1

SUMMER TRAINING PROJECT REPORT

ON
SALE OF SBI MUTUAL FUND PRODUCTS BY SBI V/S OTHER
PRIVATE BANKS
At
STATE BANK OF INDIA
SUBMITTED IN PARTIAL FULFILMENT FOR THE AWARD OF THE DEGREE

MASTER OF BUSINESS ADMINISTRATION
(FINANCIAL MARKETS) 2012-2014
Under the guidance of Assistant Professor
DR. SANCHITA BANSAL

SUBMITTED BY
SURAJ KUMAR KARN
ENROLLMENT NO.: 07116659312

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES
(GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY)
Dwarka, Delhi
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DECLARATION

I hereby state that the Project Report titled SALE OF SBI MUTUAL FUND PRODUCTS BY
SBI V/S OTHER PRIVATE BANKS submitted in partial fulfilment of the degree of Master
of Business Administration (Financial Markets) of Guru Gobind Singh Indraprastha
University, New Delhi is an original work done entirely by me and is based entirely on my own
observations. It has not previously formed the basis for the award of any other degree, diploma,
fellowship or any other similar title. The facts presented are true to the best of my knowledge.






SURAJ KUMAR KARN DATE:
Enrollment No. 07116659312





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CERTIFICATE

This is to certify that the Summer Training Report title SALE OF SBI MUTUAL FUND
PRODUCTS BY SBI V/S OTHER PRIVATE BANKS is an original work submitted by
SURAJ KUMAR KARN, Enrollment No. 07116659312, student of MBA (Financial Markets)
2012-2014, student of University School of Management Studies (USMS), Sector-16 C, Dwarka,
Delhi (INDIA) for the partial fulfilment of Master of Business Administration (Financial
Markets) program of Guru Gobind Singh Indraprastha University under the guidance of PROF.
DR. SANCHITA BANSAL and the same has not been submitted to any other University or
Institute for award of any Degree/ Diploma.
He has worked under my guidance and I wish him well in all her future endeavours.





Signature
(Dr. Sanchita Bansal)
Assistant Professor
USMS, GGSIPU




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Acknowledgement
Research is a venture that requires co-operation of many people. I feel pleasure in taking this
opportunity to express my sincere regards to all the respondents, who helped me in achieving the
objectives of my project. This project research could not have been possible without their
dedication, patience, assistance and valuable time.
I would also like to thank my supervisor, Prof. SANCHITA BANSAL, New Delhi. Without
her guidance, valuable suggestions, constructive criticisms and encouragement throughout the
course of the project, the present shape of the work would not have been possible. I am also
thankful to all teachers, non-teaching staff and all my friends of the institute for their kind help.
And I am also thankful to my corporate guide and my mentor Mr. ASHOK KUMAR
KATIYAL (REGIONAL MANAGER), RBO, Noida for their sincere guidance and inspiration
in completing this project.

During the planning of this work the most difficult job was the stage of data collection. I want to
convey my deepest regards to LALIT SINGH MAHAR, Relationship Manager at Noida,
Sector-2 branch of SBI for his guidance and all the employees of STATE BANK OF INDIA,
Noida. Without their help, data collection was impossible for the present study.

I am also extremely thankful to all those persons who have positively helped me and customers
who responded my questionnaire, around whom the whole project cycle revolves.

I also thank all my friends who have more or less contributed to the preparation of this project
report. I will be always indebted to them







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EXECUTIVE SUMMARY

The study on SALE OF SBI MUTUAL FUND PRODUCTS BY SBI V/S OTHER PRIVATE
BANKS has been taken at State Bank of India, at their sector 19 Noida Regional Business
Office, in their SBI MUTUAL FUND PVT.LTD branch. This project tries to understand the
brand SBI which has been established for quite a long time and how Bank can use that brand to
enhance its mutual fund market share. In India, there are many banks offering attractive and
viable mutual fund schemes. Among these, State Bank of India has emerged as the biggest player
in providing different mutual fund products.
The purpose of this study is to understand the brand of SBI and to study the sale of mutual
fund product by SBI and other private banks. And to understand what customers experienced
while taking mutual fund product from SBI and how SBI can enhance its market share of mutual
fund.
The several key areas of the research would be the study of the demographic characteristics of
the customers, analysis of the factors that determine their thought about SBI and their experience
of taking mutual fund and the hindrances caused by them while taking mutual fund.








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TABLE OF CONTENTS
Declaration
Industry Mentor Certificate
Summer Training Appraisal
Certificate of Completion
Acknowledgement
Executive Summary

Particulars Page No(s)
CHAPTER 1: INTRODUCTION
1.1 Introduction to Mutual Fund 8
1.2 Organisation of a Mutual Fund 10
1.3 Advantage of Mutual Fund 14
1.4 Disadvantage of Mutual Fund 15
1.5 Types of Mutual Fund Schemes 16
1.6 Various criteria to evaluate Mutual Fund 22
1.7 About SBI Mutual Fund 26
1.7.1 SBI Mutual Fund Product 28
1.8 Channel of selling Mutual Funds 31
1.9 Objectives 37
1.10 SWOT Analysis of Mutual Fund 40
CHAPTER 2: RESEARCH DESIGN AND RESEARCH METHODOLOGY 42
2.1 Research Design
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2.2 Research Methodology
CHAPTER 3: COMPANY PROFILE 43
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION 48
May month data of Noida Region
CHAPTER 5: QUESTIONAIRE & ITS INTERPRETATION 54
CHAPTER 6: RECOMMENDATION 66
CHAPTER 7: CONCLUSION 68
CHAPTER 8: BIBLIOGRAPHY 70













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Chapter- 1
Introduction
1.1 Introduction to Mutual Fund
An investment vehicle that is made up of a pool of funds collected from many investors for the
purpose of investing in securities such as stocks, bonds, money market instruments and similar
assets. Mutual funds are dynamic institution, which plays a crucial role in an economy by
mobilizing savings and investing them in the capital market, thus establishing a link between
savings and the capital market.
A mutual fund is an institution that invests the pooled funds of public to create a diversified
portfolio of securities. Pooling is the key to mutual fund investing. Each mutual fund has a
specific investment objective and tries to meet that objective through active portfolio
management.
Mutual fund as an investment company combines or collects money of its shareholders and
invests those funds in variety of stocks, bonds, and money market instruments. The latter
include securities, commercial papers, certificates of deposits, etc. Mutual funds provide the
investor with professional management of funds and diversification of investment.
Investors who invest in mutual funds are provided with units to participate in stock markets.
These units are investment vehicle that provide a means of participation in the stock market for
people who have neither the time, nor the money, nor perhaps the expertise to undertake the
direct investment in equities. On the other hand they also provide a route into specialist markets
where direct investment often demands both more time and more knowledge than an investor
may possess.
The price of units in any mutual fund is governed by the value of underlying securities. The
value of an investors holding in a unit can therefore, like an investment in share, can go down as
well as up. Hence it is said that mutual funds are subjected to market risk. Mutual fund cannot
guarantee a fixed rate of return. It depends on the market condition. If a particular scheme is
performing well then more return can be expected.
9

It also depends on the fund manager expertise knowledge. It is also seen that people invest in
particular funds depending on who the fund manager is.


The following diagram shows the working of mutual fund

This diagram signifies the importance of Mutual Fund.
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is invested by the fund manager in different types of
securities depending upon the objective of the scheme. These could range from shares to
debentures to money market instruments. The income earned through these investments and the
capital appreciations realized by the schemes are shared by its unit holders in proportion to the
number of units owned by them.
Thus a mutual fund is the most suitable investment for the common person as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a relatively
low cost.
Since small investors generally do not have adequate time, knowledge, experience & resources
10

for directly accessing the capital market, they have to rely on an intermediary, which undertakes
informed investment decisions & provides consequential benefits of professional expertise.
The advantage of Mutual Funds to the investors is professionally managed, low transaction cost,
liquidity, transparency, well regulated, diversified portfolios & tax benefits. By pooling their
assets through mutual funds, investors achieve economies of scale.
The portfolio diversification ensures risk minimization. The criticality of such a measure comes
in when you factor in the fluctuations that characterize stock markets. The interest of the
investors is protected by the SEBI, which acts as a watchdog. Mutual funds are governed by
SEBI (Mutual Funds) regulations, 1996.

1.2 ORGANISATION OF A MUTUAL FUND
There are many entities involved and the diagram below illustrates the organizational set up of a
mutual fund:





Mutual funds have a unique structure not shared with other entities such as companies or firms.
It is important for employees & agents to be aware of the special nature of this structure, because
it determines the rights & responsibilities of the funds constituents viz., sponsors, trustees,
custodians, transfer agents & of course, the fund & the Asset Management Company(AMC) the
legal structure also drives the inter-relationships between these constituents.
The structure of the mutual fund India is governed by the SEBI (Mutual Funds) regulations,
1996. These regulations make it mandatory for mutual funds to have a structure of sponsor,
trustee, AMC, custodian. The sponsor is the promoter of the mutual fund,& appoints the trustees.
The trustees are responsible to the investors in the mutual fund, & appoint the AMC for
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managing the investment portfolio. The AMC is the business face of the mutual fund, as it
manages all affairs of the mutual fund. The mutual fund & the AMC have to be registered with
SEBI. Custodian, who is also registered with SEBI, holds the securities of various schemes of the
fund in its custody.
Sponsor:
The sponsor is the promoter of the mutual fund. The sponsor establishes the Mutual fund &
registers the same with SEBI. He appoints the trustees, Custodians & the AMC with prior
approval of SEBI, & in accordance with SEBI regulations. He must have at least five year track
record of business interest in the financial markets. Sponsor must have been profit making in at
least three of the above five years. He must contribute at least 40% of the capital of the AMC.
Trustees:
The Mutual Fund may be managed by a Board of trustees of individuals, or a trust company a
corporate body. Most of the funds in India are managed by board of trustees. While the board of
trustees is governed by the provisions of the Indian trust act, where the trustee is the corporate
body, it would also be required to comply with the provisions of the companies act, 1956. the
board of trustee company, as an independent body, act as protector of the unit-holders interest.
The trustees dont directly manage the portfolio of securities. For this specialist function, they
appoint an AMC. They ensure that the fund is managed by AMC as per the defined objectives &
in accordance with the trust deed & SEBI regulations.
Asset Management Company(AMC):
The role of an Asset management companies is to act as the investment manager of the trust.
They are the ones who manage money of investors. An AMC takes decisions, compensates
investors through dividends, maintains proper accounting & information for pricing of units,
calculates the NAV, & provides information on listed schemes. It also exercises due diligence on
investments & submits quarterly reports to the trustees. AMCs have been set up in various
countries internationally as an answer to the global problem of bad loans.
Bad loans are essentially of two types: bad loans generated out of the usual banking operations or
bad lending, and bad loans which emanate out of a systematic banking crisis.
It is in the latter case that banking regulators or governments try to bail out the banking system of
a systematic accumulation of bad loans which acts as a drag on their liquidity, balance sheets and
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generally the health of banking. So, the idea of AMCs or ARCs is not to bail out banks, but to
bail out the banking system itself.
Types of AMCs in Indian Context:
The following are the various types of AMCs we have in India:
AMCs owned by banks.
AMCs owned by financial institutions.
AMCs owned by Indian private sector companies.
AMCs owned by foreign institutional investors.
AMCs owned by Indian & foreign sponsors.
Custodian:
Often an independent organization, it takes custody all securities & other assets of mutual fund.
Its responsibilities include receipt & delivery of securities collecting income-distributing
dividends, safekeeping of the unit & segregating assets & settlements between schemes.
Mutual fund is managed either trust company board of trustees. Board of trustees & trust are
governed by provisions of Indian trust act. If trustee is a company, it is also subject Indian
Company Act. Trustees appoint AMC in consultation with the sponsors & according to SEBI
regulation. All mutual fund schemes floated by AMC have to be approved by trustees. Trustees
review & ensure that net worth of the company is according to stipulated norms, every quarter.
Though the trust is the mutual fund, the AMC is its operational face. The AMC is the first
functionary to be appointed, & is involved in appointment of all other functionaries. The AMC
structures the mutual fund products, markets them & mobilizes fund, manages the funds &
services to the investors.
A draft offer document is to be prepared at the time of launching the fund. Typically, it pre-
specifies investment objectives of the fund, the risk associated, the cost involved in the process
& the broad rules to enter & to exit from the fund & other areas of operation. In India as in most
countries, these sponsors need approval from a regulator, SEBI in our case. SEBI looks at track
records of the sponsor & its financial strength granting approval to the fund for commencing
operations.
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A sponsor then hires an asset management company to invest the funds according to the
investment objective. It also hires another entity to be the custodian of the assets of the fund &
perhaps the third one to handle registry work for the unit holder of the fund.
Registrars & Transfer Agent(R & T Agent):
The Registrars & Transfer Agents(R & T Agents) are responsible for the investor servicing
function, as they maintain the records of investors in mutual funds. They process investor
applications; record details provide by the investors on application forms; send out to investors
details regarding their investment in the mutual fund; send out periodical information on the
performance of the mutual fund; process dividend payout to investor; incorporate changes in
information as communicated by investors; & keep the investor record up-to-date, by recording
new investors & removing investors who have withdrawn their funds.

SEBI Securities and Exchange Board of India:
Securities and Exchange Board of India (SEBI) is a board (autonomous body) created by the
Government of India in 1988 and given statutory form in 1992 with the SEBI Act 1992 with its
head office at Mumbai.
The Securities and Exchange Board of India is perhaps the most important regulatory body.
Similar to the Securities Exchange Commission in the US, it is the authority that has to always
be on its toes. More so, when the markets are doing well and there are a spate of IPOs (initial
public offerings) or FPOs (follow-on public offerings) like now.
Its main mandate is to protect the interest of investors in the securities markets and to promote
the development of and to regulate the securities markets so as to establish a dynamic and
efficient securities market.
When investors have complaints against listed companies or registered intermediaries, and if
they are not solved directly between the parties concerned, or if the investor is not happy with the
response then SEBI acts as the nodal agency for addressing these complaints.
SEBI has listed certain categories of grievances for which investors can file complaints with it.
These include:
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Non-receipt of refund order or allotment advice in case of investment in IPO's, FPO's and
rights issues
Non-receipt of dividend from listed companies
Non-receipt of share certificates after transfer from listed companies
Non-receipt of debentures after transfer or non-receipt of interest or principal on
redemption and non-receipt of interest on delayed repayment
Non-receipt of rights offer letter

1.3 ADVANTAGES OF MUTUAL FUND


S.
No.
Advantage Particulars
1.
Portfolio
Diversification
Mutual Funds invest in a well-diversified portfolio of securities which
enables investor to hold a diversified investment portfolio (whether the
amount of investment is big or small).
2.
Professional
Management
Fund manager undergoes through various research works and has better
investment management skills which ensure higher returns to the investor
than what he can manage on his own.
3. Less Risk
Investors acquire a diversified portfolio of securities even with a small
investment in a Mutual Fund. The risk in a diversified portfolio is lesser
than investing in merely 2 or 3 securities.
4.
Low
Transaction
Costs
Due to the economies of scale (benefits of larger volumes), mutual funds
pay lesser transaction costs. These benefits are passed on to the investors.
5. Liquidity
An investor may not be able to sell some of the shares held by him very
easily and quickly, whereas units of a mutual fund are far more liquid.
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6.
Choice of
Schemes
Mutual funds provide investors with various schemes with different
investment objectives. Investors have the option of investing in a scheme
having a correlation between its investment objectives and their own
financial goals. These schemes further have different plans/options
7. Transparency
Funds provide investors with updated information pertaining to the markets
and the schemes. All material facts are disclosed to investors as required by
the regulator.
8. Flexibility
Investors also benefit from the convenience and flexibility offered by
Mutual Funds. Investors can switch their holdings from a debt scheme to an
equity scheme and vice-versa. Option of systematic (at regular intervals)
investment and withdrawal is also offered to the investors in most open-end
schemes.
9. Safety
Mutual Fund industry is part of a well-regulated investment environment
where the interests of the investors are protected by the regulator. All funds
are registered with SEBI and complete transparency is forced.


1.4 Disadvantage of Investing Through Mutual Funds

S.
No.
Disadvantage Particulars
1.
Risk
Association
Risk is associated while investing in mutual fund.
2. No assurance
Mutual funds, although regulated by the government, are not insured against
losses.
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3.
Difficulty in
Selecting a
Suitable Fund
Scheme
Many investors find it difficult to select one option from the plethora of
funds/schemes/plans available. For this, they may have to take advice from
financial planners in order to invest in the right fund to achieve their
objectives.


1.5 TYPES OF MUTUAL FUND SCHEMES:
By Structure
o Open-ended schemes
o Close-ended schemes
o Interval schemes
By Investment Objective
o Growth schemes
o Income schemes
o Balance schemes
o Money Market schemes
Other types of schemes
Tax Saving schemes
Special schemes
Index schemes
Sector specific schemes

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Schemes according to maturity period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.
Open-ended Fund / Scheme
An open-ended fund or scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.
Close-ended Fund / Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open
for subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.
Interval scheme
Interval funds combine the features of open-ended & closed ended schemes. They are open for
sale or redemption during pre-determined intervals at NAV related prices.
Schemes according to Investment Objective:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended schemes
as described earlier. Such schemes may be classified mainly as follows:


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Growth / Equity Oriented Schemes
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively
high risks.
These schemes provide different options to the investors like dividend option, capital
appreciation, etc. and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity schemes.
These funds are not affected because of fluctuations in equity markets. However, opportunities
of capital appreciation are also limited in such funds. The NAVs of such funds are affected
because of change in interest rates in the country. If the interest rates fall, NAVs of such funds
are likely to increase in the short run and vice versa. However, long term investors may not
bother about these fluctuations.
Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest
both in equities and fixed income securities in the proportion indicated in their offer documents.
These are appropriate for investors looking for moderate growth. They generally invest 40-60%
in equity and debt instruments. These funds are also affected because of fluctuations in share
prices in the stock markets. However, NAVs of such funds are likely to be less volatile compared
to pure equity funds.



19

Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income.
These schemes invest exclusively in safer short-term instruments such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money, government securities, etc.
Returns on these schemes fluctuate much less compared to other funds. These funds are
appropriate for corporate and individual investors as a means to park their surplus funds for short
periods.
Other Schemes
Tax Saving Schemes
These schemes offer tax rebates to the investors under specific provisions of the Income Tax Act,
1961 as the Government offers tax incentives for investment in specified avenues. e.g. Equity
Linked Savings Schemes (ELSS). Pension schemes launched by the mutual funds also offer tax
benefits. These schemes are growth oriented and invest pre-dominantly in equities. Their growth
opportunities and risks associated are like any equity-oriented scheme.
Gilt Fund
These funds invest exclusively in government securities. Government securities have no default
risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic
factors as is the case with income or debt oriented schemes.
Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive index, S&P
NSE 50 index (Nifty), etc these schemes invest in the securities in the same weight age
comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or
fall in the index, though not exactly by the same percentage due to some factors known as
"tracking error" in technical terms. Necessary disclosures in this regard are made in the offer
document of the mutual fund scheme.
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There are also exchange traded index funds launched by the mutual funds which are
traded on the stock exchanges.
Sector specific funds / schemes
These are the funds/schemes which invest in the securities of only those sectors or industries as
specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods
(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of
the respective sectors/industries. While these funds may give higher returns, they are more risky
compared to diversified funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time. They may also seek advice of an expert.


Risk
Money Market Funds
Floaters
Income Funds
Gilt Funds
MIPs
Balanced Funds
Diversified Equity
Funds
R
e
t
u
r
n
s
21




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1.6 VARIOUS CRITERIA TO EVALUATE THE MUTUAL FUNDS

The most important and widely used measures of performance are:-
Basic criterions to evaluate the mutual fund schemes
P/E ratio
Turnover ratio
Expense ratio
Standard deviation
P/E Ratio
A valuation ratio of a company's current share price compared to its per-share earnings.
(EPS).
Calculated as:

EPS is the profit that a company makes on a per share basis. So, if EPS is one, the PE ratio will
reflect the price that an investor will pay for this one rupee of the company's profits. Higher PE
ratio signifies that investor expectation from these shares is higher. This is because the growth in
share price is expected to follow earnings growth.
In general, a high P/E suggests that investors are expecting higher earnings growth in the future
compared to companies with a lower P/E. However, the P/E ratio doesn't tell us the whole story
by itself. It's usually more useful to compare the P/E ratios of one company to other companies
in the same industry, to the market in general or against the company's own historical P/E.
Turnover Ratio
The turnover ratio is the lower of the total sales or total purchases over the period divided by the
average of the net assets. Higher the turnover ratio, greater is the volume of trading carried out
by the fund.
23

The turnover ratio is more important for equity and balanced funds where the trading cost of
equities is substantial. So, each time a fund manager buys and sells, he has to keep in mind that
the cost of buying and selling will eat into the fund's returns. Dynamic equity funds, which can
move rapidly between sectors, will obviously have a higher turnover ratio. Here risk will not be
just of the fund manager making a wrong call on a sector but also that of 51turnover risk. In
comparison a passively managed fund, such as an index fund, will have a lower turnover rate
compared to an active fund as it has to just mirror the index. The only trading here will be due to
investments, redemptions and changes in the index. Also, it is not meaningful to use turnover
ratio for new schemes, which are not fully invested. As the scheme is deploying its assets there
will be more transactions, at least buy orders, as compared to a fund` which is fully invested.
Turnover ratio is less relevant for income funds as brokerage costs are much lower, and hence
they will have a lower potential to eat into returns. So, even though gilt funds may have equally
high turnover as compared to equity funds, the impact of this turnover is much less.
In Short, Turnover ratio is a measure of how a fund's portfolio changes in a year. This ratio
indicates how much a fund is trading. Understanding turnover ratio helps in gaining insights into
a fund's performance.
Expense Ratio
Expense ratio is the percentage of total assets that are spent to run a mutual fund. As returns from
bond funds tend to be similar, expenses become an important factor while comparing bond
funds.
SHARPE RATIO
St
= Rp-R
S. D.
WHERE
Rp Avereage return to portfolio
RfRisk free rate of interest
S.D- Standard Deviation
24

Sharpes performce index gives a single value to be used for the performance ranking of various
funds or portfolios. Sharpe index measures the risk premium of the portfolio relative to the total
amount of risk in the portfolio. The risk premium is the difference between the portfolios
average rate of return and the risk less rate of return. The standard deviation of the portfolio
indicates the risk.
Higher the value of sharpe ratio better the fund has performed. Sharpe ratio can be used to rank
the desirability of funds or portfolios. The fund that has performed well comapred to other will
be ranked first then the others.

TREYNOR RATIO
Ty= RpRf
B
WHERE
Rp- Average return to portfolio
Rf- Risk less rate of interest.
B- Beta coeffecient
Treynor ratio is based on the concept of characteristic line. Characteristic line gives the relation
between a given market return and funds return. The funds performance is measured in relation
to market performance. The ideal funds return rises at a faster rate than the market performance
when the market is moving upwards and its rate of return declines slowly than the market return,
in the decline.
Treynors risk premium of the portfolio is the difference between the aveage return and the risk
less rate of return. The risk premium depends on the systematic risk assumed in a portfoilo.
Standard Deviation
Standard Deviation is the most common statistical measure of judging a fund's volatility and risk.
It gives you a 'quality rating' of an average.
25

A measure of the total volatility of a fund is based on the trailing three-year monthly returns. For
debt and gilt funds it is based on average weekly return over the past one and a half years.
The Standard Deviation of an average is the amount by which the numbers that go into an
average deviate from that average. It tells us how closely an average represents the underlying
numbers. A high Standard Deviation may be a measure of volatility, but it does not necessarily
mean that such a fund is worse than one with a low Standard Deviation. If the first fund is a
much higher performer than the second one, the deviation will not matter much.
BETA
Beta describes the relationship between the stocks return and index returns. There can be direct
or indirect relation between stocks return and index return. Indirect relations are very rare.
Beta =+1.0

It indicates that one percent change in market index return causes exactly one percent change in
the stock return. It indicates that stock moves along with the market.
Beta= + 0.5
One percent changes in the market index return causes 0.5 percent change in the stock return. It
indicates that it is less volatile compared to market.
Beta=2.0
One percent change in the market index return causes 2 percent change in the stock return. The
stock return is more volatile. The stocks with more than 1 beta value are considered to be very
risky.
1) Negative beta value indicates that the stocks return move in opposite direction to the
market return.
Beta= N*XY- (X) (Y/ N(X*X) * (x)
Where
N- No of observation
X- Total of market index value
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Y- Total of return to Nav
NAV
Net Asset Value or NAV of a mutual fund is the value of one unit of investment in the fund, in
net asset terms.
NAV = Net Assets of the scheme / Number of Units Outstanding
Where Net Assets are calculated as:-

(Market value of investments + current assets and other assets + Accrued income current
liabilities and other liabilities less accrued expenses) / No. of Units Outstanding as at the NAV
date
1.7About SBI MUTUAL FUND
STATE BANK OF INDIA - MUTUAL FUND - A partner for life
SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an investor
base of over 4.6 million. With over 20 years of rich experience in fund management, SBI MF
brings forward its expertise in consistently delivering value to its investors
Proven Skills in wealth generation:
SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an enviable track record
in judicious investments and consistent wealth creation.
The fund traces its lineage to SBI - Indias largest banking enterprise. The institution has grown
immensely since its inception and today it is India's largest bank, patronized by over 80% of the
top corporate houses of the country.
SBI Mutual Fund is a joint venture between the State Bank of India and Socit General Asset
Management, one of the worlds leading fund management companies that manages over US$
500 Billion worldwide.
Exploiting expertise, compounding growth:
27

In twenty years of operation, the fund has launched 38 schemes and successfully redeemed
fifteen of them. In the process it has rewarded its investors handsomely with consistently high
returns.
A total of over 60 lakh investors have reposed their faith in the wealth generation expertise of
the Mutual Fund.
Schemes of the Mutual fund have consistently outperformed benchmark indices and have
emerged as the preferred investment for millions of investors and HNIs.
Today, the fund manages over Rs. 51,461 crores of assets and has a diverse profile of investors
actively parking their investments across 37 active schemes.
The fund serves this vast family of investors by reaching out to them through network of over
130 points of acceptance, 29 investor service centers, 55 investor service desks and 45 district
organizers.
SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent India
Opportunities Fund.
Growth through innovation and stable investment policies is the SBI MF credo.
Fund house expertise:
The investment environment is becoming increasingly complex. Innumerable parameters need to
be factored in to generate a clear understanding of market movement and performance in the
near and long term future.
At SBIMF, we devote considerable resources to gain, maintain and sustain our profitable insights
into market movements. We consistently push the envelope to ensure our investors get the
maximum benefits year after year.
Research - the backbone of our Performance
Our expert team of experienced and market savvy researchers prepare comprehensive analytical
and informative reports on diverse sectors and identify stocks that promise high performance in
the future.
This team works in tandem with a compliance and risk-monitoring department, which ensures
minimization of operational risks while protecting the interests of the investors.
28

Quite naturally many of our equity funds have delivered consistent returns to investors and have
repeatedly out performed benchmark indices by wide margins.
Risk Management Team:
The Risk Management unit is a separate division within the organization headed by the Chief
Risk Officer (CRO). A Risk Management Committee, comprising the MD, Deputy CEO, CRO,
COO, CIO and the CMO meets on a regular basis to manage risk within the organization.
The CRO is responsible for risk management over all the functions within the organization
including Investments, Marketing, Operations, etc. Currently, the CRO is an experienced
investment professional and is assisted by a two-member team, one being an investment
Professional with an MBA in Finance and the other being an investment professional deputed
from SGAM.
1.7.1 SBI- MUTUAL FUND PRODUCTS:

EQUITY SCHEMES:
The investments of these schemes will predominantly be in the stock markets and endeavor will
be to provide investors the opportunity to benefit from the higher returns which stock markets
can provide. However they are also exposed to the volatility and attendant risks of stock markets
and hence should be chosen only by such investors who have high risk taking capacities and are
willing to think long term. Equity Funds include diversified Equity Funds, Sectoral Funds and
Index Funds. Diversified Equity Funds invest in various stocks across different sectors while
Sectoral funds which are specialized Equity Funds restrict their investments only to shares of a
particular sector and hence, are riskier than Diversified Equity Funds. Index Funds invest
passively only in the stocks of a particular index and the performance of such funds move with
the movements of the index.


Magnum COMMA Fund
29

Magnum Equity Fund
Magnum Global Fund
Magnum Index Fund
Magnum MidCap Fund
Magnum Multicap Fund
Magnum Multiplier Plus 1993
Magnum Sector Funds Umbrella
MSFU - FMCG Fund
MSFU - Emerging Businesses Fund
MSFU - IT Fund
MSFU - Pharma Fund
MSFU - Contra Fund
SBI Arbitrage Opportunities Fund
SBI Blue chip Fund
SBI Infrastructure Fund - Series I
SBI Magnum Taxgain Scheme 1993
SBI ONE India Fund
SBI TAX ADVANTAGE FUND - SERIES I

DEBT SCHEMES:
Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and
Money Market instruments either completely avoiding any investments in the stock markets as in
Income Funds or Gilt Funds or having a small exposure to equities as in Monthly Income Plans
30

or Children's Plan. Hence they are safer than equity funds. At the same time the expected returns
from debt funds would be lower. Such investments are advisable for the risk-averse investor and
as a part of the investment portfolio for other investors.
Magnum Childrens Benefit Plan
Magnum Gilt Fund
Magnum Gilt Fund (Long Term)
Magnum Gilt Fund (Short Term)
Magnum Income Fund
Magnum Income Plus Fund
Magnum Income plus Fund (Saving Plan)
Magnum Income plus Fund (Investment Plan)
Magnum Insta Cash Fund
Magnum InstaCash Fund -Liquid Floater Plan
Magnum Institutional Income Fund
Magnum Monthly Income Plan
Magnum Monthly Income Plan Floater
Magnum NRI Investment Fund
SBI Capital Protection Oriented Fund - Series I
SBI Debt Fund Series
SDFS 15 Months Fund
SDFS 90 Days Fund
SDFS 13 Months Fund
SDFS 18 Months Fund
31

SDFS 24 Months Fund
SDFS 30 DAYS
SDFS 30 DAYS
SDFS 60 Days Fund
SDFS 180 Days Fund
SDFS 30 DAYS
SBI Premier Liquid Fund
SBI Short Horizon Fund
SBI Short Horizon Fund - Liquid Plus Fund
SBI Short Horizon Fund - Short Term Fund


BALANCED SCHEMES:
Magnum Balanced Fund invests in a mix of equity and debt investments. Hence they are less
risky than equity funds, but at the same time provide commensurately lower returns. They
provide a good investment opportunity to investors who do not wish to be completely exposed to
equity markets, but is looking for higher returns than those provided by debt funds.
Magnum Balanced Fund
Magnum NRI Investment Fund - Flexi Asset Plan
1.8 CHANNELS OF SELLING MUTUAL FUNDS
Mutual funds are emerging as an important financial intermediary for the investing public in
India. Conceptually and operationally they are different. The investors need to understand the
working of a mutual fund and the increasingly diverse and complex investment options brought
to them by a large number of mutual funds. The key channel in bringing the mutual funds to a
large number of investors all over the country is the network of
32

INTERMEDIARIES/DISTRIBUTORS. In this industry we have five different channels through
which mutual fund are sold:
Mutual Fund Company
National Distributors (NDs) & Intermediaries
Banks
Individual Financial Advisors (IFAs)
Internet
Each one has its own customer base. Their way of dealing with them is totally different from
other. Every one attracts in their own way. How they attract we will study. There are many
industries here. The urgency to keep increasing in size has led mutual funds to use marketing
hooks to draw investors. As we rely only on channel partners, our relation with them really is
going to play a vital role. How different companies lure the partners, well study that. As to start
with we will first study about the intermediaries in brief by describing who they are and how
they help a direct investor.
Mutual Fund Office:
Anyone can walk into a mutual funds office, and buy/sell units of its schemes. Its a simple
process, and there are employees of the fund house on hand to guide you through. If you are
buying units, you will have to fill up an application form and hand over a cheque equivalent to
your investment. The fund house will give you an acknowledgement of your investment in its
scheme(s) and subject to your cheque being cleared, send you an account statement within three
to seven days. Since a fund house market only its schemes and not those of its competitors,
buying directly means knowing which fund house we want to invest in. If we are selling units,
the relevant document is the redemption form, which sometimes forms part of your account
statement and can be torn off it, or can be had from the fund houses office. The fund house
mails the cheque within three days. The problem with transacting through fund house is that they
have a very thin presence. Most fund houses have just an office or two in the big cities;
moreover, since such offices are located in the central business district, for most investors, this
means travelling a fair distance. Its worse in smaller centres-only a few fund houses have a
33

scattered presence. But as the industry grows and gains greater investor acceptance. Mutual
funds are bound to expand beyond cities.
Intermediaries:
Distributors such as agents, banks and stockbrokers are present in much greater numbers, which
makes them the preferred option among investors. While dealing with the intermediaries, make
sure they have the AMFI (Association of Mutual Fund in India) certification-a SEBI
precondition; since September 2003, for selling mutual funds, intended t ensure that only
qualified distributors dispense mutual fund advice. AMFI issues photo identity cards to
registered intermediaries, which is proof of their having acquired the certification.
National Distributors
The big agents are one-stop sellers of financial products. Agents score over mutual funds on
convenience, choice and quality of service. They operate from multiple locations-for example,
national distributors like Bajaj Capital has more outlets than most mutual funds-and are
supported by an army of registered agents, some of whom are willing to come to our doorstop
and sell schemes to you. Further, while a mutual fund offer its schemes, a big agent has the
biggest stock among all mutual fund sellers, selling virtually all schemes of virtually every fund
house, as well as other investment products. For us, this means more choice. If we know the
scheme we want to invest in, go to an agent, fill up the schemes form and give in a cheque.
Even if we dont know which scheme we want to invest in, a good agent will understand our
need and help you pick a scheme. The agent should understand our reasons for investing in a
mutual fund and based on that offer us appropriate options, and let us make a choice. An agent is
supposed to be impartial and not show a preference towards a particular fund house. The very
nature of the relationship between an intermediary and fund houses opens up the possibility of
bias. Fund houses pay intermediaries a commission linked to the business they bring in. If fund
house X pays a higher commission than fund house Y, an intermediary might push scheme X, as
it stands to earn more. How do we know that we are being misguided or not? The entry load
charged by a scheme can offer us some clues. The entry load represents the upfront costs an
investor pays to invest in a scheme, and the agents commission tends to flow out of it. The
higher the entry load, chances are, the higher the agents commission. If the agent is pushing the
higher load scheme, perhaps he is more interested in maximizing his commission than our
returns. Hence always know the entry load being charged by a scheme. Till mid 2002,
intermediaries passed on a part of their commission to investors, as an incentive to invest. The
34

they got form the fund house, the more they passed on to investors. This often created an
unhealthy situation, where cash incentives, and not investment-worthiness, determined which
scheme, an agent recommended. In June 2002, to stop such abuse, SEBI made it illegal for
intermediaries to give money and gifts to investors. Although intermediaries cant lure you with
money now (legally speaking that is), their commission-based earnings structure means a
distributor could still be a partial to a fund house. Which is why, listen to what an intermediary to
say but also do the homework, and use your judgement to make an informed decision.
For example:- (Figures in crore.)
a) Frontline Securities Ltd.
Closing Asset in Sbimf - 38.2
Closing Asset in Industry 9479.20
b) ICICI Securities Ltd.
Closing Asset in Sbimf - 272.4
Closing Asset in Industry 2920.4
C) Bajaj Capital Ltd.
Closing Asset in Sbimf 415.9
Closing Asset in Industry 2901.6
Banks
A number of banks, especially the private and foreign ones, are into marketing the mutual fund
schemes. Many of them market not only their own schemes, but also those of their rivals as a
point of purchase; banks are a good option because of their fantastic reach-banks can be founded
in every neighborhood. This wide reach has enabled banks to emerge as a major distributor. In
1999, barely 10 percent of fresh mutual fund sales were made through banks; during 2003,
various estimates put the share of banks in mutual fund sales at between 30 percent and 50
percent. In terms of scope of service, banks are a notch below agents. Whatever your profile or
investment amount might be, an agent will offer you personalized service-he will listen to your
investment needs, offer you information on various schemes as asked by you, and suggest
investment options. However, typically a bank will not give you this option or attention, unless
35

you are a big money client and subscribe to its wealth management services. What banks will do,
unconditionally, is help you through the investment formalities like filling up a form and offering
basic information. But things are changing and banks are also giving personalized service to its
retail investors also.
Individual Financial Advisors (IFA)
Big brokers combine the attributes of agents (one-stop shop, personalized service) and banks (a
team of analyst who crack the mutual fund industry). This service, though usually comes at a
cost, and is reserved for their clients. Small brokers, on the other hand, welcome retail investors,
but most of them market schemes of select fund houses only. These are independent
professionals trained to advice you on all personal finance matters. They all sell financial
products, as agents currently do. Unlike agents, though, CFPs might charge you for their
services.
Some of IFA are as follows:
a) Yogesh Kumar Bhatia
Closing Assets in Sbimf 26.8
Closing Assets in Industry 1236
b) Vimal Agrawal
Closing Assets in Sbimf 0
Closing Assets in Industry 2603.20
c) Deepanshu Singhal
Closing Assets in Sbimf 50.5
Closing Assets in Industry 2584.20
d) Manoj Shrivastva
Closing Assets in Sbimf 28
Closing Assets in Industry 2266.30

36


The Internet
At present, around 3 percent of mutual fund transactions are done online. This figure is bound to
increase, with better Net connectivity are also expected to tie up with more banks, which will
bring more investors into the loop.The other move that will provide a fillip to online transactions
to be supplemented by physical documentation. At present, some fund houses enable buying-and
in some instances, selling on three platforms:
1. Own websites-- Most of the mutual fund houses let you buy and sell the units of their
schemes through their websites. All you need is a Net banking account with any of the banks the
fund houses have tied up with. You log on to the funds site, choose your scheme and investment
amount. A link on the website takes you to the website of the designated bank, where you make
your payment.
Money is transferred from your Net banking account to the mutual fund and units are allotted to
you instantaneously. The transaction is also documented in the physical form-the fund houses
send you the application form to sign, and send back. Once you have done an online transaction
with a fund house, you can open an online account with it. This will enable you to sell your
holdings, switch between the schemes and purchase additional units-at the click of a mouse.
2. Financial Portals-- You can also buy units of several mutual funds through financial portals
as myiris.com, timesofmoney.com and indiainfoline.com among others. The process and
requirements are similar to that of for buying through the funds site. However, most portals
enable only purchase.
3. Online trading portals-- Share trading portals like ICICI Direct (icicidirect.com) and
Sharekhan (sharekhan.com) too offer a fair number of mutual fund schemes on their platforms.
Registered user can buy or sell their units on offer, just like a stock-at no extra cost.
Following Banks sell following mutual fund product of SBI
1) HDFC
Equity Fund
Balanced Fund
Index Fund
37

Inst. Cash Fund
Monthly Income Plan
2) Citi Bank
Sbi Dynamic Bond
3) Kotak Mahindra Bank
Emerging Business fund
Equity fund
4) Axis Bank
FMCG Fund
Balanced fund
Income fund
5) ICICI
Emerging Business fund
Mangnum Income Fund
Top going Private Banks in Mutual fund
I. HDFC
II. CITI BANK
III. KOTAK & ICICI
IV. AXIS


1.9 OBJECTIVES
To know about SBI Mutual Fund.
To know about different products of SBI Mutual fund.
To know about how the products are actually traded through mutual
fund.
To know the different sources or channel through which products are
traded in SBI Mutual Fund.
38

To know the contribution made by different sources or channels to
promote SBI Mutual Fund.



Assets under management (Rs.Cr)


Mutual Funds
March 2013 June 2013 Change %
Change

HDFC Mutual Fund
101,720 104,977 3,257 3.20
Reliance Mutual Fund
94,580 97,771 3,191 3.37
ICICI Prudential Mutual
Fund
87,835 91,695 3,860 4.39
Birla Sun Life Mutual Fund
77,046 79,761 2,714 3.52
UTI Mutual Fund
69,450 74,707 5,256 7.57
SBI Mutual Fund
54,905 59,163 4,258 7.75
Franklin Templeton Mutual
Fund
41,564 41,722 158 0.38
IDFC Mutual Fund
32,886 38,938 6,052 18.40
Kotak Mahindra Mutual
Fund
35,361 37,203 1,842 5.21
DSP BlackRock Mutual
Fund
32,342 33,041 699 2.16
Tata Mutual Fund
19,897 20,883 986 4.95
Deutsche Mutual Fund
18,114 18,563 449 2.48
39

Sundaram Mutual Fund
14,871 15,459 588 3.95
JPMorgan Mutual Fund
15,856 14,883 -972 -6.13
Religare Invesco Mutual
Fund
14,202 13,811 -391 -2.75
L&T Mutual Fund
11,169 13,782 2,612 23.39
Axis Mutual Fund
12,114 12,289 175 1.44
Canara Robeco Mutual Fund
8,851 7,193 -1,658 -18.73
Baroda Pioneer Mutual Fund
7,303 7,140 -163 -2.23
LIC NOMURA Mutual Fund
7,185 6,818 -367 -5.10
JM Financial Mutual Fund
7,411 6,755 -657 -8.86
HSBC Mutual Fund
5,230 5,891 661 12.63
IDBI Mutual Fund
6,249 5,489 -760 -12.16
PRINCIPAL Mutual Fund
5,573 4,849 -725 -13.01
Peerless Mutual Fund
4,875 4,538 -336 -6.90
Taurus Mutual Fund
4,732 4,464 -267 -5.65
Goldman Sachs Mutual Fund
4,800 4,309 -490 -10.22
BNP Paribas Mutual Fund
3,726 3,841 115 3.08
Indiabulls Mutual Fund
2,639 3,219 580 21.97
Morgan Stanley Mutual Fund
2,660 3,022 361 13.59
40

Pramerica Mutual Fund
2,592 2,544 -48 -1.86
Union KBC Mutual Fund
3,118 2,477 -641 -20.55
PineBridge Mutual Fund
1,099 1,206 107 9.75
ING Mutual Fund
993 891 -102 -10.26
BOI AXA Mutual Fund
1,104 866 -238 -21.54
Mirae Asset Mutual Fund
540 524 -16 -3.00
Motilal Oswal Mutual Fund
539 491 -47 -8.76
Quantum Mutual Fund
280 292 12 4.23
Escorts Mutual Fund
255 268 13 5.01
Sahara Mutual Fund
254 244 -10 -3.76
Edelweiss Mutual Fund
259 239 -20 -7.62
IIFL Mutual Fund
210 214 5 2.18
Daiwa Mutual Fund
266 131 -135 -50.64
Total 816,657 846,563 29,906 3.53

1.10 SWOT Analysis of Mutual Fund
Strength:-
Portfolio Diversification
Professional Management
Less Risk
41

Low Transaction Costs
Choice of Scheme
Flexibility
Weakness:-
Risk Association
No assurance
Difficulty in Selecting a Suitable Fund Scheme
Opportunities:-
Good rate return
High liquidity
Investment diversification
Threats:-
Portfolio creation problem
Over Diversification problem
Asset allocation Problem
Valuation Analysis problem
Long Bias problem






42

CHAPTER-2
RESEARCH DESIGN and RESEARCH METHODOLOGY
2.1 RESEARCH DESIGN
The research design employed for the research involves numbers, so it becomes Quantitative
Research which refers to the systematic empirical investigation of social phenomena via
statistical, mathematical or computational techniques. The objective of quantitative research is to
develop and employ mathematical models, theories pertaining to that phenomenon. The process
of measurement is central to quantitative research because it provides the fundamental
connection between empirical observation and mathematical expression of quantitative
relationships. Quantitative data is any data that is in numerical form such as statistics,
percentages etc.

The research is also Descriptive in nature. Descriptive research refers to the data and
characteristics about the population being studied.
2.2 Research Methodology:
The research consists of primary data, which means the data collected is first hand in
nature. The method for the collection of primary data was by means of questionnaires designed
which were distributed to many individuals across Noida. The questionnaire was designed and
analyzed into 2 parts. The questionnaire was prepared using some part of opened ended with
maximum of close-ended questions for the generation of the experiences encountered by the
customers. The secondary data for the research was collected from various journals , research
papers and internet. The area of study for this particular project is limited to Noida Region and
for this very purpose, only four commercial bank named ICICI, RELIANCE, HDFC, CITI
BANK, KOTAK MAHINDRA have been selected.
My sample size regarding project is limited to 50 only.

43

CHAPTER-3
COMPANY PROFILE
STATE BANK OF INDIA
State Bank of India is the largest commercial bank in India in terms of assets, deposits,
profits, branches and employees. The origins of State Bank of India date back to 1806 when the
Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal
and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the
Imperial Bank of India. In 1955, the Reserve Bank of India acquired the controlling interests of
the Imperial Bank of India and SBI was created by an act of Parliament to succeed the Imperial
Bank of India.

Logo and slogan
The logo of the State Bank of India is a blue circle with a small cut in the bottom that
depicts perfection and the small man the common man - being the center of the bank's
business.
Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK
OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANK
ON US.





44

At the end of 2012-13 figures in crore in Rs.
Total assets 15,66,261.04
Total deposits 12,02,739.57
Net profits 3,299.22
Branches Approx 15,000 (This is not in crore only numbers.)
ATMs Approx 27,000 (This is not in crore only numbers.)

The State Bank Group consist of the following Associates Banks.
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of Mysore
State Bank of Patiala
State Bank of Travancore

Non-Banking Subsidiaries
Apart from its five associate banks, SBI also has the following non banking
subsidiaries:
SBI Capital Markets
SBI Cards & Payments Services Private Limited
SBI Life Insurance Company Limited
SBI General Insurance Company Limited
SBI Fund Management Private Limited
SBI Global Factor Limited
SBI Pension Fund Private Limited
SBISG Global Securities Services Private Limited
45

Capital and Shareholding Pattern of SBI






Corporate Structure of SBI
Corporate Centre
Circle
Network
Module
Region
Branch





Shareholders % of shares held
President of India 61.58
Non-residents (FIIs/OCBs/NRIs/GDRs) 11.39
Financial Institutions including Insurance
Companies/Banks etc.
12.14
Mutual Funds/Government Companies/UTI 4.82
Private Corporate Bodies 3.95
Other including Resident Individuals 6.12
46

Current Board of Directors
As on 14 January 2013, there are fifteen members in the SBI board of
directors:-

S.no. NAME DESIGNATION
1
Pratip Chaudhuri
Chairman
2
Hemant G. Contractor Managing Director
3
Arundhati Bhattacharya Managing Director
4
A. Krishna Kumar Managing Director
5
S. Visvanathan Managing Director
6
S. Venkatachalam Director
7
D. Sundaram
Director
8
Thomas Mathew
Director
9
S.K. Mukherjee
Officer Employee Director
10
Rajiv Kumar
Director
11
Jyoti Bhushan Mohapatra
Women Employee Director
12
Deepak Amin
Director
13
Harichandra Bahadur Singh
Director
Recent awards and recognitions
Best Online Banking Award, Best Customer Initiative Award & Best Risk Management
Award (Runner Up) by IBA Banking Technology Awards 2010.
Golden Peacock Award 2012 for Corporate Social Responsibility.
Best Trade finance Bank in India Award for 2012 by The Asian Banker.
Best Bank Large and Most Socially Responsible Bank by the Business Bank Awards
2009.
Best Bank 2009 by Business India.
The Most Trusted Brand 2009 by The Economic Times.
Most Preferred Bank & Most preferred Home loan provider by CNBC.
Second Award under National Award For Excellence in MSE lending by the Government
of India for 2010-11.
In the Mobile Banking space, in june 2010, the Bank received the Prestigious IDRBT
award for Best use of technology for mobile banking and payment application.
IBA Technology Award : Best Customer Initiative and Best Online Banking.
47

Competitors and other players in the field
48

CHAPTER: 4
DATA ANALYSIS & INTERPRETATION
MAY MONTH DATA OF NOIDA REGION:

Description: Maximum contribution in SBIMF closing assets is from Sbi i.e. 76% , citi
bank contribution is 0%., HDFC contribution is 1%, Axis bank contribution is 10% ,
icici contribution is 2%, kotak Mahindra contribution is 5% and Deutsche bank
contribution is 6%.

4772.9
76%
55.4
1%
0
0%
657.7
10%
110
2%
322.1
5%
355.7
6%
Closing assets SBIMF
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
4835.6
16%
4708.6
15%
8381.3
27%
4204.8
14%
4118.3
13%
2105.6
7%
2283.9
8%
Closing assets industry
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
49

Description: Maximum contribution in Mutual Fund industry closing assets is of citi bank
i.e. 27%, Axis bank contribution is 14%, Icici Bank contribution is 13%, Kotak
Mahindra contribution is 7%, Deutsche Bank contribution is 8%, Sbi Bank
contribution is 16% and HDFC contribution is 15%.


Description: Maximum contribution in SBIMF gross sales is of SBI i.e. 55%, HDFC is 1%,
Citi Bank is 0%, Axis Bank is 18%, ICICI is also almost 0%, Kotak Mahindra is
21%, and Deutsche Bank is 5%.

387
55%
8.4
1%
0
0%
127.6
18%
0.1
0%
149.6
21%
33.2
5%
Gross sales SBIMF
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
389.3
13%
615.6
21%
498.5
17%
655.1
23%
51.5
2%
482.3
17%
210.8
7%
Gross sales Industry
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
50

Description : Maximum contribution in gross sales of Mutual Fund Industry is of Axis
Bank i.e. 23%, ICICI is 2%, Kotak Mahindra is 17%, Deutsche Bank is 7%, SBI is
13%, HDFC is 21% and Citi Bank is 17%.



Description : Contribution in SBIMF net sales , SBI contribute maximum with 38%, Axis
bank with 37%, kotak Mahindra with 20% , Deutsche Bank contribution went on
negative with 3%, HDFC also on negativity with 3%, Citi Bank contribution is 0%,
and ICICI contribution is also negative with 1%.

113.9
38%
-4.8
-3%
0
0%
110.5
37%
-3.9
-1%
59.9
20%
-8.4
-3%
Net Sales SBIMF
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
95.7
10%
-63.4
-6%
120.1
12%
297.9
29%
-98.5
-10%
115.7
11%
-220.8
-22%
NET SALES INDUSTRY
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
51

Description: Contribution in net sales of Mutual Fund Industry, SBI contribution is 10%,
HDFC Contribution is 6% in negative , Citi Bank Contribution is 12%, Axis Bank
contribution is 29%, ICICI Contribution is 10% but in negative, Kotak contribution
is 11% and Deutsche contribution is 22% but in negative.

Description : 41% new SIP in SBIMF is done by HDFC, 0% by Citi,ICICI,and Deutsche ,
1% by Axis Bank,and 6% by Kotak Mahindra.


3
18%
7
41%
0
0%
1
6%
0
0%
6
35%
0
0%
NEW SIP SBIMF
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
3
2%
141
78%
0
0%
13
7%
0
0%
19
10%
5
3%
NEW SIP INDUSTRY
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
52

Description : 78 % contribution is done by HDFC for new SIP in Mutual Fund industry,
0% by Citi bank, ICICI, 7% by Axis Bank, 10 % by Kotak Mahindra, 3% by
Deutsche and 2% by SBI.


Description : Total SIP in SBIMF is done by SBI in maximum amount, then after is HDFC,
Kotak Mahindra, Deutsche Bank, Citi bank hasnt done any SIP.

Description: Total SIP in Mutual fund Industry in which HDFC has contributed 56%, SBI 20%,
Kotak & Deutsche Bank has contributed 2%, ICICI 11%, Axis 9%, and Citi Bank 0%.
955
20
0 1 4 10 9
0
200
400
600
800
1000
1200
Total SIP Sbimf
Total SIP Sbimf
963
20%
2704
56%
0
0%
453
9%
543
11%
76
2%
73
2%
Total SIP Industry
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
53


Descripttion: Maximum SIP AUM in SBIMF is done by SBI.


Description: Maximum SIP AUM in mutual fund industry is done by HDFC with 62%, SBI
with 10%, Deutsche Bank with 1%, Kotak Mahindra with 3%, ICICI with 14%, Axis
with 8% and Citi Bank with 2%.


318.2
96%
7.3
2%
0
0%
0.2
0%
1.5
1%
3.4
1%
1.2
0%
SIP AUM SBIMF
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
320
10%
1914.4
62%
57.8
2%
231.1
8%
438.2
14%
77.9
3%
36.7
1%
SIP AUM INDUSTRY
SBI
HDFC
CITI BANK
AXIS
ICICI
KOTAK MAHINDRA
DEUTSCHE BANK
54

CHAPTER 5
QUESTIONNAIRE AND ITS INTERPRETATION

Part - 1 : DEMOGRAPHICS
NAME
GENDER 1. FEMALE 2. MALE
AGE 1. 20-30 YEARS 2. 31-40 YEARS
3. 41- 50 YEARS 4. ABOVE 50 YEARS
EDUCATIONAL LEVEL
1.PRIMARY/ SECONDARY EDUCATION 2. DIPLOMA
2. GRADUATE 4. MASTERS OR HIGHER
PROFESSION 1. BUSINESS 2. SERVICE
Part 2 : Questions

1. What kind of investment you prefer most?
a. Fixed Deposit b. Mutual Fund c. Insurance d. Gold e. real estate
2. While investing your money, which factor you prefer most ?
a. liquidity b. low Risk c. High Return d. Company Reputation
3. Have you ever invested your in mutual fund ?
a.Yes b . No
If no,
If not invested in Mutual Fund then why?
a. Not aware of Mutual fund
b. Higher risk
c. Not any specific reason
If yes,
i) Where do you find yourself as a mutual fund investor?
a. Totally ignorant
b. Partial knowledge of Mutual fund
c. Aware only of any specific scheme in which you invested
55

d. fully aware
ii) How do you come to know about Mutual fund?
a. Advertisement
b. Peer Group
c. Banks
d. Financial Advisors
4. How long would you like to hold your Mutual Funds Investment?
a. 1-3 years
b. 3-5 years
c 5-10 years
d. more than 10 years
5. In which Mutual Fund you have invested?
a. SBIMF
b. HDFC
c.RELIANCE
d. ICICI
e. OTHER SPECIFY
6. In Mutual Funds which mode of investment will you prefer?
a. One time investment
b. Systematic Investment Plan
7. From where you have purchased Mutual Funds?
a. Directly from the AMCs
b. Brokers only
c. Brokers/ sub brokers
d. Through Banks
8. How would you like to receive the returns every year?
a. Dividend pay-out
b. Divdend re- investment
c. Growth in NAV
9. In which type of mutual fund schemes you have invested?
a. Debt schemes
b. Equity based schemes
c. Both
56

10. Your overall experience with SBI mutual funds.
a. Satisfactory
b. Aveage
c. Unsatisfactory
Comment:-
11. Your overall experience with XYZ mutual fund.
a. satisfactory
b. average
c. Unsatisfactory
Comment:-


5.1 DATA ANALYSIS AND DESCRIPTION :- Sample size is 50.



Description: In a sample of 50, 94% are male are male and 6% are female.





47, 94%
3, 6%
GENDER
MALE
FEMALE
57


Description :- In a sample of 50 people, 44% are between 20-30 years, 18% are between
31-40 years, 28% are between 41-50 years and 10% are above 50.




Description: In a sample of 50 people, 54% are having master degree and 46% are
graduate.



22, 44%
9, 18%
14, 28%
5, 10%
AGE
20-30 years
31-40
41-50
ABOVE 50
23, 46%
27, 54%
EDUCATIONAL LEVEL
Graduate
Masters or higher
58


Description: In a sample of 50 people, 94% are in service and 6% are doing business.




Description: In a sample of 50 people, 38% of sample prefer Fixed Deposit, 32% of sample prefer
Mutual Fund, 4% prefer Insurance , 12% prefer Gold and 14% prefer Real estate.

3, 6%
47, 94%
PROFESSIONAL LEVEL
Business
service
19
38%
16
32%
2
4%
6
12%
7
14%
1) what kind of investment
you prefer most?
Fixed Deposit
Mutual fund
Insurance
Gold
Real estate
59


Description: In a sample of 50 people 42% prefer low risk, 34% prefer high return, 12% prefer
company reputation and 12% prefer liquidity.


Description : In a sample of 50 people, 74% of people have invested in mutual fund and 26%
havent invested in mutual fund.

6
12%
21
42%
17
34%
6
12%
2) while investing your money, which
factor you prefer most?
Liquidity
Low risk
High return
Company reputation
37
74%
13
26%
3.

HAVE YOU EVER INVESTED YOUR MONEY IN MUTUAL FUND?
Yes
No
60


Description : In a sample of 50 people, 26% havent invested in mutual and among them 10%
dont have any specific reason, 12% think that it is of high risk and 4% are not aware of mutual
fund.
NOTE : from here sample would be of 37 people only as only 37 people have invested in mutual
fund.


2
4%
6
12%
5
10%
37
74%
a) If no, reason
Not aware of MF
Higher risk
Not any specific reason
NI
NI Not
interested
61


Description: In a sample of 37 people, 54% of people find themselves as having partial
knowledge about mutual fund, 24% are aware only of any specific scheme in which they have
invested, 19% are fully aware of mutual fund and 3% are totally ignorant.

Description: In a sample of 50 people, 27% of people came to know from peer group and banks,
24% of people came to know from advertisement and 22% of people came to know from financial
advisors.
1
3%
20
54%
9
24%
7
19%
b.i) where do you find yourself as a
mutual fund investor?
Totally ignorant
Partial knowledge of
mutual funds
Aware only of any specific
scheme in which you
invested
fully aware
9
24%
10
27%
10
27%
8
22%
b.ii) How do you come to know
about Mutual Fund?
Advertisement
Peer Group
Banks
Financial advisors
62


Description: In a sample of 37 people , 38% of people like to investment for 3-5 years, 32% like
for 5-10 years, 16% like for more than 10 years and 14% like for 1- 3 years.

Description: In a sample of 37 people, 38% have invested in SBIMF, 22% in HDFC,19% in
Reliance, 17% in icici and 4% in others.
5
14%
14
38%
12
32%
6
16%
4) how long would you like to hold
your mutual fund's investment?"
1-3 yrs.
3-5 yrs.
5-10 yrs.
more than 10 years
27, 38%
16, 22%
14, 19%
12, 17%
3, 4%
SBIMF
HDFC
Reliance
icici
others
5) In which mutual fund you have invested?
63


Description: In a sample of 37 people , 84% of people like to invest in SIP mode and 16% like to
invest in lump sum mode.

Description : In a sample of 37 people, 35% of people used to purchase from bank, 33% of
people used to purchase from AMCs, 16% from broker only and 16 % from brokers/Sub brokers.
6
16%
31
84%
6) In mutual funds which mode of investment will
you prefer?
one time investment
SIP
12
33%
6
16%
6
16%
13
35%
7) From where you have purchase mutual funds?
Directly from the AMCs
Brokers only
Brokers/Sub-brokers
Through Banks
64


Description : In a sample of 37 people, 62% like growth in NAV, 27% like Dividend re-
investment, 11% like Dividend payout.

Description : In a sample of 37 people, 60% like Equity based schemes, 35% like to invest in
both, and 5% like debt scheme.
4
11%
10
27%
23
62%
8) how would you like to receive the
returns every year?
Dividend Payout
Dividend re-investment
Growth in NAV
2
5%
22
60%
13
35%
9) In which type of mutual fund
schemes you have invested?
Debt Schemes
Equity based Schmes
Both
65

Note: from here sample size is 34.

Description: In a sample of 34 people, 53% are satisfy with SBIMF, 35% are feel average and
12% are unsatisfied with SBIMF.
Note: Sample here is 36.

Description: In a sample of 36 people, 50% of people have an average experience with XYZ
mutual fund, 42 % have satisfactory experience, and 8 % have unsatisfactory experience.
18
53% 12
35%
4
12%
10) Your overall experience with SBI
Mutual funds.
Satisfactory
Average
Unsatisfactory
15
42%
18
50%
3
8%
11) Your overall experience with XYZ
Mutual funds.
Satisfactory
Average
Unsatisfactory
66


CHAPTER- 6
RECOMMENDATION:-
My Research period was for two month and in that whatever I have done for my project I have
concluded that. During my research period I have gain a lot of experience and I have also seen the
effort of STATE BANK OF INDIA towards it MUTUAL FUND PRODUCT. How much they are
contributing to enhance their mutual fund products. My recommendation to the bank for
enhancing its mutual fund products is:-
STATE BANK OF INDIA is the largest bank of india . This bank is largest in terms of having
number of customer also. From my research I have concluded that most of the people make an
investment in SBIMF and maximum of the come to know about mutual fund through bank and
also purchase mutual fund through banks. So, the main source of enhancing the mutual fund is
through its bank branches.
1. All day maximum number of people comes to bank to open saving, current and ppf
account. So the bank has to train its account opening employees in mutual fund.
2. The main source of getting business or money to the bank is through its personal
banking officers. So, the bank also has to give training to these employees about mutual
fund.
3. Some of the employees view in this regard is that they dont get any target. So, they dont
used to tell customer about cross products of Bank. So, to enhance the cross product of
the bank and mutual fund product bank has to give target to its employees.
4. Employees of SBIMF also have to inform or update its client time to time about the new
introduction of the product, changes in the guidelines of SEBI etc to gain customer
loyalty.
5. Bank should provide pamphlets, put standies, hoarding in premises of the branches. So
that it will help in the promotion of mutual fund.
6. As bank is having Corporate Salary Package Account, this will help in tie-up with
corporate and also helps in booking bulk business.

67

7. Bank should motivate the employees for selling mutual fund through various campaigns
among branches & recognizing them.
8. Bank should attach either SIP form or mutual fund pamphlets along with all types of
account opening form. This will help in promoting mutual fund.
As bank is totally depend upon its branch for selling its cross product but branch is also
over burden in selling its core product. So, Branch should open a separate department in
which only cross product will be sold.
As the AMCs are totally dependent on branches for selling their product. So, SBI should
advice its AMCs to promote their product to different bank and not to depend on SBI
branches only.












68

CHAPTER- 7
CONCLUSION:

From the above data what I conclude that my sample is dominated by male group and
maximum are between 20-30 years of age. Most of them hold master degree and are doing
service.
Mostly people prefer to investment in Fixed Deposit and want to take low
risk. Maximum of the people have invested in Mutual fund and those who havent
invested in Mutual Fund think that investing in Mutual Fund means have to bear higher
risk. So, they dont used to invest in Mutual Fund. Now, those who have invested in
Mutual Fund find themselves as having partial knowledge of Mutual Fund. Most of them
come to about Mutual Fund from their peer group and banks. People like hold their
Mutual Fund investment maximum for 3-5 years. From the above data what I also
conclude that people have invested in many Mutual Fund AMCs and most of them have
invested in SBI Mutual Fund. People want to invest their money in Mutual fund through
Systematic Investment Plan (SIP) mode. They feel SIP as a easy and comfortable way of
making investment. Most of people used to purchased mutual fund products from Banks
and also directly from AMCs. They like growth option rather than taking dividend. People
like to invest in Equity based Schemes mostly. Those who have made their investment in
Mutual Fund through SBI Mutual fund have satisfactory experience and those who have
made their investment in XYZ mutual fund i.e. other than SBI mutual fund have an
average experience means that they have good return as well as bad return from their
investment.
Some of the peoples comment:-
1. MR. K P Singh thinks that while investing in mutual fund there is too much of
fluctuation & uncertainty, also there is no surety of getting Principal as it is.
2. MR. Shovik Roy thinks that it is a safe route for accumulation of wealth for
particular targets.
69

3. MR. Raj Kumar thinks that Mutual Fund industry is going from bad phase .So
have to wait for some more years .
4. MR. Vipul Patni thinks that return is very slow even after 6 years , he is in
negative.
5. MR. Krishan Chand Rana thinks that when funds used to be managed by R
Srinivasan of SBIMF, they used to provide good return.
6. MR. Ajit Kumar thinks that due to lack of knowledge about the Mutual fund
peoples are afraid to invest in it.
7. MR. Alok Mishra thinks that compare to others SBIMF working is not as much
smooth as customer want.
8. MR. Brajendra nath Vimal thinks that SBI Emerging Business Fund is very good
fund to make an investment.

From the data of month MAY, SBI has made good contribution to increase the closing assets of
SBIMF. Others Bank has also played important role to increase the closing assets of SBIMF.
HDFC in the month of MAY made a good contribution in creating new SIP for SBIMF. Axis
bank & SBI Bank has made good contribution in increasing the net sales of SBIMF. Great source
for SBIMF to get SIP is from its bank i.e. SBI Bank.













70

CHAPTER - 8
BIBLIOGRAPHY:

http://en.wikipedia.org/wiki/State_Bank_of_India
http://www.moneycontrol.com/property/
http://www.alphainvestmentadvisory.com/discretionary_advisory-benefits.html
http://economictimes.indiatimes.com/
http://www.moneycontrol.com/mutual-funds/amc-assets-monitor
http://www.sbimf.com/Index.aspx
May month data of noida region was collected from SBI Mutual Fund Pvt. Ltd. (sector- 18, noida)