ACKNOWLEDGEMENT

I take this opportunity to express my deep gratitude to

all those who came out of their way to help me during
the course of the project.
I express my deep sense of gratitude and thanks to my
vice principal Prof.Indrajeet Chatterjee project guide
for his timely help and guidance.Then I would like to
thanks Prof.Md.Mustaque Ali H.O.D.
I hereby take this opportunity to the Management of
STATE BANK OF INDIA MUTUAL FUND Siliguri for
permitting me to do this project work.I am greatly
indebted to my company guide Mr.Deep chowdhury
for his help and support in completion of this project.
Last but not the least I would like to thanks my parents
and friends for their constant source of inspiration.It
would have not been possible for me to reach this
stage without theirs love and support.
 DECLARATION
I hereby declare that the project work title “SBI
MUTUAL FUND” is bonafide work carried out by me
under the guidance of Prof.Md.Mustaque Ali for the
partial fulfilment of my BBA programme. Any part of
this dissertation is not copied from any other work
carried out by anybody for any other
Institute/University programme.

TARIQUE ATIQUE SIDDIQUI

NAME OF THE STUDENT DATE:
Enrollment No: (A9A461996) PLACE:
 Contents
Chapter 1: Introduction
1.1: Distribution channels
Chapter 2: Details of the organisation
2.1: About Sbi mutual fund
2.2: Management team
Chapter 3: Concept and types of Mutual Funds
3.1: Advantages of Mutual funds
3.2: Drawbacks of Mutual funds
3.3: Systematic Investment Plan (SIP)
3.4: Benefits of SIP
Chapter 4: Research Methodology
Chapter 5: Presentation of Data and Analysis
Chapter 6: Summary and Conclusion

CONCEPTS OF MUTUAL FUND

A mutual fund is a Professionally managed form of
collective investment that pools money from many
investors and invest in stocks,bonds,short term money
market instrument and/or other securities.
In mutual funds, the fund manager, who is also known
as the portfolio manager, trades the underlying
securities realizing capital gain or losses, and collects
the dividend or interest income.
The investment proceeds are then passed along to
individual investors. The value of mutual funds, known
as NAV per share, is calculated daily based on the total
value of fund dividend by number of shares currently
issued and outstanding.
The flow chart below describes the working of mutual
fund.

TYPES OF MUTUAL FUND SCHEMES:

Wide variety of mutual fund schemes exist to cater to the
needs such as financial position, risk tolerance and return
expectations etc.

 Close ended schemes: It has a set of number of shares

issued to public through initial public offering.
 Open ended schemes: They are operated by mutual
fund house which raise money from shareholders and
invest in a group of assets.
 Equity mutual funds: They are also known stock mutual
funds. They invest pool amount of money in stock of
public companies.
 Balanced mutual fund: They are also known as hybrid
mutual funds. It is a type of mutual fund that buy a
combination of common stocks, preferred stocks, bonds
and short term bonds.
 Growth mutual fund: They are those mutual funds that
aim to achieve capital appreciation by investing in
growth stocks.
 No load fund: They can be classified into two types. One
is load and another is no load mutual funds.
 Advantages of mutual funds:
The advantages of investing in a mutual funds are:-
 Professional management
 Diversification
 Convenient administration
 Return potential
 Low costs
 Liquidity
 Transparency
 Flexibility
 Choice of schemes
 Tax benefits
 Well regulated
Drawbacks of Investing in mutual
funds:-

Mutual funds have their drawbacks and may not

be everyone:

 No Guarantees: No investment is risk free. If

the entire stock market declines in value, the
value of mutual fund shares will go down as
well, no matter how balanced the portfolio.
Investors encounter fewer risks when they
invest in mutual funds than when they buy
sell stocks on their own.
 Fees and commissions: All funds charge
administrative fees to cover their day-to-day
expenses.
 Taxes: During a typical year, most actively
managed mutual funds sell anywhere from 20
to 70 percent of the securities in their
portfolio.
 Management risk: When you invest in a
mutual fund, you depend on the fund’s
manager to make the right decisions
regarding the fund’s portfolio.
SYSTEMATIC INVESTMENT PLAN (SIP)

The systematic Investment plan is a simple and time

honoured investment strategy for accumulation of wealth in
a disciplined manner over long term period. The plan aims at
a better future for its investors as an SIP investor gets good
rate of return compared to a one time investor.
What exactly an SIP is?
It is an Investment option that is presently available only with
mutual funds. The other Investment option comparable to
SIP’s is the recurring deposit schemes from post office and
banks. Basically, under an SIP option an investor commits
making a regular investment in a particular mutual
fund/deposit.
A specific amount can be invested for a continuous period at
regular internals under this plan.
SIP is similar to a regular saving schemes like a recurring
deposit. It is a method of investing a fixed sum regularly in a
mutual funds.
It allows the investor to buy units on a given date every
month. The investor decides the amount and also mutual
fund schemes.
BENEFITS OF SYSTEMATIC INVESTMENT
PLAN:
Power of compounding: An investor has two option-
 To invest as and when surplus funds are available.
 To accumulate these smaller savings and to invest at
yearly interval.

Rupee cost averaging:-

Timing the market consistency is a difficult task. Rupee
cost averaging is an automatic market timing
mechanism that eliminates the need to time one’s
investments. Here one need not worry about what share
prices or interest are headed as investment of a regular
sum is done at regular intervals; with fewer units being
bought in a declining market and more units in a rising
markets.

Convenience:-
SIP can be operated by simply providing post dated
cheques with the completed enrolment form or given
ECS Instruction. SIP facility is available in the monthly
income plan, child benefit plan, balanced fund, Equity
fund, Tax saving fund, Growth fund etc.
 RESEARCH METHODOLOGY

Research problem:-

Expanding needs and proliferation of financial products are

making it difficult for individuals to invest without planning.
Most are aware that planning is critical, yet don’t have time or
expertise to develop a plan and therefore proper marketing of
the financial products comes un picture.

Research design:-

This project is more of an exploratory research with more of

qualitative analysis than quantitative. The data collection method for
this project begins with the finding a sample of the population. The
population for this project is entire region of Siliguri.

Objective of the study:-

1. To identify scheme preference of the investor.

2. To identify the profile of the investors.
3. To assess the investor regarding investment in mutual funds.
4. To understand the saving avenue.
5. To learn how to effectively handle the customer.
6. To know about the financial product of mutual fund.

Hyphothesis:-There exist a potential growth in the wealth

management industry and thus this project authenticated the
feasibility of financial advisor in the market.
 Data collection methods and
Instruments:-

The data for this study was collected from a

convenience sample of invest in capital market
frequently. For this purpose a well structured
questionnaire was drafted from a pre-tested one using a
small sample of respondents.
The final questionnaire was administrated to the sample
selected and on the basis of this selected sample the
study was conducted.

Primary data was collected though field work and

telephonic interview.
The secondary datas were collected from company
guide and the other sources like internet, journal,
magazine and newspaper.

Sample Design:-
1. Sample unit:- Sample units are the investors like
business man, people working in pvt sector, govt service and
others.
2. Sample size:- The sample size for the project is 50.
3. Sampling technique:- Sample means selection of
respondents from the database. For the sample
determination of the field study, random or probability.
 LIMITATION OF THE STUDY

This study makes no claim as to its infallibility. But all the

same, the major limitations of the study need to be
mentioned in order to assess the level of accuracy of its
findings.
The limitation need to be identified in order to be
determined the potential of the information obtained,
to be converted into strategy.

The major limitation of the study as perceived during

the time of survey are:-

 The study was restricted to 50 respondents. Due to

this variation in the data collection is not there. It
means the variation in the population is too low.
 The study was confined to Siliguri, hence doesn’t
claim to present a representative picture of the
entire investors of the world or the country due to
obvious constraints like accessibility and delicacy of
the issues involved.
 The perception of investor regarding financial
products is varying from one place to another.
 It doesn’t help in overall decision making. Partial
decision on specific issues without proper timing.
 Summary and Conclusion

It was a great experience working with this project. It gave

me simple scope to learn and grow. This project not only
helped me to know about the different financial products
that are prevailing in the market, but also to know about the
various customers perception regarding this products.
During the survey it was found that Indian Investors are very
much aware of the aspects such as return or benefits from
the particular financial product but are not fully aware of the
risks and problems involved in that particular investors are
proned to all sorts of risks and will not be in a position to
enjoy the returns and benefits they expect. The introduction
of varied products has increased the scope of the financial
sector to a very large extent. Even though these product have
been targeted towards urban market as well as rural market
in India, the rural markets have remained largely untapped.
Therefore, it can be suggested that the investor must gain
proper knowledge about the product before investing. It is
also the responsility of the companies to understand the
customer needs or objectives and reach them effectively with
more transparency.
 Appendix
I am going to do a people perception regarding investment in mutual
fund and other risk free investment schemes. I would be grateful to
you if you spare a few minute to participate in it.

NAME:

ADDRESS:

SEX: MALE FEMALE

AGE:

OCCUPATION. PLEASE TICK ( )

Govt. Pvt. Service Business Agriculture Others

Service

ANNUAL INCOME: PLEASE TICK ( )

Upto Rs Rs 10001 to Rs 15000 to Rs 20001 to Rs 30001

10000 15000 20000 30000 and above

1. WHAT DO YOU NORMALLY ASSOCIATE THE WORD RISK WITH ?

a) DANGER b) UNCERTAINITY c) OPPURTUNITY

2. AFTER YOU HAVE MADE AN INVESTMENT HOW DO YOU FEEL?

a) VERY WORRIED

b) SOMEWHAT WORRIED

c) SOMEWHAT SATISFIED

d) VERY SATISFIED
3. DO YOU INVEST IN SBI MUTUAL FUND? PLEASE TICK ( )

a. YES b. NO
c. NOT DECIDED d. ALREADY DONE

4. WHAT IS THE HORIZON OF YOURS INVESTMENT IN YEARS? PLEASE

TICK ( )

ONE THREE FIVE TEN

YEAR YEAR YEAR YEAR

5. PREFERED MUTUAL FUND COMPANYNTO INVEST? PLEASE TICK ( )

a. RELIANCE b. SBI c. HDFC d. OTHERS

6. WHEN YOU INVEST IN SBI MUTUAL FUND WHICH MODE OF

INVESTMENT WILL YOU PREFER? PLEASE TICK ( )

a. ONE TIME INVESTMENT b. SYSTEMATIC INVESTMENT

PLAN

7. WHAT IS YOUR PREFERENCE IN SBI MUTUAL FUND?PLEASE TICK ( )

a. EQUITY b. INCOME
c. SIP d. BALANCED FUND

8. WHICH TYPE OF MUTUAL FUND DO YOU PREFER?

a. OPEN ENDED SCHEMES b. CLOSE ENDED SCHEMES

9. DO YOU GET INFLUENCED BY THE RETURNS GIVEN BY A FUND OR

BY THE CURRENT NAV OF A FUND? PLEASE TICK ( )
a. BY RETURN b. BY NAV c. BOTH

10. HOW WOULD YOU LIKE TO RECIEVE THE RETURNS EVERY YEAR?
PLEASE TICK ( )

a. DIVIDEND b. DIVIDEND RE- c. GROWTH IN NAV

PAYOUT INVESTMENT
 Bibliography
Sl. No Authors Title of the Publisher Edition/year
name book of the
publication
1. Arnauld AA Investment Wood head 1985
trust Folker Ltd
explained
2. Barua, S.K. Master Vikalpa 1991
Verma share,A
bonaza for
large
investor
3. Gupta, O.P. Investment Tata mc 1977
and Sehgal performance Graw hill
of mutual publication
funds
4. Haslem, J.A. Investors Prentice Hall 1988
guide to International
mutual funds
5. Kothari C.R Research New Age 2nd
Methodology International Edition
Pvt ltd

6. Sathapathy Financial and 2nd

MD management revised
accounting Edition
7. Sharan V International Prentice Hall 3rd
financial International edition
management
8. Jain Sumit financial Taxmann 1st
management Edition
Magazine and journals
1.Chakroborty Manas, Capital ideas”, Business World, Feb 2007.

2.Rustagi Hemant, Indian Mutual Fund Industry”, The Analyst, Jan

2007

3.Fama E.F., Component of Investment performance”, journal of

finance (June).

Web-directories
1.www.google.com

2. www.investopedia.com

3. www.the hindubusinessline.com

4. www.sbimf.com

5. www.wikipedia.org

6.www.indiabizclub.com
 DATA INTERPRETATION AND ANALYSIS
TO understand the investment priorities of the investors the survey
was made on 50 investors.
 1. What do you normally associate the word risk with?

OPTION RESPONDENTS PERCENTAGE

Danger 13 24
Uncertainity 23 36
Opportunity 15 40

DANGER
UNCERTAINITY
OPPORTUNITY

From the survey made, it was found that most investors take risk as
uncertainity.

2.After you have made an investment how do you feel?

OPTIONS RESPONDENTS PERCENTAGE

Very worried 11 22
 Somewhat worried 19 38
Somewhat satisfied 15 30
Very satisfied 5 10

Very worried
Somewhat worried
Somewhat satisfied
very satisfied

It was found that most of the investors are somewhat worried

after they have made an investment because of the risk
involved in it.

2. Do you invest in sbi mutual fund?

OPTIONS RESPONDENTS PERCENTAGE

Yes 27 54
 No 23 46

56

54

52

50

48

46

44

42
yes no

It was found from the survey that most of the people like to invest in
sbi mutual funds which shows that people are ready to take risk.

4. What is the horizon of yours investment?

OPTIONS RESPONDENTS PERCENTAGE
One 9 18
Three 28 46
Five 7 14
Ten 6 12

one
Three
Five
Ten

It was found from the survey that most investors atleast want
to invest for three years but not more than that.They want
huge return in short span of time.

5. Prefered mutual fund company to invest ?

OPTIONS RESPONDENTS PERCENTAGE

 Reliance 16 32
SBI 18 36
HDFC 11 22
Others 4 10

Reliance
SBI
HDFC
Others

It was found that most investors prefer to invest in Reliance because

of high NAV.

7. When you invest in SBI mutual fund which mode of

investment will you prefer?

OPTIONS RESPONDENTS PERCENTAGE

 One time 18 36
SIP 32 64

70

60

50

40

30

20

10

0
One time SIP

It was found that most of the investors prefer to invest in SIP as they
don’t need to invest a lump sum amount.

8. What is your preference in mutual funds?

OPTIONS RESPONDENTS PERCENTAGE
Equity 10 20
SIP 26 52
Income 11 22
Balance 3 6

60

50

40

30

20

10

0
Equity SIP Income Balance

It is clear from the above figures that people like to invest in

SIP than any other kinds of funds.
8.Which type of mutual fund do you prefer?

OPTIONS RESPONDENTS PERCENTAGE

Open ended 18 36
scheme
Close ended 32 64
scheme

Open ended scheme

Close ended scheme

From the above findings it is clear that investors prefer close

ended scheme.
 9. Do you get influenced by the return given by the fund or by
the current NAV of the fund?

OPTIONS RESPONDENTS PERCENTAGE

By return 13 26
By NAV 22 44
Both 15 30

By return
By NAV
Both

It was found in the survey that 44percentage of the investors get

attracted by the NAV of the fund. So when the NAV of the fund is
high then it can attract more investors.

10. How would you like to receive the returns every years?
OPTIONS RESPONDENTS PERCENTAGE
Div-payout 8 16
Div-reinvestment 33 66
Growth in NAV 9 18

70

60

50

40

30

20

10

0
Dividend payout Dividend reinvestment Growth in NAV

More than 66 percentage of the people want to go for

dividend reinvestment option which shows the investors are
highly interested in investment.

About the SBI MUTUAL FUND

SBI Mutual Fund is one of the largest mutual funds in the
country with an investor base of over 5.4 million withover 20
years of experience in fund management, SBI Mutual fund
brings forward its expertise in consistently delivering value
to its investors.

SBI Mutual Fund under State Bank Of India and Societies

General Asset Management Of France and has asset
management experience of more than 25 years. SBI Mutual
Fund offers different kinds of products like growth based
products, income based products and balanced funds.

There many types of funds in SBI Mutual funds:-

1.Equity schemes:-
 Magnum Comma Fund
 Magnum Equity Fund
 Magnum Global Fund
 Magnum Midcap Fund
 Magnum Multiple Fund
 Magnum Multiple Plus 1993
 Magnum Sector Fund Umbrella- Contra Fund
 Magnum Taxgain Schemes

2.Debt Schemes:-

 Magnum Children’s Benefit Plan

 Magnum Income Fund
 Magnum Monthly Income Plan

3.Balanced Fund Schemes:-

  Magnum Balanced Fund

Management Team:-
 ANJAN LAHIRI- ISD HEAD
 NIBIR KARMAKAR-Relationship Manager
 DEEP JYOTI CHOWDHURY-Sales Executive
 CHANDAN GHOSH-Customer Service Officer

ADDRESS:-
Ganeshayan Building, 2nd floor, beside Sky Star Building

Sevoke more, Siliguri-734001

Telephone no: 0353-2537065, 2461703

Fax: 0353-2537065

Cell: 9832070548

E-mail: chandan.ghosh@sbimf.com

Website: www.sbimf.com

For any queries call us on Toll Free no. 1800 425 5425(for BSNL &
MTNL) others may please call 080 2659 9420.