A Project Report Presentation On *SBI Mutual Fund*

A Project Report Presentation
On “
SBI Mutual Fund”
Presented by
Master In Business Administration
-College Name
What is Mutual Funds?
Mutual Fund is…
A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal.
Anybody with an investible surplus of as little as a few thousand
rupees can invest in Mutual Funds.
These investors buy units of a particular Mutual Fund scheme that
has a defined investment objective and strategy.
The money collected is invested by the fund manager in different
types of securities. These could range from shares to debentures to
money market instruments, depending upon the scheme’s stated
The income earned through these investments and the capital
appreciation realized by the scheme are shared by its unit holders in
proportion to the number of units owned by them.
Flow Chart of Mutual Fund..
About SBI Mutual Fund..
SBI Mutual Fund is one of the best and the
top mutual fund investment company
among mutual funds companies in India.
SBI mutual fund offers variety of funds
Advantage of Mutual Funds
Portfolio Diversification
 Professionally Management
 Diversification of Risk
 Wide Choice to Investor for MF
 Liquidity
 Convenience & flexibility
 Transparency
Disadvantage of Mutual Fund
No Control Over Cost
 Redemption Charges if Withdrawn
 No Standard Portfolios
 No Guarantee of Returns
 Subject to Market Risk
Types Of Mutual Fund
Type of
Mutual Fund
Open Ended
Growth Funds
Industry Specific
Close Ended
Income Funds
Interval Funds
Balanced Funds
Money Market
Types of Mutual Funds SBI MF Serve
Open-end Fund
• Available for sale and repurchase at all times based on the net asset value
(NAV) per unit.
Unit capital of the fund is not fixed but variable.
Fund size and its total investment go up if more new subscriptions come
in than redemptions and vice-versa.
Closed-end Fund
One time sale of fixed number of units.
Investors are not allowed to buy or redeem the units directly from the
funds. Some funds offer repurchase after a fixed period. For example, UTI
MIP offers a repurchase after 3 years.
Listed on stock exchange and investors can buy or sell units through the
Units maybe traded at a discount or premium to NAV based on investor’s
perception about the funds future performance and other market factors.
Mutual Fund Types
Money Market Funds/Cash Funds
Invest in securities of short term nature I.e. less than one year
Invest in Treasury bills issued by government, Certificates of
deposit issued by banks, Commercial Paper issued companies and
inter-bank call money.
Aim to provide easy liquidity, preservation of capital and moderate
Gilt Funds
Invest in Gilts which are government securities with medium to
long term maturities, typically over one year.
Gilt funds invest in government paper called dated securities.
Virtually zero risk of default as it is backed by the Government.
It is most sensitive to market interest rates.The price falls when
the interest rates goes up and vice-versa.
Debt Funds
Debt Funds/Income Funds
Invest in debt instruments issued not only by
government, but also by private companies, banks and
financial institutions and other entities such as
infrastructure companies/utilities.
Target low risk and stable income for the investor.
Have higher price fluctuation as compared to money
market funds due to interest rate fluctuation.
Have a higher risk of default by borrowers as
compared to Gilt funds.
Debt funds can be categorized further based on
their risk profiles.
Carry both credit risk and interest rate risks.
Equity Funds
Invest a major portion of their corpus in equity
shares issued by companies, acquired directly in initial
public offering or through secondary market and keep
a part in cash to take care of redemptions.
Risk is higher than debt funds but offer very high
growth potential for the capital.
Equity funds can be further categorized based on
their investment strategy.
Equity funds must have a long-term objective.
Hybrid Funds
Balanced Funds:
• Has a portfolio comprising of debt instruments,
convertible securities, preference and equity
• Almost equal proportion of debt/money market
securities and equities. Normally funds maintain a
Equity-Debt ratio of 55:45 or 60:40.
• Objective is to gain income, moderate capital
appreciation and preservation of capital.
• Ideal for investors with a conservative and longterm orientation.
Probability of Returns
SBI MF Growth from 2006-2012
After studying & analyzing different mutual
fund schemes the following conclusions can
be made:
 Diversified stock portfolios have offered
superior long term inflation protection
 Portfolio managers have done a fairly good
job in generating positive returns
 Those who want to eliminate the risk
element should invest in MF
 The Performance of SBIMF is good, and
there is more prospect chances.

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