SlideShare ist ein Scribd-Unternehmen logo
1 von 60
Downloaden Sie, um offline zu lesen
A
                            Project Study Report
                                     On

                   “Systematic Investment Plan

                 (The Better Way to Invest In Mutual Funds)”

                                     AT
                           SBI MUTUAL FUND


                   Submitted in Partial Fulfillment for The
                             Award of Degree of
                     Master of Business Administration




                                2011-2013


Submitted by:                                             Submitted to:
Chanchal Salvi                                            Dr.Sunita Agarwal
MBA Semester III                                              Professor


                Advent Institute of Management Studies
                                  Udaipur
PREFACE



There are four steps to Accomplishment & Success – Plan, Purposefully, Prepare
thoroughly, Proceed Positively & Pursue Persistently.

In this development and changing world, I feel proud for being a student of M.B.A
programmed at Advent Institute of Management Studies UDAIPUR. The summer
training in the MBA course is the major event that gives you an insight into the
expectations that a company has from the MBAs. It provides a „pre working‟
experience for a student and gives enough exposure so that one can give his/her best
in the organization which he/she joins in the future. Due to ever increasing
competitiveness in the market today the specific skills of management are always
called for.

For this project my training place was State Bank of India. Udaipur. During my study I
got enough information. This report is purely based on what I worked and analyzed
during my training.

In preparing this report I have drawn a vast amount of literature Naturally, I owe an
intellectual debt to numerous lectures that enrich the stream of my study.

This project is a summary of the information gathered during the study. I Confident that
my sincere effort and special attention will justify the subjects in the report.
ACKNOWLEDGEMENT



I express my sincere thanks to Dr. R.K. Balyan, Director, Advent Institute of
Management Studies and my project guide Dr. Sunita Agrawal, Professor, Deptt
AIMS, for guiding me right from the inception till the successful completion of the
project. I sincerely acknowledge her for extending their valuable guidance, support for
literature, critical reviews of project and the report and above all the moral support she
had provided to me with all stages of this project.

I would also like to thank the supporting staff of Advent Institute of Management
Studies for their help and cooperation throughout our project.




Chanchal salvi
Executive Summary


Mutual funds have emerged as a strong financial intermediary and are the fastest
growing segment of the financial services sector in India. Mutual funds play a very
significant role in channelizing the savings of millions of individuals. A mutual fund is
the most suitable investment for the common person as it offers an opportunity to
invest in a diversified, professionally managed portfolio at a relatively low cost. There
are wide varieties of mutual fund schemes that cater to investor needs. Whether as the
foundation of one‟s investment programme or as a supplement, mutual fund schemes
can help the investors to meet their financial goals.
A host of factors has contributed to this explosive growth of the industry. The industry
has made significant strides in terms of its variety, sophistication and regulation. Due
to the economic boom, entry of foreign asset management companies, favorable stock
markets and aggressive marketing by mutual funds, the asset management industry in
India is witnessing dramatic growth in terms of new fund openings, the number of
mutual fund families, and in the total assets under management in recent years.
Despite various attractions offered, the total net assets of mutual funds are very less
as compared to other developed countries. In the product offering too, the Indian fund
industry is not close to the developed countries. India‟s 32 member fund industry has
to scale new heights to narrow the gap with the other developed countries.
To achieve this, the Indian mutual fund industry needs to widen its range of products
with affordable and competitive schemes that combine various elements of liquidity,
return and security in making mutual fund products the best possible alternative for the
small investors in the Indian market. Besides, mutual funds can survive only if they
perform well and satisfy the expectations of the investors.
In this context a sincere attempt has been made by the researcher to examine the
steady growth of the industry, the innovations and the development that has taken
place in India. This research on Mutual Fund industry will specifically focus on the SBI
Mutual Funds.
Table of Contents


Sr.    Chapter                Name of content               Page
No:-                                                        no
1.     Introduction           1.1 An overview               1-15

2.     Profile of company                                   16-

3.     Research               2.1 Title of the study        30
       methodology
                              2.2 Duration of the project   32

                              2.3 Objective of the study    34


                              2.4 Simple size &method       36

                              2.5 Scope of the study        37

                              2.6 Limitation of the study   41

4.     Findings & Facts       3.1 Findings                  45

5.     Data Analysis                                        60

6.     SWOT analysis of the                                 62
       company
7.     Conclusion                                           63

8.     Suggestions                                          64
       Recommendations
9.     Appendix                                             65

10.    Bibliography                                         67
Chapter 1
Introduction to the
   Industry
Introduction


The financial system is a set of institutional arrangements through which financial
surpluses available in the economy are mobilized. A financial system, which is
inherently strong, functionally diverse and displays efficiency and flexibility, is critical in
creating a market-driven, productive and competitive economy. A mature financial
system has to gear up and undergo varied and comprehensive changes in order to
achieve rapid economic development.
The financial sector reforms in India in the early nineties has resulted in explosive
growth of the economy, opening up of the Indian financial market to foreign and private
Indian players, large inflow of Foreign Ninth AIMS International Conference on
Management        Institutional Investors, increased competition and better product
offerings to consumers. One of the major developments of this decade has been the
take-off of mutual funds. Mutual funds have emerged as a strong financial intermediary
and are the fastest growing segment of the financial services sector in India. It aims at
promoting a diversified, efficient and competitive financial sector increasing the return
on investment and promoting and accelerating the growth of the economy. It is a
medium of investment suitable to the small investors, who are not able to invest in
stock market directly.
Mutual funds now play a very significant role in channelizing the savings of millions of
individuals. The mutual fund industry in India over the years has seen dramatic
improvements in terms of quantity as well as quality of product and service offerings in
recent years. The tremendous growth of Indian Mutual Funds industry is an indicator of
India‟s efficient financial market and the trust which investors have on the regulatory
Environment. Millions of investors rely on mutual funds as their primary investments
because they offer a convenient, cost-effective and easy way to invest in the financial
markets. The Securities Exchange Board of India (SEBI) regulates this fast growing
industry and it is the representative body of all mutual funds in the
country. Every mutual fund has a goal - either growing its assets (capital gains) and/or
generating income (dividends) for its investors. Distribution in the form of capital gains
(short-term and long-term) and dividends may be passed on (paid) to the shareholders
as income or reinvested to purchase more shares. A mutual fund is valued daily and
reports a price known as a Net Asset Value (NAV) per share. In its simplest
Form, a NAV is the total value of all the securities held in a fund divided by the total
number of shares owned by its shareholders. As the price of the NAV increases or
decreases, the shareholder's value will increase or decrease.


Current Scenario of Mutual Funds


The global economic environment was conducive and this led to the explosive growth
of mutual funds in most countries particularly since 1980‟s. This growth can be
attributed to the strong emergence of the market economy which depends more on the
growth led by the stock market. Mutual funds found increasing acceptance in the
developed countries when compared to the developing countries in the early and mid
90‟s but gradually it found its place even in the developing countries because of its
advantages. Gradually the number of mutual funds increased significantly worldwide
and many developed countries started designing country specific funds to match the
trend prevailing in other developed countries.


 Evolution of Mutual Fund Industry in India


The mutual fund revolution that was sweeping the other countries bypassed India also.
The formation of Unit Trust of India marked the evolution of the Indian mutual fund
industry in the year 1963. The primary objective at that time was to attract the small
investors and it was made possible through the collective efforts of the Government of
India and the Reserve Bank of India.
UTI commenced its operations from July 1964 and different provisions of the UTI Act
laid down the structure of management, scope of business, powers and functions of
the trust as well as accounting, disclosures and regulatory requirements for the trust.
Even though the growth of the mutual fund industry was very slow in the beginning, it
accelerated when the public sector and private sector mutual funds entered the market
after the year 1987. The mobilization of funds and the number of players operating in
the industry reached new heights as investors started showing more interest in mutual
funds. Investors' interests were safeguarded by SEBI and the Government offers tax
benefits to the investors in order to encourage them. SEBI also introduced SEBI
(Mutual Funds) Regulations, 1996 and set uniform standards for all mutual funds in
India.

History of the Indian Mutual Fund Industry

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. Though the
Growth was slow, but it accelerated from the year 1987 when non-UTI players entered
the Industry.
In the past decade, Indian mutual fund industry had seen a dramatic improvement,
both qualities wise as well as quantity wise. Before, the monopoly of the market had
seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The
private sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993
and till April 2004; it reached the height if Rs. 1540 billion.
The Mutual Fund Industry is obviously growing at a tremendous space with the mutual
fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the
Reserve Bank of India and functioned under the Regulatory and administrative control
of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and administrative
control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At
the end of 1988 UTI had Rs.6,700 crores of assets under management.


Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by can bank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun
90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June
1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the
mutual fund industry had assets under management of Rs.47,004 crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The erstwhile
Kothari Pioneer (now merged with Franklin Templeton) was the first private sector
Mutual fund registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
And revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33
Mutual funds with total assets of Rs. 1,21,805 crores.


Fourth Phase – since February 2003: In February 2003, following the repeal
of the Unit Trust of India Act 1963 UTI was
Bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
Of India with assets under management of Rs.29,835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain
Other schemes.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
Registered with SEBI and functions under the Mutual Fund Regulations. Consolidation
And growth. As at the end of September, 2004, there were 29 funds, which manage
Assets of Rs.153108 crores under 421 schemes.
Mutual Fund


A mutual fund is a company that brings together money from many people and invests
it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other
assets the fund owns are known as its portfolio. Each investor in the fund owns shares,
which represent a part of these holdings A mutual fund is a professionally managed
investment product that sells shares to investors and pools the capital it raises to
purchase investments A fund typically buys a diversified portfolio of stock, bonds, and
money market securities, or a combination of stock and bonds, depending on the
investment objectives of the fund. Mutual funds may also hold other investments, such
as derivatives. A fund that makes a continuous offering of its shares to the public and
will buy any shares an investor wishes to redeem, or sell back, is known as an open-
end fund. An open-end fund trades at net asset value (NAV).
An investment vehicle that is made up of a pool of funds collected from many investors
for the purpose of investing in securities such as stocks, bonds, money
market instruments and similar assets. Mutual funds are operated by money
managers, who invest the fund's capital and attempt to produce capital gains and
income for the fund's investors. A mutual fund's portfolio is structured and maintained
to match the investment objectives stated in its prospectus.
Advantages of Mutual Funds

   -   Diversification

   -   Professional Management

   -   Regulatory oversight

   -   Liquidity

   -   Convenience

   -   Low cost

   -   Transparency

   -   Flexibility

   -   Choice of schemes

   -   Tax benefits

   -   Well regulated



Working of Mutual Funds:

The following figure explains the working of Mutual funds
The important terms of the figure are explained as
follows:



Fund Sponsor:
The sponsor is the company which sets up the mutual fund. It means anybody
corporate acting alone or in combination with another body corporate established a
mutual fund after initiating and completing the formalities

Trust:
MF or trust can either be managed by the Board of Trustees, which is a
body of individuals, or by a Trust Company, which is a corporate body. Most of the
funds in India are managed by Board of Trustees. The trustee being the primary
guardian of the unit holders‟ funds and assets has to be a person of high repute and
integrity. The trustees, however, do not directly manage the portfolio securities. The
portfolio is managed by the AMC as per the defined objectives, accordance with Trust
Deed and SEBI (Mutual Funds) Regulations.


Asset      Management     Company
(AMC):
The AMC, which is appointed by the sponsor or the trustees and approved by SEBI,
acts like the investment manager of the trust. The AMC functions under the
supervision of its own Board of Directors, and also under the direction of the trustees
and SEBI. AMC, in the name of the trust, floats and manages the different investment
‟schemes‟ as per the SEBI Regulations and as per the Investment Management
Agreement signed with the Trustees.
Other
Apart from    these,   the        MF   has   some   other   fund   constituents,   such    as
custodians and depositories, banks, transfer agents and distributors.
The custodian is appointed for safe keeping of securities and participating in the
clearing system through approved depository. The bankers handle the financial
dealings of the fund. Transfer         agents   are    responsible      for   issue       and
redemption    of   units     of    MF.


RiskReturnMatrix:
The risk return trade-off indicates that if investor is willing to take higher risk then
correspondingly he can expect higher returns and vice versa if he pertains to
lower risk instruments, which would be satisfied by lower returns. For example, if an
investor opts for bank FD, which provide moderate return with minimal risk. But as he
moves ahead to invest in capital protected funds and the profit-bonds that give out
more return which is slightly higher as compared to the bank deposits but the risk
involved also increases.
Thus investors choose mutual funds as their primary means of investing, as Mutual
funds provide professional management, diversification, convenience and liquidity.
That doesn‟t mean mutual fund investments are risk free. This is because the money
that is pooled in are not invested only in debts funds which are less riskier but are
also invested in the stock markets which involves a higher risk but can expect higher
returns.


Mutual funds can be classified as follow:
 Based on their structure:
  Open-ended funds: Investors can buy and sell the units from the fund, at any
  point of time.
  Close-ended funds: These funds raise money from investors only once.
  Therefore, after the offer period, fresh investments cannot be made into the
  fund. If the fund is listed on a stocks exchange the units can be traded like
  stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund
  Offers of close-ended funds provided liquidity window on a periodic basis such
  as monthly or weekly. Redemption of units can be made during specified
  intervals. Therefore, such funds have relatively low liquidity.




 Based on their investment objective:
Equity funds: These funds invest in equities and equity related instruments.
         With fluctuating share prices, such funds show volatile performance, even
         losses. However, short term fluctuations in the market, generally smoothens out
         in the long term, thereby offering higher returns at relatively lower volatility. At
         the same time, such funds can yield great capital appreciation as, historically,
         equities have outperformed all asset classes in the long term. Hence,
         investment in equity funds should be considered for a period of at least 3-5
         years. It can be further classified as:
i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is
tracked. Their portfolio mirrors the benchmark index both in terms of composition
and individual stock weight ages.


ii) Equity diversified funds- 100% of the capital is invested in equities spreading
across different sectors and stocks.


iii|) Dividend yield funds- it is similar to the equity diversified funds except that
they
invest in companies offering high dividend yields.


iv) Thematic funds- Invest 100% of the assets in sectors which are related through
some theme.
e.g. -An infrastructure fund invests in power, construction, cements sectors etc.


v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking
sector
fund will invest in banking stocks.


vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors.


         Balanced fund: Their investment portfolio includes both debt and equity. As
         a result, on the risk-return ladder, they fall between equity and debt funds.
         Balanced funds are the ideal mutual funds vehicle for investors who prefer
         spreading their risk across various instruments. Following are balanced funds
         classes.
i.)Debt-oriented funds -Investment below 65% in equities.

           ii.)Equity-oriented funds -Invest at least 65% in equities, remaining in
debt.


           Debt fund: They invest only in debt instruments, and are a good option for
           investors averse to idea of taking risk associated with equities. Therefore, they
           invest exclusively in fixed-income instruments like bonds, debentures,
           Government of India securities; and money market instruments such as
           certificates of deposit (CD), commercial paper (CP) and call money. Put your
           money into any of these debt funds depending on your investment horizon and
           needs.
i)Liquid funds- These funds invest 100% in money market instruments, a large
portion being invested in call money market.


ii) Gilt funds ST- They invest 100% of their portfolio in government securities of
and
T-bills.


iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt
instruments which have variable coupon rate.


IV)Arbitrage fund- They generate income through arbitrage opportunities due to
mispricing between cash market and derivatives market. Funds are allocated to
equities, derivatives and money markets. Higher proportion (around 75%) is put in
money markets, in the absence of arbitrage opportunities.


v) Gilt funds LT- They invest 100% of their portfolio in long-term government
Securities.


vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in
long-term debt papers.


vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an
exposure of 10%-30% to equities.
viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with
that of the fund.




Investment Strategies:


1. Systematic Investment Plan: under this a fixed sum is invested each month
on a fixed date of a month. Payment is made through post dated cheques or direct
debit facilities. The investor gets fewer units when the NAV is high and more units
when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA)


2. Systematic Transfer Plan: under this an investor invest in debt oriented fund
and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of
the same mutual fund.


3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual
fund then he can withdraw a fixed amount each month.



Options Available To Investors:

Each plan of every mutual fund has three options – Growth, Dividend and dividend
reinvestment. Separate NAV are calculated for each scheme.


   -   Dividend Option

Under the dividend plan dividend are usually declared on quarterly or annual basis.
Mutual fund reserves the right to change the frequency of dividend declared.


   -   Dividend reinvestment option
Instead of remittances of units through payouts, Units holder may choose to invest the
entire dividend in additional units of the scheme at NAV related prices of the next
working day after the record date. No sales or entry load is levied on dividend reinvest.


   -   Growth Option

Under this, plan returns accrue to the investor in the form of capital appreciation as
reflected in the NAV. The scheme will not declare the dividend under the Growth plan
and investors who opt for this plan will not receive any income from the scheme.
Instead of income earned on their units will remain invested within the scheme and will
be reflected in the NAV.




Risk Return Hierarchy of Different Funds
BANKS V/S MUTUAL FUNDS:

Mutual Funds are now also competing with commercial banks in the race for retail
investor‟s savings and corporate float money. The power shift towards mutual funds
has become obvious. The coming few years will show that the traditional saving
avenues are losing out in the current scenario. Many investors are realizing that
investments in savings accounts are as good as locking up their deposits in a closet.
The fund mobilization trend by mutual funds indicates that money is going to mutual
fund in a big way.




CATEGORY                    BANKS                        MUTUAL FUNDS

Returns                     Low                          High

Administrative exp.         High                         Low

Risk                        Low                          Moderate

Investment options          Less                         More

Network                     High penetration             Low but improving

Liquidity                   At a cost                    Better

Quality of assets           Not transparent              Transparent

                            Minimum balance between
Interest calculation                                     Everyday
                            10th & 30th of every month

                            Maximum Rs.1 lakh on
Guarantee                                                None
                            deposits
Chapter 2

Profile of Company
Company profile

SBI Mutual Fund is India‟s largest bank sponsored mutual fund and has an enviable
track record in judicious investments and consistent wealth creation SBI Mutual Fund
Set up on 29 June 1987, SBI Mutual Fund is a joint venture between the State Bank of
India, India's largest bank and Societe Generale Asset Management of France, one of
the world's leading fund houses in the country with an investor base of over 4.6 million
and over 20 years of rich experience in fund management consistently delivering value
to its investors.
SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India'
one of India's largest banking enterprises, and Societe Generale Asset Management
(France), one of the world's leading fund management companies that manages over
US$ 500 Billion worldwide. 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. In 20 years of operation, the fund has launched 38 schemes and
successfully redeemed 15 of them, and in the process, has rewarded our investors
with consistent returns. Schemes of the Mutual Fund have time after time
outperformed benchmark indices, honored us with 15 awards of performance and have
emerged as the preferred investment for millions of investors. The trust reposed on us
by over 4.6 million investors is a genuine tribute to our expertise in fund management.
SBI Funds Management Pvt. Ltd. serves its vast family of investors through a network
of over 130 points of acceptance, 28 Investor Service Centers, 46 Investor Service
Desks and 56 District Organizers.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.
MUTUAL F U N D S STRUCTURE


 The SEBI (Mutual Funds) Regulations 1993 define a mutual fund (MF) as a fund
 established in the form of a trust by a sponsor to raise monies by the Trustees
 through the sale of units to the public under one or more schemes for investing in
 securities in accordance with these regulations. These regulations have since been
 replaced by the SEBI (Mutual Funds) Regulations, 1996. The structure indicated by
 the   new   regulations   is   indicated   as   under.   A mutual fund comprises four
 separate entities, namely sponsor, mutual fund trust, AMC and custodian. The
 sponsor establishes the mutual fund and gets it registered with SEBI.
The mutual fund needs to be constituted in the form of a trust and the instrument of
the trust should be in the form of a deed registered under the provisions of the Indian
Registration Act,1908.
The Custodian maintains the custody of the securities in which the scheme invests. It
also keeps a tab on corporate actions such as rights, bonus and dividends declared
by the companies in which the fund has invested. The Custodian is appointed by the
Board of Trustees. The Custodian also participates in a clearing and settlement
system through approved depository companies on behalf of mutual funds, in
case of dematerialized securities.
 The sponsor is required to contribute at least 40% of the minimum net worth (Rs.
 10 crore) of the asset management company. The board of trustees manages the
 MF and the sponsor executes the trust deeds in favor of the trustees. It is the job of
 the MF trustees to see that schemes floated and managed by the AMC appointed by
 the trustees are in accordance with the trust deed and SEBI guidelines
Taxation of Mutual Funds and Investor



      Finance Act 1999 radically changed taxation of Dividends received by
      investors in Mutual Funds.
      Mutual Fund as an entity is not taxed since it is a Pass through entity. Section
      10(23d) of the IT Act.
      Finance Act 1999 made income (dividend) from UNITS totally exempt from
      tax u/s 10(33) in the hands of investors.
      Income (dividends) distributed by a debt fund was made liable to Dividend
      Distribution Tax at applicable rate.
      Open ended funds with more than 50% invested in equity do not pay any
      DDT (since changed to 65% in FY 06-07.
      Individuals 14.02% , Companies 22.44%.
      Security Transaction Tax (STT) is charged as applicable.
      80 C benefits under ELSS up to Rs 1 lack.
Types of Investment in Mutual Fund
       Lump Sum
       Systematic Investment Plan




Lump Sum Payment


A lump sum is a single payment of money, as opposed to a series of payments made
over time (such as an annuity) This means investing the entire sum of money at one
go. For instance, if you have Rs 1 lakh which you are willing to fully invest in stocks or
MFs, it is a lump-sum investment.



Systematic Investment Plan

SBI Mutual Fund on Wednesday, April 15th started its equity based micro systematic
investment plan (Micro SIP) at Alibaug, near Mumbai.

Micro SIP has been launched to offer long-term investment benefits in equity to low
income households residing in the rural and semi-urban areas. "This plan is aimed at
getting in low income households in rural and semi-urban areas to benefit from
long-term investment in equity as an asset class," said Achal Gupta, Managing
Director, SBI Mutual Fund.
The first 100 investors from the low income group in Alibaug were basically the daily
wage earners who enrolled with the SIP in the presence of Mr. O. P. Bhatt, Chairman,
State Bank of India. This was a part of the initiative taken by the bank.

The bank plans to market the product through intermediaries like Self-Help Groups
(SHGs), NGOs and Micro Credit/ Finance Institutions. "We plan to take this product to
the masses partly through marketing by SBI Mutual Fund, and partly by setting targets
for SBI branches for the sale of this product," said Bhatt. The plan is called as SBI
Chota SIP and requires a minimum investment of only Rs 100 per month with
minimum tenure of 5 years.

The bank has also requested the government to remove the permanent account
number (PAN) requirement, which is a must for all mutual fund investments, for this
plan. Presently the investors who want to opt for this plan have the option of investing
in SBI Mutual Fund's Magnum Balanced Fund, MMPS 93, MSFU Contra Fund, and
SBI Blue Chip Fund and later on this plan would be extended to other schemes as
well.SIP is actually a Systematic Investment Plan of investing in Mutual Fund. It is
specially designed for those who aim to build wealth over a long period and want a
better future for him and their dependants. The investment in a Mutual fund can be
done in two ways. First way is onetime payment i.e. making payment to a fund at once
and gets the units of the fund as per the Net Asset Value (NAV) of the fund on that
day. A person wishes to invest in a fund Rs. 24,000/- . On the day of Investment, the
NAV of the fund was Rs. 10/-. He gets 2400 units @ Rs. 10/- per unit. The other way of
investment is making payment to the fund periodically, which is termed as Mutual Fund
SIP. When you commit to invest a fixed amount monthly in a fund, it is called as
Systematic Investment. It is actually beneficial for those investors who wish to invest a
large amount in a fund and wishes to create a large chunk of wealth for long term but
due to financial constraints are able to do so.

Systematic Investment Plan in Mutual Fund is commonly named SIP – is really getting
popular in India. Systematic Investment Plan is such a beautiful tool, which if used
properly can help you to achieve all your financial goals. Some time back we wrote “Do
you really understand Systematic Investment Plan” which is one of the most popular
articles of TFL, but readers requested that they want to read more about basics of
Mutual Fund SIP.
What is Systematic Investment Plan?


Systematic Investment Plan (SIP) is a smart financial planning tool that helps you to
create wealth, by investing small sums of money every month, over a period of time.
Systematic Investment Plan (SIP) is a planned approach to investments and an
investment technique that allows you to provide for the future by investing small
amounts of money in Mutual Fund schemes of your choice.

State Bank of India is one of the largest banking institutions in India. It is not only
reliable but investing money is also safe with a guarantee that great returns can be
obtained from here. Currently, investment in the mutual funds and in the SIP schemes
of the mutual funds has become quite common. There are many companies that offer
the opportunity of investment in the SIP. SBI is also one of them.




A SIP is a method of investing in mutual funds, by investing a fixed sum at a regular
frequency, to buy units of a mutual fund schemes. It is quite similar to a recurring
deposit of a bank or post office. For the convenience, an investor could start a SIP with
as low as Rs 500; however this amount may differ from one fund house to other. The
SIP provides them a way to invest in the fund of their choice in installments.
Here is an illustration using hypothetical figures indicating how the
SIP can work for investors:
Suppose an investor would like to invest Rs.4,000 under the Systematic Investment
Plan on quarterly basis.
Period         Invested Premium         NAV of Maxi        Units allocated
                                        miser Fund (Rs
               (Rs)                     per unit)

7th April‟10   4000                     11.34              352.73

7th May‟10     4000                     11.01              363.31

7th June‟10    4000                     12.05              331.95

7th July‟10    4000                     13.13              304.65

7th            4000                     13.67              292.61
August‟10

7th Sept‟10    4000                     15.81              253.00

7th Oct‟10     4000                     16.78              238.38

7th Nov‟10     4000                     18.28              218.82

7th Dec‟10     4000                     18.71              213.79

7th Jan‟11     4000                     21.48              186.22

7th Feb‟11     4000                     21.49              186.13

7th            4000                     21.98              181.98
March‟11

Total          48000




  Actual average NAV=
  (11.34+11.01+12.05+13.13+13.67+15.81+16.78+18.28+18.71+21.48+21.49+21.
  98) / 12 = 16.29
  NAV for Mr. X        (4,000 * 12) / (352.73+ 363.31 + 331.95 + 304.65 + 292.61 +
  253.00+ 238.38 + 218.82 + 213.79 + 186.22 + 186.13+ 183.74) = Rs.15.36
Based on the historical analysis for BSE Sensex for last 10 to 12 years (i.e.1-Jan-1998
to 1-Jan- have 2010) we find that if an individual had invested Rs. 1000 ever year (SIP)
he would by earned a return of 9% vis-à-vis 5% earned an individual who had invested
Rs. 1000 at the beginning of 10 year period. Similarly over a five-year period (1-Jan-
1994 to 1-Jan-1999) SIP investment return would have been 16.52% compared to
14.09% for a one-time investment at the beginning of the period.

Using the SIP strategy the investor can reduce his average cost per unit. The investor
gets the advantage of getting more units when the market is turned down.


Benefits of SIP

  1. SIP can be started with a minimum investment of Rs. 500/- per month or Rs.
  1000/- per month.
  2. It is good and effective way of creating wealth for long term.
  3. ECS facility is available in case of Investment through SIP.
  4. A small withdrawal from the account doesn‟t affect the bank balance of an
  individual as compared to a hefty withdrawal.
  5. It can be for a year, two years, three years etc. if a person at any point of time
  couldn‟t be able to continue its SIP, he may give instructions at least 25 days
  before to the fund house. His SIP be discontinued.
  6. All type of funds except Liquid funds, cash funds and other funds who invest in
  very short fixed return investments offers the facility of SIP.
  7. Capital gains, if applicable, are taxed on a first-in first-out basis.
  8. As the investment made through SIP are not at one time. Some units bought at
  high price and some at low price, so chances of making gain through SIP is higher
  than the one time investment.


  In short, SIP is a simple and effective way to create wealth but to create such
  wealth, one should think about the investment in SIP for a period of at least for time
  frame of three years because it pays to invest in a longer run..
SBI and SIP:

The relationship between SBI and SIP is quite long and strong. SBI has introduced
several SIPs because it is definitely one of the greatest and the smartest way of
investment in the present scenario. Not only is it less risky but at the same time it also
generates less return. Right from Rs 50 to Rs1500, different amounts can be invested
in the SIP monthly scheme of SBI
Chapter 3

Research Methodology
Research Methodology

    Title of the study

„Systematic Investment Plan
(The Better Way to Invest In Mutual Funds)‟



    Duration of the Project
The duration of the project is 45 days



    Objective of the study
      The purpose of choosing the project is to know:
      Investor‟s option for entry into mutual fund

       Lump sum

       SIP

      Comparative analysis between Lump Sum and SIP
      Investors Delight when investment is through SIP
      Procedure for investment in SIP

    Research Type

Conclusive and explorative approach has been adopted in the study. As here the
topic of research problem has been explored so that hidden facts can come into the
light and then the maximum allocation criteria in SIP are Rs. 1000-3000 i.e. the final
conclusion is given 45%



    SAMPLE SIZE
A sample size of 50 investors was chosen to meet the earlier mentioned objectives. The
selection of sample was based on the following criteria: -

      People belonging to different state of society.
Servicemen working in government organization & private organization.
      Professionals who includes doctors, lawyers, teachers etc


    Research Design

This research is Explorative and conclusive in nature because it aims to collect the
data about the behavior of investors in which way they invest in Mutual Funds. The
research approach used is survey based and the analysis is largely based on the
primary data.




    Research Instrument

Structured questionnaire: open- ended and close- ended.

    Contact Method

Personal interview




    Research Approach

Any methodology includes the overall research design, the sampling procedure and
data collection method. The methodology adopted by me for purpose of finding the
investment behavior of investors was DIRECT SURVEY METHOD




    POPULATION

Udaipur City



    Study scope of the
Udaipur only

This project will help existing/prospective investor to understand what the various mode
of investment in Mutual Fund are and why Systematic Investment Plan gives better
returns than Lump sum. So that investors can do better use of their hard earned money
to earn more profit.

    Types of data

1. Primary Data

2. Secondary Data

Primary Data is that data which is collected by the researcher as per his/her needs

Secondary Data is that data which is collected through references as websites,
journals, books, magazines , etc.




    LIMITATIONS TO THE SURVEY
Though research based decision-making is now considered but still there is a gap
between the understanding of researcher and users.

Research is there to help in decision-making, not a substitute of decision-making. Some
of the following limitations have restricts the scope of survey to some extent :



             Some respondents gave vague information and were not serious while
               responding.


             Some respondents were hesitant to reveal information about their finances
               because of income tax queries.


             It was difficult to find whether respondents actually participate in their
               financial planning.


             Research can provide number of facts but it does not provide actionable
               results.


             It cannot provide answer to any problem but can only provide a set of
               guidelines.


             Management rely more on the intuitions and judgments rather than
               research.


             Area of research was restricted to some location of the city and state.
Chapter 4

Facts and Finding
Finding

The analysis is done based on the structured questions and we got following points:


   -   55% investor invests in SIP mode.

   -   84% got more profit in SIP

   -   The maximum duration of investment in SIP is 3 years i.e. 34%.

   -   The maximum allocation criteria in SIP are 1000-3000 i.e. 45%
Chapter 5

Analysis and Interpretation
Q 1: In which Financial Instrument do you invest into?

Ans:

         Financial Instruments           Investment in %

         Mutual                          76

         Bond                            15

         Online Trading                  07

         Derivatives                     02




Interpretation: From above pie chart, I have analyzed that 76% of investors invest in
the analysis is done on the basis of the response of respondents, which is collected
through the questions present in questionnaire.
Q 2: By structure in which type of schemes have you invested?

Ans :

        Types of schemes on the basis of Investment in %
        structure

        Open ended funds                         66

        Close ended funds                        22

        Intervals funds                          12




Interpretation: The above pie chart depicts that 66% investors invest in Open-ended
funds, 22% in Close-ended funds and 12% in Interval funds.
Q. 3: By investment objective In which type of schemes have you invested?

Ans:

        Types of Investment on the basis of Investment in %
        objective

        Growth Schemes                            55

        Income Schemes                            13

        Balances Schemes                          32




Interpretation: From the above pie chart, I conclude that there are 55 % investors
who invest in Growth Schemes, 13% investor invest in Income Schemes, and 32%
investors invest in Balanced Funds.
Q.4.    In which type of fund you want to invest?

Ans :
                TYPES OF FUNDS         INVESTMENT      IN
                                       %

                Index Fund             41

                Tax Saver Fund         15

                Sectoral fund          44




Interpretation: The above chart depicts that the maximum numbers of investor.i.e.41%
investors invest in Sectoral Funds , 44% in Index Funds and 15% in Tax Saver Funds.
Q.5 Do you repeat your investment after initial investment?

Ans :


               Repetition     of Investors in %
               investment

               Yes                68

               No                 32




Interpretation: The above pie chart depicts that 68% of investors invest again after the
initial investment
Q.6 What percentage of your earnings do you invest in Mutual Funds?

 Ans :


             % of earnings                       Investors in %

             Upto 10%                            43

             Upto 25%                            32

             Upto 50%                            15

             Above 50%                           10




Interpretation: The above chart depicts that 43% investor invest that up to 10% of their
earning in Mutual Fund.
Q.7 :How many investors invested in SIP , Lump sum or both?

Ans :

              Type of investment          Investment in %
              SIP                         55
              Lump sum                    10
              Both                        35




Interpretation: From above chart I have analyzed that 55% investors have invested
SIP, 10% in lump sum and 35% in both the category.
Q.8 what is an allocation criteria of an investor in SIP?

 Ans :




         Allocation criteria (in Rs)        Investment in %
         Less than 1000                             9
           1000-3000                                45
           3000-5000                                36
         More than 5000                             10




  50
                            Allocation criteria (in Rs)
  45
  40
  35
  30
  25
  20
                                                                          investment in %
  15
  10
   5
   0
          less than 1000   1000-3000    3000-5000        more than 5000




Interpretation: From above chart b I have analyzed that the allocation criteria of
investment is 45% in the range Rs1000 to Rs 3000.
Q.9 What is the time duration of investment?

Ans :




            Time duration                    Investment in %
           Less than or equal to 5 years       25
           Less than or equal to 4 years       8
           Less than or equal to 3 years       34
           Less than or equal to 2 years       25
           Less than or equal to 1 year        8




Interpretation: The above bar chart depicts that most of the investors (i.e. 33.33%)
invest in less than 3 years.
Q.10 which has given more profit to investors?

Ans :

        Investment in                  Profit in %
        Lump sum                        84
        SIP                             16




Interpretation: The above Pie chart depicts that 84% of investors have got more profit
in Systematic Investment Plan.
Chapter 5

SWOT Analysis
SWOT ANALYSIS


  STRENGTH                             WEAKNESS

                                     No access to rural market.
                                     No direct link between investors
   A well known name in
                                     and AMC.
   financial companies.
   Wide experience in this
   field.
   Dedicated employees.
   Tie up with many financial
   institutions.
   Ever growing distribution
   network.
   Good infrastructure.
   Experienced            fund
   manager.
   Easy access to branch.



    Opportunities                THREATS

   Positive outlook of People        Highly volatile and uncertain
   toward mutual funds.              market.
   Untapped market.                  Large number of financial giants
                                     present in this market
Chapter 7

Conclusion
Conclusion:

Findings:

Our findings during the training with State Bank of India (MF), Udaipur was good on the
following grounds:-

      State Bank is a top ranked company listed with NSDL and CDSL; provide trading
      through both NSE and BSE.
      Sis providing software to their prospective sub brokers and revisers.
      Cheque updating in 15 minutes and the credit limit up to 10 times.



There are some more points :-

      Mutual fund advisors give emphasis on mutual funds than other investment
      options.



      The awareness level of investor is low as advisors are interested in dealing in
      mutual funds.


      Very less advisors are knowing about services provided by State Bank of India
      (Mutual Fund)


      Mutual funds have given a new direction to the flow of personal saving and
      enable small and medium investors in remote rural and semi urban areas to reap
      the benefits of the stock market investments. Indian mutual funds are thus
      playing a very important role in allocation of scarce resources in the emerging
      economy.
Chapter 8

Suggestion
RECOMMENDATION AND SUGGESTIONS

Though the State Bank of India have a very good ascribed plan with exclusive band of
opportunities but as nothing is free from the hurdles therefore there are few
shortcomings which I felt makes SBI fail to achieve its target :

         There is high potential market for mutual fund advisors in Udaipur city but this
         market needs to be explored as investors are still hesitated to invest their
         money in mutual fund.
         In Udaipur investors have inadequate knowledge about mutual fund, so proper
         marketing of various schemes is required. Company should arrange more and
         more seminars on mutual funds.
         Awareness of mutual fund services among the investors are very low so Asset
         Management Company needs proper marketing of their all services by
         advertising , distribution of pamphlet , arranging seminars etc.
         Most advisors are not interested in dealing of mutual funds because they get
         very low commission.
         Company should also provide knowledge about the growth rate and expected
         growth rate of mutual fund industry in India.
         Most people are aware of Life Insurance , NSC and PPF for tax saving so
         company should market various tax saving scheme of mutual fund and their
         benefits.
Chapter 9

Annexure
QUESTIONNAIRE



(Hello, I am Chanchal Salvi. I need your spare time to fill up the questionnaire, as this is
the part of my Summer Internship Training under MBA curriculum)

NAME: ______________________________________ __________________

AGE

0-18_____      18-36_____      36-54_____     54-72______        72 ABOVE______

GENDER:           Male

                  Female

OCCUPATION:        Businessman        [ ]      Pvt. Employee      [ ]

                   Govt. Employee      [ ]     Professional        [ ]

                   Student             [ ]      other (specify):________

CONTACT NO: __________________________________

Q1. In which of these Financial Instruments do you invest into?

      Mutual Funds [ ]                 Bonds [ ]

      Derivatives [ ]                  Online trading [ ]

Q2 .By structure in which type of schemes did you invested?

      Open Ended Fund        [ ]

      Close Ended Fund       [ ]

      Interval Schemes        [ ]

Q3.By investment objective in which type of schemes have you invested?

   Growth Schemes            [ ]

   Income Schemes             [ ]

   Balanced Schemes           [ ]
Q4.In which type of funds you want to invest?

   Tax Saver Funds     [ ]

   Index Funds         [ ]

   Sactorial Funds     [ ]

Q5. Did you repeat your investment after your initial investments?

   Yes [ ]                          No [ ]

Q6. What percentage of your earnings do you invest in Mutual Funds?

    Up to 10%          Up to 25%                    Up to 50%    Above 50%

Q7. In which you have invested?

    SIP [ ]          Lump Sum [ ]      Both [   ]

Q8. What is your allocation criterion?

   <1000b [ ]    1000-3000 [ ] 3000-5000 [ ]        >5000b [ ]

Q9. For what time period you have invested?

    <= 1 yr. [ ] <= 2 yr. [ ]   <= 3 yr. [ ] <= 4 yr. [ ] <= 5 yr. [ ]

Q10. Which has given you more profit?

    SIP [ ]           Lump Sum [ ]
Chapter 10
Bibliography
Bibliography



  1. Internet
  2. Magazines and journal of the company
  3. Book of financial Management
  4. Website:-



           www.sbimf.com

           www.amfi.coms

           www.moneycontrol.com

           www.valueresearch.com

           www.google.com

           www.mutaulfundsindia.com

           www.investopedia.com
systematic Investment Plan

Weitere ähnliche Inhalte

Was ist angesagt?

Comparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fundComparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fundvaibhav belkhude
 
Comparitive study of_mutual_fund
Comparitive study of_mutual_fundComparitive study of_mutual_fund
Comparitive study of_mutual_fundnanak singh
 
Performance and Analysis of Mutual Funds in India
Performance and Analysis of Mutual Funds in IndiaPerformance and Analysis of Mutual Funds in India
Performance and Analysis of Mutual Funds in IndiaAditya Mahindrakar
 
Project on Mutual Funds
Project on  Mutual FundsProject on  Mutual Funds
Project on Mutual FundsRavindra Jeet
 
mutual fund in india
mutual fund in indiamutual fund in india
mutual fund in indiakeyursavalia
 
Project on mutual funds as an investment avenue
Project on mutual funds as an investment avenueProject on mutual funds as an investment avenue
Project on mutual funds as an investment avenueProjects Kart
 
A project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in indiaA project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in indiaProjects Kart
 
Project on mutual funds is the better investments plan
Project on mutual funds is the better investments planProject on mutual funds is the better investments plan
Project on mutual funds is the better investments planProjects Kart
 
Return and risk, systematic investment plan of mutual fund
Return and risk, systematic investment plan of mutual fundReturn and risk, systematic investment plan of mutual fund
Return and risk, systematic investment plan of mutual fundamulya bachu
 
Comparaitive analysis of mutual funds
Comparaitive analysis of mutual fundsComparaitive analysis of mutual funds
Comparaitive analysis of mutual fundsSrujan Kumar
 
Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...
Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...
Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...Shubham Tandan
 
project report on mutual fund
project report on mutual fundproject report on mutual fund
project report on mutual fundnitesh tandon
 
Project on mutual funds study and survey
Project on mutual funds study and surveyProject on mutual funds study and survey
Project on mutual funds study and surveyProjects Kart
 
A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND Nirav Thanki
 
Project Report On Mutual fund
Project Report On Mutual fund Project Report On Mutual fund
Project Report On Mutual fund Amit Dazz
 
A comparative analysis of mutual fund schemes in various banks
A comparative analysis of mutual fund schemes in various banksA comparative analysis of mutual fund schemes in various banks
A comparative analysis of mutual fund schemes in various banksMaya Singh
 
Project report of axis mutual fund by kamal
Project report of axis mutual fund by kamalProject report of axis mutual fund by kamal
Project report of axis mutual fund by kamalKamal Sharma
 
mutual fund summer internship project
mutual fund summer internship projectmutual fund summer internship project
mutual fund summer internship projectNitish Nair
 

Was ist angesagt? (20)

Comparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fundComparative analysis on investment in mutual fund
Comparative analysis on investment in mutual fund
 
Comparitive study of_mutual_fund
Comparitive study of_mutual_fundComparitive study of_mutual_fund
Comparitive study of_mutual_fund
 
Performance and Analysis of Mutual Funds in India
Performance and Analysis of Mutual Funds in IndiaPerformance and Analysis of Mutual Funds in India
Performance and Analysis of Mutual Funds in India
 
Project on Mutual Funds
Project on  Mutual FundsProject on  Mutual Funds
Project on Mutual Funds
 
mutual fund in india
mutual fund in indiamutual fund in india
mutual fund in india
 
Project on mutual funds as an investment avenue
Project on mutual funds as an investment avenueProject on mutual funds as an investment avenue
Project on mutual funds as an investment avenue
 
A project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in indiaA project report on comparative study of mutual funds in india
A project report on comparative study of mutual funds in india
 
Project on mutual funds is the better investments plan
Project on mutual funds is the better investments planProject on mutual funds is the better investments plan
Project on mutual funds is the better investments plan
 
Return and risk, systematic investment plan of mutual fund
Return and risk, systematic investment plan of mutual fundReturn and risk, systematic investment plan of mutual fund
Return and risk, systematic investment plan of mutual fund
 
Comparaitive analysis of mutual funds
Comparaitive analysis of mutual fundsComparaitive analysis of mutual funds
Comparaitive analysis of mutual funds
 
Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...
Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...
Mutual fund Simplified- To study the Perception Towards Mutual Fund Services ...
 
PROJECT REPORT ON MUTUAL FUNDS
PROJECT REPORT ON MUTUAL FUNDS PROJECT REPORT ON MUTUAL FUNDS
PROJECT REPORT ON MUTUAL FUNDS
 
sbi mutual fund
sbi mutual fundsbi mutual fund
sbi mutual fund
 
project report on mutual fund
project report on mutual fundproject report on mutual fund
project report on mutual fund
 
Project on mutual funds study and survey
Project on mutual funds study and surveyProject on mutual funds study and survey
Project on mutual funds study and survey
 
A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND A PERFORMANCE EVALUATION OF MUTUAL FUND
A PERFORMANCE EVALUATION OF MUTUAL FUND
 
Project Report On Mutual fund
Project Report On Mutual fund Project Report On Mutual fund
Project Report On Mutual fund
 
A comparative analysis of mutual fund schemes in various banks
A comparative analysis of mutual fund schemes in various banksA comparative analysis of mutual fund schemes in various banks
A comparative analysis of mutual fund schemes in various banks
 
Project report of axis mutual fund by kamal
Project report of axis mutual fund by kamalProject report of axis mutual fund by kamal
Project report of axis mutual fund by kamal
 
mutual fund summer internship project
mutual fund summer internship projectmutual fund summer internship project
mutual fund summer internship project
 

Ähnlich wie systematic Investment Plan

Scope for mutual fund advisory business in Jamnagar
Scope for mutual fund advisory business in JamnagarScope for mutual fund advisory business in Jamnagar
Scope for mutual fund advisory business in JamnagarPritesh Radadiya
 
Project report a study of sbi mutual funds up
Project report a study of sbi mutual funds upProject report a study of sbi mutual funds up
Project report a study of sbi mutual funds uprangeshsatna
 
COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...
COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...
COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...Deepak Lohar
 
mutual funds is the better investment plan
mutual funds is the better investment planmutual funds is the better investment plan
mutual funds is the better investment plannitesh tandon
 
sulabha arun ithape
sulabha arun ithapesulabha arun ithape
sulabha arun ithape9664337315
 
MUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdfMUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdfPrinceVerma938105
 
Adityakashyap 140620064428-phpapp01
Adityakashyap 140620064428-phpapp01Adityakashyap 140620064428-phpapp01
Adityakashyap 140620064428-phpapp01Nagpur home
 
13246827 project-on-mutual-fund-akhilesh-mishra
13246827 project-on-mutual-fund-akhilesh-mishra13246827 project-on-mutual-fund-akhilesh-mishra
13246827 project-on-mutual-fund-akhilesh-mishraMohammed Sarfaraz
 
Mutual funds is the better investments plan
Mutual funds is the better investments planMutual funds is the better investments plan
Mutual funds is the better investments planProjects Kart
 
Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.AKSHAY TYAGI
 
Individual behavior regarding mutual fund investment
Individual behavior regarding mutual fund investmentIndividual behavior regarding mutual fund investment
Individual behavior regarding mutual fund investmentPritesh Radadiya
 
Portfolio management and mutual fund analysis for idbi bank by mayur shukla
Portfolio management and mutual fund analysis for idbi bank by mayur shuklaPortfolio management and mutual fund analysis for idbi bank by mayur shukla
Portfolio management and mutual fund analysis for idbi bank by mayur shuklaarun5530
 
(Icici copy)summer internship report icici direct (1)
(Icici copy)summer internship report icici direct (1)(Icici copy)summer internship report icici direct (1)
(Icici copy)summer internship report icici direct (1)kavita tripathi
 
117330592034 sbi
117330592034 sbi117330592034 sbi
117330592034 sbiVishal Shah
 
Indian mutual fund industry
Indian mutual fund industryIndian mutual fund industry
Indian mutual fund industryvbrd83
 
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLife
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLifeA Comparative Study of Equity Mutual Funds between Reliance and Birla SunLife
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLifePriyank Agarwal
 

Ähnlich wie systematic Investment Plan (20)

Scope for mutual fund advisory business in Jamnagar
Scope for mutual fund advisory business in JamnagarScope for mutual fund advisory business in Jamnagar
Scope for mutual fund advisory business in Jamnagar
 
Project report a study of sbi mutual funds up
Project report a study of sbi mutual funds upProject report a study of sbi mutual funds up
Project report a study of sbi mutual funds up
 
COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...
COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...
COMPARISON OF SIP OF DIFFERENT MUTUAL FUND COMPANIES & RECURRING DEPOSITS OF ...
 
Mf
MfMf
Mf
 
mutual funds is the better investment plan
mutual funds is the better investment planmutual funds is the better investment plan
mutual funds is the better investment plan
 
sulabha arun ithape
sulabha arun ithapesulabha arun ithape
sulabha arun ithape
 
MUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdfMUKESH MAURYA BRP REPORT.pdf
MUKESH MAURYA BRP REPORT.pdf
 
vishal and bhavesh
vishal and bhaveshvishal and bhavesh
vishal and bhavesh
 
Adityakashyap 140620064428-phpapp01
Adityakashyap 140620064428-phpapp01Adityakashyap 140620064428-phpapp01
Adityakashyap 140620064428-phpapp01
 
13246827 project-on-mutual-fund-akhilesh-mishra
13246827 project-on-mutual-fund-akhilesh-mishra13246827 project-on-mutual-fund-akhilesh-mishra
13246827 project-on-mutual-fund-akhilesh-mishra
 
Mutual funds is the better investments plan
Mutual funds is the better investments planMutual funds is the better investments plan
Mutual funds is the better investments plan
 
Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.Full Project Report on SBI mutual funds.
Full Project Report on SBI mutual funds.
 
Individual behavior regarding mutual fund investment
Individual behavior regarding mutual fund investmentIndividual behavior regarding mutual fund investment
Individual behavior regarding mutual fund investment
 
Sip zeeshan khan
Sip zeeshan khanSip zeeshan khan
Sip zeeshan khan
 
Portfolio management and mutual fund analysis for idbi bank by mayur shukla
Portfolio management and mutual fund analysis for idbi bank by mayur shuklaPortfolio management and mutual fund analysis for idbi bank by mayur shukla
Portfolio management and mutual fund analysis for idbi bank by mayur shukla
 
(Icici copy)summer internship report icici direct (1)
(Icici copy)summer internship report icici direct (1)(Icici copy)summer internship report icici direct (1)
(Icici copy)summer internship report icici direct (1)
 
117330592034 sbi
117330592034 sbi117330592034 sbi
117330592034 sbi
 
Indian mutual fund industry
Indian mutual fund industryIndian mutual fund industry
Indian mutual fund industry
 
Cp ppt
Cp pptCp ppt
Cp ppt
 
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLife
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLifeA Comparative Study of Equity Mutual Funds between Reliance and Birla SunLife
A Comparative Study of Equity Mutual Funds between Reliance and Birla SunLife
 

Kürzlich hochgeladen

Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop AG
 
Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024nicola_mining
 
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd
 
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper PotentialAdvancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper Potentialnicola_mining
 
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFWWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFMichael Claudio
 
Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop AG
 

Kürzlich hochgeladen (6)

Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023Deutsche EuroShop | Preliminary Results FY 2023
Deutsche EuroShop | Preliminary Results FY 2023
 
Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024Nicola Mining Inc. Corporate Presentation March 2024
Nicola Mining Inc. Corporate Presentation March 2024
 
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
Osisko Gold Royalties Ltd - Corporate Presentation, March 2024
 
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper PotentialAdvancing Discovery New Craigmont Project’s High-grade Copper Potential
Advancing Discovery New Craigmont Project’s High-grade Copper Potential
 
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDFWWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
WWW.SOFTSOP.COM PITCH DECK PRESENTATION.PDF
 
Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24Deutsche EuroShop | Company Presentation | 03/24
Deutsche EuroShop | Company Presentation | 03/24
 

systematic Investment Plan

  • 1. A Project Study Report On “Systematic Investment Plan (The Better Way to Invest In Mutual Funds)” AT SBI MUTUAL FUND Submitted in Partial Fulfillment for The Award of Degree of Master of Business Administration 2011-2013 Submitted by: Submitted to: Chanchal Salvi Dr.Sunita Agarwal MBA Semester III Professor Advent Institute of Management Studies Udaipur
  • 2. PREFACE There are four steps to Accomplishment & Success – Plan, Purposefully, Prepare thoroughly, Proceed Positively & Pursue Persistently. In this development and changing world, I feel proud for being a student of M.B.A programmed at Advent Institute of Management Studies UDAIPUR. The summer training in the MBA course is the major event that gives you an insight into the expectations that a company has from the MBAs. It provides a „pre working‟ experience for a student and gives enough exposure so that one can give his/her best in the organization which he/she joins in the future. Due to ever increasing competitiveness in the market today the specific skills of management are always called for. For this project my training place was State Bank of India. Udaipur. During my study I got enough information. This report is purely based on what I worked and analyzed during my training. In preparing this report I have drawn a vast amount of literature Naturally, I owe an intellectual debt to numerous lectures that enrich the stream of my study. This project is a summary of the information gathered during the study. I Confident that my sincere effort and special attention will justify the subjects in the report.
  • 3. ACKNOWLEDGEMENT I express my sincere thanks to Dr. R.K. Balyan, Director, Advent Institute of Management Studies and my project guide Dr. Sunita Agrawal, Professor, Deptt AIMS, for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support she had provided to me with all stages of this project. I would also like to thank the supporting staff of Advent Institute of Management Studies for their help and cooperation throughout our project. Chanchal salvi
  • 4. Executive Summary Mutual funds have emerged as a strong financial intermediary and are the fastest growing segment of the financial services sector in India. Mutual funds play a very significant role in channelizing the savings of millions of individuals. A mutual fund is the most suitable investment for the common person as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. There are wide varieties of mutual fund schemes that cater to investor needs. Whether as the foundation of one‟s investment programme or as a supplement, mutual fund schemes can help the investors to meet their financial goals. A host of factors has contributed to this explosive growth of the industry. The industry has made significant strides in terms of its variety, sophistication and regulation. Due to the economic boom, entry of foreign asset management companies, favorable stock markets and aggressive marketing by mutual funds, the asset management industry in India is witnessing dramatic growth in terms of new fund openings, the number of mutual fund families, and in the total assets under management in recent years. Despite various attractions offered, the total net assets of mutual funds are very less as compared to other developed countries. In the product offering too, the Indian fund industry is not close to the developed countries. India‟s 32 member fund industry has to scale new heights to narrow the gap with the other developed countries. To achieve this, the Indian mutual fund industry needs to widen its range of products with affordable and competitive schemes that combine various elements of liquidity, return and security in making mutual fund products the best possible alternative for the small investors in the Indian market. Besides, mutual funds can survive only if they perform well and satisfy the expectations of the investors. In this context a sincere attempt has been made by the researcher to examine the steady growth of the industry, the innovations and the development that has taken place in India. This research on Mutual Fund industry will specifically focus on the SBI Mutual Funds.
  • 5. Table of Contents Sr. Chapter Name of content Page No:- no 1. Introduction 1.1 An overview 1-15 2. Profile of company 16- 3. Research 2.1 Title of the study 30 methodology 2.2 Duration of the project 32 2.3 Objective of the study 34 2.4 Simple size &method 36 2.5 Scope of the study 37 2.6 Limitation of the study 41 4. Findings & Facts 3.1 Findings 45 5. Data Analysis 60 6. SWOT analysis of the 62 company 7. Conclusion 63 8. Suggestions 64 Recommendations 9. Appendix 65 10. Bibliography 67
  • 7. Introduction The financial system is a set of institutional arrangements through which financial surpluses available in the economy are mobilized. A financial system, which is inherently strong, functionally diverse and displays efficiency and flexibility, is critical in creating a market-driven, productive and competitive economy. A mature financial system has to gear up and undergo varied and comprehensive changes in order to achieve rapid economic development. The financial sector reforms in India in the early nineties has resulted in explosive growth of the economy, opening up of the Indian financial market to foreign and private Indian players, large inflow of Foreign Ninth AIMS International Conference on Management Institutional Investors, increased competition and better product offerings to consumers. One of the major developments of this decade has been the take-off of mutual funds. Mutual funds have emerged as a strong financial intermediary and are the fastest growing segment of the financial services sector in India. It aims at promoting a diversified, efficient and competitive financial sector increasing the return on investment and promoting and accelerating the growth of the economy. It is a medium of investment suitable to the small investors, who are not able to invest in stock market directly. Mutual funds now play a very significant role in channelizing the savings of millions of individuals. The mutual fund industry in India over the years has seen dramatic improvements in terms of quantity as well as quality of product and service offerings in recent years. The tremendous growth of Indian Mutual Funds industry is an indicator of India‟s efficient financial market and the trust which investors have on the regulatory Environment. Millions of investors rely on mutual funds as their primary investments because they offer a convenient, cost-effective and easy way to invest in the financial markets. The Securities Exchange Board of India (SEBI) regulates this fast growing industry and it is the representative body of all mutual funds in the country. Every mutual fund has a goal - either growing its assets (capital gains) and/or generating income (dividends) for its investors. Distribution in the form of capital gains (short-term and long-term) and dividends may be passed on (paid) to the shareholders
  • 8. as income or reinvested to purchase more shares. A mutual fund is valued daily and reports a price known as a Net Asset Value (NAV) per share. In its simplest Form, a NAV is the total value of all the securities held in a fund divided by the total number of shares owned by its shareholders. As the price of the NAV increases or decreases, the shareholder's value will increase or decrease. Current Scenario of Mutual Funds The global economic environment was conducive and this led to the explosive growth of mutual funds in most countries particularly since 1980‟s. This growth can be attributed to the strong emergence of the market economy which depends more on the growth led by the stock market. Mutual funds found increasing acceptance in the developed countries when compared to the developing countries in the early and mid 90‟s but gradually it found its place even in the developing countries because of its advantages. Gradually the number of mutual funds increased significantly worldwide and many developed countries started designing country specific funds to match the trend prevailing in other developed countries. Evolution of Mutual Fund Industry in India The mutual fund revolution that was sweeping the other countries bypassed India also. The formation of Unit Trust of India marked the evolution of the Indian mutual fund industry in the year 1963. The primary objective at that time was to attract the small investors and it was made possible through the collective efforts of the Government of India and the Reserve Bank of India. UTI commenced its operations from July 1964 and different provisions of the UTI Act laid down the structure of management, scope of business, powers and functions of the trust as well as accounting, disclosures and regulatory requirements for the trust. Even though the growth of the mutual fund industry was very slow in the beginning, it accelerated when the public sector and private sector mutual funds entered the market after the year 1987. The mobilization of funds and the number of players operating in the industry reached new heights as investors started showing more interest in mutual funds. Investors' interests were safeguarded by SEBI and the Government offers tax benefits to the investors in order to encourage them. SEBI also introduced SEBI
  • 9. (Mutual Funds) Regulations, 1996 and set uniform standards for all mutual funds in India. History of the Indian Mutual Fund Industry The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the initiative of the Government of India and Reserve Bank. Though the Growth was slow, but it accelerated from the year 1987 when non-UTI players entered the Industry. In the past decade, Indian mutual fund industry had seen a dramatic improvement, both qualities wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the Assets Under Management (AUM) was Rs67 billion. The private sector entry to the fund family raised the Aum to Rs. 470 billion in March 1993 and till April 2004; it reached the height if Rs. 1540 billion. The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund industry can be broadly put into four phases according to the development of the sector. Each phase is briefly described as under. First Phase – 1964-87 Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the Reserve Bank of India and functioned under the Regulatory and administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management. Second Phase – 1987-1993 (Entry of Public Sector Funds) 1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987 followed by can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in December 1990.At the end of 1993, the mutual fund industry had assets under management of Rs.47,004 crores. Third Phase – 1993-2003 (Entry of Private Sector Funds)
  • 10. 1993 was the year in which the first Mutual Fund Regulations came into being, under which all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private sector Mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive And revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund) Regulations 1996. As at the end of January 2003, there were 33 Mutual funds with total assets of Rs. 1,21,805 crores. Fourth Phase – since February 2003: In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was Bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust Of India with assets under management of Rs.29,835 crores as at the end of January 2003, representing broadly, the assets of US 64 scheme, assured return and certain Other schemes. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is Registered with SEBI and functions under the Mutual Fund Regulations. Consolidation And growth. As at the end of September, 2004, there were 29 funds, which manage Assets of Rs.153108 crores under 421 schemes.
  • 11. Mutual Fund A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings A mutual fund is a professionally managed investment product that sells shares to investors and pools the capital it raises to purchase investments A fund typically buys a diversified portfolio of stock, bonds, and money market securities, or a combination of stock and bonds, depending on the investment objectives of the fund. Mutual funds may also hold other investments, such as derivatives. A fund that makes a continuous offering of its shares to the public and will buy any shares an investor wishes to redeem, or sell back, is known as an open- end fund. An open-end fund trades at net asset value (NAV). An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
  • 12. Advantages of Mutual Funds - Diversification - Professional Management - Regulatory oversight - Liquidity - Convenience - Low cost - Transparency - Flexibility - Choice of schemes - Tax benefits - Well regulated Working of Mutual Funds: The following figure explains the working of Mutual funds
  • 13. The important terms of the figure are explained as follows: Fund Sponsor: The sponsor is the company which sets up the mutual fund. It means anybody corporate acting alone or in combination with another body corporate established a mutual fund after initiating and completing the formalities Trust: MF or trust can either be managed by the Board of Trustees, which is a body of individuals, or by a Trust Company, which is a corporate body. Most of the funds in India are managed by Board of Trustees. The trustee being the primary guardian of the unit holders‟ funds and assets has to be a person of high repute and integrity. The trustees, however, do not directly manage the portfolio securities. The portfolio is managed by the AMC as per the defined objectives, accordance with Trust Deed and SEBI (Mutual Funds) Regulations. Asset Management Company (AMC): The AMC, which is appointed by the sponsor or the trustees and approved by SEBI, acts like the investment manager of the trust. The AMC functions under the supervision of its own Board of Directors, and also under the direction of the trustees and SEBI. AMC, in the name of the trust, floats and manages the different investment ‟schemes‟ as per the SEBI Regulations and as per the Investment Management
  • 14. Agreement signed with the Trustees. Other Apart from these, the MF has some other fund constituents, such as custodians and depositories, banks, transfer agents and distributors. The custodian is appointed for safe keeping of securities and participating in the clearing system through approved depository. The bankers handle the financial dealings of the fund. Transfer agents are responsible for issue and redemption of units of MF. RiskReturnMatrix: The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher returns and vice versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an investor opts for bank FD, which provide moderate return with minimal risk. But as he moves ahead to invest in capital protected funds and the profit-bonds that give out more return which is slightly higher as compared to the bank deposits but the risk involved also increases. Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management, diversification, convenience and liquidity. That doesn‟t mean mutual fund investments are risk free. This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which involves a higher risk but can expect higher returns. Mutual funds can be classified as follow:
  • 15.  Based on their structure: Open-ended funds: Investors can buy and sell the units from the fund, at any point of time. Close-ended funds: These funds raise money from investors only once. Therefore, after the offer period, fresh investments cannot be made into the fund. If the fund is listed on a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth Fund). Recently, most of the New Fund Offers of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly. Redemption of units can be made during specified intervals. Therefore, such funds have relatively low liquidity.  Based on their investment objective:
  • 16. Equity funds: These funds invest in equities and equity related instruments. With fluctuating share prices, such funds show volatile performance, even losses. However, short term fluctuations in the market, generally smoothens out in the long term, thereby offering higher returns at relatively lower volatility. At the same time, such funds can yield great capital appreciation as, historically, equities have outperformed all asset classes in the long term. Hence, investment in equity funds should be considered for a period of at least 3-5 years. It can be further classified as: i) Index funds- In this case a key stock market index, like BSE Sensex or Nifty is tracked. Their portfolio mirrors the benchmark index both in terms of composition and individual stock weight ages. ii) Equity diversified funds- 100% of the capital is invested in equities spreading across different sectors and stocks. iii|) Dividend yield funds- it is similar to the equity diversified funds except that they invest in companies offering high dividend yields. iv) Thematic funds- Invest 100% of the assets in sectors which are related through some theme. e.g. -An infrastructure fund invests in power, construction, cements sectors etc. v) Sector funds- Invest 100% of the capital in a specific sector. e.g. - A banking sector fund will invest in banking stocks. vi) ELSS- Equity Linked Saving Scheme provides tax benefit to the investors. Balanced fund: Their investment portfolio includes both debt and equity. As a result, on the risk-return ladder, they fall between equity and debt funds. Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their risk across various instruments. Following are balanced funds classes.
  • 17. i.)Debt-oriented funds -Investment below 65% in equities. ii.)Equity-oriented funds -Invest at least 65% in equities, remaining in debt. Debt fund: They invest only in debt instruments, and are a good option for investors averse to idea of taking risk associated with equities. Therefore, they invest exclusively in fixed-income instruments like bonds, debentures, Government of India securities; and money market instruments such as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into any of these debt funds depending on your investment horizon and needs. i)Liquid funds- These funds invest 100% in money market instruments, a large portion being invested in call money market. ii) Gilt funds ST- They invest 100% of their portfolio in government securities of and T-bills. iii) Floating rate funds - Invest in short-term debt papers. Floaters invest in debt instruments which have variable coupon rate. IV)Arbitrage fund- They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market. Funds are allocated to equities, derivatives and money markets. Higher proportion (around 75%) is put in money markets, in the absence of arbitrage opportunities. v) Gilt funds LT- They invest 100% of their portfolio in long-term government Securities. vi) Income funds LT- Typically, such funds invest a major portion of the portfolio in long-term debt papers. vii) MIPs- Monthly Income Plans have an exposure of 70%-90% to debt and an exposure of 10%-30% to equities.
  • 18. viii) FMPs- fixed monthly plans invest in debt papers whose maturity is in line with that of the fund. Investment Strategies: 1. Systematic Investment Plan: under this a fixed sum is invested each month on a fixed date of a month. Payment is made through post dated cheques or direct debit facilities. The investor gets fewer units when the NAV is high and more units when the NAV is low. This is called as the benefit of Rupee Cost Averaging (RCA) 2. Systematic Transfer Plan: under this an investor invest in debt oriented fund and give instructions to transfer a fixed sum, at a fixed interval, to an equity scheme of the same mutual fund. 3. Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each month. Options Available To Investors: Each plan of every mutual fund has three options – Growth, Dividend and dividend reinvestment. Separate NAV are calculated for each scheme. - Dividend Option Under the dividend plan dividend are usually declared on quarterly or annual basis. Mutual fund reserves the right to change the frequency of dividend declared. - Dividend reinvestment option
  • 19. Instead of remittances of units through payouts, Units holder may choose to invest the entire dividend in additional units of the scheme at NAV related prices of the next working day after the record date. No sales or entry load is levied on dividend reinvest. - Growth Option Under this, plan returns accrue to the investor in the form of capital appreciation as reflected in the NAV. The scheme will not declare the dividend under the Growth plan and investors who opt for this plan will not receive any income from the scheme. Instead of income earned on their units will remain invested within the scheme and will be reflected in the NAV. Risk Return Hierarchy of Different Funds
  • 20. BANKS V/S MUTUAL FUNDS: Mutual Funds are now also competing with commercial banks in the race for retail investor‟s savings and corporate float money. The power shift towards mutual funds has become obvious. The coming few years will show that the traditional saving avenues are losing out in the current scenario. Many investors are realizing that investments in savings accounts are as good as locking up their deposits in a closet. The fund mobilization trend by mutual funds indicates that money is going to mutual fund in a big way. CATEGORY BANKS MUTUAL FUNDS Returns Low High Administrative exp. High Low Risk Low Moderate Investment options Less More Network High penetration Low but improving Liquidity At a cost Better Quality of assets Not transparent Transparent Minimum balance between Interest calculation Everyday 10th & 30th of every month Maximum Rs.1 lakh on Guarantee None deposits
  • 22. Company profile SBI Mutual Fund is India‟s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation SBI Mutual Fund Set up on 29 June 1987, SBI Mutual Fund is a joint venture between the State Bank of India, India's largest bank and Societe Generale Asset Management of France, one of the world's leading fund houses in the country with an investor base of over 4.6 million and over 20 years of rich experience in fund management consistently delivering value to its investors. SBI Funds Management Pvt. Ltd. is a joint venture between 'The State Bank of India' one of India's largest banking enterprises, and Societe Generale Asset Management (France), one of the world's leading fund management companies that manages over US$ 500 Billion worldwide. 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. In 20 years of operation, the fund has launched 38 schemes and successfully redeemed 15 of them, and in the process, has rewarded our investors with consistent returns. Schemes of the Mutual Fund have time after time outperformed benchmark indices, honored us with 15 awards of performance and have emerged as the preferred investment for millions of investors. The trust reposed on us by over 4.6 million investors is a genuine tribute to our expertise in fund management. SBI Funds Management Pvt. Ltd. serves its vast family of investors through a network of over 130 points of acceptance, 28 Investor Service Centers, 46 Investor Service Desks and 56 District Organizers.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.
  • 23. MUTUAL F U N D S STRUCTURE The SEBI (Mutual Funds) Regulations 1993 define a mutual fund (MF) as a fund established in the form of a trust by a sponsor to raise monies by the Trustees through the sale of units to the public under one or more schemes for investing in securities in accordance with these regulations. These regulations have since been replaced by the SEBI (Mutual Funds) Regulations, 1996. The structure indicated by the new regulations is indicated as under. A mutual fund comprises four separate entities, namely sponsor, mutual fund trust, AMC and custodian. The sponsor establishes the mutual fund and gets it registered with SEBI. The mutual fund needs to be constituted in the form of a trust and the instrument of the trust should be in the form of a deed registered under the provisions of the Indian Registration Act,1908. The Custodian maintains the custody of the securities in which the scheme invests. It also keeps a tab on corporate actions such as rights, bonus and dividends declared by the companies in which the fund has invested. The Custodian is appointed by the Board of Trustees. The Custodian also participates in a clearing and settlement system through approved depository companies on behalf of mutual funds, in case of dematerialized securities. The sponsor is required to contribute at least 40% of the minimum net worth (Rs. 10 crore) of the asset management company. The board of trustees manages the MF and the sponsor executes the trust deeds in favor of the trustees. It is the job of the MF trustees to see that schemes floated and managed by the AMC appointed by the trustees are in accordance with the trust deed and SEBI guidelines
  • 24. Taxation of Mutual Funds and Investor Finance Act 1999 radically changed taxation of Dividends received by investors in Mutual Funds. Mutual Fund as an entity is not taxed since it is a Pass through entity. Section 10(23d) of the IT Act. Finance Act 1999 made income (dividend) from UNITS totally exempt from tax u/s 10(33) in the hands of investors. Income (dividends) distributed by a debt fund was made liable to Dividend Distribution Tax at applicable rate. Open ended funds with more than 50% invested in equity do not pay any DDT (since changed to 65% in FY 06-07. Individuals 14.02% , Companies 22.44%. Security Transaction Tax (STT) is charged as applicable. 80 C benefits under ELSS up to Rs 1 lack.
  • 25. Types of Investment in Mutual Fund Lump Sum Systematic Investment Plan Lump Sum Payment A lump sum is a single payment of money, as opposed to a series of payments made over time (such as an annuity) This means investing the entire sum of money at one go. For instance, if you have Rs 1 lakh which you are willing to fully invest in stocks or MFs, it is a lump-sum investment. Systematic Investment Plan SBI Mutual Fund on Wednesday, April 15th started its equity based micro systematic investment plan (Micro SIP) at Alibaug, near Mumbai. Micro SIP has been launched to offer long-term investment benefits in equity to low income households residing in the rural and semi-urban areas. "This plan is aimed at getting in low income households in rural and semi-urban areas to benefit from long-term investment in equity as an asset class," said Achal Gupta, Managing Director, SBI Mutual Fund.
  • 26. The first 100 investors from the low income group in Alibaug were basically the daily wage earners who enrolled with the SIP in the presence of Mr. O. P. Bhatt, Chairman, State Bank of India. This was a part of the initiative taken by the bank. The bank plans to market the product through intermediaries like Self-Help Groups (SHGs), NGOs and Micro Credit/ Finance Institutions. "We plan to take this product to the masses partly through marketing by SBI Mutual Fund, and partly by setting targets for SBI branches for the sale of this product," said Bhatt. The plan is called as SBI Chota SIP and requires a minimum investment of only Rs 100 per month with minimum tenure of 5 years. The bank has also requested the government to remove the permanent account number (PAN) requirement, which is a must for all mutual fund investments, for this plan. Presently the investors who want to opt for this plan have the option of investing in SBI Mutual Fund's Magnum Balanced Fund, MMPS 93, MSFU Contra Fund, and SBI Blue Chip Fund and later on this plan would be extended to other schemes as well.SIP is actually a Systematic Investment Plan of investing in Mutual Fund. It is specially designed for those who aim to build wealth over a long period and want a better future for him and their dependants. The investment in a Mutual fund can be done in two ways. First way is onetime payment i.e. making payment to a fund at once and gets the units of the fund as per the Net Asset Value (NAV) of the fund on that day. A person wishes to invest in a fund Rs. 24,000/- . On the day of Investment, the NAV of the fund was Rs. 10/-. He gets 2400 units @ Rs. 10/- per unit. The other way of investment is making payment to the fund periodically, which is termed as Mutual Fund SIP. When you commit to invest a fixed amount monthly in a fund, it is called as Systematic Investment. It is actually beneficial for those investors who wish to invest a large amount in a fund and wishes to create a large chunk of wealth for long term but due to financial constraints are able to do so. Systematic Investment Plan in Mutual Fund is commonly named SIP – is really getting popular in India. Systematic Investment Plan is such a beautiful tool, which if used properly can help you to achieve all your financial goals. Some time back we wrote “Do you really understand Systematic Investment Plan” which is one of the most popular articles of TFL, but readers requested that they want to read more about basics of Mutual Fund SIP.
  • 27. What is Systematic Investment Plan? Systematic Investment Plan (SIP) is a smart financial planning tool that helps you to create wealth, by investing small sums of money every month, over a period of time. Systematic Investment Plan (SIP) is a planned approach to investments and an investment technique that allows you to provide for the future by investing small amounts of money in Mutual Fund schemes of your choice. State Bank of India is one of the largest banking institutions in India. It is not only reliable but investing money is also safe with a guarantee that great returns can be obtained from here. Currently, investment in the mutual funds and in the SIP schemes of the mutual funds has become quite common. There are many companies that offer the opportunity of investment in the SIP. SBI is also one of them. A SIP is a method of investing in mutual funds, by investing a fixed sum at a regular frequency, to buy units of a mutual fund schemes. It is quite similar to a recurring deposit of a bank or post office. For the convenience, an investor could start a SIP with as low as Rs 500; however this amount may differ from one fund house to other. The SIP provides them a way to invest in the fund of their choice in installments. Here is an illustration using hypothetical figures indicating how the SIP can work for investors: Suppose an investor would like to invest Rs.4,000 under the Systematic Investment Plan on quarterly basis.
  • 28. Period Invested Premium NAV of Maxi Units allocated miser Fund (Rs (Rs) per unit) 7th April‟10 4000 11.34 352.73 7th May‟10 4000 11.01 363.31 7th June‟10 4000 12.05 331.95 7th July‟10 4000 13.13 304.65 7th 4000 13.67 292.61 August‟10 7th Sept‟10 4000 15.81 253.00 7th Oct‟10 4000 16.78 238.38 7th Nov‟10 4000 18.28 218.82 7th Dec‟10 4000 18.71 213.79 7th Jan‟11 4000 21.48 186.22 7th Feb‟11 4000 21.49 186.13 7th 4000 21.98 181.98 March‟11 Total 48000 Actual average NAV= (11.34+11.01+12.05+13.13+13.67+15.81+16.78+18.28+18.71+21.48+21.49+21. 98) / 12 = 16.29 NAV for Mr. X (4,000 * 12) / (352.73+ 363.31 + 331.95 + 304.65 + 292.61 + 253.00+ 238.38 + 218.82 + 213.79 + 186.22 + 186.13+ 183.74) = Rs.15.36
  • 29. Based on the historical analysis for BSE Sensex for last 10 to 12 years (i.e.1-Jan-1998 to 1-Jan- have 2010) we find that if an individual had invested Rs. 1000 ever year (SIP) he would by earned a return of 9% vis-à-vis 5% earned an individual who had invested Rs. 1000 at the beginning of 10 year period. Similarly over a five-year period (1-Jan- 1994 to 1-Jan-1999) SIP investment return would have been 16.52% compared to 14.09% for a one-time investment at the beginning of the period. Using the SIP strategy the investor can reduce his average cost per unit. The investor gets the advantage of getting more units when the market is turned down. Benefits of SIP 1. SIP can be started with a minimum investment of Rs. 500/- per month or Rs. 1000/- per month. 2. It is good and effective way of creating wealth for long term. 3. ECS facility is available in case of Investment through SIP. 4. A small withdrawal from the account doesn‟t affect the bank balance of an individual as compared to a hefty withdrawal. 5. It can be for a year, two years, three years etc. if a person at any point of time couldn‟t be able to continue its SIP, he may give instructions at least 25 days before to the fund house. His SIP be discontinued. 6. All type of funds except Liquid funds, cash funds and other funds who invest in very short fixed return investments offers the facility of SIP. 7. Capital gains, if applicable, are taxed on a first-in first-out basis. 8. As the investment made through SIP are not at one time. Some units bought at high price and some at low price, so chances of making gain through SIP is higher than the one time investment. In short, SIP is a simple and effective way to create wealth but to create such wealth, one should think about the investment in SIP for a period of at least for time frame of three years because it pays to invest in a longer run..
  • 30. SBI and SIP: The relationship between SBI and SIP is quite long and strong. SBI has introduced several SIPs because it is definitely one of the greatest and the smartest way of investment in the present scenario. Not only is it less risky but at the same time it also generates less return. Right from Rs 50 to Rs1500, different amounts can be invested in the SIP monthly scheme of SBI
  • 32. Research Methodology  Title of the study „Systematic Investment Plan (The Better Way to Invest In Mutual Funds)‟  Duration of the Project The duration of the project is 45 days  Objective of the study The purpose of choosing the project is to know: Investor‟s option for entry into mutual fund Lump sum SIP Comparative analysis between Lump Sum and SIP Investors Delight when investment is through SIP Procedure for investment in SIP  Research Type Conclusive and explorative approach has been adopted in the study. As here the topic of research problem has been explored so that hidden facts can come into the light and then the maximum allocation criteria in SIP are Rs. 1000-3000 i.e. the final conclusion is given 45%  SAMPLE SIZE A sample size of 50 investors was chosen to meet the earlier mentioned objectives. The selection of sample was based on the following criteria: - People belonging to different state of society.
  • 33. Servicemen working in government organization & private organization. Professionals who includes doctors, lawyers, teachers etc  Research Design This research is Explorative and conclusive in nature because it aims to collect the data about the behavior of investors in which way they invest in Mutual Funds. The research approach used is survey based and the analysis is largely based on the primary data.  Research Instrument Structured questionnaire: open- ended and close- ended.  Contact Method Personal interview  Research Approach Any methodology includes the overall research design, the sampling procedure and data collection method. The methodology adopted by me for purpose of finding the investment behavior of investors was DIRECT SURVEY METHOD  POPULATION Udaipur City  Study scope of the
  • 34. Udaipur only This project will help existing/prospective investor to understand what the various mode of investment in Mutual Fund are and why Systematic Investment Plan gives better returns than Lump sum. So that investors can do better use of their hard earned money to earn more profit.  Types of data 1. Primary Data 2. Secondary Data Primary Data is that data which is collected by the researcher as per his/her needs Secondary Data is that data which is collected through references as websites, journals, books, magazines , etc.  LIMITATIONS TO THE SURVEY
  • 35. Though research based decision-making is now considered but still there is a gap between the understanding of researcher and users. Research is there to help in decision-making, not a substitute of decision-making. Some of the following limitations have restricts the scope of survey to some extent : Some respondents gave vague information and were not serious while responding. Some respondents were hesitant to reveal information about their finances because of income tax queries. It was difficult to find whether respondents actually participate in their financial planning. Research can provide number of facts but it does not provide actionable results. It cannot provide answer to any problem but can only provide a set of guidelines. Management rely more on the intuitions and judgments rather than research. Area of research was restricted to some location of the city and state.
  • 37. Finding The analysis is done based on the structured questions and we got following points: - 55% investor invests in SIP mode. - 84% got more profit in SIP - The maximum duration of investment in SIP is 3 years i.e. 34%. - The maximum allocation criteria in SIP are 1000-3000 i.e. 45%
  • 38. Chapter 5 Analysis and Interpretation
  • 39. Q 1: In which Financial Instrument do you invest into? Ans: Financial Instruments Investment in % Mutual 76 Bond 15 Online Trading 07 Derivatives 02 Interpretation: From above pie chart, I have analyzed that 76% of investors invest in the analysis is done on the basis of the response of respondents, which is collected through the questions present in questionnaire.
  • 40. Q 2: By structure in which type of schemes have you invested? Ans : Types of schemes on the basis of Investment in % structure Open ended funds 66 Close ended funds 22 Intervals funds 12 Interpretation: The above pie chart depicts that 66% investors invest in Open-ended funds, 22% in Close-ended funds and 12% in Interval funds.
  • 41. Q. 3: By investment objective In which type of schemes have you invested? Ans: Types of Investment on the basis of Investment in % objective Growth Schemes 55 Income Schemes 13 Balances Schemes 32 Interpretation: From the above pie chart, I conclude that there are 55 % investors who invest in Growth Schemes, 13% investor invest in Income Schemes, and 32% investors invest in Balanced Funds.
  • 42. Q.4. In which type of fund you want to invest? Ans : TYPES OF FUNDS INVESTMENT IN % Index Fund 41 Tax Saver Fund 15 Sectoral fund 44 Interpretation: The above chart depicts that the maximum numbers of investor.i.e.41% investors invest in Sectoral Funds , 44% in Index Funds and 15% in Tax Saver Funds.
  • 43. Q.5 Do you repeat your investment after initial investment? Ans : Repetition of Investors in % investment Yes 68 No 32 Interpretation: The above pie chart depicts that 68% of investors invest again after the initial investment
  • 44. Q.6 What percentage of your earnings do you invest in Mutual Funds? Ans : % of earnings Investors in % Upto 10% 43 Upto 25% 32 Upto 50% 15 Above 50% 10 Interpretation: The above chart depicts that 43% investor invest that up to 10% of their earning in Mutual Fund.
  • 45. Q.7 :How many investors invested in SIP , Lump sum or both? Ans : Type of investment Investment in % SIP 55 Lump sum 10 Both 35 Interpretation: From above chart I have analyzed that 55% investors have invested SIP, 10% in lump sum and 35% in both the category.
  • 46. Q.8 what is an allocation criteria of an investor in SIP? Ans : Allocation criteria (in Rs) Investment in % Less than 1000 9 1000-3000 45 3000-5000 36 More than 5000 10 50 Allocation criteria (in Rs) 45 40 35 30 25 20 investment in % 15 10 5 0 less than 1000 1000-3000 3000-5000 more than 5000 Interpretation: From above chart b I have analyzed that the allocation criteria of investment is 45% in the range Rs1000 to Rs 3000.
  • 47. Q.9 What is the time duration of investment? Ans : Time duration Investment in % Less than or equal to 5 years 25 Less than or equal to 4 years 8 Less than or equal to 3 years 34 Less than or equal to 2 years 25 Less than or equal to 1 year 8 Interpretation: The above bar chart depicts that most of the investors (i.e. 33.33%) invest in less than 3 years.
  • 48. Q.10 which has given more profit to investors? Ans : Investment in Profit in % Lump sum 84 SIP 16 Interpretation: The above Pie chart depicts that 84% of investors have got more profit in Systematic Investment Plan.
  • 50. SWOT ANALYSIS STRENGTH WEAKNESS No access to rural market. No direct link between investors A well known name in and AMC. financial companies. Wide experience in this field. Dedicated employees. Tie up with many financial institutions. Ever growing distribution network. Good infrastructure. Experienced fund manager. Easy access to branch. Opportunities THREATS Positive outlook of People Highly volatile and uncertain toward mutual funds. market. Untapped market. Large number of financial giants present in this market
  • 52. Conclusion: Findings: Our findings during the training with State Bank of India (MF), Udaipur was good on the following grounds:- State Bank is a top ranked company listed with NSDL and CDSL; provide trading through both NSE and BSE. Sis providing software to their prospective sub brokers and revisers. Cheque updating in 15 minutes and the credit limit up to 10 times. There are some more points :- Mutual fund advisors give emphasis on mutual funds than other investment options. The awareness level of investor is low as advisors are interested in dealing in mutual funds. Very less advisors are knowing about services provided by State Bank of India (Mutual Fund) Mutual funds have given a new direction to the flow of personal saving and enable small and medium investors in remote rural and semi urban areas to reap the benefits of the stock market investments. Indian mutual funds are thus playing a very important role in allocation of scarce resources in the emerging economy.
  • 54. RECOMMENDATION AND SUGGESTIONS Though the State Bank of India have a very good ascribed plan with exclusive band of opportunities but as nothing is free from the hurdles therefore there are few shortcomings which I felt makes SBI fail to achieve its target : There is high potential market for mutual fund advisors in Udaipur city but this market needs to be explored as investors are still hesitated to invest their money in mutual fund. In Udaipur investors have inadequate knowledge about mutual fund, so proper marketing of various schemes is required. Company should arrange more and more seminars on mutual funds. Awareness of mutual fund services among the investors are very low so Asset Management Company needs proper marketing of their all services by advertising , distribution of pamphlet , arranging seminars etc. Most advisors are not interested in dealing of mutual funds because they get very low commission. Company should also provide knowledge about the growth rate and expected growth rate of mutual fund industry in India. Most people are aware of Life Insurance , NSC and PPF for tax saving so company should market various tax saving scheme of mutual fund and their benefits.
  • 56. QUESTIONNAIRE (Hello, I am Chanchal Salvi. I need your spare time to fill up the questionnaire, as this is the part of my Summer Internship Training under MBA curriculum) NAME: ______________________________________ __________________ AGE 0-18_____ 18-36_____ 36-54_____ 54-72______ 72 ABOVE______ GENDER: Male Female OCCUPATION: Businessman [ ] Pvt. Employee [ ] Govt. Employee [ ] Professional [ ] Student [ ] other (specify):________ CONTACT NO: __________________________________ Q1. In which of these Financial Instruments do you invest into? Mutual Funds [ ] Bonds [ ] Derivatives [ ] Online trading [ ] Q2 .By structure in which type of schemes did you invested? Open Ended Fund [ ] Close Ended Fund [ ] Interval Schemes [ ] Q3.By investment objective in which type of schemes have you invested? Growth Schemes [ ] Income Schemes [ ] Balanced Schemes [ ]
  • 57. Q4.In which type of funds you want to invest? Tax Saver Funds [ ] Index Funds [ ] Sactorial Funds [ ] Q5. Did you repeat your investment after your initial investments? Yes [ ] No [ ] Q6. What percentage of your earnings do you invest in Mutual Funds? Up to 10% Up to 25% Up to 50% Above 50% Q7. In which you have invested? SIP [ ] Lump Sum [ ] Both [ ] Q8. What is your allocation criterion? <1000b [ ] 1000-3000 [ ] 3000-5000 [ ] >5000b [ ] Q9. For what time period you have invested? <= 1 yr. [ ] <= 2 yr. [ ] <= 3 yr. [ ] <= 4 yr. [ ] <= 5 yr. [ ] Q10. Which has given you more profit? SIP [ ] Lump Sum [ ]
  • 59. Bibliography 1. Internet 2. Magazines and journal of the company 3. Book of financial Management 4. Website:- www.sbimf.com www.amfi.coms www.moneycontrol.com www.valueresearch.com www.google.com www.mutaulfundsindia.com www.investopedia.com