2. Project On SBI Mutual
Funds
Title: Study on Performance
Analysis of Tax Saving
Scheme at SBI mutual fund

3. INTERNAL GUIDE: Mrs.Asha Jyothi
Assistant Professor, Dept of MBA
EXTERNAL GUIDE: Mr. k.Thimma reddy
ISD-Head, B.Com

4. 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.”

5. How Mutual Fund Works?

6. Mutual fund
Types
Types
By
Constitution
Close
Ended
Open
Ended
Interval
By
Investment
objective
Equity
funds
Debt
funds
Cash
funds

7. 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

8. INDUSTRY PROFILE
Year of Start/
UTI Formation : 1963
Initiated by : Govt of India/RBI
Regulated by : SEBI

9. FIRST PHASE: (1964-87)
1978 - UTI was delinked from RBI( under the
control of IDBI).
1964 - 1st scheme was launched by UTI.
1988 - UTI had Rs.6700crores of AUM.
SECOND PHASE: (1987-1993)
Entry of PSF
1987 - Entry of NON-UTI,PSB,LIC,GIC.
SBI Mutual Fund is the 1st NON-UTI
Mutual Fund.

10. Followed by - Canara bank MF(Dec1987)
Punjab National bank
MF(Aug1989)
Indian bank MF(Nov1989)
Bank of India (Jun1990)
LIC MF (Jun1989)
GIC setup its MF (Dec1990)
Bank of Baroda MF (Oct1992)
1993(Year end) - AUM of 47,000crores.

11. THIRD PHASE: (1993-2003)
• 1993 - Entry of private sector funds.
1st mutual fund regulations came into existence
(under which all MF’s registered except UTI).
• 1996 - 1993 SEBI(MF) regulations were revised.
Industry functions under the control of SEBI.
• Jan2003(Yearend) - 33 MF’s with total assets of
Rs.1,21,805crores.
UTI with Rs.44,541crores of AUM.
FOURTH PHASE: (since February 2003)
• Feb2003 - UTI bifurcated into two separate entities.

12. COMPANY PROFILE

13. 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

14. CIO Mr. NAVNEET MUNOT
COMPLIANCE OFFICER MS.VINAYA DATAR
INVESTOR SERVICE Mr. C A SANTOSH
AUDITORS HARIBHAKTI & CO,
M/S.CHANDABHOY &
JASSOOBHOY
ASSETS MANAGED
RS47184.11CRORE(JUN30,2012)
CORPORATE OFFICE SBI FUNDS MANAGEMENT
PVT LTD.
A JOINT VENTURE
BETWEEN SBI &
AMUNDI(FRANCE).
191,MAKER TOWER
‘E’,COFFE PARADE, MUMBAI-

15. Review of literature
Capon et al 1992 - modern finance theory .
 Purchase decisions - 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

16. Need for the study
Tax often make life seem like a burden.
Every one wish to invest our hard-earned money into
the best plan for future gain without worrying about Tax.
This is why SBI Mutual fund presents SBI Magnum Tax
gain Scheme, an ELSS, for investors who wish to address
two critical issues-Tax planning and Wealth creation.
It also has the distinction of being one of the largest
Tax-Saving funds in the country.
SBI Magnum Tax gain Scheme has grown 34 times in
22 years.

17. Objectives of the study
With a view to find out the solutions for why to invest in tax
saving scheme, the following objectives have been framed.
To find out the Performance of Tax saving scheme in
relation with market performance.
To evaluate the performance by using different models of
performance evaluation.
To analyze the facts relating to NAV
To identify risk and returns involved in Tax saving scheme.
To know the benefits in Tax saving scheme compared to
other schemes.