printout of sbi mutual fund

7/27/2019 Printout of Sbi Mutual Fund

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PRESTIGE INSTITUTE OF MANAGEMENT AND RESEARCH INDORE, (INDIA)

(An Autonomous Institution Established in 1994) Accredited With NAAC Grade A (UGC)

PROJECT REPORT ON

A STUDY ON CUSTOMERS PERCEPTION TOWARDS SBIMUTUAL FUND

FACULTY GUIDE: SUBMITTED BY:

Prof. Bhavna sharma Urja Shrivastava

MBA FA III SEM

Scholar no:1121806558


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DECLARATION

In the undersigned, student of MBA (FA) course hereby declare that this summer internship

project on the topic A STUDY ON CUSTOMERS PERCEPTION TOWARDS SBI MUTUAL

FUND is a genuine work done by Ms. Urja Shrivastava. And all the information and data

collected are authentic to the best of my knowledge.

URJA SHRIVASTAVA


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CERTIFICATE OF FACULTY GUIDE

This is to certify that Ms. Urja Shrivastava student of MBA ( FA ) III semester of

Prestige institute of management and Research, Indore has completed her summer training of 7

weeks from June 1st 2013 to July 20th 2013 and prepared this report A STUDY ON

CUSTOMERS PERCEPTION TOWARDS SBI MUTUAL FUNDunder my guidance.

Prof. Bhavna sharma


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Certificate of Guide of the Organization

This is to certify that Ms. Urja Shrivastava student of MBA ( FA ) III semester of

Prestige institute of management and Research, Indore has completed her summer training of 8

weeks in our organization SBI MUTUAL FUND city center, Indore from June 1st 2013 to July

15th 2013 and prepared this report A STUDY ON CUSTOMERS PERCEPTION TOWARDS

SBI MUTUAL FUNDunder my guidance.

Mr. Abhimanyu Bhati

Mr. Gaurav agrawal


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ACKNOLEDGEMENT

Word can never express the extent of indebtedness. But I still wish to express my sincere

gratitude to one and all the people who helped me in the completion of this project report.

Getting this report to your hand was possible purely with support of the dedicated member of

SBI MUTUAL FUND INDORE and encouragement of faculty member of PRESTIGE

INSTITUTE OF MANAGEMENT AND RESEARCH, INDORE.

Let me begin the acknowledgement by thanking and expressing my sincere gratitude towards Dr.

Yogeshwari phatak , Director of Prestige Institute of Management and Research, Indore for

providing me this great opportunity to undertake and accomplish this summer training project at

SBI MUTUAL FUND, INDORE .

I also express my sincere gratitude towards Faculty Guide Prof. Bhavna Sharma, for his co-

operation and the valuable support during the summer training and mentor of the organization

Mr. Abhimanyu Bhati and Mr. Gaurav agrawal for giving their golden time to complete this

project in absence of whom it could not possible to complete this project.

Date: 27/08/2013 URJA SHRIVASTAVA

MBA (FA) III Sem.


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CHAPTER 1

INTRODUCTION OF SBI MUTUAL FUND

MUTUAL FUND AT A GLANCE HISTORY ORGANISATIONAL STRUCTURE TYPES OF MUTUAL FUNDS SCHEMES IN INDIA ROLE OF MUTUAL FUND IN FINANCIAL MARKET ADVANTAGES OF INVESTING IN MUTUAL FUNDS LIMITATIONS OF MUTUAL FUNDS


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MUTUAL FUND AT A GLANCE

A mutual fund is a pool of money that is managed on behalf of investors by a professional

money manager. The manager uses the money to buy stocks, bonds or other securities according

to specific investment objectives that have been established for the fund. In return for putting

money into the fund, youll receive either units or shares that represent your proportionate share

of the pool of fund assets. In return for administering the fund and managing its investment

portfolio, the fund manager charges fees based on the value of the funds assets.

Mutual funds are open-ended investment funds, meaning that new investors can contribute

money to the fund at any time, and existing investors can return their units or shares to the fund

for redemption at any time. When you redeem your units or shares of a mutual fund you will

receive a cheque based on the current market value of the funds portfolio

It is a vehicle for retail and institutional investors to benefit from the capital markets. They offer

different kinds of schemes to cater to various types of investors, retail, companies and

institutions. Mutual fund schemes are offered to investors for the first time through a New Fund

Offering (NFO). Thereafter, close-ended schemes stop receiving money from investors, though

these can be bought on the stock exchange(s) where they are listed. Open-ended schemes sell and

re-purchase their units on an ongoing basis.

Know Your Client (KYC) process is centralized in the mutual fund industry. Therefore, the

investor needs to complete the formalities only once with the designated KYC service provider.

The KYC confirmation thus obtained is valid for investment with any mutual fund.

A feature of mutual fund schemes is the low minimum investment amount as low as Rs. 1,000

for some schemes. This makes it possible for small investors to invest. The expense ratio (which

is not more than 2.5% in many schemes, especially liquid and index funds and goes below 0.05%

in some schemes)being low also helps in making mutual funds a good instrument for building

wealth over the long term.


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Mutual funds are closely regulated by the Securities & Exchange Board of India (SEBI). The

applicable regulation is the SEBI (Mutual Fund) Regulations, 1996.

Under the regulations, the Board of Trustees performs an important role in protecting the

interests of investors in mutual fund schemes. Another protective feature is the checks and

balances in the mutual fund system. For instance, while the Asset Management Company (AMC)

handles the investment management activity, the actual custody of the investments is with an

independent custodian. Investor records are mostly maintained by the registrar and transfer

agents (RTAs), who offer their services to multiple mutual funds. In some cases, the AMC itself

maintains the investor records.

SEBI also regulates the investments that mutual fund schemes can make. For instance,

commodities other than gold are not permitted. Even within the permissible investments, SEBI

has prescribed limits for different kinds of schemes.

Rigorous standards of disclosure and transparency make sure that investors get a complete view

of their investments on a regular basis. Consolidated Account Statements, mandated by SEBI,

ensure that the investors investments across various mutual funds in the industry are

consolidated into a single monthly statement. Even those investors, who do not transact, receive

their statement of accounts every 6 months.

CHARACTERISTICS OF A MUTUAL FUND

Investors own the mutual fund.

Professional managers manage the affairs for a fee.

The funds are invested in a portfolio of marketable securities, reflecting the investment

objective. Value of the portfolio and investors holdings, alters with change in market value of

investments


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MUTUAL FUND SCENARIO IN THE WORLD

The following lines give some of the basic facts of about the Mutual funds in the international

arena,

1. The money market mutual fund segment has a total corpus of $ 1.48 trillion in the U.S. against

a corpus of $ 100 million in India.

2. Out of the top 10 mutual funds worldwide, eight are bank- sponsored. Only Fidelity and

Capital are non-bank mutual funds in this group.

3. In the U.S. the total number of schemes is higher than that of the listed companies while in

India we have just 277 schemes

4. Internationally, mutual funds are allowed to go short. In India fund managers do not have such

leeway.

5. In the U.S. about 9.7 million households will manage their assets on-line by the year 2003,

such a facility is not yet of avail in India.

6. On- line trading is a great idea to reduce management expenses from the current 2 % of total

assets to about 0.75 % of the total assets.

7. 72% of the core customer base of mutual funds in the top 50-broking firms in the U.S. is

expected to trade on-line by 2003.

The recent trend in the arena of Mutual fund is investment through Internet Internationally; on-

line investing continues its meteoric rise. Many have debated about the success of e- commerce

and its breakthroughs, but it is true that this aspect of technology could and will change the way

financial sectors function. However, mutual funds cannot be left far behind. They have realized

the potential of the Internet and are equipping themselves to perform better


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HISTORY OF THE ORGANIZATION

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY:

The mutual fund industry in India started in 1963 with the formation of init trust of India, at the

initiative of the government of India and the reserve bank. The history of mutual funds in India

can be broadly divided into four distinct phases.

FIRST PHASE-1964-87

UTI was established on a963 by an Act of parliament as a non-profit organization governed

under a special legislation, the Unit Trust of India Act, 1963. It had a monopoly up to 1987 and

during this period, UTI launched a series of equity and dept schemes and established itself as a

household name with assets under management of Rs.4563 crore and unit holder accounts of

slightly under 3 million by mid 1987. UTIs growth continued up to 1996 when the strong entry

of private sector players saw its share of the market reducing sharply although UTI continuous to

be a dominant force in the Indian financial services industry with assets of over Rs.67,000 crore

as of December 31,1999.

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 and general insurance corporation of India, SBI, canara bank and IDBI.

Predictably they were given the brand of their promoters such as SBI Mutual Fund, LIC Mutual

fund and IDBI Mutual Fund. Other public sector mutual funds also entered the market but UTI

continuer to remain the dominant player with a share of 84% in 1991- 92. SBI mutual fund was

the first non-UTI mutual fund established in June 1987 followed by canara bank mutual


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fund(Dec 87), Punjab national bank mutual fund(Aug 89), Indian 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.

FOURTH PHASE-SINCE FEBRUARY 2003

In February 2003, following the repeal of the unit trust of India act 1963 UTI was bifurcated into

two into two separate entities. One is the specified Undertaking of the Unit Trust of India with

assets under management of Rs.44,541 crores of 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 tothe SEBI Mutual Fund regulations, and with

recent mergers taking place among different private sector funds, the mutual fund industry has

entered its current phase of consolidation and growth. As at the end of October 31, 2003, there

were 31 funds, which manage assets of Rs.126726 crores under 386 schemes.


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HISTORY OF THE ORGANIZATION

In November 1987, SBI Mutual Fund from the State Bank of India became the first non UTImutual fund in India. SBI Mutual Funds (SBI MF) is a partnership between Indias largest bank

State Bank of India and Frances Society General Asset Management. State bank of India owns

63% in SBI MF and the rest 37% is owned by Frances Society General Asset Management. As

on April 30 2009, the company had assets of Rs 37213.06 Corers.

It is currently operating a total of 46 schemes which includes Equity schemes, Debt schemes,

Short term debt schemes, Equity and debt, Gilt fund.

A total of over 6 million people have invested in the funds of SBI. The fund reaches out to

investors through a network of over 150 points of acceptance, 28 investor service centers, 46

investor service desks and 56 district organizers.

On the 17th of May, 2010 the company launched a PSU fund with the aim of investing in public

sector companies which offer significant growth prospects for the investors and also take

advantage of the unlocking of value of some of these companies due to disinvestment by the

government.

SBI mutual funds are sponsored by India's largest bank. One of the reasons that these mutual

funds are so popular is because they have a very good track record of getting money for their

investors. Another large contributor to SBI mutual funds is Society General Asset Management

who manages over 500 billion USD around the entire world. Usually endeavors initiated by SBI

mutual funds have paid off for their investors. Their main motto is "Growth through innovation

and stable investment policies

SBI mutual funds were started over twenty five years ago. Since then they have built to an

investor base of over 6 million people throughout the entire world. SBI mutual funds have come

up with 46 different schemes to increase the wealth of their investors. Fifteen of those have paid

off, increasing the holdings of their investors by a substantial amount. This is one of the highest

success rates of any mutual fund. SBI has also branched out into an off-shore fund called the

Resurgent India Opportunities Fund


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ORGANIZATIONAL STRUCTURE

Mutual fund is a mechanism for pooling the resources by issuing units to the investors and

investing funds in securities in accordance with objectives as disclosed in offer document.

Investments in securities are spread across a wide cross-section of industries and sectors and thus

the risk is reduced. Diversification reduces the risk because all stocks may not move in the same

direction in the same proportion at the same time. Mutual fund issues units to the investors in

accordance with quantum of money invested by them. Investors of mutual funds are known as

unit holders.

The profits or losses are shared by the investors in proportion to their investments. The mutual

funds normally come out with a number of schemes with different investment objectives which

are launched from time to time. A mutual fund is required to be registered with Securities and

Exchange Board of India (SEBI) which regulates securities markets before it can collect funds

from the public.

Fig.: Mutual Funds Operation Flow Char


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ORGANIZATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set

up of a mutual fund:

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.


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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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REGULATORY STRUCTURE OF MUTUAL FUNDS

IN INDIA

The structure of mutual funds in India is guided by the SEBI. Regulations, 1996.These

regulations make it mandatory for mutual fund to have three structures of sponsor trustee and

asset Management Company. The sponsor of the mutual fund and appoints the trustees. The

trustees are responsible to the investors in mutual fund and appoint the AMC for managing the

investment portfolio. The AMC is the business face of the mutual fund, as it manages all the

affairs of the mutual fund. The AMC and the mutual fund have to be registered with SEBI.


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TYPES OF MUTUALFUNDS

BY STRUCTURE

Open - EndedSchemes

Close - EndedSchemes

Interval Schemes

BY NATURE

Equity Fund

Debt Funds

Balanced Funds

BY INVESTMENTOBJECTIVE

Growth Schemes

Income Schemes

Balanced Schemes

Money MarketSchemes

OTHER SCHEMES

Tax SavingSchemes

Index Schemes

Sector SpecificSchemes

PRODUCTS OF MUTUAL FUNDS

TYPES OF MUTUAL FUND SCHEMES:

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial

position, risk tolerance and return expectations etc. thus mutual funds has Variety of flavors,

Being a collection of many stocks, an investors can go for picking a mutual fund might be easy.

There are over hundreds of mutual funds scheme to choose from. It is easier to think of mutual

funds in categories, mentioned below.

A). BY STRUCTURE


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1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all through the year. These do

not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value

("NAV") related prices. The key feature of open-end schemes is liquidity.

2. Close - Ended Schemes:

A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15

years. The fund is open for subscription only during a specified period. Investors can invest in

the scheme at the time of the initial public issue and thereafter they can buy or sell the units of

the scheme on the stock exchanges where they are listed. In order to provide an exit route to the

investors, some close-ended funds give an option of selling back the units to the Mutual Fund

through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one

of the two exit routes is provided to the investor.

3. Interval Schemes:

Interval Schemes are that scheme, which combines the features of open-ended and close-

ended schemes. The units may be traded on the stock exchange or may be open for sale or

redemption during pre-determined intervals at NAV related prices.


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Liquid Funds: Also known as Money Market Schemes, These funds provides easyliquidity and preservation of capital. These schemes invest in short-term instruments like

Treasury Bills, inter-bank call money market, CPs and CDs..

3. Balanced Funds:

As the name suggest they, are a mix of both equity and debt funds. They invest in both

equities and fixed income securities, which are in line with pre-defined investment objective of

the scheme.

B). BY INVESTMENT OBJECTIVE:Growth Schemes:

Growth Schemes are also known as equity schemes. The aim of these schemes is to

provide capital appreciation over medium to long term.

Income Schemes:

Income Schemes are also known as debt schemes. The aim of these schemes is to provide

regular and steady income to investors. These schemes generally invest in fixed income

securities such as bonds and corporate debentures. Capital appreciation in such schemes may be

limited.

Balanced Schemes:

Balanced Schemes aim to provide both growth and income by periodically distributing a

part of the income and capital gains they earn.

Money Market Schemes:

Money Market Schemes aim to provide easy liquidity, preservation of capital and

moderate income. These schemes generally invest in safer, short-term instruments, such as

treasury bills, certificates of deposit, commercial paper and inter-bank call money.


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Load Funds:

A Load Fund is one that charges a commission for entry or exit. That is, each time you

buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range

from 1% to 2%.

No-Load Funds:

A No-Load Fund is one that does not charge a commission for entry or exit. That is, no

commission is payable on purchase or sale of units in the fund.

OTHER SCHEMES

Tax Saving Schemes:

Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time

to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings

Scheme (ELSS) are eligible for rebate.

Index Schemes:

Index schemes attempt to replicate the performance of a particular index such as the BSE

Sensex or the NSE 50.

Sector Specific Schemes:

These are the funds/schemes which invest in the securities of only those sectors or industries as

specified in the offer documents. e.g. Pharmaceuticals, Software, Fast Moving Consumer Goods

(FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the performance of

the respective sectors/industries..


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ADVANTAGES OF INVESTING IN MUTUAL FUNDS

A. Professional Management - The primary advantage of funds is the professionalmanagement 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 - By owning shares in a mutual fund instead of owning individual stocks orbonds, the risk is spread out. 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. In other

words, the more stocks and bonds you own, the less any one of them can hurt you. Large

mutual funds typically own hundreds of different stocks in many different industries. It

wouldn't be possible for an investor to build this kind of a portfolio with a small amount ofmoney.

C. Economies of Scale - Because a mutual fund buys and sells large amounts of securities at atime, its transaction costs are lower than you as an individual would pay.


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D. Liquidity - Open-ended mutual funds are priced daily and are always willing to buy backunits from investors. This means that investors can sell their holdings in mutual fund

investments anytime without worrying about finding a buyer at the right price. In the case of

other investment avenues such as stocks and bonds, buyers are not necessarily available and

therefore these investment avenues are less liquid compared to open-ended schemes of

mutual funds.

E. Regulations - All Mutual Funds are registered with SEBI and they function under strictguidelines 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.

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.


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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. And, depending on the timing of

their investment, investors may also have to pay taxes on any capital gains distributionthey receiveeven if the funds went on to perform poorly after they bought shares.

B) Lack of Control- Investors typically cant ascertain the exact make up of a funds

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- With an individual stock, you can obtain real time pricing

information with relative ease by checking financial websites or by calling your broker.

You can also monitor how a stocks price changes from hour to hour or even seconds to

seconds. 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.


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CHAPTER 2

Introduction of the Project:

RationaleObjective


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RATIONALE:

Topic of the study: A STUDY ONCUSTOMERS PERCEPTION

TOWARDS SBI MUTUAL FUND

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, phadnis

colony and siyaganj,Indore

OBJECTIVES

OBJECTIVE OF PROJECT :

To study customer perception towards investment To study the customers perception towards SBI mutual fund


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CHAPTER 3 Methodology

StudySampleTools for Data CollectionTools for Data Interpretation


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METHODOLOGY

THE STUDY:

The study is exploratory in nature to identify the customer perception towards SBI mutual fund.

SAMPLE SIZE :

For collecting data Questionnaire was used and interaction with people has been done to get the

feedback of the customers and investors. For the study sample size was 100 of Indore city. The

questionnaire is having two parts, one is having general information of customers and second is

having questions related to mutual fund.

TOOLS FOR DATA INTERPRETATION:

The collected data was analyzed using percentage analysis and graphical representation.


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ANALYSIS AND FINDINGS

Analysis and Interpretation

RESPONDENTS AGE

age

32 32.0 32.0 32.0

26 26.0 26.0 58.0

21 21.0 21.0 79.0

21 21.0 21.0 100.0

100 100.0 100.0

18-30

30-40

40-50

50&above

Total

Valid

Frequency Percent Valid Percent

Cumulativ e

Percent

18-30

32%

30-40

26%

40-50

21%

50 & above

21%

AGE


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INTERPRETATION:

Out of 100 respondents 32% are 18 to 30 age, 26% are 30 to 40, 21% are 40 to 50 and

remaining 21% are of above 50. So Mutual funds should more concentrate on young generation

because they have less risk on family and they will invest more because of career development

and retirement benefits.


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OCCUPATION OF THE RESPONDENTS

INTERPRETATION:

The responses which I had got 19% were serviceman, 39% were businessman, 19% were

professional and the remaining 23% were other people.

what is your occupation

19 19.0 19.0 19.0

39 39.0 39.0 58.0

19 19.0 19.0 77.0

23 23.0 23.0 100.0

100 100.0 100.0

serviceman

businessman

professional

other

Total

Valid


Cumulativ e

Percent

SERVICEMAN

19%

BUSINESS MAN

39%

PROFESSIONAL

19%

OTHER

23%

OCCUPATION


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MONTHLY INCOME:

INTERPRETATION:

Out of 100 samples 8% are of below Rs.5,000, 18% are of above 5,000 and below Rs.10,000,

17% are of above Rs.10,000 and below Rs.15,000,27% are of above 15,000 and below Rs

20,000, 15% are of above 20,000 and below 25,000 the remaining 15% are of above Rs.25,000

monthly income.

what is your monthly income in rupess

8 8.0 8.0 8.0

18 18.0 18.0 26.0

17 17.0 17.0 43.0

27 27.0 27.0 70.0

15 15.0 15.0 85.0

15 15.0 15.0 100.0

100 100.0 100.0

below 5000

5000-10000

10000-15000

15000-20000

20000-25000

above 25000

Total

Valid


Cumulativ e

Percent

BELOW

5000

8%

5000-10000

18%

10000-15000

17%

15000-20000

27%

20000-25000

15%

25000&ABOVE

15%

MONTHLY INCOME


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AWARENESS

INTERPRETATION:

out of 100 samples 66% are aware of SBI mutual funds i.e. 66 surveyed people know aboutSBI mutual funds and 34% are unaware of the SBI mutual funds. as there is a lack of awareness

in this semi urban city indore, the attempts should be made to create the general 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.

are you aware about of sbi mutual fund

66 66.0 66.0 66.0

34 34.0 34.0 100.0

100 100.0 100.0

yes

no

Total

Valid


Cumulativ e

Percent

YES

66%

NO

34%

AWARENESS


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MUTUAL FUND:

INTERPRETATION:

Out of 100 samples 40% respondents have invested their money in equity mutual funds and the

remaining 35%have invested in debt mutual funds and remaining 25% respondents are not

interested.

do you want to invest your money in the following mutual fund

35 35.0 35.0 35.0

40 40.0 40.0 75.0

25 25.0 25.0 100.0

100 100.0 100.0

debt f und

equity f und

no

Total

Valid


Cumulativ e

Percent

DEBT FUND

35%

EQUITY FUND40%

NO

25%

TYPE OF MUTUAL FUND WANT TO

INVEST


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INVESTED IN MUTUAL FUND:

INTERPRETATION:

Out of 100 samples 65% respondents have invested their money in mutual funds and the

remaining 35% have not invested in mutual funds. So that the potential market available for

targeting is around 35%.

have you invested money in mutual fund

65 65.0 65.0 65.0

35 35.0 35.0 100.0

100 100.0 100.0

yes

no

Total

Valid


Cumulativ e

Percent

YES

65%

NO

35%

PREVIOUS INVESTEMENT IN MUTUAL FUND


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INVESTMENT COMPANIES:

INTERPRETATION:

Out of 100 samples 36% respondents have invested their money in UTI mutual funds, 33%

respondents have invested their money in SBI mutual fund, 20% respondents have invested their

money in reliance money and the remaining 11% respondents have invested their money in other

mutual fund.

in which company you have invested your money

36 36.0 36.0 36.0

33 33.0 33.0 69.0

20 20.0 20.0 89.0

11 11.0 11.0 100.0

100 100.0 100.0

uti

sbi

reliance money

others

Total

ValidFrequency Percent Valid Percent

Cumulat ive

Percent

UTI

36%

SBI

33%

RELIANCE

MONEY

20%

OTHER

11%

PREVIOUS INVESTED COMPANY


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PLANS:

INTERPRETATION:

Out of 100 samples 40% respondents have invested their money in equity scheme mutual

funds, 35% respondents have invested their money in debt scheme mutual fund and the

remaining 25% respondents have invested their money in other scheme

which plan you have taken

35 35.0 35.0 35.0

40 40.0 40.0 75.0

25 25.0 25.0 100.0

100 100.0 100.0

debt f und

equity f und

if any other specif y others

Total

Valid Frequency Percent Valid Percent

Cumulativ e

Percent

DEBT FUND

35%

EQUITY FUND

40%

OTHER

25%

TYPE OF INVESTMENT PLAN


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40

INVESTED IN MUTUAL FUND:

INTERPRETATION:

Out of 100 respondents 31% of them have invested up to Rs.10,000, 41% of them have invested

above Rs 10,000 and below Rs 25,000, 22% of them have invested above Rs 25,000 and below

Rs 50,000, and remaining 6% of them have invested above Rs.50,000 and below Rs 1,00,000.

Mutual fund companies should give advertisement on T.V and other local medium to attract the

customers.

which amount you are contributing to a mutual fund

31 31.0 31.0 31.0

41 41.0 41.0 72.0

22 22.0 22.0 94.0

6 6.0 6.0 100.0

100 100.0 100.0

up to 10000

10000-25000

25000-50000

50000-100000

Total

ValidFrequency Percent Valid Percent

Cumulat ive

Percent

UPTO10000

31%

10000-25000

41%

25000-50000

22%

50000-100000

6%

AMOUNT OF INVESTENT


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41

INFLUENCED TO BUY MUTUAL FUND:

INTERPRETATION:

According to respondents the influencing factor to buy mutual funds was 21% of them were

influenced by Family member,45% were influenced by stock holder/agent,34% of them

influenced by website. People who have invested in mutual funds they have influenced from

family member, stock holder/agent, website.

what influenced your financial planning

21 21.0 21.0 21.0

45 45.0 45.0 66.0

34 34.0 34.0 100.0

100 100.0 100.0

discussion with

f amily member

stock holder/agent

website

Total

Valid Frequency Percent Valid Percent

Cumulativ e

Percent

FRIENDS AND

FAMILY

MEMBER

21%

STOCK

HOLDER/AGEN

TS

45%

WEBSITES

34%

INFLUENCED TO BUY


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42

FACTORS INFLUENCED WHILE TAKING DECISION OF INVESTMENT IN

MUTUAL FUND:

INTERPRETATION:

The various attributes the investors look for while buying the mutual funds are 36% of them

gives preference of Rate of Return, 20% of them gives preference of saving, 16% of them gives

preference of liquidity, 28% of them gives preference of other (tax benefit) People will consider

rate of return as a very high attribute while investing in mutual funds compared to other

attributes like saving, liquidity, and other.

which factor you considered while taking decision to invest in mutual fund

36 36.0 36.0 36.0

20 20.0 20.0 56.0

16 16.0 16.0 72.0

28 28.0 28.0 100.0

100 100.0 100.0

returns

saving

liquidity

if any other specify

Total

Valid


Cumulativ e

Percent

RETURNS

36%

SAVINGS

20%

LIQUIDITY

16%

OTHER

28%

INFLUNCING FACTOR


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45

CHAPTER4

RESULTS

FINDINGS


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46

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

Mutual fund should mainly concentrate on young generation. Around 66% aware about SBI mutual fund. 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.

Around 30% of the investors know about the tax benefits of investing in Mutual Funds.


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SWOT ANALYSIS

STRENGTH

Higher rate of return to the clients

Do not affect the pocket of the client

Customers get influenced by the schemes

WEAKNESS

Return in not sure in short term investment

Less awareness

OPPORTUNITYGrowth in Mutual fund industry

Balanced return

THREATS

Competitors of other banks is a threat to SBI

Market fluctutions


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CHAPTER 5

SUGGESTION AND RECOMMENDATION

CONCLUSION

IMPLICATION OF THE STUDY


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IMPLICATIONS

COMPANY:

This study will be helpful to the company in understanding the customer perceptiontowards SBI mutual fund.

This study also be helpful to the company in designing their future plans , policies andscheme according to customer needs.

RESEARCHERS: This study will be helpful to the researchers for further research as a

secondary data.

GOVERNMENT: This research will be helpful to study the economic market and trends in

the country for formulating the policies and plan.


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SUGGESTION AND RECOMMENDATIONS

1. Convincing ability of the salesperson.since IFAs have a great convincing ability so SBImutual fund should keep s good relationship with them by increasing brokerage and by

having regular meetings with them.

2. Spreading awareness about Mutual fund is required, there is a large customer base of SBIwho have no idea about mutual funds, and they need to be tapped. This can be done

through advertisements, road shows etc.

3. Returns from scheme offered by SBI are very low compared to its competitors, so fundmanagers should try to increase the returns by changing portfolio.

4. Most of the customers of SBI MF are not satisfied with its service, so organization shouldfocus on its operations and provide better service to its customers by sending regular

statements and should train its employees to give first preference to customer satisfaction.

5. People who come to SBI bank for investment in FDs, TDS etc should be convinced toinvest in mutual funds as they give more returns comparatively.

6. Young customers having account with SBI should be convinced to invest in MF as theyare risk taking.

7. Schemes like child benefit plan can be promoted to newly married couples or customerswith small children.

8. Schemes which have performed well in past should be advertised and promoted as it givesa confidence to investors.


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CONCLUSION

Mutual fund is very good for people who have less knowledge of stock market or who dont

have enough time to keep a regular check on the market. Mutual Funds are managed by

professionals, so investor doesnt need to take any tension about his/her money. Selling MF is a

tough task as the product is intangible and the investor doesnt get anything tangible for the

money he pays except an acknowledgement. Though Mutual Funds are popular but still there is a

large number market that has no idea of mutual funds because awareness of mutual fund is less

compared to life insurance and FDs.

Mutual Fund is a service industry so it is very important for the company to provide good service

and make sure it is at par with its competitors. E.g. easy process of investment and redemption,

keeping investors updated with NAVs through email or statements etc.

SBI MF has a good name in the mutual Fund industry because of the name SBI attached to it,

since SBI is one of the oldest and biggest banks of India so it has a big hand in spreading

awareness of SBI MF. SBI MF also has a strong distribution network with effective employees.

Mutual Fund is a good industry to work with because of its transparency and it also with growing

literacy rate in India it has a good future.


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CHAPTER 6

oREFERENCES

oANNEXURE


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o REFERENCES

www.mutualfundindia.com

www.SBImf.com

Management of Banking and Financial Services (Padmalatha Suresh & Justin Paul)

Magazine (SBI Mutual Fund A Partner For Life)


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If any other specify other

9.Which amount you are contributing to a Mutual fund?

Up to 10,000 10,000-25,000

25,000-50,000 50,000-1, 00,000

10. What influenced your financial Planning?

family Member and friends

Stock holder/ Agent

Web site

11. Which factor you considered while taking decision to invest Mutual

Fund?

Returns Saving

Liquidity If any other specify.

12In futures are you interested in invested in SBI Mutual fund?

Yes No


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13. If no why?

1. Risk2.Not much knowledge about the Mutual fund3. Bad experience4. Returns is not fixed5. All of the above

Signature of the person

Thank You for Your Kind Cooperation