Submitted to:- Submitted by:

Prof. V.V. Ratna Neha Singh(jiml-09-092)

Amit Kumar(jiml-09-FS-004)

INTRODUCTION OF SBI MUTUAL FUND

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in
judicious investments and consistent wealth creation.The fund traces its lineage to SBI - India’s largest
banking enterprise. The institution has grown immensely since its inception and today it is India's largest
bank, patronised by over 80% of the top corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Société
Générale Asset Management, one of the world’s leading fund management
companies that manages over US$ 500 Billion worldwide.

In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of
them. In the process it has rewarded it’s investors handsomely with consistent returns. A total of over
5.8 million investors have reposed their faith in the wealth generation expertise of the Mutual Fund.
Schemes of the Mutual fund have consistently outperformed benchmark indices and have emerged as
the preferred investment for millions of investors and HNI’s. Today, the fund manages over Rs. 38,782
crores of assets and has a diverse profile of investors actively parking their investments across 38 active
schemes. The fund serves this vast family of investors by reaching out to them through network of over
130 points of acceptance, 28 investor service centers, 46 investor service desks and 56 district
organisers. SBI Mutual is the first bank-sponsored fund to launch an offshore fund – Resurgent India
Opportunities Fund. Growth through innovation and stable investment policies is the SBI MF credo.

MD's Letter

Experience of over 28 years in State Bank of India in various areas such as Credit
Administration, International Banking Operations, Branch Management, Agricultural
Banking, Relationship Banking. He has also been a Regional Manager at state Bank of
India and has worked at State Bank of India's Bahrain office for 4 years.
The Indian Stock Markets traded in a range with a mix of investors’ sentiments and varying cues from
the international markets. Looking at the key indices, BSE Sensex closed 0.95% higher to close at 17868
points, while the S&P Nifty closed for the month at 5367.6 points, up marginally by 1.04%. Among the
sectors, there was an overall positive trend, except for few sectors like Oil and Gas, and Healthcare
which showed a decline. BSE Oil and Gas and BSE Healthcare showed a decline of 6.5% and 2.64%
respectively during the month. Metals and Realty were among the top gainers with BSE Metal and
Realty clocking 5.51% and 4.73% growth respectively during the month.
The Reserve Bank of India announced its First Quarter review of its Monetary Policy 2010-11 indicating
action against rising inflation. The repo and reverse repo rates were increased by 25 and 50 basis points
to 5.75% and 4.50% respectively. The CRR, however, was maintained unchanged at 6%. The markets
did not show any sharp reactions to the announcement, since it had already pre-empted and factored in
the rate changes by the Central Bank.
During July 2010, the average assets under management (AAUM) showed a marginal decline of 1.5% to
close at Rs. 6.66 Lakh Crore. The tightness in liquidity due to outflows of 3G auction and advance tax
payments continued to loom during the month. However, during the month, the AAUM of SBI Mutual
Fund grew by 14.5% to close at Rs.38,513 crore. We would like to thank the trust and participation of
our investors that has been aiding our growth.

Equity as an asset class brings in a great potential for wealth creation that can help an investor build a
corpus over a long term. Launched in 1993, Magnum Multiplier Plus is one of our key schemes that has
a proven track record. The scheme invests in equities of high growth companies with an endeavor to
provide investors with long term capital appreciation. We will be glad to help you further to understand
the risk-return profile of Magnum Multiplier Plus, and of our other equity schemes which are designed
to help you with a variety of investment objectives. Feel free to approach your nearest SBI Mutual Fund
Investor Service Center for more details.

CIO's Desk

Navneet joined SBI Funds Management Private Limited as Chief Investment Officer in December 2008.
He brings with him over 15 years of rich experience in Financial Markets. Most recently, he was the
Executive Director & head - multi - strategy boutique with Morgan Stanley Investment Management.
Prior to joining Morgan Stanley Investment

Management, he worked as the Chief Investment Officer - Fixed Income and Hybrid
Funds at Birla Sun Life Asset Management Company Ltd. Several funds managed by
Navneet got recognition for their consistent superior risk-adjusted performance and won
several awards from independent agencies such as CRISIL-CNBC TV 18, ICRA, Reuters
Lipper and got top ranking in Value Research. Navneet had been associated with the
financial services business of the group for over 13 years and worked in various areas
such as fixed income, equities and foreign exchange. His articles on matters related to
financial markets have widely been published.
Navneet is a postgraduate in accountancy and business statistics and a qualified Chartered Accountant.
He is also a charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM
charterholder of Global Association of Risk professionals (GARP).

Globally, the economic data point towards tapering of growth momentum and as the US Fed chairman
said, the environment remained “unusually uncertain”. Our assessment is that given the powerful forces
of deleveraging in household and financial sector balance sheets and limited flexibility on the fiscal side,
deflation remains the bigger near term risk for developed world. In this backdrop, we expect monetary
policy to remain extremely accommodative leading to excess liquidity supporting asset markets despite
worsening economic fundamentals. Despite record fiscal deficits, treasury yields are at multi month low
as bond prices are pricing in possibility of deflationary environment to continue. One of the silver
linings is healthy corporate balance sheets which supports the downside in equity and credit markets.
Prices of several soft commodities like Wheat, Sugar, Cocoa etc shot up sharply on production
disruptions in some key regions. Sharp swings in supply situation due to climatic conditions and demand
side accentuated by financial investment are leading to unpredictable and violent moves in some of these
commodities. Energy, food and water are some of the long term structural issues due to ‘climate change’
and changing population and growth dynamics in the world. There would be distinct impact
(opportunities as well as challenges) on several businesses which investors should keep an eye on.

Corporate results for First quarter of FY 2010-11 announced so far have shown a mixed trend. While the
top line growth has been ahead of expectations, there was pressure on margins in some of the sectors.
Banks results were better than expected and the sector outperformed the market last month. IT
companies showed a strong top line growth reflecting robust demand environment across verticals,
however, there was divergence within the sector in terms of growth in margins and bottom line. The
sectors which reported negative growth in earnings were Cement, Telecom and Power. In case of
companies in engineering sector, sales growth was below expectations. However, given the record ‘Bill
to book ratio’, there is strong visibility of growth over the next several quarters. Within the economy,
investment would be a bigger driver of growth for next few years and several companies in the
infrastructure sector would be beneficiary of this trend.

Foreign Institutional Investors (FIIs) continue to pour money into our equity market with their year to
date investment crossing $ 10 billion mark. The long term structural story of India based on favorable
demographics, domestic consumption, high savings, infrastructure build up and opportunities in off
shoring is quite compelling. Recently announced reforms on fuel prices, new draft Direct Taxes code
and government’s efforts to push GST have aided to positive sentiments. Having said that, market is
trading at fair valuation and near term gains could be capped. We recommend that in view of a structural
growth story and opportunities in stock picking, investors should remain invested in equities instead of
trying to time the market. In the near term, market would watch developments in the global markets and
trends in Monsoon. Progress of monsoon has to be keenly watched which is relatively more critical this
year due to pressure on food prices and its impact on rural economy, inflation and Govt. finances.

It its first quarter review of monetary policy, RBI increased repo rate by 25 bps to
5.75% and reverse repo rate by 50 bps to 4.50% which will shrink the corridor
between these two rates to 125 bps.

In the backdrop of strong growth momentum, widening current account deficit, higher credit-deposit
ratio and elevated inflation and inflationary expectations, RBI had to increase the pace towards
normalization of monetary policy. Indeed, the global environment is quite hazy and that might be
weighing on RBI’s mind, however, price situation in both goods and asset markets were clearly
indicating towards early signs of overheating.
Banking system has moved to a balanced to tight liquidity scenario from the high surplus scenario of the
past two years. This has been a result of RBI’s shift from a balance sheet expansion mode to a tightening
stance as India’s growth and inflation pick up. This trend of liquidity withdrawal has been further
accentuated by significant currency leakages from the banking system and the highly uncertain global
environment that has not only impacted our current account but has also not yet yielded the anticipated
capital flows. In this backdrop, short term rates have shot up sizably to the extent of 1-2% over the last
few months. With pick up in credit, seasonal factors and impact of systemic changes like Base Rate and
RBI rate increases, it is expected that short term rates may remain elevated notwithstanding intermittent
bouts of easy liquidity.
While Government’s fiscal position received a big boost in the form of telecom license auction receipts
and decontrol of some of the petroleum products, the borrowing programme would still be large for the
Banking system to absorb, especially in a stubbornly inflationary scenario. However, continued global
uncertainty and bleak prospects of growth in the developed economies has kept a check on rising bond
yields. On balance, it is expected that interest rates would see an upward bias but at the same time,
upsides would remain capped with further improvements in government balance sheet, drop in
inflationary readings aided by base effect and expected pick up in Banks’ NDTL growth due to good
inflow of overseas liquidity in to our economy. With increasing global linkages and foreign
participation, debt markets here are expected to witness increased volatility instead of secular trends.

Our fixed income funds have a very cautious positioning on duration and liquidity. As far as liquid and
ultra short term funds are concerned, we will continue to maintain relatively lower maturity profile and
higher liquidity. While the core portfolios of fixed income funds are invested in highly liquid short term
assets, we would play duration on a tactical basis as we expect higher volatility. We recommend
investors with risk appetite to invest in our short term fund and dynamic bond fund which are positioned
to take advantage of these opportunities. From a medium term perspective, there would be good entry
opportunities in long bonds in this quarter. We re-iterate that while domestic situation warrants higher
rates, one must not ignore strong deflationary forces in rest of the world.

The investment environment is becoming increasingly complex. Innumerable parameters need to be

factored in to generate a clear understanding of market movement and performance in the near and long
term future.

At SBIMF, we devote considerable resources to gain, maintain and sustain our profitable insights into
market movements. We consistently push the envelope to ensure our investors get the maximum
benefits year after year.

Research - the backbone of our Performance

Our expert team of experienced and market savvy researchers prepare comprehensive analytical and
informative reports on diverse sectors and identify stocks that promise high performance in the future.

This team works in tandem with a compliance and risk-monitoring department, which ensures
minimisation of operational risks while protecting the interests of the investors.

Quite naturally many of our equity funds have delivered consistent returns to investors and have
repeatedly out performed benchmark indices by wide margins.
Dy. Chief Executive Officer:
Didier Turpin

Prior to joining SBI Funds Management Pvt. Ltd., Mr Turpin was the Head of the European Activities
and Associate Director International Network, Société Général Asset Management (SGAM). Between
1997 and 1999 he was Finance Director of SGAM, UK. He was Deputy General Manager of SGAM
(Asia) Singapore between 1995 and 1997 and from 1988 to 1995 has held several positions within the
SG Custody Department in France and abroad.

Chief Investment Officer:

Navneet Munot

Navneet joined SBI Funds Management Private Limited as Chief Investment Officer in Dec. 2008. He
brings with him over 15 years of rich experience in Financial Markets. Most recently, he was the
Executive Director and head- multi strategy boutique with Morgan Stanley Investment Management.
Prior to joining Morgan Stanley Investment Management, he worked as the Chief Investment Officer -
Fixed Income and Hybrid Funds at Birla Sun Life Asset Management Company Ltd. Several funds
managed by Navneet got recognition for their consistent superior risk-adjusted performance and won
several awards from independent agencies such as CRISIL-CNBC TV 18, ICRA, Reuters Lipper and got
top ranking in Value Research. Navneet had been associated with the financial services business of the
group for over 13 years and worked in various areas such as fixed income, equities and foreign
exchange. His articles on matters related to financial markets have widely been published.
Navneet is a postgraduate in accountancy and business statistics and a qualified Chartered Accountant.
He is also a charter holder of the CFA Institute USA and CAIA Institute USA. He is also an FRM
charterholder of Global Association of Risk professionals (GARP).

Vice President - Investment Department:

Thierry Nardozi

Thierry graduated from University of Glamorgan with a BA (Hons) in Business studies. He started his
career with Irish Life in Dublin before moving to Societe Generale Asset Management. Thierry has an
experience of 14 years within the asset management industry and has been involved in fund
management for 10 years. Prior to joining SBI Funds Management Pvt. Ltd. in October 2007, he was
handling institutional and mutual funds invested in European equities. Thierry is also a post-graduate of
SFAF (European Federation of Financial Analysts Societies).

Head Portfolio Management Services / Fund Manager:

Nipa Ladiwala

After obtaining a post graduate degree in Business Management and Law, Nipa worked as an equity
analyst, and dealer for the offshore Funds of UTI. Subsequently she was appointed as Fund Manager for
India Growth Fund, which was listed on NYSE. She was head of Research at UTI Securities before
joining SBI Funds Management Pvt. Ltd. as Head of PMS. Nipa has 6 years experience as Fund
Manager. She has a total of 15 years experience and has been with SBI Funds Management Pvt. Ltd
since October 2005.

Equity:

Aashish Wakankar (Vice President & Fund Manager)

Aashish Wakankar is a Bachelor of Science from University of Mumbai and holds Post Graduate
Diploma in Management Studies from Jamnalal Bajaj Institute of Management Studies, University of
Mumbai. He has more than 12 years of experience in capital markets ranging from institutional equities,
equity research and fund management. He is associated with SBI Funds Management from December
2005.
Prior to joining SBI Funds Management, he has worked with Kotak Mahindra Asset Management,
Deutsche Asset Management - part of Deutsche Bank Group, and TATA TD Waterhouse Securities - a
joint venture between the TATA Group, India and TD Bank Financial Group, Canada. At Deutsche
Asset Management, he was responsible for advising the offshore fund Deutsche India Equity Fund,
Japan and MetLife Insurance.

Much of the credit for sustained performance of SBIMF goes to our team. They are the real performers
whose expertise and capability rewards our investors.

Fund Managers - Equity :

R. Srinivasan

Srinivasan joined SBI Funds Management Pvt. Ltd. as Senior Fund Manager, in May 2009. He
currently manages Magnum Global Fund, Magnum Equity Fund, MSFU – Emerging Business
Fund SBI Infrastructure Fund and SBI PSU Fund.

He brings with him over 17 years of experience in equities. Before joining SBI Funds
Management Pvt. Ltd., Srinivasan was heading ‘The Public Markets’ department with Future
Capital Holdings. Prior to that, he has worked with several organizations that include Principal
PNB AMC, Oppenheimer & Co, Indosuez W. I. Carr Securities, Motilal Oswal and Capital
Market Publishers, among others.
Srinivasan is a Master of Commerce and holds a degree in MFM from the University of
Bombay.

Jayesh Shroff

Jayesh joined SBI Funds Management Pvt. Ltd. as Fund Manager in March 2006. He currently
manages Magnum Multiplier Plus and Magnum Tax Gain Scheme.

He brings with him a rich experience of over 9 years as a Fund Manager. Apart from the fund
management experience, Mr. Shroff also has wide experience in investment banking activities
including M&A activities, venture capital funding, preparation of business plans, project
reports etc. Prior to joining SBIMF, Jayesh was with BOB Mutual Fund .Jayesh has done his
Graduation in Commerce and Post Graduate Diploma in Merchant Banking & Financial
Services from ICFAI.

Sohini Andani

Sohini joined SBI Funds Management Pvt. Ltd. as the Head of Research in October 2007 and
also appointed as Fund Manager in May 2010. She manages Magnum Midcap Fund, MSFU –
FMCG, MSFU - IT, MSFU- Pharma and SBI One India Fund.

Sohini has an experience of more than 15 years in the field of financial services. Prior to
joining SBI Funds Management, Sohini was with ING Investment Management Pvt. Ltd., as a
Senior Analyst and was responsible for contributing to Fund Managers and the CIO on their
equity investments. She has also worked with many reputed organizations viz. ASK Raymond
James &Associates Pvt. Ltd, LKP Shares & Securities Ltd, Advani Share Brokers Pvt. Ltd,
CRISIL, K R Choksey Shares & Securities Pvt. Ltd. handling primarily equity research
responsibilities

Sohini holds a graduation in Commerce, and is a qualified Chartered Accountant.

Dharmendra Grover

Dharmendra joined SBI Funds Management Pvt. Ltd. as Senior Fund Manager in June 2010. He
manages Magnum Multicap Fund, Magnum NRI Fund – Flexi Asset Plan, and Magnum
Balanced Fund (Joint Fund Manager)

Dharmendra Grover has 13 years of experience in Indian equity markets in various capacities
(19 years of total work experience). His experience spans across the Equity Research side as an
Analyst, and later, as the Head of Research. He has also worked as a Fund Manager, handling
equity mutual fund schemes. As part of a research advisory enterprise, he was also involved in
providing research on Indian companies for a foreign-based fund. He also headed the Investor
Relations function for one of the top Indian corporates.

Dharmendra has done his Bachelor of Commerce (Hons.) from Delhi University and Post
Graduate Diploma in Rural Management from Institute of Rural Management, Anand.

Pankaj Gupta

Pankaj Gupta joined SBI Funds Management Pvt. Ltd. as Fund Manager in December 2005. He
manages, Magnum Bluechip Fund, Magnum Comma Fund, and MSFU – Contra Fund.
He has a rich experience of over 8 years spanning in the areas of Fund Management, Equity
Research and Corporate Banking. He has worked in some of the leading financial institutions
like UTI Mutual Fund, ICICI Bank and HDFC Bank. Prior to joining SBI MF, he was in the
corporate banking division of ICICI Bank Ltd.
Pankaj is a Commerce Graduate and has done his MBA (specializing in Finance and Strategy)
from Indian Institute of Management, Lucknow. He has also done his Company Secretary.

Arun Agarwal

Arun has been part of SBI Funds Management Pvt. Ltd. as Fund Manager since July 2006. He
manages SBI Arbitrage Fund, SBI Gold Exchange Traded Scheme and Magnum Index Fund.

With over 11 years of solid experience in the Mutual Fund industry, Arun has worked in
various segments like equity dealing, fund management, Debt and money market Dealing and
Internal Audit. Prior to joining SBI Mutual Fund, he has worked in ICICI Bank and UTI Mutual
Fund.

Arun is a Commerce Graduate and a Chartered Accountant.

Fund Managers – Fixed Income :

Sankar Chebiyyam

Sankar V B Chebiyyam joined SBI Funds Management Pvt. Ltd as a Fund Manager in October,
2009. He manages Magnum Gilt Fund, Magnum Monthly Income Plan, Magnum Balanced Fund
(Joint), Magnum Income Fund, Magnum Income Fund – Floating Rate Plan. SBI Dynamic Bond
Fund.

With over 10 years of experience in the financial services sector. Prior to joining us, Sankar
was associated with ICICI Bank Ltd.'s Treasury division and also worked on the Fixed Income
Sales, Asset-Liability Management and Proprietary Trading groups. He was also associated
with the Commodities desk of ICICI during 2002-2004. In his last role at ICICI Bank, he was
responsible for taking trading positions in the Indian Government Bond and Rupee Interest rate
swap markets.

Sankar did his B.Tech from IIT Madras and PGDM from IIM Ahmedabad.

Rajeev Radhakrishnan

Rajeev has been with SBI Funds Management Pvt. Ltd. since June 2008. He manages Magnum
Children Benefit Plan, Magnum Income Plus Fund – Investment Plan, Magnum Instacash Fund,
SBI Premier Liquid Fund, SSHDF- Short Term and SSHDF Ultra Short Term Fund.

He has an experience of over 9 years in funds management including around 2 years in equity
funds and research and 7 years in Fixed Income Funds. Before joining SBI Mutual Fund he was
associated with UTI Mutual Fund as a Co-Fund Manager, managing fixed income funds and
debt portion of balanced schemes
Rajeev has done his B.E (Production), MMS (Finance) and is a charter holder of the CFA
Institute, USA.
Portfolio Management

We offer an integrated end to end customized asset management solution for institutions by:
Understanding the client needs and requirements in terms of risk and returns
Providing asset portfolio recommendations.

The different approaches in offering Portfolio Management Services, by SBIFM are;

Pure Advisory Services where we offer

Portfolio Recommendation
Portfolio Monitoring
Portfolio Reporting

Non Discretionary Portfolio Management Services where

We offer the above advisory plus Trade Execution and Custodial services

Discretionary Portfolio Management Services

All investment related decisions, back office, Fund Accounting and Custodian services are undertaken.
The entire management of the portfolio is done by SBIFM.

Advantages of Using a Portfolio Management Service (PMS)

Lower cost as compared to a mutual fund

Tailor-made solutions & services
Privileged access to the Fund Manager
Detailed analysis and review of your portfolio
Regular Reporting and communications
Control of Portfolio is ultimately in the Client's hands.

The different approaches in offering Portfolio Management Services, by SBIFM are;

Expertise
Extensive Fund Management (Both Equity and Fixed Income) Expertise
Managing a wide variety of Schemes
Professionalism
A strong partnership with a Global Asset Manager (SGAM)
Bringing the best practices in terms of portfolio management, services and risk control
Allows a fast access to innovative products.

Offshore Funds

The investment strategy would revolve around investing in growth oriented stocks available at attractive
relative valuations. The Fund would seek to identify and invest in businesses that have a sustainable
competitive advantage and investments would have a medium term horizon of at least 24 months.

Portfolio construction would be through a combination of top-down approach for sector allocation and
bottom-up approach for stock selection by adopting a four-stage filter based on liquidity, management
quality, valuation and competitive position of the company.

The Fund would not have any market capitalization restrictions and would be well-diversified across a
broad range of sectors.

Key Features

Legal Structure – Incorporated as a Public Company, limited by shares, holding a Global Business
License Category 1 under the Financial Services Development Act 2001.

Minimum investment –

Retail Plan - $5000 or EURO 5000 and in multiples of $1000 or EURO 1000
Institutional Plan - $1000000 or EURO 1000000 and in multiples of $1000 or EURO 1000

Subscription Fees – 5% (maximum)

Benchmark Index – BSE 100

NAV to be declared biweekly

Valuation Day - Tuesday and Friday

Dealing Day - Business day immediately preceding the Valuation Day

Management Fee - 2% (maximum)

Investment Manager – SBI Funds Management (International) Private Limited, incorporated as a

Private Company with limited liability (registration number 60432 C1/GBL) holding a Global Business
License Category 1 under the Financial Services Development Act 2001.

Fund Administrator – Multi consult Limited, Mauritius

Custodian – Barclays Bank Plc, Mauritius

Auditor – Ernst and Young , Mauritius

Auditor – Ernst and Young , Mauritius

Bloomberg Code– SBIRESG MP

ISINCode:

USD – MU0201S00428
EURO – MU0201S00436

MUTUAL FUNDS

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

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

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

The investment objective of the fund is to seek to provide returns that closely correspond to returns
provided by price of gold through investment in physical Gold. However the performance of the scheme
may differ from that of the underlying asset due to tracking error.

SWOT ANALYSIS
STRENGTHS:-
1)BrandName:
The biggest strength is the tag of SBI is going to be the largest banking group of finance industries.

1. Compatible Price:
Prices of different schemes of SBI Mutual Funds are much more compatible than others.
2. Diversified Schemes:
We have diversified schemes which are an exception case of SBI Mutual Fund.
3. Less Risk:
Our debt schemes are 100% free form market risk. Even as our portfolio is that diversified so equities
are also less risky than others.
Easy procedures of redemption & registration too:
We have open ended schemes so Mutual funds are easily redeemable.

WEAKNESS:-
1. Prone to Market Risk:
Mutual Funds depend on overall macro economic condition and market scenario.
2. Tough Competitions:
There is a very tough competition because of large number of Asset Management Companies.

OPPORTUNITIES: -
1. Hoarding:
Most of the Indians have black money that too in huge amount i.e. the do not have money in banks, so
approaching them is beneficial.
2. Indian Capital Market is Growing:
So more & more new investors are interested in investment
3. Tailor Made Products:
We have tailor made products like sector specified schemes & even diversified schemes.
4. Branch Expansion:
Large no. of branches are opening day by day and even we are traping the countries having almost same
type of socioeconomic condition & even same culture etc.

THREATS:-

1. Tough Competition:-As there are so many mutual fund companies having almost same kind of
schemes, so it’s tough to compete with.
2. Unawareness: Major % of population is not aware of mutual funds, so it’s hard to convince people.
3. Changing Scenario: Our market scenario is changing day by day i.e. our market is fluctuating, so
this makes investor hard to invest.

FACTORS IMPACTING THE INDUSTRY

PEST Analysis: Political Factors:

a) Government Regulation: SEBI regulates the industry and every decision taken by them impact the
industry very quickly.

b) Stable constituency: The mutual fund industry can take long term decision if the government is stable.

c) Fiscal policy: tax structure plays a very important role in the growth of the industry .If the tax
structure will be high than there will be less savings and investment. We have seen the interest rate
reducing continuously which boost the industry to sell products which are better than the FDs, PF, NSC
and KVPs.

Economic factors:

d) Market performance: The last five years witnessed a sharp rise in the markets. The mutual fund
industry basically works parallel with the markets. Suppose, if the markets always be on downside, then
the investors will not be so comfortable to invest. This will reduce the market size drastically.

e) Global Standards: As the industry will grow better, India being a global economy, the MF industry
has to match to the global mature MF markets. They have to give due emphasis on product innovation,
cost reduction and penetration.

f) Inflation: price rise affects interest rate and reduces the chances of investment.

Social factors:

g) Consumer behaviour: this is very unpredictable and based on sentiments gets changed very
frequently, which sometimes makes selling of products difficult.

h) Income: The rich people are in bigger cities, so the mutual fund industry is much more concentrated
there.

Technological factors: This is the era of information technology and due to net banking, online
transaction, online RTGS, clearing system helps the industry a lot.

OPPORTUNITIES AND THREATS:-

a) Real Estate sector boom: The Real estate has always been one of the preferred investment avenues for
the Indian investor. And what better way for the smaller investors to participate in this boom than to
have a real estate mutual fund. AMC has to come up with the structured products in this segment and
should take competitive advantage.

b) Penetration to Rural markets: The industry has to take themselves to the local and rural markets to
increase the market size. Also, the cost of setting up business in bigger cities is huge compare to smaller
cities. This will reduce the AMC business cost.
c) Concentration of Corporate Investors: Mutual funds have become overly attractive to corporate
investors because of higher returns than bank deposits and ability to distribute capital gains tax.
Corporate investors account for more than 55% of the AUM (by value).It is clear that the lack of growth
in funds under management in India is because of the absence of long term investors.Corporate investors
take profits frequently resulting in destruction in the compound growth in funds under management.
Distributors are forced to pass on more commissions to companies, while fund companies are compelled
to offer funds with wafer thin margins.

d) Retail investors lose out in the sense that they continue to pay higher expenses.

e) Higher Returns of Alternative Debt Instruments: Government guaranteed schemes provide risk free
returns at competitive rates of returns. This is why mutual funds have difficulty competing retail
business.

f) Huge scope for expansion: There are only 33 AMC which is very small figure compared to the mature
markets.

g) Distribution: One of the major factors impacting the growth of mutual fund industry is the absence of
any regulation in distribution of mutualfunds.Mutual fund investors need distributors who are able to
inform them about the efficacy of distribution product for a particular risk profile and stage in life cycle.
Lack of distributor awareness and the absence of any disclosures from distributors make misselling of
MF products commonplace.

COMPETITOR ANALYSIS:-

Tata Mutual Fund :- Tata Asset Management Private Limited is very old house and is well placed in
the market. Tata Mutual Fund has AUM of Rs.21304 Crores. Tata Mutual Fund has been constituted as
a trust on 9th May 1995 in accordance with the provisions of the Indian Trusts Act, 1882 with Tata Sons
Limited (TSL) and Tata Investment Corporation Limited (TICL) as the sponsers and the settlers. The
Mutual Fund was registered with SEBI on 30th Tata Mutual Fund (TMF) has been constituted as a Trust
in accordance with the provisions of the Indians Trusts Act, 1882 and is registered as a Trust under The
Indian Registration Act, 1908. TMF was registered with Securities & Exchange Board of India (SEBI)
and commenced operation by launching.

Strengths & Weaknesses:- Strengths:

Portfolio management
Mutual fund business
Tata Mutual Fund
a) Trusted Parent company: Tata Asset Management Ltd is a part of the Tata group, one of India's
largest and most respected industrial groups. Jamshedpur is the home ground for Tata MF and they
enjoy great support and trust.

b) High payout structure: They pay more incentive and brokerage to there distributors in comparison of
other AMCs, which gives them some edge to attract the distributors to sell the product.

Weaknesses: a) Focussed on one product: At Jamshedpur, Tata MF is focussed on only one product that
is Tata Infrastructure Fund which some how narrows their product diversification. b) Lack of
Aggression: The team in Jamshedpur lack aggression and activeness, they do not push there products too
much in the markets. Products get sold of there brand presence. c) Services: The AMC is not giving
good service and the response time is slow.

Projected Future Strategy: To meet the competition, Tata mutual fund will have to expand there
business and penetration by increasing the number of branches and manpower.

Distributor/Business model: The distributor model is divided into two parts that is IFAs and Banks and
national distributors. Then the IFAs are categorised in two categories i.e. preferred and basic. Preferred
gets 2.25% brokerage and basic gets 2.10%. For making preferred partner there is no such set of rule.
Also, Tata has scheme specific brokerage structure like in Tata infrastructure they pay 3.00%,in some
schemes 2.25% and in some 1.75%.

Comparative Analysis of SBI AMC with TATA:-

i) Infrastructure :-

SCHEME SBI TATA

INFRASTRUCTURE INFRASTRUCTURE

FUND CLASS Equity diversified Equity diversified

Average mkt. cap. (in 75406.10 21304.00
Crores)

AS ON date MAY. 2009 MAY. 2009

ii) SWOT analysis of HDFC AMC with Tata AMC
SWOT Analysis of SBI Asset Management Ltd
SWOT Analysis of Tata Asset Management Ltd
 CONCLUSION:-

SBI MSFU CONTRA Fund has a ability to spot the contrarian strategy & it has delivered
handsomely. Even it has been awarded for managing one of the best tax saving fund in the whole
industry. In Current status it emerged as the third best-performing diversified equity fund.

SUGGESTIONS TO SBI MUTUAL FUND:

1. An aggressive advertising campaigning should be there to encourage more people to invest.

2. As some of the people think that mutual fund is risky so the company should show people the
advantages of the mutual fund and how it is better than the other investment avenues.

3. There is a great potential for the mutual fund because the people are ready to invest in the mutual fund
as there is a positive responses.

4. Now a days people are investing in more of an equity fund because it gives high return as compare to
other mutual fund schemes.

5. People are preferred to invest in the long term savings when only they have enough of surplus. They
are least concerned about the other’s advice.

6. The people of Rajkot have enough purchasing power supported by N.R.I. Mutual Fund Companies
should take this fact positively at the time of designing promotional scheme.

7. SBI MF is doing comparatively very less marketing in MF industry in compare to other players. Due
to this other player are getting the advantage. Thus it should try to increase the marketing
and advertising related activities time to time or at least at the time of new NFO’s, at the time when they
are declaring dividends or at the peak time (i.e. January - March) last quarter of financial year when
people are searching for investing instruments.