Project Report on Customer Awareness of SBI Mutual Fund

Description
This project was conducted so as to understand the concept of Mutual Funds and its usage as an investment avenue.

Project Report on Customer Awareness of Sbi Mutual Fund
TABLE OF CONTENT
S.NO PARTICULAR PAGE
NO
1.
EXECUTIVE SUMMARY 03
2.
INTRODUCTION TO BANKING
INDUSTRIES
06
3.
HISTORY OF STATE BANK OF INDIA 07
4.
SBI LIFE INSURANCE 12
.
INTRODUCTION TO MUTUAL FUND 2
6.
ANALYSIS AND FINDINGS 4
7.
FINDINGS !
!.
SUGGESTIONS "
".
CONCLUSION 60
10.
REFERENCES 61
11.
ANNEXURE 62
Project Report on Customer Awareness of Sbi Mutual Fund
EXECUTIVE SUMMARY
TITLE OF THE STUDY
#OVER ALL STUDY OF SBI LIFE INSURANCE AND CUSTOMER
A$ARNESS LEVEL ABOUT SBI MUTUAL FUND
IN BELGAUM CITY%
INTRODUCTION
SUMMARY OF THE COMPANY
S&'&( B')* +, I)-.'
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T/0( Public 3)S4 NS$ S)I5 6 3LS$ S)ID5
F+1)-(- Calcutta4 78-9 3as )an' of Calcutta5
H('-21'3&(34
Corporate Center4
Madame Cama Road4
Mumbai :-- -;7 India
K(/ 0(+05( C6'.37') 2M PRA<AS= )=A!!
I)-14&3/
)an'in(
Insurance
Capital Mar'ets and allied industries
P3+-18&4 Loans4 Credit Cards4 Sa+in(s4 In+estment +e#icles4 S)I Life 3Insurance5 etc&
R(9()1( 38382.42 cror 3;--9 4Marc# 5
$4.&( www &stateban'ofindia &com
Project Report on Customer Awareness of Sbi Mutual Fund
T+0.8 +, &6( 4&1-/$
>2+er all stud? of sbi life insurance and customer awareness about sbi mutual
fund in )el(aum cit?@
!#is project was conducted so as to understand t#e concept of Mutual Funds and
its usa(e as an in+estment a+enue& !#e stud? also aims to find out t#e awareness of
mutual funds and its preference o+er ot#er in+estments& !#e project was underta'en at
state ban' of India )el(aum@
T6( +:;(8&.9(4 +, &6( 4&1-/ .)851-(<
? !o o+er all stud? about S)I life insurance and mutual fund
? !o find out mar'et potential for mutual funds&
? !o find out t#e factors4 w#ic# influence to in+estin( in mutual funds&
? !o find out attributes in+estors loo' for w#ile bu?in( mutual funds&
M? fieldwor' in+ol+ed +isitin( t#e people w#o #a+e in+ested in mutual funds and
w#o #a+e not purc#ased mutual funds and also c#artered accountants to 'now w#et#er t#e?
#a+e in+ested in mutual funds or not and also t#e reasons for t#eir in+estment % non*
in+estment&
R(4('386 M(&6+-+5+=/<
For collectin( data4 I used Auestionnaire and interaction wit# people& !#e primar?
data was collected t#rou(# interaction wit# t#e people I +isited4 and secondar? data was
collected from boo's4 ma(aBines4 websites etc&&
S'705( F3'7(< People w#o #a+e in+ested in mutual funds and w#o #a+e not in+ested in
Mutual funds&
S'705( 4.>( < 7-- respondents
S'705( U).& <
7& )an' mplo?ees
;& Ud?amba( entrepreneurs
C& 1o+ernment emplo?ees
:& Stoc' Dealers in )el(aum cit?
,& )usinessmen&
S'705.)= M(&6+- < Simple random samplin( tec#niDue&
Project Report on Customer Awareness of Sbi Mutual Fund
#S.705( 3')-+7 4'705.)= 7(')4 (9(3/ (5(7()& .4 4(5(8&(- .)-(0()-()&5/ +,
(9(3/ +&6(3 (5(7()& ')- &6( 4'705( .4 -3'?) :/ ' 3')-+7 03+8(-13( ,3+7 '
4'705.)= ,3'7(.%
T++54 14(- ,+3 &6( 4&1-/<
? 1rap#ical Representation
? SPSS Software
? 2t#er related statistical tec#niDue li'e factor anal?sis etc
!#e difficult? faced durin( t#e fieldwor' was not (ettin( t#e appointments of t#e
respondents since t#e? were +er? bus? and some were non*cooperati+e& Moreo+er4 time
limitation was t#ere& !#e data anal?sis is done b? usin( codin( s#eet4 SPSS software4
statistical tec#niDues etc&
INTRODUCTION TO BANKING INDUSTRIES
S&'&( B')* +, I)-.'<
Project Report on Customer Awareness of Sbi Mutual Fund
3S)I55 is t#e lar(est ban' in India& If one measures b? t#e number of branc#
offices and emplo?ees4 S)I is t#e lar(est ban' in t#e world& stablis#ed in 78-9 as ban'
of )en(al4 it is t#e oldest commercial ban' in t#e Indian Subcontinent& S)I pro+ides
+arious domestic4 international and NRI products and ser+ices4 t#rou(# its +ast networ'
in India and o+erseas& Eit# an asset base of F7;9 billion and its reac#4 it is a re(ional
ban'in( be#emot#& !#e (o+ernment nationaliBed t#e ban' in 7G,,4 wit# t#e Reser+e ban'
of India ta'in( a 9-H owners#ip sta'e& In recent ?ears t#e ban' #as focused on two
priorities4 754 reducin( its #u(e staff t#rou(# 1olden #ands#a'e sc#emes 'nown as t#e
Ioluntar? Retirement Sc#eme4 w#ic# saw man? of its best and bri(#test defect to t#e
pri+ate sector4 and ;54 computeriBin( its operations&
State )an' of India 3S)I5 is IndiaJs lar(est commercial ban'& S)I #as a +ast
domestic networ' of o+er G--- branc#es 3appro.imatel? 7:H of all ban' branc#es5 and
commands one*fift# of deposits and loans of all sc#eduled commercial ban's in India&
!#e State )an' 1roup includes a networ' of ei(#t ban'in( subsidiaries and se+eral non*
ban'in( subsidiaries offerin( merc#ant ban'in( ser+ices4 fund mana(ement4 factorin(
ser+ices4 primar? dealers#ip in (o+ernment secure credit cards and insurance&
!= I1=! )AN<IN1 SU)SIDIARIS AR$
7 *State )an' of )i'aner and Kaipur 3S))K5
; *State )an' of =?derabad 3S)=5
C *State )an' of India 3S)I5
: *State )an' of Indore 3S)IR5
, *State )an' of M?sore 3S)M5
9 *State )an' of Patiala 3S)P5
L *State )an' of Sauras#tra 3S)S5
8 *State )an' of !ra+ancore 3S)!5
HISTORY OF STATE BANK OF INDIA
EVOLUTION OF SBI EVOLUTION OF SBI
Project Report on Customer Awareness of Sbi Mutual Fund
!#e ori(in of S)I (oes bac' to t#e first decade of t#e nineteent# centur? wit# t#e
establis#ment of t#e ban' of Calcutta in Calcutta on ; Kune 78-9& !#ree ?ear later t#e
ban' recei+ed its c#arter and was redesi(ned as t#e ban' of )en(al 3; Kanuar? 78-G5& A
uniDue institution4 it was t#e first joint stoc' ban' of )ritis# India sponsored b? t#e
(o+ernment of )en(al& !#e ban' of )omba? 37,
t#
April 78:-5 and t#e ban' of madras 3I
Kul? 78:C5 followed b? ban' of )en(al& !#ese t#ree ban's remained at t#e ape. of
modern ban'in( in India till t#eir amal(amation as t#e imperial ban' of India on ;L
Kanuar? 7G;7&
Primaril? An(lo*Indian creation4 t#e t#ree presidenc? ban's came into e.istence eit#er as
a result of t#e compulsion of imperial finance or b? t#e felt needs of local uropean
commerce and were not imposed from outside in an arbitrar? manner to moderniBe
IndiaMs econom?& !#eir e+olution was4 #owe+er
S#aped b? ideas culled from similar de+elopments in urope and n(land and was
influenced b? c#an(es occurrin( in t#e structure of bot# t#e local tradin( en+ironment
and t#ose in t#e relation of t#e Indian econom? to t#e econom? of urope and t#e (lobal
econom? frame wor's
E4&':5.467()&4
!#e establis#ment of ban' of )en(al mar'ed t#e ad+ent of limited liabilit?4 joint stoc'
ban'in( in India4 so was t#e associated in ban'in( +iB t#e decision to allow t#e ban' of
)en(al to issue notes4 w#ic# would be accepted (oes t#e pa?ments of public re+enues
wit#in a restricted (eo(rap#ical area4 t#is ri(#t of note issue was +er? +aluable not onl?
for t#e ban' of )en(al but also its two siblin(s4 #e ban's of )omba? and madras4 it
meant an accretion to t#e capital of t#e ban'4 a capital on w#ic# t#e proprietors did not
#a+e to pa? an? interest & !#e concept of deposit ban'in( was also an inno+ation because
t#e practice of acceptin( mone? for safe 'eepin( 3in some cases e+en in+estment on
be#alf of t#e clients5 b? t#e indi(enous ban'ers #ad not spread as a (eneral #abit in most
parts of India4 but for lon( time& And especiall? up to t#e time& ac# c#arter pro+ided for
a s#are capital& Four fift# of w#ic# were pri+atel? subscribed and t#e rest owned b? t#e
Project Report on Customer Awareness of Sbi Mutual Fund
pro+incial (o+t t#e member of t#e broad director4 w#ic# mana(ed t#e affair eac# ban'4
were mostl? proprietar? directors representin( t#e lar(e uropean mana(in( a(enc?
#ouse of India& !#e rest were (o+ernment nominees4 in+ariabl? ci+il ser+ant4 one of
w#om was elected as t#e president of t#e board&
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PROFILE PROFILE
Spreadin( its arms around t#e world4 t#e SBI@4 I)&(3)'&.+)'5 B')*.)= G3+10 deli+ers
t#e full ran(e of cross*border finance solutions t#rou(# its four win(s O t#e Domestic
di+ision4 t#e Forei(n 2ffices di+ision4 t#e Forei(n Department and t#e International
Ser+ices di+ision&
!#e Domestic win( pro+ides ser+ices li'e 7(386')& :')*.)=A 46.00.)= ,.)')8( ')-
03+;(8& (B0+3& ,.)')8(& !#e Forei(n 2ffices win( offers t#e entire ran(e of international
trade and industrial finance products4 w#ile t#e <ol'atta*based Forei(n Department
underta'es treasur? and currenc? operations&
!#e International Ser+ices di+ision renders specialiBed ser+ices li'e 8+33(40+)-()&
:')*.)=A =5+:'5 5.)* 4(39.8(4 ')- 8+1)&3/ ')- :')* 3.4* (B0+413( 7+).&+3.)=& )ein(
IndiaMs lar(est and most trusted commercial ban'4 t#e S)I offers ?ou a networ' of
relations#ips unmatc#ed in stren(t# and span b? an? ot#er Indian financial entit?&
Project Report on Customer Awareness of Sbi Mutual Fund
!#e ban' #as a networ' of 66 +,,.8(4C:3')86(4 .) 2" 8+1)&3.(4 spannin( all time Bones&
!#e S)IMs international presence is supplemented b? a (roup of 2+erseas and NRI
branc#es in India and correspondent lin's wit# +9(3 22 5('-.)= :')*4 of t#e world&
S)IMs offs#ore joint +entures and subsidiaries en#ance its (lobal stature&
!#e ban' #as car+ed a nic#e for itself in uroland wit# branc#es strate(icall? located in
Paris4 Fran'furt and Antwerp& Indian ban's and corporates are able to a+ail sin(le*
window uro ser+ices from S)I Fran'furt&
!#ese stren(t#s are reinforced b? a -(-.8'&(- ')- 6.=65/ 4*.55(- team of professionals
deplo?ed b? t#e ban' in eac# specific se(ment&
M.44.+) S&'&(7()&<
>!o retain t#e ban' position as t#e premier Indian Financial Ser+ice 1roup4 wit# world
class standard and si(nificant 1lobal )usiness committed to e.cellence in customer4
s#are#older and emplo?ee satisfaction to pla? a leadin( role in t#e e.pandin( and
di+ersif?in( financial ser+ice sector4 w#ile continuin( emp#asis on its de+elopment
ban'in( role >
V.4.+) 4&'&(7()&<
? Premier Indian Financial Ser+ice 1roup wit# 1lobal Perspecti+e4 world*class
? Standard of efficienc? and professionalism and core institutional +alues&
? Retain its position in t#e countr? as a pioneer in de+elopment ban'in(
? Ma.imiBe s#are#olders +alues t#rou(# #i(# sustained earnin( per s#are
? An institution wit# a culture of mutual care and commitment4 a satisf?in( and
e.citin( wor' en+ironment and continue learnin( opportunities&
C+3( 9'51(4 +, &6( :')*<
? .cellence in customer ser+ice
? Profit orientation
? )elon(in( and commitment to t#e ban'
? Fairness in all dealin( and relations
Project Report on Customer Awareness of Sbi Mutual Fund
? Ris' ta'in( and inno+ation
? !eam pla?in(
? Learnin( and renewal
? Inte(rit?
? !ransference and discipline in policies and s?stem
O:;(8&.9(4 +, SBI
>Impro+ement in profitable t#rou(# better mana(ement of asset portfolio increased
emplo?ee producti+it?4 en#anced support to countr?Ms forei(n trade as well as substantial
impro+ement in t#e s?stem particularl? in t#e area of trainin( mec#aniBation4 customer
ser+ice4 and internal #ouse 'eepin( etc& >
C+7,+3&':5( 8'0.&'5 0+4.&.+)
S)I is adeDuatel? capitaliBed wit# a tier I capital adeDuac? ratio of 8&-:H and a lar(e
capital base of Rs ;:-&L; billion as at Marc# C74 ;--,& !#e ban' #as considerabl?
impro+ed its net wort# co+era(e for net NPAs to :&: times as at Marc# C74 ;--, due to
lower slippa(es reflectin( an impro+in( asset Dualit?4 witnessed across t#e entire ban'in(
sector& !#e capitaliBation le+els of S)I are adeDuate to address t#e asset side ris's and
support t#e business (rowt# in t#e medium term&
M')'=(7()& 4&3'&(=.(4
In retail finance4 t#e ban' #as le+era(ed its corporate relations#ips4 pursued business
(rowt# selecti+el?4 and #as not competed based on interest rate& !#e ban' #as ta'en
initiati+es li'e on*line ta. returns filin( and faster transfer of funds to protect its dominant
position in t#e (o+ernment business& !#e ban' also #as a clear tec#nolo(? strate(? t#at
will enable it to compete wit# t#e new (eneration pri+ate sector ban's in customer
ser+ice and operational efficienc?&
A44(& 21'5.&/ &+ 3(7'.) '& '9(3'=( 5(9(54
!#e ban' continues to #a+e a #i(# le+el of (ross NPAs at ,&G,H of (ross ad+ances as at
Marc# C74 ;--,4 compared wit# :&GH for all sc#eduled commercial ban's 3SC)s5 ta'en
Project Report on Customer Awareness of Sbi Mutual Fund
to(et#er& !#e ban' is facin( c#allen(es to impro+e t#e Dualit? of assets ori(inated4 as can
be seen in t#e consistentl? #i(#er le+els of slippa(es 3additions to NPAs5 at ;&L7H in
;--:*-,&
B14.)(44 -(483.0&.+)
S)I alon( wit# its associate ban's offer a wide ran(e of ban'in( products and ser+ices
across its different client mar'ets& !#e ban' #as entered t#e mar'et of term lendin( to
corporate and infrastructure financin(4 traditionall? t#e domain of t#e financial
institutions& It #as increased its t#rust in retail assets in t#e last two ?ears4 and #as built a
stron( mar'et position in #ousin( loans&
S)I4 t#rou(# its non*ban'in( subsidiaries4 offers a #ost of financial ser+ices4 +iB&4
merc#ant ban'in(4 fund mana(ement4 factorin(4 primar? dealers#ip4 bro'in(4 in+estment
ban'in( and credit cards& S)I #as commenced its life insurance business b? settin( up a
subsidiar?4 S)I Life Insurance Compan? Limited4 w#ic# is a joint +enture wit# Cardiff
S&A&4 one of t#e lar(est insurance companies in France& S)I currentl? #olds L:H eDuit? in
t#e joint +enture&
I)-14&3/ 03+40(8&4 <
!o le+era(e benefits suc# as access to low cost resources and t#e facilit? to pro+ide a
lar(er (amut of ser+ices4 a number of finance companies suc# as <ota' Ma#indra
Finance Limited and =DFC Limited #a+e promoted ban's& Simultaneousl?4 ?et anot#er
emer(in( trend is t#at of forei(n ban's promotin( N)FCs to benefit from re(ulator?
fle.ibilit? a+ailable to suc# entities in areas li'e absence of statutor? liDuidit? ratio and
cas# reser+e ratio reDuirements4 priorit? sector reDuirements4 and corporate e.posure
limits&
SBI LIFE INSURANCE<
2ur Mission$
Project Report on Customer Awareness of Sbi Mutual Fund
"!o emer(e as t#e leadin( compan? offerin( a compre#ensi+e ran(e of life
insurance and pension products at competiti+e prices4 ensurin( #i(# standards of
customer satisfaction and world class operatin( efficienc?4 and become a model life
insurance compan? in India in t#e post liberaliBation period"&
2ur Ialues$
? !rustwort#iness
? Ambition
? Inno+ation
? D?namism
? .cellence
S)I Life Insurance is a joint +enture between t#e State ban' of India and Cardif
SA of France& S)I Life Insurance is re(istered wit# an aut#oriBed capital of Rs 7---
crore and a paid up capital of Rs ,-- crores& S)I owns L:H of t#e total capital and Cardif
t#e remainin( ;9H& State )an' of India enjo?s t#e lar(est ban'in( franc#ise in India&
Alon( wit# its L Associate )an's4 S)I 1roup #as t#e unri+alled stren(t# of o+er 7:4,--
branc#es across t#e countr?4 ar(uabl? t#e lar(est in t#e world& Cardif is a w#oll? owned
subsidiar? of )NP Paribas4 w#ic# is t#e uro PoneMs leadin( )an'& )NP Paribas is one of
t#e oldest forei(n ban's wit# a presence in India datin( bac' to 789-& Cardif is ran'ed
;nd worldwide in creditorMs insurance offerin( protection to o+er C, million
polic?#olders and net income in e.cess of uro 7 billion& Cardif #as also been a pioneer
in t#e art of sellin( insurance products t#rou(# commercial ban's in France and in C,
more countries&
S)I Life InsuranceMs mission is to emer(e as t#e leadin( compan? offerin( a
compre#ensi+e ran(e of Life Insurance and pension products at competiti+e prices4
ensurin( #i(# standards of customer ser+ice and world class operatin( efficienc?& S)I
Life #as a uniDue multi*distribution model encompassin( )ancassurance4 A(enc? and
1roup Corporate& S)I Life e.tensi+el? le+era(es t#e S)I 1roup as a platform for cross*
sellin( insurance products alon( wit# its numerous ban'in( product pac'a(es suc# as
#ousin( loans and personal loans& S)IMs access to o+er 7-- million accounts across t#e
Project Report on Customer Awareness of Sbi Mutual Fund
countr? pro+ides a +ibrant base for insurance penetration across e+er? re(ion and
economic strata in t#e countr? ensurin( true financial inclusion&A(enc? C#annel4
comprisin( of t#e most producti+e force of more t#an ;,4--- Insurance Ad+isors4 offers
door to door insurance solutions to customers&
E#? S)I life$
Customer Satisfaction * man? of our customers w#o #a+e bou(#t an insurance polic?
wit# us #a+e bou(#t a second one Financiall? sound wit# o+er a 7-- ?ears of )an'in(
e.perience4 w#en ?ou trusted us wit# ?our mone?4 w#? would ?ou trust somebod? else
wit# ?our protection needs&
Indi+idual product$
Unit Lin'ed Plans$ It ma? be difficult to understand all ?our needs but as ?our preferred
life insurance compan?4 S)I Life definitel? understands all ?our financial 6 insurance
needs& Unit lin'ed Plans are an attempt to meet all ?our financial 6 insurance needs
t#rou(# a sin(le non participatin( product& E#atMs more ?ou (et mar'et lin'ed returns
w#ic# in t#e lon( term #as alwa?s pro+ed to (i+e better returns t#an traditional sa+in(s
products& Ee offer t#e followin( plans under t#is cate(or?&
? =oriBon II
? Unit Plus II
? Unit Plus C#ild Plan
? Unit Plus lite Plan
Pension Plans$ Life e.pectanc? is impro+in( rapidl?& People li+e lon(er& Qou cannot wor'
t#rou(#out ?our life& Qou will #a+e to retire from wor'& In t#e post retirement period ?ou
#a+e lot of time for ?ourself& Qou would li'e to do t#in(s ?ou #a+e not done w#ile ?ou
were wor'in(& Qou need to #a+e a compre#ensi+e plan to meet our post retirement
financial needs ensurin( complete peace of mind&
? =oriBon II Pension
Project Report on Customer Awareness of Sbi Mutual Fund
? Unit Plus II Pension
? Life Lon( Pension
Pure Protection Plans$ !#ere are times w#en e+er?t#in( seems to be perfect4 but w#o can
predict future and t#ere is alwa?s a place to ma'e t#is world a better place for our lo+ed
ones& !o ensure t#at t#ese uncertainties do not s#atter t#e dreams ?ou #a+e for ?our
famil?4 S)I life offers ?ou&
? S#ield
? Swad#an
? <e?man
Protection cum Sa+in(s 3ndowment5 Plans$ S)I Life offers a +ariet? of plans t#at (i+es
?ou t#e benefit of protection and t#e opportunit? to sa+e for +arious e+ents li'e purc#ase
of new #ouse4 weddin(4 car etc& we assist ?our sa+in(s&
? Sudars#an
? Sc#olar II
? Setuband#an
Mone? )ac' Plans$ As an indi+idual ?our life is fueled b? dreams& Qou e.perience
different special moments in life li'e weddin(4 birt# of a c#ild4 c#ildMs education or
purc#asin( a new #ome& Qou #a+e to be financiall? prepared for t#ese special moments&
E#at ?ou need is eas? liDuidit? at re(ular inter+als wit# life insurance protection ta'e
Care of t#ese special moments&
M+)(/ B'8*
S');((9') S103(7(
HORIDON II
Project Report on Customer Awareness of Sbi Mutual Fund
I)&3+-18&.+)<
S)I LifeMs =2RIP2N II is a uniDue4 non participatin( Unit Lin'ed Insurance Plan
in Indian Insurance Industr?4 w#ere ?ou need not to be a financial mar'et e.pert& !#is
plan offers t#e fle.ibilit? of Unit Lin'ed Plan alon( wit# Automatic Asset Allocation
w#ic# pro+ides relati+el? #i(#er returns on ?our mone? w#ere as increasin( deat#
benefits pro+ides #i(#er securit? to ?our famil?&
K(/ ,('&13(4<
? !win benefit of insurance co+er and mar'et lin'ed returns
? =assle*free in+estment mana(ement of funds from inception to maturit?
? Automatic Asset Allocation of funds
? Automatic rebalancin( of funds at ?earl? inter+als4 free of cost
? =i(#er protection4 to meet ?our famil? financial needs&
? Automatic co+er continuance&
? LiDuidit? option after C ?ears
? Facilit? to top up ?our in+estment 'itt?&
? !a. benefit as per section 8-C and 7-37-D5 of income ta. act&
? 7, da?s free loo' period from t#e date on w#ic# ?ou recei+e t#e polic? document&
N+. +, U).&4 F1)-EBF G
N(& I)9(4&7()& .) F1)-EBF
NAV +, F1)-EBF
B()(,.&4<
=assle Free In+estment Mana(ement$ Qou simpl? in+est we will mana(e it for ?ou&
Maturit? )enefits$ At t#e end of t#e term ?ou will (et t#e fund +alue&
Increasin( Deat# )enefit$ For all in forced policies 4 In case of deat# after completion of
a(e L&
Project Report on Customer Awareness of Sbi Mutual Fund
UNIT PLUS CHILD PLAN
I)&3+-18&.+)<
Life be(ins afres# w#en ?ou become a parent and w#en t#e c#ild ta'es t#at first step
towards ?ou4 t#e moment is filled wit# c#eer4 ent#usiasm ne+er felt before& !#is moment
mar's a new be(innin( in t#e c#ildMs life and t#ereMs no loo'in( bac' after t#at& !#e c#ild
'eeps (rowin( and so are #is dreams4 aspirations w#ic# alwa?s aim to reac# #oriBon and
?ou want ?our c#ild ac#ie+e #is%#er dreams& )ut at t#e same time as a proud parent ?ou
also want to secure t#eir future a(ainst risin( cost of education and ot#er necessities& Ee
at S)I LIF understand ?ou better and #ence #a+e de+eloped UNI! PLUS C=ILD
PLAN to suit ?ou and ?our needs best& !#is Plan is meant for parents in t#e a(e (roup of
78*,L #a+in( a c#ild between t#e a(e (roup of -*7, ?ears&
K(/ ,('&13(4<
? Mar'et related returns to matc# increasin( cost of education
? Peace of Mind b? (i+in( ?ou triple benefits&
? Lo?alt? units to celebrate ?our c#ild reac#in( 78 ?ears&
? New In+estment Fund 3Duit? 2ptimiser Fund5 in addition to e.istin( funds&
? Pa? Premium for a limited period and reap benefits o+er a lon( time&
? Fle.ible plan w#ic# adapts to ?our c#an(in( needs as and w#en ?ou want&
UNI! PLUS LI!$
I)&3+-18&.+)
Qou set t#e ball rollin( and #a+e been t#e catal?st for transformation of t#e societ? and
?our decisions #a+e (enerated ma.imum benefits bot# at personal as well as societ?
le+el& Qoun( (eneration aspires to be ?ou and t#e? (et inspiration to emulate ?ou to
ac#ie+e success& Qour leaders#ip does not settle wit# t#e normal4 it deser+es pri+ile(ed
facilities& A plan w#ic# pro+ides Ialue for >Qour@ mone? 2ur Preferred Customer&
Project Report on Customer Awareness of Sbi Mutual Fund
PNSI2N PR2DUC!
=2RIP2N II PNSI2N
=oriBon II Pension is t#e most simple unit lin'ed pension planR all ?ou need to do is$
? C#oose ?our retirement date4 t#e plan option and t#e re(ular premium amount&
? )ased on t#e plan option and t#e term opted4 S)I Life will in+est ?our mone? in
t#ree different funds +iB&4 Duit? Pension Fund4 )ond Pension Fund and Mone?
Mar'et Pension Fund&
? !#e funds are in+ested 'eepin( in mind t#e term opted for and ?our mone? is
in+ested in safer funds as ?our polic? approac#es maturit?&
UNI! PLUS II PNSI2N
? Pure Pension
? Pension cum Life Co+er
IN !=IS P2LICQ4 != INIS!MN! RIS< IN INIS!MN! P2R!F2LI2 IS
)2RN )Q != P2LICQ=2LDR
I)&3+-18&.+)$
Ee at S)I Life understand t#e basic needs for pension plan and (i+e ?ou financial
stren(t# to maintain ?our life st?le e+en after t#e retirement& Unit Plus II Pension plan
ma'es sure t#at ?ou #a+e re(ular income after ?ou retire and also #elps ?ou to maintain
?our standard of li+in(& !#is is a unit lin'ed pension plan w#erein t#e polic?#older
c#ooses an in+estment period from , to ,; ?ears for a +estin( a(e between ,- to L- ?ears&
Qou can c#oose to pa? eit#er sin(le premium or pa? re(ular premium for t#e entire polic?
term& Qour contributions are in+ested into : fund options as per ?our c#oice&
K(/ F('&13(4<
Project Report on Customer Awareness of Sbi Mutual Fund
C#oice to in+est 6 control four different funds as per ?our ris' appetite&
Fle.ibilit? to c#oose between two options
? Pure Pension
? Pension cum Life Co+er
? No medical reDuired for Pure Pension4 automatic acceptance facilit?&
? Fle.ibilit? to increase re(ular contribution&
? !op up pa?ments$ an? amount4 an?time&
? CustomiBe ?our plan b? addin( riders&
? 7, da?s free loo' period&
Project Report on Customer Awareness of Sbi Mutual Fund
LIFE LONG PENSION<
I)&3+-18&.+)<
Life e.pectanc? is impro+in( rapidl?& People li+e lon(er& Qou cannot wor' t#rou(#out
?our life& Qou will #a+e to retire from wor'& In t#e post retirement period ?ou #a+e lot of
time for ?ourself& Qou would li'e to do t#in(s ?ou #a+e not done w#ile ?ou were wor'in(
Qou need to #a+e a compre#ensi+e plan to meet ?our post retirement financial needs
ensurin( complete peace of mind&
K(/ ,('&13(4<
? A 7'B.717 +, R4. 1A00A000 0.'& paid as a contribution on a pension plan is full?
deductible from t#e ta.able income 3wit#in t#e ma.& ceilin( Rs& 7 la'# 5
? M.).717 G1'3')&((- 3(&13)4 +, 4H 0.'. 3compounded annuall?5 on ?our
P(34+)'5 P()4.+) A88+1)& 3till C7st Marc# ;-7-5 I V(4&(- :+)14.
? It #elps ?ou to accumulate enou(# sa+in(s to meet t#e old a(e needs and loo' for
a reliable and endurin( pension pa?ment&
? It is an e.tremel? fle.ible plan&
B()(,.&4<
? !a. benefit
? Maturit? benefit
? Deat# benefit
Pure Protection Products$
Project Report on Customer Awareness of Sbi Mutual Fund
Swad#an
Introduction
=appiness and securit? for ?our famil? is w#at ?ou want& =owe+er life #as its
uncertainties and ris's& All t#at ?ouMre interested in is #ow best to afford a secure future
for ?our lo+ed one& =a+e ?ou e+er wis#ed for a low premium insurance polic? t#at not
onl? pro+ides securit? to ?our lo+ed ones but also returns bac' t#e premium paid&
? Protection at affordable premium
? e co+er comes to ?ou at no cost
? !a. benefit u%s 8- c and 37- D5 of it act
? ,H rebate for female li+es
? 1uaranteed return of basic premium paid on sur+i+al at t#e end of t#e term4
dependin(
S#ield$
Introduction
Qour famil? is of utmost importance to ?ou& Qou want ?our famil? to #a+e all t#e (ood
t#in(s in life and ?ou would do e+er?t#in( ?ou could to fulfill t#em& Life is full of
uncertainties and ris'& !o ensure t#at t#ese uncertainties do not t#e s#atter t#e dreams ?ou
#a+e for ?our famil?&
K(/ ,('&13(4<
? It offers ?ou life insurance co+er at t#e lowest cost for a selected term&
? It is a+ailable in C options to suit ?our reDuirement&
? Le+el Premium t#rou(#out t#e c#osen term wit# increasin( Sum Assured4
dependin( on t#e option c#osen&
? !a. benefit u%s 8- C and 7- 37- D5 of I! Act
? Attracti+e rebate for Female li+es&
Sc#lor II
Project Report on Customer Awareness of Sbi Mutual Fund
Introduction
As a carin( parent ?ou would alwa?s want ?our c#ild to (et t#e +er? best& Is t#ere a wa?
to protect ?our c#ildren a(ainst lifeMs ris'sS Is t#ere a wa? to ma'e tomorrow safe for
t#emS !#erefore t#is is t#e time w#en careful financial plannin( can #elp ?ou fulfill t#e
aspirations t#at ?ou #a+e for ?our c#ildrenMs& Ee at S)I Life can #elp ?ou ensure t#at
?our c#ildrenMs future is secure and prosperous& Sc#lor II is desi(ned to protect ?our
c#ildMs future educational needs&
<e? features
? Ee at S)I Life can #elp ?ou ensure t#at ?our c#ildrenMs future is secure and
prosperous& !#e uncertainties if life&
? Ee at S)I Life can #elp ?ou ensure t#at ?our c#ildrenMs future is secure and
prosperous& Installments&
? Attracti+e rider option
? 7, da?s free loc' period
Mone? bac'$
Introduction
As an indi+idual ?our life is fueled b? dreams& Qou e.perience different special moments
in life li'e weddin(4 birt# of a c#ild4 c#ildMs education or purc#asin( a new #ome& Qou
#a+e to be financiall? prepared for t#ese special moments& E#at ?ou need is eas?
liDuidit? at re(ular inter+als wit# life insurance protection to ta'e care of t#ese special
moments&
<e? features
? !#e plan #as a number of mone? bac' options speciall? suited to ?our needs
? !#e co+er is a+ailable at competiti+e premium rates&
? !#e co+er is a+ailable at competiti+e premium rates&
? In addition to normal deat# co+er4 t#e plan also pro+ides ?ou : additional co+ers&
Project Report on Customer Awareness of Sbi Mutual Fund
? Attracti+e rider options& Con+enient premium pa?ment options$ Sin(le and
Multiple premium pa?ment&
? 7, da?s free loc' period from t#e date on w#ic# ?ou recei+e t#e polic? documents
Protection cum Sa+in(s Products$
Introduction
Sudars#an is an ndowment Polic? desi(ned to pro+ide sa+in(s and protection to ?ou
and ?our famil?& Qou can sa+e re(ularl? for t#e future& !#us at t#e end of t#e plan4 ?ou
will recei+e a substantial amount of sa+in(s alon( wit# t#e accumulated bonuses
declared& At t#e same time4 ?our famil? will be protected for deat# ris' for t#e full sum
assured&
K(/ ,('&13(4<
? It offers ?ou t#e option of tailorin( ?our polic? accordin( to ?our reDuirement and
needs4 b? optin( for +arious e.tra co+ers 3Riders5 t#at are offered&
? !#is is a uniDue product t#at offers ?ou an inno+ati+e co+er 3plan )5 w#ic# #elps
?ou to protect ?our sa+in(s a(ainst Jt#e financial conseDuences of inflationJ wit#
constant premium for t#e entire duration of t#e plan&
? It (i+es ?ou protection a(ainst unfortunate terminal or dreaded illness e+en ?our
own retirement * in a most fle.ible manner&
Project Report on Customer Awareness of Sbi Mutual Fund
$6'& .4 ' M1&1'5 F1)-J
A +e#icle for in+estin( in stoc's and bonds
A mutual fund is not an alternati+e in+estment option to stoc's and bonds4 rat#er it pools
t#e mone? of se+eral in+estors and in+ests t#is in stoc's4 bonds4 mone? mar'et
instruments and ot#er t?pes of securities
)u?in( a mutual fund is li'e bu?in( a small slice of a bi( piBBa& !#e owner of a mutual
fund unit (ets a proportional s#are of t#e fundMs (ains4 losses4 income and e.penses&
ac# mutual fund #as a specific stated objecti+e
!#e fundMs objecti+e is laid out in t#e fundJs prospectus4 w#ic# is t#e le(al document t#at
contains information about t#e fund4 its #istor?4 its officers and its performance&
P+015'3 +:;(8&.9(4 +, ' M1&1'5 F1)-<
F1)- +:;(8&.9( $6'& &6( ,1)- ?.55 .)9(4& .)
Duit? 31rowt#5 2nl? in stoc'&
Debt 3Income5 2nl? in fi.ed income securities&
Mone? mar'et 3includin( 1ilt5 In s#ort*term mone? mar'et instruments
3includin( (o+ernment securities5
)alanced Partl? in stoc's and partl? in fi.ed income
securities4 in order to maintain a TbalanceM in
returns and ris'&
Mana(ed b? an Asset Mana(ement Compan? 3AMC5
!#e compan? t#at puts to(et#er a mutual fund is called an AMC& An AMC ma? #a+e
se+eral mutual fund sc#emes wit# similar or +aried in+estment objecti+es&!#e AMC #ires
a professional mone? mana(er4 w#o bu?s and sells securities in line wit# t#e fundJs stated
objecti+e&
Project Report on Customer Awareness of Sbi Mutual Fund
All AMCs Re(ulated b? S)I4 Funds (o+erned b? )oard of Directors
!#e Securities and .c#an(e )oard of India 3S)I5 mutual fund re(ulations reDuire t#at
t#e fundMs objecti+es are clearl? spelt out in t#e prospectus&In addition4 e+er? mutual fund
#as a board of directors t#at is supposed to represent t#e s#are#oldersJ interests4 rat#er
t#an t#e AMCMs&
R')=( +, S(39.8(4
? In+estment ban'in(
? Mutual Funds
? )ro'era(e and distribution of eDuities
? DematerialiBation ser+ices
? !radin( in commodities
? Life Insurance
? Features and 2ptions
? Eealt# mana(ement
? Corporate ad+isor?
INTRODUCTION TO MUTUAL FUND
MEANING
A mutual fund is simpl? a financial intermediar? t#at allows a (roup of in+estors to pool
t#eir mone? to(et#er wit# a predetermined in+estment objecti+e& !#e mutual fund will
#a+e a fund mana(er w#o is responsible for in+estin( t#e pooled mone? into specific
securities 3usuall? stoc's or bonds5& E#en ?ou in+est in a mutual fund4 ?ou are bu?in(
s#ares 3or portions5 of t#e mutual fund and become a s#are#older of t#e fund&
Project Report on Customer Awareness of Sbi Mutual Fund
Mutual funds are one of t#e best in+estments e+er created because t#e? are +er? cost
efficient and +er? eas? to in+est in 3?ou donJt #a+e to fi(ure out w#ic# stoc's or bonds to
bu?5& )? poolin( mone? to(et#er in a mutual fund4 in+estors can purc#ase stoc's or
bonds wit# muc# lower tradin( costs t#an if t#e? tried to do it on t#eir own& )ut t#e
bi((est ad+anta(e to mutual funds is di+ersification&
2ne can ma'e mone? from a mutual fund in t#ree wa?s$
AF Income is earned from di+idends declared b? mutual fund sc#emes from time to
time&
BF If t#e fund sells securities t#at #a+e increased in price4 t#e fund #as a capital (ain&
!#is is reflected in t#e price of eac# unit& E#en in+estors sell t#ese units at prices
#i(#er t#an t#eir purc#ase price4 t#e? stand to ma'e a (ain&
CF If fund #oldin(s increase in price but are not sold b? t#e fund mana(er4 t#e fundJs
unit price increases& Qou can t#en sell ?our mutual fund units for a profit& !#is is
tantamount to a +aluation (ain&
Project Report on Customer Awareness of Sbi Mutual Fund
HISTORY
!#e ori(in of mutual fund industr? in India is wit# t#e introduction of t#e concept
of mutual fund b? U!I in t#e ?ear 7G9C& !#ou(# t#e (rowt# was slow4 but it accelerated
from t#e ?ear 7G8L w#en non*U!I pla?ers entered t#e industr?
In t#e past decade4 Indian mutual fund industr? #ad seen a dramatic impro+ement4
bot# Dualities wise as well as Duantit? wise& )efore4 t#e monopol? of t#e mar'et #ad seen
an endin( p#aseR t#e Assets Under Mana(ement 3AUM5 was Rs& 9Lbn& !#e pri+ate sector
entr? to t#e fund famil? rose t#e AUM to Rs& :L- bn in Marc# 7GGC and till April ;--:4 it
reac#ed t#e #ei(#t of 74,:- bn&
Puttin( t#e AUM of t#e Indian Mutual Funds Industr? into comparison4 t#e total
of it is less t#an t#e deposits of S)I alone4 constitute less t#an 77H of t#e total deposits
#eld b? t#e Indian ban'in( industr?&
!#e main reason of its poor (rowt# is t#at t#e mutual fund industr? in India is
new in t#e countr?& Lar(e sections of Indian in+estors are ?et to be intellectuated wit# t#e
concept& =ence4 it is t#e prime responsibilit? of all mutual fund companies4 to mar'et t#e
product correctl? abreast of sellin(&
!#e mutual fund industr? can be broadl? put into four p#ases accordin( to t#e
de+elopment of t#e sector& ac# p#ase is briefl? described as under$
F.34& P6'4( K 1"64K!7
Unit !rust of India 3U!I5 was establis#ed on 7G9C b? an Act of Parliament& It was
set up b? t#e Reser+e )an' of India and functioned under t#e Re(ulator? and
administrati+e control of t#e Reser+e )an' of India& In 7GL8 U!I was de*lin'ed from t#e
R)I and t#e Industrial De+elopment )an' of India 3ID)I5 too' o+er t#e re(ulator? and
administrati+e control in place of R)I& !#e first sc#eme launc#ed b? U!I was Unit
Sc#eme 7G9:& At t#e end of 7G88 U!I #ad Rs&94L-- crores of assets under mana(ement&
S(8+)- P6'4( K 1"!7K1""3 EE)&3/ +, P1:5.8 S(8&+3 F1)-4F
Project Report on Customer Awareness of Sbi Mutual Fund
ntr? of non*U!I mutual funds& S)I Mutual Fund was t#e first followed b?
Canban' Mutual Fund 3Dec 8L54 Punjab National )an' Mutual Fund 3Au( 8G54 Indian
)an' Mutual Fund 3No+ 8G54 )an' of India 3Kun G-54 )an' of )aroda Mutual Fund 32ct
G;5& LIC in 7G8G and 1IC in 7GG-& !#e end of 7GGC mar'ed Rs&:L4--: as assets under
mana(ement&
T6.3- P6'4( K 1""3K2003 EE)&3/ +, P3.9'&( S(8&+3 F1)-4F
Eit# t#e entr? of pri+ate sector funds in 7GGC4 a new era started in t#e Indian
mutual fund industr?4 (i+in( t#e Indian in+estors a wider c#oice of fund families& Also4
7GGC was t#e ?ear in w#ic# t#e first Mutual Fund Re(ulations came into bein(4 under
w#ic# all mutual funds4 e.cept U!I were to be re(istered and (o+erned& !#e erstw#ile
<ot#ari Pioneer 3now mer(ed wit# Fran'lin !empleton5 was t#e first pri+ate sector
mutual fund re(istered in Kul? 7GGC&
!#e 7GGC S)I 3Mutual Fund5 Re(ulations were substituted b? a more
compre#ensi+e and re+ised Mutual Fund Re(ulations in 7GG9& !#e industr? now
functions under t#e S)I 3Mutual Fund5 Re(ulations 7GG9&
!#e number of mutual fund #ouses went on increasin(4 wit# man? forei(n mutual
funds settin( up funds in India and also t#e industr? #as witnessed se+eral mer(ers and
acDuisitions& As at t#e end of Kanuar? ;--C4 t#ere were CC mutual funds wit# total assets
of Rs&74;748-, crores& !#e Unit !rust of India wit# Rs&::4,:7 crores of assets under
mana(ement was wa? a#ead of ot#er mutual funds&
F+13&6 P6'4( K 4.)8( F31'3/ 2003
!#is p#ase #ad bitter e.perience for U!I& It was bifurcated into two separate
entities& 2ne is t#e Specified Underta'in( of t#e Unit !rust of India wit# AUM of
Rs&;G48C, crores 3as on Kanuar? ;--C5& !#e Specified Underta'in( of Unit !rust of India4
functionin( under an administrator and under t#e rules framed b? 1o+ernment of India
and does not come under t#e pur+iew of t#e Mutual Fund Re(ulations&
!#e second is t#e U!I Mutual Fund Ltd4 sponsored b? S)I4 PN)4 )2) and LIC&
It is re(istered wit# S)I and functions under t#e Mutual Fund Re(ulations& Eit# t#e
Project Report on Customer Awareness of Sbi Mutual Fund
bifurcation of t#e erstw#ile U!I w#ic# #ad in Marc# ;--- more t#an Rs&L94--- crores of
AUM and wit# t#e settin( up of a U!I Mutual Fund4 conformin( to t#e S)I Mutual
Fund Re(ulations4 and wit# recent mer(ers ta'in( place amon( different pri+ate sector
funds4 t#e mutual fund industr? #as entered its current p#ase of consolidation and (rowt#&
As at t#e end of September4 ;--:4 t#ere were ;G funds4 w#ic# mana(e assets of
Rs&7,C7-8 crores under :;7 sc#emes&
THE MUTUAL FUND STRUCTURE

T6( 4&318&13( 8+)4.4&4 +,
S0+)4+3 K Sponsor is t#e person w#o actin( alone or in combination wit# anot#er bod?
corporate establis#es a mutual fund& Sponsor must contribute at least :-H of t#e net
wort# of t#e In+estment Mana(ed and meet t#e eli(ibilit? criteria prescribed under t#e
Securities and .c#an(e )oard of India 3Mutual Funds5 Re(ulations4 7GG9&!#e Sponsor
is not responsible or liable for an? loss or s#ortfall resultin( from t#e operation of t#e
Sc#emes be?ond t#e initial contribution made b? it towards settin( up of t#e Mutual
Fund&
T314& K !#e Mutual Fund is constituted as a trust in accordance wit# t#e pro+isions of t#e
Indian !rusts Act4 788; b? t#e Sponsor& !#e trust deed is re(istered under t#e Indian
Re(istration Act4 7G-8&
!RUS! SP2NS2R
AMC 2PRA!I2NS
FUND MAN1R
MU!UAL FUND
SC=MS DIS!RI)U!2R
M<!% SALS M<!%SALS
INIS!2R
S)I
Project Report on Customer Awareness of Sbi Mutual Fund
T314&(( K !rustee is usuall? a compan? 3corporate bod?5 or a )oard of !rustees 3bod? of
indi+iduals5& !#e main responsibilit? of t#e !rustee is to safe(uard t#e interest of t#e unit
#olders and inter alia ensure t#at t#e AMC functions in t#e interest of in+estors and in
accordance wit# t#e Securities and .c#an(e )oard of India 3Mutual Funds5 Re(ulations4
7GG94 t#e pro+isions of t#e !rust Deed and t#e 2ffer Documents of t#e respecti+e
Sc#emes& At least ;%Crd directors of t#e !rustee are independent directors w#o are not
associated wit# t#e Sponsor in an? manner&
A44(& M')'=(7()& C+70')/ EAMCF K !#e AMC is appointed b? t#e !rustee as t#e
In+estment Mana(er of t#e Mutual Fund& !#e AMC is reDuired to be appro+ed b? t#e
Securities and .c#an(e )oard of India 3S)I5 to act as an asset mana(ement compan?
of t#e Mutual Fund& At least ,-H of t#e directors of t#e AMC are independent directors
w#o are not associated wit# t#e Sponsor in an? manner& !#e AMC must #a+e a net wort#
of at least 7- crore at all times&
R(=.4&3'3 ')- T3')4,(3 A=()& K !#e AMC if so aut#oriBed b? t#e !rust Deed appoints
t#e Re(istrar and !ransfer A(ent to t#e Mutual Fund& !#e Re(istrar processes t#e
application form4 redemption reDuests and dispatc#es account statements to t#e unit
#olders& !#e Re(istrar and !ransfer a(ent also #andles communications wit# in+estors
and updates in+estor records&
Project Report on Customer Awareness of Sbi Mutual Fund
R+5( +, M1&1'5 ,1)-4 .) F.)')8.'5 M'3*(&
Indian financial institution #a+e pla?ed a dominant role in asset formation and
intermediation and contributed substantiall? in macroeconomic de+elopment& In t#is
process of de+elopment Indian Mutual Funds #a+e emer(ed as a stron( financial
intermediaries and are pla?in( a +er? important role in brin(in( stabilit? to t#e financial
s?stem and efficienc? to resource allocation&
Mutual Fund pla?s a crucial role in an econom? b? mobiliBin( sa+in(s and in+estin(
t#em in t#e capital mar'et4 t#us establis#in( a lin' between sa+in(s and t#e capital
mar'et& !#e acti+ities of mutual fund #a+e bot# s#ort and lon( term impact on t#e
sa+in(s and capital mar'et4 and t#e national econom?& Mutual fund4 t#us4 assist t#e
process financial intermediation& !#e? mobiliBe funds in t#e sa+in( mar'et and act as
complimentar? to ban'in(4 at t#e same time t#e? also compete wit# ban's and ot#er
financial institutions& In t#e process stoc' mar'et acti+ities are also si(nificant
influenced b? mutual funds&
!#ere is t#us #ardl? an? se(ment of t#e financial mar'et4 w#ic# is not influenced b?
t#e e.istence and operations of mutual funds& =owe+er4 t#e scope and efficienc? of
mutual funds are influenced b? o+erall economic fundamentals$ t#e inter*relation
between t#e financial and real sector4 t#e nature of de+elopment of t#e sa+in(s and capital
mar'ets4 mar'et structure4 institutional arran(ements and o+erall polic? re(ime&
ADVANTAGES OF INVESTING IN MUTUAL FUNDS
Project Report on Customer Awareness of Sbi Mutual Fund
A& P3+,(44.+)'5 M')'=(7()& * !#e primar? ad+anta(e of funds is t#e professional
mana(ement of ?our mone?& In+estors purc#ase funds because t#e? do not #a+e t#e
time or t#e e.pertise to mana(e t#eir own portfolio& A mutual fund is a relati+el?
ine.pensi+e wa? for a small in+estor to (et a full*time mana(er to ma'e and monitor
in+estments&
)& D.9(34.,.8'&.+) * )? ownin( s#ares in a mutual fund instead of ownin( indi+idual
stoc's or bonds4 t#e ris' is spread out& !#e idea be#ind di+ersification is to in+est in a
lar(e number of assets so t#at a loss in an? particular in+estment is minimiBed b?
(ains in ot#ers& In ot#er words4 t#e more stoc's and bonds ?ou own4 t#e less an? one
of t#em can #urt ?ou& Lar(e mutual funds t?picall? own #undreds of different stoc's
in man? different industries& It wouldnJt be possible for an in+estor to build t#is 'ind
of a portfolio wit# a small amount of mone?&
C& E8+)+7.(4 +, S8'5( * )ecause a mutual fund bu?s and sells lar(e amounts of
securities at a time4 its transaction costs are lower t#an ?ou as an indi+idual would
pa?&
D& L.21.-.&/ * 2pen*ended mutual funds are priced dail? and are alwa?s willin( to bu?
bac' units from in+estors& !#is means t#at in+estors can sell t#eir #oldin(s in mutual
fund in+estments an?time wit#out worr?in( about findin( a bu?er at t#e ri(#t price&
In t#e case of ot#er in+estment a+enues suc# as stoc's and bonds4 bu?ers are not
necessaril? a+ailable and t#erefore t#ese in+estment a+enues are less liDuid compared
to open*ended sc#emes of mutual funds&
& R(=15'&.+)4 * All Mutual Funds are re(istered wit# S)I and t#e? function under
strict (uidelines desi(ned to protect t#e interests of t#e In+estor&
F& T'B )(,.&4
? E21.&/ F1)-4<
Currentl?4 di+idends are ta.*free in t#e #ands of t#e in+estor& !#ere is no
distribution ta. pa?able b? t#e Mutual Fund on di+idends distributed& !#ere is
no ta. deduction at source on di+idends as well& In+estments for o+er 7;
mont#s Dualif? for lon( term capital (ains& Moreo+er for resident in+estors
t#ere is no !DS on redemption of t#e units& !#e recentl? introduced Securities
!ransaction !a. is applicable to eDuit? fund in+estments&
Project Report on Customer Awareness of Sbi Mutual Fund
? D& F1)-4<
Currentl?4 di+idends are ta.*free in t#e #ands of t#e in+estor& =owe+er4 t#ere
is distribution ta. to(et#er wit# surc#ar(e and education cess4 as ma? be
applicable4 pa?able b? t#e Mutual Fund on di+idends distributed& !#ere is no
ta. deduction at source on di+idends as well& In+estments for o+er 7; mont#s
Dualif? for lon( term capital (ains& For resident in+estors t#ere is no !DS on
redemption of t#e units&
LIMITATIONS OF MUTUAL FUNDS
As Mutual Fund pro+ides numerous ad+anta(es for in+estment it #as also few
limitations t#at are listed below$
AF C+4&4 D(40.&( N(='&.9( R(&13)4K In+estors must pa? sales c#ar(es4 annual fees4
and ot#er e.penses re(ardless of #ow t#e fund performs& And4 dependin( on t#e
timin( of t#eir in+estment4 in+estors ma? also #a+e to pa? ta.es on an? capital
(ains distribution t#e? recei+e O e+en if t#e funds went on to perform poorl? after
t#e? bou(#t s#ares&
BF L'8* +, C+)&3+5K In+estors t?picall? canMt ascertain t#e e.act ma'e up of a fundMs
portfolio at an? (i+en time4 nor can t#e? directl? influence w#ic# securities t#e
fund mana(er bu?s and sells or t#e timin( of t#ose trades&
CF P3.8( U)8(3&'.)&/K Eit# an indi+idual stoc'4 ?ou can obtain real time pricin(
information wit# relati+e ease b? c#ec'in( financial websites or b? callin( ?our
bro'er& Qou can also monitor #ow a stoc's price c#an(es from #our to #our or
e+en seconds to seconds& )? contrast4 wit# a Mutual Fund4 t#e price at w#ic# ?ou
purc#ase or redeem s#ares will t?picall? depend on t#e funds NAI& In (eneralR
Mutual Funds must calculate t#eir NAI at least once e+er? business da?4 t?picall?
after t#e major U&S& e.c#an(e close&
GLOBAL SCENARIO
Project Report on Customer Awareness of Sbi Mutual Fund
S+7( :'4.8 ,'8&4K
? !#e mone? mar'et mutual fund se(ment #as a total corpus of F 7&:8 trillion in t#e
U&S& a(ainst a corpus of F 7-- million in India&
? 2ut of t#e top 7- mutual funds worldwide4 ei(#t are ban'* sponsored& 2nl?
Fidelit? and Capital are non*ban' mutual funds in t#is (roup&
? In t#e U&S& t#e total number of sc#emes is #i(#er t#an t#at of t#e listed companies
w#ile in India we #a+e just ;LL sc#emes
? Internationall?4 mutual funds are allowed to (o s#ort& In India fund mana(ers do
not #a+e suc# leewa?&
? 2n* line tradin( is a (reat idea to reduce mana(ement e.penses from t#e current
; H of total assets to about -&L, H of t#e total assets&
C6')=(4 T'*() P5'8(
? L+?(3 C+4&4$ As per S)I re(ulations4 bond funds can c#ar(e a ma.imum of
;&;,H and eDuit? funds can c#ar(e ;&,H as administrati+e fees& !#erefore if t#e
administrati+e costs are low4 t#e benefits are passed down and #ence Mutual
Funds are able to attract mire in+estors and increase t#eir asset base&
? B(&&(3 A-9.8(< Mutual funds could pro+ide better ad+ice to t#eir in+estors
t#rou(# t#e Net rat#er t#an t#rou(# t#e traditional in+estment routes& Direct
dealin( wit# t#e fund could #elp t#e in+estor wit# t#eir financial plannin(&
? N(? .)9(4&+34 ?+15- 03(,(3 +)5.)(< Mutual funds can tar(et in+estors w#o are
?oun( indi+iduals and w#o are Net sa++?4 since ser+icin( t#em would be easier
on t#e Net&
Project Report on Customer Awareness of Sbi Mutual Fund
FUTURE SCENARIO

!#e asset base will continue to (row at an annual rate of about C- to C, H o+er t#e ne.t
few ?ears as in+estorMs s#ift t#eir assets from ban's and ot#er traditional a+enues& Some
of t#e older public and pri+ate sector pla?ers will eit#er close s#op or be ta'en o+er&

2ut of ten public sector pla?ers fi+e will sell out4 close down or mer(e wit# stron(er
pla?ers in t#ree to four ?ears& In t#e pri+ate sector t#is trend #as alread? started wit# two
mer(ers and one ta'eo+er& =ere too some of t#em will down t#eir s#utters in t#e near
future to come&

)ut t#is does not mean t#ere is no room for ot#er pla?ers& !#e mar'et will witness a
flurr? of new pla?ers enterin( t#e arena& !#ere will be a lar(e number of offers from
+arious asset mana(ement companies in t#e time to come& Some bi( names li'e Fidelit?4
Principal4 2ld Mutual etc& are loo'in( at Indian mar'et seriousl?& 2ne important reason
for it is t#at most major pla?ers alread? #a+e presence #ere and #ence t#ese bi( names
would #ardl? li'e to (et left be#ind&

!#e mutual fund industr? is awaitin( t#e introduction of deri+ati+es in India as t#is would
enable it to #ed(e its ris' and t#is in turn would be reflected in its Net Asset Ialue
3NAI5&

S)I is wor'in( out t#e norms for enablin( t#e e.istin( mutual fund sc#emes to trade in
deri+ati+es& Importantl?4 man? mar'et pla?ers #a+e called on t#e Re(ulator to initiate t#e
process immediatel?4 so t#at t#e mutual funds can implement t#e c#an(es t#at are
reDuired to trade in Deri+ati+es&
Project Report on Customer Awareness of Sbi Mutual Fund
TYPES OF SCHEMES
A. I)9(4&7()& O:;(8&.9(<
Sc#emes can be classified b? wa? of t#eir stated in+estment objecti+e suc# as 1rowt#
Fund4 )alanced Fund4 and Income Fund etc&
1. E21.&/ O3.()&(- S86(7(4
!#e in+estments of t#ese sc#emes will predominantl? be in t#e stoc'
mar'ets and endea+or will be to pro+ide in+estors t#e opportunit? to benefit from t#e
#i(#er returns w#ic# stoc' mar'ets can pro+ide& =owe+er t#e? are also e.posed to t#e
+olatilit? and attendant ris's of stoc' mar'ets and #ence s#ould be c#osen onl? b?
suc# in+estors w#o #a+e #i(# ris' ta'in( capacities and are willin( to t#in' lon( term&
Duit? Funds include di+ersified Duit? Funds4 Sectoral Funds and Inde. Funds&
Di+ersified Duit? Funds in+est in +arious stoc's across different sectors w#ile
sectoral funds w#ic# are specialiBed Duit? Funds restrict t#eir in+estments onl? to
s#ares of a particular sector and #ence4 are ris'ier t#an Di+ersified Duit? Funds&
Inde. Funds in+est passi+el? onl? in t#e stoc's of a particular inde. and t#e
performance of suc# funds mo+e wit# t#e mo+ements of t#e inde.&
Project Report on Customer Awareness of Sbi Mutual Fund
? Ma(num C2MMA Fund
? Ma(num Duit? Fund
? Ma(num 1lobal Fund
? Ma(num Inde. Fund
? Ma(num MidCap Fund
? Ma(num Multicap Fund
? Ma(num Multiplier Plus 7GGC
? Ma(num Sector Funds Umbrella
o MSFU * FMC1 Fund
o MSFU * mer(in( )usinesses Fund
o MSFU * I! Fund
o MSFU * P#arma Fund
o MSFU * Contra Fund
? S)I Arbitra(e 2pportunities Fund
? S)I )lue c#ip Fund
? S)I Infrastructure Fund * Series I
? S)I Ma(num !a.(ain Sc#eme 7GGC
? S)I 2N India Fund
? S)I !AU ADIAN!A1 FUND * SRIS I
Project Report on Customer Awareness of Sbi Mutual Fund
2. D& B'4(- S86(7(4
Debt Funds in+est onl? in debt instruments suc# as Corporate )onds4 1o+ernment
Securities and Mone? Mar'et instruments eit#er completel? a+oidin( an? in+estments
in t#e stoc' mar'ets as in Income funds or (ilt Funds or #a+in( a small e.posure to
eDuities as in Mont#l? Income Plans or C#ildrenJs Plan& =ence t#e? are safer t#an
eDuit? funds& At t#e same time t#e e.pected returns from debt funds would be lower&
Suc# in+estments are ad+isable for t#e ris'&
? Ma(num C#ildrenVs )enefit Plan
? Ma(num 1ilt Fund
o Ma(num 1ilt Fund 3Lon( !erm5
o Ma(num 1ilt Fund 3S#ort !erm5
? Ma(num Income Fund
? Ma(num Income Plus Fund
o Ma(num Income Plus Fund 3Sa+in( Plan5
o Ma(num Income Plus Fund 3In+estment Plan5
? Ma(num Insta Cas# Fund
? Ma(num InstaCas# Fund *LiDuid Floater Plan
? Ma(num Institutional Income Fund
? Ma(num Mont#l? Income Plan
? Ma(num Mont#l? Income Plan Floater
? Ma(num NRI In+estment Fund
Project Report on Customer Awareness of Sbi Mutual Fund
? S)I Capital Protection 2riented Fund * Series I
? S)I Debt Fund Series
o SDFS 7, Mont#s Fund
o SDFS G- Da?s Fund
o SDFS 7C Mont#s Fund
o SDFS 78 Mont#s Fund
o SDFS ;: Mont#s Fund
o SDFS 9- Da?s Fund
o SDFS 78- Da?s Fund
? S)I Premier LiDuid Fund
? S)I S#ort =oriBon Fund
o S)I S#ort =oriBon Fund * LiDuid Plus Fund
o S)I S#ort =oriBon Fund * S#ort !erm Fund
3. H/:3.- S86(7(4 EB'5')8(- 486(7(F
Ma(num )alanced Fund in+est in a mi. of eDuit? and debt in+estments&
=ence t#e? are less ris'? t#an eDuit? funds4 but at t#e same time pro+ide
commensuratel? lower returns& !#e? pro+ide a (ood in+estment opportunit? to
in+estors w#o do not wis# to be completel? e.posed to eDuit? mar'ets4 but is
loo'in( for #i(#er returns t#an t#ose pro+ided b? debt funds&
? Ma(num )alanced Fund
? Ma(num NRI In+estment Fund * Fle.iAsset Pl
Project Report on Customer Awareness of Sbi Mutual Fund
B. STRUCTURE
Sc#emes can be classified as Closed*ended or 2pen*ended dependin( upon
w#et#er t#e? (i+e t#e in+estor t#e option to redeem at an? time 3open*ended5 or w#et#er
t#e in+estor #as to wait till maturit? of t#e sc#eme&
7& O0() ()-(- S86(7(4 K !#e units offered b? t#ese sc#emes are a+ailable for sale
and repurc#ase on an? business da? at NAI based prices& =ence4 t#e unit capital
of t#e sc#emes 'eeps c#an(in( eac# da?& Suc# sc#emes t#us offer +er? #i(#
liDuidit? to in+estors and are becomin( increasin(l? popular in India& Please note
t#at an open*ended fund is N2! obli(ed to 'eep sellin(%issuin( new units at all
times4 and ma? stop issuin( furt#er subscription to new in+estors& 2n t#e ot#er
#and4 an open*ended fund rarel? denies to its in+estor t#e facilit? to redeem
e.istin( units&
;& C5+4(- ()-(- S86(7(4 K !#e unit capital of a close*ended product is fi.ed as it
ma'es a one*time sale of fi.ed number of units& !#ese sc#emes are launc#ed wit#
an initial public offer 3IP25 wit# a stated maturit? period after w#ic# t#e units are
full? redeemed at NAI lin'ed prices& In t#e interim4 in+estors can bu? or sell
units on t#e stoc' e.c#an(es w#ere t#e? are listed& Unli'e open*ended sc#emes4
t#e unit capital in closed*ended sc#emes usuall? remains unc#an(ed& After an
initial closed period4 t#e sc#eme ma? offer direct repurc#ase facilit? to t#e
in+estors& Closed*ended sc#emes are usuall? more illiDuid as compared to open*
ended sc#emes and #ence trade at a discount to t#e NAI& !#is discount tends
towards t#e NAI closer to t#e maturit? date of t#e sc#eme&
C& I)&(39'5 S86(7(4 K !#ese sc#emes combine t#e features of open*ended and
closed*ended sc#emes& !#e? ma? be traded on t#e stoc' e.c#an(e or ma? be open
for sale or redemption durin( pre*determined inter+als at NAI based prices&
R15(4 03(483.- &+ =+9(3) M1&1'5 F1)-4<
7& All Mutual Funds e.pect t#e statutor? ones4 will #a+e to see' t#e appro+al of t#e
S)I and t#e sc#eme floated b? t#em s#all #a+e to be re(istered wit# t#e S)I&
Project Report on Customer Awareness of Sbi Mutual Fund
;& Mutual Funds s#all be establis#ed in t#e form of trust under Indian !rust Act to
be operated b? separate asset mana(ement companies 3AMCs5 will be aut#oriBed
b? S)I and s#ould #a+e minimum net wort# of , crores&
C& S)I will #a+e t#e power to wit#draw aut#oriBation to an? AMC if it finds t#e
interest of in+estors4 Mutual Funds or t#e capital mar'et are not been ser+ed&
:& !#e AMC and t#e !rustee of a Mutual Fund s#ould be two separate le(al entities
and an AMC or its affiliate cannot act as a mana(er or an? ot#er fund&
,& No person s#ould be director of more t#an one AMC4 nor #old t#e position of t#e
trustee of director in trust compan? of funds operated b? t#e same AMC&
9& Mutual Funds must distribute G-H of t#eir profits in an? (i+en ?ear&
L& No Mutual Funds under all its sc#emes s#all #old more t#an 7-H of its fund in
t#e s#ares or debentures or ot#er instruments of a sin(le compan?&
8& No Mutual Funds under all its sc#emes ta'e to(et#er s#all in+est more t#an 7-H
of its fund in t#e s#ares or debentures or ot#er instruments of a sin(le compan?&
G& No Mutual Funds under all its sc#emes ta'en to(et#er s#all in+est more t#an 7,H
of its fund in t#e s#ares and debentures of an? specific industr?4 e.pectin( t#ose
sc#emes w#ic# #a+e been floated specificall? for in+estment in one or more
specified industries and a declaration #as been made in t#e offer letter&
7-& No indi+idual sc#eme of Mutual Funds s#all in+est more t#an ,H of its corpus in
an? one compan?Ms s#are&
77& Mutual Funds can in+est onl? in transferable securities eit#er in t#e mone? mar'et
or in t#e capital mar'et&
Project Report on Customer Awareness of Sbi Mutual Fund
7;& Pri+atel? placed debentures4 securities debt and ot#er unDuoted debt instrument
#oldin( s#all not e.ceed 7-H in case of (rowt# fund and :-H in case of income
funds&
7C& Mutual Funds will be reDuired to ta'e deli+er? of scrip purc#ase and (i+e deli+er?
in case of income funds&
7:& Mutual Funds s#all be aut#oriBed for business b? S)I and re(istered companies
wit# sound trac' records and (ood reputation could sponsor t#is&
7,& !#e entire subscription s#all #a+e to be refunded to t#e in+estor if 3a5 !#e
minimum amount of Rs&;- Crores or 9-H of t#e tar(eted amount w#ic# e+er is
#i(#er is not raised for closed*end sc#eme or 3b5 !#e minimum amount of Rs&,-
Crores or 9-H of t#e tar(eted amount4 w#ic#e+er is #i(#er is not raised for an
open*ended sc#eme&
79& Mutual Funds s#all pro+ide continuous liDuidit? and closed*end sc#eme s#all be
listed on e.c#an(e& For open ended sc#emes4 Mutual Funds s#all sell or purc#ase
units at predetermined price based on net asset +alue4 w#ic# s#all be publis#ed at
least ones a wee' &
NAV OF A MUTUAL FUND
T3'8* /+13 .)9(4&7()&4<
2ne eas? wa? to 'eep trac' of ?our fund is to 'eep trac' of t#e intelli(ent in+estor
ran'in(s of mutual funds4 w#ic# are complied on a Duarterl? basis& !#ese ran'in(s allow
?ou to ta'e note of ?our funds performance and ris' profile and compare it across +arious
time periods as well as across its peer set4
N(& A44(& V'51( ENAVF
!#e net asset +alue of t#e fund is t#e cumulati+e mar'et +alue of t#e assets fund net of its
liabilities& In ot#er words4 if t#e fund is dissol+ed or liDuidated4 b? sellin( off all t#e
assets in t#e fund4 t#is is t#e amount t#at t#e s#are#olders would collecti+el? own& !#is
(i+es rise to t#e concept of net asset +alue per unit4 w#ic# is t#e +alue4 represented b? t#e
Project Report on Customer Awareness of Sbi Mutual Fund
owners#ip of one unit in t#e fund& It is calculated simpl? b? di+idin( t#e net asset +alue
of t#e fund b? t#e number of units&
C'5815'&.+) +, NAV
!#e most important part of t#e calculation is t#e +aluation of t#e assets owned b? t#e
fund& 2nce it is calculated4 t#e NAI is simpl? t#e net +alue of assets di+ided b? t#e
number of units outstandin(& !#e detailed met#odolo(? for t#e calculation of t#e asset
+alue is (i+en below$
A44(& 9'51( .4 (21'5 &+<
Sum of mar'et +alue of s#ares%debentures
? LiDuid assets%cas# #eld4 if an?
? Di+idends%interest accrued
? Amount due on unpaid assets
? .penses accrued but not paid
D(&'.54 +) &6( ':+9( .&(74
For liDuid s#ares%debentures4 +aluation is done on t#e basis of t#e last or closin( mar'et
price on t#e principal e.c#an(e w#ere t#e securit? is traded
For illiDuid and unlisted and%or t#inl? traded s#ares%debentures4 t#e +alue #as to be
estimated& For s#ares4 t#is could be t#e boo' +alue per s#are or an estimated mar'et price
if suitable benc#mar's are a+ailable& For debentures and bonds4 +alue is estimated on t#e
basis of ?ields of comparable liDuid securities after adjustin( for illiDuidit?& !#e +alue of
fi.ed interest bearin( securities mo+es in a direction opposite to interest rate c#an(es
Ialuation of debentures and bonds is a bi( problem since most of t#em are unlisted and
t#inl? traded& !#is (i+es considerable leewa? to t#e AMCs on +aluation and some of t#e
AMCs are belie+ed to ta'e ad+anta(e of t#is and adopt fle.ible +aluation policies
dependin( on t#e situation&
Interest is pa?able on debentures%bonds on a periodic basis sa? e+er? 9 mont#s& )ut4 wit#
e+er? passin( da?4 interest is said to be accrued4 at t#e dail? interest rate4 w#ic# is
calculated b? di+idin( t#e periodic interest pa?ment wit# t#e number of da?s in eac#
period& !#us4 accrued interest on a particular da? is eDual to t#e dail? interest rate
multiplied b? t#e number of da?s since t#e last interest pa?ment date& Usuall?4 di+idends
Project Report on Customer Awareness of Sbi Mutual Fund
are proposed at t#e time of t#e Annual 1eneral meetin( and become due on t#e record
date&
H+? .4 &6( 0(38()&'=( 86')=( .) NAV 8'5815'&(-J
Percenta(e c#an(e in NAI is an absolute measure of return4 w#ic# finds t#e NAI
appreciation between two points4 as a percenta(e& For e.ample4 if t#e NAI of t#e fund is
Rs&;C&:, at t#e be(innin( of a ?ear4 and Rs& ;L&9, at t#e end of t#e ?ear4 t#en t#e
percenta(e c#an(e in NAI is
W 3 ;L&9,*;C&:, 5 % ;C&:,07--
W 7L&G7H
T6( =()(3'5 ,+3715' .4 EA:4+51&( 86')=( .) NAV C NAV '& &6( =.)).)=FL 100
$6'& .4 &6( 3'&( +, 3(&13) &+ ') .)9(4&+3 .) 71&1'5 ,1)-4J
An in+estor in mutual fund earns returns from ; sources$
? Income from Di+idend paid b? t#e mutual fund&
? Capital (ains arisin( out of sellin( t#e units at a price #i(#er t#an t#e acDuisition
price&
$6'& .4 G3+?&6 O0&.+)J
In+estors w#o do not reDuire periodic income distributions can c#oose t#e (rowt# option4
w#ere incomes earned are retained in t#e in+estment portfolio4 and allowed to (row4
rat#er t#an bein( distributed to t#e in+estors&
$6'& .4 D.9.-()- O0&.+)J
In+estors4 w#o c#oose a di+idend option on t#eir in+estment4 will recei+e di+idends from
t#e mutual fund4 as and w#en suc# di+idends are declared& Di+idend are paid in t#e form
of warrants4 or directl? credited to t#e in+estor ban' accounts&
!#ere are furt#er c#oices in t#e distribution of di+idends4 in t#e normal di+idend plan4
periodicit? of di+idend is left to Fund Mana(er4 w#o ma? pa? annuall? or an interim
Project Report on Customer Awareness of Sbi Mutual Fund
di+idend& !#ere are ot#er c#oices w#ere in t#e in+estor can c#oose t#eir di+idend pa?out
freDuencies t#at can mont#l?4 wee'l?4 dail?&
$6'& .4 3(K.)9(4&7()& +0&.+)J
Mutual Funds also pro+ide anot#er option to in+estors in t#e form of re*in+estment&
In+estors rein+est t#e di+idends t#at are declared b? t#e mutual fund4 bac' into t#e fund
itself4 at NAI t#at is pre+alent at t#e time of re*in+estment& In t#is option4 t#e number of
units #eld b? t#e in+estor will c#an(e wit# e+er? re*in+estment& !#e +alue of t#e units
will be similar to t#at under t#e di+idend option&
$6'& '3( 1F E21.&/ ,1)-4 2F D& ,1)-4 3F S(8&+3 ,1)-4J
E21.&/ F1)-4< !#ese are t#ose t#at in+est pre*dominantl? in eDuit? s#ares of t#e
companies&
D& F1)-4< !#ese are t#ose t#at pre*dominantl? in+est in debt securities suc# as bonds4
commercial papers4 certificates of deposits and treasur? bills&
S(8&+3 F1)-4< Sector funds c#oose to in+est in one or more c#osen sectors of t#e eDuit?
mar'ets& !#ese sectors could +ar? dependin( on t#e in+estors preference t#an t#e return
ris' attributes of t#e sector&
$6'& .4 &6( 7'B.717 5+'- &6( ,1)- 8') 86'3=(J
A mutual fund is reDuired to dispatc# to t#e unit#olders t#e di+idend warrants wit#in C-
da?s of t#e declaration of t#e di+idend and t#e redemption or repurc#ase proceeds wit#in
7- wor'in( da?s from t#e date of redemption or repurc#ase reDuest made b? t#e
unit#older&
Project Report on Customer Awareness of Sbi Mutual Fund
In case of failures to dispatc# t#e redemption%repurc#ase proceeds wit#in t#e stipulated
time period4 Asset mana(ement Compan? is liable to pa? interest as specified from time
to time G7,H at present5&
ANALYSIS AND FINDINGS
A)'5/4.4 +, M1(4&.+))'.3(
RSP2NDN!S A1
Project Report on Customer Awareness of Sbi Mutual Fund
age
32 32.0 32.0 32.0
26 26.0 26.0 58.0
21 21.0 21.0 79.0
21 21.0 21.0 100.0
100 100.0 100.0
18-30
30-40
40-50
50&above
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
a$e
21.0%
21.0%
26.0%
32.0%
50&above
40-50
30-40
18-30
I)&(303(&'&.+)<
2ut of 7-- respondents C;H are 78 to C- a(e4 ;9H are C- to :-4 ;7H are :- to ,- and
remainin( ;7H are of abo+e ,-& So Mutual funds s#ould more concentrate on ?oun(
(eneration because t#e? #a+e less ris' on famil? and t#e? will in+estment more because
of career de+elopment and retirement benefits&
Project Report on Customer Awareness of Sbi Mutual Fund
OCCUPATION OF THE RESPONDENTS
what is your occupation
19 19.0 19.0 19.0
39 39.0 39.0 58.0
19 19.0 19.0 77.0
23 23.0 23.0 100.0
100 100.0 100.0
&ervice#an
bu&ine&&#an
'ro(e&&ional
ot)er
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
*)at i& our occu'ation
23.0%
19.0%
39.0%
19.0%
ot)er
'ro(e&&ional
bu&ine&&#an
&ervice#an
I)&(303(&'&.+)<
!#e responses w#ic# I #ad (ot 7GH were ser+iceman4 CGH were businessman4
7GH were professional and t#e remainin( ;CH were ot#er people&
Project Report on Customer Awareness of Sbi Mutual Fund
MONTHLY INCOME<
what is your monthy income in rupess
8 8.0 8.0 8.0
18 18.0 18.0 26.0
17 17.0 17.0 43.0
27 27.0 27.0 70.0
15 15.0 15.0 85.0
15 15.0 15.0 100.0
100 100.0 100.0
belo* 5000
5000-10000
10000-15000
15000-20000
20000-25000
above 25000
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
*)at i& our #ont)l inco#e in ru'e&&
15.0%
15.0%
27.0%
17.0%
18.0%
8.0%
above 25000
20000-25000
15000-20000
10000-15000
5000-10000
belo* 5000
I)&(303(&'&.+)<
2ut of 7-- samples 8H are of below Rs&,4---4 78H are of abo+e ,4--- and below
Rs&7-4---4 7LH are of abo+e Rs&7-4--- and below Rs&7,4---4;LH are of abo+e 7,4---
and below Rs ;-4---4 7,H are of abo+e ;-4--- and below ;,4--- t#e remainin( 7,H are
of abo+e Rs&;,4--- mont#l? income&
Project Report on Customer Awareness of Sbi Mutual Fund
A$ARENESS
are you aware a!out o" s!i mutua "un#
66 66.0 66.0 66.0
34 34.0 34.0 100.0
100 100.0 100.0
e&
no
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
are ou a*are about o( &bi #utual (und
34.0%
66.0%
no
e&
I)&(303(&'&.+)<
2ut of 7-- samples 99H are aware of S)I mutual funds i&e& 99 sur+e?ed people
'now about S)I mutual funds and C:H are unaware of t#e S)I mutual funds& As t#ere is
a lac' of awareness in t#is semi urban cit? )el(aum4 t#e attempts s#ould be made to
create t#e (eneral awareness t#rou(# popular modes of communication t#at would reac#
t#e potential customers4 li'e Local !&I C#annels4 Local Newspapers4 !#eatres4 =oardin(s
and )anners in t#e public crowded areas&
MUTUAL FUND:
Project Report on Customer Awareness of Sbi Mutual Fund
#o you want to in$est your money in the "oowing mutua "un#
35 35.0 35.0 35.0
40 40.0 40.0 75.0
25 25.0 25.0 100.0
100 100.0 100.0
debt (und
equit (und
no
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
do ou *ant to inve&t our #one in t)e (ollo*in$ #utual (und
25.0%
40.0%
35.0%
no
equit ( und
debt ( und
I)&(303(&'&.+)<
2ut of 7-- samples :-H respondents #a+e in+ested t#eir mone? in eDuit? mutual funds
and t#e remainin( C,H#a+e in+ested in debt mutual funds and remainin( ;,H respondents
are not interested&
INVESTED IN MUTUAL FUND<
Project Report on Customer Awareness of Sbi Mutual Fund
ha$e you in$este# money in mutua "un#
65 65.0 65.0 65.0
35 35.0 35.0 100.0
100 100.0 100.0
e&
no
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
)ave ou inve&ted #one in #utual (und
35.0%
65.0%
no
e&
I)&(303(&'&.+)<
2ut of 7-- samples 9,H respondents #a+e in+ested t#eir mone? in mutual funds and
t#e remainin( C,H #a+e not in+ested in mutual funds& So t#at t#e potential mar'et
a+ailable for tar(etin( is around C,H&
Project Report on Customer Awareness of Sbi Mutual Fund
INVESTMENT COMPANIES<
in which company you ha$e in$este# your money
36 36.0 36.0 36.0
33 33.0 33.0 69.0
20 20.0 20.0 89.0
11 11.0 11.0 100.0
100 100.0 100.0
uti
&bi
reliance #one
ot)er&
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
in *)ic) co#'an ou )ave inve&ted our #one
11.0%
20.0%
33.0%
36.0%
ot)er&
reliance #one
&bi
uti
I)&(303(&'&.+)<
2ut of 7-- samples C9H respondents #a+e in+ested t#eir mone? in U!I mutual funds4
CCH respondents #a+e in+ested t#eir mone? in S)I mutual fund4 ;-H respondents #a+e
in+ested t#eir mone? in reliance mone? and t#e remainin( 77H respondents #a+e
in+ested t#eir mone? in ot#er mutual fund&
Project Report on Customer Awareness of Sbi Mutual Fund
PLANS<
which pan you ha$e ta%en
35 35.0 35.0 35.0
40 40.0 40.0 75.0
25 25.0 25.0 100.0
100 100.0 100.0
debt (und
equit (und
i( an ot)er &'eci( ot)er&
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
*)ic) 'lan ou )ave ta+en
25.0%
40.0%
35.0%
i( an ot)er &'eci(
equit ( und
debt ( und
I)&(303(&'&.+)<
2ut of 7-- samples :-H respondents #a+e in+ested t#eir mone? in eDuit? sc#eme
mutual funds4 C,H respondents #a+e in+ested t#eir mone? in debt sc#eme mutual fund
and t#e remainin( ;,H respondents #a+e in+ested t#eir mone? in ot#er sc#eme
Project Report on Customer Awareness of Sbi Mutual Fund
INVESTED IN MUTUAL FUND<
which amount you are contri!uting to a mutua "un#
31 31.0 31.0 31.0
41 41.0 41.0 72.0
22 22.0 22.0 94.0
6 6.0 6.0 100.0
100 100.0 100.0
u' to 10000
10000-25000
25000-50000
50000-100000
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
*)ic) a#ount ou are contributin$ to a #utual (und
6.0%
22.0%
41.0%
31.0%
50000-100000
25000-50000
10000-25000
u' to 10000
I)&(303(&'&.+)<
2ut of 7-- respondents C7H of t#em #a+e in+ested up to Rs&7-4---4 :7H of t#em #a+e
in+ested abo+e Rs 7-4--- and below Rs ;,4---4 ;;H of t#em #a+e in+ested abo+e Rs
;,4--- and below Rs ,-4---4 and remainin( 9H of t#em #a+e in+ested abo+e Rs&,-4---
and below Rs 74--4---& Mutual fund companies s#ould (i+e ad+ertisement on !&I and
ot#er local medium to attract t#e customers&
Project Report on Customer Awareness of Sbi Mutual Fund
INFLUENCED TO BUY MUTUAL FUND<
what in"uence# your "inancia panning
21 21.0 21.0 21.0
45 45.0 45.0 66.0
34 34.0 34.0 100.0
100 100.0 100.0
di&cu&&ion *it)
(a#il #e#ber
&toc+ )older,a$ent
*eb&ite
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
*)at in(luenced our (inancial 'lannin$
34.0%
45.0%
21.0%
*eb&ite
&toc+ )older,a$ent
di&cu&&ion *it) ( a#i
I)&(303(&'&.+)<
Accordin( to respondents t#e influencin( factor to bu? mutual funds was ;7H of t#em
were influenced b? Famil? member4:,H were influenced b? stoc' #older%a(ent4C:H of
t#em influenced b? website& People w#o #a+e in+ested in mutual funds t#e? #a+e
influenced from famil? member4 stoc' #older%a(ent4 website&
Project Report on Customer Awareness of Sbi Mutual Fund
INFLUENCED TO $HILE TAKING DECISION TO INVEST IN MUTUAL
FUND<
which "actor you consi#ere# whie ta%ing #ecision to in$est in mutua "un#
36 36.0 36.0 36.0
20 20.0 20.0 56.0
16 16.0 16.0 72.0
28 28.0 28.0 100.0
100 100.0 100.0
return&
&avin$
liquidit
i( an ot)er &'eci(
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
*)ic) (actor ou con&idered *)ile ta+in$ deci&ion to inve&t in #utual (u
28.0%
16.0%
20.0%
36.0%
i( an ot)er &'eci(
liquidit
&avin$
return&
I)&(303(&'&.+)<
!#e +arious attributes t#e in+estors loo' for w#ile bu?in( t#e mutual funds are C9H of
t#em (i+es preference of Rate of Return4 ;-H of t#em (i+es preference of sa+in(4 79H of
t#em (i+es preference of liDuidit?4 ;8H of t#em (i+es preference of ot#er 3ta. benefit5
People will consider rate of return as a +er? #i(# attribute w#ile in+estin( in mutual funds
compared to ot#er attributes li'e sa+in(4 liDuidit?4 and ot#er&
Project Report on Customer Awareness of Sbi Mutual Fund
FUTURE INVESTED IN SBI MUTUAL FUND<
in "uture are you intereste# in$esting money in S&I mutua "un#
64 64.0 64.0 64.0
36 36.0 36.0 100.0
100 100.0 100.0
e&
no
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
in (uture are ou intere&ted inve&tin$ #one in -./ #utual (und
36.0%
64.0%
no
e&
I)&(303(&'&.+)<
2ut of 7-- samples 9:H respondents will in+ested t#eir mone? in S)I mutual fund4
and remainin( C9H respondents will not in+ested t#eir mone? in S)I mutual fund&
Project Report on Customer Awareness of Sbi Mutual Fund
i" no why
28 28.0 28.0 28.0
18 18.0 18.0 46.0
10 10.0 10.0 56.0
23 23.0 23.0 79.0
21 21.0 21.0 100.0
100 100.0 100.0
ri&+
not #uc) +no*led$e
about t)e #utual (und
bad e0'erience
return& i& not (i0ed
all o( t)e above
Total
Valid
Frequenc !ercent Valid !ercent
"u#ulative
!ercent
i( no *)
21.0%
23.0%
10.0%
18.0%
28.0%
all o( t)e above
return& i& not ( i0ed
bad e0'erience
not #uc) +no*led$e a
ri&+
I)&(303(&'&.+)<
!#e reason for not optin( for mutual funds for t#ose ;8H respondents t#e? feel mutual
fund in+ol+es #i(# ris'4 78H respondents not muc# 'nowled(e about mutual fund4 7-H
respondents #ad bad e.perience wit# mutual funds because t#e? #a+e lost t#eir mone? in
past4 ;CH respondents t#e? feel mutual fund return is not fi.ed4 ;7H respondents all of
t#e abo+e reason&
Project Report on Customer Awareness of Sbi Mutual Fund
FINDINGS
!#us on t#e basis of t#e stud? conducted we can see t#at Mutual Fund is one of t#e best
options for in+estment as it #as man? ad+anta(es of di+ersification4 professional
mana(ement4 economies of scale4 liDuidit? etc& From t#e sur+e? conducted it was found
t#at O
? Mutual fund s#ould mainl? concentrate on ?oun( (eneration&
? Around 99H aware about S)I mutual fund&
? In+estors in+est in Mutual Funds as a #i(# return and 3sa+in(5 securit? in t#eir old
a(e or as retirement securit?& E#ile ot#ers in+est to (ain access to stoc' mar'et
t#rou(# professional mana(ement and for #i(#er education&
? Around C-H of t#e in+estors 'now about t#e ta. benefits of in+estin( in Mutual
Funds&
Project Report on Customer Awareness of Sbi Mutual Fund
SUGGESTIONS
A?'3()(44 +, 71&1'5 ,1)-4<
In+estors are not +er? muc# aware of t#e in+estment opportunities4 t#erefore t#e?
#a+e to be educated about t#is form of in+estment& In order to educate t#e
1o+ernment as well as t#e Non*(o+ernment emplo?ees4 seminars and wor's#ops
could be conducted in t#ese or(aniBations and tr? to clear t#eir doubts and
misconceptions about Mutual funds&
Proper benc#mar' is reDuired to measure t#e performance of t#e mutual funds&
Mutual fund is a classical e.ample of unsou(#t (oods& !#e nature of t#at t#e
consumer does not 'now about or does not normall? t#in' of bu?in(& !#e
attempts s#ould be made to create awareness t#rou(# popular modes of
communication t#at would reac# t#e potential customers4 li'e Local !&I
C#annels4 Local Newspapers4 !#eatres4 =oardin(s and )anners in t#e public
crowded areas etc&
Project Report on Customer Awareness of Sbi Mutual Fund
CONCLUSION
From t#e abo+e stud? it is seen t#at t#ere is an attracti+e mar'et for mutual funds in
)el(aum pro+ided awareness s#ould be created of t#e different sc#emes and people
s#ould be educated wit# all t#e information of mutual funds&
Project Report on Customer Awareness of Sbi Mutual Fund
R(,(3()8(4
? C+70')/ ?4.&(
? M'='>.)(4
? ???.7+)(/8+)&3+5.8+7
? ???.71&1'5,1)-4.)-.'.8+7
? ???.'7,..8+7
Project Report on Customer Awareness of Sbi Mutual Fund
Anne.ure
MUESTIONARRIE
7& A(e
aX 78*C- V bX C-*:- cX :-*,-
dX ,- 6 abo+e
;& E#at is ?our occupationS
Ser+iceman )usinessman
Professional 2t#er
C& E#at is ?our mont#l? income in RupessS
)elow ,4--- ,4---*7-4---
7-4---*7,4--- 7,4---*;-4---
;-4---*;,4--- abo+e ;,4---
:& Are ?ou aware about S)I Mutual fundS
Qes No
,& Do ?ou want to in+est ?our mone? in t#e followin( Mutual fundS
Debt fund Duit? fund No
9& =a+e ?ou in+ested mone? in Mutual fundS
Qes No
3If no (o to 7;
t#
Duestion5
L& In w#ic# compan? #a+e ?ou #a+e in+ested ?our mone?S
U!I S)I
Reliance mone? 2t#er
8& E#ic# plan ?ou #a+e ta'enS
Debt fund Duit? fund
If an? ot#er specif? ot#er YYYYY
Project Report on Customer Awareness of Sbi Mutual Fund
G& E#ic# amount ?ou are contributin( to a Mutual fundS
Up to 7-4--- 7-4---*;,4---
;,4---*,-4--- ,-4---*74 --4---
7-& E#at influenced ?our financial Plannin(S
Discussion wit# famil? Member
Stoc' #older% A(ent
Eeb site
77& E#ic# factor ?ou considered w#ile ta'in( decision to in+est Mutual
FundS
Returns Sa+in(
LiDuidit? If an? ot#er specif?YYYYY&
7;In futures are ?ou in+ested mone? in S)I Mutual fundS
Qes No
7C& If no w#?S
7& Ris'
;& Not muc# 'nowled(e about t#e Mutual fund
C& )ad e.perience
:& Returns is not fi.ed
,& All of t#e abo+e

Si(nature of t#e person
T6')* Y+1 ,+3 Y+13 K.)- C++0(3'&.+)
Project Report on Customer Awareness of Sbi Mutual Fund

doc_139889516.doc