2. Where To Invest??
ï We always think, where should we
invest our money in financial
marketâŠ.
3. Concept of Mutual Funds
ï A mutual fund is a professional-
managed firm of collective
investments that pools money from
many investors and invest it in stocks,
bonds etc.
ï Mutual Funds have a fund manager
who invests the money on behalf of
the investors by buying/selling stocks,
bonds etc.
4. Why Investor prefer Mutual
Funds?
ï They can buy their shares directly from
market
ï But this require spending time to find out the
performance of the company whose share is
being purchased, understanding the future
business prospects of the company, finding
out the track record of the promoters and the
dividend, bonus issue, history of the
company. Itâs here to do research before
investing.
ï However investors prefer the mutual fund
route. Besides this, in this LOW RISK &
HIGH RETURN.
9. Company Profile
ï An act was passed in Parliament in May 1955 and the
State Bank of India was constituted on 1 July 1955.
ï State Bank of India is a multinational banking and
financial services company based in India.
ï It is a government-owned corporation with its
headquarters in Mumbai.
ï As of December 2012, it had assets of US$501 billion
and 15,003 branches, including 157 foreign offices,
making it the largest banking and financial services
company in India by assets
ï State Bank of India is the largest state-owned banking
and financial services company in India, by almost
every parameter - revenues, profits, assets, market
capitalization, etc.
10. SBI Mutual Funds
ï SBI mutual fund was setup on June 29th,
1987 and incorporated on Feb 7th, 1992.
ï SBI Funds Management Pvt. Ltd. is a joint
venture between State bank of India and
Societe Generale Asset Management of
France.
ï They offer Mutual Fund products in Equity
Funds, Index Funds, Balanced Funds, Debt
Funds, etc.
ï The assets under management are Rs.
5490544.40 crores as of 31 March 2013.
ï Today the fund house manages over Rs
28500 crores of assets and has a diverse
profile of investors actively parking their
investments across 36 active schemes.
11. ï SBI Mutual Fund presents a wide
range of schemes that provide strong
fundamentals for the investments.
These schemes have helped create
wealth for lakhs of investors.
ï SBI Mutual Fund is one of the
countryâs premier fund houses with
over 24 years of rich experience in
fund management.
12. ï In 24 years of operation, the fund has
launched 38 schemes and successfully
redeemed 15 of them and in the process, has
rewarded the investors with consistent
returns.
ï SBI Mutual is the first bank sponsored fund to
launch an offshore fund- Resurgent India
opportunities fund.
ï SBI Funds Management Pvt. Ltd. Serves its
vast family of investors through a network of
over 130 points of acceptance, 28 Investor
Services Centers, 46 Investor Service Desks
and 56 District Organizers.
13. Competitors of SBI Mutual Funds
ï UTI Mutual Fund
ï ICICI Mutual Fund
ï Reliance Mutual Fund
ï HDFC Mutual Fund
ï Birla Sun Life Mutual Fund
ï Kotak Mutual Fund
ï LIC Mutual Fund
ï Sundaram Mutual Fund
14. Role and Duties
ï My Role in SBI Bank is to convince the
people to invest in Mutual Fund
Schemes of SBI.
ï By telling them the advantages of
investing in mutual funds.
ï Public Dealing.
ï We also conduct seminars in number of
places like civil Hospital, Govt Girls
School, Lala Lajpat Rai Engineering
College Moga to spread the awearness
about the mutual funds among the
investors.
ï I have done 300 SIPs during my
internship.
15. Market Capitalization
ï Market Cap is a way to use the stock
price to determine the value of the
company, and how likely it is to grow.
ï Market Cap is calculated by
multiplying the stock price by the
number of shares of stock the
company has issued.
ï Investors use market cap to divide the
stock market into atleast three
categories
ïSmall Cap
ïMid Cap
16. Objective of the Study
ï To find out the best mid cap and small cap funds in India on
the basis of various risk adjusted measures and returns so
that each and every aspect is studied about the mid and
small cap funds in India so that the investor should invest in
the best one.
ï Evaluating the mid and small cap funds of top 12 companies
on the basis of a number of parameters.
ï Only those companies are taken for evaluation that have
higher Assets Under Management out of the list of 45
companies.
ï The top 12 funds are evaluated on the basis of 1 year, 3 year,
5 year, 7 year and the return since inception.
ï Funds are compared on basis of beta (systematic risk),
standard deviation, Alpha, sharpe ratio and R squared are
compared taking different funds.
ï Lastly the fund with highest ranking in different parameters is
chosen out to be the best fund.
17. Need of the Study
ï The need of present study of mutual funds cater to
reduce the past research gap and also to update the
performance of mutual funds in the current scenario. In
this study, an attempt has been made to evaluate the
performance of open-ended equity schemes of public
sector, private sector, banks and other financial
institutions.
ï There are 40 to 50 mid and small cap funds in
India. This study helps the investors to identify the
best mid and small cap funds in India out of these
existing funds.
18. Research Methodology
DATA COLLECTION
ï As because of the lack of time, only secondary
data is taken for this study and on the basis of this
data all evaluation work has been done.
TOOLS FOR EVALUATING PERFORMANCE
ï The tools which are taken for evaluating the
performance are risk adjusted measures and
returns of the mid and small cap funds.
ïBeta
ïStandard Deviation
20. Schemes
The Mutual Fund schemes that I have taken to find out the best mid
and small cap fund in India are-
ï¶ SBI Magnum Global
ï¶ Sahara Wealth Plus Fixed Pricing
ï¶ Birla Sun Life Dividend Yield Plus
ï¶ Religare Mid N Small Cap
ï¶ ICICI Prudential Discovery Reg
ï¶ L&T Mid cap
ï¶ HDFC Mid cap Opportunities
ï¶ UTI Mid cap
ï¶ Relaince Equity Opportunities
ï¶ SBI Magnum Midcap
ï¶ SBI Emerging Business
ï¶ Kotak Emerging Equity
21. Findings of the Study
ï On the basis of Beta the best Mid n Small Cap fund is:-
SBI MAGNUM GLOBAL FUND
ï On the basis of Standard Deviation the best Mid n Small Cap fund
is:-
SBI MAGNUM GLOBAL
ï On the basis of Sharpe Ratio the best Mid n Small Cap fund is:-
SBI EMERGING BUSINESS FUND
ï On the basis of R-Squared the best Mid n Small Cap fund is:-
RELIANCE EQUITY OPPORTUNITIES FUND
ï On the basis of Expense Ratio the best Mid n Small Cap fund is:-
SBI EMERGING BUSINESS FUND
ï On the basis of Alpha the best Mid n Small Cap fund is:-
SBI EMERGING BUSINESS FUND
22. ï On the basis of 1 Year Return the best Mid n Small Cap fund is:-
SBI EMERGING BUSINESS FUND
ï On the basis of 3 Year Return the best Mid n Small Cap fund is:-
SBI EMERGING BUSINESS FUND
ï On the basis of 5 Year Return the best Mid n Small Cap fund is:-
ICICI PRUDENTIAL DISCOVERY REG
ï On the basis of 7 Year Return the best Mid n Small Cap fund is:-
RELIANCE EQUITY OPPORTUNITIES
ï On the basis of Return Since Inception the best Mid n Small Cap
fund is:-
BIRLA SUN LIFE DIVIDEND YIELD PLUS
ï On the basis of AUM the best Mid n Small Cap fund is:-
HDFC MUTUAL FUND
23. Limitations of the study
ï Time Constrait: Due to shortage or less
availability of time I have not calculated
the various risk adjusted measures and
returns of the various Mid and Small cap
funds in India. Rather I have taken the
secondary data so this study relies on
the accuracy of data.
ï Secondly only those schemes of various
AMCâs are taken which are among top
12 in the AUM as on 31 March 2013
because of it, many other mid and small
cap funds are not evaluated.
24. Conclusion
ï SBI Emerging Business fund is the
best mid and small cap fund in India
as it has topped in the 5 parameters
which are chosen for the purpose of
evaluation.
ï SBI Magnum Global Fund and
Reliance Equity Opportunities fund
both are at second place.
25. Recommendations
ï SBI Emerging Business Fund is the best fund
to invest as it is ranked 1 in Small and Mid
Cap category by CRISIL. If you are already
invested in this scheme, you may continue to
stay invested. This fund shows very fruitful
results from the past years.
ï As far as risk measures are concerned, the
scheme has done very well in terms of
Sharpe and Alpha. It registered Sharpe as
0.07% (1/39) and Alpha as 0.05% (3/39). It
seems to be less risky while compared to
peers as it generated 0.75% of Standard
Deviation for last one-year period.
