2. Contents
• Introduction to the Topic
• Objectives of the study
• Methodology
• Analysis and findings
• Suggestions and conclusion
• References
3. Project On SBI Mutual Funds
Title: A Study on Performance
Analysis of SBI Magnum
Tax Gain Scheme.
4. INTERNAL GUIDE: Mrs.Asha Jyothi
Assistant Professor, Dept of MBA
EXTERNAL GUIDE: Mr. k.Thimma reddy
ISD-Head
5. ABOUT MUTUAL FUND
“Mutual fund is a common pool of money in which
investor place their contribution that are to be invested
in accordance with the stated objective. The fund
belongs to all the investors depending on the proportion
of his contribution to the fund.”
6. Tax saving scheme
SBI Magnum Tax gain scheme is an open-ended
Equity Linked Savings Scheme helps the investors to
save tax under 80C of Income Tax Act.
It has a lock-in period of 3 years.
This fund helps investors to address two critical
issues:
• Tax planning
• Wealth creation
7. INDUSTRY PROFILE
• Year of Start/
UTI Formation : 1963
• Initiated by : Govt of India/RBI
• Regulated by : SEBI
• First Phase : (1964-87)
• Second Phase : (1987-1993)
• Third Phase : (1993-2003)
• Fourth Phase : (Since February 2003)
8. • SET UP DATE JUN-29-1987
• INCORPORATION DATE FEB-07-1992
• SPONSER STATE BANK OF INDIA
• TRUSTEE SBI MUTUAL FUND TRUSTEE
COMPANY PRIVATE LIMITED
• CHAIRMAN Mr. PRATIP CHUDHRI
• CEO/MD Mr. DINESH KUMAR KHARA
• COO Mr. ARUN AGARAWAL
• NO. OF BRANCHES 161 ACROSS 27 STATES & 4 UNION
TERRITORIES
• TOTAL EMPLOYEES 600
COMPANY PROFILE
9. Review of literature
Capon et al 1992 - modern finance theory .
Purchase decisions are on the basis of investors beliefs
regarding the future return and risk of those assets.
Markowitz 1959 - multi attribute framework
Where return and risk are merely two aspects of a set of
attributes whose importance varies across consumers
10. Need for the study
• Generally most of the investors investing in mutual funds in
order to avail tax benefits and also to earn returns, in this
connection they would park their funds in the tax saving
schemes.
• A study required to analyze the performance of SBI Tax
Saving Scheme to fulfill the objectives of the investors. Hence
the study has been undertaken.
• The study can helpful to the investor to predict the
performance of the SBI Magnum Tax Gain Scheme.
11. Scope of the Study
• My study is confined to only Tax saving scheme in
SBI Mutual funds.
• The study will also helpful to predict the
performance of the SBI Tax Saving Schemes in
future.
• Considers performance evaluation of tax saving
scheme based on measures-Mean, Standard
Deviation, beta, Sharpe and Treynor.
12. Objectives of the study
• To evaluate the Historical performance of Tax gain
scheme by using different statistical models.
• To find out the Performance of Tax gain scheme with
relation to Bench mark (BSE-100).
• To project the future trend of Tax gain scheme in
terms of risk and return.
• To know the benefits of investing in Tax gain scheme.
13. Research Methodology
• The study is purely based on secondary data.
• Type of Research : Descriptive Research
• Method of Descriptive Research : secondary data
(quantitative manner)
: Observational method
• Data collection : secondary data
• For secondary data collection the research instruments used are:
• Www. AMFIindia.com
• www.money control .com
• www.SBIMF.com
14. Limitations
• The study has been confined to limited time period
i.e., May month only.
• My study purely based on secondary data.
• The study is confined to data available from fact
sheets and websites.
• There is less period of time to analyze the future
performance of Tax saving scheme.
• Micro level data have been considered for analyzing
the facts.
17. Performance of fund returns with Benchmark
returns
-50
-40
-30
-20
-10
0
10
20
30
40
50
2011 2012 2013 2014 2015
R(X)
R(Y)
R(X) : Benchmark returns
R(Y) : Fund returns
18. Interpretation
• From the above table, we came to know that SBI Magnum Tax
Gain fund is performing low in 2015 compared to 2012 and
2014.
• The risk % for SBI Magnum Tax Gain Scheme is gradually
decreasing from 2011 to 2014 and again it starts increasing in
2015.
• Also we can analyze that the fund performance is good for the
period 2011 to 2014 based on Treynor and Sharpe ratio.
19. Findings
Based on different tools such as:
• Mean : SBI Tax Gain Scheme is yielding high returns in
the year 2014( i.e., 38%) and low returns in the year 2011( i.e.,
-32%).
• Standard Deviation: SBI Tax Gain Scheme is having high risk
in the year 2011 (i.e., 25.7%) and low risk in the year 2014
(i.e., 11.9%).
• Beta values: SBI Tax Gain Scheme having high risk compared
to market returns in the year 2015 (i.e., 1.08%) and low risk in
the year 2011 (i.e., 0.79%).
20. Suggestions
• SBI Tax Gain fund is having high risk, so investors are
cautioned about investing in this to earn high returns.
• SBI tax gain has to be revised the portfolio to increase fund
returns.
• Fund Manager should take more efforts on spreading
awareness about options in ELSS as these investment
instruments provides a higher return with tax saving.
• I suggest preferring ELSS scheme with SIP plan. It provides
more returns and less Tax burden to the investors.
21. Conclusion
• Mutual funds are one of the best options to invest the
hard core savings of the investors.
• SBI Tax Saving Scheme is one of the best plans for
Tax payers. It is performing well but it yields low
returns in 2015 compared to 2014 due to many
external factors and it is having moderately high risk.
• Even though, it is the best scheme suggestible to the
investors who are interesting to avail Tax benefits.
22. References
For gathering the information to my project research the
following websites and books are referred:
• www.SBIMF.com
• www.moneycontrol.com
• www.valueresearch.com
• www.amfiindia.com
• NSE historical data
• Factsheets of SBI Mutual funds
• Annual reports of SBI
• Records
