fianance related

1. A
COMPREHENSIVE PROJECT REPORT
ON
“CUSTOMER PERCEPTION TOWARDS SBI MUTUAL FUND”
Submitted to:
SHWETA PATEL
Late Smt. Shardaben Ghanshyambhai Patel Institute of Management
IN PARTIAL FULFILLMENT OF THE
REQUIREMENT OF THE AWARD FOR THE DEGREE OF
MASTER OF BUSINESS ASMINISTRATION
In
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide:
SHWETA PATEL
Submitted by
VISHAL S. SHAH
[Batch : 2011-13, Enrollment No.:117330592034]
MBA SEMESTER III/IV
Late Smt. Shardaben Ghanshyambhai Patel Institute of Management
MBA PROGRAMME
Affiliated to Gujarat Technological University
Ahmedabad
Month, Year

2. PREFACE
“Theory without practice has no fruit,
Practice without theory has no root.”
MBA is a stepping-stone to the management carrier and to develop good manager it is
necessary that the theoretical knowledge must be supplemented with exposure to the
real environment.
Therefore the Comprehensive Project is an essential requirement for the student of
MBA. In accordance with the requirement of MBA course project on the topic
“Customer‟s perception towards SBI mutual fund”.
The main objective of the project is to study the behavior of customers for mutual fund.
An Interim report contains detailed information regarding the activities done during
Comprehensive Projects (CP).
This experience gives me a clear-cut idea about practical field that how theoretical
knowledge is different from practical aspects & how can I use my knowledge to solve
these problems.

3. ACKNOWLEDGEMENT
Ships are safer in harbor but they are not meant for that purpose. This is a universal fact
and derives home the importance of practical training essential in each and every facet
of life. Project is also a part of practical where we can put concept into action.
Words are insufficient to express my gratitude towards Miss. Shweta Patel Madam and
Mr. Brahamachari Sir for their immense help and invaluable guidance in conduction of
this study from its conception to its completion.
And last but not the least I am thankful to my Parents, Family members and my dear
Friends for helping me in preparing the comprehensive project report for that they are
supporting me in all the ways with cheer face without showing the time.
Shah Vishal
S

4. TABLE OF CONTENT
CH NO. PARTICULAR PAGE NO.
1. Introduction
1.1 Invest In Mutual Fund
1.1 Introduction To Mutual Funds
1.3 SBI Fund
1.3 Company Profile
1.4
2. Review Of Literature
2.1 Objectives of the Study
3. Research Methodology
3.1 Need Of The Study
3.2 Research design
3.3 Sources of data
3.4 Data collection method
3.5 Sampling size
3.6 Sampling method
3.7 Sampling framework
4. Hypothesis test
References

5. Abstract
In my comprehensive project, I will study on Customer Perception towards SBI
Mutual Fund.
I have study on the SBI mutual fund is the most person use this fund. It is helps to
increase returns of person they have invested in mutual fund.
I have doing survey and know they what are the customer perception to invest in SBI
mutual fund is higher risk or a given the return is they expected.
I will study on primary & secondary data. I will fill up the questioner for customers who
invest in mutual fund. I select the city of Baroda to fill up the questioner.
Write on your outcome of the project
What u willing to like study.

6. INVEST IN TO MUTUAL FUNDS
• Experts manage your money at minimal of 2.5% to 5% of your wealth
irrespective of the size of your investments. You are just not dependent upon any single
individual for news, tips.
• Everyone knows when to buy but no knows when to sell at the top they really
know when to get out.
• You can start with small amounts Rs. 5000 for 1 time investment and Rs. 1000
for a systematic investment plan.
• Diversified mutual funds have created a lot of wealth over a period of 10 years.
Some funds have multiplied wealth by over 14 times during that period.
• Mutual funds provide great liquidity. Money can be taken out within 72 hours and
there is nothing called circuit filter.
• The problems of calling brokers, filling Demat instruction slips, making and
receiving payments at the end of each settlement cycles, keeping contract notes and
records for taxation purposes are all eliminated.
• Some funds offer tax saving facility under sec – 80 C. Investment into these
funds can be made up to a maximum limit of Rs. 100000. These funds have however
closed ended.

7. GROWTH OF MUTUAL FUNDS IN INDIA:
Some facts:-
• 100 % growth in the last 6 years
• Number of foreign AMC‟s are in the queue to enter the Indian markets like
Fidelity investments, US based, with over US$1 trillion assets under management
worldwide.
• Our saving rate is over 23 % highest in the world. Only channel zing these
savings in mutual funds sector is required.
• We have approximately 29 mutual funds which is must less than US having more
than 800. There is a big scope for expansion.
• „B‟ and „C‟ class cities are growing rapidly. Today most of the mutual funds are
concentrating on the „A‟ class cities. Soon they will find scope in the growing cities.
• Mutual funds can penetrate rural like the Indian insurance industry with simple
and limited products.
• SEBI allowing the MF‟s to launch commodity mutual funds.
• Emphasis on better corporate governance.
• Trying to curb the late trading practices.
• Introduction of financial planners who can provide need based advice.

8. SBI Magnum Equity Fund
SBI Magnum Equity Fund seeks capital appreciation through investment in diversified
portfolio of equities of high growth companies, along with liquidity of an open ended
scheme.
To provide the investor Long-term capital appreciation by investing in high growth
companies along with the liquidity of an open-ended scheme through investments
primarily in equities and the balance in debt and money market instruments.
Asset Allocation
Instrument Normal Allocation (% Risk Profile
of Net Assets)
Equity and related Not less than 70% Medium to High
instruments
Debt instruments Not more than 30% Low to Medium
Securitized Debt Not more than 10% of the Medium to High
investment in debt
instruments
Money market instruments Balance Low
Date of Inception 01/01/1991
Rs. 1000
Minimum Application
NA
Entry Load
1) For exit within 1 year from the date of
Exit Load allotment - 1 %. 2) For exit after 1 year
from the date of allotment - Nil
Rs.500/month - 12 months,
SIP Rs.1000/month - 6 months,
Rs.1500/quarter - 12 months
Rs. 500/- per month or per quarter
SWP

9. Nav's
Plan Nav Date
SBI Magnum Equity Fund-Dividend 30.83 05-Oct-2012
SBI Magnum Equity Fund-Growth 45.89 05-Oct-2012
INTRODUCTION
WHAT IS A MUTUAL FUND?
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. It offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost. The flow chart below describes
broadly the working of a mutual fund.
“Mutual Funds are popular among all income levels. With a mutual fund, we get a
diversified basket of stocks managed by professionals”
These Trusts are run by experienced Investment Managers who use their knowledge
and expertise to select individual securities, which are classified to form portfolios that
meet predetermined objectives and criteria.

10. ADVANTAGES OF MUTUAL FUNDS
Portfolio Diversification:
Mutual Funds normally, invest in a well-diversified portfolio or securities. MF enables
investors to hold a diversified investment portfolio even with a small amount of
investment.
Reduction of Risk:
Investors in a mutual fund acquire a diversified portfolio, no matter how small his
investment. Diversification reduces the risk of loss, as compared to investing directly in
one or two shares, debentures, or others instruments. When investors invest directly, all
the risk of potential loss is his own. A fund investor also reduces his risk in another
way.
Reduction transaction cost:
What is true of risk is also true of the transaction cost a direct investors bears all the
cost of investing such as brokerage or custody of securities when going through a fund
he has the benefit of economies of scale the funs pay lesser cost because of larger
volumes, a benefit passed on to its investors.
Liquidity:
Often Investors hold shares or bonds they cannot directly easily and quickly sell.
Investment in a mutual fund on the other hand is more liquid investors can liquidate the
investment by selling the unit to the fund.
Convince & Flexibility :
Mutual Fund management companies offered many investors services that a direct
market investor cannot get. Investors can easily transfer their holdings from one
scheme to the other and can get up date market information.

11. DISADVANTAGE OF MUTUAL FUNDS
No Control Over Cost:
An investor in a mutual fund has no control over the overall cost of investing. His
investment management fees as long as he remains with the funds, albeit in returns for
the professional management and research. A mutual fund investor also pays
distribution cost which he would not incur in the direct investing. However this
shortcoming only means that there is a cost obtains the benefits of mutual services.
No tailor made portfolio:
Investors who invest their own can build their own portfolios of shares, bonds and other
securities. Investing through funds means he delegates this decision to the fund
manager.
The very high net worth individuals or large corporate investors may find this to be a
constraint in achieving their objectives however most mutual funds help investors to
overcome this constraint by offering miles of schemes- a large number of different
schemes within the same fund an investor can choose from different investment plans
and construct a portfolio of his choice.
Managing a Portfolio of funds:
Availability of large number of funds can actually mean too much choice for the
investors
He may again need advice on how to select a fund to achieve his objective quite similar
to the situation when he has to select individual shares or bonds to invest in.

12. TYPES OF MUTUAL FUND:
Type of
Mutual Fund
Schemes
Investment Special
Structure
Objective Schemes
Open Ended Industry Specific
Growth Funds
Funds Schemes
Close Ended Index
Income Funds
Funds Schemes
Sectoral
Interval Funds Balanced Funds
Schemes
Money Market
Funds

13. COMPANY PROFILE
SBI Mutual Fund is India‟s largest bank sponsored mutual fund. The fund traces
itslineage 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.
A total of over 4.6 million investors have reposed their faith in the wealth generation
expertise of the Mutual Fund. The fund serves this vast family of investors by reaching
out to them through network of over 130 points of acceptance, 28 investor service
centers, 46 investor service desks and 56 district organizers. Today, the fund manages
over Rs. 28500crores of assets and has a diverse profile of investors actively parking
their investments across 36 active schemes.
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.”
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.
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.

14. 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.

15. REVIEW OF LITERATURE
Sharpe (1966) suggested a measure for the evaluation of portfolio performance.
Drawing on results obtained in the field of portfolio analysis, economist Jack L. Treynor
suggested a new predictor of mutual fund performance, one that differs from virtually all
those used previously by incorporating the volatility of a fund's return in a simple yet
meaningful manner.
Jensen (1967) derived a risk-adjusted measure of portfolio performance
(Jensen‟s alpha) that estimates how much a manager's forecasting ability contributes to
a fund's returns.
As indicated by stateman (2000), the e-SDAR of a fund's portfolio is the have the
benchmark index's standard deviation. Rao et al. evaluated the performance of Indian
mutual funds in a bear market through relative performance index, risk-return analysis,
Treynor‟s ratio, Shape's ratio, Sharpe's measure ,Jensen's measure, and Fama's
measure. The results of performance measures suggested that most of the mutual fund
schemes were able to satisfy investors' expectations by giving excess returns over
expected returns based on both - premium for systematic rick and total risk. Roy et al.
conducted an empirical study on conditional performance of Indian mutual funds . The
result suggested that the use of conditioning lagged information variables improves the
performance of mutual fund schemes, causing alphas to shift towards right, and
reduced the number of negative timing coefficients.
Mishra et al. (2002) measured the mutual fund performance using lower partial
moment. In their paper, a measure of evaluting portfolio performance based on lower
partial moment was developed. Risk from the lower partial moment is measured by
taking into account only those states in which return is below a pre-specified "target
rate" like risk-free rate.
Fernandes (2003) evaluated index fund implementation in India. In her paper,
tracking error of index funds in India was measured. The consistency and level of
tracking errors obtained by some well-run index fund suggested that it is possible to
attain low levels of tracking error under Indian conditions.

16. OBJECTIVES OF THE STUDY
For every problem there is a research. As all the researches are based on some
and my study is also based upon some objective and these are as follows.
 To know the awareness of SBI mutual funds among people.
 To see the interest of people in investing in SBI mutual funds.
 To know the investment behavior of investors in SBI mutual fund according to
different age group.
 To ascertain the percentage of income the investors invest in SBI mutual fund.
 To know the different attitudes of people regarding risk, rate of return period of
investment.
 To analyze how many respondents have invested in SBI Mutual Fund.
 To study the various schemes of Mutual fund provided by SBI.
 To know which features of SBI mutual fund most attract to the investors.

17. RESEARCH METHODOLOGY
Sources of Data
Primary Data:-
The primary data is collected with the help of the questionnaire by taking
the responses of the respondents.
Secondary Data:-
The secondary data is collected through the following sources:
• Data through internet source
• Magazine & other books
Data collection method
 Personal survey has been used to collect the data through structured
questionnaire.
Sampling Population:- The population consist of the people of Baroda
Sample size:- 100
Sampling method:- Convenience Sampling
Sampling Framework :- Individual from Baroda Area.
RESEARCH DESIGN:- Descriptive Studies
HYPOTHESES FRAMEWORK

18. REFERENECIES
Websites referred:
 www.mutualfundsindia.com
 www.amfiindia.com
 www.valueresearchonline.com
Redmond (2000), The Performance of Global and International Mutual Funds,
The Journal Of the Financial and Strategic Decision, 13, 1, 75-85
Sharpe (1966), Mutual Fund Performance, the Journal of Business, 39, 1, 119-
138