BALBHARTHI’sM.J.P COLLEGE OF COMMERCETOPIC :- SBI GOLD FUNDPRESENTED BY :- VARUN MODICLASS :- T.Y.BMSROLL NO :- 23
CONTENTS INTRODUCTION TO MUTUAL FUND MUTUAL FUND OPERATION FLOW CHART ADVANTAGES DISADVANTAGES SBI MUTUAL FUND SBI CORPORATE PROFILE SBI GOLD FUND SCHEME KEY BENEFIT WHO CAN INVEST ? OBJECTIVES HIGHLIGHTS OF SCHEME ASSET ALLOCATION SYSTEMATIC INVESTMENT PLAN NET ASSET VALUE (NAV) NAV CALCULATION DISCLOSURE OF COMMISSION CONCLUSION
INTRODUCTION TO MUTUAL FUND A mutual fund is a pool of common funds invested by different investors, who have no contact with each other. A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors to purchase securities. While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment schemes that are regulated, available to the general public and open-ended in nature.
ADVANTAGES Increased diversification Daily liquidity Professional investment management Ability to participate in investments that may be available only to larger investors
DISADVANTAGES Fees Less control over timing of recognition of gains Less predictable income No opportunity to customize
SBI CORPORATE PROFILE With 25 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd. 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) - Indias largest bank. We are a Joint Venture between SBI and AMUNDI (France), one of the worlds leading fund management companies. With our network of over 222 points(centres) of acceptance across India, we deliver value and nurture the trust of our vast and varied family of investors. Excellence has no substitute. And to ensure excellence right from the first stage of product development to the post-investment stage, we are ably guided by our philosophy of ‘growth through innovation’ and our stable investment policies. This dedication is what helps our customers achieve their financial objectives.
SBI GOLD FUND SCHEME The scheme will predominantly invest in units of SBI GETS (GOLD EXCHANGE TRADED SCHEME) which is registered with SEBI (SECURITIES AND EXCHANGE BOARD OF INDIA) and / or permitted by SEBI from time to time. The scheme will also invest in money market instruments. The investment strategy would largely be active in nature.
KEY BENEFIT No need to hold or open a DEMAT account. Liquidity. Cost Effective. Assured Purity & Security. Systematic Investment Plan (SIP) available.
WHO CAN INVEST ? It is ideal for investors who would like to invest in Gold but doesn’t like the hassles and costs of storing and safeguarding physical gold. SBI Gold fund provides an opportunity for the investor, to take exposure into Gold as an asset class, in smaller and convenient investment amount without having a demat account.
OBJECTIVES The investment objective of the Scheme is to seek to provide returns that closely correspond to returns provided by SBI Gold Exchange Traded Scheme (SBI GETS).
HIGHLIGHTS OF SCHEMEType of Scheme Open ended fund of fund schemePlans / Options Growth Plan & Dividend PlanFund Manager Mr. Raviprakash SharmaDate Of Inception 12/09/2011Benchmark Index The Scheme’s performance will be benchmarked against the price of physical gold. The price here refers to the morning fixing of Gold by London Bullion Market association (LBMA).Loads Entry Load : Nil Exit Load : Exit within 1 year from the date of allotment – 1 % Exit after 1 year from the date of allotment – NilMinimum Investment Size Rs. 5000/-Minimum Redemption size Rs.1000/- or 100 Units or account balance whichever is lower.Minimum Target Amount Rs. 20 Crore.
ASSET ALLOCATION Indicative allocations Risk Profile (% of total assets)Instrument High/Medium/L Maximum Minimum owUnits of SBI GETS 100% 95% Medium to HighReverse repo and /or CBLO and/orshort-term fixed deposits and/orSchemes which invest 5% 0% Low to Mediumpredominantly in the money marketsecurities or Liquid Schemes*
SYSTEMATIC INVESTMENT PLAN Rs.100/- per month and minimum 60 months Rs.500/- per month and minimum 12 months Rs.1000/- per month and minimum 6 months Rs.500/- per quarter and minimum 12 quarters Rs.1500/- per quarter and minimum 4 quarters
NET ASSET VALUE (NAV) A mutual funds price per share or exchange-traded funds (ETF) per- share value. In both cases, the per-share dollar amount of the fund is calculated by dividing the total value of all the securities in its portfolio, less any liabilities, by the number of fund shares outstanding The net asset value (NAV) is usually used in mutual and unit trust fund describing the value of funds of assets and less the value of liabilities.
NAV OF SBI GOLD FUND - GROWTHSBI Gold Fund - Growth 10.5470 15-Jun-2012SBI Gold Fund - Growth 10.5377 14-Jun-2012SBI Gold Fund - Growth 10.5005 13-Jun-2012SBI Gold Fund - Growth 10.4158 12-Jun-2012SBI Gold Fund - Growth 10.4051 11-Jun-2012SBI Gold Fund - Growth 10.3138 08-Jun-2012SBI Gold Fund - Growth 10.4031 07-Jun-2012SBI Gold Fund - Growth 10.4839 06-Jun-2012SBI Gold Fund - Growth 10.4790 05-Jun-2012SBI Gold Fund - Growth 10.4294 04-Jun-2012SBI Gold Fund - Growth 10.2431 01-Jun-2012
NAV OF SBI GOLD FUND - DIVIDENDSBI Gold Fund - Dividend 10.5480 15-Jun-2012SBI Gold Fund - Dividend 10.5386 14-Jun-2012SBI Gold Fund - Dividend 10.5014 13-Jun-2012SBI Gold Fund - Dividend 10.4168 12-Jun-2012SBI Gold Fund - Dividend 10.4060 11-Jun-2012SBI Gold Fund - Dividend 10.3147 08-Jun-2012SBI Gold Fund - Dividend 10.4040 07-Jun-2012SBI Gold Fund - Dividend 10.4848 06-Jun-2012SBI Gold Fund - Dividend 10.4799 05-Jun-2012SBI Gold Fund - Dividend 10.4303 04-Jun-2012SBI Gold Fund - Dividend 10.2440 01-Jun-2012
NAV CALCULATION FORMULA:- Net asset value mutual fund = total assets – liabilities Net asset value per share = net asset value/total outstanding shares EXAMPLE:- Based on the market price, the mutual fund DEF has $3,576,000 total assets and the liabilities are $1,250,000. To calculate the net asset value for mutual fund DEF is the following:
CONT….... Net asset value = total assets – liabilities = $3,576,000 – $1,250,000 = $2,326,000 The mutual fund DEF’s net asset value is $2,326,000. Assuming that the total outstanding unit of mutual fund is 15,00,000. The calculation for net asset value per share for mutual fund DEF is the following: Net asset value per share = net asset value/total outstanding shares = $2,326,000/15,00,000 = $1.55
DISCLOSURE OF COMMISIONSr. No NAME OF DISTRIBUTOR Total Commission (Rs in lakhs)1. State Bank Of India 3,549.212. NJ Indiainvest Pvt Ltd 844.463. Karvy Stock Broking Ltd-Distribution Division 306.544. Bajaj Capital Limited 234.675. ICICI Securities Limited 186.826. HDFC Bank Ltd 173.707. State Bank of Patiala 171.038. Axis Bank Ltd 161.969. JM Financial Services Pvt Ltd 154.0110. State Bank Of Travancore 134.14
CONCLUSION After analysing the data we can say that 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. There is enough scope for the investors to invest money in mutual funds for the longer returns with a lesser risk factor. Mostly people has positive perception towards Mutual fund.