An Overview of Mutual Funds Bcom Project.pdf

A PROJECT REPORT
(Submitted for the Degree of B.Com Honours in Accounting &
Finance under the University of Calcutta)
An Overview of Mutual Funds
Submitted by
Name: ____________
Registration No.: ____________
Roll No.: _________
Name of College: ___________________
Supervised by:
Name of the Supervisor:

An Overview Of Mutual Fund
2
Annexure-I
This is to certify that _________ a student of B.Com Honours in Accounting & Finance of
_________________ College under the University of Calcutta has worked under my supervision
and guidance for his Project Work and prepared a Project Report with a title “AN OVERVIEW
OF MUTUAL FUNDS”
The project report which he is submitting, is his genuine and original work to the best of my
knowledge.
Signature:
Place Name:
Date: Designation:
Name of college: _____________________________
Annexure-II
I hereby declare that the Project Work with the title “AN OVERVIEW OF MUTUAL FUNDS”
submitted by me for the partial fulfillment of the degree of B.Com Honours in Accounting &
Finance under the University of Calcutta is my original work and has not been submitted earlier to
any other University for the fulfillment of the requirement of any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this
report from any earlier work done by others or by me. However extracts of any literature which
has been used for this report has been duly acknowledged providing details of such literature in
the references.
Signature:
Place: Name: ________________
Date: Registration No.: ___________
Roll No.:_____________

3
Acknowledgement
At the successful completion of this project, I would like to express my sincere gratitude to all the
people without whose support this project would not be completed.
At the onset I would like to thank my institute “_________________________________ College”
for giving us this opportunity to undergo this research project at the very under graduation level.
I would also like to acknowledge the constant help and encouragement of my mentors who have
given their valuable suggestions and expert guide and support.
I would also like to thank all those who have directly or indirectly helped me in this report.

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EXECUTIVE SUMMARY
Mutual Funds constitute a part of a wide spectrum of financial services involving management of
funds by investing in various financial instruments on behalf of various individuals among others.
Individuals interested to invest in these financial instruments provide the money to the mutual
funds that do the requisite research and invest it appropriately. Mutual Funds are the ideal
investment vehicle for today’s complex and modern financial scenario. Markets for equity shares,
bonds, derivatives and other assets have become mature and information-driven.
A Mutual Fund appoints professionally qualified and experienced managers who carry out each
function in a way to increase the returns on the money invested by the people. The last few years
have been very exciting for the Mutual Funds industry in India. New players have come in, while
others have decided to close shop by either selling off or merging with others.
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.
This project can be divided into two parts. The first part gives an insight about Mutual Fund and
its various aspects. One can have a brief knowledge about Mutual Fund and its basics through the
Project. The second part gives a complete brief of the Mutual Fund Industry in India and its future
with an analysis of various problems faced by it and the plausible solutions.

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Contents
Serial No. Particulars Page No.
1 Mutual fund - An Introduction 6
2 History of Mutual Funds 8
3 Mutual Funds Industry In India. 9
4 Mutual Funds: Fund Objective 11
5 Different Plans that Mutual Funds Offer. 14
6 Securities and Exchange Board of India- SEBI. 16
7 Functions & Objectives of SEBI. 17
8 Working of Mutual fund. 19
9 Pros and Cons Of Investing in Mutual funds. 20
10 Types of Mutual Funds. 21
11 SBI Mutual Fund 24
12 Mutual Funds-Conclusion 27
.
13 Sources and References 28

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Mutual Fund-An Introduction
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 invested by the fund manager in different types of
securities depending upon the objective of the scheme. These could range from shares to
debentures to money market instruments. The income earned through these investments and the
capital appreciations realized by the scheme are 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 portfolio at a relatively low cost.
The small savings of all the investors are put together to increase the buying power and hire a
professional manager to invest and monitor the money. Anybody with an investible surplus of as
little as a few thousand rupees can invest in Mutual Funds. Each Mutual Fund scheme has a
defined investment objective and strategy.
Investments may be in stocks, bonds, money market securities or some combination of these.
Those securities are professionally & efficiently managed on behalf of the shareholders, and each
investor holds a pro rata share of the portfolio -- entitled to any profits when the securities are
sold, but subject to any losses in value as well.

7
The flow chart below describes broadly the working of a Mutual Fund:

8
History Of Mutual Fund
History of Mutual Funds has evolved over the years and it is sure to appear as something very
interesting for all the investors of the world. In present world, mutual funds have become a main
form of investment because of its diversified and liquid features. Not only in the developed world,
but in the developing countries also different types of mutual funds are gaining popularity very
fast in a tremendous way
There is an ambiguity about the fact that when and where the Mutual Fund Concept was
introduced for the first time. According to some historians, the mutual funds were first introduced
in Netherlands in 1822. But according to some other belief, the idea of Mutual Fund first came
from a Dutch Merchant ling back in 1774. In 1822, that idea was further developed. In 1822, the
concept of Investment Diversification was properly incorporated in the mutual funds. In fact,
the Investment Diversification is the main attraction of mutual funds as the small investors are
also able to allocate their little Funds in a diversified way to lower Risks.
The modern day mutual funds came into existence in 1924, in Boston. Massachusetts Investors
Trust introduced the Modern Mutual Funds and the funds were available from 1928. At present
this Massachusetts Investors Trust is known as MFS Investment Management Company..
Still today, the funds are evolving and improving in order to offer people much wider choices and
better advantages for fulfillment of their various investment needs and financial objectives.

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Mutual Fund Industry In India
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund
by UTI in the year 1963. 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 dramatic improvements, both quality
wise as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the
Assets under Management (AUM) were Rs. 67bn. The private sector entry to the fund family
raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540
bn.

10
Mutual fund is one of the investment instruments, where you provide your money to a fund house
and authorize them to invest and manage your money. In return, the fund house pays back through
dividends/bonus..
There can be different type -
1) Equity Oriented (High Risk, High return): Go for this, if you can take high risk. This type of
fund usually put your 100% money in Equity market, which is very much volatile
2) Hybrid/Balanced fund [Medium risk, Avg Return]: this type of fund invest your money in both
Equity market and Govt Bonds in 50-50 ratio.
3) Bond MF [Low risk, Return greater than Bank Fixed deposit]: These funds put money in Govt
bonds, RBI bonds etc, which are generally backed up for insured return.
The name "Mutual Fund" itself reveals you that it is invested mutually. The point is investment
is not made individually but on behalf of everyone participating in it.

11
Mutual Funds: Fund Objective
A fund tells you what it wants to achieve and how it plans to do it.
Each mutual fund has an investment objective — a goal or financial result it wants to realize. And
each fund manager has an investment style, which is the approach he or she follows in making
investments to achieve the fund's goal.
Most fund objectives fit into one of several broad categories, such as growth in value,
current income, or a combination of growth and income. For example, a growth fund selects
investments that seem likely to increase in value over time. An income fund, on the other hand,
targets investments that it expects to generate revenue, such as stock dividends.
1.Diversification
Investors are often advised that they shouldn't "put all their eggs in one basket." Investors who
have too high of a percentage of their assets in one or two stocks can be severely affected if one of
the companies goes belly-up. Most financial experts say investors should have at least 15 stocks in
their portfolios.
2.Growth
Some mutual fund investors are looking for rapid growth in the value of their funds. Stocks have
historically offered the best long-term returns of any asset class, though it can be an up-and-down
ride.
3.Income
Other fund investors care more about receiving income from their investments. Numerous stock
funds invest in companies with high dividend payouts. Bond funds also can provide steady
income, as can funds that invest in real estate investment trusts, or REITs.
4.International Exposure
Some large international firms offer their shares on U.S. markets, but others don't. For example,
individual investors can have a hard time getting access to shares in the fast-growing Chinese
market.
5.Low Fees
Stock picking can be expensive thanks to broker commissions, but many "no-load" mutual funds
are available that don't charge investors anything. Many other funds charge investors less than 1
percent a year for operational fees.
Other times, the objective may be quite focused and reflect social, political, or religious interests.
For example, some socially conscious funds buy stock in companies whose products and services
are acceptable to investors who want to avoid tobacco, firearms, gambling, or a range of other
activities. Others, called green funds, buy only the stocks of environmentally friendly companies.

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HANDLING CAPITAL
The money you invest in a mutual fund is called your capital. If this base amount increases in
value, the growth is called capital appreciation.
Every mutual fund, especially those whose objective is capital appreciation, carries some risk that
the value of your investment will shrink. This possibility is known as the risk to capital.
Your capital may be at risk for one of two reasons:
▪ The fund's underlying investments may drop in value
▪ The fund might have to sell investments at a loss to meet its obligation to buy back shares from
investors who want to sell.
Investing Style
Many funds share an investment objective, such as long-term growth or growth and income. But
those funds are likely to produce different results, both in the short term and over longer periods.
That's because the managers who make the fund's buy and sell decisions follow
different investment styles.
For example, one manager might pursue capital appreciation by buying undervalued stocks in
mature companies whose prices are low because their products or services are out of favor with
investors, or they have had management or other problems. The manager's expectation is that
some or all of the prices will rebound and increase the value of the fund. This style is described
as value investing.

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RISK FACTORS OF MUTUAL FUNDS
The Risk-Return Trade-off:
The most important relationship to understand is the risk-return trade-off. Higher the risk greater
the returns/loss and lower the risk lesser the returns/loss.
Hence it is upto you, the investor to decide how much risk you are willing to take. In order to do
this you must first be aware of the different types of risks involved with your investment decision.
Market Risk: Sometimes prices and yields of all securities rise and fall. Broad outside influences
affecting the market in general lead to this. This is true, may it be big corporations or smaller mid-
sized companies. This is known as Market Risk. A Systematic Investment Plan (“SIP”) that works
on the concept of Rupee Cost Averaging (“RCA”) might help mitigate this risk.
Credit Risk: The debt servicing ability (may it be interest payments or repayment of principal) of
a company through its cashflows determines the Credit Risk faced by you. This credit risk is
measured by independent rating agencies like CRISIL who rate companies and their paper. A
‘AAA’ rating is considered the safest whereas a ‘D’ rating is considered poor credit quality. A
well-diversified portfolio might help mitigate this risk.
Inflation Risk: Things you hear people talk about:
"Rs. 100 today is worth more than Rs. 100 tomorrow."
"Remember the time when a bus ride costed 50 paise?"
"Mehangai Ka Jamana Hai."
The root cause, Inflation. Inflation is the loss of purchasing power over time. A lot of times people
make conservative investment decisions to protect their capital but end up with a sum of money
that can buy less than what the principal could at the time of the investment.
Interest Rate Risk: In a free market economy interest rates are difficult if not impossible to
predict. Changes in interest rates affect the prices of bonds as well as equities. If interest rates rise
the prices of bonds fall and vice versa. Equity might be negatively affected as well in a rising
interest rate environment. A well-diversified portfolio might help mitigate this risk.
Political/Government Policy Risk: Changes in government policy and political decision can
change the investment environment. They can create a favorable environment for investment or
vice versa.
Liquidity Risk: Liquidity risk arises when it becomes difficult to sell the securities that one has
purchased. Liquidity Risk can be partly mitigated by diversification, staggering of maturities as
well as internal risk controls that lean towards purchase of liquid securities.

14
Different plans that mutual funds offer
To cater to different investment needs, Mutual Funds offer various investment options. Some of
the important investment options include:
Growth Option
Dividend is not paid-out under a Growth Option and the investor realises only the capital
appreciation on the investment (by an increase in NAV).
Dividend Payout Option
Dividends are paid-out to investors under the Dividend Payout Option. However, the NAV of the
mutual fund scheme falls to the extent of the dividend payout.
Insurance Option
Certain Mutual Funds offer schemes that provide insurance cover to investors as an added benefit.
Best Tax Savings Mutual Funds
Investment in ELSS Mutual Funds is considered to be one of the best option to save tax because
of many reasons like low expenses, short lock-in period of 3 years, high liquidity and high growth
in long-term. Year 2008 and 2009 had been extremely volatile. Still, many mutual funds have
delivered positive return in past 3 years.
To select mutual funds is not a herculean task, but it should not be whimsical decision either. To
do our part, we have come out with a list of 5 Best Tax Saving ELSS Mutual Funds in which
investors should invest this season.

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Following are the Top 5 funds in alphabetical order:
Birla Sun Life Tax Relief 2010
• 3 Years Return – 7.90%
• 5 years return – 22.21%
• Return since Inception – 32.80%
Canara Robeco Can Equity Tax Saver
HDFC Tax Saver
ICICI Prudential Tax Plan
SBI Magnum Tax Gain Scheme 93

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Securities and Exchange Board of India – SEBI
What Does Securities And Exchange Board Of India - SEBI Mean?
The regulatory body for the investment market in India. The purpose of this board is to maintain
stable and efficient markets by creating and enforcing regulations in the marketplace.
Investopedia explains Securities And Exchange Board Of India - SEBI
The Securities and Exchange Board of India is similar to the U.S. SEC. The SEBI is
relatively new (1992) but is a vital component in improving the quality of the financial markets in
India, both by attracting foreign investors and protecting Indian investors.

17
Functions & Objectives of SEBI
Functions of SEBI
Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-
statutory body for regulating the securities market. It became an autonomous body in 1992 and
more powers were given through an ordinance. Since then it regulates the market through its
independent powers.
Some of the major functions of SEBI are:
• “SEBI is expected to regulate the business in stock exchanges and any other securities
markets.
• “Registering and regulating the working of collective investment schemes, including mutual
funds is a responsibility of SEBI.
•“SEBI is responsible for prohibiting fraudulent and unfair trade practices relating to securities
markets.
•“Prohibiting insider trading in securities, with the imposition of monetary penalties, on erring
market intermediaries.
•“Regulating substantial acquisition of shares and takeover of companies.
•"Calling for information from, carrying out inspection, conducting inquiries and audits of the
stock exchanges and intermediaries and self regulatory organizations in the securities market.
Keeping this in mind, SEBI has issued a new set of comprehensive guidelines governing issue of
shares and other financial instruments, and has laid down detailed norms for stock-brokers and
sub-brokers, merchant bankers, portfolio managers and mutual funds.
•“To promote investor's education and training of intermediaries of securities markets.
•Fraudulent and Unfair Trade Practices
Regulates Capital Market.
Checks Trading of securities.
Checks the malpractices in securities market.
It enhances investor's knowledge on market by providing education.
It regulates the stockbrokers and sub-brokers.
To promote Research and Investigation.

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Objectives of SEBI
As an important entity in the market it works with following objectives:
• It tries to develop the securities market.
• Promotes Investors Interest.
• Makes rules and regulations for the securities market.
• to protect the interests of investors in securities;
• to promote the development of Securities Market;
• to regulate the securities market and
• for matters connected therewith or incidental thereto.

19
Working of Mutual Fund
Regulatory Authorities
To protect the interest of the investors, SEBI formulates policies and regulates the mutual funds. It
notified regulations in 1993 (fully revised in 1996) and issues guidelines from time to time. MF
either promoted by public or by private sector entities including one promoted by foreign entities
is governed by these Regulations.
SEBI approved Asset Management Company (AMC) manages the funds by making investments
in various types of securities. Custodian, registered with SEBI, holds the securities of various
schemes of the fund in its custody.
According to SEBI Regulations, two thirds of the directors of Trustee Company or board of
trustees must be independent.
The Association of Mutual Funds in India (AMFI) reassures the investors in units of mutual funds
that the mutual funds function within the strict regulatory framework. Its objective is to increase
public awareness of the mutual fund industry.
AMFI also is engaged in upgrading professional standards and in promoting best industry
practices in diverse areas such as valuation, disclosure, transparency etc.

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Pros & cons of investing in mutual funds:
For investments in mutual fund, one must keep in mind about the Pros and cons of investments in
mutual fund.
Advantages of Investing Mutual Funds:
1. Economies of Scale - Mutual fund buy and sell large amounts of securities at a time, thus help
to reducing transaction costs, and help to bring down the average cost of the unit for their
investors.
2. Liquidity - Just like an individual stock, mutual fund also allows investors to liquidate their
holdings as and when they want.
3. Simplicity - Investments in mutual fund is considered to be easy, compare to other available
instruments in the market, and the minimum investment is small. Most AMC also have automatic
purchase plans whereby as little as Rs. 2000, where SIP start with just Rs.50 per month basis.
Disadvantages of Investing Mutual Funds:
1.Costs – The biggest source of AMC income is generally from the entry & exit load which they
charge from investors, at the time of purchase.
2.Dilution - Because funds have small holdings across different companies, high returns from a
few investments often don't make much difference on the overall return. Dilution is also the result
of a successful fund getting too big.
3.Taxes - when making decisions about your money, fund managers don't consider your personal
tax situation. For example, when a fund manager sells a security, a capital-gain tax is triggered,
which affects how profitable the individual is from the sale.

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Types of Mutual Funds
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.
Open-ended Fund
An open-ended Mutual fund is one that is available for subscription and repurchase on
a continuous basis. These Funds do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.
Close-ended Fund
A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at
least one of the two exit routes is provided to the investor i.e. either repurchase facility or through
listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis.
Fund according to Investment Objective:
A scheme can also be classified as growth fund, income fund, or balanced fund considering its
investment objective. Such schemes may be open-ended or close-ended schemes as described
earlier. Such schemes may be classified mainly as follows:
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long- term. Such
schemes normally invest a major part of their corpus in equities. Such funds have comparatively

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high risks. These schemes provide different options to the investors like dividend option, capital
appreciation, etc. and the investors may choose an option depending on their preferences. The
investors must indicate the option in the application form. The mutual funds also allow the
investors to change the options at a later date. Growth schemes are good for investors having a
long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Government
securities and money market instruments. Such funds are less risky compared to equity schemes.
These funds are not affected because of fluctuations in equity markets. However, opportunities of
capital appreciation are also limited in such funds. The NAVs of such funds are affected because
of change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely to
increase in the short run and vice versa. However, long term investors may not bother about these
fluctuations.
Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such schemes invest
both in equities and fixed income securities in the proportion indicated in their offer documents.
These are appropriate for investors looking for moderate growth. They generally invest 40-60% in
equity and debt instruments. These funds are also affected because of fluctuations in share prices
in the stock markets. However, NAVs of such funds are likely to be less volatile compared to pure
equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term instruments
such as treasury bills, certificates of deposit, commercial paper and inter-bank call money,
government securities, etc. Returns on these schemes fluctuate much less compared to other
funds. These funds are appropriate for corporate and individual investors as a means to park their
surplus funds for short periods.
Gilt Fund
These funds invest exclusively in government securities. Government securities have no default
risk. NAVs of these schemes also fluctuate due to change in interest rates and other economic
factors as is the case with income or debt oriented schemes.
.

23
Types of returns
There are three ways, where the total returns provided by mutual funds can be enjoyed by
investors:
Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all
income it receives over the year to fund owners in the form of a distribution.
If the fund sells securities that have increased in price, the fund has a capital gain. Most funds also
pass on these gains to investors in a distribution.

24
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 Société Générale 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. 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.
PRODUCTS OF SBI MUTUAL FUND
Equity schemes:
The investments of these schemes will predominantly be in the stock markets and endeavor will
be to provide investors the opportunity to benefit from the higher returns which stock market can
provide.
• 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
• SBI Arbitrage Opportunities Fund
• SBI Blue chip Fund
• SBI Infrastructure Fund - Series I
• SBI Magnum Taxgain Scheme 1993

25
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.
• Magnum Children’s benefit Plan
• Magnum Gilt Fund
• Magnum Income Fund
• Magnum Insta Cash Fund
• Magnum Income Fund- Floating Rate Plan
• Magnum Income Plus Fund
• Magnum Insta Cash Fund -Liquid Floater Plan
• Magnum Monthly Income Plan
• Magnum Monthly Income Plan- Floater
• Magnum NRI Investment Fund
• SBI Premier Liquid Fund
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.
COMPETITORS OF SBI MUTUAL FUND
Some of the main competitors of SBI Mutual Fund in Dehradoon 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
Equity mutual funds invest more than 65% of the funds in equities and equity related
instruments.The chart below is regarding the performance comparison of the equity schemes
available in SBI Mutual Funds.After the performance is analysed, the schemes are sorted out
based on the performance for the past 1 year.From the data, an investor can choose the best
scheme which are consistently performing for the past 6 months and 3 years.This would help one
to invest in the best SBI scheme.

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PERFORMANCE CHART OF SBI EQUITY MUTUAL FUND AS ON SEPT,2012

27
Conclusion
Mutual funds are funds that pool the money of several investors to invest in equity or debt
markets. Mutual Funds could be Equity funds, Debt funds or balanced funds.
.The mutual fund industry in India has prospered due to transparency and disclosures. Most fund
houses come out with a fund fact sheet for each scheme every month. They provide information
about the investment particulars of the corpus (company and sector-wise), credit ratings, market
value of investments, NAVs, returns, repurchase and sale price of the schemes.
A fund house normally comes out with various publications which contain the scheme’s
objectives, fund manager’s commentary on the portfolio, market outlook, etc. The aim is to help
an investor take an informed decision to invest, stay invested or redeem out of the fund. It is upto
the investor i.e. you, to make the best use of it.
Mutual Fund in India has emerged as a critical institutional linkage among various financial
segments like savings, capital markets and the corporate sector. As various taxes the government
offers incentives and benefits on mutual funds investment, their role in the mobilization of savings
and the development of the economy will assume more significance. They provide much needed
impetus to direct and indirect support to the corporate sector.
Above all, mutual funds have given a new direction to the flow of personal savings and enabled
small medium investors in remote rural and semi rural area to reap the benefits of stock markets
investments. Indian mutual funds are thus playing a very crucial development role in allocating
resources in the emerging market economy.

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SOURCES AND REFERENCES
Websites of:
Association of Mutual Funds in India
Reserve Bank of India
Securities and Exchange Board of India
Census India
IIMS Dataworks
Planning Commission of India
International Forum for Investor Education
Investment Company Institute
Cerulli Associates
Monitor Group
Nomura Institute of Capital Markets Research
Press reports from:
http://www.economictimes.com
http://www.livemint.com
http://www.moneycontrol.com
http://www.theindiastreet.com
http://www.mutualfundsindia.com

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