STATE BANK OF INDIA MUTUAL FUND COMPANIES

SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country
with an investor base of over 5.8 million. With over 20 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 Indias Largest
Bank of India and Society General Asset Management, France.
SBI Mutual Fund is Indias largest bank sponsored mutual fund and has an
enviable track record in judicious investments and consistent wealth creation.
The fund traces its lineage to SBI -Indias largest banking enterprise. the
institution has grown immensely since its inception and today it is Indias
largest bank, patronised by over 80% of the top corporate houses of the country.
SBI Mutual Fund is a joint venture between the state Bank of India and Society
General Asset.
Management, one of the worlds leding fund management companies that
manages over

USS 500 Billion worldwide.

In twenty years of operation, the fund has launched 38 schemes and

successfully redeemed fifteen of them. In the process it has rewarded its
investors handsomely with consistent returns. A total of over 5.8 million
investors have reposed their faith in the welth generation expertise of the
Mutual Fund. Schemes of the Mutual fund have consistently outperformed
benchmark indices and have emerged as the preferred investment for millions of
investors and HNIs.
Today, the fund manages over Rs. 42,100 crores of assets and has a diverse
profile of investors actively parking their investments across 38 active schemes,
The fund serves this vast family if investors by reaching out to them through
network of over 130 points of acceptance, 29 investor service centers, 59
investor service desks and 6 Investor Service points. SBI Mutual is the first
bank-sponsored fund to launch an offshore fund - Resurgent India Opportunities

Fund. Growth through innovation and stable investment policies is the SBI MF
credo.
2.4.1 TYPES OF MUTUAL FUND SCHEMES OF SBI
The investments of these schemes will predominantly be in the stock markets
and endeavor will be to provide investors the opportunity to benefit from the
higher returns which stock markets can provide. However they are also exposed
to the volatility and attendant risks of stock markets and hence should be chosen
only by such investors who have high risk taking capacities and are willing to
think long term, Equity Funds include diversified Euqity 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 paticular sector and hence, are
riskier then Diversified Equity funds. Index Funds invest passively only in the
stocks of a particu lar index and the performance of such funds move with the
movements of the index.
(i)Magnum Equity Fund
This actively managed fund offers growth through investment in a portfolio of
select blue chip stocks. The main features of the scheme are:
A diversified equity fund, focusing on aggressive growth
Minimum application of Rs.1000
Entry Load:-Investments below Rs. 5crores -2.25% Inv estments of Rs. 5 crores
and above - NIL SIP/ STP - 2.25%
Exit Lord- Investments below Rs. 5 crores < 6months- 1.00% 6 months and <
12 months -0.50% Investments of Rs 5 crores and above - NIL SIP / STP < 6
months from the date of investment of each instalment - 1.00%
Ideal for investors who wish to benefit from the growth of the equity markets
and are comfortable with the attendant volatility

SIP Minimum amount Rs. 500/ month -12 months Rs. 1000/ month - 6months
Rs.1500/ quarter -12 months
STP Minimum amount Rs. 1000/ month - minimum period of 6 months Rs.
3000/ Quarter -minimum period of 6 months.
(ii) Magnum Tax Gain
Magnum Tax Gain Scheme is an Equity Linked Savings Scheme (ELSS) from
SBI Mutual fund which offers investors tax benefits on an investment up to Rs.
1 Lakhs under section 80c of Indian Income Tax Act 1961. The fund was
launched in the year 1993 and is one of the top performers in the ELSS
category.
Scheme Highlights:
Entry Lord - Investments below Rs. 5 crores -2.25%, investments of Rs. 5
crores and above NIL SIP/STP Entry Lord -2.25%
Exit Lord: NIL SIP :Minimum amount Rs. 500/month 12 months Rs
1000/month - 6months, Rs. 1500/quarter -12 months . STP: Minimum amount
Rs. 1000/ -month - 6months, Rs. 3000/ Quarter 6 months Asset Allocation-80100% in Equity, partly convertible debentures and fully convertible debentures
and bonds & 0-20% in Money market instruments.
Minimum Application Amount - Rs. 500 for purchase & Multiples of Rs. 500
for additional purchase.
Plans & Options - Dividend ooption with payout and reinvestment facility.
RETURNS OF MAGNUM TAXGAIN SCHEME
As on 31 January,
2006

FUND

CATEGORY

(BSE 100)
1-Years

105.57%

59.77%

48.36%

3-Years

99.60%

63.65%

48.28%

5-Years

32.13%

29.82%

18.77%

BENCHMARK

Return Since Launch 19.62%

13.55%

SOURCE: Internet, scheme of SBI MF

II. Magnum Index Fund
Magnum Index Fund invests only in the 50 stocks that constitute S&P CNX
Nifty index in proportion to each stocks weight age in the index. Hence,, who
the portfolio Manager is or what his style is does not really matter in such funds.
Volatility of such schemes will be in synchronization with the index. This
investment is ideal for :
Corporate, Institution, Banks
HNIs and Retail Investors desirous of investing in a basket of Nifty Index
stocks for an investment as low as Rs. 5000/- with liquidity of Openended Mutual Fund
Entry load: Investments below Rs. 50 Lakhs 1.25% Investments of Rs.
Lakhs and above NIL SIP/STP 1.00%
Exit Load: Nil SIP/STP - < 12 months from the date on investment of
each instalment 1.00%
SIP : Minimum amount Rs.500/month 12 months Rs. 1000/month
6months, Rs.1500/quarter 12months\
STP :Minimum amount Rs. 1000/-month 6 months, Rs. 3000/

6months
Divided Option Available
Magnum Sector Funds Umbrella
Launched in August 1999
Minimum investment of Rs. 2000 per sector
Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs.5

crores and above NIL SIP/STP 2.25%

Exit Load: Investment below Rs.5 crores and above NIL
SIP / STP-< 6 months from the date of investment of each instalment
1.00%
SIP : Minimum amount Rs.500/month 12 months Rs.1000/month
6months, Rs.1500/quarter 12 months

 STP : Minimum amount Rs. 1000/month minimum period of 6 months

Rs.3000/ Quarter minimum period of 6 months
Choice of 5 high-growth sectors:

I.T Fund
FMCG Fund
Pharma Fund
Contra Fund

III. Magnum Multiplier Plus Scheme

A diversion equity fund, focusing on steady growth

Open-ended from April 1998
Minimum application of Rs. 1000
Entry Load : Investments below Rs. 5 crores 2.25% investments
of Rs. 5 crores and above NIL SIP/STP 2.25%

Exit Load: Investments below Rs. 5 crores < 6 months 1.00% 6

months and < 12 months 0.50% Investments of Rs. 5 crores and
above NIL
SIP / STP-< 6 months from the date of investment of each
installment 1.00%
SIP : Minimum amount Rs.500/month 12 months Rs.1000/month
6 months, Rs. 1500/quarter 12 months
STP : Minimum amount Rs. 1000/- month minimum period of 6
months Rs.3000/ Quarter minimum period of 6 months
Inter scheme switches to other schemes will not carry an entry load. However
exit load will be applicable.
IV. Magnum Global Fund
The Magnum Global Fund Scheme 1994 commenced from 24 August 1994.
This scheme was launched as a close-ended scheme rdeeming on 30 th

September 1999. The scheme was converted into an Open-Ended Fund from 1 st
October 1999. Main features of the scheme are:
Entry Load : Investments below Rs. 5 crores 2.25% Investments
of Rs. 5 crores and above NIL SIP/STP 2.25%
Exit Load: Investments below Rs. 5 crores < 6 months 1.00% 6
months and < 12 months - .50% Investments of Rs. 5 crores and
above NIL
SIP /STP-< 6 months from the date of investment of each
instalment 1.00%
SIP : Minimum amount Rs.500/month 12 months 12 months
Rs.1000/month 6months, Rs.1500/quarter 12 months.
STP : Minimum amount Rs.1000/month minimum period of 6
months Rs.3000/ Quarter minimum period of 6 months
Inter scheme switches to other equity schemes will not carry
an Entry Load. However exit load will be
V. Magnum Midcap Fund
The latest investment option from SBI Mutual Fund enables you to benefit from
our expertise in the intricacies of Midcap stocks. So you can leave the hard part
of choosing the right stock to grow with and concentrate on enjoying yours
returns, now and in the long run:
Open-ended growth scheme
Entry Load: Investments below Rs. 5 crores 2.25% Investments of Rs. 5
crores and above NIL SIP/STP 2.25%
Exit Load : Investments below Rs.5 crores < 6 months 1.00% 6 months
and < 12 months 0.50%
Investments of Rs.5 crores and above NIL
SIP / STP-< 6 months from the date of investment of each instalment
1.00%
SIP : Minimum amount Rs.500/month 12 months Rs.1000/month
6months, Rs.1500/quarter 12 months
STP : Minimum amount Rs.1000/- month minimum period of 6 months
Rs.3000/ Quarter minimum period of 6 months

Inter scheme switches to other equity schemes will not carry an Entry Load.
However exit load will be applicable.
VI. Magnum Comma Fund
COMMA is an acronym for Commodities in Oil, Metals, Materials and
Agriculture. The objective of the scheme would be to generate opportunities for
growth along with possibility of consistent returns by investing predominantly
in a portfolio of stocks of companies engaged in the commodity business within
the following sectors Oil & Gas, Metals and Materials & Agriculture and in
debt & money market instruments.
Key Features
An open-ended equity investing in stocks of commodity based companies
Entry Load: Investments below Rs. 5 crores 2.25% Investments of Rs. 5
crores and above NIL SIP/STP 2.25%
Exit Load: Investment below Rs.5 crores < 6 months 1.00% 6 months
and < 12 months 0.50% Investments of Rs.5 crores instalment 1.00%
SIP : Minimum amount Rs. 500/month 12 months Rs.1000/month 6
months,
Rs. 1500/quarter 12 months
STP : Minimum amount Rs.1000/month minimum period of 6 months
Rs.3000/ Quarter minimum period of 6 months
Inter scheme switched o other equity schemes will not carry an Entry Load.
However exit load will be applicable.
VII. Magnum Multicap
Scheme objective To provide investors with opportunities for long-term
growth in capital along with the liquity of an open-ended scheme through an
active management of investments in a diversified basket of equity stocks
spanning the entire market capitalization spectrum, debt and money market
instruments.

Fund to invest In large, medium and small cap segements in equity instruments.
The fund would invest a minimum of 50 per cent of its equity/equity related
instruments in large cap stocks and the balance 50 percent would be divided
between mid cap and small caps with a provision to invest at least 10 percent in
mid cap stocks.
Key Features
Launch date -22nd August 2005
Scheme opended for continuous sale and repurchase.
Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs.5
crores and above NIL SIP/STP 2.25%
Exit load : Investments below Rs.5 crores < 6 months 1.00% 6 months
and < 12 months 0.50% Investments of Rs.5 crores and above NIL
SIP / STP-< 6 months from the date of investment of each installment
1.00%
SIP : Minimum amount Rs.500/month 12 months Rs.1000/month
6months, Rs.1500/quarter 12 months
STP : Minimum amount Rs.1000/- month minimum period of 6 months
Rs.3000/ Quarter minimum period of 6 months
Inter scheme switches to other equity schemes will not carry an Entry Load.
However exit load will be applicable
VIII. Blue Chip Fund
Lunch date 23rd December 2005
NFO open from 23rd December 2005 to 29th January 2006
Scheme reopens for continuous sale and repurchase from 17 th February
2006
Minimum investment Rs. 5000 and in multiples of Rs. 1000
Divided and Growth options available, Reinvestment and payout facility
available
Dividend will be completely tax-free. Long term capital gains to be
completely tax-free. Short term capital gains to be taxed at 10% (plus
applicable surcharge and cess)

 Scheme objective: To provide investors with opportunities for long-term

growth in capital through an active management of investments in a
diversified basket of equity stocks of companies whose market
capitalization is atleast equal to or more than the least market capitalized
stock of BSE 100 Index.
Systematic Investment Plan available during the NFO.
Asset allocation pattern
Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs.5
crores and above NIL SIP/TIP 2.25%
Exit Load: Investments below Rs. 5 crores < 6 months 1.00% 6 months
and < 12 months 0.50% Investments of Rs.5 crores and above NIL
SIP /STP -< 6 months from the date of investment of each instalment
1.00%
SIP : Minimum amount Rs.500/month 12 months Rs.1000/month
6months, Rs. 1500/quarter 12 months
STP : Minimum amount Rs.1000/ - month minimum period of 6 months
Rs. 3000/ Quarter minimum period of 6 months.
2.2 KOTAK MAHINDRA MUTUAL FUND LTD.
Kotak Mahindra Mutual Fund (KMMF) has been established as a Trust under
the Indian Trusts Acts, 1882. The trut established KMMF and the Deed of
Amendment have been registered under the Registration Act, 1998 by the office
of the Sub-Registrar of Assurances at Mumbai. KMMF has been registered with
SEBI vide registration number MF/038/98/1 dated 23rd June 1998.
The sponser company, Kotak Mahindra Finance Limited (KMFL), was
converted into Kotak Mahindra Bank Limited (Kotak bank) in March 2003
DER BEINZG GRANTED A BANKING LICENSE BY THE reserve Bank of
India. KMFL promoted by Mr. Uday S Kotak, Mr. S.A.A. Pinto and Kotak &
Co., was incorporated on November 21, 1985, under the name Kotak Capital
Management Finance Limited. In early 1986, the promoters were joined by Late

Mr. Harish Mahindra and Mr. Anand G Mahindra and the Companys name was
changed to Kotak Mahinda Finance Limited.
Kotak & Co is a highly respected trading company of Mumbai, with
international business. KMFL started with a capital base of Rs.30.88 lakhs. The
sponsor and its subsidiaries/associates offed wide ranging financial services
such as loans, lease and hire purchase, consumer finance, commercial vehicles
and car finance, investment banking, stock banking, primary market distribution
of equity and debt products and life insurance. The group has offices in over 50
Indian cities as also In Dubai, Mauritius, London and New York. Kotak
Mahindra (UK) Ltd. An ultimate subsidiary of Kotak Bank, is the first company
owned from India to be registered with the securities and futures authority in
London. Kotak Bank and Goldman Sachs, the latter

being one of he

largest global investment banks. Kotak Mahindra Primus Limited and Fordredit
Kotak Mahindra Limited are joint ventures between Kotak Bank and Ford
Credit International, the global car-financing arm of Ford Motor Company, OM
Kotak Mahindra Life Insurance.
Company Limited is a joint venture Kotak Bank and Old Mutual Plc based in
the UK and with large presence in the South African Insurance market. Some of
the other subsidiaries of Kotak Bank are Kotak Mahindra Securities Limited,
Kotak Mahindra International Limited, Kotak Mahindra Private-Equity Trustee
Limited, Kotak Mahindra Investments Limited, Kotak Mahindra Inc. and Kotak
Forbex Brokerage Limited.
The Spomsor has been a consistently profitable and dividend paying company
since inception. All group companies are professionally run companies,
employing over 1800 professionals including CAs, MBAs and engineers.
2:2.1 PROFIE OF THE STUDY UNIT
Kotak Mahindra Asset Management Company Limited, a company registered
under the Companies Act, 1956, has been appointed to act as the investment
Manager of Kotak Mahindra Mutual Fund vide investment Management

Agreement dated 20th May, 1996, as amended up to date. It is wholly owned

subsidiary of the Sponsor, Kotak Mahindra Bank Limited.
An approval has been granted to the Company by the Division of Funds,
Investment Management Department of SEBI for undertaking Portfolio
Management Service under the SEBI (Portfolio Manager) Regulations, 1993.
However the company has not begun such activity.
Scheme details about Kotak Mahindra Asset Management Company.