual securities held within the
fund's portfolio or the timing of buy and sell decisions.
COMPLEXITY: Hybrid funds can be complex for investors who are not familiar with asset
allocation strategies.
INTEREST RATE RISK: Hybrid funds that include fixed-income securities are exposed to
interest rate risk. When interest rates rise, the value of these bonds may decrease, impacting
the fund's performance.

LACK OF GUARANTEED RETURNS: hybrid funds do not guarantee returns or capital
protection. Investors should be prepared for fluctuations in the fund's value and the
possibility of losing some or all of their invested capital.
FRAMEWORK OF THE STUDY
CHAPTER I
This chapter includes introduction, need and scope, objectives, methodology,
limitations.
CHAPTER II
This chapter includes industry profile & company profile
CHAPTER III
This chapter includes literature review & theoretical framework of mutual
funds.
CHAPTER IV
This chapter includes data analysis and interpretation.
CHAPTER V
This chapter includes summary, findings and suggestions.
CHAPTER -2
INDUSTRY PROFILE
1. INTRODUCTION TO THE INDUSTRY
A mutual fund is a professionally-managed form of collective investments that pools money
from many investors and invests it in stocks, bonds, short-term money market instruments,
and/or other securities. In a mutual fund, the fund manager, who is also known as the
portfolio manager, trades the fund's underlying securities, realizing capital gains or losses,
and collects the dividend or interest income. The investment proceeds are then passed along
to the individual investors. The value of a share of the mutual fund, known as the net asset
value per share (NAV) is calculated daily based on the total value of the fund divided by
the number of shares currently issued and outstanding. Mutual fund is a trust that pools the
savings of a number of investors who share a common financial goal. This pool of money is
invested in accordance with a stated objective.
The joint ownership of the fund is thus “Mutual”, i.e., the fund belongs to all investors. The
money thus collected is then invested in capital market instruments such as shares, debentures
and other securities. The income earned through these investments and the capital
appreciations realized are shared by its unit holders in proportion the number of units
owned by them. Thus, a Mutual Fund is the most suitable investment for the common man as
it offers an opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. A Mutual Fund is an investment tool that allows small investors
access to a well-diversified portfolio of equities, bonds and other securities. Each shareholder
participates in the gain or loss of the fund. Units are issued and can be redeemed as needed.
The fund’s Net Asset value (NAV) is determined each day. Investments in securities are
spread across a wide cross-section of industries and sectors and thus the risk is reduced.
Diversification reduces the risk because all stocks may not move in the same direction in the
same proportion at the same time. Mutual fund issues units to the investors in accordance
with quantum of money invested by them. Investors of mutual funds are known as unit
holders. When an investor subscribes for the units of a mutual fund, he becomes part owner
of the assets of the fund in the same proportion as his contribution amount put up with the
corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund
shareholder or a unit holder. Any change in the value of the investments made into capital
market instruments (such as shares, debentures etc) is reflected in the Net Asset Value (NAV)
of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of
its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's
assets by the total number of units issued to the investors.
GROWTH OF MUTUAL FUNDS IN INDIA
The Indian Mutual Fund has passed through three phases. The first phase was between
1964and 1987 and the only player was the Unit Trust of India, which had a total asset of Rs.
6,700crores at the end of 1988. The second phase is between 1987 and 1993 during which
period 8Funds were established (6 by banks and one each by LIC and GIC). The total assets
undermanagement had grown to 61,028 crores at the end of 1994 and the number of schemes
was167.The third phase began with the entry of private and foreign sectors in the Mutual
Fund industry in 1993. Kothari Pioneer Mutual Fund was the first Fund to be established by
the private sector in association with a foreign Fund. As at the end of financial year 2000(31st
march) 32 Funds were functioning with Rs. 1, 13,005 crores as total assets under
management. As on august end 2000, there were 33 Funds with 391 schemes and assets
under management with Rs 1, 02,849 crores. The securities and Exchange Board of India
(SEBI) came out with comprehensive regulation in 1993 which defined the structure of
Mutual Fund and Asset Management Companies for the first time. Several private sectors
Mutual Funds were launched in 1993 and1994. The share of the private players has risen
rapidly since then. Currently there are 34 Mutual Fund organizations in India managing
1,02,000 crores.
HISTORY OF MUTUAL FUND INDUSTRY IN INDIA
The origin of Mutual Fund industry in India is with the introduction of the concept of mutual
fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year
1987 when non-UTI players entered the industry. In the past decade, Indian Mutual Fund
industry had seen dramatic improvements, both quality wise as well as quantity wise. Before,
the Monopoly of the Market had seen an ending phase; the Assets Under Management
(AUM) was Rs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470
bn in March 1993 and till April 2004; it reached the height of 1,540 inputting the AUM of the
Indian Mutual Funds Industry into comparison, the total of it is less than the deposits of SBI
alone, constitute less than 11% of the total deposits held by the Indian banking industry. The
main reason of its poor growth is that the Mutual Fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectual with the concept. Hence,
it is the prime responsibility of all mutual fund companies, to market the product correctly
abreast of selling. The Mutual Fund industry can be broadly put into four phases according to
the development of the sector. Each phase is briefly described as under.
First Phase - 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was setup by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6, 700 crores of assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by Can bank Mutual
Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund
(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989and
GIC in 1990. The end of 1993 marked Rs.47, 004 as assets under management.
Third Phase - 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July1993. The
1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI(Mutual Fund) Regulations 1996. The number of mutual fund houses went on
increasing, with many foreign mutual funds setting up funds in India and also the industry has
witnessed several mergers and acquisitions. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,
541 crores of assets under management was way ahead of other mutual funds.
Fourth Phase - since February 2003
This phase brought bitter experience for UTI. It was bifurcated into two separate entities. One
is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835crores (as on
January 2003). The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come under
the purview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd,
sponsored by SBI, PNB, BOB and LIC. It is registered with SEBI and functions under the
Mutual Fund Regulations. With the bifurcation of the erstwhile UTI which had in March2000
more than Rs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund Regulations, and with recent mergers taking place
among different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September, 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421 schemes.
Currently, the mutual fund industry is seeing renewed interest from investors. With easy
access to the financial markets, many new investors have invested in mutual funds. This is
clearly visible as the total assets under management of the mutual fund industry are Rs 40.38
trillion in the year 2022, as per the Association of Mutual Funds in India (AMFI). Moreover,
the introduction of a Systematic Investment Plan (SIP) has made investing more convenient
for retail investors.
INDIA MUTUAL FUND MARKET ANALYSIS
As a result of COVID-19-induced lockdowns, the mutual fund industry's SIP collections fell
by 4% to INR 96,000 crore in FY 2020-2021. This resulted in income uncertainty. Many
investors chose to halt their SIPs as a result of the pandemic. From a peak of Rs 8,641 crore,
the contribution fell for 11 months in a row before breaking through to new highs.
The average assets under management (AAUM) of the Indian Mutual Fund Industry for
February 2022 stood at INR 38,56,140 crore. The industry’s AUM had crossed the milestone
of INR 10 trillion (INR 10 lakh crore) for the first time in May 2014. In around three years,
the AUM increased more than twofold, and in August 2017, it crossed INR 20 trillion (INR
20 lakh crore) for the first time. The AUM size crossed INR 30 trillion (INR 30 lakh crore)
for the first time in November 2020. The industry's AUM was INR 37.56 trillion (INR 37.56
lakh crore) as of February 28, 2022. The rising digital penetration, smart cities, and increased
data speeds also facilitate the drift of asset shares toward smaller cities and towns. The
increased retail contribution through SIPs shows the level of digital penetration in India.The
total number of accounts (or folios, as per mutual fund parlance) as of February 28, 2022,
was 12.61 crore (126.1 million units).
INDIA MUTUAL FUND INDUSTRY SEGMENTATION
The report provides an understanding of the Indian mutual fund industry, regulatory
environment, MF companies, and their business models. The report also provides a detailed
market segmentation with the product types, current market trends, changes in market
dynamics, and growth opportunities. Furthermore, an in-depth analysis of the market size and
forecasts for the various segments are presented.
BY ASSET CLASS/SCHEME TYPE –
 Debt-oriented Schemes
 Equity-oriented Schemes
 Money Market
 ETFS AND FOFS
BY SOURCE OF FUNDS -
 Banks
 Retail Investors
 Indian Institutional Investors
 FIIs and FPIs
 Other Sources
INDIA MUTUAL FUND INDUSTRY OVERVIEW
The report includes an overview of MF companies operating across India and a few other
countries. It presents detailed profiles of a few major companies, covering product offerings,
the regulations governing them, their headquarters, and their financial performance.
India Mutual Fund Market Leaders
1. HDFC MUTUAL FUND
2. ICICI MUTUAL FUND
3. SBI MUTUAL FUND
4. ADITYA BIRLA SUN LIFE MUTUAL FUND
5. UTI MUTUAL FUND

COMPANY PROFILE
CORPORATE PROFILE
Our Identity
With 35 years of rich experience in fund management, we at SBI Funds Management Ltd.
(SBIFML) bring forward our expertise by consistently delivering value to our investors. We have a
strong and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. We
are a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund
management companies. A shareholder agreement in this regard has been entered on April 13, 2011
between SBI & AMUNDI Asset Management. Accordingly, SBI currently holds 63% stake in
SBIFML and the 37% stake is held by AMUNDI Asset Management through a wholly owned
subsidiary, Amundi India Holding. Initially this 37% holding was held by Societe Generale Asset
Management S.A. (“SGAM”), a subsidiary of Societe Generale S.A (“SG”) which was transferred
to Amundi in June 2011 with due approval of SEBI pursuant to SEBI (Mutual Funds) Regulations,
1996. AMUNDI Asset Management shall provide strategic support to the Company. SBI &
AMUNDI Asset Management shall jointly develop the Company as an asset management company
of international repute by adopting global best practices and maintaining international standards.
SBI Mutual Fund is an Asset Management Company introduced by State Bank of
India (SBI) and incorporated in 1987 with its corporate head office located in Mumbai, India.
SBIFMPL is a joint venture between the State Bank of India, an Indian public sector bank,
and Amundi, a European asset management company. A shareholder agreement in this regard
has been entered on April 13, 2011, between SBI & AMUNDI Asset Management.
Accordingly, SBI currently holds 63% stake in SBIFMPL and the 37% stake is held by
AMUNDI Asset Management through a wholly owned subsidiary, Amundi India Holding.
SBI & AMUNDI Asset Management shall jointly develop the company as an asset
management company of international repute by adopting global best practices and
maintaining international standards.
HISTORY
The mutual fund industry in India originally began in 1963 with the Unit Trust of India (UTI)
as a Government of India and the Reserve Bank of India initiative. Launched in 1987, SBI
Mutual Fund became the first non-UTI mutual fund in India. In July 2004, State Bank of
India decided to divest 37 per cent of its holding in its mutual fund arm, SBI Funds
Management Pvt Ltd, to Societe Generale Asset Management, for an amount in excess of $35
million.
Post-divestment, State Bank of India's stake in the mutual fund arm came down to 67%. In
May 2011, Amundi picked up 37% stake in SBI Funds Management, that was held by
Societe Generale Asset Management, as part of a global move to merge its asset management
business with Crédit Agricole.
SBI Funds Management Private Limited (SBIFMPL) has been appointed as the Asset
Management Company of the SBI Mutual Fund. SBIFMPL is a joint venture between
the State Bank of India, an Indian public sector bank, and Amundi, a European asset
management company.
As of September, 2019, the fund house claims to serve 5,809,315 unique investors through
approximately 212 branches PAN India. As of September 2021, the total AUM stands at
Rs.579318.29 crores
OUR VISION
"To be the most trusted and respected Asset Manager."
OUR MISSION
Ethical, Responsive and Innovation Partner in Investment Solutions.
OBJECTIVE AND FUNCTIONING
objective of SBI Mutual Funds is to bring excellence from the beginning of the product
development till the time investors deposit money. It designed to outshine the industry
benchmarks using well-researched investment in varied Indian equities. Active management
style has been adopted based on fundamental analysis, after which a portfolio would be
constructed. As a stepping stone for the growth potential of Indian equities, SBI mutual funds
have blended, large-cap, mid-cap, or distinct sector oriented features.
OUR VALUES
At SBI Mutual Fund, we believe in ‘Growth through Innovation,’ by leveraging group
synergy and latest technology to enhance business effectiveness. Working at SBI Mutual
Fund offers unique opportunities for personal and professional development, along with
several benefits and a work culture that embraces diversity. This helps our employees to
shape their own career growth and path. We work together to uphold values that constantly
drive us to keep our customers and their dreams and aspirations ahead of everything else,
while still driving sustainable business growth.
 Integrity
On confirming, you will be redirected to complete the One-Time Mandate
registration process.
 Teamwork
Individuals cooperate and work hand-in-hand to achieve common organisational
goals.
 Purpose and Objectivity
Stay customer centric, creative and clear.
 Trustworthiness
Create a deep sense of trusteeship for winning the confidence and respect of
everyone involved.
 Courage
Take the right decision without any fear or favour, in the best interest of all
stakeholders.
 Customer Friendly
Put the customer first. Understand the needs with full empathy and provide
solutions that lead to customer delight.
 Transparency
Create a culture of openness internally, to communicate disclosures, policies and
standards to the external world.

 Commitment
Remain steadfast and true to your principals and goals, irrespective of situations.
Be passionate about creating value. Make commitment a way of life.
OUR SERVICES
Investors are our priority. Our mission has been to establish Mutual Funds as a viable
investment option to the masses in the country. Working towards it, we developed innovative,
need-specific products and educated the investors about the added benefits of investing in
capital markets via Mutual Funds. Today, we have been actively managing our investors'
assets not only through our investment expertise in domestic mutual funds, but also offshore
funds, Alternate Investment Funds and portfolio management advisory services for
institutional investors.
OUR PRODUCTS
Equity
The company offers a wide array of equity funds ranging from diversified to thematic and
sector-based offerings.
Debt
The company has a robust product range matching all maturities for cash management. The
focus of investment philosophy is primarily on the product's liquidity as well as on the quality
of the securities held in the portfolio.
Hybrid
Hybrid Schemes invest in a mixture of multiple asset classes like debt, equity, and gold in
different proportions based on the investment objective. The company has a suite of products
across the risk-spectrum including a multi-asset offering that has gold in the portfolio into the
traditional mix of equity and debt.
KEY MILESTONES
 1987 – Establishment of SBI Mutual Fund
 1991 – Launch of SBI Magnum Equity Fund
 1999 – Launch of sector funds, India's first contra fund: SBI Contra Fund
 2001 – Involvement in Ketan Parekh Scam SBI Mutual Fund, according to the
CBI charge-sheet, purchased 22 lakh shares at Rs 165 each in February 2000
through off-market deals from Ketan Parekh-controlled firms.
 2004 – Joint Venture with Societe General Asset Management
 2006 – Became the first bank-sponsored fund to launch an offshore fund – SBI
Resurgent India Opportunities Fund
 2011 – Stake Transfer from SGAM to Amundi Asset Management
 2013 – Acquisition of Daiwa Mutual Fund, part of the Tokyo-based Daiwa
Securities Group
 2013 – Launch of SBI Fund Guru, an investor education initiative
 2015 – Employees' Provident Fund Organisation decided to invest in the equity
market for the first time by investing Rs. 5,000 crore in the Nifty and Sensex
ETFs (Exchange Traded Fund) of SBI Mutual Fund
 2018 – First AMC in India to launch an Environment, Social and Governance
(ESG) fund viz Magnum Equity ESG Fund
 2018 – Signatory to the United Nations Principles for Responsible Investment
(UN-PRI)
PEOPLE /MEMBERS OF SBI MUTUAL FUNDS
MANAGEMENT TEAM-
Managing Director & Chief Executive Officer - Mr. Shamsher Singh
Deputy CEO - Mr. Denys de Campigneulles
Deputy Managing Director & Chief Business Officer - Mr. D.P. Singh
Chief of Strategy, Digital & Technology - Mr. R. S. Srinivas Jain
BOARD OF DIRECTORS – Trustee company
Independent Directors- Mr. Dhruv Prakash
Mr. Amarjit Chopra
Mr. Sunil Gulati
Dr. Archana Hingorani
Associate Directors - Mr. P.B. Santhanakrishnan
Mr. Achal Kumar Gupta
BOARD OF DIRECTORS-AMC
Chairman - Mr. Dinesh Kumar Khara
Associate Director- Mr. Fathi Jerfel

Mr. Swaminathan Janakiraman
Managing Director & Chief Executive Officer -Mr. Shamsher Singh
Deputy CEO- Mr. Denys de Campigneulles
Independent Director- Mr. Moiz Miyajiwala
Mr. Shekhar Bhatnagar
Mrs. Sudha Krishnan
Mr. C. N. Ram
Dr. T. T. Ram Mohan
INVESTMENT TEAM
CIO - Fixed Income- Mr. Rajeev Radhakrishnan, CFA
Fund Manager - Mr. Dinesh Ahuja
Mr. R. Arun
Credit Analyst, Fund Manager - Ms. Mansi Sajeja
Credit Analyst Mr. Lokesh Mallya, CFA
Mr. Mohit Jain, CFA
Fixed Income Dealer & Fund Manager -Ms. Ranjana Gupta
COMPETITORS OF SBI MUTUAL FUNDS:
Some of the major competitors for SBI Mutual Fund in the mutual fund sector are
 Axis Mutual Fund,
 Birla Sun Life Mutual Fund,

 HDFC Mutual Fund,
 ICICI Prudential Mutual Fund,
 Kotak Mutual Fund,
 Nippon India Mutual Fund and UTI Mutual Fund.
AWARD AND RECOGNITION:
The Fund has won several accolades for investment performance as mentioned below:
• Asia's most trusted Mutual Fund brand as per brand research report 2017.
• SBIFM has also won The Best Long Term Asset Management House by India Today
Money, 2017.
• For continuous 2 years 2016 and 2017, SBI Blue Chip Fund is the winner in the Large Cap
Equity Category by MORNINGSTAR.
• Best Website for User Interface by FINTECH AWARDS, 2017.
• SBI EM has won a Fund Family Award for the mixed asset classes for year 2016 & 2017 by
Thomson Reuters Lipper Fund Award.
Types of State Bank Mutual Funds
Given below are the six different types of mutual funds options offered by State bank of
India:
1. SBI Equity Funds
2. SBI Exchange Traded Funds
3. SBI Hybrid Funds
4. SBI Liquid Funds

5. SBI Debt Funds
6. SBI Tax Savings Funds
How Can You Invest in SBI Mutual Funds?
Investing in SBI Mutual Fund is a smart way to preserve wealth for your financial goals and
generate returns over time. Follow the steps below to invest in SBI Mutual Funds:
Step 1: Visit the official website of SBI Mutual Fund.
Step 2: Check the different types of mutual fund schemes available on the website.
Step 3: Once you have decided which scheme you would like to invest in, click on the
‘Invest Now’ option.
Step 4: You will be taken to a new page where you either can create a new user account and
sign up or you can simply enter your PAN and captcha and start investing without even
logging in.
Step 5: Complete your KYC process and register your email address. Your username and
password will be generated.
Step 6: Pay the initial amount or lump sum amount based on your requirements or your
budgetary constraints.
Step 7: Once done, you can track your investment portfolio.
CHAPTER -3
CONCEPTUAL REVIEW
INTRODUCTION OF MUTUAL FUNDS
Mutual funds are an investment option that offers easy access, liquidity, straightforward exits,
and remove investment management risk from the individual investor as professional fund
managers manage them. Let’s understand mutual funds in detail.
A mutual fund is an investment vehicle that pools funds from investors and invests in
equities, bonds, government securities, gold, and other assets. Companies that qualify to set
up mutual funds, create Asset Management Companies (AMCs) or Fund Houses, which pool
in the money from investors, market mutual funds, manage investments, and enable investor
transactions.
Mutual funds are managed by sound financial professionals known as fund managers, who
have the expertise in analysing and managing investments. The funds collected from
investors in mutual funds are invested by the fund managers in different financial assets such
as stocks, bonds, and other assets, as defined by the fund’s investment objective. Where and
when to invest are some of the things taken care of by the fund managers, amongst many
other responsibilities.
For the fund’s management, the AMC charges a fee to the investor known as the expense
ratio. It is not a fixed fee and varies from one mutual fund to another. SEBI has defined the
maximum limit of the expense ratio that can be charged on the basis of the total assets of the
fund.
In India, the capital markets regulator SEBI (Securities and Exchange Board of India) has
encouraged the mutual fund industry by creating a system that works for the benefit of all
stakeholders, including investors and mutual fund sponsors. Regulations are passed from time
to time which improves functioning and helps attract investments and generate growth.
TYPES OF MUTUAL FUNDS
There are multiple ways in which mutual funds can be categorized, for example, the way they
are structured, the kind of securities they hold, their investment strategies, etc. The Securities
and Exchange Board of India (SEBI) has classified mutual funds based on where they invest,
some of which we have tried to capture below. What we provide you with here is not an
extensively categorized list of mutual funds, but rather a few popular ones to get you started.
TYPES ON THE BASIS OF THE STRUCTURE:
 Open-ended funds: They are mutual funds that allow you to invest and redeem
investments at any time, i.e. they are perpetual in nature. They are liquid in nature and
don’t come with a specific investment period.
 Close-ended funds: These are the schemes have a fixed maturity date. You can only
invest at the time of the new fund offer and redemption can only be done on maturity.
You cannot purchase the units of a close-ended mutual fund whenever you please.
TYPES ON THE BASIS OF ASSET CLASSES:
1.Equity Mutual Funds :These funds invest at least 65% of their assets in stocks of
companies listed on the stock exchange. They are more suitable as long-term investments (>
5 years) as stocks can be volatile in the short term. They have the potential to offer higher
returns but also come with high risk. Here are a few types of equity mutual funds–
 Large-cap Funds invest at least 80% of their portfolio in stocks of large-cap
companies i.e. the companies that are ranked in the first 100 in the list of stocks
prepared by AMFI depending on market capitalization.
[Association of Mutual Funds of India (AMFI) is the industry body representing
mutual funds and is tasked with protecting and promoting the interests of mutual
funds as well as unitholders.]
 Mid-cap Funds invest at least 65% of their portfolio in stocks of mid-cap companies
i.e. the companies that are ranked between the 101st and 250th based on their market
capitalization
 Small-cap Funds invest at least 65% of their portfolio in stocks of small-cap
companies i.e. the companies that are ranked 251st and above based on their market
capitalization
 ELSS (Equity Linked Savings Scheme) is a tax-saving equity mutual fund. It
invests at least 80% of its portfolio in stocks. The investment made under ELSS is
eligible for tax deduction under section 80C, of the Income Tax Act, 1961 up to Rs 1.5
Lakh per annum. ELSS also comes with a lock-in of 3 years from the date of
investment.
 Multi-cap Funds invest in stocks of any companies across all market capitalization,
namely, large-cap, mid-cap, and small-cap stocks. There is no investment limit
defined by SEBI at the market capitalization level.
 International Funds are schemes that invest equity of companies listed outside India.
The objective of these funds is to provide an element of geographical diversification
to investors and counter the volatility of Indian markets as foreign markets do not
necessarily move in sync with Indian markets.
 Index Funds: An Index Fund is a type of mutual fund that simply impersonates an
index. So when you invest in index funds, fund managers deploy your money in the
same companies and in the same proportion as the index they are tracking. For
instance, an Index Fund tracking SENSEX will buy all the 30 stocks that are part of
SENSEX, and it will do so in the same proportion. Whenever a stock is removed from
SENSEX, the index fund will also remove it from its portfolio, And if some new
stocks are added to the SENSEX, then the fund will also replicate the changes in its
portfolio.
2.Debt Mutual Funds primarily invest in fixed-income instruments like Government
securities, corporate bonds, and other debt instruments. They are not affected by stock market
volatility and hence, can offer more stable returns compared to equity mutual funds. The
types of debt mutual funds are differentiated on the basis of the maturity period of the
securities they hold. Let’s look at a few types of debt mutual funds- is
 Liquid Funds invest in debt securities and higher-rated securities which have a
maturity period of fewer than 91 days. This makes them relatively less risky than
most other categories because a lower maturity mitigates any interest rate volatility
(which is the risk of loss resulting from a change in interest rates). Liquid funds are a
good avenue for parking emergency funds alternative to bank savings accounts.
 Overnight Funds invest in securities with a maturity of one day. These funds come
with low risks safety again because of shorter maturity periods, the interest rate risk is
on the lower side. These are commonly used by corporates to park their funds.
 Money Market Funds invest mainly in government securities (known as treasury
bills) and similar instruments, which are short-term with maturity periods of less than
one year. These funds are suitable for investors looking for stable and non-volatile
funds as interest risk is less.
 Banking & PSU Funds invest at least 80% of their investment in debt securities of
banks, public sector undertakings, municipal bonds, public financial institutions, etc.
They can be better suited for investors looking for short to medium-term investment
tenure.
 Glit Funds invest a minimum of 80% in Government securities across maturity
periods. The nature of investment makes it more suitable for a long-term investment
as Government securities can be volatile in the short term.
 Short Duration Funds invest in debt and other money market securities such that the
average maturity of the portfolio is between 1-3 years. They are more suited for
investors looking at an investment time frame of 1-3 years and moderate risk appetite.
[Macaulay Duration represents the time required to generate returns equal to your
investment in bonds]
3.Hybrid Mutual Funds invest in both equity and debt in varying proportions depending on
the investment objective of the fund. Thus, hybrid funds give you diversified exposure to
various asset classes. Hybrid funds are categorized on the basis of their allocation to equity
and debt. Let us look at a few categories-

 Aggressive Hybrid Funds are a type of hybrid fund that can invest 65-80% of their
portfolio in equity and 20-35% in debt instruments. As a result of a greater allocation
to equity, they prove to be riskier than the balanced hybrid category.
 Conservative Hybrid Funds invest at least 75-90% of their portfolio in debt
securities and the remaining 10-25% in equity securities. Because of this allocation,
they may prove to be relatively less risky than, say, an aggressive hybrid fund.
 Balanced Advantage Funds, also known as dynamic asset allocation funds keep their
investments in equity and debt dynamic in nature. As per the market movement, their
allocation to both asset classes keeps changing so as to maximize the gains and
minimize the risks.
WAYS/MODES OF MUTUAL FUND INVESTMENT
An investor can invest in mutual funds in the following ways:
1. Lumpsum – When you want to invest a significant amount in a mutual fund in one
go. For example, if you had a sum of Rs 1 lakh to invest then you could go in for
lumpsum investment and invest the entire amount of Rs 1.0 lakh at one go in a
mutual fund of your choice. The units allotted to you will depend on the NAV of
that fund on that particular day. If the NAV is Rs 1000, you will end up getting 100
units of the mutual fund.
2. SIP – You also have the option to invest small amounts periodically. In the above
example, say, you don’t have Rs 1 Lakh but can commit to an investment of Rs
10,000 per month for 10 months, and you can align your investments with your
cash flows. This way of investing is known as Systematic Investment Plan (SIP).
SIP encourages regular investment of fixed amounts bi-monthly, monthly, quarterly
and so on, depending on your need and the options available with the mutual fund.
This method of investing inculcates a discipline of investment and also eliminates any need to
look for the right time to invest. Many investors try to time the market which generally
requires considerable time and expertise. What a SIP does instead is to average out your costs
and the investor doesn’t need to time the market. When the NAV is low, it gets you higher
units and vice versa. SIPs, when done regularly over the long term, can help you build a more
considerable mutual fund investment corpus.
The minimum amount for lump sum and SIP investments are defined by mutual funds and
can vary but can start at as low as Rs 500.
WAYS TO INVEST IN MUTUAL FUND:
Depending on your resources, you have several options to start investing in mutual funds.
Following are some ways to invest in mutual funds
 DIRECT NVESTMENT
 ONLINE MUTUAL FUND INVESTMENT PLATFORM
 USING A DEMAT ACCOUNT
 THROUGH KARVY AND CAMS
 MUTUAL FUND AGENTS
How Are Profits Generated in Mutual Funds?

Investors earn profit from mutual funds either through capital gains or dividend income. Let’s
get some clarity on what they are and how they differ.
Capital gain is the profit generated from selling an asset at a higher value than its cost. For
instance, if you hold units of a mutual fund scheme that you purchased when the NAV was
₹140, you will generate a capital gain when the price moves above ₹140, and you sell the
units.
However, an important thing to note is that capital gains are only realized when the mutual
fund units are redeemed. Hence, it’s only at the time of redemption that the mutual fund
capital gains tax accrues. The tax on mutual fund redemption, therefore, will need to be paid
when the income tax returns are filed in the coming financial year.
Dividends are another way that mutual fund investors can earn income from a fund. The
mutual fund declares dividends based on the distributable surplus it has accumulated.
Dividends are distributed at the fund’s discretion and become taxable as soon as they’re paid
out to the investors. Investors pay tax on dividends when they receive the dividend from their
mutual funds. The old and new mutual fund dividend tax rules have been discussed in the
following section.
Taxation on Dividends
The Finance Act, 2020 introduced an amendment withdrawing Dividend Distribution Tax.
Dividend income from mutual funds was tax-free for investors before March 31, 2020. The
fund houses that declared dividends deducted a Dividend Distribution Tax (DDT) before
paying it to the mutual fund investors. Now, the entire dividend income is taxable in the
hands of the investor as per the income tax slab under the head “income from other sources.”
TDS (tax deducted at source) is also applicable to the dividend distributed by the mutual fund
scheme. As per the changed rules now, when the mutual fund distributes the dividend to its
investors, the AMC must deduct 10% TDS u/s 194K if the total dividend paid to an investor
exceeds ₹5,000 during a financial year. When you pay your taxes, you can claim the 10%
TDS that has already been deducted by the AMC and only pay the balance.
You can use TDS Calculator to calculate the tax deducted at source on dividend income
earned through mutual funds. Using the TDS calculator, ensures you avoid underpayment or
overpayment of taxes while ensuring compliance with the income tax regulations.
Taxation on Capital Gain
The tax on mutual funds capital gains depends on the types of mutual fund scheme you are
invested in and how long have you held the units of the scheme for. Based on this, let us
understand the two factors in detail.
First, let’s talk about the terms long-term capital gains (LTCG) and short-term capital gains
(STCG) and what they mean. LTCG is the capital gain generated from an asset that an
investor holds for a long duration (i.e., a long holding period), while STCG is the capital gain
generated on assets held for a relatively shorter duration.
The terms long and short duration differ for equity and debt schemes for tax purposes. For
instance, for capital gain on mutual funds to be treated as long-term, your holding period
must be at least 12 months for equity-oriented schemes, but 36 months for debt-oriented
schemes. The following table gives an overview of the holding periods required for capital
gains to be treated as long-term and short-term.

STC
LTCG
FU G
HOL
ND HOL
DING
TYP DING
PERI
E PERI
OD
OD
EQ
Less More
UIT
than than
Y
12 12
FU
mont month
ND
hs s
S
DE Less More
BT than than
FU 36 36
ND mont month
S hs s
HY
Less More
BRI
than than
D
12 12
FU
mont month
ND
hs s
S
HYBRID MUTUAL FUNDS:
INTRODUCTION
If you are a mutual fund investor looking for a dynamic portfolio, then hybrid mutual funds
are right for you, these funds give you the best of both worlds-equity and debt. Hybrid mutual
funds help you meet your financial goals at a comparatively balanced risk and profits ratio.
Hybrid mutual funds are types of mutual funds that invest in more than one asset class. Most
often, they are a combination of Equity and Debt assets, and sometimes they also include
Gold or even Real estate.
The key philosophies behind hybrid funds are – asset allocation, correlation, and
diversification. Asset Allocation is the process of deciding how to distribute wealth among
various asset classes, and correlation is the co-movement of returns of the assets, and
diversification is to have more than one asset in a portfolio.Since the sources of risk and
factors affecting returns are similar for the investment options within an asset class, they tend
to exhibit a high level of correlation in returns, whereas investment options across asset
classes show little correlation in returns.
Portfolio risk can be reduced by combining assets that have a low correlation. Hybrid mutual
fund schemes diversify the investment within multiple asset classes to try and achieve
maximum returns at minimum possible risk. The allocation to each asset class is decided by
the fund manager basis the investment objective of the fund and the market condition.
THINGS TO CONSIDER BEFORE INVESTING IN HYBRID FUNDS
Like any other investment, it is important to understand the various parameters such as
investment risk, expected returns, investment horizon, and costs involved before making the
investment decision.
 Returns: Hybrid Funds don’t offer guaranteed returns. Their returns are affected by
the performance of the underlying investments. The equity market performance will
affect the returns to the tune of equity exposure of the fund. The returns of an
aggressive oriented hybrid fund will be more correlated with the equity markets as
compared to the balanced and conservative-oriented hybrid fund. In a rising market,
its performance lags the funds with 100% equity allocation, and in a falling market, it
will outperform pure equity funds. Dynamic Asset Allocation fund can move between
equity and debt without any caps, and they increase/decrease their allocation to
equities and debt depending upon the outcome of financial models based on which the
fund is managed.
 Risk: Investment in hybrid funds is not devoid of risk. The risk in a hybrid fund
primarily depends upon the proportion of equity holding in the portfolio. The higher
the equity component, the riskier the fund. The segment of the equity market in which
the fund invests and the strategy used will define the risk of the equity component. In
the case of debt-oriented funds, risk will be defined by whether the debt portion is
managed for interest income or capital gains. A fund that gets its return mainly from
interest income of debt securities may be less risky than a fund that relies on gains
from price appreciation. Arbitrage funds are low-risk products as no directional call is
taken.
 Time Horizon: Hybrid funds are suited for a medium-term time horizon say from 3-5
years. The longer the time horizon, the better the chances of getting stable, higher
returns.
 Cost: Like any other mutual funds, hybrid funds also charge a fee known as
the expense ratio. The lower the expense ratio, the better for the investor. Although a
high expense ratio impacts the fund returns, it is not necessary that the high expense
ratio will always give low returns.

 Investment Strategy: It is important to note that the combination of assets selected,
the proportions in each asset and the investment style are determined by the fund
managers. Investors cannot influence how the various components may be chosen or
combined.
TYPES OF HYBRID MUTUAL FUNDS
With so many hybrid funds to choose from, even the most seasoned investor can get a little
thrown off. So, the Securities and Exchange Board of India issues a circular regularly to
classify different hybrid funds. Based on the latest SEBI circular, we have listed the seven
types of hybrid funds available in India.
Balanced hybrid fund
As the name indicates, a balanced hybrid fund balances its equity and debt investment. It
invests a minimum of 40% and a maximum of 60% in either one of them. For example, if
Balanced Fund ABC invests 55% of its portfolio in equity, it needs to invest 45% in debt
instruments. The aim behind investing in a balanced hybrid fund is capital appreciation in the
long-term while balancing the risk with debt investments.
Arbitrage hybrid fund
Quite a strategic play, an arbitrage hybrid fund buys assets in the cash market or spot market,
called so because the transactions are settled on the spot. Simultaneously, the fund manager
leverages the volatility of the markets and sells the futures market's holdings to profit from
the difference in the prices of the stocks and futures contracts. An arbitrage fund scheme
invests 65%-100% of its funds into equity and 0-35% in debt.

Equity Savings hybrid fund
This one likes to play with equity, debt, and derivatives to bring its investors a balance of risk
and returns. They invest 65-100% of their funds into equity and equity-linked assets, while 0-
35% are invested in debt assets.
Conservative hybrid fund
With a conservative 10-25% of the total funds being invested in equity, you know why this
type of hybrid fund investment is called 'conservative.' This type of fund's objective is to give
its investor regular income by investing 75-90% of its funds in the debt asset class.
Aggressive hybrid fund
When 65-80% of the funds are allocated to the equity asset class, you will rightly call it an
aggressive hybrid fund, won't you? The rest of the funds are invested in debt instruments,
giving the overall fund some form of stability.
Multi-Asset Allocation hybrid fund
Why invest in just one asset class when you can put your eggs in multiple baskets? In multi-
asset allocation, you invest in at least three asset classes: equity, debt, gold, gold-oriented
schemes, and others. Each asset class needs to have at least a 10% allocation in the overall
hybrid fund. It is up to the fund manager's judgment on how much to invest in which asset
class.
Dynamic Asset Allocation hybrid fund
Also known as 'balanced advantage funds,' this hybrid fund can go from 100% investment in
equity to 0% if the market seems not to favour equities.
WHO SHOULD INVEST IN A HYBRID MUTUAL FUND?

Hybrid funds are considered to be riskier than debt funds but safer than equity funds. They
tend to offer better returns than debt funds and are preferred by many low-risk investors.
Further, new investors who are unsure about stepping into the equity markets tend to turn
towards hybrid funds. This is because the debt component offers stability while they test the
equity ‘waters’.
Hybrid funds allow investors to make the most out of equity investments while cushioning
themselves against extreme volatility in the market.
FEATURES & BENEFITS OF HYBRID FUNDS
The benefits of investing in a mutual fund are further magnified when it is hybrid. Let's take a
look at what makes hybrid mutual funds so popular.
Convenient investment in different asset classes
You get access to investing in 2 asset classes by choosing one hybrid fund. As an investor,
what's better than receiving the benefits of 2 from 1?
DiversificationYes, investing in equity and debt is inherent with a hybrid mutual fund.
However, the fund manager can go further and allocate a portion of the equity to small-cap,
mid-cap, and large-cap stocks to bring in more diversification and lower the risk.
Appeals to different risk appetites
Have a penchant for adventure? Then you can invest in an aggressive hybrid fund. Prefer to
play it safe but like to indulge in some risk once in a while? Then a conservative hybrid fund
is available to you. Whatever your risk profile, there is a hybrid mutual fund scheme for you.
Dynamic buying and selling
A hybrid mutual fund allows the fund manager (and indirectly the investor) to sell the assets
when the price is high and buy when the price is low. This allowance for changing the asset
allocation within regulatory limits benefits those who invest in hybrid funds.
Hassle-free balancing of assets
Unless you have more than 24 hours in your day, it can be challenging to keep track of your
mutual fund investments and make modifications as per the latest market updates, along with
your other 1000 everyday responsibilities. That's why having a fund manager to rebalance
your portfolio according to the changing geopolitical statuses and market conditions becomes
a boon.Fairly convinced of the benefits of a hybrid fund? Okay, then let's consider the kind of
taxes you will need to pay on your hybrid fund returns.
 Access multiple asset classes with a single fund: One of the clear advantages of
hybrid mutual funds is that instead of investing in different funds to meet the need for
different asset classes, an investor can access multiple asset classes in a single
product.
 Active Risk Management: Hybrid mutual fund provides active risk management
through portfolio diversification and asset allocation. They manage risk by combining
non-correlated asset classes like equity and debt.
 Caters to various risk profiles: These funds can offer varying levels of risk tolerance
ranging from conservative to moderate and aggressive. There are equity-oriented
schemes for the risk-taker and debt-oriented schemes for the risk-averse and the
Dynamic Asset Allocation Fund for those who do not want to stick to a fixed Asset
allocation but want to move basis market views without taking the calls themselves.
Arbitrage for investors who are looking for stable returns in a volatile environment.
TAX IMPLICATIONS OF HYBRID FUNDS
We will keep this simple.
Equity-oriented hybrid mutual funds- schemes that invest 65% and above in any form of
equities- and arbitrage hybrid funds are taxed in the following way:
 Long-term capital gain
If the fund is held for beyond a year, it will attract a long-term capital gains tax at the
rate of 10%. However, yields of up to Rs. 1 lakh in a financial year are exempted from
tax in the given financial year.
 Short-term capital gain
When the funds are held for less than 1 year, they are considered short-term capital
gains and taxed at 15%.
In case of other hybrid fund schemes:
 Long-term capital gain
If they are held for more than 3 years or 36 months, they are taxed at 20%. This
amount is calculated after accounting for indexation.
 Short-term capital gain
When the funds are held for less than 3 years or 36 months, the gains are added to the
investor's income and taxed as per the existing tax slabs.

Below we have summarized the rate of taxation of capital gains on mutual funds:
Fund type Short-term capital gains Long-term capital gains
Gains above Rs. 1 lakh in a

Equity funds 15% + cess & surcharge financial year are taxed at
10% + cess & surcharge
Debt funds As per the applicable tax slab As per the applicable tax slab
Gains above Rs. 1 lakh in a

Hybrid equity-oriented funds 15% + cess & surcharge financial year are taxed at
10% + cess & surcharge
Hybrid debt-oriented funds As per the applicable tax slab As per the applicable tax slab
Now that we know how the capital gains tax is calculated for different types of mutual funds
depending on your holding period, let’s see how you can declare your mutual fund income.
SCHEMES PROVIDED BY THE SBI MUTUAL FUNDS – HYBRID
MUTUAL FUNDS
 AGGRESSIVE HYBRID FUND- SBI equity hybrid fund
 CONSERVATIVE HYBRID FUND- SBI conservative hybrid fund
 MULTI ASSET ALLOCATION FUND- SBI multi asset allocation fund
 BALANCED ADVANTAGE HYBRID FUND- SBI balanced advantage fund
 ARBITRAGE HYBRID FUND- SBI arbitrage opportunities fund
 EQUITY SAVING HYBRID FUND-SBIequity saving fund
 SOLUTION ORIENTED SCHEMES- CHILDREN’S FUND-
1.SBI magnum children’s benefit fund- savings plan

2.SBI magnum children’s benefit fund-investment plan
 SOLUTION ORIENTED SCHEMES- RETIREMENT FUND
1. SBI retirement benefit fund-aggressive plan
2. SBI retirement benefit fund-aggressive hybrid plan
3. SBI retirement benefit fund-conservative plan
4. SBI retirement benefit fund-conservative hybrid plan
ARTICLE REVIEWS
SUNEETHA AND LATHA (2020) - Study the performance of Select Balanced Funds in
India, to measure the risk-return relationship, market volatility of the select mutual funds
and to compare the performance of select balanced fund with BSE Index, The analysis was
achieved, by using various financial tests like Rate of Return, Standard Deviation, Beta,
Sharpe Ratio and Treyner Ratio. The data was collected from various websites of mutual
fund schemes and from AMFI India. The analysis depicts that, majority of funds selected for
the study have out-performed under Sharpe Ratio made an attempt to Study the performance
of Select Balanced Funds in India, to measure the risk-return relationship, market volatility of
the select mutual funds and to compare the performance of select balanced fund with BSE
Index.
ULF HERRMANN & HENDRIK SCHOLZ (2012):
In this section, the study have analyzes the performance of hybrid mutual funds. Ulf &
Hendrik (2012) investigated the study that covers 520 hybrid mutual funds that cover the
period from 10/1998 to 12/2009. In this study they employ two extended carhart models
which includes bond factors to analyze the performance of hybrid mutual funds. Using
quarterly measurement interval and daily returns, they present an innovative return-based
approach to decompose total performance into style-shifting performance and in-quarter
abnormal performance. In additional, it split into two total style-shifting performance into
active and passive components.
ALOK SINGH AND AJAY KUMAR 2019

"Performance Analysis of Hybrid Mutual Funds in India" This paper examines the
performance of hybrid mutual funds in the Indian context. It assesses risk-adjusted returns,
market timing abilities of fund managers, and the impact of asset allocation on fund
performance.
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
PERFORMANCE EVALUATION OF MUTUAL FUNDS
PERFORMANCE OF MUTUAL FUNDS

Mutual fund performance in India has been a subject of interest for investors seeking
potential returns. The performance of mutual funds can be assessed based on factors like
returns, risk, and consistency. Historically, Indian mutual funds have displayed a diverse
range
of performances, with both equity and debt funds experiencing fluctuations due to market
conditions. Factors influencing performance include market trends, economic indicators,
interest rates, and global events. Some funds have managed to consistently outperform their
benchmarks, attracting investor attention. However, it's important to note that past
performance
doesn't guarantee future results, and investors should consider their risk tolerance and
investment goals before choosing mutual funds. Regulatory measures and investor education
have aimed to enhance transparency and protect investor interests in the mutual fund industry.
Over the years, the Indian mutual fund industry has witnessed varying levels of
performance across different fund categories. Factors influencing performance include
market
conditions, economic trends, fund management strategies, and investor sentiment. Equity
funds
have shown potential for higher returns, but their performance can be volatile due to market
fluctuations. Debt funds tend to offer more stable returns, although they are sensitive to
interest
rate changes. Hybrid funds, combining both equity and debt, aim for balanced performance.
Investors should assess historical performance, expense ratios, and risk profiles before
investing in mutual funds to make informed decisions. Regulatory reforms and transparency
measures have contributed to improving the overall performance and investor confidence in
the Indian mutual fund market. However, it's important to note that past performance is not
indicative of future results, and market risks are inherent in mutual fund investments.
Analysis of selected mutual funds: In this chapter, the collected data were analysed in order
to
know the risk and level of return involved in different debt and equity mutual funds in
selected AMC’s.
Different kinds of elements are used to understand the fund returns, those are,
❖ Beta Values
❖ Sharpe Ratios
❖ Jenson’s Ratios and
❖ Treynor Ratios
In this study, data regarding the fund performance and portfolio for last one year is collected
and is calculated the returns for both equity and debt funds with the elements mentioned
above. It will
show which funds provide good returns in past one year either Debt Funds or Equity Funds
and Based
on the performance of Funds, the investor will give preference to invest in the Mutual Funds.
BETA VALUES: Beta values of a mutual fund scheme is the volatility of the scheme relative
to its
market benchmark. If beta of a scheme is more than 1, then scheme is more volatile than its
benchmark.
If beta is less than 1, then the scheme is less volatile than the benchmark. Formula to
calculate Beta
value is 𝜷 =𝑹𝑷-𝑹𝒇
𝑹𝑷-𝑹𝒇
SHARPE RATIO: Sharpe ratios helps investors to identify the risk level and adjusted return
rate of
all mutual funds. This gives a clear picture to the investors, and they get to know if the risk
they take is
giving good returns or not. The Sharpe Ratio help's investors to shed light on a fund's
performance.
Usually, Sharpe ratio greater than 1.0 is considered as good to the investors. Formula to
calculate Sharpe
Ratio is 𝑺𝒂 =𝑹𝑷-𝑹𝒇
𝝈𝑷
JENSEN'S RATIO: Jensen's measure is one of the ways to determine if a portfolio is

earning the
proper return for its level of risk. If the value is positive, then the portfolio is earning excess
returns.
Formula to calculate Jensen Ratio is 𝜶 = 𝑹𝑷 − [𝑹𝒇 + 𝜷𝑷(𝑹𝒎 − 𝑹𝒇)]

Treynor ratio: The Treynor ratios used to compare investments and does not explicitly
say whether an investment is good or bad. A higher Treynor ratio is typically seen as better
than
a lower one, because the investor is receiving a higher return relative to the risk (beta) being
taken. Formula to calculate Treynor Ratio is 𝑹𝑷-𝑹𝒇

𝜷𝑷
INTERPRETATION AND ANALYSIS OVERVIEW

This chapter is the important chapter in this project. The chapter deals with analysis and
understanding. The project is to study the performance of mutual funds in selected funds with
the help of Sharpe, Treynor and Jensen ratios. The project carried out for 6 weeks at SBI
Fund
Management Ltd. This company deals with sales of various mutual funds. After Interacting
with internal key persons, it is identified that there are some funds which are performing well
in mutual funds and are taken. To understand and study the performance of various mutual
funds.
For the above selected funds, each funds description and company allocation were analysed
for
understanding. Then basing on Benchmark index, returns, beta values, Standard deviation
values. Sharpe, Treynor and Jensen ratios were calculated
 SBI AGGRESSIVE HYBRID FUND

 SBI CONSERVATIVE HYBRID FUND
 SBI MULTI ASSET ALLOCATION FUND
 SBI BALANCED ADVANTAGE FUND
 SBI ARBITRAGE OPPORTUNITIES FUND
 SBI EQUITY SAVINGS FUND
1.SBI AGGRESSIVE HYBRID FUND

An open-ended hybrid scheme investing predominantly in equity and equity related
instruments (previously known as SBI magnum balanced Fund)
INVESTMENT OBJECTIVES
To provide investors long-term capital appreciation along with the liquidity of an open-ended
scheme by investing in a mix of debt and equity. The scheme will invest in a diversified
portfolio of equities of high growth companies and balance the risk through investing the rest
in fixed income securities.
TYPE OF SCHEME
An open-ended Hybrid Scheme investing predominantly in equity and equity related
instruments.
Date of Allotment: 09/10/1995
FUND MANAGERS:
 Mr. R. Srinivasan-Equity(Managing since 2012)

 Mr. Dinesh Ahuja -Debt( Managing since 2012)
 Mr. Mohit Jain -fund manager for managing overseas investments of the scheme
TOTAL EXPERIENCE:
 Mr. R. Srinivasan -Over 30 years

 Mr. Dinesh Ahuja -Over 24 years Mr.
 Mohit Jain-Over 10 years
First tier Benchmark : CRISIL Hybrid 35+65- Aggressive Index

EXIT LOAD:
 For exit within 12 months from the date of allotment for 10% of investment – Nil
 For remaining investments- 1.00%;
 For exit after 12 months from the date of allotment-Nil
ENTRY LOAD: N.A

PLANS AVAILABLE: Regular, Direct
OPTIONS: Growth, IDCW
SIP( SYSTEMATIC INVESTMENT PLAN)

Any Day SIP Facility is available for Monthly, Quarterly, Semi-Annual and Annual
frequencies through electronic mode like OTM/Debit Mandate. Default SIP date will be 10th.
In case the SIP due date is a Non Business Day, then the immediate following Business Day
will be considered for SIP processing.
Daily -Minimum 500 & in multiples of 1 thereafter for a minimum of 12 instalments. (Kindly
refer notice cum addendum dated June 02, 2020 for further details)
Weekly-Minimum 1000 & in multiples of 1 thereafter for a minimum of 6 instalments. (or)
Minimum 500 & in multiples of 1 thereafter for a minimum of 12 instalments.
Monthly- Minimum 1000 & in multiples of 1 thereafter for minimum six months (or)
minimum 500 & in multiples of thereafter for minimum one year
Quarterly-Minimum 1500 & in multiples of 1 thereafter for minimum one year.
Semi Annual -Minimum 3000 & in multiples of 1 thereafter for a minimum of 4 instalments.
Annual - Minimum 5000 & in multiples of 1 thereafter for a minimum of 4 installments.
Minimum Investment -1000 & in multiples of RS1
Additional Investment -1000 & in multiples of RS 1
PORTFOLIO ALLOC- ASSET ALLOCATION
ATION Financial Services
Sovereign
Healthcare
Automobile And Auto LARGE CAP
Components
Telecommunication MID CAP
Information Technology
SMALL CAP
Consumer Services
Construction Materials SOVEREIGN
Oil, Gas & Consumable
Fuels A1+
Chemicals CASH AND CASH
Metals & Mining EQUIVALENTS
Capital Goods Power
Textiles
Fast Moving Consumer
Goods
Consumer Durables
Construction
services
Cash, Cash Equivalents
And Others
1.NAV VALUES
APRIL 202.12
MAY 208.3036714
JUNE 213.6458667
NAV OF SBI AGGRESSIVE HYBRID FUND

220
215
NET ASSET VALUE
210
205
200 Total
195
190
pr pr pr pr pr pr a y ay ay a y a y ay ay un un un un un un un
3 - A 0- A 3- A 9- A 4- A 7- A - M - M - M - M - M - M - M 1- J 6- J 9- J 4- J 9- J 2- J 7- J
0 1 1 1 2 2 03 08 11 16 19 24 29 0 0 0 1 1 2 2
DATES
2.RETURN VALUES
MONTH RETURNS% AVERAGE RETURNS - Rp(%)
April 3.05
May 3.19 3.24
June 3.50
3. Β(beta) = 0.83
4.CALCULATION OF SHARPE RATIO

Sa =Rp-Rf
σp
Here,
Returns of portfolio ( Rp ) = 3.24
Risk-free rate of return ( Rf ) = 6.74
Annualized Standard Deviation (σp ) = 0.23
Sa = 3.24-6.74
0.23
Sa = -15.22
5.CALCULATION OF JENSEN RATIO
α = RP − [Rf + βP(Rm − Rf)] Here,
Returns of portfolio ( Rp ) =3.24 %
Average expected rate on the market ( Rm ) = 11.76
Risk of portfolio ( βp ) = -0.54
α = 3.24– [6.74 +(0.83) (11.76 – 6.74)]
α = 3.24 – [6.74 +(0.83) (5.02)] = -7.67
6.CALCULATION OF TREYNOR RATIO

Treynor =Rp-Rf
βp
Here,
Risk of portfolio ( βp ) = 0.83
Treynor = 3.24-6.74
0.83
Treynor = -4.49
FROM THE ABOVE ANALYSIS

NAV RETURNS BETA SD SHARPE JENSEN TREYNOR
APRIL-202.12
MAY-208.30 3.24 0.83 0.23 -15.22 -7.67 -4.49
JUNE-213.65
INTERPRETATION:
From the Above table suggest the performance evaluation of the funds in April 2023 to June
2023 we observe that net asset value (NAV) of April, May and June is 202.12, 208.30 and
213.65. the investment is showing a positive return over the specified period with 3.24. The
investment's beta is 0.83, which suggests it has a positive correlation with the market. The
investment's standard deviation is 0.23, indicating relatively low volatility in its returns. The
Sharpe, Jensen and Treynor ratio is showing negative -15.22, -7.67 and -4.49.
2.SBI CONSERVATIVE HYBRID FUND

An open-ended hybrid scheme investing predominantly in debt and debt related instruments
(previously known as SBI debt hubrid Fund)
INVESTMENT OBJECTIVES
To provide the investors an opportunity to invest primarily in debt and money market
instruments and secondarily in equity and equity related instruments.
FUND DETAILS
TYPE OF SCHEME
An open-ended Hybrid Scheme investing predominantly in debt and debt related instruments.
Date of Allotment: 09/04/2001
MANAGERS:
 Mr. Saurabh Pant-Equity (Managing since 2022)

 Mr. Mansi Sajeja -Debt( Managing since 2021)
 Mr. Mohit Jain – investment in foreign securities portion
(fund manager for managing overseas investments of the scheme)( Managing since
2020)
TOTAL EXPERIENCE:
 Mr. Saurabh Pant-Over 15years

 Mr. Mansi Sajeja -Over 16 years Mr.
 Mohit Jain-Over 10 years
First tier Benchmark : NIFTY 50 Hybrid composite debt 15:85
EXIT LOAD:
ENTRY LOAD: N.A

SIP(SYSTEMATIC INVESTMENT PLAN)

SBI CONSERVATIVE HYBRID FUND: This product is suitable for investors who are
seeking for
 Regular income and capital growth
 Investment primarily in debt and money market instruments and secondarily in equity
and equity related instruments.
PORTFOLIO ALLOCATION ASSET ALLOCATION

Financial Services
Sovereign LARGE CAP
Telecommunication MID CAP
Services SMALL CAP
Consumer Durables
Fast Moving SOVEREIGN
Consumer Goods A1+
Capital Goods CASH AND CASH
Automobile And EQUIVALENTS
Auto Components
Power
Information
Technology
Construction Mate-
rials
Chemicals
Construction
1.NAV VALUES
APRIL 1.63
MAY 1.59
JUNE 1.15
NAV -SBI CONSERVATIVE HYBRID FUNDS

60
net asset values
58
56 Total
54
pr pr pr pr pr pr ay ay ay ay ay ay ay un un un un un un un
3-A 0-A 3-A 9-A 4-A 7-A -M -M -M -M -M -M -M 2-J 7-J 2-J 5-J 0-J 3-J 8-J
0 1 1 1 2 2 03 09 12 17 22 25 30 0 0 1 1 2 2 2
days
2.RETURN VALUES
April 1.63
May 1.59 1.46
June 1.15
3. Β(beta) = 0.56

Sa =Rp-Rf
σp
Here,
Sa = 1.46-6.74
0.26
Sa = -20.31

Returns of portfolio ( Rp ) =1.46%
α = 1.46– [6.74 +(0.56) (11.76 – 6.74)]
α = 1.46 – [6.74 +(0.56) (5.02)] = -8.09

Treynor =Rp-Rf
βp
Here,
Treynor = 1.46-6.74
0.56
Treynor = -9.43

APRIL- 56.75
MAY-57.87 1.46 0.56 0.26 -20.31 -8.09 -9.43
JUNE-58.76
INTERPRETATION:
3.SBI MULTI ASSET ALLOCATION FUND

An open-ended scheme investing in equity, debt, and gold & gold related instruments
including ETFS and such other asset classes as SEBI may prescribe from time to time
(Previously known as SBI Magnum Monthly Income Plan - Floater)
INVESTMENT OBJECTIVE
To provide the investors an opportunity to invest in an actively managed portfolio of multiple
asset classes.
TYPE OF SCHEME
An open-ended Scheme investing in equity, debt and gold and gold related instruments
including ETFs and such other asset classes as SEBI may prescribe from time to time.
Date of Allotment: 16/5 / 2018
FUND MANAGER:
Mr. Dinesh Balachandran & Mr. Raj Gandhi (for ETCDs) & "Mr. Mohit Jain
MANAGING SINCE:
Mr. Dinesh Balachandran - Oct 2021
Mr. Raj Gandhi - Feb 27, 2020
Mr. Mohit Jain - Nov 2017
TOTAL EXPERIENCE:
Mr. Dinesh Balachandran - over 21 years
Mr. Raj Gandhi - over 17 years
Mr. Mohit Jain - Over 8 Years
FIRST TIER BENCHMARK : 45% crisil 10 years gilt index +40% nifty 50 tri + 15%
price of gold
EXIT LOAD:
ENTRY LOAD: N.A

SIP (SYSTEMATIC INVESTMENT PLAN)

SBI MULTI ASSET ALLOCATION HYBRID FUND: This product is suitable for
investors who are seeking for
 Long term capital growth with potential for regular income
 Investment n a diversified portfolio of equity,fixed income and gold and gold related
instruments including domestic and overseas ETF’s.
Financial Services
PORTFOLIO ALLOC- Sovereign
Exchange Traded
ASSET ALLOCATION
ATION Funds
Services LARGE CAP
Oil, Gas & Con-
sumable Fuels MID CAP
Realty SMALL CAP
Capital Goods
Healthcare SOVEREIGN
Power
Telecommunication A1+
Construction Mate- CASH AND CASH
rials EQUIVALENTS
Metals & Mining
Mutual Fund
Chemicals
Consumer Durables
Information
Technology
Fast Moving
Consumer Goods
Consumer Services
1.NAV VALUES
APRIL 40.15
MAY 40.88
JUNE 41.79
NAV OF SBI MULTI ASSET ALLOCATION

FUND
42
NET ASSET VALUES
40
Total
38
03-May
04-May
09-May
10-May
12-May
15-May
17-May
18-May
23-May
26-May
31-May
05-Jun
08-Jun
13-Jun
15-Jun
16-Jun
19-Jun
21-Jun
22-Jun
26-Jun
27-Jun
30-Jun
02-May
08-May
11-May
16-May
19-May
22-May
24-May
25-May
29-May
30-May
01-Jun
02-Jun
06-Jun
07-Jun
09-Jun
12-Jun
14-Jun
20-Jun
23-Jun
28-Jun
03-Apr
05-Apr
06-Apr
10-Apr
11-Apr
12-Apr
13-Apr
17-Apr
18-Apr
19-Apr
20-Apr
21-Apr
24-Apr
25-Apr
26-Apr
27-Apr
28-Apr
Apr May Jun

DAYS
2.RETURN VALUES
April 2.42
May 2.11 2.29
June 2.33
3. Β(beta) = 0.43

Sa =Rp-Rf
σp
Here,
Sa = 2.29-6.74
0.16
Sa = -28.13

Returns of portfolio ( Rp ) =2.29
α = 2.29– [6.74 +(0.43) (11.76 – 6.74)]
α = 2.29 – [6.74 +(0.43) (5.02)] = -6.60

Treynor =Rp-Rf
βp
Here,
Treynor = 2.29 -6.74
0.43
Treynor = -10.35

APRIL- 40.15
MAY- 40.88 2.29 0.43 0.16 -28.13 -6.60 -10.35
JUNE-41.79
INTERPRETATION:
4.SBI BALANCED ADVANTAGE FUND

An open- ended dynamic asset allocation fund
Investment Objective
To provide long term capital appreciation /income from a dynamic mix of equity and debt
investments. However, there can be no assurance that the investment objective of the Scheme
will be realized.
TYPE OF SCHEME
An open-ended dynamic asset allocation fund.
DATE OF ALLOTMENT: 31/8 / 2021

FUND MANAGER:
Mr. Dinesh Balachandran -Equity Portion( Managing since august 2021)
Mr. Dinesh Ahuja -Debt Portion( Managing since august 2021)
Mr. Mohit Jain shall manage investments in foreign securities of the Scheme( Managing since
august 2021)
TOTAL EXPERIENCE:
Mr. Dinesh Balachandran -Over 21 years
Mr. Dinesh Ahuja -Over 24 years
Mr. Mohit Jain -Over 10 years
FIRST TIER BENCHMARK : NIFTY 50 HYBRID COMPOSITE DEBT 50:50

INDEX
EXIT LOAD:
ENTRY LOAD: N.A


SBI BALANCED ADVANTAGE FUND: This product is suitable for investors who are
seeking for
 Long term capital appreciation
 Dynamic asset allocation between equity and equity related instruments including
derivatives and fixed income securities.
PORTFOLIO ALLOCATION ASSET ALLOCATION

Financial Services
soveriegn
Oil, Gas & Consumable Fuels
services LARGE CAP
Information Technology MID CAP
Capital Goods
Automobile And Auto SMALL CAP
Components
construction SOVEREIGN
Power
Metals & Mining A1+
Telecommunication CASH AND CASH
Fast Moving Consumer EQUIVALENTS
Goods
Healthcare
Realty
Construction Materials
consumer services
Media, Entertainment &
Publication
Consumer Durables
Chemicals
Cash, Cash Equivalents, De-
rivative Margin And others
1.NAV VALUES
APRIL 10.99
MAY 10.33
JUNE 11.06
NAV OF SBI BALANCED ADVANTAGE FUND

11.6
net asset value
11.2
10.8
Total
10.4
05-May
09-May
10-May
11-May
12-May
15-May
16-May
25-May
29-May
30-May
31-May
02-May
03-May
04-May
08-May
17-May
18-May
19-May
22-May
23-May
24-May
26-May
01-Jun
02-Jun
05-Jun
07-Jun
16-Jun
19-Jun
20-Jun
21-Jun
22-Jun
23-Jun
27-Jun
03-Apr
05-Apr
06-Apr
10-Apr
11-Apr
12-Apr
13-Apr
17-Apr
18-Apr
19-Apr
20-Apr
21-Apr
24-Apr
25-Apr
26-Apr
27-Apr
28-Apr
06-Jun
08-Jun
09-Jun
12-Jun
13-Jun
14-Jun
15-Jun
26-Jun
28-Jun
30-Jun
Apr May Jun
days
2.RETURN VALUES
April 1.63
May 1.59 1.46
June 1.15
3. Β(beta) = 0.52

Sa =Rp-Rf σp
Here,
Sa = 1.46-6.74
0.27
Sa = -19.56

α = 1.46– [6.74 +(0.52) (11.76 – 6.74)]
α = 1.46 – [6.74 +(0.52) (5.02)] = -7.9

Treynor =Rp-Rf
βp
Here,
Treynor = 1.46 -6.74
0.52
Treynor = -10.15

APRIL- 10.99
MAY- 10.33 1.46 0.52 0.27 -19.56 -7.9 -10.15
JUNE-11.06
INTERPRETATION:
5.SBI ARBITRAGE OPPORTUNITIES FUND

An open-ended scheme investing in arbitrage opportunities
To provide capital appreciation and regular income for unit holders by identifying profitable
arbitrage opportunities between the spot and derivative market segments as also through
investment of surplus cash in debt and money market instruments
FUND DETAILS
TYPE OF SCHEME
An open-ended scheme investing in arbitrage opportunities.
DATE OF ALLOTMENT- 03/11/2006
FUND MANAGER
 Mr.Neeraj Kumar- Equity portion ( Managing since oct 2012)

 Mr.Arun R – Debt portion( Managing since June 2021)
TOTAL EXPERIENCE
 Mr.Neeraj Kumar- overall 26 years

 Mr.Arun R- overall 16 years
FIRST TIER BENCHMARK : NIFTY 50 Arbitrage
EXIT LOAD:
 For exit on or before within 1 months from the date of allotment – 0.25%
ENTRY LOAD: N.A


SBI ARBITRAGE OPPORTUNTIES FUND: This product is suitable for investors who
are seeking for
 Short term investment
 Investment to exploit profitable arbitrage opportunities between the spot and
derivative market segments to provide capital appreciation and regular income.
PORTFOLIO ALLOCATION
financial services ASSET ALLOCATION
services
sovereign
automobile and
auto components LARGE CAP
chemicals
capital goods MID CAP
telecommunication
SMALL CAP
oil ,gas and
consumable fu-
els
fmcg SOVEREIGN
construction
textiles A1+
consumer services
consumer durables CASH AND
CASH EQUIV-
health care ALENTS
media ,entertainme
nt & publication
realty
IT
metals and mining
construction mate-
rials
power
cash ,cash equiva-
lents and others
1.NAV VALUES
APRIL 28.87
MAY 29.04
JUNE 29.23
NAV OF SBI ARBITRAGE OPPORTUNITIES FUND

29.4
29.2
NET ASSET VALUE
29
28.8
28.6 Total
28.4
02-May
05-May
09-May
12-May
15-May
17-May
22-May
24-May
29-May
30-May
03-May
04-May
08-May
10-May
11-May
16-May
18-May
19-May
23-May
25-May
26-May
31-May
01-Jun
06-Jun
08-Jun
09-Jun
14-Jun
16-Jun
21-Jun
26-Jun
30-Jun
02-Jun
05-Jun
07-Jun
12-Jun
13-Jun
15-Jun
19-Jun
20-Jun
22-Jun
23-Jun
27-Jun
28-Jun
03-Apr
05-Apr
06-Apr
10-Apr
11-Apr
12-Apr
13-Apr
17-Apr
18-Apr
19-Apr
20-Apr
21-Apr
24-Apr
25-Apr
26-Apr
27-Apr
28-Apr
Apr May Jun

DAYS
2.RETURN VALUES
April 0.56
May 0.56 0.57
June 0.58
3. Β(beta) = 0.76

Sa =Rp-Rf
σp
Here,
Sa = 0.57-6.74
0.01
Sa = -617
α = 0.57– [6.74 +(0.76) (11.76 – 6.74)]
α = 0.57 – [6.74 +(0.76) (5.02)] = -9.99

Treynor =Rp-Rf
βp
Here,
Treynor = 0.57 -6.74
0.76
Treynor = -8.12

APRIL- 28.87
MAY- 29.04 0.57 0.76 0.01 -617 -9.99 -8.12
JUNE-29.23
INTERPRETATION:
Sharpe, Jensen and Treynor ratio is showing negative -617, -9.99 and -8.12.
6.SBI EQUITY SAVINGS FUND

An open ended Scheme investing in equity arbitrage and debt.
The scheme aims to generate income by Investing in arbitrage opportunities in
the cash and derivatives segment of the equity market, and capital appreciation
through a moderate exposure in equity.
FUND DETAILS
TYPE OF SCHEME
An open ended Scheme investing in equity arbitrage and debt.
DATE OF ALLOTMENT: 27/05/2015
FUND MANAGER:
 Ms. Nidhi Chawla (Equity Portion) Managing Since-jan 2022
 Ms. Mansi Sajeja (Debt Portion) Managing Since-june 2021
 Mr. Neeraj Kumar (Arbitrage Portion ) Managing Since-may 2015
TOTAL EXPERIENCE:
 Ms. Nidhi Chawla - Over 15 years
 Ms. Mansi Sajeja - Over 16 years
 Mr. Neeraj Kumar -Over 26 years
FIRST TIER BENCHMARK :NIFTY Equity Savings
EXIT LOAD: For exit on or before 15 days from the date of allotment-0.10%
For exit after 15 days from the date of allotment-Nil
ENTRY LOAD: N.A


SBI ARBITRAGE OPPORTUNTIES FUND: This product is suitable for investors who
are seeking for
 Regular income and capital appreciation
 To generate income by investing in arbitrage opportunities in the cash and derivative
segment of the equity market , and the capital appreciation through a moderate
exposure in equity
financial services
services ASSET ALLOCATION
portfolio allocation sovereign
automobile and auto
components LARGE CAP
chemicals MID CAP
capital goods
telecommunication SMALL CAP
oil ,gas and consumable
fuels SOVEREIGN
fmcg
construction A1+
textiles CASH AND CASH
consumer services EQUIVALENTS
consumer durables
health care
media ,entertainment &
publication
realty
IT
metals and mining
construction materials
power
cash ,cash equivalents
and others
1.NAV VALUES
APRIL 17.82
MAY 18.23
JUNE 18.72
NAV OFSBI EQUITY SAVINGS FUND

19.5
19
18.5
NET ASSET VALUE
18
17.5
Total
17
16.5
02-May
03-May
04-May
05-May
08-May
09-May
10-May
11-May
12-May
15-May
16-May
17-May
18-May
19-May
22-May
23-May
24-May
25-May
26-May
29-May
30-May
31-May
01-Jun
02-Jun
05-Jun
06-Jun
07-Jun
08-Jun
09-Jun
12-Jun
13-Jun
14-Jun
15-Jun
16-Jun
19-Jun
20-Jun
21-Jun
22-Jun
23-Jun
26-Jun
27-Jun
28-Jun
30-Jun
03-Apr
05-Apr
06-Apr
10-Apr
11-Apr
12-Apr
13-Apr
17-Apr
18-Apr
19-Apr
20-Apr
21-Apr
24-Apr
25-Apr
26-Apr
27-Apr
28-Apr
Apr May Jun

DAYS
2.RETURN VALUES
April 1.66
May 1.79 1.79
June 1.92
3. Β(beta) = 0.90

Sa =Rp-Rf
σp
Here,
Sa = 1.79-6.74
0.13
Sa = - 38.08

α = 1.79– [6.74 +(0.76) (11.76 – 6.74)]
α = 1.79 – [6.74 +(0.90) (5.02)] = -9.45

Treynor =Rp-Rf
βp
Here,
Treynor = 1.79 -6.74
0.90
Treynor = -5.5

APRIL- 17.82
MAY- 18.23 1.79 0.90 0.13 -38.08 -9.45 -5.5
JUNE-18.72
INTERPRETATION:
Sharpe, Jensen and Treynor ratio is showing negative -38.08 , -9.45 and -5.5.
SUMMARY TABLE
FUND NAME NAV(NET RET BETA SD SHARPE JENSEN TREYNOR

ASSET URN
VALUE S
SBI APRIL-202.12
AGGRESSIVE MAY-208.30 3.24 0.83 0.23 -15.22 -7.67 -4.49
HYBRID FUND JUNE-213.65
SBI APRIL- 56.75
CONSERVATIVE MAY-57.87 1.46 0.56 0.26 -20.31 -8.09 -9.43
SBI MULTI APRIL- 40.15
ASSET MAY- 40.88 2.29 0.43 0.16 -28.13 -6.60 -10.35
ALLOCATION JUNE-41.79
FUND
SBI BALANCED APRIL- 10.99
ADVANTAGE MAY- 10.33 1.46 0.52 0.27 -19.56 -7.9 -10.15
SBI APRIL- 28.87
ARBITRAGE MAY- 29.04 0.57 0.76 0.01 -617 -9.99 -8.12
OPPORTUNITY JUNE-29.23
FUND
SBI EQUITY APRIL- 17.82
SAVING FUND MAY- 18.23 1.79 0.90 0.13 -38.08 -9.45 -5.5
JUNE-18.72

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CHAPTER -I

PERFORMANCE EVALUATION OF HYBRID MUTUAL FUNDS

who want the best of both, by going for hybrid funds

cushion against extreme market fluctuations.

equity, debt, commodities, and even derivatives.

invest in corporate and government bonds.

5. Fund Manager's Expertise - Hybrid fund managers restructure portfolios

does the portfolio rebalancing, you don't have to do it yourself.

DIVERSIFICATION: Hybrid funds provide investors with a diversified portfolio by

RISK-RETURN PROFILES: Hybrid funds cater to a broad spectrum of investors with

objectives. This adaptability allows for dynamic portfolio management.

investors to gain exposure to a broader range of markets and asset classes.

PROFESSIONAL MANAGEMENT: Investors in hybrid mutual funds benefit from

professional portfolio management. Fund managers conduct research, monitor market

time and effort.

CAPITAL APPRECIATION: Hybrid funds may have an objective of capital appreciation ,

vary based on market conditions and the fund's stated objectives.

LONG-TERM WEALTH PRESERVATION: Hybrid funds can be used as a means of

preserving and growing wealth over the long term..

RISK-ADJUSTED RETURNS: Hybrid funds aim to provide risk-adjusted returns ,by

returns for investors.

or sell shares on any business day.

METHODOLOGY OF THE STUDY:

Methodology is a systematic procedure of collecting information. Research Methodology is a

research is done scientifically.

subject. Two types of information are taken.

personal interview. Making personal investigations helped me in collecting primary data.

report. Observation of SENSEX proceeding with leading mutual fund companies.

organizational records and data collected through qualitative methodologies or qualitative

respected companies &amp; websites like:

LIMITATIONS OF THE STUDY

LIMITED CUSTOMIZATION: Hybrid funds are managed by professional fund managers

fund's portfolio or the timing of buy and sell decisions.

the fund's performance.

possibility of losing some or all of their invested capital.

FRAMEWORK OF THE STUDY

1. INTRODUCTION TO THE INDUSTRY

A mutual fund is a professionally-managed form of collective investments that pools money

invested in accordance with a stated objective.

it offers an opportunity to invest in a diversified, professionally managed basket of securities

assets by the total number of units issued to the investors.

GROWTH OF MUTUAL FUNDS IN INDIA

HISTORY OF MUTUAL FUND INDUSTRY IN INDIA

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

First Phase - 1964-87

UTI had Rs.6, 700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

Third Phase - 1993-2003 (Entry of Private Sector Funds)

Fourth Phase - since February 2003

manage assets of Rs.153108 crores under 421 schemes.

for retail investors.

INDIA MUTUAL FUND MARKET ANALYSIS

by 4% to INR 96,000 crore in FY 2020-2021. This resulted in income uncertainty. Many

was 12.61 crore (126.1 million units).

INDIA MUTUAL FUND INDUSTRY SEGMENTATION

forecasts for the various segments are presented.

BY ASSET CLASS/SCHEME TYPE –

 ETFS AND FOFS

 Indian Institutional Investors

 FIIs and FPIs

India Mutual Fund Market Leaders

1. HDFC MUTUAL FUND

2. ICICI MUTUAL FUND

3. SBI MUTUAL FUND

respected companies & websites like: