Summer Trainning Project Report

PROJECT REPORT
ON
INVESTORS PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND
An internship project report submitted in partial fulfillment of the requirements
Of
Master of Business Administration (MBA)
Under the supervision of

(Mr. Ravneet pal Singh RM ISD HEAD SBI
MUTUAL
FUND JAMMU)
Submitted by:
Submitted To:
ASHVIN SINGH
PROF. M.K JHA
15MBA1383
MBA 3RD SEMESTER
CHANDIGARH UNIVERSITY
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UNIVERSITY SCHOOL OF BUSINESS

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DECLARATION
I, ASHVIN SINGH, here declare that, I am the sole author of the project titled
INVESTORS PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND
submitted to the University School of Business Studies, just in fulfillment of the
requirements for the award of the degree of Master of Business Administration in The
School of Business Studies. That, it is an original research work carried out by me. This
project contains no material previously published or written by another person except
where due reference is made.
ASHVIN SINGH
MBA (3RD SEM)
15MBA1383
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ACKNOWLEDGEMENT
It is not possible to prepare a project report without the assistance & encouragement of
other people. This one is certainly no exception.
On the very outset of this report, I would like to extend my sincere & heartfelt obligation
towards all the personages who have helped me in this endeavor. Without their active
guidance, help, cooperation & encouragement, I would not have made headway in the
project.
I am ineffably indebted to RAVNEET PAL SINGH for conscientious guidance and
encouragement to accomplish this assignment.
I am extremely thankful and pay my gratitude to DR. M.K JHA for his valuable
guidance and support on final completion of this project in its presently.
I extend my gratitude to CHANDIGARH UNIVERSITY for giving me this opportunity.
I also acknowledge with a deep sense of reverence, my gratitude towards my parents and
member of my family, who has always supported me morally as well as economically.
At last but not least gratitude goes to all of my friends who directly or indirectly helped
me to complete this project report.
Any omission in this brief acknowledgement does not mean lack of gratitude.
Thanking You
ASHVIN SINGH
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GUIDE CERTIFICATE
It is certified that the Project Report titled INVESTORS PERCEPTION ABOUT

INVESTMENT IN MUTUAL FUND being submitted by ASHVIN SINGH student of
MBA (2015-2017) is genuine work carried out under my supervision and guidelines.
This project Work is the partial fulfillment of the requirement for the degree of Master of
Business Administration from University School of Business, Chandigarh University,
Mohali.
PROF.
M.K JHA
SIGNATURE
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INDEX
PAGE NO.
CHAPTER
Executive Summary
INTRODUCTION
Introduction to Mutual Fund

History of Indian Mutual Fund Industry
Classification of Mutual Fund
Corporate Profile
Fund House Expert
Brief Background of Sponsors, Trust, Trustee Co.& AMC Co.
Introduction to SBIMF
Products of SBIMF
Asset Allocation of some important funds
Awards AND Achievements
Objectives and Scope of the study
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37
38
42
60
61
64
65
Review of Literature
Database & Research Methodology

Analysis & Interpretation of the data
Findings
Conclusion
Bibliography
Questionnaire
EXECUTIVE SUMMARY
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In few years Mutual Fund has emerged as a tool for ensuring ones financial well being. Mutual
Funds have not only contributed to the India growth story but have also helped families tap into the
success of Indian Industry. As information and awareness is rising more and more people are enjoying
the benefits of investing in mutual funds. The main reason the 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 decide to invest
in mutual funds increases to as 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 sales process that
customers will accept as important and relevant to their decision. This Project gave me a great
learning experience and at the same time it gave me enough scope to implement my analytical ability.
The analysis and advice 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. This Report will help to know about the investors Preferences in Mutual Fund means are they
prefer any particular Asset Management Company (AMC), Which type of Product they prefer, Which
Option (Growth or Dividend) they prefer or Which Investment Strategy they follow (Systematic
Investment Plan or One time Plan). This Project as a whole can be divided into two parts.The first
part gives an insight about Mutual Fund and its various aspects, the Company Profile, Objectives of
the study, Research Methodology. One can have a brief knowledge about Mutual Fund and its basics
through the Project.
The second part of the Project consists of data and its analysis collected through survey done on 150
people. For the collection of Primary data I made a questionnaire and surveyed of 150 people. I also
taken interview of many People those who were coming at the SBI Branch where I done my Project. I
visited other AMCs in Jammu to get some knowledge related to my topic. I studied about the products
and strategies of other AMCs in Jammu to know why people prefer to invest in those AMCs.
This
Project covers the topic INVESTORS PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND.
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The data collected has been well organized and presented. I hope the research findings and conclusion
will be of use.
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INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.

Mutual fund is a trust that pools the savings of a number of investors who share a common financial
goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the
fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciations realized are shared by its unit holders in proportion the
number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common
man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. A Mutual Fund is an investment tool that allows small investors access to a welldiversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or
loss of the fund. Units are issued and can be redeemed as needed. The funds Net Asset value (NAV) is
determined each day.
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.
When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the
fund in the same proportion as his contribution amount put up with the corpus (the total amount of the
fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder.
Any change in the value of the investments made into capital market instruments (such as shares,
debentures etc) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market
value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing
the market value of scheme's assets by the total number of units issued to the investors.
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STRUCTURE OF MUTUAL FUNDS

The structure of Mutual Funds in India is governed by the SEBI (Mutual Fund) Regulations, 1996
(hereinafter referred to as SEBI Regulations). These regulations make it mandatory for Mutual Funds to
have a Three-tier Structure of Sponsor Trustee- Asset Management Company (AMC).
Sponsor
The sponsor is the promoter of the mutual fund. The sponsor establishes the mutual fund and registers
same with SEBI. It appoints the trustees, Custodians and the AMC with prior approval of SEBI, and in
accordance with SEBI Regulations. Sponsor is required to contribute at least 40% of the capital of the
AMC.
Trustees
The Mutual Fund, which is a trust, is managed by a Trust Company or a Board of Trustees. Board of
trustees and trust companies are governed by the provisions of the Indian Trust Act. The appointment of
all the trustees has to be done with the prior approval of SEBI. There must be at least 4 members in the
board of Trustees and at least 213 of the members of the board of trustees must be independent. One of
the major tasks of the Trustees is to appoint AMC, in consultation with the Sponsor and SEBI
regulations.
Asset Management Company (AMC)

Asset Management Company, registered with SEBI, can be appointed as investment managers of mutual
funds. AMC must have a minimum net worth of 10 crore at all times. An AMC cannot be an AMC or
Trustee of another Mutual Fund. AMC appoints the Fund Managers in consultation with trustees.
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ADVANTAGES OF MUTUAL FUND
Portfolio Diversification
Professional management
Reduction / Diversification of Risk
Liquidity
Flexibility & Convenience
Reduction in Transaction cost
Safety of regulated environment
Choice of schemes
Transparency
DISADVANTAGE OF MUTUAL FUND
No control over Cost in the Hands of an Investor
No tailor-made Portfolios
Managing a Portfolio Funds
Difficulty in selecting a Suitable Fund Scheme
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HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

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. Though the growth was slow, but it accelerated
from the year 1987 when non-UTI players entered the Industry.
In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as
well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under
Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the Aum to Rs.
470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion.
The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry
can be broadly put into four phases according to the development of the sector. Each phase is briefly
described as under.
First Phase 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament 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 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
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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)

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 Kothari Pioneer (now merged with
Franklin Templeton) 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. As at the end of January 2003, there were 33 mutual funds with total assets of Rs.
1,21,805 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
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 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 consolidation and growth. As at the end of
September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under 421 schemes.
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CLASSIFICATION OF Mutual Fund

Every investor is unique
At SBI Mutual Fund we know that every investor has unique financial goals and requires a different set
of products. Which is why, we have a wide range of schemes that fulfill every kind of investors
requirements. Each scheme is managed by devising a different strategy which is reflective of the
investors profile and carries with it different risks and rewards. A mutual fund is just the connecting
bridge or a financial intermediary that allows a group of investors to pool their money together with a
predetermined investment objectives. A mutual fund is a portfolio, or collection, of individual securities
(some combination of stocks, bonds, or money market instruments) managed according to a specific
objective spelled out in the fund's prospectus. A mutual fund allows investors to pool their money, then
the fund invests it on their behalf. Unlike individual stocks, whose value fluctuates minute by minute,
mutual funds are priced at the end of each day the market is open, based on what the securities in the
portfolio are worth the price per share, or net asset value (NAV). A mutual fund operation flowchart is
mentioned below
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Mutual funds can be classified as follow:

Open-ended funds: Investors can buy and sell the units from the fund, at any point of time.
Close-ended funds: These funds raise money from investors only once. Therefore, after the
offer period, fresh investments can not be made into the fund. If the fund is listed on a stocks
exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most
of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such
as monthly or weekly. Redemption of units can be made during specified intervals. Therefore,
such funds have relatively low liquidity.
Based on their investment objective:
Equity funds: These funds invest in equities and equity related instruments. With fluctuating share
prices, such funds show volatile performance, even losses. However, short term fluctuations in the
market, generally smoothens out in the long term, thereby offering higher returns at relatively lower
volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have
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outperformed all asset classes in the long term. Hence, investment in equity funds should be considered
for a period of at least 3-5 years. It can be further classified as:
I. Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their
portfolio mirrors the benchmark index both in terms of composition and individual stock weight ages.
II. Equity diversified funds- 100% of the capital is invested in equities spreading across different
sectors and stocks.
III. Dividend yield funds- It is similar to the equity diversified funds except that they invest in companies
offering high dividend yields.
iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g.
-An infrastructure fund invests in power, construction, cements sectors etc.
v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest
in banking stocks.
vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.
Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-return
ladder, they fall between equity and debt funds.
Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across
various instruments. Following are balanced funds classes:
i) Debt-oriented funds -Investment below 65% in equities.
ii) Equity-oriented funds -Invest at least 65% in equities, remaining in debt.
Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of
taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like
bonds, debentures, Government of India securities; and money market instruments such as certificates of
deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds
depending on your investment horizon and needs.
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i. Liquid funds- These funds invest 100% in money market instruments, a large portion being invested
in call money market.
ii. Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills.
iii. Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which
have variable coupon rate.
iv. Arbitrage fund-They generate income through arbitrage opportunities due to mis-pricing between
cash market and derivatives market. Funds are allocated to equities, derivatives and money markets.
Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities.
v. Gilt funds LT- They invest 100% of their portfolio in long-term government securities
vi. Income funds LT- Typicall, such funds invest a major portion of the portfolio in long-term debt
papers.
vii. MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30%
to equities.
viii) FMPs- Fixed monthly plans invest in debt papers whose maturity is in line with that of the fund.
INVESTMENT STRATEGIES
1. Systematic Investment Plan: Under this a fixed sum is invested in each month on a fixed date of
month. Payment is made through post dated cheques or direct debt facilities. The investor gets fewer
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units when the NAV is high and more units when NAV is Low. This is called as the benefit of Rupee
Cost Averaging (RCA)
2. Systematic Transfer Plan: Under this an investor invest in debt oriented fund and give instructions
to transfer a fixed sum at a fixed interval to an equity scheme of the same Mutual Fund.
3. Systematic Withdrawal Plan : If someone wishes to withdraw from a mutual fund then he can
withdraw a fixed amount each month.
CORPORATE PROFILE
Our Identity
With 28 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
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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.
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
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our investors with opportunities for long-term growth in capital, through well-researched investments in
a diversified basket of stocks of Indian Companies.
FUND HOUSE EXPERTISE

Investment Expertise
The best investment strategies put together by the best minds, our Fund Managers. With a sharp eye to
monitor, gauge and understand the changes in the market, our fund managers and analysts gear up to
meet new challenging environments. Their ability to capture the growth potential of Indian securities
and manage complex portfolios as well as the drive to deliver optimum results is their forte. With
superior securities selection, incisive research, intensive coverage including internal forecasts, active
monitoring and regular tracking, our dedicated team ensures minimization of risks while protecting our
investor's interest always.
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Investment Philosophy
Growth through innovation
Our expert team of experienced and market savvy researchers prepare comprehensive analytical and
informative reports on diverse sectors and identify stocks that promise high performance in the future.
What is innovation? Innovation is the process of turning ideas into concrete plans for progressive
growth. We always seek to provide our investors with opportunities for progressive growth through our
innovative products, superior stock selection and active portfolio management. Accordingly, we also
enhance and optimize asset allocation and stock selection based on internal and external research.
Derivatives are used to hedge and rebalance portfolios to keep the risk factors at reasonable levels.
The three main phrases, which act as a guiding force for the investment performance, are as follows:
Long-term capital appreciation for the investor: Our fund manager's view is not guided by
any momentum play but by the objective of generating sustainable performance for the investor.
Superior stock selection: Our team is encouraged to be ahead of the rest of the industry in terms of
identifying new ideas & opportunities.
Active fund management: While the performance of all the funds is benchmarked against a
specific index, we do not encourage our investment team to replicate the index composition with the
fund portfolio.
Optimal Risk Management

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Risk Management is an inherent part of any business. As one of the core focus areas, each of our
strategies is subject to close scrutiny on a continuous basis. Regulatory agencies around the world are
placing increasing pressure on institutions to measure and manage risk better. At SBI Funds
Management, we follow enterprise wide approach to risk management with a dedicated, experienced
and professional risk management team covering significant functions of the organization. Risk
Management focuses on:
Identifying actual and potential areas of risk

Assessing the adequacy of internal controls
Proposing risk mitigating measures and
Safeguarding investor interest through ongoing analysis and monitoring
Investment Objective
Setting benchmarks time and again. For our investors, our objective is to endeavor to outperform our
benchmarks through well researched investments in Indian equities. This is achieved by implementing
an active management style based on fundamental analysis, leading to the construction of a portfolio. It
could be blended, large cap, mid cap, or specific sector oriented - which aims at capturing the growth
potential of Indian equities.
BRIEF BACKGROUND OF SPONSORS, TRUST, TRUSTEE CO.

AND AMC CO.
State Bank of India
SBI Mutual Fund is sponsored by State Bank of India, the largest public sector bank in India. The
Sponsor is the Settler of the Mutual Fund Trust. The Sponsor has entrusted a sum of 5Lakhs to the
Trustee as the initial contribution towards the corpus of the Mutual Fund.The State Bank of India SBI
having its Corporate Office at State Bank Bhavan, Madame Cama Road, Mumbai - 400 021, is the
largest public sector bank in India with 14,097 branches in India and 173 offices in 34 countries
worldwide. SBI also has 5 Banking Subsidiaries in addition to other nonbanking subsidiaries in India.
State Bank of India holds 63% stake in SBI Funds Management Private Limited.
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SBI Mutual Fund

SBI Mutual Fund (SBIMF) was set up as a Trust by the settlers, State Bank of India on June 29, 1987
with SBI Mutual Fund Trustee Company Private Limited (The Trustee Company) as a Trustee in
accordance with the provisions of the Indian Trust Act,1882 and is duly registered under the Registration
Act, 1908. The Trustee has entered into an Investment Management Agreement dated May 14, 1993 and
also a supplemental thereto on April 28, 2003, which was replaced by Restated and Amended
Investment Management Agreement December 29, 2004 with SBI Funds Management Private Ltd. (the
AMC) to function as the investment Manager for all the Schemes of SBI MF. SBI MF was registered
with SEBI on December 23, 1993 under Registration Code MF-009/93/3.
SBI Mutual Fund Trustee Company Private Limited

The Trustee is the exclusive owner of the Trust Fund and holds the same in trust for the benefit of the
unit holders. The Trustee has been discharging its duties and carrying out the responsibilities as provided
in the Regulations and the Trust Deed. The Trustee seeks to ensure that the Fund and the Schemes
floated there under are managed by the AMC in accordance with the Trust Deed, the Regulations,
directions and guidelines issued by the SEBI, the Stock Exchanges, the Association of Mutual Funds in
India and other regulatory agencies.
SBI Funds Management Private Limited

SBI Funds Management Private Limited (SBIFMPL) is a private limited company incorporated under
the Companies Act, 1956 on February 17,1992, having its Registered Office at 191, Maker Tower E,
19th Floor, Cuffe Parade, Mumbai 400 005. SBIFMPL has been appointed as the Asset Management
Company of the SBI Mutual Fund by the Trustee vide Investment Management Agreement (IMA) dated
May 14, 1993 and also a supplemental thereto on April 28, 2003 and the same have been replaced by
Restated and Amended Investment Management Agreement entered into between SBIMFTCPL and
SBIFMPL on December 29, 2004.
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As per the audited accounts on 31st March, 2012, the authorized and paid-up capital of the AMC was 50
crores and the Networth of the AMC was 304.39 Crores. SBI FMPL is a joint venture between State
Bank of India (SBI) and Amundi India Holding (AMUNDI), a leading European asset management
company. A shareholder agreement in this regard has been entered on April 13, 2011 amongst SBI &
AMUNDI. Accordingly, SBI currently holds 63% stake in SBI FMPL and the 37% stake is held by
AMUNDI through Amundi India Holding. AMUNDI shall provide strategic support to the Company.
SBI & AMUNDI shall jointly develop the Company as an asset management company of international
repute by adopting global best practices and maintaining international standards.
In terms of Investment Management Agreement, SBIFMPL has assumed the day to day investment
management of the fund and in that capacity makes investment decisions and manages the SBI Mutual
Fund Schemes in accordance with the scheme objectives, Trust Deed, provisions of Investment
Management Agreement and SEBI Regulations & Guidelines.
In addition to the investment management activity, SBI Funds Management Private Limited has also
been granted a certificate of registration as a Portfolio Manager with Registration Code INP000000852.
SEBI has renewed the certificate for a period from January 16, 2010 to January 15, 2013.
Apart from this SBI Funds Management Private Limited has received an In-principle approval from
SEBI for SBI Resurgent India Opportunities Fund (Offshore Fund) vide letter no. IMD/RK/53940/2005
dated November 16, 2005. The AMC certifies that there would be no conflict of interest between the
Asset Management activity and these other activities.
STATUTORY INFORMATION:
a. The Sponsors are not responsible or liable for any loss resulting from the operation of the
schemes of the Fund beyond their initial contribution( to the extent contributed) of 5 lakhs for
setting up the Fund, and such other accretions / additions to the same.
b. The price and redemption value of the units, and income from them, can go up as well as down
with fluctuations in the market value of its underlying investments in securities or fair value in
underlying real estate asset, as the case may be.
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c. The Abridged Annual Report has been extracted from the Audited Balance Sheet, Revenue
Account and Notes to Accounts. The full Annual Report is disclosed on our website
(www.sbimf.com) and is available for inspection at the Head Office of Mutual Fund. The present
and prospective unit holders can obtain a copy of the Trust Deed, the full Annual Report of the
Fund/AMC and the text of the relevant scheme at a price.
LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SETTLER

The main responsibility of the Trustee is to safeguard the interest of the Unit holders and inter-alia
ensure that SBI Funds Management Pvt. Ltd. (SBIFM) functions in the interest of the investors and in
accordance of the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the
provisions of the Trust Deed and the Scheme Information Document of the respective schemes. From
the information provided to the Trustee and the reviews the Trustee has undertaken, the Trustee believes
SBIFM has operated in the interest of the Unit holders. The settler is not responsible or liable for any
loss or shortfall resulting from the operation of the Schemes beyond the initial contribution of 5 lacs
made by it towards setting of SBI Mutual Fund.
INTRODUCTION TO SBI MUTUAL FUND
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SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country with an investor base of
over 5.4 million. With over 28 years of rich experience in fund management, SBI MF brings forward its
expertise in consistently delivering value to its investors. SBI MF draws its strength from India's Largest
Bank State Bank of India and Society General Asset Management, France.
SBI Mutual Fund is a joint venture between the State Bank of India, India's largest banking enterprise
and Societal General Asset Management of France, one of the world's leading fund management
companies. Since its inception SBI Mutual Fund has launched 38 schemes and successfully redeemed 15
of them. SBI Mutual Fund schemes have consistently outperformed benchmark indices. SBI Mutual is
the first bank-sponsored fund to launch an offshore fund - Resurgent India Opportunities Fund. In
October 2015, SBI Mutual Fund are reported to manages over Rs. 98000 crore of assets. The fund has a
network of over 222 points of acceptance 26 investor service centers, 28 investor service desks and 56
district organizers.
PRODUCTS OF SBI MUTUAL FUND

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Equity Schemes
Equity schemes endeavor to provide potential for high growth and returns with a moderate to high risk
by investing in shares. Such schemes are either actively or passively managed, and are best suited for
investors with a long term investment horizon. The primary objective of the equity asset class is to
provide capital growth by investing in the equity and equity related instruments of companies over
medium to long term. Such investments are suitable for those who have risk appetite and can cope if
there is any loss. Risk and return are high in such type of funds and one should read all the scheme
related documents carefully before investing .Equity Funds include diversified Equity funds, Sectoral
funds and Index funds. Diversified Equity Funds invest in various stocks across different sectors while
sectoral funds which are specialized Equity Funds restrict their investments only to shares of a particular
sector and hence, are riskier than diversified Equity funds.
Equity/ Growth Funds
SBI Magnum Equity Fund

SBI Magnum Global Fund
SBI Blue Chip Fund
SBI Magnum Multicap Fund
SBI Magnum Multiplier Fund
SBI Small and Midcap Fund
SBI Magnum Midcap Fund
SBI Emerging Businesses Fund
Sectoral Funds
SBI Contra Fund
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SBI FMCG Fund

SBI IT Fund
SBI Pharma Fund
SBI Banking & Financial Services Fund
Thematic Funds
SBI Magnum COMMA Fund

SBI Infrastructure Fund
SBI PSU Fund
ELSS Funds
SBI Magnum Taxgain Scheme 1993

SBI Tax Advantage Fund - Series I
SBI Tax Advantage Fund - Series II
SBI Tax Advantage Fund - Series III
Index Funds
SBI Nifty Index Fund
Market Neutral Strategy
SBI Arbitrage Opportunities Fund
DEBT SCHEMES
Page 30
The schemes in this asset class generally invest in fixed income securities such as bonds, corporate
debentures, government securities (gilts), money market instruments, etc. 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 Childrens 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 averse investor and as apart of the investment portfolio for other investors.
SBI Savings Fund

SBI Corporate Bond Fund
SBI Magnum Income Fund
SBI Treasury Advantage Fund
SBI Dynamic Bond Fund
SBI Magnum Gilt Fund - Short Term Plan
SBI Magnum Gilt Fund - Long Term Plan
SBI Short Term Debt Fund
SBI Ultra Short Term Debt Fund
SBI Magnum InstaCash Fund
SBI Magnum InstaCash Fund - Liquid Floater
SBI Premier Liquid Fund
Assets Allocation and Sectoral Breakdown of some Important Funds

Equity Schemes:
1 .SBI MAGNUM GLOBAL FUND
(FUND MANAGER: MR. R SRINIVASAN)
Page 31
Large
cap
Small
Mid cap cap
16.72%
67.72%
Other Current Assets
7.31%
8.74%
Large cap
Mid cap
Small cap
Other Current
Assets
SECTORAL BREAKDOWN (%)
PHARMA
INDUSTRIAL MANUFACTURING
FINANCIAL SERVICES
SERVICES
TEXTILES
CONSUMER GOODS
0 10 20 30 40 50 60 70 80 90 100
Page 32
2. SBI EMERGING BUSINESSES (FUND MANAGER: MR. R SRINIVASAN)
LARGE CAP
38.93%
MIDCAP
47.72%
SMALL CAP
9.38%
OTHER ASSETS
3.97%
Large cap
Mid cap
Small cap
Page 33
HEALTHCARE
AUTOMOBILES
PHARMA
FINANCIAL SERVICES
SERVICES
TEXTILES
CONSUMER GOODS
0
10
3. SBI Magnum Multiplier Fund

LARGE CAP
60.46%
20
30
40
50
60
70
80
(FUND MANAGER: MR. JAYESH SHROFF)
MIDCAP
21.62%
SMALL CAP
8.42%
Large cap
Mid cap
Small cap

90 100
Page 34
OTHER ASSETS
9.50%
TELECOM
CEMENTS
ENERGY
IT
HEALTHCARE
AUTOMOBILES
PHARMA
FINANCIAL SERVICES
SERVICES
TEXTILES
CONSUMER GOODS
0 10 20 30 40 50 60 70 80 90 100
4. SBI PHARMA FUND

LARGE CAP
58.10%
(FUND MANAGER: MR. TANMAYA DESAI)
MIDCAP
34.75%
SMALL CAP
1.49%
Large cap
Mid cap
Small cap
Page 35
OTHER ASSETS
5.66%
HEALTHCARE SERVICES
PHARMA
5. SBI FMCG FUND

LARGE CAP
67.00%
10 20 30 40 50 60 70 80 90 100
(FUND MANAGER: MR.SAURABH PANT)

MIDCAP
12.60%
SMALL CAP
17.46%
Page 36
OTHER ASSETS
2.76%
Large cap
Mid cap
Small cap
FMCG
TEXTILES
CONSUMER GOODS
10
6. SBI BLUE CHIP FUND
20
30
40
50
60
70
80
90 100
(FUND MANAGER: MS.SOHINI ANDANI)
Page 37
LARGE CAP
71.92%
MIDCAP
15.41%
OTHER ASSETS
12.76%
LARGE CAP
MIDCAP
OTHER ASSETS

MEDIA&ENTERTAINMENT
METALS
CEMENTS
ENERGY
IT
HEALTHCARE
AUTOMOBILES
PHARMA
FINANCIAL SERVICES
SERVICES
CHEMICALS
CONSUMER GOODS
0
Page 38
8 10 12 14 16 18 20
7. SBI MAGNUM BALANCED FUND
LARGE CAP
33.51%
MIDCAP
27.01%
(Fund Manager: Dinesh & Srinivasan)
SMALL CAP
6.80%
Large cap
Mid cap
Small cap

MEDIA&ENTERTAINMENT
METALS
CEMENTS
ENERGY
IT
HEALTHCARE
AUTOMOBILES
PHARMA
FINANCIAL SERVICES
SERVICES
CHEMICALS
CONSUMER GOODS
0
Page 39
8 10 12 14 16 18 20
OTHER ASSETS
32.68%
8. SBI MAGNUM EQUITY FUND

LARGE CAP
93.81%
(FUND MANAGER: Mr.Srinivasan)
OTHER
ASSETS
6.19.%
LARGE CAP
OTHER ASSETS
Page 40
HEALTH SERVICES
AUTOMOBILES
PHARMA
FINANCIAL SERVICES
SERVICES
CONSUMER GOODS
0
10
15
20
25
9. SBI MAGNUM TAXGAIN SCHEME (FUND MANAGER: Mr.Jayesh Shroff)

LARGE CAP
70.35%
MIDCAP
21.00%
SMALL CAP
0.42%
Large cap
MID cap
SMALL CAP
OTHER CURRENT
ASSETS
Page 41
OTHER ASSETS
8.23%

HEALTH SERVICES
AUTOMOBILES
PHARMA
FINANCIAL SERVICES
SERVICES
CONSUMER GOODS
0
10
15
20
25
DEBT AND LIQUID SCHEME (ASSET ALLOCATION)

1. SBI MAGNUM CHILDRENS BENEFIT PLAN (Fund Manager: Mr. Rajeev)
Page 42
ZERO COUPON BOND
NCA/CBLO/REVERSE REPO
CERTIFICATE OF DEPOSITS
COMMERCIAL PAPER
NON-CONVERTIBLE DEBENTURE
0
2. SBI SAVINGS FUND
10
15
20
25
30
35
40
(Fund Manager: Mr. R. Arun)
ZERO COUPON BOND
COMMERCIAL PAPER
0
3. CORPORATE BOND FUND
10
15
20
25
30
35
(Fund Manager: Mr. Dinesh Ahuja)
Page 43
40
ZERO COUPON BOND
COMMERCIAL PAPER
0
4. SBI MAGNUM MIP-FLOATER
15
20
25
30
35
40
(FUND MANAGER: Mr. Ruchit & Dinesh)
ATED GOVT SECURITIES

TREASURY BILLS
EQUITY SHARES
ZERO COUPON BOND
A/CBLO/REVERSE REPO
RTIFICATE OF DEPOSITS
COMMERCIAL PAPER
NVERTIBLE DEBENTURE
AWARDS AND ACHIEVEMENTS

10
Page 44
SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award - 8 times, CNBC TV
- 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006) and most recently with the
CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes.
Page 45
Page 46
OBJECTIVES OF THE STUDY

1. To find out the Preferences of the investors for Asset Management Company.
2. To know the Preferences for the portfolios.
3. To know why one has invested or not invested in SBI Mutual Fund.
4. To find out the most preferred channel.
5. To find out what should do to boost Mutual Fund Industry.
SCOPE OF THE STUDY

A big boom has been witnessed in Mutual Fund Industry in recent times. A large number of new players
have entered the market and trying to gain market share in this rapidly improving market.
The research was carried on in Jammu. I had been at the Head office of State Bank of India Mutual
Fund Jammu where I completed my Project work. I surveyed on my project Topic INVESTORS
PERCEPTION ABOUT INVESTMENT IN MUTUAL FUND on the visiting customers of the SBIMF
head office.
The study will help to know the preferences of the customers, which company, portfolios mode of
investment, option for getting return and so on they prefer. This project report may help the company to
make further planning and strategy.
Page 47
Review of Literature
Ippolito (1992) states that an investor is ready to invest in those fund or schemes which have resulted in
good rewards and most investors are attracted by those funds or schemes that are performing better over
the worst.
Goetzman (1997) opined that investors psychology affects mutual fund selection for investment and to
withdraw from the fund.
MK Gupta (1994) surveyed household investor to find investors preferences to invest in mutual funds
and other available financial assets. The findings of the study were more relevant, at that time, to the
policy makers and mutual funds to design the financial products for the future.
Kulshreshta (1994) in his study suggested some guidelines to the investors that can help them to select
needed mutual fund schemes.
Shanmugham (2000) conducted a survey of individual investors with the objective to find out what
information source investor depends on. The results explained that they are economical, sociological and
psychological factors which control investment decisions.
Madhusudhan VJambodekar (1996) conducted his study to size-up the direction of mutual funds in
investors and to identify factors that influence mutual fund investment decision. The study tells that
open-ended scheme is most favored among other things and that income schemes and open-ended
schemes are preferred over closed- ended and growth schemes. News papers are used as information
source, safety of principal amount and investor services are priority points for investing in mutual funds.
Page 48
Sujit Sikidar and Amrit Pal Singh (1996) conducted a survey to peep in to the behavioral aspects of
the investors of the North-Eastern region in direction of equity and mutual fund investment. The survey
showed that because of tax benefits mutual funds are preferred by the salaried and self-employed
individuals. UTI and SBI schemes were most preferred in that region of the country over any other fund
and the other funds had been proved archaic during the time of survey.
RESEARCH METHODOLOGY
The report is based on primary as well as secondary data, however primary data collection was given
more importance since it is overhearing factor in attitude studies. One of the most important uses of
research methodology is that it helps in identifying the problems, collecting, analyzing the required
information, data and providing an alternative solution to the problem. It also helps in colleting the vital
information that is required by the top management to assist them for the better decision making both
day to day decision and critical ones.
RESEARCH DESIGN:
Analytical and Descriptive research
DATA SOURCES
Research is totally based on primary data. Secondary data can be used only for the reference. Research
has been done by primary data collection, and primary data has been collected by interacting with
various people. The secondary data has been collected through mutual fund fact sheet, books, websites
and SBI Group mutual fund recovers.
SAMPLING
Page 49
Sampling procedure
The samples were selected from the customers/visitors of SBI Mutual Fund office, Jammu,
irrespective of them being investors or not availing the services or not. Data was also collected through
personal visits to persons in banks by formal and informal talks through filling up the questionnaire
prepared.
Sample size:
The sample size of my project is limited to 150 people only. Out of which only 119 people had invested
in Mutual Fund. Other 31 people did not have invested in Mutual Fund.
Sample Design
Data has been presented with the help of graphs, pie charts, line graphs etc.
LIMITATIONS:
Some of the respondents were not so responsive.
Possibility of error in data collection because many of investors may have not given actual
answers.
Sample size is limited to 150 visitors of SBIMF Office Jammu out of these only 119 had invested
in mutual fund. The Sample size may not adequately represent the whole market.
Some respondents were reluctant to provide personal information which can affect the validity of
all responses.
The research is confined to certain part of Jammu.
Page 50
COMPETITORS OF SBI MUTUAL FUND

Name of Mutual Fund Company/AMC
Website
Axis Asset Management Company Ltd.
www.axismf.com
Birla Sun Life Asset Management Company Ltd
www.birlasunlife.com
HDFC Asset Management Company Ltd
www.hdfcfund.com
ICICI Prudential Asset Management Company Ltd
www.icicipruamc.com
IDBI Asset Management Ltd.
www.idbimutual.co.in
L&T Investment Management Ltd.
www.lntmf.com
Reliance Capital Asset Management Ltd.
www.reliancemutual.com
Sundaram Asset Management Company Ltd
www.sundarammutual.com
UTI Asset Management Company Ltd
www.utimf.com
Tata Asset Management Ltd
www.tatamutualfund.com
NG Investment Management (India) Pvt. Ltd.
www.ingim.co.in
Indiabulls Asset Management Company Ltd.

Page 51
www.indiabullsmf.com
Edelweiss Asset Management Ltd
www.edelweissmf.com
Kotak Mahindra Asset Management Company Ltd.

www.kotakmutual.com
ANALYSIS & INTERPRETATION OF THE DATA

1. Investor age distribution in Jammu.
Age Group
No. of
Investors
<=30
12
31-35
21
36-40
35
Page 52
41-45
26
46-50
30
>50
26
I
n
v
e
s
t
o
r
I
n
v
e
s
t
e
d
i
n
M
u
t
u
a
l
F
u
n
d
40
35
30
25
20
15
10
5
0
<=30
31-35
36-40
41-45
46-50
>50
Age group of investors
Interpretation
According to this chart out of 150 Mutual Fund investors in Jammu,most of them are in the age group
of 36-40 yrs. 20%, the second most investors are in the age group of 46-50 yrs & the least investors
are in the age group of below 30 yrs comprising of only 8% of the total investors.
2. Investor Qualification
Under Graduate
Post
Graduate
47
& 45
Page 53
Above
Others
58
UNDER Graduate
Post Graduate & Above
Others
Interpretation
Out of 150 Investors, 31% investors in Jammu are Under Graduate, 30% are PG/Above and 39% are
others.
3. Occupations of Investor
Government Service
Private Sector
46
23
Page 54
Public Sector
Professional
Business
Retired
Housewife
Student
Others
18
13
9
12
11
4
14
ot
he
rs
H
ou
se
wi
fe
Bu
si
ne
ss
Se
ct
or
Pu
bl
ic
G
ov
er
nm
en
t
Se
rv
ic
e
50
45
40
35
30
25
20
15
10
5
0
Interpretation
Out of 150 investors, 46 are in Govt. sector, 23 in private sector, 18 in public sector, 13 are
Professionals, 9 are business men, 12 are retired, 11 are Housewife,4 are students and 14 are others.
4. Income distribution of investor
Below 1 lac
1-3 lacs
20
48
Page 55
3-5
Above 5 Lacs
47
35
50
MONTHLY SALARY
45
40
35
30
25
20
15
10
5
0
Below 1 lac
1-3 lacs
5-Mar
Above 5 Lacs
Interpretation
Out of 150 investor the income of 20 investor is below 100,000 , 48 investors income is between
100,000-300,000 , 47 investor income is between 300,000-5,00,000 , & 35 investor has their income
greater than 5,00,000.
5. Customer preference about type of investment
Page 56
Saving A/c
Fixed Deposits
Mutual Fund
150
114
90
Mutual Fund
Fixed Deposit
Saving a/c
20
40
60
80
100
120
140
160
Interpretation:
Out of 150 investor, all having saving account,76 % invested in fixed deposits and
60 % invested in mutual fund
6. Primary Goal of Investment:
Page 57
Savings
57
Education
41
House
21
Retirement
31
60
50
40
30
20
10
0
Savings
Education
House
Retirement
Interpretation:
Out of 150 investor,38% invest for saving purposes, 27% invest for Education, 21% for
Retirement & 14% for Housing Purposes.
7. Factor affecting while investing
Page 58
Liquidity
14
Low Risk
48
High Return
78
Trust
10
90
80
70
60
50
40
30
20
10
0
Liquidity
Low Risk
High Return
Trust
Interpretation:
Out of 150 investor 52% are investing due to high return, 32% are invest due to low risk, 9% are
investing due to liquidity, & 7% due to Trust in SBI.
Page 59
8. Awareness regarding mutual funds
Aware
Not Aware
105
45
70 %
Aware
Not Aware
Interpretation:
Out of 150 Investors, &70% are aware towards mutual funds, 30% are not aware.
Page 60
9. Medium to know about mutual funds
Advertisement
Peer Group
Banks
Financial Advisors
25
17
36
72
Interpretation
Out of those who invest in mutual funds( i.e 119 investor), 24% are know about mutual funds through
banks, 48% are from financial advisor, 17% are know through advertisement, & 11% from peer groups
Page 61
10. Invested in Mutual Fund
Invested
Not Invested
119
31
Invested
Not Invested
Interpretation
Out of 150 investor 61% are investing & 39% are not investing
Page 62
12. Which mutual fund select while investing
SBIMF
UTI
KOTAK
HDFC
RELIANCE
OTHERS
45
13
11
23
17
10
SBIMF
UTI
KOTAK
HDFC
RELIANCE
OTHERS
Interpretation
Page 63
Out of 119 investor 38% investor are investing in SBI MF, 19% investor are investing in HDFC, 11%
are in UTI, 14% are in reliance,9% are in kotak & 8% are in others.
13. Preferred Reason for Investment?
Returns
Lower Risk
Credit Rating
Inflation
Company
Lock in Period
53
21
4
9
18
14
60
50
40
30
20
10
Page 64
Lo
ck
in
Pe
rio
d
pa
ny
Co
m
In
fla
tio
n
Cr
ed
it
Ra
tin
g
Ri
sk
Lo
we
r
Re
tu
rn
s
Interpretation
Out of 119 investors, 45% invested due high returns, 18% due to lower risk,3% due to credit rating, 8%
due to inflation, 15% due to company,12% due lock in period.
14. Which type of mutual fund scheme preferred?
Equity
Debt
Hybrid
Exchange Traded Fund
48
36
32
3
60
50
40
30
20
10
0
Equity
Debt
Interpretation
Page 65
Hybrid Exchange Traded Fund
Out of 119 investors, 40% choose equity schemes, 30% choose debt schemes,27%
choose hybrid & 3% choose exchange traded fund.
15. Investment Duration?
Long Term
Short Term
72
47
Long Term
Short Term
Page 66
Interpretation
Out of 119 investors, 60% invested for long term & 40% invested for
short term.
16. Mode of investment will you prefer?
One time investment
53
Systematic investment
plan(SIP)
66
Page 67
One time investment

Systematic
investment plan(SIP)
Interpretation
Out of 119 investors, 55% investors opted SIP & 45% opted One time invested.
17. Type of funds would choose
Having only equity portfolio

Having only debt portfolio
Having equity & debt portfolio
46
34
39
Page 68
Having debt and

equity portfolio
Having only debt
portfolio
Having equity
portfolio
Interpretation
Out of 119 investors, 39% invested in equity portfolio, 33% invested in equity&
debt & 29 % invested in debt only
18. Like to receive the returns every year
Dividend payout
Dividend re-investment
Growth in NAV
38
29
52
Page 69
Growth in NAV
Dividend payout
10
20
30
40
50
60
Interpretation:
Out of 119 investors, 44% prefer growth in NAV, 32% in Dividendpayout and 24% prefer in Dividend re-investment.
19. Would you like to invest in Sector funds?

Yes
No
42
77
Page 70
Interpretation:
Out of 119 investors, 35% showed interest in Sector funds and 65% were not interested.
Findings
Page 71
In Jammu in the Age Group of 36-40 years were more in numbers. The second most
Investors were in the age group of 41-45 years and the least were in the age group of below
30 years
In Jammu most of the Investors were Graduate or Post Graduate and below HSC there
were very few in numbers.
In Occupation group most of the Investors were Govt. employees, the second most
Investors were Private employees and the least were associated with Agriculture.
In family Income group, between Rs. 20,001- 30,000 were more in numbers, the
second most were in the Income group of more than Rs.30,000 and the least were in the
group of below Rs. 10,000.
About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed Deposits,
Only 60% Respondents invested in Mutual fund.
Mostly Respondents preferred High Return while investment, the second most
preferred Low Risk then liquidity and the least preferred Trust.
Only 70% Respondents were aware about Mutual fund and 30% were not.
Among 150 Respondents only 79% had invested in Mutual Fund and 41% did not have
invested in Mutual fund.
Out of 150 Respondents 81% were not aware of Mutual Fund operations, 13% told
there is not any specific reason for not invested in Mutual Fund and 6% told there is
likely to be higher risk in Mutual Fund.
Out of 45 investors of SBIMF mostly have invested due to its association with the
Brand SBI, few Invested because of Advisors Advice and due to better return.
Most of the investors who did not invested in SBIMF due to not Aware of SBIMF, the
second most due to Agents advice and rest due to Less Return.
For Future investment the maximum Respondents preferred HDFC Mutual Fund, the
second most preferred RELIANCE MF, SBIMF has been preferred after them.
60% Investors preferred to Invest through Financial Advisors, 25% through AMC
(means Direct Investment) and 15% through Bank.
55% preferred One Time Investment and 45% preferred SIP out of both type of Mode
of Investment.
The most preferred Portfolio was Equity, the second most was Balance (mixture of
both equity and debt), and the least preferred Portfolio was Debt portfolio.
Page 72
Maximum Number of Investors Preferred Growth Option for returns, the second most
preferred Dividend Payout and then Dividend Reinvestment.
Most of the Investors did not want to invest in Sectoral Fund, only 35% wanted to
invest in Sectoral Fund.
Conclusion
Running a successful Mutual Fund requires complete understanding of the 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 investors in connection with the preferences of Brand (AMC),
Page 73
Products, Channels etc. I observed that many of people have fear of Mutual Fund. They think their
money will not be secure in Mutual Fund. They need the knowledge of Mutual Fund and its related
terms. Many of 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 the investment. People invest in those Companies where they have
faith or they are well known with them. There are many AMCs in Jammu 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 Brand. Reliance, UTI, SBIMF, ICICI
Prudential etc. they are well known Brand, they are performing well and their Assets Under
Management is larger than others whose Brand name are not well known like Principle, Sunderam, etc.
Distribution channels are also important for the investment in mutual fund. Financial Advisors are the
most preferred channel for the investment in mutual fund. They can change investors mind from one
investment option to others. Many of investors directly invest their money through AMC because they
do not have to pay entry load. Only those people invest directly who know well about mutual fund and
its operations and those have time.
Suggestions and Recommendations
Page 74
The most vital problem spotted is of ignorance. Investors should be made

aware of the benefits. Nobody will invest until and unless he is fully
convinced. Investors should be made to realize that ignorance is no longer
bliss and what they are losing by not investing.
Mutual funds offer a lot of benefit which no other single option could offer.
But most of the people are not even aware of what actually a mutual fund is?
They only see it as just another investment option. So the advisors should try
to change their mindsets. The advisors should target for more and more
young investors. Young investors as well as persons at the height of their
career would like to go for advisors due to lack of expertise and time.
Mutual Fund Company needs to give the training of the Individual Financial
Advisors about the Fund/Scheme and its objective, because they are the
main source to influence the investors.
Before making any investment Financial Advisors should first enquire about
the risk tolerance of the investors/customers, their need and time (how long
they want to invest). By considering these three things they can take the
customers into consideration.
Younger people aged under 35 will be a key new customer group into the
future, so making greater efforts with younger customers who show some
interest in investing should pay off.
Customers with graduate level education are easier to sell to and there is a
large untapped market there. To succeed however, advisors must provide
sound advice and high quality.
Systematic Investment Plan (SIP) is one the innovative products launched
by Assets Management companies very recently in the industry. SIP is easy
for monthly salaried person as it provides the facility of do the investment in
EMI. Though most of the prospects and potential investors are not aware
about the SIP. There is a large scope for the companies to tap the salaried
persons.
Page 75
BIBLIOGRAPHY
o http://www.outlookmoney.com/invest/mutual-funds/types-of-funds-749
o https://www.sbimf.com/AboutUs/Awards_Achievements.aspx
o https://www.sbimf.com/Downloads/Factsheets.aspx
o https://www.sbimf.com/AboutUs/Corporate_Profile.aspx
o http://www.moneycontrol.com/mutual-funds/amc-details/SB
o https://www.amfiindia.com/new-to-mutual-funds
o https://www.mutualfundindia.com/MF/ResearchReportView/ShowDetails
QUESTIONNAIRE
A study of preferences of the investors for investment in mutual funds.
1. Personal Details:
Page 76
(a)Name:___________________________________________________________
(b)Address:_________________________________________________________
(c) Age: ______________
(d) Qualification:
Undergraduate
___
PG & above
___
Other, Please specify _____________________

(e) Occupation:
Government service
______
Private sector
______
Public Sector
______
Professional
______
Business
______
Retired
______
Housewife
______
Student
______
Other , Please specify

______
(f) What is your family income?
Below 1Lac
______
1-3 Lacs
_____
3-5 Lacs
______
Above 5 Lacs
______
2. What kind of investments have you made so far?
Savings a/c
______
Fixed deposit
______
Mutual funds
______
3. Primary goal of investment:
Savings
______
Education
______
House
______
Retirement benefits
______
4. What do you consider the most important parameter while investing?
Liquidity
______
Low Risk
______
High Returns
______
Trust
______
5. Are you aware about Mutual funds and their operations?
Yes
______
No
______
6. If yes, how did you come to know about Mutual Fund?
Advertisement
______
Peer Group
______
Banks
______
Financial Advisors
______
7 a. Have you ever invested in Mutual Fund?
Page 77
Yes
______
No
______
b. If yes, in which Mutual Fund have you invested?
SBIMF
______
UTI
______
HDFC
______
Reliance
______
Kotak
______
Other, please specify ________________________

8. If invested, tick your preferred reason?
Returns
______
Lower Risk
______
Credit Rating
______
Inflation
______
Company
______
Lock in Period
______
9. In which type of mutual fund schemes have you invested?
Equity
______
Debt
______
Hybrid
______
Exchange Traded Fund

______
10. On the basis of time duration for the investment what kind of investment would you prefer?
Long term
______
Short term
______
11. If you plan to invest in Mutual Funds which mode of investment would you prefer?
Lump Sum/One time investment

______
Systematic Investment Plan (SIP)

______
12. When you want to invest which type of funds would you choose?
Having only equity portfolio

______
Having only debt portfolio

______
Having equity & debt portfolio

______
13. How would you like to receive the returns?
Dividend payout
______
______
Growth in NAV
______
14. Instead of general Mutual Funds, would you like to invest in sector funds?
Yes
______
No
______
Page 78

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PROJECT REPORT

Under the supervision of

PROF. M.K JHA

UNIVERSITY SCHOOL OF BUSINESS

It is certified that the Project Report titled INVESTORS PERCEPTION ABOUT

Introduction to Mutual Fund

Objectives and Scope of the study

Database & Research Methodology

INTRODUCTION TO MUTUAL FUND AND ITS VARIOUS ASPECTS.

STRUCTURE OF MUTUAL FUNDS

Asset Management Company (AMC)

ADVANTAGES OF MUTUAL FUND

Reduction / Diversification of Risk

Flexibility & Convenience

Reduction in Transaction cost

Safety of regulated environment

DISADVANTAGE OF MUTUAL FUND

No control over Cost in the Hands of an Investor

Managing a Portfolio Funds

Difficulty in selecting a Suitable Fund Scheme

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

Third Phase 1993-2003 (Entry of Private Sector Funds)

CLASSIFICATION OF Mutual Fund

Mutual funds can be classified as follow:

Portfolio Management and Advisory Services

FUND HOUSE EXPERTISE

Optimal Risk Management

Identifying actual and potential areas of risk

BRIEF BACKGROUND OF SPONSORS, TRUST, TRUSTEE CO.

SBI Mutual Fund

SBI Mutual Fund Trustee Company Private Limited

SBI Funds Management Private Limited

LIABILITY AND RESPONSIBILITY OF TRUSTEE AND SETTLER

INTRODUCTION TO SBI MUTUAL FUND

PRODUCTS OF SBI MUTUAL FUND

Equity/ Growth Funds

SBI Magnum Equity Fund

SBI Contra Fund

SBI FMCG Fund

SBI Magnum COMMA Fund

SBI Magnum Taxgain Scheme 1993

SBI Nifty Index Fund

Market Neutral Strategy

SBI Arbitrage Opportunities Fund

SBI Savings Fund

Assets Allocation and Sectoral Breakdown of some Important Funds

(FUND MANAGER: MR. R SRINIVASAN)

Other Current Assets

SECTORAL BREAKDOWN (%)

2. SBI EMERGING BUSINESSES (FUND MANAGER: MR. R SRINIVASAN)

SECTORAL BREAKDOWN (%)

3. SBI Magnum Multiplier Fund

(FUND MANAGER: MR. JAYESH SHROFF)

SECTORAL BREAKDOWN (%)

4. SBI PHARMA FUND

(FUND MANAGER: MR. TANMAYA DESAI)

SECTORAL BREAKDOWN (%)

5. SBI FMCG FUND

(FUND MANAGER: MR.SAURABH PANT)

SECTORAL BREAKDOWN (%)

6. SBI BLUE CHIP FUND

(FUND MANAGER: MS.SOHINI ANDANI)

SECTORAL BREAKDOWN (%)

7. SBI MAGNUM BALANCED FUND