WELCOME

Project On SBI Mutual Funds

Title: Study on Performance Analysis of Tax Saving Scheme at SBI mutual fund

INTERNAL GUIDE: Mrs.Asha Jyothi Assistant Professor, Dept of MBAEXTERNAL GUIDE: Mr. k.Thimma reddy

ISD-Head, B.Com

ABOUT MUTUAL FUND

“Mutual fund is a common pool of money in which investor place their contribution that are to be invested in accordance with the stated objective. The fund belongs to all the investors depending on the proportion of his contribution to the fund.”

How Mutual Fund Works?

Mutual fund Types

Types

By Constitution

Close Ended

Open Ended Interval

By Investment objective

Equity funds

Debt funds

Cash funds

Tax saving schemeSBI Magnum Tax gain scheme is an open-ended Equity Linked Savings Scheme helps the investors to save tax under 80C of Income Tax Act.

It has a lock-in period of 3 years.

This fund helps investors to address two critical issues:Tax planningWealth creation

INDUSTRY PROFILE

Year of Start/UTI Formation : 1963

Initiated by : Govt of India/RBI

Regulated by : SEBI

FIRST PHASE: (1964-87)

1978 - UTI was delinked from RBI( under the control of IDBI).

1964 - 1st scheme was launched by UTI.

1988 - UTI had Rs.6700crores of AUM.

SECOND PHASE: (1987-1993)

Entry of PSF

1987 - Entry of NON-UTI,PSB,LIC,GIC.SBI Mutual Fund is the 1st NON-UTI Mutual Fund.

Followed by - Canara bank MF(Dec1987)Punjab National bank MF(Aug1989)Indian bank MF(Nov1989)Bank of India (Jun1990)LIC MF (Jun1989)GIC setup its MF (Dec1990)Bank of Baroda MF (Oct1992)

1993(Year end) - AUM of 47,000crores.

THIRD PHASE: (1993-2003)

• 1993 - Entry of private sector funds.1st mutual fund regulations came into existence (under which all MF’s registered except UTI).

• 1996 - 1993 SEBI(MF) regulations were revised.Industry functions under the control of SEBI.

• Jan2003(Yearend) - 33 MF’s with total assets of Rs.1,21,805crores.

UTI with Rs.44,541crores of AUM.

FOURTH PHASE: (since February 2003)

• Feb2003 - UTI bifurcated into two separate entities.

COMPANY PROFILE

SET UP DATE JUN-29-1987

INCORPORATION DATE FEB-07-1992

SPONSER STATE BANK OF INDIA

TRUSTEE SBI MUTUAL FUND TRUSTEE COMPANY PRIVATE LIMITED

CHAIRMAN Mr. PRATIP CHUDHRI

CEO/MD Mr. DINESH KUMAR KHARA

COO Mr. ARUN AGARAWAL

NO. OF BRANCHES 161 ACROSS 27 STATES & 4 UNION TERRITORIES

TOTAL EMPLOYEES 600

CIO Mr. NAVNEET MUNOT

COMPLIANCE OFFICER MS.VINAYA DATAR

INVESTOR SERVICE Mr. C A SANTOSH

AUDITORS HARIBHAKTI & CO, M/S.CHANDABHOY & JASSOOBHOY

ASSETS MANAGEDRS47184.11CRORE(JUN30,2012)

CORPORATE OFFICE SBI FUNDS MANAGEMENT PVT LTD. A JOINT VENTURE

BETWEEN SBI & AMUNDI(FRANCE).

191,MAKER TOWER ‘E’,COFFE PARADE, MUMBAI-400 005.

Review of literature

Capon et al 1992 - modern finance theory .

Purchase decisions - on the basis of investors beliefs regarding the future return and risk of those assets.

Markowitz 1959 - multi attribute framework

Where return and risk are merely two aspects of a set of attributes whose importance varies across consumers

Need for the studyTax often make life seem like a burden.

Every one wish to invest our hard-earned money into the best plan for future gain without worrying about Tax. This is why SBI Mutual fund presents SBI Magnum Tax gain Scheme, an ELSS, for investors who wish to address two critical issues-Tax planning and Wealth creation.

It also has the distinction of being one of the largest Tax-Saving funds in the country.

SBI Magnum Tax gain Scheme has grown 34 times in 22 years.

Objectives of the studyWith a view to find out the solutions for why to invest in tax saving scheme, the following objectives have been framed.

To find out the Performance of Tax saving scheme in relation with market performance.

To evaluate the performance by using different models of performance evaluation.

To analyze the facts relating to NAV

To identify risk and returns involved in Tax saving scheme.

To know the benefits in Tax saving scheme compared to other schemes.

THANK YOU