state bank of india mutual fund


Published on

Published in: Economy & Finance, Business
  • Be the first to comment

No Downloads
Total views
On SlideShare
From Embeds
Number of Embeds
Embeds 0
No embeds

No notes for slide

state bank of india mutual fund

  2. 2. BRIEF ABOUT MUTUAL FUNDS A mutual fund is not an alternative investment option tostocks and bonds; rather it pools the money of severalinvestors and invests this in stocks, bonds, moneymarket instruments and other types of securities. Buying a mutual fund is like buying a small slice of abig pizza. The owner of a mutual fund unit gets aproportional share of the fund’s gains, losses, incomeand expenses.
  3. 3. SBI MUTUAL FUND SBI mutual fund private limited is a joint venturebetween „The State Bank of India‟ and SocieteGenerale Asset Management (France) . The fund manages over Rs. 42,100 crores ofassets and has a diverse profile of investorsactively parking their investments across 38 activeschemes.
  4. 4. STATE BANK OF INDIA – SWOTANALYSISState Bank of India is the leadingcommercial bank in India, offeringservices such as retailbanking, commercialbanking, international banking andtreasury operations. The bank is theintegral part of State BankGroup, which offers additional servicessuch as mutual funds and insurance
  5. 5. STRENGHTS:- Goodwill of the company SBI is the largest bank in India in terms of marketshare, revenue and assets. Strong market position which sustains customer‟sconfidence Strong capital position It has a wide distribution network. It is government owned. Recently bank did well on loan recoveries and lookspromising in its future earnings.
  6. 6.  WEAKNESS:- Employees show reluctance to solve issuesquickly. Customers‟ waiting period is long when comparedto private banks It lags modernisation Recently it has been seen that, higher provisionsagainst Non-performing assets(NPAs) andmarginal growth in other income dented the bank‟sprofit margin
  7. 7.  OPPORTUNITIES:- Merger of associated banks with SBI The bank is modernising few of its bankingoperations, there is a better scope of using advancedtechnologies and software to improve customer relations New branches, ATMs and various types of other servicesprovided by SBI like GCC, GRC, Agriculture gold loan etc. Expansion on foreign soil. Young and talented pool of graduates and B schools are inrise to open new horizon to so called “old government bank” THREATS:- Customer prefer to switch to private banks and financialservice providers for loans and mortgages, as SBI involvesstringent verification procedures and take long time forprocessing.
  8. 8. SBI MUTUAL FUND-SWOT ANALYSIS SBI Mutual Fund is one of the premier fundhouses in India The fund serves its vast family of over 3.5 millioninvestors by reaching out to them through anetwork of over 100 points of acceptance, 26investor service centres, 33 investor servicedesks, 52 district organisers and 2 OverseasOfficial Points of Acceptance located in Doha andDubai.
  9. 9. STRENGTHS SBI Mutual Fund has created an identity of its own by proposingand practicing customer care, financial inclusion and governanceof the highest standards. In the industry out of 37 to 36 ENP‟s state bank of India mutualfund is on the 6th position. State bank of India Mutual Fund schemes are been managed bysome other private banks.(HDFC,ICICI,YES BANK,KOTAK) SBI mutual funds are great funds to invest in. It is very stable fundthat is sure to grow throughout the years . The Indian Bank is not tied to the United States‟ economy. This isprobably a large factor because the United States‟ economy is sounsteady, but the SBI mutual funds still remain strong. SBI also provides one of the strongest research departmentsamong all other mutual funds, which also aides in the reliability ofthe mutual funds and helps keep it strong through economic trialsand downfalls.
  10. 10. WEAKNESSES Most of the Mutual Fund that SBIMF Companyoffers are known as „open-ended „mutual fund.(means one can buy or sell shares of the funddirectly with the company ), because of one of thelimitations of open ended mutual fund , they areonly priced once per day , at the close of businessas a result one cannot sell a SBIMF until the closeof business day. The greatest limitation in a SBIMF which one canface is the skill of the investment manager. The investment return is limited to the skill of themanager.
  11. 11.  OPPORTUNITIES:- Therefore, SBIMF is planning to open the ISB andIST‟s in model town for customer‟s convince. Country‟s largest lender SBI will invest in highquality stocks only which have good tradingvolumes and less volatility. THREATS:- Threats are from the private companies which areleading in mutual funds and people believe morein investing the mutual funds of HDFC.
  13. 13.  In the month of October of previous year i.e. 15 oct2012 to 15Jan 2013 SBIMF started a campaign which was called“Lakshya –I”, where various branches of RBOPanchkula, sirsa, rohtak, panipat and hissar participated in thecampaign . Therefore taking the Panchkula region , 4 branches weredivided into Performing and Non – performing branches.
  14. 14. Branch Code Branch Name DEBT Equity Grand TotalSBI1509 Sector-10,pkl 4,195,828.57 52,000.00 4247828.57SBI6157 Sector-17,pkl 250,000.00 250000.00SBI10374 Sector-20,pkl 3,110,456.89 40,000.00 3150456.89SBI4172 Sector-14,pkl 675,000.00 675000.00Non-performing branches:-State Bank of India , P.B.B sector-14State Bank Of India –IND.ESTATE,sector-17 PanchkulaPerforming branches:-State Bank of India , sector-20State Bank Of India –sector-10 ,Panchkula
  15. 15.  Reasons for their non- performance when asked:- Sector-14; gave reasons for their non-performance as :- sector-14, is the personal banking branch there are no salary accounts there are only VIP customers more of the customers in this branch is senior citizens therefore, they believe in secureinvestment. They have more investment in DEBT, which are secure govt. bonds with less risk. The customers who visit this branch usually believe in Fixed Deposit.(magnum) As there are more of the senior citizens they give reasons that they have one member inforeign country, so no interest in the investments in Mutual Fund. The returns are getting down which results in more principal. Sector-17; gave reasons for their non-performance as :- Customer mostly goes for SBI life insurance policy. Schemes are loss making and therefore principal amount is declining. There is 25% deduction in Funds management Number of CIF is less.
  16. 16.  Strategies for their performance when asked:- Sector-20; gave strategies for their performance as :- They have qualified staff. Display of mutual fund schemes is available Diversification. Sector-10; gave strategies for their performance as :- Footfall of customers is more. Customers are interested in the new investments. Provide more information in Mutual Funds Have a qualified staff.
  17. 17. OBJECTIVE AND SCOPE OF THESTUDY Objectives of this study To know the awareness and interest of MutualFund among people. To find out the preferences of the investors forAsset Management Company. To know about the customers preference‟s ininvestments. To find what should be done to boost SBIMutualFund .
  18. 18. Scope of the study A big boom has been witnessed in Mutual Fund industry. A largenumber of new players have entered the market and trying togain market share in this rapidly improving markets. The research was carried on in Panchkula. I had been sent atzonal office, DGM secretariat, Panchkula and from there to allfour branches of State Bank Of India where I completed myProject Work. I surveyed on my project topic “SBIMF business in SBI –SWOT analysis ” on visiting the customers as well as on thesales executives , staff of State Bank of India , staff of BharatElectronics Limited, employees of HSIIDC The study will help to know the preference of thecustomers, which company , portfolio , mode of investment, option for getting return and so on This project report may help the company to make furtherplanning and strategies and will help in knowing Mutual Fundbusiness in SBI.
  19. 19. RESEARCH METHODOLGY This report is based on primary as well as secondary data .One ofthe most important use of research methodology is that it helps inidentifying the problem , collecting , analysing the requiredinformation data and providing an alternative solution to theproblem. The research was performed to find out the actualityfrom the investors about what they think about variousinvestment options.Data source:- Research is totally based on primary data. Secondary data is usedonly for the reference. The research has been done by the primarydata by interacting with various people. The secondary data hasbeen collected through various websites.Duration of study :- The study was carried out for a period of 2 months and 5days, from 26th March to 31st May 2013.
  20. 20.  Sampling:- Sampling procedure :- The sample was selected from the people who are thecustomers, staff members of State Bank Of India, staff of BEL,staff of Amar Ujjala , staff of HSIIDC , irrespective of thembeing investors or not or availing the services or not. Sample size :- The sample size of my project is limited to 100 people. Sample design :- Data has been presented with the help of bar graphs, pie charts,line graphs, etc.
  21. 21. RESPONDENTS OF PANCHKULA INVESTEDIN DIFFERENT INVESTMENTSFixed DepositsMutual FundPost OfficeShares/ Deb.Gold/ Silver 53% of the respondents invest in fixed deposits , Whereas 38 % of them have a investment in gold / silver, 34% invest in MutualFund. 15% of them have invested in real estate and 14% of them have investment in shares/ debentures whereas 5 % of them invest in post offices.
  22. 22. PREFERENCE OF RESPONDENTS OF PANCHKULA WHILEINVESTINGNo. of RespondentsLiquidityLow RiskHigh ReturnTrust 43% of the respondents prefer high return while investing Whereas, 34 % of them prefer low risk and 18%of them prefer liquidity whileinvesting . 17 % of them prefer to trust while doing any kind of investment
  23. 23. AWARENESS ABOUT MUTUAL FUNDS AND THEIROPERATIONSNo. of RespondentsYesNo From above it can be inferred- out of the sample size of 100 60 % of them are aware about Mutual Funds whereas 40% of them people are notaware about the Mutual Funds and their operations
  24. 24. INVESTORS INVESTMENT IN MUTUAL FUNDNo. of investorskotakrelianceHDFCAxis BankSBIMF The above number depicts that , among 48 investors only 28 of them haveinvested in SBIMF , whereas 12 of them have invested in HDFC , 7 of themin reliance , 2 of them in kotak and 1 have invested in Axis bank.
  25. 25. PREFERENCE OF THE INVESTORS FOR FUTUREINVESTMENT IN MUTUAL FUNDNo. of InvestorsICICIkotakrelianceHDFCAxis BankSBIMF 84 of them shown their interest in future investment. When asked for the Asset Management Companies 48 of them showed interest inSBIMF whereas 13 of them with Reliance, 9 with HDFC and ICICI, 3 with Axisand 1 with Kotak. Therefore, some choose the double options
  26. 26. MODE OF INVESTMENT PREFERRED BY INVESTORS OFPANCHKULANo. of investorsOne timeinvestmentSystematicinvestment planThe preferable mode of investment by the investors ofPanchkula is systematic investment plan .As 33 of them chose this while 9 of them preferred to gowith one time investment.
  27. 27. PORTFOLIOS THAT WOULD BEPREFERRED BY THE RESPONDENTSNo. of InvestorsDebt portfolioHaving debt andequity bothEquity portfolio The portfolios funds by the respondents for future investment was equityportfolios as 40 of them chose this option , while 27 went with thebalanced option of having debt and equity both while 22 of them went fordebt portfolio
  28. 28. PREFERENCE OF INVESTORS WHETHER TO INVEST INSECTORIAL FUNDSNo. of respondentsYesNo When asked about the investment in sectorial funds 79 of them will not beinvesting in it, While 13 of them would invest in these funds. Where 8 of t hem did notrespond to the question
  29. 29. REASONS FOR NOT INVESTING IN SECTORIALFUNDSNo. of respondentsRiskLess concern ofthe bankerLong processNo awareness The number depicts that 44 of them have no awareness of sectorial funds whenasked the reasons for not investing. While 13 of them said that there is risk, 8of them gave reason that it is a long process while 1 said there is less concernof the banker.
  30. 30. Findings In Panchkula; the age group of 51-60; were more in numbers.The second most investors were in the age group of 20-30years and the least were in the age group of below 30years. In Panchkula, most of the Investors were Post Graduate andunder Graduates were very few in number. In Occupation groups most of the Investors were governmentemployees and the second most Investors were privateemployees.. About 43% invest their money for high returns.Therefore, according to the latest news, more and moreinvestors today are investing in MF expecting high returns andlow risk coverage and 34% of them prefer low risk as factor.
  31. 31.  Among 60% of the people who are aware of the mutual funds and theiroperations, when asked about the source of information; 23% said frombanks, where 21% from advertisements. About 28% of them have invested in SBI Mutual fund and when asked about thereasons of investment about 25% gave reason that SBIMF is associated withSBI. Mode of investment preferred by the investors of Panchkula is SIP (about 33%). As an investor about 22% of them check their returns of MF on Monthly basiswhile the means to check the returns is email at about 40%. The preference of investors whether to invest in sectorial funds were 79% saidno and when asked for the reason about 44% of them had no awareness. Therefore, at this time there is not much increase, therefore it is better to investin fixed deposits and post offices. Most of the time the investment in MF is negative, because high expenses aredebited by the management of these funds. Thereafter it is better to invest directly into equity funds. MF is a long time investment and it should be preferably through SIP. STDR is the best plan to invest money into.
  32. 32. Recommendations Mutual Fund offers a lot of benefits; there are manypeople who just see it as another option. Therefore‟ theadvisor should target more of the young investors. MF Company should give a training to IndividualFinancial advisors about the fund/scheme because theyare the main source to influence the investors. The advisor should focus on the balanced portfolios andshould encourage customers to make the investment.
  33. 33.  In case of different non-performing branches, they should:- Increase CIF( customer information file ) The staff members are required so that a customer should get more informationabout MFs. The advisors should have full knowledge about the investments and the risksinvolved Thereafter, when the branches were visited there was no display about MFschemes, which should be there. Even if a branch has more of senior citizen customers they can be encouraged formore of Debt Funds, instead of Fixed Deposits. Investors are totally unaware of sectorial funds; the AMCs should also encouragetheir customers for sectorial funds have more of Risk but more of return on the samehand. The customers should first be encouraged in SIP; and should more targets on the agegroup of 35 years around and more of graduates as they can be manipulated ontrying some new investments. SIP; is not for long period . it is good for initial investors. The MF Company should give training to the staff and give some time period in theoffice hours to do the MF business and approach to the customers.
  34. 34.  Besides the project given, there were other tasks performedby me in this department. I was supposed to call the Branch Managers of various RBOs(Panchkula, rohtak, panipat, sirsa, hissar) and was supposed toknow about the targets achieved by them in a campaign oflakshya -2 ( feb 1 to 28th march ), which includes the name ofthe branch, targets , lump sum and target SIP number. I was supposed to get the details of CIF of all the accountholders of a joint account , where users need to perform aquery through customermanagement., relationship/ownership, associated accountswhich was further categorised under customer details , activeaccounts .
  35. 35.  I was supposed to prepare a banner and invitation cardfor felicitation function.(therefore , I learnt to makeinvitation card and banner in Hindi language) I was supposed to make the presentation of financesmade on the particular month which included theprogressive report of internet banking, etc. which wasshown to DMD, Mr Shayamal Acharya
  36. 36.  I was supposed to do entries in the register and to type variousletters which were sent to various other branches or regions ofSBI, the letter includes the business letters, notes etc. I was supposed to make 3 presentations for the felicitationfunction. Therefore these presentation was shown to DGMs,AGMs,GMsof various network and Chief managers , Branch Managers andvarious other people on different posts. For that I was awarded and was given a letter of appreciationby DGM and AGM.
  37. 37.  For the comparative analysis between PNB and SBI, I went tothe head office of PNB, Chandigarh, I had an interactivesession with the senior manager of marketing depart. Mr Anil. I visited Bharat Electronics Limited, HSIIDC and otherbranches of SBI for the questionnaire. I even visited the 4 branches of SBI Panchkula region for thecomparative analysis of performing and non- performingbranches.
  38. 38. STEPS TAKEN BY THE BANKTHROUGH PROJECT They will increase the number of CIF They will try to make provision of Mutual Fund inSector -8 The display of Mutual Fund will be done not only inthe branches of Panchkula but also in other regions The training will be given to the investment advisors Moreover , separate timings will be given to specificpeople who will only deal in Mutual Funds in certainperiod of time during office hours.
  39. 39. THANK YOU