CHAPTER 1

COMPANY PROFILE

1
INTRODUCTION

State Bank of India is the largest and one of the oldest commercial bank in India, in
existence for more than 200 years. The bank provides a full range of corporate, commercial
and retail banking services in India. Indian central bank namely Reserve Bank of India
(RBI) is the major share holder of the bank with 59.7% stake. The bank is capitalized to
the extent of Rs.646bn with the public holding (other than promoters) at 40.3%. SBI has
the largest branch and ATM network spread across every corner of India. The bank has a
branch network of over 14,000 branches (including subsidiaries). Apart from Indian
network it also has a network of 73 overseas offices in 30 countries in all time zones,
correspondent relationship with 520 International banks in 123 countries. In recent past,
SBI has acquired banks in Mauritius, Kenya and Indonesia.

The bank had total staff strength of 198,774 as on 31st March, 2006. Of this, 29.51% are
officers, 45.19% clerical staff and the remaining 25.30% were sub-staff. The bank is listed
on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange,
Chennai Stock Exchange and Ahmedabad Stock Exchange while its GDRs are listed on the
London Stock Exchange. SBI group accounts for around 25% of the total business of the
banking industry while it accounts for 35% of the total foreign exchange in India. With this
type of strong base, SBI has displayed a continued performance in the last few years in
scaling up its efficiency levels. Net Interest Income of the bank has witnessed a CAGR of
13.3% during the last five years. During the same period, net interest margin (NIM) of the
bank has gone up from as low as 2.9% in FY02 to 3.40% in FY06 and currently is at
3.32%.

2
MANAGEMENT

The bank has 14 directors on the Board and is responsible for the management of the Bank’s
business. The board in addition to monitoring corporate performance also carries out
functions such as approving the business plan, reviewing and approving the annual budgets
and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the Chairman of the
bank. The Five-year term of Mr. Bhatt will expire in March 2011. Prior to this appointment,
Mr. Bhatt was Managing Director at State Bank of Travancore. Mr. Bhatt has more than 30
years of experience in the Indian banking industry and is seen as futuristic leader in his
approach towards technology and customer service. Mr. Bhatt has had the best of foreign
exposure in SBI. We believe that the appointment of Mr. Bhatt would be a key to SBI’s
future growth momentum. Mr. T S Bhattacharya is the Managing Director of the bank and
known for his vast experience in the banking industry. Recently, the senior management of
the bank has been broadened considerably. The positions of CFO and the head of treasury
have been segregated, and new heads for rural banking and for corporate development and
new business banking have been appointed. The management’s thrust on growth of the bank
in terms of network and size would also ensure encouraging prospects in time to come.

Shareholding & Liquidity (Till 30th Sept. 2007)

Reserve Bank of India is the largest shareholder in the bank with 59.7% stake followed by
overseas investors including GDRs with 19.78% stake as on September 06. Indian financial
institutions held 12.3% while Indian public held just 8.2% of the stock. RBI is the
monetary authority and having majority shareholding reflects conflict of interest. Now the
government is rectifying the above error by transferring RBI’s holding to itself. Post this,
SBI will have a further headroom to dilute the GOI’s stake from 59.7% to 51.0%, which
will further improve its CAR and Tier I ratio.

3
Key Areas of Operations

The business operations of SBI can be broadly classified into the key income generating
areas such as National Banking, International Banking, Corporate Banking, & Treasury
operations.

4
HISTORY

The origin of the State Bank of India goes back to the first decade of the nineteenth
century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three
years later the bank received its charter and was re-designed as the Bank of Bengal (2
January 1809). A unique institution, it was the first joint-stock bank of British India
sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the
Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at
the apex of modern banking in India till their amalgamation as the Imperial Bank of India
on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came
into existence either as a result of the compulsions of imperial finance or by the felt needs
of local European commerce and were not imposed from outside in an arbitrary manner to
modernise India's economy. Their evolution was, however, shaped by ideas culled from
similar developments in Europe and England, and was influenced by changes occurring in
the structure of both the local trading environment and those in the relations of the Indian
economy to the economy of Europe and the global economic framework. The three banks
were governed by royal charters, which were revised from time to time. Each charter
provided for a share capital, four-fifth of which were privately subscribed and the rest
owned by the provincial government. The members of the board of directors, which
managed the affairs of each bank, were mostly proprietary directors representing the large
European managing agency houses in India. The rest were government nominees,
invariably civil servants, one of whom was elected as the president of the board.

BUSINESS

The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs.one Lakh and the period of
accommodation confined to three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods

5
'not of a perishable nature' and no interest could be charged beyond a rate of twelve per
cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods,
mule twist and silk goods were also granted but such finance by way of cash credits
gained momentum only from the third decade of the nineteenth century. All commodities,
including tea, sugar and jute, which began to be financed later, were either pledged or
hypothecated to the bank. Demand promissory notes were signed by the borrower in
favour of the guarantor, which was in turn endorsed to the bank. Lending against shares of
the banks or on the mortgage of houses, land or other real property was, however,
forbidden. Indians were the principal borrowers against deposit of Company's paper, while
the business of discounts on private as well as salary bills was almost the exclusive
monopoly of individuals Europeans and their partnership firms. But the main function of
the three banks, as far as the government was concerned, was to help the latter raise loans
from time to time and also provide a degree of stability to the prices of government
securities.

First Five Year Plan

In 1951, when the First Five Year Plan was launched, the development of rural India was
given the highest priority. The commercial banks of the country including the Imperial
Bank of India had till then confined their operations to the urban sector and were not
equipped to respond to the emergent needs of economic regeneration of the rural areas.

In order, therefore, to serve the economy in general and the rural sector in particular, the All
India Rural Credit Survey Committee recommended the creation of a state-partnered and
state- sponsored bank by taking over the Imperial Bank of India, and integrating with it, the
former state-owned or state-associate banks. An act was accordingly passed in Parliament
in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a
quarter of the resources of the Indian banking system thus passed under the direct control of
the State.

6
Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the
State Bank of India to take over eight former State-associated banks as its subsidiaries (later
named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the 480
offices comprising branches, sub offices and three Local Head Offices inherited from the
Imperial Bank. The concept of banking as mere repositories of the community's savings and
lenders to creditworthy parties was soon to give way to the concept of purposeful banking
sub serving the growing and diversified financial needs of planned economic development.
The State Bank of India was destined to act as the pacesetter in this respect and lead the
Indian banking system into the exciting field of national development.

COMPETITORS

Competitors and other players in the field

Top Performing Public Sector Banks

Andhra Bank
Allahabad Bank
Dena Bank

Vijaya Bank

Punjab National Bank

Top Performing Private Sector Banks

Kotak Mahindra Bank

Centurion Bank of Punjab

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Top Performing Foreign Banks

Citibank
Standard Chartered
HSBC Bank
ABN AMRO Bank
American Express

8
INDUSTRY PROFILE

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.6700 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 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
9
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 Feb 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

10
Categories of Mutual Fund

11
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 can not 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:

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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 weightages.

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.

13
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 mis-
pricing 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.

14
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.

15
INVESTMENT STRATEGIES

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).

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.

Systematic Withdrawal Plan if someone wishes to withdraw from a mutual

fund then he can withdraw a fixed amount each month.

Risk V/S. Return

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COMPANY PROFILE &PRODUCT PROFILE

INTRODUCTION TO SBI MUTUAL FUND

SBI Funds Management Pvt. Ltd. is one of the 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 Society General 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 Centres,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.

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Products of SBI Mutual Fund

Equity Schemes

The investments of these schemes will predominantly be in the stock markets

and endeavour will be to provide investors the opportunity to benefit from the
higher returns which stock markets can provide. However they are also exposed
to the volatility and attendant risks of stock markets and hence should be
chosen only by such investors who have high risk taking capacities and are
willing to think long term. Equity Funds include diversified Equity Funds,
Sectoral Funds and Index Funds. Diversified Equity Funds invest in various
stocks across different sectors while sectoral funds which are specialized Equity
Funds restrict their investments only to shares of a particular sector and hence,
are riskier than Diversified Equity Funds. Index Funds invest passively only in
the stocks of a particular index and the performance of such funds move with the
movements of the index.

Magnum COMMA Fund

Magnum Equity Fund
Magnum Global Fund
Magnum Index Fund
Magnum Midcap Fund
Magnum Multicap Fund
Magnum Multiplier plus 1993
Magnum Sectoral Funds Umbrella
MSFU- Emerging Business Fund
MSFU- IT Fund
MSFU- Pharma Fund
MSFU- Contra Fund
MSFU- FMCG Fund
S B I A r b i t r a g e O p p o r t un i tie s F u n d
SB I Blue ch ip F un d
S B I I n f r a st r u c t ur e F u n d - S e r i e s I

18
S B I M a g n u m Ta x g a i n Sc h e m e 1 9 9 3
S B I ON E I n d i a F u n d
S B I TA X AD VAN TA G E FUN D - S E R I E S I

Debt Schemes

Debt Funds invest only in debt instruments such as Corporate Bonds,

Government Securities and Money Market instruments either completely
avoiding any investments in the stock markets as in Income Funds or Gilt Funds
or having a small exposure to equities as in Monthly Income Plans or Children's
Plan. Hence they are safer than equity funds. At the same time the expected
returns from debt funds would be lower. Such investments are advisable for the
risk-averse investor and as a part of the investment portfolio for other investors.

Magnum Children’s benefit Plan

Magnum Gilt Fund
Ma g nu m I n c o m e F u n d
Ma g nu m In s t a C as h F u n d
Magnum Income Fund- Floating Rate Plan
Magnum Income plus Fund
Ma g nu m In s t a C as h F u n d - L i q u i d F l o a t e r P l a n
Ma g nu m M o n t h l y I n c o m e P l a n
Ma g nu m M o n t h l y I n c o m e P l a n - Floater
Ma g nu m N R I I n v e s t m e n t F u n d
S B I P r e m ie r Li q u i d F u n d

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Balanced Schemes

Magnum Balanced Fund invests in a mix of equity and debt investments. Hence
they are less risky than equity funds, but at the same time provide
commensurately lower returns. They provide a good investment opportunity to
investors who do not wish to be completely exposed to equity markets, but is
looking for higher returns than those provided by debt funds.

Competitors of SBI Mutual Fund

Some of the main competitors of SBI Mutual Fund in Bangalore are as follows:

i. ICICI Mutual Fund

ii. Reliance Mutual Fund
iii. UTI Mutual Fund
iv. Birla Sun Life Mutual
Fund
v. Kotak Mutual Fund
vi. HDFC Mutual Fund
vii. Sundaram Mutual Fund
viii. LIC Mutual Fund
ix. Principal
x. Franklin Templeton

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Awards and Achievements

SBI Mutual Fund (SBIMF) has been the proud recipient of the ICRA Online Award – 8
times, CNBC TV - 18 Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-
2006) and most recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award
2007 and 5 Awards for our schemes.

21
22
VISION & MISSION

Vision

Premier Indian financial services group with global perspective, world class standards of
the efficiency and professionalism and core institutional values.

Retain its position in the country as a pioneer in developing countries.

Maximize shareholder value through high sustained earnings per share.

An institution with a culture of mutual care and commitment a satisfying and exciting.

Work environment and continuous learning opportunity.

Mission

To retain the banks position as the premier Indian financial services.

Group with world class standards and significant global business commitment to
excellence in customer, shareholder and employee satisfaction and to play a leading role
in the expanding and diversifying financial service sector while continuing emphasis on its
development banking role.

Business Quality Objective

1. Development of the banking in rural areas.

2. Establishment of the powerful bank.
3. Provide help for agriculture sector.
4. Normal help.

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 CHAPTER 2
ORGANISATION STRUCTURE

24
Organizational structure

Definition

Formal and informal framework of policies and rules, within which an organization
arranges its lines of authority and communications, and allocates rights and duties.
Organizational structure determines the manner and extent to which roles, power, and
responsibilities are delegated, controlled, and coordinated, and how information flows
between levels of management. This structure depends entirely on the organization's
objectives and the strategy chosen to achieve them. In a centralized structure, the decision
making power is concentrated in the top layer of the management and tight control is
exercised over departments and divisions. In a decentralized structure, the decision
making power is distributed and the departments and divisions have varying degrees of
autonomy. An organization chart illustrates the organizational structure.

Importance of Organizational Structure

Organisation structure involves how a business organizes, categorizes and delegates tasks
to achieve a specific goal. A company's organizational structure determines how
business decisions are made and implemented at all levels of the business.

Organizational Chart

An organizational chart shows how departments, divisions and various levels of an

organization interact with one another. Organizational charts are expressed as a visual
illustration or outline.

Chain of Command

An important purpose of organizational structure is to identify who's involved in the

decision-making process and how those decisions are actualized.

25
 Distribution of Authority

Organizational structure plays a role in determining how a structure distributes

authority throughout an organization. Important factors must be addressed for an
organization to effectively pursue a goal, such as whether subordinates are involved in
the decision-making or if that is reserved for a few main authority figures within the
departments.

Departmentalization

Organizational structure defines how specific tasks and activities are assigned to their
functional departments. For example, sale representatives may be grouped within a
sales department or division.

Span of Control

Span of control defines the number of employees over whom a manager exercises
authority.

Types of organisational structure

Different types of Organisation structure can be created on the basis of arrangement of

activities. Accordingly, three broad types of structural forms are:
· Functional Structure
· Divisional Structure, and
· Adaptive Structure

Functional Structure

When units and sub-units of activities are created in organisation on the basis of functions,
it is known as functional structure. Thus, in any industrial organisation, specialised
functions like manufacturing marketing, finance and personnel constitute as separate units
of the organisation. All activities connected with each such function are placed in the
same unit. As the volume of activity increases, sub-units are created at lower levels in

26
each unit and the number of persons under each manager at various levels gets added. This
results in the interrelated positions taking the shape of a pyramid.

Divisional Structure

The divisional organisation structure is more suited to every large enterprise particularly
those which deal in multiple products to serve more than one distinctive markets. The
organisation is then divided into smaller business units which are entrusted with the
business related to different products or different market territories. In other words,
independent divisions (product divisions or market division), are created under
the overall control of the head office. Each divisional manager is given autonomy to run
all functions relating to the product or market segment or regional market. Thus, each
division may have a number of supporting functions to undertake. The divisional structure
is characterised by decentralisation of authority. Thus, it enables managers to take
Decisions promptly and resolve problems appropriate to the respective divisions. It also
provides opportunity to the divisional managers to take initiative in matters within their
jurisdiction. But such a structure involves heavy financial costs due to the duplication of
supporting functional units for the divisions. Moreover, it requires adequate number of
capable managers to take charge of the respective divisions and their functional units.

Adaptive Structure

Organisation structures are often designed to cope with the unique nature of undertaking
and the situation.
This type of structure is known as adaptive structure. There are two types in structures.
i) Project Organisation, and
ii) Matrix Organisation

Project Organisation: When an enterprise undertakes any specialised, time-bound

work involving one-time operations for a fairly long period, the project organisation is
found most suitable. In this situation the existing organisation creates a special unit so as
to engage in a project work without disturbing its regular business. This becomes
necessary where it is not possible to cope with the special task or project. Within the
existing system, the project may consist of developing a new project, installing a plant,
27
building an office complex, etc.. A project organisation is headed by a project manager in
charge, who holds a middle management rank and reports directly to the chief executive.
Other managers and personnel in the project organisation are drawn from the functional
departments of the parent organisation. On completion of the project they return to their
parent departments.

Matrix Organisation: This is another type of adaptive structure which aims at

combining the advantages of autonomous project organisation and functional
specialisation. In the matrix organisation structure, there are functional departments with
specialised personnel who are deputed to work full time in different projects sometimes in
more than one project under the overall guidance and direction of project managers. When
a project work is completed, the individuals attached to it go back to the irrespective
functional department to be assigned again to some other project. This arrangement is
found suitable where the organisation is engaged in contractual project activities and there
are many project managers, as in a large construction company or engineering firm.

28
Organisational Structure of SBI

29
 AG
C
Gen. Banking/
30
 CHAPTER 3
FUNCTIONING OF THE DEPARTMENT

31
Functioning of the department (finance)

The State Bank of India acts as an agent of the Reserve Bank of India and performs the
following functions

1. Borrows money The Bank borrows money from the public by accepting
deposits such as current account deposits, fixed deposit and savings deposits.

2. Lends money It lends money to merchants and manufacturers for short

periods. It also lends to farmers and co-operative institutions. It lends mostly on
the security of easily realizable commodities like rice, wheat, cotton, oil-seeds,
cloth, gold and government securities. The Bank can lend against agricultural bills
upto a maximum period of fifteen months and in case of other bills upto a
maximum period of six months.

3. Banker’s Bank The State Bank of India acts as the banker’s bank. In
discharging this responsibility, the bank provides loans to commercial bank when
required and also rediscount their bill. It also acts as the clearing house of the
commercial bank.

4. Government’s Bank The State Bank of India also acts as the agent of the
Reserve Bank of India. As an agent, the State Bank of India maintains the
treasuries of the State Government. The Bank also manages the debts floated by
the State Governments.

32
 5. Remittance The State Bank of India facilitates remittance of money from one
place to another. It also helps in the transfer on the funds of the State and Central
Government.

6. Functions as Central Bank The State Bank of India performs the functions
of a Central Bank.

7. Subsidiary functions The State Bank performs various subsidiary services

also. It collects checks, drafts, bill of exchange, dividends interest, salaries and
pensions on behalf of its customers. It purchases and sells securities on behalf of
its customer. It receives valuables and documents for safe custody and maintains
safe deposit vaults.

HRD functions in SBI Bank

I Staff Meetings

• Staff Meeting aims at group synergy, team building, open culture, family feeling
and talent recognition which individually and cumulatively benefit the
organizations.

• Goals/Targets set for the unit/Bank is discussed in the monthly Staff Meetings
conducted at all branches/units and action plan is drawn in achieving them.

• The forum is being effectively utilized for harmonious functioning of all the
branches and administrative units through greater involvement and collective
contribution of all staff members.

II Brain Storming Sessions

33
 • This is a technique for generating ideas and suggestions on topics of relevance and
also to provide alternate solutions to problems by simulative thinking and
imaginative power of cross section of employees.

• Corporate Topics are selected for each quarter and BSS are conducted in
administrative offices/ braches on the topic during every quarter.

• Worthy implement able suggestions emanated are circulated for necessary action.

III Study Circle

• Concept of Study Circle aims at self development of employees by kindling the

desire to acquire/update knowledge, information and experience.

• Guest lectures/ Power Point Presentation / Group Discussions, etc are arranged on
topics of general interest by inviting experts in the field.

• Study Circle Meeting are conducted once in two months in administrative offices
and once in a quarter in braches

Marketing functions at SBI

The trend in financial marketing is more and more toward micro-marketing. This means
the bank tailors its products, services, communications, service levels, and sales to meet
the local needs of niche markets. In major cities, markets may vary dramatically from
block to block. In other communities, the market may vary by section of town or even
county.

It is the responsibility of marketing to insure the bank acts in accordance with local needs.
From time-to-time, this may involve market research to determine the precise strategy
needed. But at a minimum, the marketing function can help tailor the sales and marketing
plan to each market by staying abreast of changing local conditions using input from the
bank's personnel.

34
The marketing audit relies heavily on the ideas and needs expressed by bank officers and
employees. Frankly, a good idea can come from anywhere within the organization. By
talking with tellers, customer service representatives and secretaries on a regular basis in
each branch, the bank's marketing department can solicit input and feedback on customer
needs without incurring a huge market research bill. And, it can avoid expensive mistakes.
A savvy marketing plan in one area can easily fail in another.

The same concept also holds true for specialized functions within the bank. Functions
such as investments, trust, cash management, mortgage banking, credit cards and others
require specialized marketing plans. While these functions may benefit from the bank's
overall marketing plan, they frequently target unique markets. Therefore, these functions
often require mini-marketing plans of their own.

CHAPTER 4

SWOT ANALYSIS

35
Strengths

• The growth for SBI in the coming years is likely to be fueled by the following
factors:

• Continued effort to increase low cost deposit would ensure improvement in NIMs
and hence earnings.

• Growing retail & SMEs thrust would lead to higher business growth.

• Strong economic growth would generate higher demand for funds pursuant to
higher corporate demand for credit on account of capacity expansion.

Weakness

The weakness that could ensue to SBI in time to come are as under:

• SBI is currently operating at a lowest CAR. Insufficient capital may

restrict the growth prospects of the bank going forward.
• Delay in technology upgradation could result in loss of market shares.
• Management structure.
• Non-performing asset.

Opportunities

• Merger of associate banks.

• Addition of branches.
• Opportunity to expand in foreign soil.

36
Threats
• Stiff competition especially in retail segment could impact retail growth of SBI
and hence slowdown in earnings growth.

• Low down in domestic company would pose a concern over credit off – take
thereby impacting earnings growth.

• Venturing of private banks.

• Employee strikes.

37
 CHAPTER 5

ETHICAL PRACTICES, SAFETY, OCCUPATIONAL

HEALTH & ENVIRONMENTAL SAFETY

38
Ethical Practices And Safety In SBI
Ethics Towards Employees

Ethical Code of Conduct

• To provide services in professional, efficient, courteous,diligent and speedy

manner.
• Not to discriminate on the basis of religion, caste, sex,descent or any of them.
• To be fair and honest in advertisement and marketing.
• To provide accurate and timely disclosure of terms, costs,rights and liabilities.
• To comply with all the regulatory requirements.
• To spread general awareness about potential risks in contracting loans
• To provide financial advice to the customers.
• Low loan interest rates and high interest rates on deposits.
• Medical reimbursements, accommodation, insurance, PF,pension, etc.
• Healthy, safe and productive work environment.
• Still unrest in employees. Latest SBI strike!

Ethics Towards Customers

• Keep customer information confidential.

• Notify interest rate changes.
• Send details for all charges payable by customers.

Ethics Towards Society

• Interest free loans for crop production, horticulture and plantation crops etc.
• Launched ”Gram Nivas Scheme” with focus on the poor for Housing Loans.
• Contributed in poverty alleviation programme by Micro finance.
A

39
 CHAPTER 6

SPECIAL TASK

40
 Statement of the Problem

• SBI want to know about customer perception about the investment.

• To find out what kind of services provided by the competitors in investment

policy.

• To find out the need of the customers and hence formulate the strategy to level the
economy in the society.

• How the product and investment are helping the customer.

• To know the utility of the product and investment.

• To find out the need of the customer and introduce new product and investment or
facilitate new service in existing product.

• How to change the customer perception.

Objective

Objectives Of The Study

• To find out the Preferences of the investors for Asset Management Company.
• To know the Preferences for the portfolios.
• To know why one has invested or not invested in SBI Mutual fund
• To find out the most preferred channel.
• To find out what should do to boost Mutual Fund Industry.

Scope of the Study

41
A big boom has been witnessed in Mutual Fund Industry in resent times. A large
number of new players have entered the market and trying to gain market share in this
rapidly improving market.

The research was carried on in Bangalore. I had been sent at one of the branch of State
Bank of India Bangalore where I completed my Project work. I surveyed on my
Project Topic “A study of preferences of the Investors for investment in Mutual Fund”
on the visiting customers of the SBI Mico Layout Branch.

The study will help to know the preferences of the customers, which company,
portfolio, mode of investment, option for getting return and so on they prefer. This
project report may help the company to make further planning and strategy.

42
Research Methodology

This report is based on primary as well secondary data, however primary data
collection was given more importance since it is overhearing factor in attitude studies.
One of the most important users of research methodology is that it helps in identifying
the problem, collecting, analyzing the required information data and providing an
alternative solution to the problem .It also helps in collecting the vital information that is
required by the top management to assist them for the better decision making both day
to day decision and critical ones.

Data Sources

Research is totally based on primary data. Secondary data can be used only for the
reference. Research has been done by primary data collection, and primary data has
been collected by interacting with various people. The secondary data has been
collected through various journals and websites.

Duration of Study

The study was carried out for a period of 45 Days, from 1st July to 14th August.

Sampling

The sample was selected of them who are the customers/visitors of State Bank if India,

Mico Layout Branch, irrespective of them being investors or not or availing the services

or not. It was also collected through personal visits to persons, by formal and informal

talks and through filling up the questionnaire prepared. The data has been analyzed by

using mathematical/Statistical tool.

43
Sample Size

The sample size of my project is limited to 200 people only. Out of which only 120

people had invested in Mutual Fund. Other 80 people did not have invested in Mutual

Fund.

Sample Design

Data has been presented with the help of bar graph, pie charts, line graphs etc.

44
Analysis & Interpretation Of The Data

1. (a) Age distribution of the Investors of Bangalore

Age Group <= 30 31-35 36-40 41-45 46-50 >50

No. of 12 18 30 24 20 16
Investors

35

30
Investors invested in Mutual

25

20

15 30
24
10 20
18 16
12
5
Fund

0
<=30 31-35 36-40 41-45 46-50 >50
Age group of the Investors

Interpretation:

According to this chart out of 120 Mutual Fund investors of Bangalore the most are in the

age group of 36-40 yrs. i.e. 25%, the second most investors are in the age group of 41-

45yrs i.e. 20% and the least investors are in the age group of below 30 yrs.

45
(b). Educational Qualification of investors of Bangalore

Educational Qualification Number of Investors

Graduate/ Post Graduate 88

Under Graduate 25

Others 7

Total 120

6%
23%

71%

Graduate/Post Graduate Under Graduate Others

Interpretation:

Out of 120 Mutual Fund investors 71% of the investors in Bangalore are Graduate/Post
Graduate, 23% are Under Graduate and 6% are others (under HSC).

46
c). Occupation of the investors of Bangalore

Occupation No. of Investors

Govt. Service 30
Pvt. Service 45
Business 35
Agriculture 4
Others 6

50
No. of Investors

40
30
20 45
35 30
10
4 6
0
Govt. Pvt. Business Agriculture Others
Service Service

Occupation of the customers

Interpretation:

In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are
Businessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are in
others.

47
(d). Monthly Family Income of the Investors of Bangalore.

Income Group No. of Investors

<=10,000 5
10,001-15,000 12
15,001-20,000 28
20,001-30,000 43
>30,000 32

50
45
40
No. of Investors

35
30
25
43
20
15 32
28
10
5 12
5
0
<=10 10-15 15-20 20-30
>30
Income Group of the Investorsn (Rs. in Th.)

Interpretation:

In the Income Group of the investors of Bangalore out of 120 investors, 36% investors
that is the maximum investors are in the monthly income group Rs20,001 to Rs.
30,000, Second one i.e. 27% investors are in the monthly income group of more
than Rs. 30,000 and the minimum investors i.e. 4% are in the monthly income group
of below Rs. 10,000.

48
2. Preference Of Factors While Investing

Factors (a) Liquidity (b) Low Risk (c) High Return (d) Trust

No. of 40 60 64 36

Respondents

18 % 20 %

32 30 %
%

Liquidity Low Risk High Return Trust

Interpretation:

Out of 200 People, 32% People prefer to invest where there is High Return, 30%
prefer to invest where there is Low Risk, and 20% prefer easy Liquidity and18%
prefer Trust.
3. Awareness About Mutual Fund And Its Operations

Response Yes No
No. of Respondents 135 65

33%

67%

Yes No

Interpretation:

From the above chart it is inferred that 67% People are aware of Mutual Fund and its
operations and 33% are not aware of Mutual Fund and its operations.
4. Source Of Information For Customers About Mutual Fund

Source of information No. of Respondents

Advertisement 18
Peer Group 25
Bank 30
Financial Advisors 62

70
60
Responde

50
40
No.

nts
of

30 62
20 30
10 18 25
0
Advertisement Pee rGroup Bank Financial
Advisors
Sourceof
Information

Interpretation:

From the above chart it can be inferred that the Financial Advisor is the most
important source of information about Mutual Fund. Out of 135 Respondents, 46%
know about Mutual fund Through Financial Advisor, 22% through Bank, 19%
through Peer Group and 13% through Advertisement.
5. Investors Invested In Mutual Fund

Response No. of Respondents

YES 120
NO 80
Total 200

No
40%

Yes
60%

Interpretation:

Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested
in Mutual Fund.
6. Reason For Not Invested In Mutual Fund

Reason No. of Respondents

Not Aware 65
Higher Risk 5
Not any Specific Reason 10

6%
13 %

81 %
Not Aware Higher Risk Not
Any

Interpretation:

Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual
Fund, 13% said there is likely to be higher risk and 6% do not have any specific reason.
7. Investors Invested In Different Assets Management Co.
(AMC)

Name of AMC No. of Investors

SBIMF 55
UTI 75
HDFC 30
Reliance 75
ICICI Prudential 56
Kotak 45
Others 70

Others
70
HDFC
30
Name of AMC

Kotak
45
SBIMF
55
ICICI
56
Reliance

75
UTI
75

0 20 40 60
80
No. of
Investors

Interpretation:

In Bangalore most of the Investors preferred UTI and Reliance Mutual Fund. Out of 120
Investors 62.5% have invested in each of them, only 46% have invested in SBIMF, 47% in
ICICI Prudential, 37.5% in Kotak and 25% in HDFC.
8. Reason For Invested In SBIMF

Reason No. of Respondents

Associated with SBI 35
Better Return 5
Agents Advice 15

27 %

9% 64 %

Ass ociated with SBI Bett er Return

AgentsAdvice

Interpretation:

Out of 55 investors of SBIMF 64% have invested because of its association with Brand
SBI, 27% invested on Agent’s Advice, 9% invested because of better return.
9. Reason For Not Invested In SBIMF

Reason No. of Respondents

Not Aware 25
Less Return 18
Agent’s Advice 22

34 %
38%

2
8
%

Not Aware LessReturn Agent'sAdvice

Interpretation:

Out of 65 people who have not invested in SBIMF, 38% were not aware with SBIMF,
28% do not have invested due to less return and 34% due to Agent’s Advice.
10. Preference Of Investors For Future Investment In Mutual
Fund

Name of AMC No. of Investors

SBIMF 76
UTI 45
HDFC 35
Reliance 82
ICICI Prudential 80
Kotak 60
Other 75

Others 75

Kotak 60

ICICI Prudential 80
Name of

Reliance 82
AMC

HDFC 35

UTI 45

SBIMF 76

0 20 40 60 80 10 0

No. of
Investors

Interpretation:

Out of 120 investors, 68% prefer to invest in Reliance, 67% in ICICI Prudential, 63% in

SBIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual

Fund.
11. Channel Preferred By The Investors For Mutual Fund
Investment

Channel Financial Advisor Bank AMC

No. of Respondents 72 18 30

25%

60%
15
%

Financial Advisor Bank AMC

Interpretation:

Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through
AMC and 15% through Bank.
12. Mode Of Investment Preferred By The Investors

Mode of Investment One time Investment Systematic Investment Plan (SIP)

No. of Respondents 78 42

35 %

65 %

One time Investment SIP

Interpretation:

Out of 120 Investors 65% preferred One time Investment and 35 % Preferred through
Systematic Investment Plan.
13. Preferred Portfolios By The Investors

Portfolio No. of Investors

Equity 56
Debt 20
Balanced 44

37%
46 %

17 %

Equity Debt Balance

Interpretation:

From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17%
preferred Debt portfolio
14. Option For Getting Return Preferred By The Investors

Option Dividend Payout Dividend Growth

Reinvestment
No. of Respondents 25 10 85

21 %

8%

71 %

Dividend Payout Dividend

Reinvestment Growth

Interpretation:

From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout
and 8% preferred Dividend Reinvestment Option.
15. Preference of Investors Whether To Invest In Sectoral Funds

Response No. of Respondents

Yes 25
No 95

21%

79%
Yes No

Interpretation:

Out of 120 investors, 79% investors do not prefer to invest in Sectoral Fund because
there is maximum risk and 21% prefer to invest in Sectoral Fund.
Limitation of the Study

• Some of the persons were not so responsive.

• Possibility of error in data collection because many of investors may have not given
actual answers of my questionnaire.
• Sample size is limited to 200 visitors of State Bank of India , Mico Layout Branch,
Bangalore out of these only 120 had invested in Mutual Fund.
• The sample size may not adequately represent the whole market.
• Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.
• The research is confined to a certain part of Bangalore.
 CHAPTER 7

FINDINGS, SUGGESTIONS AND CONCLUSION

Findings

• In Bangalore in the Age Group of 36-40 years were more in

numbers. The second most Investors were in the age group of 41-45 years and the
least were in the age group of below 30 years.

• In Bangalore most of the Investors were Graduate or Post Graduate and

below HSC there were very few in numbers.

• In Occupation group most of the Investors were Govt. employees, the second
most Investors were Private employees and the least were associated with
Agriculture.

• In family Income group, between Rs. 20,001- 30,000 were more in

numbers, the second most were in the Income group of more than Rs.30,000 and
the least were in the group of below Rs. 10,000.

• About all the Respondents had a Saving A/c in Bank, 76% Invested in
Fixed Deposits, Only 60% Respondents invested in Mutual fund.

• Mostly Respondents preferred High Return while investment, the second

most preferred Low Risk then liquidity and the least preferred Trust.

• Only 67% Respondents were aware about Mutual fund and its
operations and 33% were not.

• Among 200 Respondents only 60% had invested in Mutual Fund and 40%
did not have invested in Mutual fund.

• Out of 80 Respondents 81% were not aware of Mutual Fund, 13% told there
is not any specific reason for not invested in Mutual Fund and 6% told there is
likely to be higher risk in Mutual Fund.
• Most of the Investors had invested in Reliance or UTI Mutual Fund, ICICI
Prudential has also good Brand Position among investors, SBIMF places after
ICICI Prudential according to the Respondents.

• Out of 55 investors of SBIMF 64% have invested due to its

association with the Brand SBI, 27% Invested because of Advisor’s Advice and
9% due to better return.

• Most of the investors who did not invested in SBIMF due to not Aware of
SBIMF, the second most due to Agent’s advice and rest due to Less Return.

• For Future investment the maximum Respondents preferred Reliance Mutual

Fund, the second most preferred ICICI Prudential, SBIMF has been preferred after
them.

• 60% Investors preferred to Invest through Financial Advisors, 25% through

AMC (means Direct Investment) and 15% through Bank.

• 65% preferred One Time Investment and 35% preferred SIP out of both type
of Mode of Investment.

• The most preferred Portfolio was Equity, the second most was
Balance (mixture of both equity and debt), and the least preferred Portfolio was
Debt portfolio.

• Maximum Number of Investors Preferred Growth Option for returns, the

second most preferred Dividend Payout and then Dividend Reinvestment.

• Most of the Investors did not want to invest in Sectoral Fund, only 21%
wanted to invest in Sectoral Fund.
Conclusion

Running a successful Mutual Fund requires complete understanding of the peculiarities of

the Indian Stock Market and also the psyche of the small investors. This study has made
an attempt to understand the financial behaviour of Mutual Fund investors in connection
with the preferences of Brand (AMC), Products, Channels etc. I observed that many of
people have fear of Mutual Fund. They think their money will not be secure in Mutual
Fund. They need the knowledge of Mutual Fund and its related terms. Many of people do
not have invested in mutual fund due to lack of awareness although they have money to
invest. As the awareness and income is growing the number of mutual fund investors are
also growing.

“Brand” plays important role for the investment. People invest in those Companies where
they have faith or they are well known with them. There are many AMCs in Bangalore but
only some are performing well due to Brand awareness. Some AMCs are not performing
well although some of the schemes of them are giving good return because of not
awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known
Brand, they are performing well and their Assets Under Management is larger than
others whose Brand name are not well known like Principle, Sunderam, etc. Distribution
channels are also important for the investment in mutual fund. Financial Advisors are the
most preferred channel for the investment in mutual fund. They can change investors’ mind
from one investment option to others. Many of investors directly invest their money
through AMC because they do not have to pay entry load. Only those people invest
directly who know well about mutual fund and its operations and those have time.
Suggestions and Recommendations

• The most vital problem spotted is of ignorance. Investors should be made

aware of the benefits. Nobody will invest until and unless he is fully convinced.
Investors should be made to realize that ignorance is no longer bliss and
what they are losing by not investing.

• Mutual funds offer a lot of benefit which no other single option could
offer. But most of the people are not even aware of what actually a mutual
fund is? They only see it as just another investment option. So the advisors
should try to change their mindsets. The advisors should target for more and
more young investors. Young investors as well as persons at the height of their
career would like to go for advisors due to lack of expertise and time.

• Mutual Fund Company needs to give the training of the Individual Financial
Advisors about the Fund/Scheme and its objective, because they are the main
source to influence the investors.

• Before making any investment Financial Advisors should first enquire

about the risk tolerance of the investors/customers, their need and time (how long
they want to invest). By considering these three things they can take the customers
into consideration.

• Younger people aged under 35 will be a key new customer group into the
future, so making greater efforts with younger customers who show some interest
in investing should pay off.

• Customers with graduate level education are easier to sell to and there is a
large untapped market there. To succeed however, advisors must provide sound
 advice and high quality.

Systematic Investment Plan (SIP) is one the innovative products launched by Assets
Management companies very recently in the industry. SIP is easy for monthly salaried
person as it provides the facility of do the investment in EMI. Though most of the
prospects and potential investors are not aware about the SIP. There is a large scope for the
companies to tap the salaried persons.
 CHAPTER 8
MY LEARNINGS

My learning’s
SBI gave me a gave me a great opportunity to learn about the mutual funds and this helped
me to know about the current situation of the mutual fund in India.

In few years Mutual Fund has emerged as a tool for ensuring one’s financial well being.
Mutual Funds have not only contributed to the India growth story but have also helped
families tap into the success of Indian Industry. As information and awareness is rising more
and more people are enjoying the benefits of investing in mutual funds. The main reason
the number of retail mutual fund investors remains small is that nine in ten people with
incomes in India do not know that mutual funds exist. But once people are aware of
mutual fund investment opportunities, the number who decide to invest in mutual funds
increases to as many as one in five people. The trick for converting a person with no
knowledge of mutual funds to a new Mutual Fund customer is to understand which of
the potential investors are more likely to buy mutual funds and to use the right
arguments in the sales process that customers will accept as important and relevant to their
decision.

This Project gave me a great learning experience and at the same time it gave me
enough scope to implement my analytical ability. The analysis and advice presented in this
Project Report is based on market research on the saving and investment practices of the
investors and preferences of the investors for investment in Mutual Funds. This Report
helped me to know about the investors’ Preferences in Mutual Fund means Are they prefer
any particular Asset Management Company (AMC), Which type of Product they prefer,
Which Option (Growth or Dividend) they prefer or Which Investment Strategy they
follow (Systematic Investment Plan or One time Plan). This Project as a whole can be
divided into two parts. The first part gives an insight about Mutual Fund and its various
aspects, the Company Profile, Objectives of the study, Research Methodology. One
can have a brief knowledge about Mutual Fund and its basics through the Project.
Bibliography

NEWS PAPERS OUTLOOK

MONEY TELEVISION CHANNEL
(CNBC AAWAJ) MUTUAL FUND
HAND BOOK
FACT SHEET AND STATEMENT

www.sbimf.com

www.moneycontrol.com

www.amfiindia.com

www.onlineresearchonline.com

www.mutualfundsindia.com
ANNEXURE
 Questionnaire

A Study Of Preferences Of The Investors For Investment In

Mutual Funds.

1. Personal Details:

(a). Name:-

(b). Add: - Phone:-

(c). Age:-

(d). Qualification:-

Graduation/PG Under Graduate Others

(e). Occupation. Pl tick (√)
Govt. Ser Pvt. Ser Business Agriculture Others

(g). What is your monthly family income approximately? Pl tick (√).

Up to Rs. 10,001 to Rs. 15,001 to Rs. 20,001 to Rs. 30,001 and

Rs.10,000 15000 20,000 30,000 above

2. While investing your money, which factor will you prefer?

.
(a) Liquidity (b) Low Risk (c) High Return (d) Trust

3. Are you aware about Mutual Funds and their operations? Pl tick (√).Yes No

4. If yes, how did you know about Mutual Fund?

a. Advertisement b. Peer Group c. Banks d. Financial
Advisors
5. Have you ever invested in Mutual Fund? Pl tick (√). Yes No

6. If not invested in Mutual Fund then why?

(a) Not aware of MF (b) Higher risk (c) Not any specific reason

7. If yes, in which Mutual Fund you have invested? Pl. tick (√). All applicable.
a. SBIMF b. UTI c. d. e. Kotak f. Other. specify
HDFC Reliance
8. If invested in SBIMF, you do so because (Pl. tick (√), all applicable).
a. SBIMF is associated with State Bank of India.
b. They have a record of giving good returns year after year.
c. Agent’ Advice

9. If NOT invested in SBIMF, you do so because (Pl. tick (√) all applicable).
a. You are not aware of SBIMF.
b. SBIMF gives less return compared to the others.
c. Agent’ Advice

10. When you plan to invest your money in asset management co. which AMC
will you prefer?

Assets Management Co.

a. SBIMF
b. UTI
c. Reliance
d. HDFC
e. Kotak
f. ICICI

11. Which Channel will you prefer while investing in Mutual Fund?

(a) Financial Advisor (b) Bank (c) AMC

12. When you invest in Mutual Funds which mode of investment will you
prefer? Pl. tick (√).

a. One Time Investment b. Systematic Investment Plan (SIP)

13. When you want to invest which type of funds would you choose?

a. Having portfolio equity portfolio. c.

only debt b. Having debt Only equity portfolio.

14. How would you like to receive the returns every year? Pl. tick (√).

a. Dividend payout b. Dividend re-investment c. Growth in NA

15. Instead of general Mutual Funds, would you like to invest in sectorial
funds?
Please tick (√).Yes No