Summer Internship Project

Presentation
On
A Study On SBI Mutual Fund

Presented By:
Rajat Koul
Roll No 49

ABOUT SBI MUTUAL FUND

With 28 years of rich experience in fund management, SBI Funds
Management Pvt. Ltd. bring forward expertise by consistently
delivering value to our investors. It has a strong and proud
lineage that traces back to the State Bank of India (SBI) - India's
largest bank. It is a Joint Venture between SBI and AMUNDI
(France), one of the world's leading fund management
companies.
The mission has been to establish Mutual Funds as a viable
investment option to the masses in the country.
SBI Funds Management has emerged as one of the largest player
in India advising various financial institutions, pension funds, and
local and international asset management companies.
SBI Funds Management was the 1st bank sponsored asset
management company fund to launch an offshore fund called
'SBI Resurgent India Opportunities Fund' with an objective to
provide our investors with opportunities for long-term growth in
capital, through well-researched investments in a diversified

INVESTMENT STRATEGIES
1.Systematic Investment Plan: under this a fixed
sum is invested each month on a fixed date of a
month. Payment is made through post dated
cheques or direct debit facilities. The investor gets
fewer units when the NAV is high and more units
when the NAV is low.
2. Systematic Transfer Plan: under this an
investor invest in debt oriented fund and give
instructions to transfer a fixed sum, at a fixed
interval, to an equity scheme of the same mutual
fund.
3. Systematic Withdrawal Plan: if someone
wishes to withdraw from a mutual fund then he can

Schemes Of SBI Mutual Fund

A. Equity Schemes :

SBI
SBI
SBI
SBI
SBI
SBI
SBI
SBI
SBI
SBI
SBI
SBI

Blue-chip Fund
Magnum Balanced Fund
Magnum Global Fund
Magnum Midcap Fund
Magnum Tax Gain Scheme
Contra Fund
Magnum MultiCap Fund
Magnum Comma Fund
Emerging Businesses Fund
FMCG Fund
I.T Fund
Small and Midcap Fund

B. Debt & Liquid Schemes:

SBI Magnum Monthly Income Plan

SBI Magnum Income Fund

SBI Magnum Children Benefit Plan

SBI Ultra Short term Debt Fund

SBI Short term Debt Fund

SBI Savings Fund

SBI Dynamic Bond Fund

SBI Regular Savings Fund

SBI Corporate Bond Fund

OBJECTIVES OF THE STUDY

To analyze the awareness level of investors of mutual funds.
An attempt has been made to measure various variables
playing in the minds of investors in terms of safety, liquidity,
service, returns, and tax saving.
To get insight knowledge about mutual funds
To know the awareness of mutual funds among different
groups of investors.
To find out the Preference of the investors for Asset
Management Company.
To know why one has invested in SBI Mutual Funds.
To study the general criteria for investing and applying in
Mutual Funds.

RESEARCH METHODOLOGY:
PROBLEM: The problem at hand was to study and measure the
awareness level of people regarding mutual funds in the city.
Research Design : Descriptive
Data Sources: Mainly Primary Data in the form of
survey but some fact sheets of mutual funds (SBI) were
referred for secondary data
Research Instrument : Questionnaire
Sampling Unit: I have completed my survey in
Jammu City, J&K
Sample Size: The sample consisted of 50
respondents. The sample was drawn from walk in

DATA ANALYSIS & INTERPRETATION:

1) Do you invest your saving in mutual fund? (Investment
Willingness)
Investment

Number Of
Respondents

Yes

34

No

16

Total

50

Investment
Yes

No

32%
68%

68% of all the respondents invest in mutual fund. 32%

of our total respondents who do not invest in any
mutual fund at all.

2) Do you have complete information about mutual fund?

(Awareness Level)
Information
Yes
No
Not Much
Total

Number Of
Respondents
28
12
10
50

Chart Title
Yes

No

Not Much

20%

56%
24%

56% of all the respondents have complete information of

mutual funds. We have got 24% of our total respondents who
do not have complete information of mutual fund at all and
20% of our total respondents have some information of mutual
fund.

3) Are you an investor, who is interested in

getting good deduction from tax? (Interested in
Interested in tax deduction
Tax Deduction)
Information

Number Of
Respondents

Yes

45

No

Total

50

No; 10%

Yes; 90%

90% of all the respondents are interested in getting

good deduction from tax. We have got 10% of our
total respondents who are not interested in getting
good deduction from tax at all.

4) Do you know mutual fund is a good instrument of tax

saving? (Awareness for Tax saving)
Investment
Yes
No
Total

Number Of
Respondents
38
12
50

Tax Saving Awareness

Yes

No

24%
76%

76% of all the respondents knows mutual fund is a

good instrument of tax saving. We have got 24% of our
total respondents who are mutual fund is a good
instrument of tax saving.

5) Among which of the following income group you

fall? (Income Group)
Income group
Upto 1,00,000
1,00,001-2,00,000
2,00,001-3,00,000
3,00,001 & more
TOTAL

Number Of
Respondents
12
30
5
3
50

60
50
40
30
20
10
0

24% of all the respondents fall under income group of less than
1,00,000. We have got 60% of our total respondents fall under
income group of 1,00,001-2,00,000 and 10% of our respondents
fall under income group of 2,00,001-3,00,000 while 6% of our
respondents fall under income group of 3,00,000 & more.

6) Which are the investments you hold at present?

(Investment Holding)
Investment
Equity market
Mutual fund
Govt. bond
Real estate
Bank FD
Post office
Insurance

Number Of
Respondents
10
27
0
4
24
13
22

60
50
40
30
20
10
0

We observed that many respondents invest in more

than one instrument of saving. The people are not
channelizing all of their savings in just one Investment
Avenue.

7) What is the Basic purpose of your investments? (Purpose

for Investment)
Investment
purpose
High return
Tax benefit
Saving
Wealth creation
Risk
diversification
Total

Number Of
Respondents
10
9
22
5
4

45
40
35
30
25
20
15
10
5

50

20% of all the respondents Invest for the purpose of high

return, 18% Invest for the purpose of tax benefit, 44% Invest
for the purpose of saving, 10% Invest for the purpose of wealth
creation , 8% Invest for the purpose of risk diversification.

8) What returns do you receive at present from all your

investments? (Returns from Investment)
Investment
Returns
Less than 5%
5%-10%
10-15%
15%-20%
Greater than 20%
Total

Number Of
Respondents
2
32
10
3
3
50

Less than 5%
5%-10%
10-15%
15%-20%
Greater than 20%

4% of all the respondents get less than 5%, 64% of

all the respondents get between 5%-10%, 20% of all
the respondents get between 10%-15%, 6% of all
the respondents get between 15%-20% and 6% of
all the respondents get more than 20%.

9) Which types of funds would you like to prefer for your

investment in mutual fund? (Fund Preference)
Investment
preference
Equity fund
Debt fund
Balanced fund
Total

Number Of
Respondents
32
6
12
50

Fund Preference
Equity Fund
Debt Fund
Balanced Fund
24%
12%

64%

64% of all the respondents prefer investment in equity

fund, 12% of all the respondents prefer investment in
Debt fund, and remaining 24% of all the respondents
prefer investment in balanced fund.

10) Give your preference for tax saving plan of SBI

Mutual Funds ? (SBI Tax saving Plan)
Investment
Number Of
Preference for SBI Respondents
Most preferred
6
Favorably
8
preferred
Preferred
22
Least preferred
6

45
40
35
30
25
20

Not preferred

15

Total

50

10
5
0

A large number of investors prefer SBI tax plan.

RECOMMENDATIONS AND
SUGGESTIONS

Customer education of the salaried class individuals is far

below standard. Thus Asset Management Companys need
to create awareness so that the salaried class people
become the prospective customer of the future.

Schemes with high equity level need to be targeted towards

self employed and professionals as they require high
returns and are ready to bear risk.

Salary class individuals are risk averse and thus they must
be assured of the advantage of risk diversification in
Mutual Funds.

Time to time presentation/training classes about the

products should be there.

There should be more number of Relationship Managers in

different Regions because one RM can handle a maximum

Findings:

The age group of 31-44 years were more in numbers.The

second most investors were above 45 years and the least were
in the age group 21-30 yrs.

Most of the investors are graduate or post graduate and people

below HSC are very few in numbers.

Most of the investors preferred SIP mode of investment than

one time investment.

Most of the investors invested in the SBI MF just because of the

goodwill of SBI.

Most preferred portfolio was equity and the second most being
balanced.

From the company data and interaction with customers,it was

revealed that UTI is the main competitor for SBI MF.

Conclusion :
During my 2 months tenure at SBI MF, I came across
many people who believed investing in mutual fund
markets is risky but they are still investing for high
returns.
People invest in those companies where they have
faith or they are well known with them.
Financial advisors and brokers are the main preferred
channels of distribution for the customer
There are many AMCs in Jammu but only some are
performing well due to brand awareness.
Only those people invest directly who know well
about mutual funds and its operations.

Bibliography & Webliography:

Books
Handbook of SBI Mutual Funds
Websites
https://en.wikipedia.org/wiki/Mutual_fund
https://www.sbimf.com/AboutUs.aspx
https://www.sbimf.com/Downloads/Product_Brochures.aspx
http://www.moneycontrol.com/mutual-funds/amc-details/SB
http://profit.ndtv.com/mutual-funds/sbimutualfund-amc-details_sbi
http://www.indiainfoline.com/mutualfunds/fundhouses/sbi-mutualfund/47408592

Journals
Journal of Business Management, Commerce & Research Comparative
study of SBI Mutual Funds & Unit Trust of India
(http://www.jbmcr.org/pdf/JBMCR-DEC-13-04.pdf)

Thank you