A Project Report Presentation

On
SBI Mutual Fund
Presented by

Master In Business Administration
-College Name
What is Mutual Funds?
Mutual Fund is
A Mutual Fund is a trust that pools the savings of a number of
investors who share a common financial goal.

Anybody with an investible surplus of as little as a few
thousand rupees can invest in Mutual Funds.

These investors buy units of a particular Mutual Fund scheme
that has a defined investment objective and strategy.

The money collected is invested by the fund manager in
different types of securities. These could range from shares to
debentures to money market instruments, depending upon the
schemes stated objectives.

The income earned through these investments and the capital
appreciation realized by the scheme are shared by its unit
holders in proportion to the number of units owned by them.
Flow Chart of Mutual Fund..
About SBI Mutual Fund..

SBI Mutual Fund is one of the best
and the top mutual fund investment
company among mutual funds
companies in India. SBI mutual fund
offers variety of funds
Advantage of Mutual Funds
Portfolio Diversification
Professionally Management
Diversification of Risk
Wide Choice to Investor for MF
Liquidity
Convenience & flexibility
Transparency
Disadvantage of Mutual Fund
No Control Over Cost
Redemption Charges if Withdrawn
No Standard Portfolios
No Guarantee of Returns
Subject to Market Risk
Types Of Mutual Fund
Type of
Mutual Fund
Schemes
Structure
Investment
Objective
Special
Schemes

Open Ended
Funds
Close Ended
Funds
Interval Funds
Growth Funds
Income Funds
Balanced Funds
Money Market
Funds
Industry Specific
Schemes
Index
Schemes
Sectoral
Schemes
Types of Mutual Funds SBI MF
Serve
Open-end Fund
Available for sale and repurchase at all times based on the net
asset value (NAV) per unit.
Unit capital of the fund is not fixed but variable.
Fund size and its total investment go up if more new subscriptions
come in than redemptions and vice-versa.

Closed-end Fund
One time sale of fixed number of units.
Investors are not allowed to buy or redeem the units directly from
the funds. Some funds offer repurchase after a fixed period. For
example, UTI MIP offers a repurchase after 3 years.
Listed on stock exchange and investors can buy or sell units
through the exchange.
Units maybe traded at a discount or premium to NAV based on
investors perception about the funds future performance and other
market factors.


Mutual Fund Types
Money Market Funds/Cash Funds
Invest in securities of short term nature I.e. less than one
year maturity.
Invest in Treasury bills issued by government, Certificates of
deposit issued by banks, Commercial Paper issued
companies and inter-bank call money.
Aim to provide easy liquidity, preservation of capital and
moderate income.

Gilt Funds
Invest in Gilts which are government securities with medium
to long term maturities, typically over one year.
Gilt funds invest in government paper called dated securities.
Virtually zero risk of default as it is backed by the
Government.
It is most sensitive to market interest rates. The price falls
when the interest rates goes up and vice-versa.

Debt Funds
Debt Funds/Income Funds
Invest in debt instruments issued not only by
government, but also by private companies,
banks and financial institutions and other entities
such as infrastructure companies/utilities.
Target low risk and stable income for the
investor.
Have higher price fluctuation as compared to
money market funds due to interest rate
fluctuation.
Have a higher risk of default by borrowers as
compared to Gilt funds.
Debt funds can be categorized further based on
their risk profiles.
Carry both credit risk and interest rate risks.


Equity Funds
Invest a major portion of their corpus in equity
shares issued by companies, acquired directly in
initial public offering or through secondary market
and keep a part in cash to take care of
redemptions.

Risk is higher than debt funds but offer very high
growth potential for the capital.

Equity funds can be further categorized based
on their investment strategy.

Equity funds must have a long-term objective.

Hybrid Funds
Balanced Funds:
Has a portfolio comprising of debt
instruments, convertible securities,
preference and equity shares.
Almost equal proportion of debt/money
market securities and equities. Normally
funds maintain a Equity-Debt ratio of 55:45 or
60:40.
Objective is to gain income, moderate capital
appreciation and preservation of capital.
Ideal for investors with a conservative and
long-term orientation.


Probability of Returns
SBI MF Growth from 2006-
2012
0
500000
1000000
1500000
2000000
2500000
3000000
3500000
4000000
4500000
5000000
Series1
CONCLUSION

After studying & analyzing different
mutual fund schemes the following
conclusions can be made:
Diversified stock portfolios have offered
superior long term inflation protection
Portfolio managers have done a fairly
good job in generating positive returns
Those who want to eliminate the risk
element should invest in MF
The Performance of SBIMF is good, and
there is more prospect chances.
Thanks