1

CERTIFICATE

It is certified that the work contained in the project report titled “SBI Mutual Funds (Blue-Chip
Fund and Magnum equity ESG Fund)” by “Shivangi Bairagi,” has been carried out under my
supervision and that this work has not been submitted elsewhere for a degree*

Signature of Supervisor.

Name - Dr. VINOD ADVANI Assistant Professor

Department -Commerce

Bhopal School of Social Sciences

April, 2021

2
 Title of the Research Project
Analysis of the performance of SBI Mutual Fund (with special
reference to Blue-chip fund and SBI Magnum equity ESG fund).

Research Project Submitted in Partial Fulfillment of the Requirements

for the Degree of

B.COMHonours
by
SHIVANGI BAIRAGI
to the
Dr. VINOD ADVANI
DEPARTMENT OF COMMERCE
BHOPAL SCHOOL OF SOCIAL SCIENCES

Submitted by
ShivangiBairagiGuided by:
Dr. VINOD ADVANI
Assistant Professor
Department of Commerce

3
 DECLARATION

I ShivangiBairagi D/o Mr. SubhashBairagi, declares that this project report entitled “SBI
Mutual Funds”(with special reference to SBI Blue-chip fund and Magnum equity ESG
fund)was carried out by me for the degree of B.COM (Honours) Final year and it is my personal
and authentic work under the guidance and supervision of Mr. Vinod Kumar Adwani. Of
Department of commerce , BSSS College..Theinterpretation put forth are based on my reading
and understanding of the original texts and they are not published anywhere in any form .This
research report is not submitted for any other degree or diploma in any other university.

Name: Shivangibairagi

Class: B.com honours

Date: 30/4/2021

Place:Bhopal

Signature:

Roll No.:18051142

4
 ACKNOWLEDGEMENT

Any accomplishment requires work and an effort of everyone, this project is no different. I feel
grateful that I worked on this project of SBI Mutual Funds. I would like to thank each and
everyone who helped me and supported me throughout this project. First of all I would like to
thankDr. Vinod Advani Sir for the support and valuable guidance in the project. I am extremely
grateful to Mrs. Smitha Pillai for her timely suggestion that helped me alot . Last but not the
least, I am thankful to my parents for seeing me and always having my back throughout this
project work.

5
 CONTENT

CHAPTER TITLE PAGE NO.

INTRODUCTION
1 8-27
1.1 Introduction to the Mutual Funds
 (Meaning and Definition).
 (Current Scenario)
1.2 Introduction to SBI Mutual Funds.
1.3 SBI Blue-Chip Fund.
1.4 SBI Magnum Equity ESG Fund.

Review of Literature
2 28-33
2.1 International Reviews.
2.2 National Reviews.

Research Methodology.
3
3.1 Objective of the study . 34-36
3.2 Research Hypothesis.
3.3 Scope of the Study.
3.4 Limitations of the study.

Data representation and Analysis

4 . 37-47
4.1 Data representation and interpretation.
4.2 Hypothesis Testing.

Result and Discussion

5 48-50
5.1 Major Findings .
5.2 Discussions and Suggestions.
5.3 Conclusion .

6
7
 Chapter-1

INTRODUCTION

1.1 Introduction to the Mutual Funds

MUTUAL FUNDS

Introduction:-
A mutual fund is an investment security that enables investors to pool their money together into
one professionally managed investment. Mutual funds can invest in stock, bonds, cash or a
combination of those assets. The underlying security types, called holdings, combine to form one
mutual fund, also called a portfolio.

In simpler terms, mutual funds are like basket. Each basket holds certain types of shares, bonds
or a blend of shares and bonds to combine for one mutual fund portfolio.

For example, if a investor wants to invest in mutual funds ,he can choose that in which type of
fund he wants to invest like:- Equity fund or Debt fund or both Debt and Equity ones.

Concept of Mutual Fund:-

The concept of Mutual Funds a new feather in the cap of

8
Indian capital. The formal origin of Mutual funds can be traced to Belgium where society
generale de Belgique, was established in 1822 as an investment company to finance investments
in national industries with high associates risks. In

England, the foreign and colonial government trust was established in 1868 to spread risks for
investors over a large number of securities.

The concept of Mutual Funds spread to U.S.A. in the beginning of the 20th century and three
investment companies started in 1924. The post world war-2 period gave an impetus to Mutual
Funds culture in U.S.A. when more and more people invested in mutual funds. Since then, the
concept of mutual fund has been growing all around the world.

In India, first mutual fund was started in 1964 when Unit Trust of India (UTI) was established in
the similar line of operation of the U.K. based investment Trust Companies.

9
 Meaning and Definition

Meaning of Mutual Funds:-

A “Mutual Fund” is an investment vehicle for investors who pool their savings for investing in
diversified portfolio of securities with the aim of attractive yields /returns and appreciation in
their value. As per Mutual Funds book published by Investment Company Institute of the U.S.,
“A Mutual Fund is a financial service organization that receives money from shareholders,
invests it, earn returns on it, attempts to make it grow and agrees to pay the shareholder cash on
demand for the current value of his investment”.

In simple Mutual Funds, are the type of fund which facilitates

investors to invest the capital from a small amount of capital to a certain big amount and it is
basically a long term investment. Long term means it can give yield when the capital is invested
for a long time basically, min 3yrs to 20 yrs.

Mutual Funds are a collection of stocks and bonds that are managed by fund managers in an
Asset Management Company. There are different funds which have been made by different
Mutual fund companies, each fund consist of group of company’s shares which are similar by
their products and traits/ characteristics. For example:- all construction companies will come
under one fund and all banking and finance institutes will come under another fund.

Mutual Funds can be focused on:-

 Equity.
 Debt.
 Gold.
 Liquid Funds.

10
Mutual Fund Types

The different schemes and funds

There are wide variety of Mutual Fund schemes that cater to investor needs, whatever the age,
financial position, risk tolerance and return expectations. The mutual fund schemes can be
classified according to both their investment objective (like income, growth, tax saving) as well
as the number of units (if these are unlimited then the fund is an open-ended one while if there
are limited units then the fund is close-ended).

Open-ended schemes

11
These funds are sold at the NAV based prices, generally calculated on every business day. These
schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity - i.e.
there is no cap on the amount you can buy from the fund and the unit capital can keep growing.
These funds are not generally listed on any exchange.

Open-ended funds are bringing in a revival of the mutual fund industry owing to increased
liquidity, transparency and performance in the new open-ended funds promoted by the private
sector and foreign players. Open-ended funds score over close-ended ones on several counts.
Some of these are listed below:

 Any time exit option :

The issuing company directly takes the responsibility of providing an entry and an exit.
This provides ready liquidity to the investors and avoids reliance on transfer deeds,
signature verifications and bad deliveries

 Tax advantage :
Though Budget 2004 proposals envisage a tax rate of 20.91%(Corporate investors) and
13.06875%(Non-Corporate investors) on dividend distribution made by the Debt funds,
the funds continue to remain attractive investment vehicles. In equity plans there is no
distribution tax

 Any time entry option :

An open-ended fund allows one to enter the fund at any time and even to invest at
regular intervals (a systematic investment plan)

Close ended schemes

Schemes that have a stipulated maturity period, limited capitalization and the units are listed on
the stock exchange are called close-ended schemes.

These schemes have historically seen a lot of subscription. This popularity is estimated to be on
account of firstly, public sector MFs having floated a lot of close-ended income schemes with
guaranteed returns and secondly easy liquidity on account of listing on the stock exchanges.

The closed-ended fund managed by ICICI Prudential Mutual Fund is ICICI Premier.

Classification according to investment objectives

12
Objectives

Mutual funds have specific investment objectives such as growth of capital, safety of principal,
current income or tax-exempt income. In general mutual funds fall into three general categories:

 Equity Funds invest in shares or equity of companies

 Fixed-Income funds invest in government or corporate securities that offer fixed rates
of return
 Balanced Funds invest in a combination of both stocks and bonds

 Growth Funds

These funds seek to provide growth of capital with secondary emphasis on dividend.
They invest in shares with a potential for growth and capital appreciation. Because they
invest in well-established companies where the company itself and the industry in
which it operates are thought to have good long-term growth potential, growth funds
provide low current income. Growth funds generally incur higher risks than income
funds in an effort to secure more pronounced growth.

These funds may invest in a broad range of industries or concentrate on one or more
industry sectors. Growth funds are suitable for investors who can afford to assume the
risk of potential loss in value of their investment in the hope of achieving substantial
and rapid gains. They are not suitable for investors who must conserve their principal or
who must maximize current income.

 Growth and Income Funds

Growth and income funds seek long-term growth of capital as well as current income.
The investment strategies used to reach these goals vary among funds. Some invest in a
dual portfolio consisting of growth stocks and income stocks, or a combination of
growth stocks, stocks paying high dividends, preferred stocks, convertible securities or
fixed-income securities such as corporate bonds and money market instruments. Others
may invest in growth stocks and earn current income by selling covered call options on

13
 their portfolio stocks.

Growth and income funds have low to moderate stability of principal and moderate
potential for current income and growth. They are suitable for investors who can
assume some risk to achieve growth of capital but who also want to maintain a
moderate level of current income.

 Fixed-Income Funds

The goal of fixed income funds is to provide current income consistent with the
preservation of capital.

These funds invest in corporate bonds or government-backed mortgage securities that

have a fixed rate of return. Within the fixed-income category, funds vary greatly in
their stability of principal and in their dividend yields. High-yield funds, which seek to
maximize yield by investing in lower-rated bonds of longer maturities, entail less
stability of principal than fixed-income funds that invest in higher-rated but lower-
yielding securities.

Some fixed-income funds seek to minimize risk by investing exclusively in securities

whose timely payment of interest and principal is backed by the full faith and credit of
the Indian Government. Fixed-income funds are suitable for investors who want to
maximize current income and who can assume a degree of capital risk in order to do so.

 Balanced

The Balanced fund aims to provide both growth and income. These funds invest in both
shares and fixed income securities in the proportion indicated in their offer documents.
Ideal for investors who are looking for a combination of income and moderate growth.

 Money Market Funds/Liquid Funds

For the cautious investor, these funds provide a very high stability of principal while

14
 seeking a moderate to high current income. They invest in highly liquid, virtually risk-
free, short-term debt securities of agencies of the Indian Government, banks and
corporations and Treasury Bills. Because of their short-term investments, money
market mutual funds are able to keep a virtually constant unit price; only the yield
fluctuates.

Therefore, they are an attractive alternative to bank accounts. With yields that are
generally competitive with - and usually higher than -- yields on bank savings account,
they offer several advantages. Money can be withdrawn any time without penalty.
Although not insured, money market funds invest only in highly liquid, short-term, top-
rated money market instruments.

Money market funds are suitable for investors who want high stability of principal and
current income with immediate liquidity.

 Specialty/Sector Funds

These funds invest in securities of a specific industry or sector of the economy such as health
care, technology, leisure, utilities or precious metals. The funds enable investors to diversify
holdings among many companies within an industry, a more conservative approach than
investing directly in one particular company.

These funds invest in securities of a specific industry or sector of the economy such as health
care, technology, leisure, utilities or precious metals. The funds enable investors to diversify
holdings among many companies within an industry, a more conservative approach than
investing directly in one particular company.

Index funds generally buy shares in all the companies composing the BSE Sensex or NSE Nifty
or other broad stock market indices. They are not suitable for investors who must conserve their
principal or maximize current income.

Advantages of Mutual Funds:-

 Diversification:- A large number of investors have small savings with them. They can at the
most buy shares of one or two companies. When small savings are pooled and entrusted to
mutual funds then these can be used to buy shares of many different companies. Thus,
investors can participate in a large basket of shares of different companies.

15
 Liquidity:- A particular advantages of a mutual fund is that investment made in its schemes
can be converted back into cash promptly without heavy expenditure on brokerage, delays,
etc. According to the regulations of SEBI, a mutual fund in India is required to ensure
liquidity.
 Reduced Risk:- As mutual fund invest in large of numbers companies and are managed
professionally, the risk factor of the investor is reduced. A small investor, on the other hand,
may not be in a position to minimize such risks.
 Tax Advantage:-There are certain schemes of manual funds which provides tax advantage
under the Income Tax Act. Thus, the tax liability of an investor is also reduced then he
invests in these schemes of the mutual funds.
 Higher Returns:- Mutual funds are expected to provide higher returns to the investors as
compared to direct investment because of professional management, economies of scale,
reduced risk, etc.
 Safekeeping:- When you own shares in a mutual fund, you own securities in many
companies without having to worry about keeping stock certificates in safe deposit boxes or
sending them by registered mail. You don’t even have to worry about handling a mutual fund
stock certificates; the fund maintains your account on its book and sends you periodic
statements keeping track of all your transactions.

Disadvantages of Mutual Funds:-

 No Control over Costs:- An investor in a mutual fund has no control over the overall cost of
investing. He pays investment management fees as long as he remains with the fund. A
mutual fund investor also pays fund distribution cost. Which he not incur in direct investing.
 No Tailor-Made portfolio:- Investors who invest on their own can build their own portfolio
of shares, bonds and other securities. Investing through funds means he delegates the
decision to the fund manager.
 Managing a Portfolio of Funds:- Availability of a large number of funds can actually means
too much choice for the investor. He may again need advice on how to select a fund to
achieve his objectives, quite similar to the situation when he has to select individual shares pr
bonds to invest in.
 Taxes:- when making decision about your money, fund managers don’t consider your
personal tax situation. For example, when a fund manager sells a security, a capital gains tax

16
 is triggered, which affects how profitable the individual is from the sale. It might have been
more advantageous for the individual to defer the capital gains liability.

CURRENT SCENARIO OF MUTUAL FUNDS

(february 2020)

Mutual Funds, SIP: Investments are never easy. With so many options available in the market, it
is tough choice to make, especially for beginners. Even if you are able to identify the right
scheme for yourself, most investors delay their investments as they look to time the market. The
same applies in case of mutual funds as well.

The current scenario in trickier in India

as the nation is weeks away from 2019 Lok Sabha elections which seems to be clear face off
between P.M. Narendra Modi and Rahul Gandhi. Most investors are hesitant about putting their
money in Mutual Funds ahead of elections due to market volatility.

Many economists told that since investors expect high volatility in the periods immediately
preceding the elections, they often pull back of delay their investments till the results are
announced. They said that this approach is seen more in capital markets.

General elections are known to create a lot of anxiety among the investors. Especially when it
comes to capital markets, one may expect high volatility in the periods of immediately preceding
the elections. One may find investors pulling back or delaying their investments till the final
results are announced. This might create fluctuations in the respective fund value. However, on
the contrary, past record suggests that investing six to eight months before general elections can
give you attractive interest. In fact, SIPs are best in long term and help you deal with ups and
down of markets. In 2009, investors earned even up to 50% gains around election time. Also, the
investors need to understand that the only way to grow money is by investing it. Even if they
don’t invest it, the value of money will erode by time.

Various researches have also revealed

that the markets are likely to go up after the elections. Instead of guessing the outcome of the

17
elections, people should continue to invest in SIPs .In fact, a good time to buy the units at lower
prices.

“But as a prudent investor, one may refrain from timing the markets. Research evidences have
found the markets to go northwards after elections. So instead of staying of staying still and
guessing the outcome, you may go ahead and continue investing your SIPs. In fact, this might be
an opportune time to buy units of winning mutual funds at lower prices”.

1.2 Introduction to SBI Mutual Funds

SBI Mutual Fund is a bank sponsored fund house with its corporate
headquarters in Mumbai, India. It is a joint venture between the State Bank of India, an Indian
multinational, Public Sector banking and financial services company and Amundi, a
European asset management company

SBI Mutual Fund

Type Private company

Industry Mutual Fund

Founded 1987

18
 SBI Headquarters Mumbai, India

Area served India

Key people Mr. Rajnish Kumar (Chairman)

Ashwani Bhatia (CEO& MD)
Mr. NavneetMunot (Executive
Director & Chief Investment Officer)
Binod Kumar Mishra Chief Operating Officer

Products Mutual Fund

AUM Rs. 3,00,000 crore ($43.59 billion) (September

2018)

Number of employees 500-1000

Website sbimf.com

History
The mutual fund industry in India originally began in 1963 with the Unit Trust of India (UTI) as
a Government of India and the Reserve Bank of India initiative. Launched in 1987, SBI Mutual
Fund became the first non-UTI mutual fund in India. In July 2004, State Bank of India decided
to divest 37 per cent of its holding in its mutual fund arm, SBI Funds Management Pvt. Ltd, to
SocieteGenerale Asset Management, for an amount in excess of $35 million. Post-divestment,
State Bank of India's stake in the mutual fund arm came down to 67%. In May 2011, Amundi
picked up 37% stake in SBI Funds Management, that was held by SocieteGenerale Asset
Management, as part of a global move to merge its asset management business
with CréditAgricole.
As of Sept 2015, the fund house claims to serve around 5.8 million investors through 130 points
of acceptance, 29 investor service centres, 59 investor service desks and 6 Investor Service
Points. As of August 2018, assets under management of SBI Mutual Fund are valued at Rs. 2,
33,114 crore ($32.1 billion).

Key milestones
 1987 - Establishment of SBI Mutual Fund.

19
 1991 - Launch of SBI Magnum Equity Fund.
 1999 - Launch of sector funds, India's first contra fund: SBI Contra Fund.
 2004 - Joint Venture with Societe General Asset Management.
 2006 - Became the first bank-sponsored fund to launch an offshore fund – SBI Resurgent India
Opportunities Fund.
 2011 - Stake Transfer from SGAM to Amundi Asset Management.
 2013 - Acquisition of Daiwa Mutual Fund, part of the Tokyo-based Daiwa Securities Group.
 2013 - Launch of SBI Fund Guru, an investor education initiative.
 2015 - Employees' Provident Fund Organisation decided to invest in the equity market for the
first time by investing Rs. 5,000 crore in the Nifty and Sensex ETFs (Exchange Traded Fund) of
SBI Mutual Fund.
 2018 - First AMC in India to launch an Environment, Social and Governance (ESG) fund viz
Magnum Equity ESG Fund
 2018 - Signatory to the United Nations Principles for Responsible Investment (UN-PRI)

Board of Directors
The members of the Board of Directors of SBI Mutual Fund are
 Ashwani Bhatia
 FathiJerfel
 JashvantRaval
 Nicolas Simon
 Om Prakash Gahrotra
 PrafullaAgnihotri
 Dinesh Kumar Khara
 Jean-Yves Glain
 C. N. Ram

Major competitors of SBI MUTUAL FUNDS

Name of Mutual Fund Company/AMC

Axis Asset Management Company Ltd.

Birla Sun Life Asset Management Company Ltd.

20
HDFC Asset Management Company Ltd.

ICICI Prudential Asset Management Company

Reliance Capital Asset Management Ltd.

Tata Asset Management Ltd.

PRODUCTS OF SBI MUTUAL FUND

Equity schemes:

•Magnum COMMA Fund

•Magnum Equity Fund

•Magnum Global Fund

•Magnum Index Fund

•Magnum Midcap Fund

•Magnum Multicap Fund

•Magnum Multiplier plus 1993

•Magnum Sectoral Funds Umbrella

21
•MSFU- Emerging Business Fund

•MSFU- IT Fund

•MSFU- Pharma Fund

•MSFU- Contra Fund

•MSFU- FMCG Fund

• SBI Blue chip Fund

• SBI Infrastructure Fund - Series I

•SBI Magnum Tax gain Scheme 1993

• SBI ONE India Fund

• SBI Tax Advantage Fund - SERIES I

DEBT SCHEMES:

• SBI Magnum Gilt Fund

• SBI Magnum Income Fund

• SBI Dynamic Bond Fund

22
• SBI Credit Risk Fund

• SBI Magnum Medium Duration Fund

• SBI Short Term Debt Fund

• SBI Magnum Low Duration Fund

•SBI Magnum Constant Maturity Fund

• SBI Savings Fund

• SBI Banking and PSU Fund

• SBI Liquid Fund

• SBI Magnum Ultra Short Duration Fund

AWARDSANDACHIEVEMENTS

SBI Mutual Fund (SBIMF) has been the proud recipient of

• The Lipper India Fund Awards 2008

• Mutual Funds Award (ICRA) 2008

• NDTV Profit Awards (Outlook Money)

• Awaaz Consumer Awards 2007(CNBC)

23
• The Lipper India Funds Awards 2007

•Mutual Funds awards (ICRA) 2007

•The Lipper India Fund Awards 2006

1.3 SBI Blue- chip fund

Introduction

SBI Blue-chip fund is an open-ended equity mutual fund scheme of SBI that follows the large
cap asset allocation investment strategy SBI Blue Chip Fund aims to provide investors with
opportunities for long-term growth in capital through an active management of investments in a
diversified basket of large cap equity. The Blue-Chip Fund intends to offer long-term capital
growth through active portfolio management in a diversified bucket of large-cap stock of well-
established companies with good brand equity. The investment objective of the fund is to
provide investors with opportunities for long-term growth in capital through an active
management of investments in a diversified basket of large cap equity, according to SWBI
Mutual Fund.

SBI Blue-chip Fund follows a blend of growth and value styles of investing with a combination
of top down and bottom-up investment strategy for stock selection across sectors.Also,the fund
invests a minimum of 80% in a large cap stocks which are well established companies with good
brand equity and are possibly market leaders in their industries.

CURRENT SCENARIO

Minimum Investment required in Blue chip Fund Is Rs.5000 , and Minimum additional purchase
amount is Rs.1000.Minimum SIP Investment Is Rs.500. SBI Blue-chip is management by
SohiniAndani .She has been managing the fund since septembe,2010.SBI Blue-chip Fund has
the flexibility to invest up to 20% in equities other than large caps or debt or money market
instruments. According to SBI Mutual fund,the suggested investment horizon for investing in

24
SBI Blue-chip Fund is three years and above .The scheme is suitable for investors with a
moderate high risk tolerance.SBI Blue-chip Fund Direct Growth – Latest NAV Rs.57.6819,
Returns ,Performance and Portfolioinvest in SBI Blue-chip Fund Direct Growth – Latest NAV
Rs.57.6819.

Benefits of investing in blue Chip Fund.

1. Capital growth
a. Bluechip equity fund or large cap fund is ideal for an investment horizon of 5 plus
years. Since this mutual fund scheme is for the long term, it will help investors
accumulate significant corpus during their term of the investment. These funds
help in capital appreciation provided the investor stays invested for the long term.
If investors are looking for short term investments, then debt funds are more
suitable.
2. Stability
a. Large cap funds invest in large cap stocks. Large cap stocks are the ones that rank
from 1 to 100 according to market capitalization. These large cap companies are
established businesses serving high quality goods and services. They have a loyal
customer base, established distribution network, and are financially stable. They
are more resilient to economic downturns when compared to mid or small cap
companies. Hence all this brings stability to the portfolio.
3. Diversified business
a. Large cap companies usually have a diversified business portfolio. They do not
rely on one source of income. They spread their wings to multiple sectors and
industries. Hence these companies have an established brand name. All these
increase investor’s confidence in the company giving the stock price more scope
to increase further.

4. Can stand market volatility

During volatile markets, large caps are least affected when compared to mid or small cap
companies. This is because markets have more confidence in these businesses than others
as they continue to operate despite economic conditions.
5. Highly liquid
Large cap funds are highly liquid as they invest in large cap companies. Large cap
companies trade in the market at high volume. They are well researched and highly
followed in the market, making them more liquid. Also, investors have more information
about these companies than others.

25
 1.4 SBI Magnum Equity ESG Fund.

Introduction

SBI Magnum Equity ESG Fund is an open-ended equity scheme that only invests in companies
having Environmental, Social, and Governance (ESG) criteria.This scheme seeks to provide
returns to the investors generated through investments predominantly in Government securities
issued by the Central Government and/or State Government such that the Average Maturity of
the portfolio is around 10 years.. The companies are ranked based on parameters from
governance, social and environmental aspects of the company’s management. The scheme
invests 80-100% in equity and equity-related instruments based on ESG criteria and 0-20% in
other equities and/or debt and money market instruments SBI Magnum Income Fund is the
oldest fund which has been in existence for more than 17 years. This is followed by SBI
Magnum Insta Cash Fund which has been in existence for more than 16 years, SBI Guilt Fund
comesnext which has been in existence for more than 15 yearsSBI Magnum Monthly Income
Plan and SBI MagnumChildern Benefit Plan have been in existence for about 14 years SBI
Regular Savings Fund, SBI Edge Fund, SBIPremier Liquid Fund and SBI Dynamic Bond Fund
havebeen in existence for about 12 years SBI magnum monthlyIncome plan-floret has been in
existence for about 8 years.Out of 10 debt schemes selected for detailed analysis, allfunds are
open-ended schemes. The objective of these schemes is Regular income and liquidity,
capitalappreciation and earn returns. Consequently the portfolio ofall these schemes comprise
investment in debt and moneymarket instrument and Equity.

CURRENT SCENARIO

SBI Magnum Equity ESG Fund launched date January 01, 1991. This fund is managed by Fund
Manager Mr. RuchitMehtaMnaging this fund since May 2018.Current Value of
Standard Investment of Rs 10,000SBI Magnum Equity ESG Fund Direct Growth - Latest NAV

26
₹147.5581, Returns, Performance &SBI invest in SBI Magnum Equity ESG Fund Direct
Growth - Latest NAV ₹147.5581. Track scheme performance, AUM, historical returns, fund
ratings, minimum SIP amount, fund manager etc.

Benefits of investing SBI Magnum Equity ESG Fund.

1.Investment Objective
To provide the investors an opportunity to earn regular income predominantly through
investment in debt and money market instruments and capital appreciation through an actively
managed equity portfolio.
2.Investment Strategy
The proportion of the scheme portfolio invested in each type of security will vary in accordance
with economic conditions, interest rates, liquidity and other relevant considerations, including
the risks associated with each investment. The scheme intends to invest upto 25% of the corpus
in equity and equity related instruments.
3.longterm capital
This scheme seeks to generate long term capital appreciation by investing predominantly in
equity and equity related securities of companies .
4.Investment in debt
This scheme will also invest in debt and money market instruments with an endeavour to
generate income.

27
 Chapter-2

Review of literature.

A Literature review is a body of text that aims to review the critical points of curre-nt
knowledge on a particular topic. Most often associated with science-oriented literature, such
as a thesis, the literature review usually precedes aresearch proposal, methodology and results
section. Its
ultimate goal is tobring the reader up to date with current literature on a topic andforms the basis
for another goal, such as the justification for future research in the area.A good literature review i
s characterized by: a logical flow of ideas; current andrelevant references with consistent, approp
riate referencing style; proper use of terminology;and an unbiased and comprehensive .
Literature review of SBI mutual fund. Literature review on mutual funds. A report on
comparitive analysis of mutual funds with special reference to sbi mutual fund.

2.1 InternationalReviews

Dr. NallaBalaKalyan(Volume3, Issue6)SBI Mutual Fund is a joint venture between the State
Bank of India and Society General Asset Management , one of the world’s leading fund

28
management companies. Mutual funds are one of the best options to invest the hardcore savings
of the investors. SBI Blue Chip Fund is one of the best plans for Investors. It is performing well
but it yields low returns in 2015 and 2016 compared to 2014 due to many external factors and it
is having a moderately low risk. Even though, it is the best scheme suggestible to the investors
who are interesting to invest in Blue Chip companies. Mutual Funds clearly have a significant
role to play in the financial development of a developing economy like India. The resources
mobilized by mutual funds in India have recorded a two-fold increase during the study period.
Sectorwiseanalysis revealed that the share of private sector mutual funds in the resources
mobilized was as high as 82 percent. While the assets under management of public sector mutual
funds had recorded a sharp decrease, that of private sector mutual funds have recorded an
increase. This indicates the dominant role played by the private sector in the Indian mutual fund
industry. The recent trends of consolidation of mutual funds in Indian industry have given a new
boost to the industry in terms of increased market share of mutual funds. A mutual fund is an
investment company or trust that pools the resources from number of investors, who share
common investment goal, and then diversifies its investment into the securities of different
industrial sectors and companies in order to realize potential re turns with reasonable safety. In
the era of globalization, rapid price fluctuations are occurring in financial assets like equity
shares, bonds and also in physical assets like real estate, gold silver etc.

C.Madhavi( Volume 4, Issue 6, June – 2019).the SBI Mutual FundsEquity and Debt schemes
have performed reasonable , by well in spite of reduction in the NAVs, Value addition and
increase in the expense and management ratios of some of the selected schemes SBI
magnum global fund, SBI midcap fund , SBI tax advantage fund ,SBI magnumncome fund
and SBI magnum monthly Income plan Schemes are in the forefront and are giving strong
competition to the similar schemes floated by other mutual funds. SBI infrastructure fund,
SBI magnum children benefit and SBI Insta cash fund Schemes are lagging behind due to
their low NAV ,Value addition and deviation of their portfolios from their offer documents.
The high volatility in the stock market during the period of study also has exerted great
influence on the performance of these selected schemes.

Dr. Rajesh ManikraojiNaik, October 2013.study is an attempt to understand the

“Performance of the Equity Funds with respect to SBI”. Mutual fund Companies must try
not only to concentrate on the High net worth individuals and institutional/non-
institutional investors, but also pitch their products to a range the investors who . The
Companies would have to shape products suitable for the investors and market them
effectively by increasing the awareness of investors. SBI Mutual Funds (Sectoral ) are
performing very Good as compared to other mutual funds.

29
By ET BureauJan 21ET Wealth collaborates with Value Research to analyse top mutual funds.
We examine the key fundamentals of the fund, its portfolio and performance to help you make
an informed investment decision.With a 5-year return of 17.77%, the fund has mirrors the
benchmark index (17.14%) and has outperformed the category average (15.52%)

The Economic times By AvneetKaurJune 10 ,2019 Mutual fund investors continue to pour
money into mutual funds through the SIP route. However, the larger trend in SIP inflows is a
cause for concern for the mutual fund industry. The monthly data clearly shows that SIP inflows
are not growing at the same pace as it used to a few months ago before the IL&FS fiasco hit the
debt mutual fund universe.Mutual funds collected Rs 8,183 crore via systematic investment plan
(SIP) in May, shows data from Amfi. The collection is marginally lower by 0.67 per cent over
April. SIP average inflows have been around Rs 200 crore per month from January to August
2018. However, the average additions per month slowed down to around 63 crore after that. (See
chart below for more details).

2.2 NationalReviews
Dr.Susheel Kumar Mehta (2010)in the article named “SBI vs. UTI – a comparison of
performance of mutual funds schemes” has taken 10 UTI and 10 SBI mutual funds and analyzed
their performance. The study concluded that preference of UTI & SBI mutual funds has been
better in 2007 – 08. When compared to 2006-07 SBI performance was & good in both the years.
No consistency for both the companies’ mutual funds in terms of returns. Consistency is
observed for risk. UTI money market mutual funds dividend & SBI magnum income plus fund-
saving plan growth are found to be least risky among selected schemes of UTI & SBI. UTI were
more defensive than SBI schemes. SBI magnum comma fund – dividend had been the most
aggressive scheme & UTI money market mutual funds daily dividend has been the most
differential scheme. Aggressiveness was the right strategy. SBI’s magnum comma fund dividend
has preference very well during both the years. During 2006-07 all the selected schemes gave
dismal performance which gave same preference. As of market based on risk adjusted measures
of Sharpe, Treynor& Jensen. During 2007-08 only one Of the selected UTI schemes master
value fund growth option preformed better followed by MEF – G. & MBF – G performed better
than market. Whereas SBI – MCF dividend follow by MEF – G & MBF-G – preformed better
than Market. As superior stock selection is concerned none of the portfolio Manager selected
UTI & SBI showed skills during 2006-07. It was only 2007-08 managers of SBI MCF – D-
eructed some superior stock selection skills.

30
Navneet Dubey Moneycontrol News SBI Bluechip Fund scheme was launched on 20th January
2006. The AUM of the scheme as on 31st August 2018 is Rs 20702 crore.The investment
objective of the scheme is to provide investors with opportunities for long-term growth in capital
through an active management of investments in a diversified basket of large cap equity stocks
(as specified by SEBI or AMFI from time to time).

SohiniAndani is the Fund Manager managing the scheme. She also manages SBI Magnum
Midcap Fund and SBI Banking and financial services Fund. She joined SBIFM as Head of
Research in 2007.she has invested most of the funds in financial and banking sector companies,
which gives clarity as to how a company will perform in a given sector in the long term.
However, from last few months right after the demonatisation banking sector witnessed high
volatility in the market. Over the long term perspective, the scheme has given a good dividend to
investors and will deliver a decent return last years, the fund gave 29.7 percent while its
benchmark index S&P BSE 100 has also delivered 8.4 percent returns in last year time period.
The scheme is having a decent exposure in well-established and emerging companies which have
a sizeable market share in their respective sectors.

ShaikMahaboobBasha (Nov. - Dec. 2013), From the study it is know that most of the AMCs
yield high returns but also have high risk. Usually high risk AMCs are not preferred by risk
avoiders. It can be concluded that SBI MAGNUM EQUITY FUND is having good returns, low
risk and having average performance over the period of five years.

Sahadevan S and Thiripalraju M (1997) stated that mutual funds provided an opportunity for
the middle and lower income groups to acquire shares. The savings of household sector
constituted more than 75 percent of the GDS along with a in the preference from physical assets
to financial assets and also identified that savings pattern of households shifted from bank
deposits to shares, debentures and mutual funds.

Zhi Da, Pengjie Gao, and Ravi Jagannathan (2011)in the article

31
“Impatient Trading, Liquidity Provision, and Stock Selection by Mutual Funds” showed that a
mutual fund's stock selection skill can be decomposed into additional components that include
liquidity-absorbing impatient trading and liquidity provision. The study proved that past
performance predicts future performance better among funds trading in stocks affected more by
information events Past winners earn a risk-adjusted after-fee excess return of 35 basis points per
month in the future. Most of that superior performance comes from impatient trading. The paper
also states that impatient trading is more important for growth-oriented funds, and liquidity
provision is more important for younger income funds.

Dr. Yogesh Kumar Mehta (2012): has studied emerging scenario of Mutual Funds in India: An
Analytical Study of Tax Funds. The present study is based on selected equity funds of public
sector and private sector mutual fund. Corporate and Institutions who form only 1.16% of the
total number of investors accounts in the MF’s industry, contribute a sizeable amount of Rs. 2,
87,108.01 crore which is 56.55% of the total net assets in the MF industry. It is also found that
MF’s did not prefer debt segment.

Prof. V. Vanaja and Dr. R. Karrupasamy (2013) have done a study on the performance of
select Private Sector Balanced Category Mutual Fund Schemes in India. This study of
performance evaluation would help the investors to choose the best schemes available and will
also help the AUM’s in better portfolio construction and can rectify the problems of
underperforming schemes. The objective of the study is to evaluate the performance of select the
Private Sector balanced schemes on the basis of returns and comparison with their bench marks
and also to appraise the performance of different category of funds using risk adjusted measures
as suggested by Sharpe, Treynor and Jenson.

Dr. K. Veeraiah and Dr. A. Kishore Kumar (2014) conducted a research on Comparative
Performance Analysis of Select Indian Mutual Funds Schemes. This study analyzes the
performance of Indian owned mutual funds and compares their performance. The performance of
these funds was analyzed using a five year NAVs and portfolio allocation. Findings of the study
reveals that, mutual funds out perform naive investment. Mutual Funds as a medium to long term
investment option are preferred as a suitable investment option by investors.

Sowmiya . G (2014) has studied performance Evaluation of Mutual Funds in India. The
objective of this is to know the basic concept and terminologies of the mutual funds in public
limited companies and private limited companies. To analyze performance and growth of

32
selected Mutual Funds Schemes with their NAV and their returns. To identify the returns
variance and to provide suggestions based on the analysis.

Dr. K. Veeraiah and Dr. A. Kishore Kumar (Jan 2014), conducted a researchon Comparative
Performance Analysis of Select Indian Mutual Fund Schemes.This study analyzes the
performance of Indian owned mutual funds andcompares their performance. The performance of
these funds was analyzedusing a five year NAVs and portfolio allocation. Findings of the study
revealsthat, mutual funds out perform naïve investment. Mutual funds as amedium-to-long term
investment option are preferred as a suitable investmentoption by investors.

Rahul Singal, Anuradha Garg and Dr Sanjay Singla (May 2013), have donePerformance
Appraisal of Growth Mutual Fund. The paper examines theperformance of 25 Growth Mutual
Fund Schemes. Over the time period Jan2004 to Dec 2008. For this purpose three techniques are
used (I) Beta (II)Sharpe Ratio (III) Treynor Ratio. Rank is given according to result drawn
fromthis scheme and comparison is also made between results drawn from differentschemes and
normally the different are insignificant.

Dr. Ashok Khurana and KavitaPanjwani (Nov, 2010), have analysedHybridMutual Funds.
Mutual fund returns can be compared using Arithmetic mean &Compounded Annual Growth
Rate. Risk can be analyzed by finding outStandard Deviation, Beta while performance analysis is
based on Risk-Returnadjustment. Key ratios like Sharpe ratio and Treynor ratio are used forRisk-
Return analysis. Funds are compared with a benchmark, industryaverage, and analysis of
volatility and return per unit to find out how well theyare performing with respect to the market
Value at Risk analysis can be doneto find out the maximum possible losses in a month given the
investor hadmade an investment in that month. Based on the quantitative study
conductedcompany a fund is chosen as the best fund in the Balance fund growthschemes.

Mrs.V. Sasikalaand Dr. A. Lakshmi (Jan 2014) have studied The MutualFund Performance
Between 2008 And 2010: Comparative Analysis. The paperentitled “comparative analysis of
mutual fund performance between 2008 &2010. The paper was undertaken to know the after
meltdown period risks andreturns of 2008 top hundred mutual funds and compare with 2010 top
hundredmutual funds published in Business today. The analysis of alpha, beta,standard
deviation, Sharpe ratio and R-squared are declare high, low, average,above average and below
average of risks and return of funds.

33
 Chapter-3

Research Methodolog.

3.1 Objective of the study

34
 The purpose of preparing research project is to get the knowledge about the SBI
blue chip fund and Magnum equity fund .

 To provide customized investment solution to client as per their needs and

requirement.

 To know the 5 years performance of SBI blue chip fund and Magnum equity fund .

 To know how to invest in blue chip and magnum equity fund .

 This study will help to know the perception and thinking of the investors regarding
the SBI mutual funds.

 To know how the investment made in different fund minimizes the risk and
maximizes the return.

35
 3.2Research Hypothesis

 There is a significant difference between the performance of SBI Blue chip fund and SBI
Magnum equity fund.

 There is no knowledge of investors regarding SBI mutual funds oriented.

 Consider the evaluation of performance of blue chip fund and Magnum equity fund for
5 years .

 Tools to measure the performance are Mean ,standard deviation and Beta.

3.3 Scope of the study

In this era of cut throat competition, where many new players has been entering day after day to
increase their market share, how a company works to retain and gain more and more investors
towards it.

My research analyzethe 5 years performance and returns of funds and how the fund is beneficial
for investors to invest and the investors are able to find the good returns according to the study of
past 5 years performance.Where I surveyed how an Asset Management Company works and,
interest and perception of the investors towards it.

The study will help to know the perception and thinking of the investors regarding portfolio,
mode of investment and returns. This study will also be helpful to predict the performance of the
Blue-chip and Magnum equity fund in future.

36
 1.4 Limitations of the study

 Investors have no knowledge of investing in SBI mutual funds.

Mutual Fund Units involve investment risks including the possible loss of principal.
 Time is very limited for the study.
Resources are limited.
 Possibility of error in data collection .
 Investors have to bear market risk, interest rate risk, liquidity risk, default risk,
reinvestment risk etc.

Chapter-4

4.1 Data representation and Analysis.

37
Project Research Methodology
A market Research was performed to find out the actuality of the investors about what their
perception about Mutual Funds and other investment options. It was done to find out investment
pattern and behavior of the investors i.e. how much they can invest, how much risk can they
wear, for how much time they can invest and in which investment option they invested. By
analyzing the 5 years financial performance of funds the will get to know which fund is
beneficial to invest.

The present study based on secondary data. The secondary data collected from the records of
SBI bank of India fund management private limited, internet ,books ,magazine, journals,
publications of various research agencies like SEBI handbook, annual reports.

In this tableCalculating Risk and Return of SBI blue- chip Fund for 5 years by using Mean
and standard deviation.

Table- 1

38
 Years Returns% (X-͞X) ( X-X)²

2016-17 -6.96
4.8 48.44
2017-18 30.2 18.44 340.03
2018- 19 -4.1 -15.86 251.53

2019-20 11.6 -0.16 0.0256

2020-21 16.3 4.54 20.6116

TOTAL 58.8 660.63

∑𝑋 58.8
Mean(͞X)= 𝑁 = =11.76
5

√∑(𝑥 − 𝑥͞)2
𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐃𝐞𝐯𝐢𝐚𝐭𝐢𝐨𝐧 =
𝑁−1
√660.63 √660.63
= = 4
5−1

= √165.15 = 12.85

It is important to find Mean to measure the score from every subject in the research. The steps
which is required for its calculation are : count the total no. of cases as (N) add uip all the
scores and divided by the total no. of cases

Standard Deviation is used to measure deviation from the mean for a group are spread out from
the average. A low Standard deviation means that most of the no. are close to the AV. While
a high Standard deviation means that most of the no. are more spread out.

Graphical Representation of Returns

39
 35

30

25

20

15
RETURNS
10

0
2016-17 2017-18 2018-19 2019-20 2020-21
-5

-10

Returns for The 5 years(R)

Fig-1

INTERPRETATION -This graph represent that the highest return is in the year 2017-18 and
more negative returns in 2018-19.volatility is 12.85 from the expected normal returns. x axis
shows the number of years and Y axis represent number of returns .

Table- 2

In this table Comparing SBI Blue-chip fund with Bench mark (market returns)

Years Market Blue chip Deviation of Deviation of DM*DF (Deviation

returns fund market blue chip of SBI blue
(%) returns(%) returns fund chip fund
returns)²
2016-17 -11.96 4.8 -21.53 -6.96 149.8 48.44

2017-18 21.83 30.2 12.25 18.44 225.24 340.03

2018- 19 -4.38 -4.1 -13.95 -15.86 221.24 251.53

2019-20 31.49 11.6 21.91 -0.16 -3.505 0.0256

40
2020-21 10.9 16.3 1.32 4.54 5.99 20.611

TOTAL 9.576 11.76 599.42 660.63

(Avg)

𝐒𝐮𝐦𝐦𝐚𝐭𝐢𝐨𝐧𝐨𝐟𝐃𝐞𝐯.𝐨𝐟𝐦𝐚𝐫𝐤𝐞𝐭∗𝐃𝐞𝐯.𝐎𝐟𝐛𝐥𝐮𝐞−𝐜𝐡𝐢𝐩𝐟𝐮𝐧𝐝
Covariance = 𝑵−𝟏

𝟓𝟗𝟗.𝟒𝟐𝟐 𝟓𝟗𝟗.𝟒𝟐𝟐
= =149.85
𝟓−𝟏 𝟒

Variance of Blue-chip fund= Summation of (Deviation of SBI blue-chip).

=660.63
𝐂𝐨𝐯𝐚𝐫𝐢𝐚𝐧𝐜𝐞
BETA = 𝐯𝐚𝐫𝐢𝐚𝐧𝐜𝐞𝐨𝐟𝐒𝐁𝐈𝐛𝐥𝐮𝐞−𝐜𝐡𝐢𝐩

𝟏𝟒𝟗.𝟖𝟓
=𝟔𝟔𝟎.𝟔𝟑 = 0.22682

BETA –

 BETA is a measure used to determine the volatility of an portfolio in relation to the

overall market.
 To calculate the beta of a portfolio ,regress the rate of return of the portfolio on the rate of
return of market index.
 BETA is used also to compare a stock market risk to that of other stocks.
 In our study we compare the risk returns of SBI Blue-chip and SBI Magnum equity ESG
fund with market returns for last 5 years.(benchmark).

41
 Graphical representation of Market returns and SBI blue chip fund in past 5 years
(comparison)
35

30

25

20
Market return
15 Blue chip return

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Fig-2

INTERPRETATION -In this graph compare the returns of Market (benchmark) with SBI blue-
chip fund to know the performance of SBI blue chip in past 5 years in comparison to market.
Whereas X axis shows the number of years and Y axis shows the number of returns. Volatility is
12.85 from the expected normal returns .BETA is < 1 i.e; 0.22682 so risk level is under control .

SBI blue-chip fund this product is suitable for investors who are seeking-

 Long term capital appreciation.

 Investment in equity and equity- related instruments of large cap companies.
 Investors should consult their financial advisers if in doubt whether he product is
suitable for them.

42
 In this table Calculating Risk and Return of SBI Magnum equity ESG fund for 5 years
by using Mean and standard deviation.

Table- 3

Years NAV(%) (X-͞X) ( X-X)²

2016-17 12.54 -9.382 88.02

2017-18 10.22 -11.702 136.9

2018- 19 15.87 -6.052 36.62

2019-20 58.32 36.4 1324.96

2020-21 12.66 -9.26 85.74

TOTAL 109.61 1672.24

∑𝑋 109.61
Mean (͞X) = = = 21.922
𝑁 5

√∑(𝑥 − 𝑥͞)2
𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝𝐃𝐞𝐯𝐢𝐚𝐭𝐢𝐨𝐧 =
𝑁−1
√1672.24 √1672.24
= = 4
5−1

= √418.06 = 20.4465

43
 Graphical Representation of Returns (NAV)
70

60

50

40

NAV
30

20

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Fig-3

INTERPRETATION -This graph represent that the highest return is in the year 2019-20 and
more negative returns in 2017-18.volatility is 20.4465 from the expected normal returns. x axis
shows the number of years and Y axis represent number of returns .

Table- 4

In this table Comparing SBI Magnum equity fund with Bench mark (market returns)

Years Market Magnum Deviation of Deviation of DM*DF (Deviation

returns equity market Magnum of Magnum
(%) returns(%) returns equity fund equity fund
returns)²
2016-17 -11.96 12.54 -21.53 -9.38 201.95 40783.8

2017-18 21.83 10.22 12.25 -11.7 143.3 20534.8

44
2018- 19 -4.38 15.87 -13.95 -6.05 84.39 7121.6

2019-20 31.49 58.32 21.91 36.4 797.5 636006.2

2020-21 10.9 12.66 1.32 -9.26 12.22 149.32

TOTAL 9.576 21.92 1239.36 704595.72

(Avg)

𝐒𝐮𝐦𝐦𝐚𝐭𝐢𝐨𝐧𝐨𝐟𝐃𝐞𝐯.𝐨𝐟𝐦𝐚𝐫𝐤𝐞𝐭∗𝐃𝐞𝐯.𝐎𝐟𝐛𝐥𝐮𝐞−𝐜𝐡𝐢𝐩𝐟𝐮𝐧𝐝
Covariance = 𝑵−𝟏

𝟏𝟐𝟑𝟗.𝟑𝟔 𝟏𝟐𝟑𝟗.𝟑𝟔
= =309.84
𝟓−𝟏 𝟒

Variance of Blue-chip fund= Summation of (Deviation of SBI blue-chip).

=704595.72
𝐂𝐨𝐯𝐚𝐫𝐢𝐚𝐧𝐜𝐞
BETA = 𝐯𝐚𝐫𝐢𝐚𝐧𝐜𝐞𝐨𝐟𝐒𝐁𝐈𝐛𝐥𝐮𝐞−𝐜𝐡𝐢𝐩

𝟑𝟎𝟗.𝟖𝟒
=𝟕𝟎𝟒𝟓𝟗𝟓.𝟕𝟐 = 0.0004385

Graphical representation of Market returns and SBI Magnum equity fund in past 5 years
(comparison).

45
 70

60

50

40 Market return

30 Magnum equity fundreturn

(NAV)
20

10

0
2016-17 2017-18 2018-19 2019-20 2020-21

Fig-4

INTERPRETATION -In this graph compare the returns of Market (benchmark) with SBI
Magnum equity fund to know the performance of SBI Magnum equity fund in past 5 years in
comparison to market. Whereas X axis shows the number of years and Y axis shows the number
of returns. Volatility is 20.4465 from the expected normal returns .BETA is < 1 i.e; 0.0004385
so risk level is under control.

SBI magnum equity ESG fund this product is suitable for investors who are seeking-

 Long term capital appreciation.

 Investments in companies following the ESG theme.
 Investors should consult their financial advisers if in doubt whether he product is
suitable for them.

46
 4.2 Hypothesis Testing

This table showing the 5 years risk and returns of SBI Blue-chip fund and SBI
Magnum equity fund.

RETURNS OF RETURNS OF SBI D D²

SBI BLUE- MAGNUM
CHIP FUND. EQUITY FUND.

4.8 12.54 -7.79 59.90

30.2 10.22 19.98 399.2

-4.1 15.87 -19.97 398.8

11.6 38.32 -46.72 2182.7

16.3 12.66 3.64 13.2

58.8 109.61 -50.81 3053.8

H° = µ Blue-chip =µ Magnum equity

H¹ = µ Blue-chip ≠ µ Magnum equity

47
< = 0.05 Degree of freedom= n-1 =5-1=4

∑𝐃
t= √𝒙 ∑ 𝐃²−(∑ 𝐃)²
𝒏−𝟏

−𝟓𝟎.𝟖𝟏
t= √(𝟓∗𝟑𝟎𝟓𝟑.𝟖)−(−𝟓𝟎.𝟖𝟏)²
𝟓−𝟏

−𝟓𝟎.𝟖𝟏 −𝟓𝟎.𝟖𝟏
t= √(𝟏𝟓𝟐𝟔𝟗)−(𝟐𝟓𝟖𝟏.𝟔)
= √𝟏𝟐𝟔𝟖𝟕.𝟒
𝟒 𝟒

−𝟓𝟎.𝟖𝟏
t= = - 0.9024
√𝟑𝟏𝟕𝟏.𝟖

t stats = -0.9024
Degree of freedom = 0.05

t case = 3.747 ( table value)

t case > t stats therefore the hypothesis is REJECT

there is a significant difference between the performance of SBI blue-chip Fund and
magnum equity fund of 5 years returns .

48
 Chapter-5

RESULT AND DISCUSSION

5.1 Major Findings

 Mean of SBI blue chip fund is yielding high returns in the year( 2017-18) 30.2 NAV and
low returns in the year (2018-19) -4.1NAV .

 Mean of SBI Magnum equity ESG is yielding high returns in the year (2019-20)58.32
and low returns in the year( 2017-18)10.22.

 Standard deviation- SBI Blue-chip fund is having high risk i.e, 0.22682 in comparison to
SBI Magnum equity 0.0004385 in last 5 years.

 BETA - SBI Blue-chip fund is having high risk compare to market returns in the year
2017-18 and lower risk in the year 2016-17.

 BETA- SBI Magnum fund is having high risk compare to market returns in the year
2019-20 and lower risk in the year 2017-18.

5.2 SUGGESTIONS

 SBI Magnum having low risk and there are more chances to get high returns.
 It should take more efforts on spreading awareness about SBI Mutual fund among people
(SBI Blue chip fund and SBI Magnum equity fund).
 In this study we are sure these investment instruments provides a high returns compared
to other schemes.
 The investors have more secure investment option to invest in SBI mutual funds.
 A mutual fund is one of the way to get the investment just double In a very short period
of time.

49
  When comparing both the funds with market returns (Bench mark) the SBI magnum
equity fund show the great performance in last 5 years of returns.
 As the performance of SBI magnum is beneficial it is suggest to investors to invest in SBI
magnum in comparison to SBI blue-chip fund.
 Risk average can go for SBI magnum contra fund because its performance is high and
average return also moderate in comparison to SBI Blue-chip fund.

5.3 CONCLUSION

Mutual funds clearly have significant role to play in the financial development of a country.SBI
mutual funds is now a days is one of the most favored investment option. It plays a important
role in the economic expansion in our country.SBI Mutual fund mainly depends the performance
of returns .SBI Blue-chip funds and SBI magnum is one of the best plan for investors to invest
and the study concludes that in comparing SBI Blue-chip with SBI magnum equity fund for last
5 years returns performance SBI magnum come with high rate of return than SBI blue-chip fund
. In SBI blue-chip fund investors understand that their principal will be at moderate high risk and
In SBI magnum investors understand that principal will be at high risk.

When comparing both the funds with the market returns(bench mark) magnum shows the high
rate of return than SBI blue-chip. So, in this study it is clear that the performance of SBI
magnum is good than SBI blue-chip so that investors have a more returns in SBI magnum.
investors can easily invest in SBI magnum on he basis of fund performance in last 5 years.

REFERENCES –

Bandgar P.K.(Dr)(2007).Security analysis and portfolio management.

Chandra Prasanna (2003).Investing analysis and portfolio management.

SBI MUTUAK FUNDS (investment update) January 2019.

Vince Ralph (1990) Portfolio Management formula’s.

E Fischer Donald (1975) Security Analysis and portfolio management.

50
Ronald J Jordan (2018) Seventh Edition .

Investment analysis and portfolio management economics times.

Magazine’s – Forbes India magazine, DARE magazines, Money control.com.

SOURCES:
www.google.com
www.mutualfundsindia.com
www.zeebiz.com
www.researchgate.net
www.zeepedia.com
www.investopedia.com
www.researchgate.net
www.valueresearchonline .com

51