SUMMER TRAINING REPORT

CONDUCTED AT
SBI MUTUAL FUND PVT. LTD
A PROJECT REPORT ON STUDY OF SBI MUTUAL FUND

SUBMITED TO

INSTITUTE OF MANAGEMENT STUDIES

AND RESEARCH, M D UNIVERSITY ROHTAK
in partial fulfilment of the requirement for the award of degree
of Master of Business Administration
2010-2011
Submitted by:
ISHAN MIGLANI

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 Declaration

I hereby declare that this Project Report entitled “STUDY OF SBI MUTUAL FUND ” in
SBI Mutual Fund submitted in the partial fulfillment of the requirement of Master of Business
Administration (MBA) Institute Of Management Studies And Resaerch, Rohtak is based on
primary & secondary data found by me in various departments, books, magazines and websites
& Collected by me in under guidance of Mr. Abhishek Singh, SBI MF.

ISHAN MIGLANI

DATE:

PLACE: DELHI

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 ACKNOWLEDGEMENT

In pursuit of an MBA degree, summer internship is a critical component of the entire process.
‘SBI FUNDS MANAGEMENT PVT. LTD.’ has given me the opportunity to gain
invaluable experience under the guidance of Mr. Kapil Mallik (Sales Manager). Their
continuous support and valuable in hand experience provided me with the conceptual
understanding and practical approach needed to work efficiently for this project. The entire
SBI Mutual Fund’s staff is praiseworthy.

I would like to pay my regards and sincere thanks to my in charge Mr. Abhishek Singh for
Stimulating suggestions and encouragement helped me in all the time of my internship.

Last but not the least; I also would like to thank the entire staff of SBI Mutual Fund and all
my friends and colleagues who helped whenever I faced any difficult situation.

I hope this report, reflecting my learning in the past Eight weeks, is as beneficial to the
organization as it had been to me.

Again, I sincerely thank all of them.

- ISHAN MIGLANI

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 Preface

A mutual fund is a pool of money that is managed on behalf of investors by a professional money
manager.

The manager uses the money to buy stocks, bonds or other securities according to specific
investment objectives that have been established for the fund. In return for putting money into
the fund, investors receive either units or shares that represent their proportional share of the pool
of fund assets.

In return for administering the fund and managing its investment portfolio, the fund manager
charges fees based on the value of the fund's assets.

Every mutual fund is managed by a fund manager, who using his investment management skills
and necessary research works ensures much better return than what an investor can manage on
his own. The capital appreciation and other incomes earned from these investments are passed on
to the investor (also known as unit holders) in proportion of the number of units they own. Every
Asset Management Company (AMC) sells its product with the help of distributor .The distributor
gets the fixed commission in return. Each Asset Management Company adopts different ways to
promote their mutual fund so that they can attract more and more money.

This project focuses on comparing the equity schemes of SBI Mutual Fund with the other top
mutual fund houses with respect to their performance, rankings, returns, assets under
management, risk. The project also focuses on the core basic of mutual funds, their types, and
history and functioning. Also it covers my experience of dealing with customers.

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 Table of Contents

Title Page

Acknowledgement

Declaration

Preface

Chapter – 1 Introduction

Chapter – 2 Concept of Mutual Fund

Chapter – 3 Company Profile – SBI Mutual Fund

Chapter – 4 Performance Measures of Mutual Fund

Chapter – 5 Data Analysis and Interpretation

Chapter – 6 Suggestions and Recommendations

Bibliography

Annexure

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 LIST OF TABLE
Table Page no.
1.2 40

3 41

4 42

5 44

6-7 45

8 46

9 47

10 49

11 50

12 51

13 52

14 54

15 55

16 56

17 57

18 59

19 61

20 62

21 64

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 LIST OF FIGURE
Figure Page no.
1 41

2 42

3 43

4 46

5 47

6 48

7 51

8 52

9 53

10 56

11 57

12 58

13 61

14 62

15 63

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Chapter – 1 Introduction
1.1 Executive summary
The project covers an over view of the MUTUAL FUND industry. During April 2009, the
average AUM of the Indian mutual fund industry grew by 11.76% and stood at Rs.5,51,300
crores. The average AUM of SBI Mutual Fund, during the month, grew 17.03% to Rs.30,875
crores. This means that people in India are getting their focus shifted towards investing in a way
which is safe as well as providing returns.

In this project we have covered the “comparison of top equity schemes of SBI MF” with
various other mutual fund houses. We have compared their performance, returns and risks using
various statistical tools.

Various factors which affect the decision of investor while investing in mutual fund have also
been discussed in the project. By the use of various statistical tools it has been find out that past
return is the most important factor considered by the investors’ while investing in the mutual
fund scheme.

In this project we have also discussed about the customers’ awareness about mutual fund and its
related terminology. A survey was conducted through a questionnaire to know about knowledge
of customers’ regarding various investment options, their preference and about mutual fund.

During my training I went to SBI- Delhi University branch and tried to convince customers to
invest in mutual fund and a contact was maintained. The database helps SBI Mutual Fund to find
new clients and expand its business. This gives SBI MF monetary benefits. Also, dealing with
customers and entertaining their queries.

1.2 Objectives
 To project Mutual Fund as the ‘productive avenue’ for investing activities.

 To show the wide range of investment options available in Mutual Funds by explaining
its various schemes.

 To know about the performance of SBI Mutual fund schemes and comparing it with is
competitors.

 To help an investor make a right choice of investment, while considering the inherent risk
factors

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1.3 Methodology
TYPE OF RESEARCH

This project is descriptive research.

DATA SOURCES

Information has been gathered through two sources, they are:

1. Secondary sources: Collection of data from internet and books

2. Primary sources: Monthly fact sheets of different fund houses.

1.4 Need
The study is basically made to analyze the various open-ended equity schemes of different Asset
Management Companies to highlight the diversity of investment that Mutual Fund offer. Thus,
through the study one would understand how a common man could fruitfully convert a pittance
into great penny by wisely investing into the right scheme according to his risk taking abilities.
Mutual Funds schemes are managed by respective asset managed companies sponsored by
financial institutions, banks, private companies or international firms. A Mutual Fund is the ideal
investment vehicle for today’s complex and modern financial scenario.

1.5 Scope
The study here has been limited to compare open-ended equity schemes of SBI Mutual Fund
with different Asset Management Companies namely Reliance Mutual Fund, HDFC Mutual
Fund, ICIC Prudential Mutual Fund, and UTI Mutual Fund. Each scheme is analyzed according
to its performance against the other, based on factors like Sharpe’s Ratio, , standard deviation, b
(Beta) Co-efficient, Returns.

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 Chapter – 2 Introduction of Mutual Fund
2.1 Concept of Mutual Fund
A mutual fund is a financial intermediary that allows a group of investors to pool their money
together with a predetermined investment objective. The mutual fund will have a fund manager
who is responsible for investing the pooled money into specific securities.

A mutual fund is a vehicle to pool money from investors, with a promise that the money would
be invested in a particular manner, by professional managers who are expected to honour the
promise. The idea behind a mutual fund is that individual investors generally lack the time,
inclination or the skills to manage their own investments. Thus, mutual fund hires professional
managers to manage the investments for the benefit of their investors in return for a management
fee.

The organization that manages the investment is the Asset Management Company (AMC).
Employees of the AMC who perform this role of managing investments are the fund managers.
In India mutual funds are governed by the regulations of Securities and Exchange Board of India
(SEBI).

Mutual funds are one of the best investments ever created because they are very cost efficient
and very easy to invest in (you don't have to figure out which stocks or bonds to buy). By
pooling money together in a mutual fund, investors can purchase stocks or bonds with much
lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual
funds is diversification.

The flow chart below describes broadly the working of a Mutual Fund.

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ACCORDING TO AMFI (ASSOCIATION OF MUTUAL FUND OF INDIA) :

A Mutual Fund is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such as
shares, debentures and other securities. The income earned through these investments and the
capital appreciation realized is shared by its unit holders in proportion to the number of units
owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a relatively
low cost.

Organization of Mutual Fund

A mutual fund is set up in the form of a trust, which has sponsor, trustees,
asset management company (AMC) and custodian. The trust is established by a sponsor or
more than one sponsor who is like promoter of a company. The trustees of the mutual fund
hold its property for the benefit of the unit holders. Asset Management Company (AMC)
approved by SEBI manages the funds by making investments in various types of securities.
Custodian, who is registered with SEBI, holds the securities of various schemes of the
fund in its custody. The trustees are vested with the general power of superintendence
and direction over AMC. They monitor the performance and compliance of SEBI
Regulations by the mutual fund.

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Future Scenario

The asset base will continue to grow at an annual rate of about 30 to 35 % over the next few
years as investor’s shift their assets from banks and other traditional avenues. Some of the
older public and private sector players will either close shop or be taken over.
Out of ten public sector players five will sell out, close down or merge with stronger
players in three to four years. In the private sector this trend has already started with two
mergers and one takeover. Here too some of them will down their shutters in the near future
to come.

But this does not mean there is no room for other players. The market will witness a
flurry of new players entering the arena. There will be a large number of offers from
various asset management companies in the time to come. Some big names like Fidelity,
Principal, and Old Mutual etc. are looking at Indian market seriously. One important
reason for it is that most major players already have presence here and hence these big
names would hardly like to get left behind.
The mutual fund industry is awaiting the introduction of derivatives in India as this
would enable it to hedge its risk and this in turn would be reflected in it’s Net Asset
Value (NAV).

SEBI is working out the norms for enabling the existing mutual fund schemes to trade in
derivatives. Importantly, many market players have called on the Regulator to initiate the
process immediately, so that the mutual funds can implement the changes that are required
to trade in Derivatives.

Market Trends
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A lone UTI with just one scheme in 1964 now competes with as many as 400 odd
products and 34 players in the market. In spite of the stiff competition and losing market
share, UTI still remains a formidable force to reckon with.

Last six years have been the most turbulent as well as exiting ones for the industry. New
players have come in, while others have decided to close shop by either selling off or
merging with others. Product innovation is now passé with the game shifting to
performance delivery in fund management as well as service. Those directly associated with
the fund management industry like distributors, registrars and transfer agents, and even the
regulators have become more mature and responsible.

2.2 Characteristics of Mutual Fund

 Investors own the mutual fund.

 Professional managers manage the affairs for a fee.

 The funds are invested in a portfolio of marketable securities, reflecting the investment
objective.

 Value of the portfolio and investors’ holdings, alters with

 Change in market value of investments.

2.3 Objectives of a Mutual Fund

 To provide an opportunity for lower income groups to acquire without much difficulty,
property in the form of shares.

 To cater mainly of the need of individual investors.

 To manage investors’ portfolio that provides regular income, growth, safety, liquidity, tax
advantage, professional management and diversification.

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2.4 Advantages of Mutual Funds
 Professional Management

 Diversification

 Return Potential

 Reduced risk

 Low Costs

 Liquidity

 Transparency

 Tax benefits

 Well regulated

 Selection and timings of investment

2.5 Disadvantages of Mutual Funds

 No control over cost in hands of an investor.
 No tailor-made portfolios.
 Managing a portfolio of funds.
 Difficulty in selecting a suitable fund scheme.

2.6 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 the Reserve Bank. The history of mutual funds in India
can be broadly divided into four distinct phases:

FIRST PHASE – 1964-87-

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was delinked 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.
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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
Canbank 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)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 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.

The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805 crores. The
Unit Trust of India with Rs.44,541 crores of assets under management was way ahead of other
mutual funds.

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 Specified Undertaking of
Unit Trust of India, functioning under an administrator and under the rules framed by
Government of India and does not come under the purview of the Mutual Fund Regulations.
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.

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With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores
of assets under management and with the setting up of a UTI Mutual Fund, conforming to the
SEBI Mutual Fund Regulations, and with recent mergers taking place among different private
sector funds, the mutual fund industry has entered its current phase of consolidation and growth.
As at the end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores
under 421 schemes.

2.7 Fund Structure & Constituents

 In USA Mutual Funds are investment companies.

 In UK, its unit trust or investment trusts.

 In India, there is only unit trust (i.e. trust form).

 They are all under SEBI regulations.

Sponsor

Sponsor is the person who acting alone or in combination with another body corporate
establishes a Mutual Fund. Sponsor must contribute at least 40% of the net worth of the
Investment Managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Fund) Regulations, 1996. The Sponsor is not responsible or
liable for any loss or short fall resulting from the operation of the schemes beyond the initial
contribution made by it towards setting up the Mutual Fund.
There are many entities involved and the diagram below illustrates the organizational set up of a
Mutual Fund:

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Trust
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts
Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.

Trustee
Trustee is usually a company (Corporate body) or a Board of Trustees (body of individuals). The
main responsibility of the trustee is to safeguard the interest of the unit holders and inter alia
ensure that the AMC functions in the interest of investors and in accordance with the securities
and Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust
Deed and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee
are independent directors who are not associated with the sponsor in any manner.

Asset Management Company

AMCs are fund managers Registered with SEBI

 The AMC is also formed as a private limited company.

 Responsible for operational aspects of the MF.

 Investment management agreement with trustees.

 At least 40% of AMC capital must be contributed by the Sponsor.

 Quarterly reporting to Trustees.

 Cannot have any other business interest.

 Independent individuals are appointed as agent.

 AMC of one MF cannot be trustee/AMC of another MF.

 At least half (50%) of the directors of the AMC must be independent.

 Appoints other constituents - Custodian, Registrar & Transfer Agent.

 Distributors – Are appointed by AMC and may act on behalf of different funds.

 An AMC cannot engage in any business other than portfolio advisory and management.

 In merger of two AMCs, SEBI approval and consent of 75% unit holders are required.

 The AMC gets fee for managing the funds according to the mandate of the investors.

 An AMC’s net worth (Share Capital + Reserves & Surplus) should be at least Rs.10
crores at all times.
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  Custodian – Appointed by board of trustees for safe keeping of securities as independent
entity of sponsors.

 Transfer Agents – Issue and redeem units and other related services such as preparation
of transfer documents and updating investor records.

Custodian
The custodian handles the investment back office operations of a mutual fund. It looks after the
receipt and delivery of securities, holding of securities, collection of income, distribution of
dividends, and segregation of assets between schemes. The sponsor of a mutual fund cannot act
as its custodian.

Registrars and transfer agents

The registrars and transfer agents handle investor related services such as issuing units,
redeeming units, sending fact sheets and annual reports, and so on. Some funds handle such
functions in house, while others outsource it to SEBI approved registrars and transfer agents like
karvy and CAMS. The legal structure and organization of mutual funds as laid down by SEBI
guidelines is as follows.

AMC takeover by another sponsor

 SEBI approval required

 Inform the unit holders

Scheme takeover
 SEBI approval required

 Investors should be given option to redeem units in case they do not consent for it.

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Regulators in India

 SEBI - The capital markets regulators also regulates the mutual funds in India. SEBI
requires all mutual funds to be registered with them. SEBI issues guidelines for all
mutual funds operations - investment, accounts, expenses etc.

 RBI as supervisor of banks owned mutual funds - As banks in India came under the
regulatory jurisdiction of RBI, bank owned funds to be under supervision of RBI and
SEBI.

 RBI as supervisor of Money Market Mutual Funds - RBI has supervisory responsibility
over all entities that operate in the money markets. Hence in the past Money Market
Mutual Funds scheme of Mutual funds had to be abide by policies laid down by RBI.

Recently, it has been decided that Money Market Mutual Funds of registered mutual funds will
be regulated by SEBI through SEBI (Mutual Fund) Regulations 1996

2.8 Formation and Regulations

 AMC’s shall have a minimum Net worth of Rs. 5 crores.

 Mutual funds are to be established in the form of trusts under the Indian trusts act and are
to be operated by separate asset management companies (AMC s).

 AMC’s and Trustees of Mutual Funds are to be two separate legal entities and that an
AMC or its affiliate cannot act as a manager in any other fund.

 Mutual funds dealing exclusively with money market instruments are to be regulated by
the Reserve Bank of India.

 Mutual funds dealing primarily in the capital market and also partly money market
instruments are to be regulated by the Securities Exchange Board of India (SEBI).

 All schemes floated by Mutual funds are to be registered with SEBI.

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Schemes
 Mutual funds are allowed to start and operate both closed-end and open-end schemes.

 Each closed-end schemes must have a Minimum corpus (pooling up) of Rs 20 crores.

 Each open-end scheme must have a Minimum corpus of Rs 50 crores.

 In the case of a Closed –End scheme if the Minimum amount of Rs 20 crores or 60% of
the target amount, whichever is higher is not raised then the entire subscription has to be
refunded to the investors

 In the case of an Open-Ended scheme, if the Minimum amount of Rs 50 crores or 60

percent of the targeted amount, whichever is higher, is no raised then the entire
subscription has to be refunded to the investors.

Investment norms:-
 No mutual fund, under all its schemes can own more than five percent of any company’s
paid up capital carrying voting rights.

 No mutual fund, under all its schemes taken together can invest more than 10 percent of
its funds in shares or debentures or other instruments of any single company.

 No mutual fund, under all its schemes taken together can invest more than 15 percent of
its fund in the shares and debentures of any specific industry, except those schemes which
are specifically floated for investment in one or more specified industries in respect to
which a declaration has been made in the offer letter.

 No individual scheme of mutual funds can invest more than five percent of its corpus in
any one company’s share.

 Mutual funds can invest only in transferable securities either in the money or in the
capital market. Privately placed debentures, securitized debt, and other unquoted debt,
and other unquoted debt instruments holding cannot exceed 10 percent in the case of
growth funds and 40 percent in the case of income funds.

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2.9 Distribution
Mutual funds are required to distribute at least 90 percent of their profits annually in any given
year. Besides these, there are guidelines governing the operations of mutual funds in dealing with
shares and also seeking to ensure greater investor protection through detailed disclosure and
reporting by the mutual funds. SEBI has also been granted with powers to oversee the
constitution as well as the operations of mutual funds, including a common advertising code.
Besides, SEBI can impose penalties on Mutual funds after due investigation for their failure to
comply with the guidelines.

2.10 Types of Mutual Funds

I. Closed-end or Open-end
Open-end Funds: An open-end fund is one that has units available for sale and repurchase
at all time. An investor can buy or redeem units from the fund itself at a price based on the Net
Asset Value (NAV) per unit.

Close-end Funds: A close ended fund makes a one-time sale of a fixed number of units. It
does not allow investors to buy or redeem units directly from the funds. However, to provide
liquidity to investors many closed-end funds get themselves listed on stock exchange. Funds do
offer “buy-back of funds/units” thus offering another avenue for liquidity to closed-end fund
investor.

II. Load vs. No Load

Marketing of a new mutual fund scheme involves initial expense. These expenses may be
recovered from the investors in different ways at different times. Three usual ways in which a
fund’s sales expenses may be recovered from the investors are:

1) At the time of investor’s entry into the fund/scheme, by deducting a specific amount from
his initial contribution: front-end or entry load.

2) By charging the fund/scheme with a fixed amount each year, during the stated number of
years: deferred load.

3) At the time of the investor’s exit from the fund/scheme, by deducting a specific amount
from the redemption proceeds payable to the investor: back end or exit load These
charges made by the fund managers to the investors to cover distribution/sales/marketing
expenses are often called “loads”. Funds that charge front-end, back-end or deferred
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 loads are called load funds. Funds that make no such charges or loads for sales expenses
are called no-load funds.

In India, SEBI has defined a “load” as the one-time fee payable by the investor to allow the fund
to meet initial issue expenses including brokers’/agents’/distributors’ commissions, advertising
and marketing expenses. A load fund’s declared NAV does not include load charges.

III. Tax-exempt vs. Non-Tax exempt Funds

Generally, when a fund invests in tax exempt securities, it is called a tax-exempt fund. In India,
after the 1999 Union Government Budget, all of the dividend income received from any of the
mutual funds is tax-free in the hands of the investors. However, funds other than Equity Funds
have to pay a distribution tax, before distributing income to investors. In other words, equity
mutual fund schemes are tax-exempt investment avenues, while other funds are taxable for
distributable income.

Different types of mutual fund

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2.12 Mutual Fund Scheme Types
Once we have reviewed the fund classes, we are ready to discuss more specific fund types. Funds
are generally distinguished from each other by their investment objectives and types of securities
they invest in.

A. Broad Fund Types by Nature of Investments

Mutual funds may invest in equities, bonds or other fixed income securities, or short-term money
market securities. So we have Equity, Bonds and Money Market Funds. All of them invest in
financial assets. But there are funds that invest in physical assets. For example, we may have
Gold or other Precious Metal Funds, or Real Estate Funds.

B. Broad Fund Types by Investment Objective

Investors and hence the mutual funds pursue different objectives while investing. Thus:

Growth Funds invest for medium to long term capital appreciation.

Income Funds invest to generate regular income, and less for capital appreciation.

Value Funds invest in equities that are considered under-valued today, whose value will be
unlocked in the future.

C. Broad Fund Types by Risk Profile

The nature of a fund’s portfolio and its investment objective imply different levels of risk
undertaken. Funds are therefore often grouped in order of risk. Thus, Equity Funds have a greater
risk of capital loss than a Debt Fund that seeks to protect the capital while looking for income.
Money Market Funds are exposed to less risk.

Money Market Funds: Lowest rung in the order of risk level, Money Market Funds
invest in securities of a short-term nature, which generally means securities of less than one-year
maturity.

Gilt Funds: Gilts are government securities with medium to long-term maturities, typically of
over one year (under one-year instruments being money market securities).

Debt Funds (or Income Funds): Next in the order of risk level, we have the general
category Debt Funds. Debt funds invest in debt instruments issued not only by governments, but
also by private companies, banks and financial institutions and other entities such as
infrastructure companies/utilities.

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Diversified Debt Funds: A debt fund that invests in all available types of debt securities,
issued by entities across all industries and sectors is a properly diversified debt fund. A
diversified debt fund is less risky than a narrow-focus fund that invests in debt securities of a
particular sector or industry.

Focused Debt Funds: Some debt funds have a narrow focus, with less diversification in
its investment. Examples include sector, specialized and offshore debt funds. Other examples of
focused funds include those that invest only in Corporate Debentures and Bonds or only in Tax
Free Infrastructure or Municipal Bonds.

High yield Debt Funds: There are funds which seek to obtain higher interest rates by
investing in debt instruments that are considered “below investment grade”. e.g. Junk Bond
Funds.

Assured Return Funds – an Indian Variant: The SEBI permits only those funds
whose sponsors have adequate net-worth to offer assurance of return. For e.g. MIPs. Investors
have some lock-in period.

Fixed Term Plan Series: Another Indian Variant: These are essentially closed-end. These
plans do not generally offer guaranteed returns. This scheme is for short-term investors who
otherwise place money as fixed term bank deposits or inter corporate bonds.

EQUITY FUND: As investors move from Debt Fund category to Equity Funds, they face
increased risk level.
 No guarantee returns

 High potential for growth of capital

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 D. Types of Equity Fund
Aggressive Growth Fund
 Maximum capital appreciation
 Invests in less researched or speculative shares.
 Very volatile & riskier.

Growth Fund
 Growth fund invests in companies whose earnings are expected to rise above average
rate. e.g. Technology Fund
 Capital appreciation in 3 – 5 years

 Less volatile then aggressive growth fund.

Specialty Fund
They invest in companies that meet predefined criteria.
 Sector Funds
 Technology Fund
 Pharmaceutical Fund
 FMCG Fund
 Offshore Funds
 Invest in equities in one or more foreign countries.
 Small-Cap equity Funds

Invest in shares of companies with relative lower market capital.

Diversified Equity Funds: A fund that seeks to invest only in equities, except for a very
small portion in liquid money market securities, bur is not focused on any one or few sectors or
shares, may be termed a diversified equity fund. While exposed to all equity price risks,
diversified equity funds seek to reduce the sector or stock specific risks through diversification.

Equity Linked Savings Schemes: An Indian Variant - Investment in these

schemes entitles the investor to claim an income tax rebate, but usually has a lock-in period
before the end of which funds cannot be withdrawn.

Equity Index Funds: An index fund tracks the performance of a specific stock market
index. The objective is to match the performance of the stock market by tracking an index that
represents the overall market. The funds invest in share that constitute the index and in the same
proportion on the index.

Value Funds: Value Funds try to seek out fundamentally sound companies whose shares are
currently under-prices in the market. Value Funds will add only those shares to their portfolios

Page 25
that are selling at low price-earnings ratios, low market to book value ratios and are undervalued
by other yardsticks. Fund concentrate on future growth prospect having good potential.

Equity Income Funds: There are equity funds that can be designed to give the investor a
high level of current income along with some steady capital appreciation, investing mainly in
shares of companies with high dividend yields.

 Hybrid Funds: Quasi Equity/Quasi Debt: Many mutual funds mix these (money
market, debt and equity) different types of securities in their portfolios. Such funds are
termed “hybrid funds” as they have a dual equity/bond focus.

 Commodity Funds: While all of the debt/equity/money market funds invest in

financial assets, the mutual fund vehicle is suited for investment in any other- for
examples- physical assets.

 Real Estate Funds: Specialized Real Estate Funds would invest in Real Estate
directly, or may fund real estate developers, or lend to them, or buy shares of housing
finance companies or may even buy their securities assets.

2.13 Different modes of receiving the income

earned from Mutual Fund Investments
 Growth Plan: In this plan, dividend is neither declared nor paid out to the
investor but is built into the value of the NAV. In other words, the NAV increases over
time due to such incomes and the investor realizes only the capital appreciation on
redemption of his investment.

 Income Plan: In this plan, dividends are paid-out to the investor. In other words,
the NAV only reflects the capital appreciation or depreciation in market price of the
underlying portfolio.

 Dividend Re-investment Plan: In this case, dividend is declared but not

paid out to the investor, instead, it is reinvested back into the scheme at the then
prevailing NAV. In other words, the investor is given additional units and not cash as
dividend.

Page 26
2.14 Mutual Fund Investing Strategies
 Systematic Investment Plans (SIPs): These are best suited for
young people who have started their careers and need to build their wealth. SIPs entail an
investor to invest a fixed sum of money at regular intervals in the Mutual fund scheme
the investor has chosen, an investor opting for SIP in xyz Mutual Fund scheme will need
to invest a certain sum on money every month/quarter/half-year in the scheme.

 Systematic Withdrawal Plans (SWPs): These plans are best

suited for people nearing retirement. In these plans, an investor invests in a mutual fund
scheme and is allowed to withdraw a fixed sum of money at regular intervals to take care
of his expenses.

 Systematic Transfer Plans (STPs): They allow the investor to

transfer on a periodic basis a specified amount from one scheme to another within the
same fund family – meaning two schemes belonging to the same mutual fund. A transfer
will be treated as redemption of units from the scheme from which the transfer is made.
Such redemption or investment will be at the applicable NAV. This service allows the
investor to manage his investments actively to achieve his objectives. Many funds do not
even charge any transaction fees for his service – an added advantage for the active
investor.

2.15 Risks associated with Mutual Funds

Investing in Mutual Funds, as with any security, does not come without risk. One of the most
basic economic principles is that risk and reward are directly correlated. In other words, the
greater the potential risk the greater the potential return. The types of risk commonly associated
with Mutual Funds are:

 Market Risk: Market risk relates to the market value of a security in the future.
Market prices fluctuate and are susceptible to economic and financial trends, supply and
demand, and many other factors that cannot be precisely predicted or controlled.

 Political Risk: Changes in the tax laws, trade regulations, administered prices, etc
are some of the many political factors that create market risk. Although collectively, as
citizens, we have indirect control through the power of our vote individually, as investors,
we have virtually no control.

Page 27
  Inflation Risk: Interest rate risk relates to future changes in interest rates. For
instance, if an investor invests in a long-term debt Mutual Fund scheme and interest rates
increase, the NAV of the scheme will fall because the scheme will be end up holding debt
offering lower interest rates.

 Business Risk: Business risk is the uncertainty concerning the future existence,
stability, and profitability of the issuer of the security. Business risk is inherent in all
business ventures. The future financial stability of a company cannot be predicted or
guaranteed, nor can the price of its securities. Adverse changes in business circumstances
will reduce the market price of the company’s equity resulting in proportionate fall in the
NAV of the Mutual Fund scheme, which has invested in the equity of such a company.

 Economic Risk: Economic risk involves uncertainty in the economy, which, in

turn, can have an adverse effect on a company’s business. For instance, if monsoons
fail in a year, equity stocks of agriculture-based companies will fall and NAVs of Mutual
Funds, which have invested in such stocks, will fall proportionatel

Chapter- 3 Company Profile

3.1 Introduction About SBI Mutual Fund
Company Overview
SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record
in judicious investments and consistent wealth creation. With over twenty years of experience in
asset management, the company has grown immensely since its establishment. SBI Mutual
Funds offer innovative mutual fund products to its wide pool of customers and its products are
available across India. SBI Mutual Fund offers different kinds of products like growth based
products; income based products and balanced funds. It has a wide portfolio of products that
meet the requirements of different types of investors.

3.2 Vision of the company

“To be a globally respected organization whose core values lie in the integrity with which we
provide expert investment solution to our investors.”

SBI Group

Page 28
SBI Group aims to become a corporate entity that provides a variety of one-stop financial
services over the Internet. The fund traces its lineage to SBI - India’s largest banking enterprise.
The institution has grown immensely since its inception and today it is India's largest bank,
patronized by over 80% of the top corporate houses of the country.

SBI Mutual Fund

Proven Skills in Wealth Generation .

Exploiting expertise, compounding growth.
SBI Fund Management Private Limited, Investment managers for SBI Mutual Fund, is a joint
venture between State Bank of India and Société Générale Asset Management – France, is
amongst the leading Asset Management Companies in India.

SBI Mutual Fund has grown approximately 3.3 times against the industry’s growth of
approximately 2.6 times in the last 3 years. This can be attributed to the consistent performance
of the fund house in generating value for its investors.

In twenty years of operation, SBI Mutual Fund has launched 38 schemes and successfully
redeemed 15 of them. In the process it has rewarded its investors handsomely with consistent
returns.

A total of over 5.5 million investors have reposed their faith in the wealth generation expertise of
the Mutual Fund. Schemes of the Mutual Fund have consistently outperformed benchmark
indices and have emerged as the preferred investment for millions of investors and High Net
Worth Investors’ (HNI’s).

Today, the fund manages over Rs. 30.875.02 as at end of April, 2009 and has a diverse profile of
investors actively parking their investments across 36 active schemes.

The fund serves this vast family of investors by reaching out them through 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.

3.3 Functions
The purpose of SBI mutual fund is to build the wealth of the investors. This is done through the
different schemes that the bank comes up with. The SBI mutual fund has the same purposes as

Page 29
any other mutual fund. The idea is to grow the wealth of investors, in a safe and controlled
environment. SBI mutual fund has been one of the best mutual funds to bring this about for
investors, and almost always performs on a higher level than other mutual funds.

Year-Wise Milestone of SBI MF Since Inception

29 June 1987 SBI Mutual Fund was the first Non-UTI Mutual Fund which was
started.
Jan 1991 Large cap fund Magnun Equity fund was launched. The portfolio
comprises of selected blue chip stocks and a more aggressive fund.
Mar 1993 SBI Mgnum Tax Gain Scheme was launched, a close-ended ELSS
scheme.
1994 Once the chief of SBI Mutual Fund PG Kakodkar established AMFI with
SEBI and mutual fund industry.
April 1997 Magnum Monthly Income Scheme 1997 was launched for 45 days and
closed on 31 may collected Rs.52 crores in the time being.
May 1997 SBI Mutual Fund was keen to tie-up with Asian Development Bank but
nothing was finalized.
June 1997 Magnum Monthly Income Scheme 1997 was floated which collected Rs
52 crores.
Dec 1997 SBI Mutual Fund converted Magnum Multiplier Scheme 1990 into an
open-ended fund.
May 1998 SBI MF announces 15% dividend on Magnum Multiplier Plus Scheme
1993 This was the first time dividend was announced since launch.
Nov 1998 SBI MF launched Magnum Liquibond.
Mar 1999 SBI MF launches Magnum InstaCash Fund.
June 1999 SBI MF applied to SEBI to convert Magnum Global Fund 1994 into open-
ended. It announced dividend on 5 schemes.
July 1999 SBI MF Launches Magnum Sector Funds Umbrella fund.
Dec 2000 Magnum Gilt Scheme was launched.
July 2001 SBI MF tied up with post offices.
Jan 2003 State Bank of Mysore tied up with SBI MF for distribution.
Oct 2003 SBI MF announced 33% dividend on Contra Fund.
Nov 2003 SEBI cleared SBI MF to launch NRI plans.
Oct 2004 SBI MF launches MSFU Emerging Business Fund.
Feb 2005 SBI MF launches Magnum Midcap Fund.
Aug 2005 SBI MF launches Magnum Comma Fund.
Page 30
May 2007 SBI Infrastructure Series I was launched on 11may to 8 June.
Aug 2007 SBI MF tied up with Dena bank to enhance distribution.
Feb 2008 SEBI announced no entry load on direct investments.
Dec 2008 Mr. Navneet Munot joined SBI MF as Chief Investment Officer.
Jan 2009 SBI MF slipped to 7th rank in terms of equity AUM. Franklin Templton
replaces SBI MF at 6th rank.
April 2009 SBI MF launches micro SIP at Rs.100 per month.
April 2009 SBI MF celebrates Akshaya Trithiya week.
May 2009 ICRA retains highest rating for debt schemes of SBI MF.

FACT FILE

Incorporated 29 th June, 1987

Ownership Public
Ownership Pattern Foreign – 37%, Domestic – 63%
Sponsor State bank of India, Societe Generale Asset
Management
Asset Management Company SBI Funds Management Pvt. Ltd.
Trustee SBI Mutual Fund Trustee Company Pvt.
Ltd.
Registrar Computer Age Management Services Ltd.
Total assets(Rs. Crores) 34,061.04 as on 30/6/2009
Equity Funds (Open End) 14
Debt Funds (Open End) 11
Short term debt(Open End) 12
Hybrid Funds(Open End) 4
Closed-end Funds 17
Chief Executive Mr.Achal Gupta
Chief Investment Officer Mr.Navneet Munot
Chief Marketing Officer Mr. R.S.Srinivas Jain
Corporate Office 191, Maker Tower 'E' 19th Floor, Cuffe
Parade, Mumbai – 400005
Website www.sbimf.com
Email partnerforlife@sbimf.com

Page 31
Page 32
 Assets Under Management (AUM) as at the end of JUN-2009 (Rs in Lakhs)

Average AUM For The Month

Excluding Fund of
Sr No Mutual Fund Name
Funds - Domestic but Fund Of Funds -
including Fund of Domestic
Funds - Overseas

1 AIG Global Investment Group Mutual Fund 154787.95 0

2 Baroda Pioneer Mutual Fund 372337.92 0

3 Benchmark Mutual Fund 111985.24 0

4 Bharti AXA Mutual Fund 24321.91 0

5 Birla Sun Life Mutual Fund 5628286.60 1826.22

6 Canara Robeco Mutual Fund 762400.12 0

7 DBS Chola Mutual Fund 250850.60 0

8 Deutsche Mutual Fund 1361563.21 0

9 DSP BlackRock Mutual Fund 1739634.99 0

10 Edelweiss Mutual Fund 4478.89 0

11 Escorts Mutual Fund 20144.95 0

12 Fidelity Mutual Fund 937537.91 3589.23

13 Fortis Mutual Fund 802767.54 9234.94

14 Franklin Templeton Mutual Fund 2547332.11 18514.32

15 Goldman Sachs Mutual Fund N/A N/A

16 HDFC Mutual Fund 7819790.24 0

17 HSBC Mutual Fund 966088.39 0

18 ICICI Prudential Mutual Fund 7016946.33 2796.66

19 IDFC Mutual Fund 2167628.96 1254.72

Page 33
20 ING Mutual Fund 239677.15 19046.64

21 JM Financial Mutual Fund 777085.93 0

 22 JPMorgan Mutual Fund 376635.88 0

23 Kotak Mahindra Mutual Fund 3083302.28 16297.69

24 LIC Mutual Fund 3241492.12 0

25 Mirae Asset Mutual Fund 23788.46 0

26 Morgan Stanley Mutual Fund 220835.95 0

27 PRINCIPAL Mutual Fund 869538.09 0

28 Quantum Mutual Fund 6663.52 0

Chapter
29
– 4 Performance
Reliance Mutual Fund
Measures
10833236.33 0
of
Mutual
30 Funds
Religare AEGON Mutual Fund N/A N/A

31 Fund industry
Mutual Religare
today,Mutual Fund30 players and more
with about 1003125.02 0
than six hundred schemes, is one of
the most preferred investment avenues in India. However, with a plethora of schemes to choose
32 the retail investor
from, Saharafaces
Mutual Fund in selecting funds.
problems 21253.53 0
Factors such as investment strategy
and management style are qualitative, but the funds record is an important indicator too.
33 SBI Mutual Fund 3406103.72 0
Though past performance alone cannot be indicative of future performance, it is, frankly, the
only34quantitative way
Shinsei Mutualhow
to judge Fund N/A Therefore, there
good a fund is at present. N/A is a need to
correctly assess the past performance of different Mutual Funds. Worldwide, good Mutual Fund
35 Sundaram BNP Paribas Mutual Fund 1331465.05 0
companies over are known by their AMC’s and this fame is directly linked to their superior stock
selection
36 skills. For Mutual FundsFund
Tata Mutual to grow, AMC’s must2122280.89
be held accountable for0 their selection
of stocks. In other words, there must be some performance indicator that will reveal the quality
of stock
37 selection ofTaurus
variousMutual
AMC’s. Fund 56126.70 0

Return
38 alone shouldUTInot Mutual
be considered
Fund as the basis of6797818.56
measurement of the performance
0 of a
Mutual Fund scheme, it should also include the risk taken by the fund manager because different
funds will have different
GRAND levels
TOTAL 67099313.04
of risk attached to them. Risk associated72560.42
with a fund, in a
general, can be defined as Variability or fluctuations in the returns generated by it. The higher the
fluctuations in the returns of a fund during a given period, higher will be the risk associated with
it. These fluctuations in the returns generated by a fund are resultant of two guiding forces. First,
general market fluctuations, which affect all the securities, present in the market, called Market
risk or Systematic risk and second, fluctuations due to specific securities present in the portfolio
of the fund, called Unsystematic risk. The Total Risk of a given fund is sum of these two and is
measured in terms of standard deviation of returns of the fund.

Systematic risk, on the other hand, is measured in terms of Beta, which represents fluctuations in
the NAV of the fund vis-à-vis market. The more responsive the NAV of a Mutual Fund is to the
changes in the market; higher will be its beta. Beta is calculated by relating the returns on a
Mutual Fund with the returns in the market. While Unsystematic risk can be diversified through
investments in a number of instruments, systematic risk cannot. By using the risk return
relationship, we try to assess the competitive strength of the Mutual Funds one another in a better
way. In order to determine the risk-adjusted returns of investment portfolios, several eminent
Page 34
authors have worked since 1960s to develop composite performance indices to evaluate a
portfolio by comparing alternative portfolios within a particular risk class.

4.1 The Most Important and Widely Used Measures

of Performance are:
 The Treynor’Measure

 The Sharpe Measure

1. The Treynor Measure:-

Developed by Jack Treynor, this performance measure evaluates funds on the basis of Treynor's
Index.

This Index is a ratio of return generated by the fund over and above risk free rate of return
(generally taken to be the return on securities backed by the government, as there is no credit risk
associated), during a given period and systematic risk associated with it (beta). Symbolically, it
can be represented as:

Treynor's Index (Ti) = (Ri - Rf)/Bi.

Where,
Ri represents return on fund,
Rf is risk free rate of return, and
Bi is beta of the fund.
All risk-averse investors would like to maximize this value. While a high and positive Treynor's
Index shows a superior risk-adjusted performance of a fund, a low and negative Treynor's Index
is an indication of unfavorable performance.

2. The Sharpe Measure :-

In this model, performance of a fund is evaluated on the basis of Sharpe Ratio, which is a ratio of
returns generated by the fund over and above risk free rate of return and the total risk associated
with it.

According to Sharpe, it is the total risk of the fund that the investors are concerned about. So, the
model evaluates funds on the basis of reward per unit of total risk. Symbolically, it can be written
as:

Sharpe Index (Si) = (Ri - Rf)/Si

Page 35
 Where,
Si is standard deviation of the fund,
Ri represents return on fund, and Rf is risk free rate of return.
While a high and positive Sharpe Ratio shows a superior risk-adjusted performance of a fund, a
low and negative Sharpe Ratio is an indication of unfavorable performance.

Comparison of Sharpe and Treynor

Sharpe and Treynor measures are similar in a way, since they both divide the risk premium by a
numerical risk measure. The total risk is appropriate when we are evaluating the risk return
relationship for well-diversified portfolios. On the other hand, the systematic risk is the relevant
measure of risk when we are evaluating less than fully diversified portfolios or individual stocks.
For a well-diversified portfolio the total risk is equal to systematic risk. Rankings based on total
risk (Sharpe measure) and systematic risk (Treynor measure) should be identical for a well-
diversified portfolio, as the total risk is reduced to systematic risk. Therefore, a poorly diversified
fund that ranks higher on Treynor measure, compared with another fund that is highly
diversified, will rank lower on Sharpe Measure.

3. Measurement of risk
I. Beta Coefficient Measure Of Risk :

Beta relates a fund’s return with a market index. It basically measures the sensitivity of funds
return to changes in market index.
If Beta = 1, Fund moves with the market i.e. Passive fund
If Beta < 1, Fund is less volatile than the market i. e Defensive Fund
If Beta > 1, Funds will give higher returns when market rises & higher losses when market
falls i.e. Aggressive Fund.

II. Standard Deviation Measure Of Risk :

It is a statistical concept, which measures volatility. It measures the fluctuations of fund’s returns
around a mean level. Basically it gives you an idea of how volatile your earnings are. It is
broader concept than BETA. It also helps in measuring total risk and not just the market risk of
the portfolio.

III. Ex –Marks or R-squared Measure Of Risk :

Ex –Marks represents co relation with markets. Higher the Ex-marks lower the risk of the fund
because a fund with higher Ex-marks is better diversified than a fund with lower Ex-marks.

Page 36
Chapter – 5 Data Analysis and
Interpretation
Comparison of SBI MFs’ Equity Schemes with its Competitors.

5.1 Magnum MidCap Fund

INVESTMENT OBJECTIVE: To provide investors with opportunities for long-term growth in
capital along with the liquidity of an open-ended scheme by investing predominantly in a well
diversified basket of equity stocks of Midcap Companies.

Midcap Companies are those companies whose market capitalization at the time of investment is
lower than the last stock in the S&P CNX NIFTY Index less than 20% (upper range) and above
Rs. 200 crores.

FUND HIGHLIGHTS CURRENT STATS & PROFILE

TABLE-1 TABLE-2

Fund type Open-ended Growth Fund

Date of Inception 15th April, 2005
Fund manager Mr.R.Srinivasan
Benchmark CNX MID-CAP 200 Index
Minimum Investment Rs.5000
Fund category Equity- Diversified
Total stocks 36

Page 37
 52- Week High 24.04(08/01/10)
52- Week Low 17.75 (10/08/09)
AUM (Rs. Cr.) 324 (30/6/10)
Risk Grade High
Return Grade Below
Avg Mkt 2100.83
Cap(Rs.Cr.)
Expense ratio 2.50
LAST DIVIDENDS Option NAV(RS.)
NAV as Growth 23.33 on
2008 2007 2006 2005
NA 35% 25% NA Dividend 16.29
30/07/2010

Exit Load

For exit within one year from the date of allotment 1%

For exit after one year from the date of allotment Nil

Entry load

N.A

SIP

Rs. 500 per month - 12 months

Rs. 1000 per month – 6 months

Rs. 1500 per quarter – 4 quarters.

PORTFOLIO SUMMARY - TOP 10 HOLDINGS

Table-3

Stock Name Sector (%) Of Total AUM

GMDC Energy 5.62%
Century Textiles & Ind. Ltd. Diversified 5.45%
Kesoram Industries Ltd. Diversified 4.71%
M & M Financial Services Ltd. Financial 4.48%
Orbit Corporation Ltd. Construction 4.32%
Tech Mahindra Ltd. Technology 4.31%
Hindustan Construction Co. Ltd. Construction 4.07%
Suzlon Energy Ltd. Engineering 4.04%
PRAJ Industries Ltd. Engineering 3.91%

Page 38
Jet Airways Ltd. (India) Services 3.66%
Total 44.57%

Figure-1

FUND STYLE
Investment style
Growth Blend Value Composition
Large (%)
Equity 94.62
Medium
Debt 0.00
Capitalization
Cash 5.38

Page 39
 SECTORIAL BREAKDOWN Figure-2

IN

PERFORMANCE OF MAGNUM MIDCAP FUND (Table-4)

(Rm-Rf) (Rp-Rf) (X-X bar)

YEAR Rp Rm Rf X2 XY D2
X Y D
Last 1
(6.95) (3.90) 7 (10.90) (13.95) 118.81 152.06 (2.66) 7.08
month
Last 3
66.63 35.43 7 28.43 59.63 808.26 1695.28 20.19 407.64
months
Last 1
(9.36) 6.24 7 (0.76) (16.36) 0.58 12.43 (7.48) 55.95
year
Since
inception 13.96 23.12 7 16.17 6.96 261.47 112.54 7.93 62.88
31/3/93

TOTAL 32.94 36.28 1189.12 1972.31 17.98 533.55

Where ,
Rp – Portfolio Return

Rm – Market Return – Fund’s Benchmark - S&P CNX NIFTY

Rf – Risk free rate of return

Page 40
 MAGNUM MIDCAP FUND (Fig-3)

IN

Interpretation:
Last 1 month: It reveals that Magnum Midcap Fund has given negative returns of 6.95% as
compared to fund’s Benchmark returns are negative 3.9%. The risk free rate of
return is common for the whole period ie. 7%.

Last 3 months: It reveals that Magnum Midcap Returns are 66.63% as compared to its
Benchmark returns are 35.43%. The risk free rate of return is 7%.

Last 1 Year: It reveals that Magnum Midcap has given negative returns of 9.36% as
compared to its Benchmark returns are 6.24%. The risk free rate of return is
7%.

Since Inception: It reveals that Magnum Midcap returns are 13.96% as compared to fund’s
Benchmark returns are 23.12%. The risk free rate of return is 7%.

RISK ANALYSIS – VOLATILITY MEASUREMENTS(Table-5)

SHARPE PORTFOLIO STANDARD

MEAN BETA
RATIO TURNOVER DEVIATION

Page 41
 Magnum
8.22 0.06 2.34 1.32 50.02
Midcap Fund
ICICI
Prudential
8.22 0.13 0.46 1.10 42.53
Emerging Star
Fund
HDFC Midcap
Opportunities 8.22 3.28 0.46 1.09 15.14
Fund
Reliance Long
Term Equity 8.22 0.33 0.22 0.90 34.42
Fund

UTI Midcap
8.22 2.82 0.34 1.25 15.14
Fund

Interpretation:

 Since the Sharpe Ratio is highest for ICICI Prudential Emerging Star Fund at 3.56 among
the category of Midcap funds, it gives better reward for the risk taken.
 Since the Treynor Ratio is highest for both ICICI Prudential Emerging Star Fund and
HDFC Midcap Opportunities Fund at 0.46, it offers a superior risk-reward equation for
the investors.

 Since beta for Reliance Long Term Equity Fund and Magnum Midcap Fund is less than
1, it is an indication of a conservative stock or fund. Thus, these funds move lesser than
the market.

 Beta for ICICI Prudential Emerging Star Fund, HDFC Midcap Opportunities Fund and
UTI Midcap Fund is more than 1 signifies a fund that is more aggressive than the market.

 Standard Deviation which measures the total risk namely, systematic risk plus non-
systematic risk are 15.14. It compares the sensitivity of value of a security with the
movements in the market.

5.2 Magnum TaxGain Scheme

INVESTMENT OBJECTIVE- The prime objective of this scheme is to deliver the benefit of
investment in a portfolio of equity shares, while offering deduction on such investments made in
Page 42
the scheme under Section 80C if the Income-Tax Act, 1961. It also seeks to distribute income
periodically depending on distributable surplus.

FUND HIGHLIGHTS (T-6) CURRENT

STATS & PROFILE (T-7)
Fund type Open-ended Equity
Fund
Date of Inception 31st March 1993

Fund manager Mr. Jayesh Shroff

Benchmark BSE 100 Index

Minimum Rs.500
Investment
Fund category Equity Linked Savings
Scheme (ELSS)
Total stocks 70

52- Week High 60.86 (31/7/10)

52- Week Low 47.06
(31/07/10)
AUM (Rs. Cr.) 5491.6 (31/7/10)
Risk Grade Low
Return Grade Above Average
Avg Mkt Cap(Rs.Cr.) 35,382.42
Expense ratio 2.50

LAST DIVIDENDS NAV as on 31/7/10

2009 2008 2007 2006

28% 10% 110% 150%

OPTION NAV(RS.)
GROWTH 56.66
DIVIDEND 35.42

Exit Load

Page 43
Nil

Entry load

Nil

SIP

Rs. 500 per month - 12 months

Rs. 1000 per month – 6 months

Rs. 1500 per quarter – 4 quarters.

Page 44
 PORTFOLIO SUMMARY - TOP 10 HOLDINGS (T-8)
Stock Name Sector (%) of Total AUM
State Bank of India Financial 5.63
Reliance Industries Ltd. Energy 5.41
Larsen & Toubro Ltd. Diversified 4.34
ICICI Bank Ltd. Financial 3.75
ONGC Ltd. Energy 3.57
BHEL Ltd. Engineering 3.03
Jindal Steel & Power Ltd. Metals 2.92
HDFC Bank Ltd. Financial 2.86
Bharti Airtel Ltd. Communication 2.62
NTPC Ltd. Energy 2.33
Total 36.46

FIG-4

Fund Style
Investment style
Growth Blend Value
Composition
Large (%)
Medium Equity 90.15
Capitalization Debt 0.62
Cash 9.23
Small

Page 45
 SECTORIAL BREAKDOWN (F-5)

PERFORMANCE OF MAGNUM TAXGAIN FUND (T-9)

(Rm-Rf) (Rp-Rf) (X-X bar)

YEAR Rp Rm Rf X2 XY D2
X Y D

Last 1
(1.38) (1.45) 7 (8.45) (8.38) 71.40 70.81 (19.48) 379.37
month

Last 3
42.34 41.64 7 34.64 35.34 1199.93 1224.18 23.61 557.55
months

Last 1
8.72 7.27 7 0.27 1.72 0.07 0.46 (10.76) 115.12
year
Since
inception 18.88 24.65 7 17.65 11.88 311.52 209.68 6.62 43.86
31/3/93

TOTAL 44.11 40.56 1582.93 1505.14 0 1096.50

Where ,
Rp – Portfolio Return
Rm – Market Return – Fund’s Benchmark - SENSEX
Rf – Risk free rate of return

Page 46
 MAGNUM TAXGAIN FUND (F-6)

Interpretation:
Last 1 month: It reveals that Magnum Taxgain Fund has given negative returns of 1.38 as
compared to fund’s Benchmark returns are negative 1.45. The risk free rate of
return is common for the whole period ie. 7%.

Last 3 months: It reveals that Magnum Taxgain Returns are 42.34% as compared to its
Benchmark returns are 41.64. The risk free rate of return is 7%.

Last 1 Year: It reveals that Magnum Taxgain has Returns are 8.72% as compared to its
Benchmark returns are 7.27%. The risk free rate of return is 7%.

Since Inception: It reveals that Magnum Taxgain returns are 18.88% as compared to fund’s
Benchmark returns are 24.65%. The risk free rate of return is 7%.

Page 47
 RISK ANALYSIS – VOLATILITY MEASUREMENTS (T-10)

SHARPE PORTFOLIO STANDARD

MEAN BETA
RATIO TURNOVER DEVIATION

Magnum
11.03 0.24 0.36 0.95 34.35
TaxGain Fund

ICICI Tax
11.03 2.75 0.41 1.11 16.56
Plan

HDFC Tax
11.03 4.40 0.72 1.01 16.56
Saver Fund

Reliance Tax
11.03 0.29 0.51 0.88 33.18
Saver Fund

UTI Tax
11.03 1.57 0.29 0.88 16.56
Saving Plan

Interpretation:

 Since the Sharpe Ratio is highest for HDFC Tax Saver Fund at 4.40 among the category
of ELSS, it gives better reward for the risk taken.
 Since the Treynor Ratio is also highest for HDFC Tax Saver Fund at 0.72, it offers a
superior risk-reward equation for the investors. It is followed by Reliance Tax Saver and
Magnum Taxgain.

 Since beta for Magnum Taxgain Fund, Reliance Tax Saver Fund and UTI Tax Saving
Plan is less than 1, it is an indication of a conservative stock or fund. Thus, these funds
move lesser than the market.

 Beta for ICICI Prudential Tax Plan, HDFC Tax Saver Fund is more than 1 signifies a
fund that is more aggressive than the market.

 Standard Deviation which measures the total risk namely, systematic risk plus non-
systematic risk are 16.56. It compares the sensitivity of value of a security with the
movements in the market.

Page 48
5.3 Magnum Index Fund
INVESTMENT OBJECTIVE - The scheme will adopt a passive investment strategy. The
scheme will invest in stocks comprising the S&P CNX Nifty index in the objective of achieving
returns equivalent to the Total returns Index of S&P Nifty index by minimizing the performance
difference between the benchmark index and the scheme. The Total Returns Index is an index
that reflects the returns on the index from index gain/loss plus dividend payments by the
constituent stocks.

FUND HIGHLIGHTS (T-11) CURRENT

STATS & PROFILE
Fund type Open-ended Equity
Fund
Date of Inception 04th February, 2002

Fund manager Mr. Arun Agarwal

Benchmark S & P NIFTY TRI

Minimum Rs.5000
Investment
Fund category Equity Index fund

Total stocks 50

52- Week High 4644 (23/7/10)

52- Week Low 37.90 (17/8/09)
AUM (Rs. Cr.) 29.61 (31/6/10)
Risk Grade Average
Return Grade Below Average
Avg Mkt Cap(Rs.Cr.) 85619
Expense ratio 1.50

Page 49
 LAST DIVIDENDS NAV as on 03/7/10

2008 2007 2006 2005

NA NA 33% 37.5%

OPTION NAV(RS.)
GROWTH 45.75
DIVIDEND 22.56

Exit Load

1% for exit within 7 business days from the date of investment.

Entry load

Nil

SIP

Rs. 500 per month - 12 months

Rs. 1000 per month – 6 months

Rs. 1500 per quarter – 4 quarters.

PORTFOLIO SUMMARY - TOP 10 HOLDINGS (T-12)

Stock Name Sector (%) Of Total AUM
Reliance Industries Ltd. Energy 12.26
ONGC Ltd. Energy 8.53
NTPC Ltd. Energy 5.93
Bharti Airtel Ltd. Communication 5.38
State Bank of India Financial 4.10
BHEL Ltd. Engineering 3.68
Infosys Technologies Ltd. Technology 3.17
ICICI Bank Financial 2.94
Larsen & Toubro Diversified 2.83
SAIL Ltd. Metals 2.46

Page 50
Total 36.44

FIG-7

Fund Style
Investment style
Growth Blend Value
Composition
Large (%)
Medium Equity 95.78
Capitalization Debt 1.62
Cash 2.60

FIG-8

Page 51
 PERFORMANCE OF MAGNUM INDEX FUND (T-13)

(Rm-Rf) (Rp-Rf) (X-X bar)

YEAR Rp Rm Rf X2 XY D2
X Y D

Last 1
(3.92) (3.90) 7 (10.9) (10.92) 118.81 119.03 (19.12) 365.67
month

Last 3
35.13 35.43 7 28.43 28.13 808.26 799.74 20.21 408.34
months

Last 1 year 5.00 6.24 7 (0.76) (2.00) 0.58 1.52 (8.98) 80.68

Since
inception 19.20 23.12 7 16.12 12.20 261.47 196.66 7.90 62.37
(04/02/2002)

TOTAL 32.89 27.41 1189.12 1116.95 0 917.07

Where ,
Rp – Portfolio Return

Page 52
 Rm – Market Return – Fund’s Benchmark - S&P CNX NIFTY
Rf – Risk free rate of return
MAGNUM INDEX FUND (F-9)

Interpretation:
Last 1 month: It reveals that Magnum Index Fund has given negative returns of 3.92 as
compared to fund’s Benchmark returns are negative 3.9. The risk free rate of
return is common for the whole period ie. 7%.

Last 3 months: It reveals that Magnum Index Returns are 35.13% as compared to its
Benchmark returns are 35.43. The risk free rate of return is 7%.

Last 1 Year: It reveals that Magnum Index has Returns are 5% as compared to its
Benchmark returns are 6.24%. The risk free rate of return is 7%.

Since Inception: It reveals that Magnum Index returns are 19.2% as compared to fund’s
Benchmark returns are 23.12%. The risk free rate of return is 7%.

Page 53
 RISK ANALYSIS – VOLATILITY MEASUREMENTS (T-14)

SHARPE PORTFOLIO STANDARD

MEAN BETA
RATIO TURNOVER DEVIATION

Magnum Index
8.22 0.18 1.56 0.99 35.37
Fund
ICICI
Prudential 8.22 2.18 0.34 0.96 15.14
Index Fund
HDFC Index
8.22 1.75 0.27 0.95 15.14
Fund - Nifty

Reliance Quant
8.22 1.75 0.38 0.69 15.14
Plus Fund

UTI Nifty
8.22 1.29 0.21 0.89 15.14
Index Fund

Interpretation:

 Since the Sharpe Ratio is highest for ICICI Prudential Index Fund at 2.18 among the
category of Index funds, it gives better reward for the risk taken.
 Since the Treynor Ratio is also highest for Reliance Quant Plus Fund at 0.38, it offers a
superior risk-reward equation for the investors. It is followed by ICICI Prudential Index
Fund and Magnum Index Fund.

 Since beta for Magnum Index Fund, ICICI Prudential Index Fund and HDFC Index Fund
is close to 1 and is less than 1, it is an indication of a conservative stock or fund. Thus,
these funds move lesser than the market.

 But Beta for Reliance Quant Plus Fund and UTI Nifty Index Fund is quite less. Therefore
these funds are relatively more conservative.

 Standard Deviation which measures the total risk namely, systematic risk plus non-
systematic risk are 15.14. It compares the sensitivity of value of a security with the
movements in the market.

Page 54
5.4 Magnum Equity Fund
INVESTMENT OBJECTIVE – To provide the investor long-term capital appreciation by
investing in high growth companies along with the liquidity of an open-ended scheme through
investments primarily in equities and the balance in debt and money market instruments.

FUND HIGHLIGHTS (T-15) CURRENT STATS & PROFILE

Fund type Open-ended Growth

Fund
Date of Inception 01st Janauary, 1991

Fund manager Mr. Jayesh Shroff

Benchmark BSE 100

Minimum Rs.1000
Investment
Fund category Equity Diversified Fund

Total stocks 27

52- Week High 42.26

(28/07/10)
52- Week Low 32.61(10/08/09)
AUM (Rs. Cr.) 426.5 (30/6/10)
Risk Grade Average
Return Grade Above Average
Avg Mkt 31008
Cap(Rs.Cr.)
Expense ratio 2.50
LAST DIVIDENDS NAV as on 03/7/10

2008 2007 2006 2005

NA 50% 50% NA

Page 55
 OPTION NAV(RS.)
GROWTH 42.09
DIVIDEND 34.45

Exit Load

For exit within one year from the date of allotment 1%

For exit after one year from the date of allotment- Nil

Entry load

Nil

SIP

Rs. 500 per month – 12 months

Rs. 1000 per month – 6 months

Rs. 1500 per quarter – 4 quarters

PORTFOLIO SUMMARY - TOP 10 HOLDINGS (T-16)

Stock Name Sector (%) Of Total AUM
BHEL Ltd. Engineering 6.49
Bharti Airtel Ltd. Communication 6.36
Jindal Steel & Power Ltd. Metals 6.18
Asian Paints Ltd. Chemicals 6.04
Reliance Industries Ltd. Energy 5.44
Larsen & Toubro Ltd. Diversified 4.96
Pantaloon Retail(India ) Ltd. Services 4.24
Kotak Mahindra Bank Ltd. Financial 4.07
Tata Power Ltd. Energy 3.89
United Phosphorus Ltd. Chemicals 3.86
Total 51.53%

FIG-10

Page 56
 Fund Style
Investment style
Growth Blend Value
Composition
Large (%)
Medium Equity 88.34
Capitalization Debt 1.49
Cash 10.17

Page 57
 MAGNUM EQUITY FUND (F-11)

IN

PERFORMANCE OF MAGNUM EQUITY FUND (T-17)

(Rm-Rf) (Rp-Rf) (X-X bar)

YEAR Rp Rm Rf X2 XY D2
X Y D

Last 1
(0.32) (1.45) 7 (8.45) (7.32) 71.40 61.85 (19.46) 379.37
month

Last 3
48.48 41.64 7 34.64 41.48 1199.93 1436.87 23.61 557.55
months

Last 1
14.05 7.27 7 0.27 7.05 1.90 1.90 (10.76) 115.74
year
Since
inception 16.06 24.65 7 17.65 9.06 159.91 159.91 6.62 43.86
1/1/91

TOTAL 44.11 50.27 1582.93 1660.53 0 1096.50

Where ,
Rp – Portfolio Return
Rm – Market Return – Fund’s Benchmark - SENSEX
Rf – Risk free rate of return

Page 58
 MAGNUM EQUITY FUND (F-12)

IN

Interpretation:
Last 1 month: It reveals that Magnum Equity Fund has given negative returns of 0.32% as
compared to fund’s Benchmark returns are negative 1.45%. The risk free rate
of return is common for the whole period ie. 7%.

Last 3 months: It reveals that Magnum Equity Returns are 48.48% as compared to its
Benchmark returns are 41.64%. The risk free rate of return is 7%.

Last 1 Year: It reveals that Magnum Equity Returns are 14.05% as compared to its
Benchmark returns are 7.27%. The risk free rate of return is 7%.

Since Inception: It reveals that Magnum Equity returns are 16.06% as compared to fund’s
Benchmark returns are 24.65%. The risk free rate of return is 7%.

Page 59
 RISK ANALYSIS – VOLATILITY MEASUREMENTS (T-18)

SHARPE PORTFOLIO STANDARD

MEAN BETA
RATIO TURNOVER DEVIATION

Magnum Equity
11.03 0.33 1.57 1.01 36.84
Fund
ICICI Prudential
Focused Equity 11.03 2.07 0.51 0.67 16.57
Fund
HDFC Top 200
11.03 4.67 0.83 0.93 16.57
Fund
Reliance Equity
Opportunities 11.03 2.72 0.47 0.96 16.57
Fund

UTI Equity Fund 11.03 1.53 0.36 0.69 16.57

Interpretation:

 Since the Sharpe Ratio is highest for HDFC Top 200 Fund at 4.67 among the category of
Equity Diversified funds, it gives better reward for the risk taken. It is followed by
Magnum Equity Fund.
 Since the Treynor Ratio is also highest for HDFC Top 200 Fund at 0.83, it offers a
superior risk-reward equation for the investors. It is followed by ICICI Prudential
Focused Equity Fund and Magnum Equity Fund.

 Beta for Magnum Equity Fund is more than 1 signifies a fund that is more aggressive
than the market.

 Since beta for ICICI Prudential Focused Equity Fund, HDFC Top 200 Fund, Reliance
Equity Opportunities Fund and UTI Equity Fund is less than 1, it is an indication of a
conservative stock or fund. Thus, these funds move lesser than the market.

 Standard Deviation which measures the total risk namely, systematic risk plus non-
systematic risk are 16.57. It compares the sensitivity of value of a security with the
movements in the market.

Page 60
5.5 Magnum Balanced Fund
INVESTMENT OBJECTIVE – To provide investors long term capital appreciation along with
the liquidity of an open-ended scheme by investing in a mix of debt and equity. The scheme will
invest in a diversified portfolio of equities of high growth companies and balance the risk
through investing the rest in a relatively safe portfolio of debt.

FUND HIGHLIGHTS CURRENT

STATS & PROFILE
Fund type Open-ended Balanced
Fund
Date of Inception 31st December, 1995

Fund manager Mr. Ritesh Sheth

Benchmark CRISIL Balanced Index

Minimum Investment Rs.1000

Fund category Hybrid: Equity-Oriented

Total stocks 53

52- Week High 50.46 (23/7/10)

52- Week Low 41.08 (10/8/09)
AUM (Rs. Cr.) 523.6 (30/6/10)
Risk Grade Average
Return Grade Above Average
Avg Mkt 22629
Cap(Rs.Cr.)
Expense ratio 2.50

LAST DIVIDEND NAV as on 30/7/10

2008 2007 2006 2005

Page 61
 NA NOV- 40% NA JAN- 20%
NOV- 39%

OPTION NAV(RS.)
GROWTH 50.18
DIVIDEND 28.57

Exit Load

For exit within one year from the date of allotment 1%

For exit after one year from the date of allotment- Nil

Entry load

Nil

SIP

Rs. 500 per month – 12 months

Rs. 1000 per month – 6 months

Rs. 1500 per quarter – 4 quarters

PORTFOLIO SUMMARY - TOP 10 HOLDINGS (T-19)

Stock Name Sector (%) Of Total AUM
Reliance Industries Ltd. Energy 6.14
ICICI Bank Ltd. Financial 3.33
State Bank of Index Ltd. Financial 3.23
Bharti Airtel Ltd. Communication 3.09
BHEL Ltd. Engineering 3.02
ONGC Ltd. Energy 3.01
Larsen Toubro Ltd. Diversified 3.00
Infosys Technologies Ltd. Technology 2.72
ITC Ltd. FMCG 2.19
Reliance Communications Ltd. Communication 2.13
Total 31.86%
FIG-13

Page 62
 Fund Style
Investment style
Growth Blend Value
Composition
Large (%)
Medium Equity 71.69
Capitalization Debt 18.40
Cash 9.92

FIG-14

Page 63
 IN

PERFORMANCE OF MAGNUM BALANCED FUND (T-20)

(Rm-Rf) (Rp-Rf) (X-X bar)

YEAR Rp Rm Rf X2 XY D2
X Y D

Last 1
(0.24) (4.02) 7 (2.98) (7.24) 8.88 21.58 (8.41) 70.77
month

Last 3
35.90 22.84 7 15.84 28.9 250.91 457.78 (10.41) 108.32
months

Last 1
14.86 6.42 7 (0.58) 7.86 0.34 (4.56) (6.01) 36.15
year
Since
inception 17.99 16.45 7 9.45 10.99 89.31 103.86 4.02 16.14
31/3/93

TOTAL 21.73 40.51 349.45 578.65 0 231.38

Where ,
Rp – Portfolio Return
Rm – Market Return – Fund’s Benchmark - S & P CNX NIFTY
Rf – Risk free rate of return

FIG-15

Page 64
 MAGNUM BALANCED FUND

IN

Interpretation:
Last 1 month: It reveals that Magnum Balanced Fund has given negative returns of 0.24% as
compared to fund’s Benchmark returns are negative 4.02%. The risk free rate
of return is common for the whole period ie. 7%.

Last 3 months: It reveals that Magnum Balanced Returns are 35.9% as compared to its
Benchmark returns are 22.84%. The risk free rate of return is 7%.

Last 1 Year: It reveals that Magnum Balanced has Returns are 14.86% as compared to its
Benchmark returns are 6.24%. The risk free rate of return is 7%.

Since Inception: It reveals that Magnum Balanced returns are 17.99% as compared to fund’s
Benchmark returns are 16.45%. The risk free rate of return is 7%.

Page 65
 RISK ANALYSIS – VOLATILITY MEASUREMENTS (T-21)

SHARPE PORTFOLIO STANDARD

MEAN BETA
RATIO TURNOVER DEVIATION

Magnum
3.42 0.26 1.31 1.07 28.31
Balanced Fund
ICICI
Prudential 3.42 1.38 0.15 0.90 10.19
Balanced Fund
HDFC
3.42 3.87 0.34 1.13 10.19
Balanced Fund
Reliance
Regular 3.42 5.91 0.54 1.11 10.19
Savings Fund
UTI Balanced
3.42 3.37 0.32 1.06 10.19
Fund

Interpretation:

 Since the Sharpe Ratio is highest for Reliance Regular Savings Fund at 5.91 among the
category of Equity Balanced funds, it gives better reward for the risk taken. It is followed
by Magnum Balanced Fund.
 Since the Treynor Ratio is also highest for Reliance Regular Savings Fund at 0.54, it
offers a superior risk-reward equation for the investors. It is followed HDFC Balanced
Fund and Magnum Balanced Fund.

 Since Beta for Magnum Balanced Fund, HDFC Balanced fund, Reliance Regular
Savings Fund and UTI Balanced Fund is more than 1 signifies a fund that is more
aggressive than the market.

 Since beta for ICICI Prudential Balanced Fund, is less than 1, it is an indication of a
conservative stock or fund. Thus, these funds move lesser than the market.

 Standard Deviation which measures the total risk namely, systematic risk plus non-
systematic risk are 10.19. It compares the sensitivity of value of a security with the
movements in the market.

Page 66
Chapter – 6 Suggestions and
Recommendations
 The Asset Management Company must design the portfolio in such a way, to increase the
risk adjusted returns.

 The Asset Management Company must dedicate itself, because it motivates the investors
and potential investors to invest in Mutual Funds.

 The Asset Management Company can increase its distribution network to expand its
reach to potential investors.

 The Asset Management Company must manage the Fund efficiently and with dedication
to earn the goodwill of the public.

 The Asset Management Company should adopt some measures to give incentives to the
performing employees and distributors to motivate them. Hence, this will increase the
business of AMC.

 The Asset Management Company must make the most advantageous use of print and
electronic media in order to motivate the investors and potential investors to invest in
Mutual Funds.

 The Asset management Company should take initiative and make their potential and
interested customers aware about mutual fund concept and their working so they can take
better and informed decisions.

Page 67
 Bibliography
Websites
www.sbimf.com
www.mutualfundsindia.com
www.amfiindia.com
www.moneycontrol.com
www.morningstar.com
www.yahoofinance.com
www.theeconomictimes.com
www.rediffmoney.com
www.bseindia.com
www.nseindia.com
www.investopedia.com

Journals & other references

SBI Mutual Fund – Investment Update
SBI Mutual Fund – Fund Dossier
SBI Mutual Fund – Horizon, Newsletter
Indian Mutual Funds Handbook – by Sundar Sankaran
SBI Mutual Fund – Hand Book
The Economic Times
Business Standard
Business India
Outlook Money
Fact sheet and statements of various fund houses.

Page 68