Sbi mutual gold fund

BALBHARTHI’s
M.J.P COLLEGE OF COMMERCE
TOPIC :- SBI GOLD FUND
PRESENTED BY :- VARUN MODI
CLASS :- T.Y.BMS
ROLL 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.

MUTUAL FUND OPERATION FLOW
CHART

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) - India's largest bank.
We are a Joint Venture between SBI and AMUNDI (France), one of the
world's 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 SCHEME
Type of Scheme Open ended fund of fund scheme
Plans / Options Growth Plan & Dividend Plan
Fund Manager Mr. Raviprakash Sharma
Date Of Inception 12/09/2011
Benchmark 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 – Nil
Minimum 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
ow
Units of SBI GETS 100% 95% Medium to High
Reverse repo and /or CBLO and/or
short-term fixed deposits and/or
Schemes which invest 5% 0% Low to Medium
predominantly in the money market
securities or Liquid Schemes*

SYSTEMATIC INVESTMENT PLAN
 Rs.100/- per month and minimum 60 months
 Rs.500/- per quarter and minimum 12 quarters
 Rs.1500/- per quarter and minimum 4 quarters

NET ASSET VALUE (NAV)
 A mutual fund's price per share or exchange-traded fund's (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 - GROWTH
SBI Gold Fund - Growth 10.5470 15-Jun-2012

NAV OF SBI GOLD FUND - DIVIDEND
SBI Gold Fund - Dividend 10.5480 15-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 COMMISION
Sr. No NAME OF DISTRIBUTOR Total
Commission
(Rs in lakhs)
1. State Bank Of India 3,549.21
2. NJ Indiainvest Pvt Ltd 844.46
3. Karvy Stock Broking Ltd-Distribution Division 306.54
4. Bajaj Capital Limited 234.67
5. ICICI Securities Limited 186.82
6. HDFC Bank Ltd 173.70
7. State Bank of Patiala 171.03
8. Axis Bank Ltd 161.96
9. JM Financial Services Pvt Ltd 154.01
10. 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.

BIBLOGRAPHY
 http://www.sbimf.com/Index.aspx
 http://en.wikipedia.org/wiki/Mutual_fund

Sbi mutual gold fund

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