V.S.GAUTHAMI-PROJECT

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INDEX
TABLE OF CONTENTS
S.NO PARTICULARS PAGE
NO.
CHAPTER
1 DECLARATION
2 CERTIFICATE
3 AKNOWLEDGEMENT
4 INTRODUCTION 3 CHAPTER-1
4.1 OBJECTIVE 7
4.2 SCOPE 8
4.3 COMPANY PROFILE 10
5 EXECUTIVE SUMMARY 56 CHAPTER-2
6 RESEARCH DESIGN 59 CHAPTER-3
7 DATA COLLECTION & TABULATION 61 CHAPTER-4
8 ANALYSIS OF DATA 66 CHAPTER-5
9 INTERPRETATION & INFERENCES 90 CHAPTER-6
10 CONCLUSIONS AND SUGGESTIONS 95 CHAPTER-7
11 BIBLIOGRAPHY &WEBLIOGRAPHY 98 CHAPTER-8
12 APPENDICES 100
13 QUESTIONAIR 101

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INDEX OF TABLES
S.NO PARTICULARS PAGE
1 MONTHLY INCOME OF RESPONDENT 62
2 NUMBER OF RESPONDENTS WHO R
MARRIED OR UNMARRIED
62
3 NO.OF RESPONDENTS WHO MAKE
INVESTMENTS OR NOT
63
4 TABLE SHOWING WHAT DO AWARED
RESPONDENTS THINK ABOUT THE MUTUAL
FUND
63
5 SOURCE OF INFORMATION OF MUTUAL
FUND
63
6 NUMBER IF INVESTED IN MUTUAL FUND 64
7 PREFERED PORTFOLIOS BY MF
INVESTORS FOR INVESTMENT
64
8 AGE GROUP OF MUTUAL FUND
INVESTORS
64

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MUTUAL FUND CONCEPT:-
A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
equities, debentures and other securities. The income earned through these investments and the
capital appreciation realized (after deducting the expenses and profits of mutual fund managers)
is shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual
Fund strives to meet the investment needs of the common man by offering him or her
opportunity to invest in a diversified, professionally managed basket of securities at a relatively
low cost. The small savings of all the investors are put together to increase the buying power and
hire a professional manager to invest and monitor the money. Anybody with an surplus of as
little as a few thousand rupees can invest in Mutual Funds.
WORKING OF MUTUAL FUND:-
A Mutual Fund is a collection of stocks, bonds, or other securities owned by a group of investors
and managed by a professional investment company. For an individual investor to have a
diversified portfolio is difficult. But he can approach to such company and can invest into shares.
Mutual funds have become very popular since they make individual investors to invest in equity
and debt securities easy. When investors invest a particular amount in mutual funds, he becomes
the unit holder of corresponding units. In turn, mutual funds invest unit holders money in stocks,
bonds or other securities that earn interest or dividend. This money is distributed to unit holders.
If the fund gets money by selling some stocks at higher price the unit holders also are liable to
get capital gains.

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EMERGENCE OF MUTUAL FUND IN INDIA
• Mutual funds in India began in 1964
• Unit Trust of India (UTI) was the first MF company
• Remains the market leader even today, Having about 68% of the
market share
• Lost monopoly in 1987 With entry of public sector mutual funds
Promoted by public sector banks and insurance companies
Industry was open to foreign institutions in 1993
TRENDS OF MUTUAL FUND IN INDIA
• In 1963, finance minister Shri T. Krishnaswami gave the idea of
mutual funds.
• The origin of mutual fund industry in India is with the introduction
of the concept of mutual fund by UTI in the year 1963.
• The first scheme launched by UTI was Unit Scheme in 1964.At the
end of 1988 UTI had Rs.6,700 crores of assets under management.

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THE OBJECTIVES OF THE STUDY INCLUDE:
 To get insight knowledge about Mutual fund.
 To evaluate consumer feedback on mutual fund.
 To know the awareness of mutual fund among different group of investors
 To know the mutual fund performance levels on present markets.
 The main objective of this project is concerned with getting the opinion of the people
 Regarding the mutual funds and what they feel about availing the services of financial
advisors.
 To find out market potential for mutual funds.
 To find out the factors, which influence to investing in mutual funds.
 To find out attributes investors look for while buying mutual funds.
 I have tried to explore the general opinion about the mutual funds.
My work involved interaction with the customers who have invested in mutual funds and also who
have not purchased mutual funds and also to know whether they have invested in mutual funds or
not and also the reasons for their investment / non-investment.

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SCOPE OF THE STUDY:
This project was conducted so as to understand the concept of Mutual Funds and its usage as an
investment avenue. The study also aims to find out the awareness of mutual funds and its
preference over other investments. The project was undertaken at state bank of India of
Jabalpur city.
Scope of Mutual Funds has grown enormously over the years. In the first age of mutual funds,
when the investment management companies started to offer mutual funds, choices were few.
Even though people invested their money in mutual funds as these funds offered them diversified
investment option for the first time. By investing in these funds they were able to diversify their
investment in common Mutuals, preferred Mutuals, bonds and other financial securities.
At the same time they also enjoyed the advantage of liquidity. With Mutual Funds, they got the
scope of easy access to their invested funds on requirement.But, in today’s world, Scope of
Mutual Funds has become so wide, that people sometimes take long time to decide the mutual
fund type, they are going to invest in. Several Investment
Management Companies have emerged over the years, who offer various types of Mutual Funds,
Each type carrying unique characteristics and different beneficial features. This project may help
the company to make further planning and strategy.

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INTRODUCTION TO SBIMUTUAL FUND
Company Key Information
Asset Management Company :
SBI Funds Management Pvt. Ltd.
(A Joint Venture between State Bank of India & Société Générale Asset Management)
Setup date Jun-29-1987
Incorporation date Feb-07-1992
Sponsor State Bank of India Trustee SBI Mutual Fund Trustee Company.

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CORPORATE PROFILE
OUR IDENTITY
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 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.
OUR VISION
“To be the most preferred and the largest fund house for all asset classes, with a
consistent track record of excellent returns and best standards in customer service,
product innovation, technology and HR practices.”
OUR SERVICES
 Mutual Funds
Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment
option to the masses in the country. Working towards it, we developed innovative, need-specific
products and educated the investors about the added benefits of investing in capital markets via
Mutual Funds.

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Today, we have been actively managing our investor's assets not only through our investment
expertise in domestic mutual funds, but also offshore funds and portfolio management advisory
services for institutional investors
This makes us one of the largest investment management firms in India, managing investment
mandates of over 5.4 million investors
Portfolio Management and Advisory Services
SBI Funds Management has emerged as one of the largest player in India advising various
financial institutions, pension funds, and local and international asset management companies.
We have excelled by understanding our investor's requirements and terms of risk / return
expectations, based on which we suggest customized asset portfolio recommendations.
We also provide an integrated end-to-end customized asset management solution for institutions
in terms of advisory service, discretionary and non-discretionary portfolio management services
Offshore Funds
SBI Funds Management has been successfully managing and advising India's dedicated offshore
funds since 1988. SBI Funds Management was the 1st bank sponsored asset management
company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with
an objective to provide our investors with opportunities for long-term growth in capital, through
well-researched investments in a diversified basket of stocks of Indian Companies.
3. History of Mutual Funds
The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the
initiative of the Government of India and Reserve Bank of India. The history of mutual funds in
India can be broadly divided into four distinct phases.
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The
first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700

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Crores of assets under management. Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and
Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).
SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by
Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank
Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC
established its mutual fund in June 1989 while GIC had set up its mutual fund in December
1990. At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
Crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile KotharTempleton) was the first private
sector mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 Crores. The
Unit Trust of India with Rs.44, 541 Crores of assets under management was way ahead of other i
Pioneer (now merged with FranklinTempleton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 Crores. The
Unit Trust of India with Rs.44, 541 Crores of assets under management was way ahead of other

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Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated
into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets
under management of Rs.29, 835 crores as at the end of January 2003, representing broadly, the
assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March
2000 more than Rs.76,000 Crores of assets under management and with the setting up of a UTI
Mutual Fund, conforming to the SEBI Mutual Fund.
(STATE BANK OF INDIA) MUTUAL FUND
SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track
record in judicious investments and consistent wealth creation.
The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has
grown immensely since its inception and today it is India's largest bank, patronised by
over 80% of the top corporate houses of the country.
SBI Mutual Fund is a joint venture between the State Bank of India and Society General
Asset Management, one of the world’s leading fund management companies that
manages over US$ 330 Billion worldwide. In eighteen years of operation, the fund has
launched thirty-two schemes and successfully redeemed fifteen of them. In the process it
has rewarded it’s investors handsomely with consistently high returns.

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A total of over 3.5 million investors have reposed their faith in the wealth generation
expertise of the Mutual Fund.
Schemes of the Mutual fund have consistently outperformed benchmark indices and have
emerged as the preferred investment for millions of investors and HNI’s.
Today, the fund manages over Rs. 20000 crores of assets and has a diverse profile of
investors actively parking their investments across 40 active schemes.
The fund serves this vast family of investors by reaching out to them through network of
over 100 points of acceptance, 26 investor service centers, 33 investor service desks and
52 district organizers.
SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent India
Opportunities Fund. Growth through innovation and stable investment policies is the SBI
MF credo.
More about SBI Mutual Fund
The fund traces its lineage to SBI - India’s largest banking enterprise. The institution has
grown immensely since its inception and today it is India's largest bank, patronized by
over 80% of the top corporate houses of the country.

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KEY PERSONNEL
MANAGEMENT TEAM
Mr. Dinesh Kumar Khara
MD & CEO
Mr.Philippe
Batchevitch
Deputy CEO
Mr. K. T. Ravindran
Executive Director & Chief Operating Officer
Mr. Navneet Munot
Executive Director
& Chief Investment
Officer
Mr. R. S. Srinivas Jain
Executive Director & Chief Marketing Officer (Strategy and International
Business)
Mr. D. P. Singh
Executive Director
& Chief Marketing
Officer (Domestic
Business)
Ms. Aparna Nirgude
Chief Risk Officer
Mr.Rakesh Kaushik
Senior Vice
President (Accounts
& Administration)
Ms. Vinaya Datar
CS & Compliance Officer
Mr. C. A. Santosh
Head - Customer
Service

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BOARD OF DIRECTORS - AMC
Ms.Arundhati Bhattacharya
Chairman and Associate Director
Mr. Dinesh Kumar Khara
Managing Director & CEO
Mr. Shishir Joshipura
Independent Director
Dr. H. Sadhak
Mrs. Madhu Dubhashi
Dr. H. K. Pradhan
Mr. Jashvant Raval
Mr. Fathi Jerfel
Associate Director
Mr. Thierry Raymond Mequillet
Associate Director
Mr. Philippe Batchevitch
Alternate Director to Mr. Jerfel
TRUSTEES
SBI Mutual Fund Trustee Company Private Limited (the “Trustee”), through its Board of Directors
discharge its obligations as Trustee of the SBI Mutual Fund. The Board of Directors of SBI Mutual
Fund Trustee Company Private Limited are as under:
Shri T.L. Palani Kumar
Independent
Shri C.M. Dixit
Independent
Ms. Sandra Martyres
Associate
Ms. Bharati Rao
Associate
Mr. Krishnamurthy Vijayan
Independent
Mr. Shriniwas Joshi
Independent

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IMPORTANCE OF SBI MUTUAL FUND
1) SBI Mutual Fund helps in introducing a high degree of professional management and
marketing concept in to banking
2) SBI Mutual Fund creates Healthy competition on general efficiency levels in the industry
3) SBI Mutual Fund is always trying to innovate the new products avenues, new schemes,
services etc.
BUSINESS OBJECTIVES.
The Primary Objective of SBI Mutual Fund is to Enhance the Investments in the country through
the Provision of Different Mutual Fund Schemes in a systematic and Professional Manner, and to
Promote the Investments In the Mutual Fund
Organizational goal
SBI Mutual Fund Main goals are to
a) Develop a Close Relationship with Customer
b) Transform Ideas in to Viable and Creative Solutions
c) Provide Consistently high Returns to Shareholders,
d) To Grow through diversification by leveraging off the existing client base.
Business Focus
SBI Mutual Fund mission is to be world class Mutual Fund its Main aim is to build
Customer Franchises across distinct business So as to be the Preferred Provider of services in the
Segments.
That Fund Operates in and to achieve healthy growth in profitability, and consistency. The SBI
Mutual Fund is committed to maintain the highest level of ethical standards, professional
integrity and regulatory compliance

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Subsidiaries and Associates
 SBI Bank
 SBI Mutual Fund
 SBI Life insurance Company
 SBI Securities
 SBI NRI Services
 Other Companies co- promoted by SBI
SBI Mutual Fund is professionally managed organization with a board of directors consisting of
eminent persons who represent various fields including finance, taxation, construction and Urban
policy and development. The board primarily focuses on strategy
Formulation, policy and control, designed to deliver increasing value to the share holders

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THE MUTUAL FUND STRUCTURE
TRUSTEE SPONSOR
AMCOPERATIONS
FUND MANGER
MUTUAL FUND
SCHEMES DISTRIBUTOR
MKT/ SALESMKT/SALES
INVESTOR
SEBI

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THE STRUCTURE CONSISTS OF
Sponsor - Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996.The Sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.
Trust - The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian
Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act,
1908.
Trustee - Trustee is usually a company (corporate body) or a Board of Trustees (body of
individuals). The main responsibility of the Trustee is to safeguard the interest of the unit holders
and inter alia ensure that the AMC functions in the interest of investors and in accordance with
the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of
the Trust Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of
the Trustee are independent directors who are not associated with the Sponsor in any manner.
Asset Management Company (AMC) - The AMC is appointed by the Trustee as the Investment
Manager of the Mutual Fund. The AMC is required to be approved by the Securities and
Exchange Board of India (SEBI) to act as an asset management company of the Mutual Fund. At
least 50% of the directors of the AMC are independent directors who are not associated with the
Sponsor in any manner. The AMC must have a net worth of at least 10 crore at all times.
Registrar and Transfer Agent - The AMC if so authorized by the Trust Deed appoints the
Registrar and Transfer Agent to the Mutual Fund. The Registrar processes the application form,
redemption requests and dispatches account statements to the unit holders. The Registrar and
Transfer agent also handles communications with investors and updates investor records.

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The graph indicates the growth of assets over the years:
GRAPH OF AUM OF INDIA vs AUM OF WORLD:-
4. Regulatory Framework
Securities and Exchange Board of India (SEBI)
The Government of India constituted Securities and Exchange Board of India, by an Act of
Parliament in 1992, the apex regulator of all entities that either raise funds in the capital markets
or invest in capital market securities such as shares and debentures listed on stock exchanges.
Mutual funds have emerged as an important institutional investor in capital market securities.
Hence they come under the purview of SEBI. SEBI requires all mutual funds to be registered
with them.
It issues guidelines for all mutual fund operations including where they can invest, what
investment limits and restrictions must be complied with, how they should account for income
and expenses, how they should make disclosures of information to the investors and generally
act in the interest of investor protection. To protect the interest of the investors, SEBI formulates
policies and regulates the mutual funds. MF either promoted by public or by private sector
entities including one promoted by foreign entities are governed by these Regulations. SEBI
approved Asset Management Company (AMC) manages the funds by making investments in
various types of securities. Custodian, registered with SEBI, holds the securities of various
schemes of the fund in its custody. According to SEBI Regulations, two thirds of the directors of
Trustee Company or board of trustees must be independent .Association of Mutual Funds in

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India (AMFI) With the increase in mutual fund players in India, a need for mutual fund
association in India was generated to function as a non-profit organization. 14
Growth In Asset Under Management
Types of AMCs in Indian Context
The following are the types of AMCs we have in India
AMCs owned by banks
AMCs owned by financial institutions
AMCs owned by the Indian private sector companies
AMCs owned jointly by Indian and foreign investors.

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DIFFERENT AMCS WORKING IN INDIA ARE
Name of the AMC Nature of Ownership
Alliance Capital Private Foreign
Anagram Wellington Private Indian
Apple Private Indian
Birla Capital International Private Indian
Bank of Baroda Banks
Bank of India Banks
Canbank Investment Banks
Cholamandalam Cazenove Private Foreign
Dundee Private Foreign
DSP Merrill Lynch Private Foreign
Escorts Private Indian
First India Private Indian
GIC Institutions
IDBI Investment Institutions
Indfund Management Ltd. Banks
ING Investment Private Foreign
ITC Threadneedle Private Foreign
RELIANCE Capital Management
Ltd.
Private Indian
Jardine Fleming Private Foreign
Kotak Mahindra Private Indian
Morgan Stanley Private Foreign
Punjab National Bank Banks
Reliance Capital Private Indian
State Bank of India Banks

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Shriram Private Indian
Sun F&C Private Foreign
Sundaram Newton Private Foreign
Tata Private Indian
Credit Capital Private Indian
Templeton Private Foreign
UTI Institutions
COMPARISON OF MUTUAL FUNDS WITH THE BANKS
Banks v/s Mutual Funds
BANKS MUTUAL FUNDS
Returns Low Better
Administrative exp. High Low
Risk Low Moderate
Investment options Less More
Network High penetration Low but improving
Liquidity At a cost Better
Quality of assets Not transparent Transparent
Interest calculation Minimum balance between
10th.&30th.Of every month
Everyday
Guarantee Max Rs.1 lakh on deposits None
Capital flow in the economy
MFs make it possible for investors to assume risks in the expectation of the higher returns even if
the investor cannot actively manage these investments and the associated risks. This increases
the level of risk capital that is available in the economy for funding enterprise. The MFs also

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add depth to the security markets where they invest, thus contributing to liquidity and price
discovery.
Schemes and Units
Investment in a company is normally represented by a certain number of shares. People invest in
a company by acquiring its shares; they disinvest by selling its shares. The total outstanding
shares of a company multiplied by the face value of each share, constitutes the share capital of
the company.
What shares are for a company, units are for a mutual fund scheme. Thus investors invest in a
scheme by buying its units. They disinvest by selling its units. The total outstanding units of a
scheme multiplied by the face value of its units, constitutes the unit capital of the scheme.
MUTUAL FUND OPERATION FLOW CHART:-

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TYPES OF MUTUAL FUND SCHEMES:-
Mutual funds can be done depending upon various factors and variables, such as, maturity
period, investment objectives etc... funds schemes again can be classified into three broad
categories:
equity schemes funds invest in three broad categories of assets—stocks, bonds and cash.
Depending upon the asset mix, mutual Classification of mutual, hybrid schemes, and debt
schemes. However the following are the various types of mutual funds available to the investors.

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Schemes according to Maturity Period:
A mutual fund can be classified into close-ended or open-ended scheme depending upon its
maturity period:
Open-ended fund/scheme:
An open-ended fund is one that is available for subscription and repurchase on continuous basis.
These schemes do not have a fixed maturity period. Investors can conveniently buy and sell
units at Net Asset Value(NAV) related prices which are declared on a daily basis. The key
feature of open-end scheme is liquidity.
Close-ended fund/scheme:A close-ended scheme has a stipulated maturity period e.g. 5-7
years. The fund is open for subscription only during a specified period at the time of launch of
the scheme.
Schemes according to Investment Objectives:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended schemes
as described earlier. Such schemes may be classified mainly as follows:

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 Growth or equity oriented Scheme:
The aim of growth funds is to provide capital appreciation over the medium to long term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively
high risk. These schemes provide different options to the investors like dividend option, capital
appreciation etc... and the investors may choose an option depending on their performance. The
investors must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long term outlook seeking appreciation over a period of time.
 Income / debt oriented schemes:
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Govt. securities
and money market instruments. Such funds are less risky compared to equity schemes. These
funds are not affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds are affected because
of change in interest rates in the country. If the interest fall, NAVs of such funds are likely to
increase in the short run and vice-versa. However, long term investors may not bother about
these fluctuations.
 Balanced Funds:
The aim of balanced funds is to provide both growth and regular income as such schemes invest
both in equity and fixed income securities in the proportion indicated in their offer document.
These are appropriate for the investors looking for moderate growth. They generally invest 40%
to 60% in equity and debt instruments. These funds are also affected because of fluctuation in
share prices in the stock markets. However, NAVs of such funds are likely to be less volatile
compare to pure equity funds.
Money market or liquid funds:

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These funds are income funds and their aim is to provide easy liquidity, preservation of capital
and moderate income. These schemes invest exclusively in safer short-term instruments such as
treasury bills, certificates of deposits, commercial paper and inter-bank call money, government
securities, etc. Returns on these schemes fluctuate much less compared to other funds. These
funds are appropriate for corporate and individual investors as a means to park their surplus
funds for short periods.
Gilt funds:
These funds invest exclusively in Govt. securities. Govt. securities have no default risk. NAVs of
these schemes also fluctuate due to change in interest rates and other economic factors as is the
case with income or debt oriented schemes.
Index funds:
Index funds replicate the portfolio of a particular index such as the BSE sensitive index, S&P
NSE-50 index (Nifty) etc. These schemes invest in the securities in the same weightage
comprising of an index. The NAVs of such schemes would rise or fall in accordance with the rise
or fall in the index, though not exactly by same percentage due to some factors known as
“tracking error” in technical terms. Necessary disclosures in this regards are made in the offer
document of the mutual fund scheme.These are also exchange traded index funds launched by
the mutual funds which are traded on the stock exchange.
ELSS:
Equity linked savings scheme (ELSS) are equity funds floated by mutual funds. This scheme is
suited for young people as they have the ability to take on higher risk. The ELSS funds should
invest more than 80 per cent of their money in equity and related instruments. It is ideal to invest
in them when the markets are down. These funds are now open all the year round. The other way
of investing in these funds could be a systematic investment, which essentially means investing a
small sum regularly (monthly or quarterly). It is a market-linked security and therefore there will
be risks accordingly.

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HOW RISKY YOUR MUTUAL FUND IS:-
Investors always judge a fund by the return it gives, never by the risk it took. In any historical
analysis of a mutual fund, the return is remembered but the risk is quickly forgotten. So a fund
manager may have used very high-risk strategies (that are bound to fail disastrously in the long
run), hoping that his wins will be remembered (as they often are), but the risk he took will soon
be forgotten.
WHAT IS RISK?
Risk can be defined as the potential for harm. But when anyone analyzing mutual funds uses this
term, what is actually being talked about is volatility. Volatility is nothing but the fluctuation of
the Net Asset Value (price of a unit of a fund). The higher the volatility, the greater the
fluctuations of the NAV. Generally, past volatility is taken as an indicator of future risk and for
the task of evaluating mutual fund, this is an adequate (even if not ideal) approximation.
Defining Mutual fund risk:
Mutual funds face risks based on the investments they hold. For example, a bond fund faces
interest rate risk and income risk. Bond values are inversely related to interest rates. If interest
rates go up, bond values will go down and vice versa. Bond income is also affected by the
change in interest rates.
Following Is A Glossary Of Some Risks To Consider When Investing In
Mutual Funds:
 CALL RISK:-
The possibility that falling interest rates will cause a bond issuer to redeem or call its high-
yielding bond before the bond's maturity date.
 COUNTRY RISK:-
The possibility that political events (a war, national elections), financial problems (rising
inflation, government default), or natural disasters (an earthquake, a poor harvest) will weaken a
country's economy and cause investments in that country to decline.

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 CREDIT RISK:-
The possibility that a bond issuer will fail to repay interest and principal in a timely manner. Also
called default risk.
 CURRENCY RISK:-
The possibility that returns could be reduced for Americans investing in foreign securities
because of a rise in the value of the U.S. dollar against foreign currencies. Also called exchange-
rate risk.
 INCOME RISK:-
The possibility that a fixed-income fund's dividends will decline as a result of falling overall
interest rates.
 INDUSTRY RISK:-
The possibility that a group of stocks in a single industry will decline in price due to
developments in that industry.
 INFLATION RISK:-
The possibility that increases in the cost of living will reduce or eliminate a fund's real inflation-
adjusted returns.
 INTEREST RATE RISK:-
The possibility that a bond fund will decline in value because of an increase in interest rates.
 MANAGER RISK:-
The possibility that an actively managed mutual fund's investment adviser will fail to execute the
fund's investment strategy effectively resulting in the failure of stated objectives.
 MARKET RISK:-
The possibility that stock fund or bond fund prices overall will decline over short or even
extended periods. Stock and bond markets tend to move in cycles, with periods when prices rise
and other periods when prices fall.
 PRINCIPAL RISK:-
The possibility that an investment will go down in value, or "lose money," from the original or
invested amount.

32
HOW RISK IS MEASURED:-
There are two ways in which you can determine how risky a fund is.
 STANDARD DEVIATION:-Standard Deviation is a measure of how much the actual
performance of a fund over a period of time deviates from the average performance.
“Since Standard Deviation is a measure of risk, a low Standard Deviation is good.”
 SHARPE RATIO:-
This ratio looks at both, returns and risk, and delivers a single measure that is proportional to the
risk adjusted returns.“Since Sharpe Ratio is a measure of risk-adjusted returns, a high Sharpe
Ratio is good."
HOW TO CHECK THE FUND’S RISK:-
. If you would like to take a look at the latest ratings, click on the relevant month viz March,
April, May .In this rating, each fund is given a star. The funds with a 5-star( )
rating are the best. Those with a 1-star( ) rating are the worst .This star rating is based on risk-
adjusted return. In a very simple way, it gives investors an understanding of whether a fund is
taking an acceptable amount of risk in generating the kind of returns it is doing.

33
Risk Return Matrix in different sources of investments:
THINGS TO BE SEE WHILE INVESTING IN MUTUAL FUNDS:-
1. Don't just look at the NAV, also look at the risk:
2.Higher rating does not mean better returns:
3. Higher rating does not mean more risk:
FREQUENTLY USED TERMS IN MUTUAL FUNDS:-
 NET ASSETS VALUE:-
The net asset value, or NAV, is the current market value of a fund's holdings, less the fund's
liabilities, usually expressed as a per-share amount. The public offering price, or POP, is the
NAV plus a sales charge. Open-end funds sell shares at the POP and redeem shares at the NAV,
and so process orders only after the NAV is determined. Closed-end funds (the shares of which

34
are traded by investors) may trade at a higher or lower price than their NAV; this is known as a
premium or discount, respectively.
SALE PRICE:-
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales
load.
 REPURCHASE PRICE:-
Is the price at which a close-ended scheme repurchases its units and it may include a back-end
load. This is also called bid Price.
 REDEMPTION PRICE:-
Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. Such prices are NAV related.
 TURNOVER:-
Turnover is a measure of the fund's securities transactions, usually calculated over a year's time,
and usually expressed as a percentage of net asset value. Thus turnover measures the
replacement of holdings.
 EXPENSES:-
Mutual funds bear expenses similar to other companies. The fee structure of a mutual fund can
be divided into two or three main components: management fee, non management expense, and
12b-l/non12b-1 fees. All expenses are expressed as a percentage of the average daily net assets
of the fund.
 MANAGEMENT FEES:-
Management fee as equal to the contractual advisory fee + the contractual administrator fee.
This "levels the playing field" when comparing management fee components across multiple
funds.
 NON-MANAGEMENT EXPENSES:-
Some of the more significant (in terms of amount) non-management expenses are: transfer agent
expenses, custodian expense
, legal/audit expense, fund accounting expense, registration expense, board of directors/trustees
expense and printing and postage expense

35
 BROKERAGE/COMMISSIONS:-
Brokerage commissions are directly related to portfolio turnover (portfolio turnover refers to the
number of times the fund's assets are bought and sold over the course of a year). Usually the
higher the rate of the portfolio turnover, the higher the brokerage commissions
 12b-I/NON-12b-1 SERVICE FEES:-
12b-1 service fees/shareholder servicing fees are contractual fees which a fund may charge to
cover the marketing expenses of the fund. Non-12b-1 service fees are marketing/shareholder
servicing fees which do not fall under SEC rule 12b-1. in a front-end load or no-load fund, the
12b-1 fees for the fund are usually .
INVESTOR FEES AND EXPENSES:-
Fees and expenses borne by the investor vary based on the arrangement made with the investor's
broker. Sales loads (or contingent deferred sales loads (CDSL) are not included in the fund's total
expense ratio (TER) because they do not pass through the statement of operations for the fund..
 Role of Mutual funds in Financial Market
Indian financial institution have played a dominant role in asset formation and intermediation
and contributed substantially in macroeconomic development. In this process of development
Indian Mutual Funds have emerged as a strong financial intermediaries and are playing a very
important role in bringing stability to the financial system and efficiency to resource allocation.
Mutual Fund plays a crucial role in an economy by mobilizing savings and investing them in
the capital market, thus establishing a link between savings and the capital market. The activities
of mutual fund have both short and long term impact on the savings and capital market, and the
national economy. Mutual fund, thus, assist the process financial intermediation. They mobilize
funds in the saving market and act as complimentary to banking, at the same time they also
compete with banks and other financial institutions. In the process stock market activities are
also significant influenced by mutual funds.There is thus hardly any segment of the financial
market, which is not influenced by the existence and operations of mutual funds. However, the
scope and efficiency of mutual funds are influenced by overall economic fundamentals: the inter-

36
relation between the financial and real sector, the nature of development of the savings and
capital markets, market structure, institutional arrangements and overall policy regime.
ADVANTAGES OF INVESTING IN MUTUAL FUNDS
A. Professional Management - The primary advantage of funds is the professional
management of your money. Investors purchase funds because they do not have the time or
the expertise to manage their own portfolio. A mutual fund is a relatively inexpensive way
for a small investor to get a full-time manager to make and monitor investments.
B. Diversification – the idea behind diversification is to invest in a large number of assets so
that a loss in any particular investment is minimized by gains in others.
C. Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a
time, its transaction costs are lower than you as an individual would pay.
D. Liquidity - Open-ended mutual funds are priced daily and are always willing to buy back
units from investors.
E. Regulations - All Mutual Funds are registered with SEBI and they function under strict
guidelines designed to protect the interests of the Investor.
F. Tax benefits
 Equity Funds:
Currently, dividends are tax-free in the hands of the investor. There is no distribution tax payable
by the Mutual Fund on dividends distributed. There is no tax deduction at source on dividends as
well. Investments for over 12 months qualify for long term capital gains. Moreover for resident
investors there is no TDS on redemption of the units. The recently introduced Securities
Transaction Tax is applicable to equity fund investments.

37
 Debt Funds:
Currently, dividends are tax-free in the hands of the investor. However, there is distribution tax
together with surcharge and education cess, as may be applicable, payable by the Mutual Fund
on dividends distributed. There is no tax deduction at source on dividends as well. Investments
for over 12 months qualify for long term capital gains. For resident investors there is no TDS on
redemption of the units.
LIMITATIONS OF MUTUAL FUNDS
As Mutual Fund provides numerous advantages for investment it has also few limitations that are
listed below:
A) Costs Despite Negative Returns- Investors must pay sales charges, annual fees, and other
expenses regardless of how the fund performs..
B) Lack of Control- Investors typically can’t ascertain the exact make up of a fund’s portfolio at
any given time, nor can they directly influence which securities the fund manager buys and sells
or the timing of those trades.
C) Price Uncertainty- By contrast, with a Mutual Fund, the price at which you purchase or
redeem shares will typically depend on the funds NAV. In general; Mutual Funds must calculate
their NAV at least once every business day, typically after the major U.S. exchange close.
 SBI MUTUAL FUND SCHEMES
 Magnum COMMA Fund
 Magnum Equity Fund
 Magnum Global Fund
 Magnum Index Fund
 Magnum MidCap Fund
 Magnum Multicap Fund
 Magnum Multiplier Plus 1993
 Magnum Sector Funds Umbrella

38
 MSFU - FMCG Fund
 MSFU - EmergingBusinessesFund
 MSFU - IT Fund
 MSFU - PharmaFund
 MSFU - ContraFund
 SBI Arbitrage Opportunities Fund
 SBI Blue chip Fund
 SBI Infrastructure Fund - Series I
 SBI Magnum Taxgain Scheme 1993
 SBI ONE India Fund
 SBI TAX ADVANTAGE FUND - SERIES I
1. Debt Based Schemes
Debt Funds invest only in debt instruments such as Corporate Bonds, Government Securities and
Money Market instruments either completely avoiding any investments in the stock markets as in
Income funds or gilt Funds or having a small exposure to equities as in Monthly Income Plans or
Children's Plan. Hence they are safer than equity funds. At the same time the expected returns
from debt funds would be lower. Such investments are advisable for the risk.
 Magnum Children`s Benefit Plan
 Magnum Gilt Fund
o Magnum Gilt Fund (Long Term)
o Magnum Gilt Fund (Short Term)
 Magnum Income Fund
 Magnum Income Plus Fund

39
o Magnum Income Plus Fund (Saving Plan)
o Magnum Income Plus Fund (Investment Plan)
 Magnum Insta Cash Fund
 Magnum InstaCash Fund -Liquid Floater Plan
 Magnum Institutional Income Fund
 Magnum Monthly Income Plan
 Magnum Monthly Income Plan Floater
 SBI Debt Fund Series
o SDFS 15 Months Fund
o SDFS 90 Days Fund
o SDFS 60 Days Fund
o SDFS 180 Days Fund
 SBI Premier Liquid Fund
2. Hybrid Schemes (Balanced scheme)
Magnum Balanced Fund invest in a mix of equity and debt investments. Hence they are less
risky than equity funds, but at the same time provide commensurately lower returns. They
provide a good investment opportunity to investors who do not wish to be completely exposed to
equity markets, but is looking for higher returns than those provided by debt funds.

40
 Magnum Balanced Fund
 Magnum NRI Investment Fund - FlexiAsset Pl
B. STRUCTURE
Schemes can be classified as Closed-ended or Open-ended depending upon whether they
give the investor the option to redeem at any time (open-ended) or whether the investor has to
wait till maturity of the scheme.
1. Open ended Schemes - The units offered by these schemes are available for sale and
repurchase on any business day at NAV based prices.
2. Closed ended Schemes - The unit capital of a close-ended product is fixed as it makes a
one-time sale of fixed number of units.
3. Interval Schemes - These schemes combine the features of open-ended and closed-
ended schemes. They may be traded on the stock exchange or may be open for sale or
redemption during pre-determined intervals at NAV based prices.

41
SBI MUTUAL FUND SCHEMES
*SBI GOLD FUND
The scheme will predominantly invest in units of SBI GETS which is registered with SEBI and /
or permitted by SEBI from time to time. The investments could be made either directly with the
underlying fund or through the secondary market. The scheme will also invest in money market
instruments. The investment strategy would largely be active in nature. The AMC shall endeavor
that the returns of SBI Gold Fund will replicate the returns generated by the underlying ETF.
Key Benefit
 No need to hold or open a DEMAT account.
 Liquidity.
 Cost Effective.
 Assured Purity & Security.
 Systematic Investment
Plan (SIP) available.
This product is suitable for investors who are
seeking*:
 Long term capital growth
 Investments in SBI Gold Exchange Traded Scheme
 High risk. (BROWN)

46
SBI ULTRA SHORT TERM DEBT FUND

49
Rules prescribed to govern Mutual Funds:
1. All Mutual Funds expect the statutory ones, will have to seek the approval of the SEBI
and the scheme floated by them shall have to be registered with the SEBI.
2. Mutual Funds shall be established in the form of trust under Indian Trust Act to be
operated by separate asset management companies (AMCs) will be authorized by SEBI .
3. SEBI will have the power to withdraw authorization to any AMC if it finds the interest of
investors, Mutual Funds or the capital market are not been served.
4. The AMC and the Trustee of a Mutual Fund should be two separate legal entities and an
AMC or its affiliate cannot act as a manager or any other fund.
5. No person should be director of more than one AMC, nor hold the position of the trustee
of director in trust company of funds operated by the same AMC.
6. Mutual Funds must distribute 90% of their profits in any given year.
7. No Mutual Funds under all its schemes shall hold more than 10% of its fund in the shares
or debentures or other instruments of a single company.
8. No Mutual Funds under all its schemes take together shall invest more than 10% of its
fund in the shares or debentures or other instruments of a single company.
9. No Mutual Funds under all its schemes taken together shall invest more than 15% of its
fund in the shares and debentures of any specific industry, expecting those schemes
which have been floated specifically for investment in one or more specified industries
and a declaration has been made in the offer letter.
10. No individual scheme of Mutual Funds shall invest more than 5% of its corpus in any one
company’s share.
11. Mutual Funds can invest only in transferable securities either in the money market or in
the capital market.
12. Mutual Funds shall be authorized for business by SEBI and registered companies with
sound track records and good reputation could sponsor this.
13. Mutual Funds shall provide continuous liquidity and closed-end scheme shall be listed on
exchange. For open ended schemes, Mutual Funds shall sell or purchase units at
predetermined price based on net asset value, which shall be published at least ones a
week.

50
NAV OF A MUTUAL FUND
Track your investments:
One easy way to keep track of your fund is to keep track of the intelligent investor rankings of
mutual funds, which are complied on a quarterly basis. These rankings allow you to take note of
your funds performance and risk profile and compare it across various time periods as well as
across its peer set,
Net Asset Value (NAV)
The net asset value of the fund is the cumulative market value of the assets fund net of its
liabilities. In other words, if the fund is dissolved or liquidated, by selling off all the assets in the
fund, this is the amount that the shareholders would collectively own. This gives rise to the
concept of net asset value per unit, which is the value, represented by the ownership of one unit
in the fund. It is calculated simply by dividing the net asset value of the fund by the number of
units.
Calculation of NAV
The most important part of the calculation is the valuation of the assets owned by the fund. Once
it is calculated, the NAV is simply the net value of assets divided by the number of units
outstanding. The detailed methodology for the calculation of the asset value is given below:
Asset value is equal to:
Sum of market value of shares/debentures
 Liquid assets/cash held, if any
 Dividends/interest accrued
 Amount due on unpaid assets
 Expenses accrued but not paid
Details on the above items
For liquid shares/debentures, valuation is done on the basis of the last or closing market price on
the principal exchange where the security is traded

51
How is the percentage change in NAV calculated?
Percentage change in NAV is an absolute measure of return, which finds the NAV appreciation
between two points, as a percentage. For example, if the NAV of the fund is Rs.23.45 at the
beginning of a year, and Rs. 27.65 at the end of the year, then the percentage change in NAV is
= (27.65-23.45) / 23.45*100
= 17.91%
The general formula is (Absolute change in NAV / NAV at the beginning)* 100
What is the rate of return to an investor in mutual funds?
An investor in mutual fund earns returns from 2 sources:
 Income from Dividend paid by the mutual fund.
 Capital gains arising out of selling the units at a price higher than the acquisition price.
What is Growth Option?
Investors who do not require periodic income distributions can choose the growth option, where
incomes earned are retained in the investment portfolio, and allowed to grow, rather than being
distributed to the investors.
What is Dividend Option?
Investors, who choose a dividend option on their investment, will receive dividends from the
mutual fund, as and when such dividends are declared. Dividend are paid in the form of
warrants, or directly credited to the investor bank accounts.There are other choices where in the
investor can choose their dividend payout frequencies that can monthly, weekly, daily.
What is re-investment option?
Mutual Funds also provide another option to investors in the form of re-investment. Investors
reinvest the dividends that are declared by the mutual fund, back into the fund itself, at NAV that
is prevalent at the time of re-investment.

52
AN OVERVIEW ON MUTUAL FUNDS COMPANIES IN
INDIA
ABN AMRO Mutual Fund:
ABN AMRO mutual fund is promoted by the ABN AMRO banking group,
Birla Sun Life Mutual Fund:
. Birla Sun Life Asset Management Company Limited, the investment manager of Birla Sunlife
Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life Financial Services,
Baroda Pioneer Mutual Finds:
Baroda Pioneer Mutual Fund is presently under the management of Baroda Pioneer Asset
Management Company Limited
Hdfc Asset Manageme nt Company Limited (Amc) Functions As An
Asset Management Company For The Hdfc Mutual Fund. Amc Is A Joint Venture Between
Housing Finance Giant Hdfc And British Investment Firm Standard Life Investments Limited
HSBC Mutual Fund:
HSBC is one of the world's leading banking giants and boasts of a 140-year history in banking
services. HSBC operates in more than 70 countries across the globe and has assets of over $1.2
trillion on the consolidated group balance sheet.
ICICI Prudential Mutual Fund:
. The asset management company, Prudential ICICI Asset Management Company Limited, is a
joint venture between Prudential Plc, Europe's leading insurance company and ICICI Bank,
India's premier financial institution. Prudential Plc holds 55 per cent of the asset management
company and the balance by ICICI Bank.

53
State Bank of India Mutual Fund:
SBI Mutual Fund, India's largest bank sponsored mutual fund, is a joint venture between the
State Bank of India and Societe Generale Asset Management, one of the world's top-notch fund
management companies. Since its inception, SBI Funds Management Private Ltd. has launched
thirty-two schemes and successfully redeemed fifteen of them.
ING Vysya Mutual Fund:
ING Vysya mutual fund benefits from the vast international experience and professional
expertise of its promoters the ING Group, Dutch insurance and banking giant. ING, one of
thelargest financial services groups globally, took over the former Vysya Bank in India to form
ING Vysya Bank
Sahara Mutual Fund:Sahara Mutual Fund is sponsored by the
Sahara India Financial Corporation Limited (SIFCL), the flagship company of Sahara India
Group. Incorporated in 1987, SIFCL is the First Residuary Non-Banking Company (RNBC) in
India that has been granted certificate of registration by RBI and is a leading public deposit
mobilization company in the Private sector. ..
Tata Mutual Fund:
Tata mutual fund, set up in 1995, is one of the leading private sector funds in the country and is
promoted by the Tata group. The sponsors of the fund are Tata Sons Limited and Tata
Investment Corporation Limited.
Kotak Mahindra Mutual Fund: . The fund is promoted by Kotak
Mahindra Bank, one of India's leading financial institutions that offer financial solutions ranging
from commercial banking, stock broking, life insurance and investment banking.Kotak Mahindra
mutual fund launched its schemes in December 1998 Kotak Mahindra mutual fund was the first

54
fund house in the country to launch a dedicated gilt scheme investing only in government
securities.
Unit Trust of India Mutual Fund:
The setting up of the Unit Trust of India (UTI) in 1963 heralded the birth of the Indian mutual
fund industry. In 1964, UTI mutual fund launched its flagship scheme US-64 and went on to
become a generic term for the mutual fund sector till the government allowed public sector banks
to start mutual funds in 1987.
Standard Chartered Mutual Fund:
. The bank has a strong brand presence in India and is well entrenched in developing markets of
Asia Pacific region. The sponsor of the fund is Standard Chartered Bank. The AMC of the
fund is Standard Chartered Asset Management Company Private Limited.
Franklin Templeton India Mutual Fund:
Franklin Templeton Investments, global investment management major, started their India
operations in 1996 as Templeton Asset Management India Pvt. Limited
Morgan Stanley Mutual Fund India:
When the Indian mutual fund sector was opened up for foreign investment in 1993, Morgan
Stanley became the first international fund manager to enter India with a domestic mutual fund.
One of the largest investment banks and fund managers in the world, Morgan Stanley operates in
28 countries and has $576 billion in assets under management globally.
Escorts Mutual Fund:
Escorts Mutual Fund is promoted by the business conglomerate Escorts group. Escorts Asset
Management Limited acts as the AMC to the mutual fund.
Alliance Capital Mutual Fund:
. The Trustee is ACAM Trust Company Pvt. Ltd. and AMC, the Alliance Capital Asset
Management India (Pvt) Ltd. with the corporate office in Mumbai.

55
.
Canbank Mutual Fund:
Canara Bank made its foray into the mutual fund sector by establishing the mutual fund arm
Canbank Mutual Fund in December, 1987.
LIC Mutual Fund
Promoted by India's largest life insurer, Life Insurance Corporation of India, LIC mutual fund
was launched on June 19, 1989.
Reliance Mutual Fund
Reliance mutual fund, promoted by the Anil Dhirubhai Ambani (ADAG) group, is one of the
fastest growing mutual funds in India

56
CHAPTER-2
EXECUTIVE
SUMMARY

57
A mutual fund is a scheme in which several people invest their money for a common financial
goal. The collected money invests in the capital market, debt and the money market, which they
earned, is divided based on the number of units which they hold.
The topic of this project is “CUSTOMER AWARENESS TOWARDS MUTUAL FUNDS
SPECIAL REFERENCE TOWARDS SBI MF”. The mutual fund industry in India has seen
dramatic improvements in quantity as well as quality of product and service offerings in recent
years. Along with this project also touches on the aspect of Systematic Investment Plan and
Steps of how to invest in Mutual Fund.
An effort has been made to work on the concepts that have been taught in class along with other
useful parameters so that better study can be done.
As information and awareness are rising more and more people are enjoying benefits of investing
in mutual funds.
The main reason number of retail mutual fund investors remains small is that nine in ten people
with incomes in india do not know that mutual funds exist.
But once people are aware of mutual fund investment opportunities ,the number who decided to
invest in mutual funds increases to many as one in five people The trick for converting a person
with no knowledge of mutual funds to a new mutual fund customer is to understand which of the
potential investors are more likely to buy mutual funds and to use the right arguments in the sale
process that customers will accept as important and relevant their decisions.
This project give me a great learning experience and at the same time it gave me enough scope to
implement any analytical ability .
The analysis and advise presented in this project report is based on market research on the
saving and investment practices of the investors and preferences of the investors for investment
in mutual funds.

58
This report will help to know about the awareness of mutual fund among different group of
investors. To evaluate consumer feedback on mutual fund.
What they think about it, to what level they are ready to take risk are they interested to invest in
mutual fund, and in which AMCs’ they are interested. And help to know the Reasons for not
investing in mutual fund by the investors.

60
RESEARCH METHODOLOGY:
For collecting data, I used Questionnaire and interaction with people. The primary data was
collected through interaction with the people I met, and secondary data was collected from SBI
mutual fund fact sheets, magazines, websites etc..
 Sample Frame:
People who have invested in mutual funds and who have not invested in Mutual funds.
 Sample size : 80 respondents
 Sample Unit :
1. Bank Employees
2. Bank customers
3. Government employees
4. Retired persons
5. Businessmen.
 Sampling Method :---- Simple random sampling technique.
“Simple random sampling means every element is selected independently of every other element
and the sample is drawn by a random procedure from a sampling frame.
Tools used for the study:
 Graphical Representation
 The difficulty faced during the fieldwork was not getting the appointments of the respondents
since they were very busy and some were non-cooperative. Moreover, time limitation was
there.

61
CHAPTER -4
DATA
COLLECTION
&
TABULATION

62
TABLE1 SHOWING MONTHLY FAMILY INCOME OF
RESPONDENTS
TABLE 1
TABLE NO.-1
TABLE 2. NUMBER OF MF INVESTORS WHO ARE MARRIED
OR UNMARRIED
OPTIONS MARRIED UNMARRIED TOTAL
NUMBER OF
RESPONDENTS
51 29 80
MONTHLY
INCOME
NUMBER OF
CUSTOMERS(FREQUENCY)
5000-10000 4
10000-15000 11
15000-20000 9
20000-25000 8
250000-30000 16
30000-35000 10
35000-40000 8
40000 & ABOVE 14
TOTAL 80

63
TABLE 3 NUMBER OF RESPONDENTS WHO MAKE INVESTMENTS
OR WHO DOES NOT
4.TABLE SHOWING WHAT DO AWARED RESPONDENTSTHINK
ABOUT THE MUTUAL FUND
TABLE 4
5.TABLE -5 SHOWING THE SOURCES OF INFORMATION OF
MUTUAL FUND TO AWARED RESPONDENTS
OPTIONS INVEST DO NOT INVEST TOTAL
NUMBER OF
CUSTOMERS
62 18 80
RESONS HIGH
RISK
RETURNS
NOT FIXED
BETTER FOR
INVESTMENT
PAST BAD
EXPERIENCE
TOTAL
NUMBER OF
CUSTOMERS
15 11 9 8 43
SOURCE ADVERTISEMENT PEER
GROUP
FINANCIAL
ADVISORS
BANK TOTAL
AWARED
RESPONDENTS
NUMBER OF
RESPONDENT
5 9 19 10 43

64
6.TABLE.6- NUMBER OF INVESTORS INVESTED IN MUTUAL
FUND
RESPONSE
YES NO TOTAL
NUMBER OF
RESPONDENTS
35 45 80
7.TABLE 7 SHOWING PREFERED PORTFOLIOS BY THE
MUTUAL FUND INVESTORS
DEBT EQUITY LIQUID FMP(FIXEDMATURITY
PLAN)
NUMBER OF
INVESTORS
9 16 7 3
8.TABLE 8 AGE GROUP OF MUTUAL FUND
INVESTORS
AGE GROUP 18-30 30-40 40-50 50&ABOVE TOTAL
NO.OF
INVESTORS
2 8 14 11 35

66
ANALYSIS AND INTERPRETATION OF DATA
RESPONDENTS AGE GROUP
Figure1
INTERPRETATION:
OUT OF 80 RESPONDENTS 20% ARE 18 TO 30 AGE, 30% ARE 30 TO 40 GROUP, 28%
ARE 40 TO 50 AGE GROUP AND REMAINING 23% ARE OF ABOVE 50. SO MUTUAL
FUND COMPANIES SHOULD MORE CONCENTRATE ON YOUNG GENERATION
BECAUSE THEY HAVE LESS RISK ON FAMILY AND THEY WILL INVESTMENT
MORE BECAUSE OF CAREER DEVELOPMENT AND RETIREMENT BENEFITS. AND
ALSO CONCENTRATE ON SENIOR CITIZENS FOR FMP, LIQUID PLANS BECAUSE
THEY NEEDED RISK FREE, SECURED ,AND FOR SHORT TERM PLAN.
18-30,16
30-40,24
40-50,22
50&ABOVE, 18
0
5
10
15
20
25
30
AGE GROUP OF RESPONDENTS
NUMBEROFRESPONDENTSe
18-30
30-40
40-50
50&ABOVE

67
OCCUPATION OF THE RESPONDENTS
FIGURE 2
INTERPRETATION
Out Of 80 Respondents 40% Are In Service ,23 % Are In Business And 14%Professionals and
11% are retired.

68
MONTHLY INCOME GROUPS OF RESPONDENTS
FIGURE 3
FIGURE 3
INTERPRETATION:
IN THE INCOME GROUP OF CUSTOMERS OF 80 RESPONDENTS,20%,THAT IS
INCOME GROUP 25000-30000

69
NUMBER OF RESPONDENTS WHO ARE MARRIED
OR UNMARRIED
FIGURE 4
INTERPRETATION
OUT OF 80 SAMPLES 66% ARE MARRIED AND 34% ARE UN MARRIED.
SO PLANS LIKE CHILD EDUCATION PLAN,PENSION PLANS ETC CAN BE FOCUSED
ON MARRIED PERONS FOR THEIR FINANCIAL PLANNING FOR THEIR BRIGHT
FUTURE THROUGH SIP(SYSTEMATIC INVESTMENT PLAN)

70
NUMBER OF RESPONDENTS WHO MAKE
INVESTMENTS OR WHO DOES NOT
FIGURE.-5
INTERPRETATION
OUT OF 80 SAMPLES 62 PEOPLE MEANS 78%MAKE INVESTMENT AND REST 18
MEANS 22% ,DO NOT MAKE ANY INVESTMENT .THIS SHOWS THERE IS GREAT
SCOPE TO ATTRACT THIS CUSTOMERS TOWARDS THE INVESTMENT IN MUTUAL
FUND PLANS.
0
10
20
30
40
50
60
70
NUMBER OF RESPONDENTS
62
18
NUMBER OF RESPONDENTS WHO HAVE
MADE INVESTMENT OR NOT
( IN ANY OF THE PHYSICAL OR FINANCIAL
ASSETS)
MAKEINVESTMENT
DO NOT MAKE INVESTMENT

71
DIFFERENT KINDS OF INVESTMENTS THE
RESPONDENTS MAKES ON DIFFERENT ASSETS
FIGURE-6
INTERPRETATION
OUT OF 80 SAMPLES 62 PEOPLE MAKE INVESTMENT .SO THESE 62 RESPONDENTS,
MAXIMUM INVESTMENT IS MADE ON FIXED DEPOSITS THAT IS 41% ..THIS SHOWS
CUSTOMERS ARE LESS AWARED TO OTHER AREAS OF INVESTMENT ,AND ALSO
SHOWS THEY ARE MORE PRONE TO RISK FREE AND FIXED INCOME AREAS OF
INVESTMENT
FIXED DEPOSIT
41%
INSURANCE
27%
MUTUAL FUND
14%
GOLD/SILVER
9%
OTHERS
5%
SHAREMARKET
4%
NUMBER OF INVESTMENT MADE IN
DIFFERENT ASSETS
FIXED DEPOSIT
INSURANCE
MUTUAL FUND
GOLD/SILVER
OTHERS
SHAREMARKET

72
RESPONDENTS AWARENESS TOWARDS THE
MUTUAL FUND
FIGURE -7
INTERPRETATION
OUT OF 8O RESPONDENTS 54 % PEOPLE ARE AWARE OF MUTUALFUND AND ITS
OPERATION AND 46% PEOPLE ARE NOT AWARE OF MUTUAL FUND AND ITS
OPERATION.

73
SOURCE OF AWARENESS TOWARDS THE MUTUAL
FUND FOR THE AWARED RESPONDENTS
FIGURE-8
INTERPRETATION
FROM THE ABOVE CHART IT CAN BE INFERRED THAT THE FINANCIAL ADVISOR
IS MOST IMPORTANT SOURCE OF INFORMATION OF MUTUAL FUND .OUT OF 43
RESPONDENTS 46% KNOW ABOUT MUTUAL FUND THROUGH FINANCIAL
ADVISOR AND22%THROUGH BANK ,AND 19% THROUGH PEER GROUPS AND13%
THROUGH ADVERTISEMENTS
0
2
4
6
8
10
12
14
16
18
20
5
9
19
10
SOURCE OF AWARENESS
ADVERTISEMENTS PEER GROUP FINANCIAL ADVISORS BANK

74
RESPONDENTS WHO KNOW ABOUT
SIP(SYSTEMATIC INVESTMENT PLAN)
FIGURE-9
INTERPRETATION
OUT OF 80 RESPONDENTS ,37 (46%) HAVE KNOWLEDGE ABOUT THE SIP PLAN
AND 43(54%) HAVE NOT KNOWLEDGE ABOUT SIP.

75
RESPONDENTS WHO KNOW ABOUT TAX SAVING
PLAN OF MUTUAL FUND
FIGURE-10
INTERPRETATION
OUT OF 80 RESPONDENTS, 38% HAVE KNOWLEDGE ABOUT TAX PLANNING
SCHEME AND 62% HAVE NOT KNOWLEDGE ABOUT TAX PLANNING SCHEME.

76
WHAT DO RESPONSEDENTS THINK ABOUT THE
MUTUAL FUND
FIGURE-11
INTERPRETATION
MOST OF RESPONDENT ABOUT 35% THINK INVESTMENT IN MUTUAL FUND IS
VERY RISKY AND 26% THINK RETURNS IN MF ARE NOT FIXED
TOTAL 43

77
INVESTORS INVESTED IN MUTUAL FUNDS
RESPONSE
YES NO
NUMBER OF
RESPONDENTS
35 45
FIGURE-12 INTERPRETATION
OUT OF 80 PEOPLE 44% HAVE INVESTED IN MUTUAL FUND AND 56% HAVE NOT
INVESTED IN MUTUAL FUND. SO THAT THE POTENTIAL MARKET AVAILABLE FOR
TARGETING IS AROUND 56%.

78
INVESTORS INVESTED IN DIFFERENT ASSETS
MANAGEMENT COMPANY.(AMC)
FIGURE-13
INTERPRETATION
IN JABALPUR CITY MOST THE INVESTORS PREFERED UTI ABOUT 25% INVESTED
IN UTI AND 21% IN SBI MF.16% IN HDFC.

79
PREFERRED PORTFOLIOS BY THE MUTUAL FUND
INVESTORS
FIGURE-14
INTERPRETATION
MUTUAL FUND INVESTORS IN JABALPUR CITY OUT OF 35 ,46% INVESTORS
INVESTED IN EQUITY RELATED PLANS,SO INVESTORS ARE LESS AWARED OF
OTHER PORTFOLIOS,LIKE FMP, LIQUID PLANS,DEBT,MONEY MARKETS
0
2
4
6
8
10
12
14
16
PORTFOLIOS
9
16
7
3
NUMBER OF
CUSTOMERS
PREFERREDPORTFOLIOS BY THE MUTUAL FUND
INVESTORS
DEBT
EQUITY
LIQUID
FMP

80
FACTOR CONSIDERED WHILE INVESTNG IN MUTUAL
FUND BY THE MF INVESTORS
FIGURE-15
INTERPRETATION
MUTUAL FUND INVESTORS CONSIDER RETURNS WHILE INVESTING IN MUTUAL
FUND.40% INVESTORS INVEST IN MF CONSIDERING RETURNS AND 31%
INVESTORS CONSIDER ABOUT THE LIQUIDITY.

81
AGE GROUP OF MUTUAL FUND INVESTORS
FIGURE-16
INTERPRETATION
40% OF MUTUAL FUND INVESTORS BELONG TO AGE GROUP 40-50YEARS .AND
31% BELONG TO 50&ABOVE. YEARS.ONLY 23% BELONG TO 30-40 YEARS, 6%
BELONG TO 18-30.
SO COMPANY MUST FOCUS ON THE YOUNG GENERATION BECAUSE THEY ARE
MORE IN NUMBERS AND THEIR WILL BE MORE POTENTIAL TARGET MARKET FOR
MUTUAL FUND FOR THEIR PRODUCTS LIKE EQUITY ORIENTED SCHEMES.REASON
BEHIND THIS YOUNG INVESTORS CAN BEAR MORE RISK COMPARED TO
50 &ABOVE INVESTORS.
0
2
4
6
8
10
12
14
AGE GROUP
2
8
14
11
18-30
30-40
40-50
50&ABOVE

82
OCCUPATION OF MUTUAL FUND INVESTORS
FIGURE-17
INTERPRETATION
37% OF MUTUAL FUND INVESTORS ARE IN SERVICE SECTORS. AND 28% OF
MUTUAL FUND INVESTORS IN BUSINESS.ONLY 16% ARE INPROFESSIONALS

83
MARITAL STATUS OF MUTUAL FUND INVESTORS
FIGURE-18
INTERPRETATION
77% MF INVESTORS ARE MARRIED ,23% ARE UNMARRIED
0
5
10
15
20
25
30
MARITAL STATUS
27
8
MARRIED
UNMARRIED

84
INCOME GROUP OF MUTUAL FUND INVESTORS
FIGURE-19
INTERPREATION
31% MUTUAL FUND INVESTORS BELONG TO INCOME GROUP Rs 40000 &ABOVE
AND 26% COMES IN INCOME GROUP OF RS 35000-40000.LEAST THAT IS 3% COMES
IN INCOME GROUP OF RS 150000-20000.
0
2
4
6
8
10
12
INCOME OF MUTUAL FUND INVESTORS
1
3
4
7
9
11
NUMBEROFINVESTORS
INCOME OF MUTUAL FUND INVESTORS
15000-20000
20000-25000
25000-30000
30000-35000
35000-40000
40000&ABOVE

85
NUMBER OF RESPONDENTS INTERESTED TO INVEST IN MUTUAL
FUND IN FUTURE
FIGURE-20
INTERPRETATION
70% OF RESPONDENTS INTERESTED TO INVEST IN MF AND 30% ARE NOT
INTERESTED.SO SCOPE OF MUTUAL FUND IS GOOD.SBI MF MUST FOCUS ON THE
RESPONDENTS TO MAKE INVESTMENT IN SBI MF.

86
FIGURE-21
INTERPRETATION
OUT OF 56 INTERESTED RESPONDENTS -38% PERCENT RESPONDENTS ARE READY
TO TAKE ZERO%PERCENT RISK .SO THESE RESPONDENTS MUST EDUCATE
ABOUT THE FMP ,AND DEBT PLAN.29% PERCENT RESPONDENTS ARE READY TO
TAKE 50% RISK THEY MUST GIVEN AWARENESS AND INFORMATION REGARDING
SIP PLANS,OF EQUITY.

87
DIFFERENT AMC’S PREFERED BY REPONDENTS FOR FUTURE
INVESTMENT IN MUTUAL FUNDS
FIGURE-22
INTERPRETATION
OUT 56 INTERESTED RESPONDENTS 27% ARE INTERESTED TO INVEST IN
SBI MF , 20% IN HDFC, 18% IN OTHER AMC,s

88
RESPONDENTS WHO ARE INTERESTED OR NOT INTERESTED TO INVEST IN
SBI MF MUTUAL FUND IN COMING FUTURE
FIGURE-23
INTERCHPRETATION
OUT OF 80 RESPONDENTS 61% RESPONDENTS ARE INTERESTED TO INVEST IN SBI
MF IN FUTURE.
61%
39%
INVESTMENT IN SBI MF
NOT INTERESTED TO INVEST IN
SBI MF

89
FIGURE-24
INTERPRETATION
36% RESPONDENTS ARE NOT INVESTING IN MUTUAL FUND BECAUSE OF NOT
HAVING PROPER KNOWLEDGE AND INFORMATION ABOUT MUTUAL FUND AND
18% NOT INVESTING DUE TO FEAR OF HIGH RISK WHICH IS SUBJECTED TO
MARKET.
21%
36%
14%
11%
18%
REASONS FOR NOT INVESTING IN MUTUAL
FUND
RISK
NOT MUCH KNOWLEDGE
ABOUT THE MF
BAD EXPERIENCE
RETURNS ARE NOT FIXED
ALL OF THE ABOVE

90
CHAPTER-6
INTERPRETATION
&
INFERENCES

91
 OUT OF 8O RESPONDENTS 54 % PEOPLE ARE AWARE OF MUTUALFUND AND
ITS OPERATION AND 46% PEOPLE ARE NOT AWARE OF MUTUAL FUND AND ITS
OPERATION.
 OUT OF 80 RESPONDENTS 20% ARE 18 TO 30 AGE, 30% ARE 30 TO 40, 28% ARE
40 TO 50 AND REMAINING 23% ARE OF ABOVE 50. SO MUTUAL FUNDS
SHOULD MORE CONCENTRATE ON YOUNG GENERATION BECAUSE THEY
HAVE LESS RISK ON FAMILY AND THEY WILL INVESTMENT MORE BECAUSE
OF CAREER DEVELOPMENT AND RETIREMENT BENEFITS. AND ALSO
CONCENTRATE ON SENIOR CITIZENS FOR FMP ,LIQUID PLANS BECAUSE THEY
NEEDED RISK FREE ,SECURED ,AND FOR SHORT TERM PLAN.
 MOST IMPORTANT SOURCE OF INFORMATION OF MUTUAL FUND .OUT OF 43
AWARED RESPONDENTS .THAT IS46% KNOW ABOUT MUTUAL FUND
THROUGH FINANCIAL ADVISOR AND22%THROUGH BANK ,AND 19% THROUGH
PEER GROUPS AND13% THROUGH ADVERTISEMENTS
 OUT OF 80 SAMPLES 62 PEOPLE MAKE INVESTMENT AND REST 18 ,DO NOT
MAKE ANY INVESTMENT IN ANY TYPE OF ASSETS .THIS SHOWS THERE IS
GREAT SCOPE TO ATTRACT THIS CUSTOMERS TOWARDS THE INVESTMENT IN
MUTUAL FUND PLANS
 OUT 80 SAMPLES MORE THAN 41% PEOPLE INVEST THEIR INVESTMENTS IN
FIXED DEPOSIT
 OUT OF 80 RESPONDENTS ,37 HAVE KNOWLEDGE ABOUT THE SIP PLAN AND
43 HAVE NOT KNOWLEDGE ABOUT SIP
 OUT OF 80 PEOPLE 44% HAVE INVESTED IN MUTUAL FUND AND 56% HAVE
NOT INVESTED IN MUTUAL FUND. SO THAT THE POTENTIAL MARKET
AVAILABLE FOR TARGETING IS AROUND 56%.

92
 MUTUAL FUND INVESTORS CONSIDER RETURNS WHILE INVESTING IN
MUTUAL FUND.40% INVESTORS INVEST IN MF CONSIDERING RETURNS AND
31% INVESTORS CONSIDER ABOUT THE LIQUIDITY.
 31% MUTUAL FUND INVESTORS BELONG TO INCOME GROUP Rs 40000 &ABOVE
AND 26% COMES IN INCOME GROUP OF RS 35000-40000.LEAST THAT IS 3%
COMES IN INCOME GROUP OF RS 150000-20000.
 40% OF MUTUAL FUND INVESTORS BELONG TO AGE GROUP 40-50YEARS .AND
31% BELONG TO 50&ABOVE. YEARS.ONLY 23% BELONG TO 30-40 YEARS,6%
BELONG TO 18-30.
 SO COMPANY MUST FOCUS ON THE YOUNG GENERATION BECAUSE THEY ARE
MORE IN NUMBERS AND THEIR WILL BE MORE POTENTIAL TARGET MARKET
FOR MUTUAL FUND FOR THEIR PRODUCTS LIKE EQUITY ORIENTED
SCHEMES.REASON BEHIND THIS YOUNG INVESTORS CAN BEAR MORE RISK
COMPARED TO 50 &ABOVE INVESTORS.
 70% OF CUSTOMERS INTERESTED TO INVEST IN MF AND 30% ARE NOT
INTERESTED.SO SCOPE OF MUTUAL FUND IS GOOD .SBI MF MUST FOCUS ON
THE RESPONDENTS TO MAKE INVESTMENT IN SBI MF.
 OUT 56 INTERESTED RESPONDENTS 27% ARE INTERESTED TO INVEST IN
SBIMF , 20% IN HDFC,18% IN OTHER AMC,S.

93
FINDINGS
Thus on the basis of the study conducted we can see that Mutual Fund is one of the best options
for investment as it has many advantages of diversification, professional management,
economies of scale, liquidity etc.
From the survey conducted it was found that –
 In Jabalpur city age group 30-40 years were more in numbers and and second most
investors group in 40-50 years and least were in age group 18-30 years.
 In occupation group most of investors are service sector and second most investors are
business persons and third most were professionals
 In family income group Rs 25000-30000 are more in numbers and the second most group of
investors in income group Rs 40000 above and least were Rs 5000-10000.
 In all the respondents 41% investors invest in fixed deposits, 26% in insurance , 14% in
mutual fund
 Only54 % of respondents are aware of mutual funds and its operations and 46% were not.
 Among 80 respondents only44 % had invested in mutual fund and 56 % were not
 Out of 43 awared respondents 35% think mutual fund is high risk and 21 % think is better
investment plan ,26% think not fixed returns.
 Most of investors had invested in UTI, SBI MF AND HDFC
 Most of investors are not invested in SBI MF because of not awareness in mutual fund
 The financial advisor is most important source of information of mutual fund to respondents.
 Mutual fund investors invested in mutual funds due to their bank associated with mutual fund
 Mutual fund Awared respondents come to know or awared about the mutual fund through
the financial advisor and by the bank.

94
 Around 46% of investors know about SIP benefits.
 Around 38% of the investors know about the tax benefits of investing in Mutual Funds.
 Most if the investors want to invest in debt funds because there is a solid reason behind this is
that the debt funds provide the fixed rate of interest to the investors, there is no risk in that
type of funds for the investors .While only big investors want to invest in equity market
because equity fund provide the dividend according to performance of the org. if there will
be profit in org so investors will get the dividend otherwise they will have to face loss
 That’s why investors want to invest in debt funds rather than equity market.
 Investors invest in Mutual Funds as a high return and (saving) security in their old age or as
retirement security. While others invest to gain access to stock market through professional
management and for higher education.
 For future investment maximum investors preferred –SBIMF mutual fund and second most
preferred HDFC .
 The most preferred portfolio was equity by respondents who already invested in mutual fund
 Now most of the respondents like to invest in risk free portfolios like liquid fund and short
term investment, and second most likely to invest in debt fund
 Reasons being not investing in SBI MUTUAL FUND is that not having much knowledge
about the mutual fund and second reason is fear of high risk
 Mutual fund should mainly concentrate on young generation.
 Around 66% awarded about SBI mutual fund.

95
CHAPTER-7
CONCLUSIONS
&
SUGGESTIONS

96
CONCLUSION
From the above study it is seen that there is an attractive market for mutual funds in Jabalpur city
provided awareness should be created of the different schemes and people should be educated
with all the information of mutual funds.
Running a successful mutual fund requires the complete understanding of peculiarities of the
Indian stock market and also the psyche of the small investors.
This study has made an attempt to understand the financial behavior of mutual fund investor in
connection with the preference of brand (AMC), channel, products etc..
I observed that many of people have fear of mutual fund. They think their money will be not be
secure in mutual fund .They need the knowledge of mutual fund and its related terms.
Many of the people do not have invested in mutual fund due to lack of awareness although they
have money to invest .as the awareness and income is growing the number of mutual fund
investors are also growing .
“Brand “plays important role for investment .People invest in those companies where they have
faith or they are well known with them. They are many AMCs but only some are performing
well due to Brand awareness .Some AMCs are not performing well although some of the
schemes of them are giving good return because of not awareness about the brand .
SBI MF is one of them and it is performing well and their Assets Under Management is larger
than others brands.

97
SUGGESTIONS
Investors are not very much aware of the investment opportunities, therefore they have to be
educated about this form of investment. In order to educate the Government as well as the Non-
government employees, seminars and workshops could be conducted in these organizations and
try to clear their doubts and misconceptions about Mutual funds.
Arranging programs like customer meet in all the SBI branches once in month for awareness of
products of the banks ,and SBI mutual fund and through this financial advisors of mutual fund
can explain the concept of mutual fund. And at one place products of mutual fund can be
promoted successfully.
 There is misconception in people that all products and scheme of SBI MUTUAL FUND are
subjected to market risk ,these type doubts and misconcepts ,and mindsets of the people
needed to be cleared through proper investor education.
 By arranging workshops seminars in their associated banks. Through program like the
customers meet and giving education on mutual fund by the financial advisors.
 Proper benchmark is required to measure the performance of the mutual funds.
 Mutual fund is a classical example of unsought goods. The nature of that the consumer does
not know about or does not normally think of buying.
 The attempts should be made to create awareness through popular modes of communication
that would reach the potential customers, like Local T.V Channels, Local Newspapers,
Theatres, Hoardings and Banners in the public crowded areas etc.
 Most of the schemes of mutual fund are not known to the customers like
LIQUID,DEBT,FMP which are risk free and have a fixed income from them.
 Through the survey I come to know that people want to invest their money in secure schemes
and plans, so the other plans like DEBT and LIQUID, FMP must be promoted more and its
should be advertised through newspapers,and banners ,posters .specially in banks because
their they believe ,the reason is that they are associated to the bank.

98
CHAPTER -8
BIBLIOGRAPHY
&
WEBLIOGRAPHY

99
BIBLIOGRAPHY
 H R Machiraju.,”Indian Financial System”,Vikas
publication house pvt ltd,2010.
 SBI Mutual fund Magazines and Broachers’
 Kothari C.R., “Research Methodology-methods
and Techniques”, K.K Gupta for New Age
International private ltd, 2006.
WEBLIOGRAPHY
 www.sbimf.com ( Companywebsite)
 www.moneycontrol.com
 www.mutualfundsindia.com
 www.wikipedia.org
 http://economictimes.indiatimes.com/Mutual_funds.

101
QUESTIONNAIR
Name: _____________________
1. Age
a] 18-30 ` b] 30-40 c] 40-50
d] 50 & above
2. Are you married?
(a)Yes (b) No
3. What is your occupation?
(a.) Serviceman (b) Businessman (c) Professional
(d) Retired (e) student (f) Housewife (g) others
3. What is your monthly income in Rupees?
(a) 5,000-10,000 (e) 25000-30000
(b) 10,000-15,000 (f) 30,000-35,000
(c) 15,000-20,000 (g) 35000-40,000
(d ) 20000-25000 (h) Above 40000
4. Do you invest in any of the physical or financial Assets?
(a) Yes (b) No
5 .If yes then where do you invest your money?
(a)Bank FD (Fixed deposits) (b) Insurance
(c) Share market (d) Mutual funds
(e) Gold (f) Others
6. Are you aware about Mutual funds?
(a) Yes (b) No
7 what do you think about MUTUAL FUND?
(a) High risk (b) Returns are not fixed
(c) Better for investment (d) Bad experience

102
8.If yes -How do you come to know about the mutual fund?
(a) Advertisement (b) Peer group
(c) Financial advisors (d) BANK
9. Have you invested money in Mutual fund?
(a) Yes (b) No
10. If YES in which company have you have invested your money?
(a) UTI (b) HDFC (c) SBI M F (d)Birla sun life MF
(e)Reliance MF (f) Birla sun life MF (g)If any Others please specify……
11.Which plan you have taken?
(a) Debt fund (b) Equity fund
(c) Liquid fun (d) FMP
13 .Are you willing to take risk to invest your money in mutual fund ?
(a.)Yes (b) No
14 If Yes, then how much percent to take risk?
(a) Zero % (b) 50% (c) 75% (d) 100%
14. Which factor you considered while taking decision to invest Mutual
Fund?
(a) Returns (b) Saving
(c) Liquidity (d) if any other specify……
15. Do you know about SIP (systematic investment plan) Scheme of mutual fund?
(a) Yes (b) No
16. Do you know about the tax saving Plan available in any of the Mutual Fund ?
(a) Yes (b) No
17. Do you want to invest your money preferably in any of the following Mutual fund
companies(AMC’s) ?
(a) SBI MF (b) UTI (c) TATA
(d) RELIANCE MF (e) HDFC (d) FRANKLIN
(e) if any other specify…………….

103
18 .In futures are you interested to invest your money in SBI Mutual fund?
(a) Yes (b) No
19. If NO Then WHY?
1. Risk
2. Not much knowledge about the Mutual fund
3 .Bad experience
4. Returns is not fixed
5. All of the above

V.S.GAUTHAMI-PROJECT

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