1. PREFACE <br />MBA is a stepping-stone to the management carrier and to develop good manager it is necessary that the theoretical must be supplemented with exposure to the real environment. <br />Theoretical knowledge just provides the base and it’s not sufficient to produce a good <br />Manager that’s why practical knowledge is needed. <br />Therefore the research product is an essential requirement for the student of MBA. This research project not only helps the student to utilize his skills properly learn field realities but also provides a chance to the organization to find out talent among the budding managers in the very beginning. <br />In accordance with the requirement of MBA course I have summer training project on the topic “Comparitive Analysis of Mutual funds and Ulips”. The main objective of the research project was to study the two instruments and make a detailed comparison of the two. <br />For conducting the research project sample size of 50 customers of SBIMF and SBOP was selected. The information regarding the project research was collected through the questionnaire formed by me which was filled by the customers there. <br />INDUSTRY PROFILE <br />The mutual fund industry is a lot like the film star of the finance business.Though it is perhaps the smallest segment of the industry, it is also the mostglamorous – in that it is a young industry where there are changes in the rulesof the game everyday, and there are constant shifts and upheavals.The mutual fund is structured around a fairly simple concept, the mitigationof risk through the spreading of investments across multiple entities, which isachieved by the pooling of a number of small investments into a large bucket.Yet it has been the subject of perhaps the most elaborate and prolongedregulatory effort in the history of the country.<br />A little history: <br />The mutual fund industry started in India in a small way with the UTI Actcreating what was effectively a small savings division within the RBI. Over aperiod of 25 years this grew fairly successfully and gave investors a goodreturn, and therefore in 1989, as the next logical step, public sector banksand financial institutions were allowed to float mutual funds and their successemboldened the government to allow the private sector to foray into this area.The initial years of the industry also saw the emerging years of the Indianequity market, when a number of mistakes were made and hence the mutualfund schemes, which invested in lesser-known stocks and at very high levels,became loss leaders for retail investors. From those days to today the retailinvestor, for whom the mutual fund is actually intended, has not yet returnedto the industry in a big way. But to be fair, the industry too has focused on<br />brining in the large investor, so that it can create a significant base corpus, <br />which can make the retail investor feel more secure. <br />The Indian MF industry has Rs 5.67 lakh crore of assets under <br />management. As per data released by Association of Mutual Funds in India,the asset base of all mutual fund combined has risen by 7.32% in April, thefirst month of the current fiscal. As of now, there are 33 fund houses inthe country including 16 joint ventures and 3 whollyowned foreign assetmanagers.According to a recent McKinsey report, the total AUM of the Indian mutualfund industry could grow to $350-440 billion by 2012, expanding 33%annually. While the revenue and profit (PAT) pools of Indian AMCs are peggedat $542 million and $220 million respectively, it is at par with fund housesin developed economies. Operating profits for AMCs in India, as a percentageof average assets under management, were at 32 basis points in 2006-07,while the number was 12 bps in UK, 17 bps in Germany and 18 bps in the US,in the same time frame.<br />