SBI Mutual Fund
Content
ABSTRACT
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. The term risk has a variety of meanings in business and everyday life. At its most general level, risk is used to describe any situation where there is uncertainty about what outcome will occur. Life is obviously very risky. Even the short term future is often highly uncertain. In probability and statistics, financial management and investment management, risk is often used in more specific sense to indicate possible variability of outcomes around some expected value. This study aims to study the investor‟s preference in selection of Mutual fu nd and measuring the fund sponsor quality. A mutual fund is a common pool of mone money y into which investors place their contributions that are to be invested in accordance with a stated objective. Being a part of financial markets although mutual funds industry is responding very fast b y analyze investor‟s perception and expectations.
INDUSTRY PROFILE Investors all over the world are making fast money from mutual fund investments. It's true that mutual funds are volatile in nature and its return is subjected to market risk. But if you are a smart investor and is also quite aware of the well-performing MF in the market, then investment not only becomes easy but also profitable and risk free. Here is the list of top 10 mutual funds in which one would like to invest in 2013, as they were top performing MF in the last 12 months, as stated by Mutual Funds India.
1. ICICI Prudential Banking and Financial Services Fund - Retail Type: Open Ended Fund Manager: Venkatesh Sanjeevi Launch Date: August 22, 2008 Fund Size (in Crore):
209.2 as on November 30, 2012
Minimum Investment (in
): 5000
It is an Open-ended equity scheme that seeks to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. However, there can be no assurance that the investment objective of the Scheme will be realized. The Net Asset Asset Value (NAV) for the scheme scheme is 22.52 as on December December 21, 2012. The 52 week high value of the scheme is 22.86 as on December 19, 2012 and 52 week low value was 13.24 as on Deccember 30, 2011. Since its inception, the Risk Return Value (RRV) has been 20.60 percent and for the month has been 7.75 percent. The Earnings Per Share (EPS) is
15.90 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, IndusInd Bank, Mahindra & Mahindra Financial Services, Union Bank Of India, Oriental Bank of Commerce, Yes Bank, Federal Bank and ING Vysya Bank.
2. Reliance Media & Entertainment Type: Open Ended Launch Date: September 30, 2004 Fund Size (in Crore):
85.73 as on November 30, 2012
Minimum Investment (in
): 5000
The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies. The Net Asset Value (NAV) for the scheme is 38.59 as on December 21, 2012. The 52 week high value of the scheme is 39.18 as on December 20, 2012 and 52 week low value was 24.44 as on January 2, 2012. Since its inception, the Risk Return Value (RRV) has been 17.83 percent and for the month has been 6.94 percent. The Earnings Per Share (EPS) is
21.63 as on November 2012.
The top holdings are Zee Entertainment Enterprises, Hathway Cable & Datacom, PVR, Hinduja TMT, Sun TV, Jagran Prakashan, Dish TV India, Hindustan Media Ventures, HT Media and Network 18 Media & Investments.
3. SBI Magnum Sector Funds Umbrella - FMCG Type: Open Ended Fund Manager: Saurabh Pant. Launch Date: Jul 5, 1999 Fund Size (in Crore):
160.41 as on November 30, 2012
Minimum Investment (in
): 2000
To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. There are five sub-funds dedicated to specific
investment
themes
viz.
Information
Technology,Pharmaceuticals,
FMCG,
Contrarian
(investment in stocks currently out of favour) and Emerging Businesses. The Net Asset Value (NAV) for the scheme is 49.38 as on December 21, 2012. The 52 week high value of the scheme is 51.01 as on December 11, 2012 and 52 week low value was 31.95 as on January 2, 2012. Since its inception, the Risk Return Value (RRV) has been 13.55 percent and for the month has been 3.61 percent. The Earnings Per Share (EPS) is
38.76 as on November 2012.
The top holdings are ITC, Glaxo Smithkline Consumer, Hindustan Unilever, Agro Tech Foods, United Spirits, Emami, Kansai Nerolac Paints, Procter and Gamble Hygiene & Healthcare, VST Industries and Dabur India.
4. SBI Magnum Sector Funds Umbrella - Emerg Buss Fund Type: Open Ended Fund Manager: Rama Iyer Srinivasan. Launch Date: September 17, 2004 Fund Size (in Crore):
1032.45 as on November 30, 2012
Minimum Investment (in
): 2000
To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. There are five sub-funds dedicated to specific investment themes viz. Information Technology, Pharmaceuticals, FMCG, Contrarian (investment in stocks currently out of favour) and Emerging Businesses. The investment objective of the Emerging Business Fund would be to participate in the growth potential presented
by
various
companies
that
are
considered
emergent
and
have
export
orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies.The fund may also evaluate emerging businesses with growth potential and domestic focus.
The Net Asset Value (NAV) for the scheme is 58.81 as on December 21, 2012. The 52 week high value of the scheme is 59.50 as on December 19, 2012 and 52 week low value was 38.85 as on January 2, 2012.
Since its inception, the Risk Return Value (RRV) has been 23.91 percent and for the month has been 5.32 percent. The Earnings Per Share (EPS) is
24.41 as on November 2012.
The top holdings are Spicejet, Muthoot Finance, Shriram City Union Finance, Kansai Nerolac Paints, Goodyear India, Petronet Lng, VST Industries, Hawkins Cooker, Page Industries and United Spirits.
5. Reliance Banking Fund - Regular - Growth Type: Open Ended Fund Manager: Sanjay Parekh and Shrey Loonkar Launch Date: May 26, 2003 Fund Size (in Crore):
1899.07 as on November 30, 2012
Minimum Investment (in
): 5000
The primary investment objective of the Scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of companies in the banking sector. The Net Asset Value (NAV) for the scheme is 117.37 as on December 21, 2012. The 52 week high value of the scheme is 119.36 as on December 19, 2012 and 52 week low value was 74.83 as on December 29, 2011. Since its inception, the Risk Return Value (RRV) has been 29.31 percent and for the month has been 7.76 percent. The Earnings Per Share (EPS) is
14.03 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, Bajaj Finance, State Bank of India, Federal Bank, Bank of Baroda, Axis Bank, Canara Bank, Oriental Bank of Commerce and ING Vysya Bank.
6. Religare Banking Type: Open Ended Fund Manager: Amit Ganatra. Launch Date: Jul 14, 2008 Fund Size (in Crore):
49.74 as on November 30, 2012
Minimum Investment (in
): 5000
The investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities of companies engaged in the business of banking and financial services. The Net Asset Value (NAV) for the scheme is 23.39 as on December 21, 2012. The 52 week high value of the scheme is 23.78 as on December 19, 2012 and 52 week low value was 15.07 as on December 30, 2011.
Since its inception, the Risk Return Value (RRV) has been 21.09 percent and for the month has been 6.22 percent. The Earnings Per Share (EPS) is
17.02 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, Axis Bank, Jammu and Kashmir Bank, Karur Vysya Bank, Federal Bank, Corporation Bank, ING Vysya Bank, Yes Bank and State Bank of India.
7. GS Bank Type: Open Ended Fund Manager: Vishal Jain. Launch Date: May 27, 2004 Fund Size (in Crore):
61.5 as on November 30, 2012
Minimum Investment (in
): 10000
To provide investment return that closely corresponds to the returns of the securities as represented by the CNX Bank Index. The Net Asset Value (NAV) for the scheme is 1,251.62 as on December 21, 2012. The 52 week high value of the scheme is 1,271.48 as on December 19, 2012 and 52 week low value was 807.07 as on December 30, 2011-. Since its inception, the Risk Return Value (RRV) has been 20.97 percent and for the month has been 7.36 percent. The Earnings Per Share (EPS) is
19.64 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Bank of Baroda, Yes Bank, Punjab National Bank and Canara Bank.
8. Principal Emerging Bluechip Type: Open Ended Fund Manager: Dhimant Shah. Launch Date: Nov 12, 2008 Fund Size (in Crore):
286.45 as on Nov 30, 2012
Minimum Investment (in
): 5000
The primary objective of the Scheme is to achieve long-term capital appreciation by investing in equity & equity related instruments of mid cap & small cap companies. The Net Asset Value (NAV) for the scheme is 33.13 as on December 21, 2012. The 52 week high value of the scheme is 33.75 as on December 19, 2012 and 52 week low value was 21.74 as on December 29, 2011. Since its inception, the Risk Return Value (RRV) has been 33.84 percent and for the month has been 6.42 percent. The Earnings Per Share (EPS) is
22.81 as on November 2012.
The top holdings are Glaxo Smithkline Consumer, Amara Raja Batteries, Shree Cement, Divis Laboratories, ICICI BANK, Jammu and Kashmir Bank, HCL Technologies, ING Vysya Bank, Godrej Consumer Products and Apollo Tyres.
9. UTI Banking Type: Open Ended Fund Manager: Anoop Bhaskar and Arun Khurana Launch Date: March 9, 2004 Fund Size (in Crore):
396.36 as on November 30, 2012
Minimum Investment (in
): 5000
Investment objective is "capital appreciation" through investments in the stocks of the companies/institutions engaged in the banking and financial services activities. The Net Asset Value (NAV) for the scheme is 47.87 as on December 21, 2012. The 52 week high value of the scheme is 48.61 as on December 19, 2012 and 52 week low value was 30.65 as on December 30, 2011. Since its inception, the Risk Return Value (RRV) has been 19.50 percent and for the month has been 8.13 percent. The Earnings Per Share (EPS) is
16.23 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, State Bank of India, Axis Bank, IndusInd Bank, Bank of Baroda, Canara Bank, Punjab National Bank, Oriental Bank of Commerce and Vysya Bank.
10. Reliance Shares Banking Exchange Traded Fund Type: Open Ended Fund Manager: Krishan Daga. Launch Date: Jun 24, 2008 Fund Size (in Crore):
12.32 as on November 30, 2012
Minimum Investment (in
): 5000
The investment objective of Reliance Banking Exchange Traded Fund (RBETF) is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Bank Index. However, the performance of Scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of RBETF will be achieved. The Net Asset Value (NAV) for the scheme is 1,290.43 as on December 21, 2012. The 52 week high value of the scheme is 1,310.79 as on December 19, 2012 and 52 week low value was 830.06 as on December 30, 2011. Since its inception, the Risk Return Value (RRV) has been 20.95 percent and for the month has been 7.47 percent. The Earnings Per Share (EPS) is
19.64 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Bank of Baroda, Yes Bank, Punjab National Bank and Canara Bank.
With 25 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd. bring forward our expertise by consistently delivering value to our investors. We have a strong and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. We are a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies. With our network of over 222 points of acceptance across India, we deliver value and nurture the trust of our vast and varied family of investors. Excellence has no substitute. And to ensure excellence right from the first stage of product development to the post-investment stage, we are ably guided by our philosophy of „growth through innovation‟ and our stable investment policies. This dedication is what helps our customers achieve their financial objectives. Vision
“To be the most preferred and the largest fund house for all asset classes, with a consistent track record of excellent returns and best standards in customer service, product innovation, technology and HR practices.”
Services Mutual Funds
Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment option to the masses in the country. Working towards it, we developed innovative, need-specific products and educated the investors about the added benefits of investing in capital markets via Mutual Funds. Today, we have been actively managing our investor's assets not only through our investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors. This makes us one of the largest investment management firms in India, managing investment mandates of over 5.4 million investors.
Portfolio Management and Advisory Services
SBI Funds Management has emerged as one of the largest player in India advising various financial institutions, pension funds, and local and international asset management companies. We have excelled by understanding our investor's requirements and terms of risk / return expectations, based on which we suggest customized asset portfolio recommendations. We also provide an integrated end-to-end customized asset management solution for institutions in terms of advisory service, discretionary and non-discretionary portfolio management services. Offshore Funds
SBI Funds Management has been successfully managing and advising India's dedicated offshore funds since 1988. SBI Funds Management was the 1st bank sponsored asset management company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with an objective to provide our investors with opportunities for long-term growth in capital, through well-researched investments in a diversified basket of stocks of Indian Companies.
FUND HOUSE EXPERTISE Investment Expertise
The best investment strategies put together by the best minds, our Fund Managers. With a sharp eye to monitor, gauge and understand the changes in the market, our fund managers and analysts gear up to meet new challenging environments. Their ability to capture the growth potential of Indian securities and manage complex portfolios as well as the drive to deliver optimum results is their forte. With superior securities selection, incisive research, intensive coverage including internal forecasts, active monitoring and regular tracking, our dedicated team ensures minimization of risks while protecting our investor's interest. Always.
Investment Philosophy Growth through innovation.
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.
What is innovation? Innovation is the process of turning ideas into concrete plans for progressive growth. We always seek to provide our investors with opportunities for progressive growth through our innovative products, superior stock selection and active portfolio management. Accordingly, we also enhance and optimize asset allocation and stock selection based on internal and external research. Derivatives are used to hedge and rebalance portfolios to keep the risk factors at reasonable levels, The three main phrases, which act as a guiding force for the investment performance, are as follows:
Long-term capital appreciation for the investor: Our fund manager's view is not guided by any momentum play but by the objective of generating sustainable performance for the investor.
Superior stock selection: Our team is encouraged to be ahead of the rest of the industry in terms of identifying new ideas & opportunities.
Active fund management: While the performance of all the funds is benchmarked against a specific index, we do not encourage our investment team to replicate the index composition with the fund portfolio.
Optimal Risk Management
Risk Management is an inherent part of any business. As one of the core focus areas, each of our strategies is subject to close scrutiny on a continuous basis. Regulatory agencies around the world are placing increasing pressure on institutions to measure and manage risk better. At SBI Funds Management, we follow enterprise wide approach to risk management with a dedicated, experienced and professional risk management team covering significant functions of the organization. Risk Management focuses on:
Identifying actual and potential areas of risk
Assessing the adequacy of internal controls
Proposing risk mitigating measures and
Safeguarding investor interest through ongoing analysis and monitoring
Investment Objective
Setting benchmarks time and again. For our investors.
Our objective is to endeavor to outperform our benchmarks through well researched investments in Indian equities. This is achieved by implementing an active management style based on fundamental analysis, leading to the construction of a portfolio. It could be blended, large cap, mid cap, or specific sector oriented - which aims at capturing the growth potential of Indian equities.
INVESTMENT TEAM
Navneet Munot Executive Director & Chief Investment Officer Erwan Keraudy VP – Investments Fund Managers - Equity
R. Srinivasan
Jayesh Shroff
Head - Equities
Fund Manager
Sohini Andani
Richard D‟Souza
Fund Manager
Fund Manager
Ajit Dange
Ruchit Mehta
Fund Manager
Fund Manager
Raviprakash Sharma
Saurabh Pant
Chief Dealer & Fund Manager
Fund Manager
Tanmaya Desai
Neeraj Kumar
Fund Manager
Dealer
Fund Managers - Fixed Income
Rajeev Radhakrishnan
Dinesh Ahuja
Head - Fixed Income
Fund Manager
R Arun
Dinesh Balachandran
Fund Manager
Fund Manager
Portfolio Management Services
Nipa Ladiwala
Aashish Wakankar
Vice President – PMS (Institutional)
Vice President – PMS (Offshore)
Amruth Rao Senior Fund Manager – PMS (Debt)
TRUSTEES
SBI Mutual Fund Trustee Company Private Limited (the “Trustee”), through its Board of Directors discharge its obligations as Trustee of the SBI Mutual Fund. The Board of Directors of SBI Mutual Fund Trustee Company Private Limited are as under: Shri T.L. Palani Kumar
Shri C.M. Dixit
Independent
Independent
Ms. Sandra Martyres
Ms. Bharati Rao
Associate
Associate
Mr. Krishnamurthy Vijayan
Mr. Shriniwas Joshi
Independent
Independent
BOARD OF DIRECTORS - AMC
Mr. Pratip Chaudhuri
Mr. Deepak Kumar Chatterjee
Chairman & Associate Director
Managing Director & CEO
Mr. Shishir Joshipura
Dr. H. Sadhak
Independent Director
Independent Director
Mrs. Madhu Dubhashi
Dr. H. K. Pradhan
Independent Director
Independent Director
Mr. Jashvant Raval
Mr. Fathi Jerfel
Independent Director
Associate Director
Mr. Thierry Raymond Mequillet
Mr. Philippe Batchevitch
Associate Director
Alternate Director to Mr. Jerfel
MANAGEMENT TEAM
Mr. Deepak Kumar Chatterjee
Mr.
Philippe
MD & CEO
Batchevitch Deputy CEO
Mr. K. T. Ravindran
Mr. Navneet Munot
Executive Director & Chief Operating Officer
Executive Director & Chief Investment Officer
Mr. R. S. Srinivas Jain
Mr. D. P. Singh
Executive Director & Chief Marketing Officer (Strategy and International
Executive Director
Business)
& Chief Marketing Officer
(Domestic
Business) Ms. Aparna Nirgude
Mr.
Chief Risk Officer
Kaushik Senior
Rakesh
Vice
President (Accounts & Administration) Ms. Vinaya Datar
Mr. C. A. Santosh
CS & Compliance Officer
Head - Customer Service
PRODUCTS
Every investor is unique.
At SBI Mutual Fund we know that every investor has unique financial goals and requires a different set of products. Which is why, we have a wide range of schemes that fulfill every kind of investors‟ requirements. Each scheme is managed by devising a different strategy which is reflective of the investors profile and carries with it different risks and rewards. There are six basic asset classes, which we manage, and variations of these six asset classes form various products:
EQUITY SCHEMES
The primary objective of the equity asset class is to provide capital growth / appreciation by investing in the equity and equity related instruments of companies over medium to long term.
Equity/ Growth Funds
SBI Magnum Equity Fund
SBI Magnum Global Fund
SBI BlueChip Fund
SBI Magnum Multicap Fund
SBI Magnum Multiplier Plus 1993
SBI Magnum Midcap Fund Sectoral Funds
SBI Emerging Businesses Fund
SBI Contra Fund
SBI FMCG Fund
SBI IT Fund
SBI Pharma Fund
Thematic Funds
SBI Magnum COMMA Fund
SBI Infrastructure Fund
SBI PSU Fund ELSS Funds
SBI Magnum Taxgain Scheme 1993
SBI Tax Advantage Fund - Series I
SBI Tax Advantage Fund - Series II
Index Funds
SBI Nifty Index Fund Market Neutral Strategy
SBI Arbitrage Opportunities Fund
DEBT / INCOME SCHEMES
The schemes in this asset class generally invest in fixed income securities such as bonds, corporate debentures, government securities (gilts), money market instruments, etc. and provide regular and steady income to investors.
SBI Magnum Children's Benefit Plan
SBI Magnum Income Fund Floating Rate Plan - Savings Plus Bond Plan
SBI Magnum Income Fund Floating Rate Plan - Long Term
SBI Magnum Income Fund
SBI Dynamic Bond Fund
SBI Magnum Gilt Fund - Short Term Plan
SBI Magnum Gilt Fund - Long Term Plan
SBI Short Term Debt Fund
SBI Ultra Short Term Debt Fund
LIQUID SCHEMES
The strategy for liquid funds include investments in short investment horizon, which includes 'cash' assets such as treasury bills, certificates of deposit and commercial paper.
SBI Magnum InstaCash Fund
SBI Magnum InstaCash Fund - Liquid Floater
SBI Premier Liquid Fund
These schemes invest in a mixture of debt and equity securities in different proportions as prescribed in the Scheme Information Document.
SBI EDGE Fund
SBI Magnum Balanced Fund
SBI Regular Savings Fund
SBI Magnum Monthly Income Plan
SBI Magnum Monthly Income Plan - Floater
SBI Capital Protection Oriented Fund - Series II
SBI Capital Protection Oriented Fund - Series III
FIXED MATURITY PLANS
These are closed ended debt schemes with a fixed maturity date and they invest in debt & money market instruments maturing on or before the date of the maturity of the scheme.
SBI Debt Fund Series 13 MONTHS 13
SBI Debt Fund Series 13 MONTHS 14
SBI Debt Fund Series 13 MONTHS 15
SBI Debt Fund Series 14 MONTHS 1
SBI Debt Fund Series 14 MONTHS 2
SBI Debt Fund Series 15 MONTHS 8
SBI Debt Fund Series 15 MONTHS 9
SBI Debt Fund Series 15 MONTHS 10
SBI Debt Fund Series 18 MONTHS 8
SBI Debt Fund Series 18 MONTHS 9
SBI Debt Fund Series 18 MONTHS 10
SBI Debt Fund Series 18 MONTHS 11
SBI Debt Fund Series 36 MONTHS 1
SBI Debt Fund Series 36 MONTHS 2
SBI Debt Fund Series 366 DAYS 1
SBI Debt Fund Series 366 DAYS 2
SBI Debt Fund Series 366 DAYS 3
SBI Debt Fund Series 366 DAYS 4
SBI Debt Fund Series 366 DAYS 5
SBI Debt Fund Series 366 DAYS 6
SBI Debt Fund Series 366 DAYS 7
SBI Debt Fund Series 366 DAYS 8
SBI Debt Fund Series 366 DAYS 9
SBI Debt Fund Series 366 DAYS 10
SBI Debt Fund Series 366 DAYS 11
SBI Debt Fund Series 366 DAYS 12
SBI Debt Fund Series 366 DAYS 13
SBI Debt Fund Series 366 DAYS 14
SBI Debt Fund Series 366 DAYS 15
SBI Debt Fund Series 366 DAYS 16
SBI Debt Fund Series 366 DAYS 17
SBI Debt Fund Series 366 DAYS 18
SBI Debt Fund Series 366 DAYS 19
SBI Debt Fund Series 366 DAYS 20
SBI Debt Fund Series 366 DAYS 21
SBI Debt Fund Series 366 DAYS 22
SBI Debt Fund Series 366 DAYS 23
SBI Debt Fund Series 366 DAYS 24
SBI Debt Fund Series 366 DAYS 25
SBI Debt Fund Series 366 DAYS 26
SBI Debt Fund Series 366 DAYS 27
SBI Debt Fund Series 60 MONTHS 1
SBI Debt Fund Series 60 MONTHS 2
SBI Debt Fund Series 60 MONTHS 3
EXCHANGE TRADED SCHEMES
Exchange Traded Funds/ Schemes (ETFs) are a basket of securities that are traded on the stock exchange.
SBI Gold Exchange Traded Scheme
SBI SENSEX ETF
FUND OF FUNDS SCHEMES
A "Fund of Funds Scheme" means a mutual fund scheme that invests primarily in other schemes of the same mutual fund or other mutual funds.
SBI Gold Fund
LITERATURE REVIEW
Mutual funds industry is a growing at a very fast rate India. Various studies and research has been on this industry by experts. Here are the lists of few books that have been referred to for the purpose of the study. Mr. M. Jaidev in his book has “Investment policy and performance of Mutual Fund” has studied
the Indian Public Sector Mutual Funds. In this book he has covered risk, rate of return. Investment policy and pricing of mutual funds. In this book he has done an empirical study covering all aspects of mutual fund investment along with the regulatory framework.
Nalini Prava Tripathy in her book “Mutual Funds in India. Emerging Issues” provides a
detailed evaluation of investment management which is not only helpful for influencing marketing operations but also for securities selection, investment research and timing and resource allocation.
Dr H. Sadak in his book “Mutual Funds in India” has highlighted the importance of financial
institutions in India. The basically focuses on the growth and development of mutual funds in India. The entire gamut of the theoretical aspects of the fund management has been critically examined in the context of the performance of mutual funds and it provides an insight into fund management and the areas of weakness.
Study by Laukkanen (2006) explains that varied attributes present in a product or service facilitate customer‟s achievement of desired end-state and the indicative facts of study show that electronic services create value for customers in service consumption.
Brown & Goetzmann(1997) emphasis on mutual fund styles. Mutual funds are typically
grouped by their investment objectives or the „style‟ of their managers. This approach is simple to apply, yet it captures nonlinear patterns of returns that result from virtually all active portfolio management styles. Classifications are superior to common industry classifications in predicting cross-sectional future performance, as well as past performance, and also outperform classifications based on risk measures and analogue portfolios. Interestingly, „growth‟ funds typically break down into several categories that differ in composition and strategy.
Syriopoulos (2002) gave its review on an analysis of investor‟s risk perception towards mutual
funds services. Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being a part of financial markets although mutual funds industry is responding very fast by analyze investor‟s perception and expectations.
Spiegel (2004) covers analyzed the security returns follow linear factor model with constant
coefficients. This paper develops and estimates a Kalman filter statistical model to track timevarying fund alphas and betas. Several tests indicate that relative to a rolling OLS model the Kalman filter model produces more accurate fund factor loadings both in and out of sample.
Bergstresser (2007) stipulates that many investors purchase mutual funds through intermediated
channels, paying brokers or financial advisors for fund selection and advice. Brokers sold funds exhibit no more skill at aggregate-level asset allocation than do funds sold through the direct channel. Our results are consistent either with substantial non-tangible benefits delivered by the brokerdistributed sector or with conflicts of interest between brokers and their clients.
Fama (2009) emphasis on the skills required for cross section of mutual funds returns. they
focuses on the aaggregate portfolio of U.S. equity mutual funds is close to the market portfolio, but the high costs of active management show up intact as lower returns to investors. Bootstrap simulations suggest that few funds produce benchmark adjusted expected returns sufficient to cover their costs.
Ivković and weisbenner (2009) studied on Individual investor mutual fund flows. They studied
the relation between individuals mutual fund flows and funds characteristics, establishing three key results. First, consistent with tax motivations, individual investors are reluctant to sell mutual funds that have appreciated in value and are willing to sell losing funds. Second, individuals pay attention to investment costs as redemption decisions are sensitive to both expense ratios and loads.
Marco.et.al (2011) analysed the risk-taking behavior of a fund manager in response to prior
performance by conducting a comparative analysis between ethical and conventional investment
portfolios. The paper examined the influence on managerial risk taking of the compensation and employment incentives.
Cederburg (2008) reviewed on the mutual fund investor behavior across the business cycle.
Mutual fund investor behavior changes across the business cycle. In economic expansions, investors strongly display the documented behaviors of chasing returns and searching for managerial skill. In contrast, recession investors do not chase returns and exhibit a weaker tendency to seek alpha. Even before controlling for momentum, no smart money effect exists in recessions.
Zhao (2004) reviewed f und families typically claim that closing a fund protects the fund superior
performance by preventing it from growing too large to be managed efficiently. Even though funds with better performance and larger size are more likely to be closed, there is no evidence that closing a fund can indeed protect its performance. Instead, fund closing decisions are more likely to be motivated by spillover effects – by closing a star fund, the fund family signals its superior performance and also bring investors attention and investments to other funds in the family. Some evidence exists to suggest that the closing strategy is effective in generating higher inflows into the rest of the family, at least in the sho rt run.
REFERENCES
Brown & goetzmann (1997) Mutual fund styles. Journal of Financial Economics, Volume 43, Issue 3, March 1997,Pages 373-399.
Bergstresser, Daniel B., Chalmers, John and Tufano, Peter, Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry (October 1, 2007). AFA 2006 Boston Meetings; HBS Finance Working Paper No. 616981. Available at SSRN: http://ssrn.com/abstract=616981 or doi:10.2139/ssrn.616981
Fama, Eugene F. and French, Kenneth R., Luck Versus Skill in the Cross Section of Mutual Fund Returns (December 14, 2009). Tuck School of Business Working Paper No. 2009-56; Chicago Booth School of Business Research Paper; Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1356021
Ivković & weisbenner (2009) studied the research paper on Individual investor mutual fund flows Journal of Financial Economics, Volume 92, Issue 2, May 2009,Pages 223-237.
Tripathy Nalini Prava “Mutual Funds in India. Emerging Issues” Vol - 1 (2007), 123-158.
Panwar Sharad and Madhumathi R “Characteristics and Performance of selected mutual funds in India.”,(2005)
Riter, Jay, R1998, The buying and selling behavior of individual investors at the turn of the year, journal of finance 43, 701-717.
Frazzini Andrea, “Dumb Money: Mutual Fund flows as the cross-section of stock returns”, NCFM‟s AMFI Material on mutual funds (workbook)
Nalini Prabha Tripathy, “Market Timing Abilities and Mutual Fund Performance- An Empirical Investigation into Equity Linked Saving Schemes” (2006) XIMB Journal of management, Vilakshan, April 2000, pp 6-8
Marco,et.al (2011) Ethical and conventional mutual fund managers show different risktaking behavior? The Spanish Review of Financial Economics, Volume 9, Issue 1,January-June 2011, Pages 11-19.
Spiegel, Matthew I., Mamaysky, Harry and Zhang, Hong, Estimating the Dynamics of Mutual Fund Alphas and Betas (October 25, 2004).Yale ICF Working Paper No. 03-03; EFA 2003 Annual Conference Paper No. 803; AFA 2004 San Diego Meetings. Available at SSRN: http://ssrn.com/abstract=389740
Syriopoulos (2002), Risk aversion and portfolio allocation to mutual fund classes.
International Review of Economics & Finance, Volume 11, Issue 4,2002, Pages 427-447.
Zhao (2004) ,why are some mutual funds closed to new investors? Journal of Banking & Finance, Volume 28, Issue 8, August 2004, Pages 1867-1887.
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http://business-standard.com/india/news/qa-sandesh-kirkire-kotak-mutual-fund/459181/
http://economictimes.indiatimes.com/Mutual_funds
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and capital appreciation realized is shared by its unit holders in proportion to the number of units owned by them. The term risk has a variety of meanings in business and everyday life. At its most general level, risk is used to describe any situation where there is uncertainty about what outcome will occur. Life is obviously very risky. Even the short term future is often highly uncertain. In probability and statistics, financial management and investment management, risk is often used in more specific sense to indicate possible variability of outcomes around some expected value. This study aims to study the investor‟s preference in selection of Mutual fu nd and measuring the fund sponsor quality. A mutual fund is a common pool of mone money y into which investors place their contributions that are to be invested in accordance with a stated objective. Being a part of financial markets although mutual funds industry is responding very fast b y analyze investor‟s perception and expectations.
INDUSTRY PROFILE Investors all over the world are making fast money from mutual fund investments. It's true that mutual funds are volatile in nature and its return is subjected to market risk. But if you are a smart investor and is also quite aware of the well-performing MF in the market, then investment not only becomes easy but also profitable and risk free. Here is the list of top 10 mutual funds in which one would like to invest in 2013, as they were top performing MF in the last 12 months, as stated by Mutual Funds India.
1. ICICI Prudential Banking and Financial Services Fund - Retail Type: Open Ended Fund Manager: Venkatesh Sanjeevi Launch Date: August 22, 2008 Fund Size (in Crore):
209.2 as on November 30, 2012
Minimum Investment (in
): 5000
It is an Open-ended equity scheme that seeks to generate long-term capital appreciation to unit holders from a portfolio that is invested predominantly in equity and equity related securities of companies engaged in banking and financial services. However, there can be no assurance that the investment objective of the Scheme will be realized. The Net Asset Asset Value (NAV) for the scheme scheme is 22.52 as on December December 21, 2012. The 52 week high value of the scheme is 22.86 as on December 19, 2012 and 52 week low value was 13.24 as on Deccember 30, 2011. Since its inception, the Risk Return Value (RRV) has been 20.60 percent and for the month has been 7.75 percent. The Earnings Per Share (EPS) is
15.90 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, IndusInd Bank, Mahindra & Mahindra Financial Services, Union Bank Of India, Oriental Bank of Commerce, Yes Bank, Federal Bank and ING Vysya Bank.
2. Reliance Media & Entertainment Type: Open Ended Launch Date: September 30, 2004 Fund Size (in Crore):
85.73 as on November 30, 2012
Minimum Investment (in
): 5000
The primary investment objective of the Scheme is to generate consistent returns by investing in equity / equity related or fixed income securities of media & entertainment and other associated companies. The Net Asset Value (NAV) for the scheme is 38.59 as on December 21, 2012. The 52 week high value of the scheme is 39.18 as on December 20, 2012 and 52 week low value was 24.44 as on January 2, 2012. Since its inception, the Risk Return Value (RRV) has been 17.83 percent and for the month has been 6.94 percent. The Earnings Per Share (EPS) is
21.63 as on November 2012.
The top holdings are Zee Entertainment Enterprises, Hathway Cable & Datacom, PVR, Hinduja TMT, Sun TV, Jagran Prakashan, Dish TV India, Hindustan Media Ventures, HT Media and Network 18 Media & Investments.
3. SBI Magnum Sector Funds Umbrella - FMCG Type: Open Ended Fund Manager: Saurabh Pant. Launch Date: Jul 5, 1999 Fund Size (in Crore):
160.41 as on November 30, 2012
Minimum Investment (in
): 2000
To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. There are five sub-funds dedicated to specific
investment
themes
viz.
Information
Technology,Pharmaceuticals,
FMCG,
Contrarian
(investment in stocks currently out of favour) and Emerging Businesses. The Net Asset Value (NAV) for the scheme is 49.38 as on December 21, 2012. The 52 week high value of the scheme is 51.01 as on December 11, 2012 and 52 week low value was 31.95 as on January 2, 2012. Since its inception, the Risk Return Value (RRV) has been 13.55 percent and for the month has been 3.61 percent. The Earnings Per Share (EPS) is
38.76 as on November 2012.
The top holdings are ITC, Glaxo Smithkline Consumer, Hindustan Unilever, Agro Tech Foods, United Spirits, Emami, Kansai Nerolac Paints, Procter and Gamble Hygiene & Healthcare, VST Industries and Dabur India.
4. SBI Magnum Sector Funds Umbrella - Emerg Buss Fund Type: Open Ended Fund Manager: Rama Iyer Srinivasan. Launch Date: September 17, 2004 Fund Size (in Crore):
1032.45 as on November 30, 2012
Minimum Investment (in
): 2000
To provide the investors maximum growth opportunity through equity investments in stocks of growth oriented sectors of the economy. There are five sub-funds dedicated to specific investment themes viz. Information Technology, Pharmaceuticals, FMCG, Contrarian (investment in stocks currently out of favour) and Emerging Businesses. The investment objective of the Emerging Business Fund would be to participate in the growth potential presented
by
various
companies
that
are
considered
emergent
and
have
export
orientation/outsourcing opportunities or are globally competitive by investing in the stocks representing such companies.The fund may also evaluate emerging businesses with growth potential and domestic focus.
The Net Asset Value (NAV) for the scheme is 58.81 as on December 21, 2012. The 52 week high value of the scheme is 59.50 as on December 19, 2012 and 52 week low value was 38.85 as on January 2, 2012.
Since its inception, the Risk Return Value (RRV) has been 23.91 percent and for the month has been 5.32 percent. The Earnings Per Share (EPS) is
24.41 as on November 2012.
The top holdings are Spicejet, Muthoot Finance, Shriram City Union Finance, Kansai Nerolac Paints, Goodyear India, Petronet Lng, VST Industries, Hawkins Cooker, Page Industries and United Spirits.
5. Reliance Banking Fund - Regular - Growth Type: Open Ended Fund Manager: Sanjay Parekh and Shrey Loonkar Launch Date: May 26, 2003 Fund Size (in Crore):
1899.07 as on November 30, 2012
Minimum Investment (in
): 5000
The primary investment objective of the Scheme is to seek to generate continuous returns by actively investing in equity and equity related or fixed income securities of companies in the banking sector. The Net Asset Value (NAV) for the scheme is 117.37 as on December 21, 2012. The 52 week high value of the scheme is 119.36 as on December 19, 2012 and 52 week low value was 74.83 as on December 29, 2011. Since its inception, the Risk Return Value (RRV) has been 29.31 percent and for the month has been 7.76 percent. The Earnings Per Share (EPS) is
14.03 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, Bajaj Finance, State Bank of India, Federal Bank, Bank of Baroda, Axis Bank, Canara Bank, Oriental Bank of Commerce and ING Vysya Bank.
6. Religare Banking Type: Open Ended Fund Manager: Amit Ganatra. Launch Date: Jul 14, 2008 Fund Size (in Crore):
49.74 as on November 30, 2012
Minimum Investment (in
): 5000
The investment objective of the Scheme is to generate long-term capital growth from a portfolio of equity and equity-related securities of companies engaged in the business of banking and financial services. The Net Asset Value (NAV) for the scheme is 23.39 as on December 21, 2012. The 52 week high value of the scheme is 23.78 as on December 19, 2012 and 52 week low value was 15.07 as on December 30, 2011.
Since its inception, the Risk Return Value (RRV) has been 21.09 percent and for the month has been 6.22 percent. The Earnings Per Share (EPS) is
17.02 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, Axis Bank, Jammu and Kashmir Bank, Karur Vysya Bank, Federal Bank, Corporation Bank, ING Vysya Bank, Yes Bank and State Bank of India.
7. GS Bank Type: Open Ended Fund Manager: Vishal Jain. Launch Date: May 27, 2004 Fund Size (in Crore):
61.5 as on November 30, 2012
Minimum Investment (in
): 10000
To provide investment return that closely corresponds to the returns of the securities as represented by the CNX Bank Index. The Net Asset Value (NAV) for the scheme is 1,251.62 as on December 21, 2012. The 52 week high value of the scheme is 1,271.48 as on December 19, 2012 and 52 week low value was 807.07 as on December 30, 2011-. Since its inception, the Risk Return Value (RRV) has been 20.97 percent and for the month has been 7.36 percent. The Earnings Per Share (EPS) is
19.64 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Bank of Baroda, Yes Bank, Punjab National Bank and Canara Bank.
8. Principal Emerging Bluechip Type: Open Ended Fund Manager: Dhimant Shah. Launch Date: Nov 12, 2008 Fund Size (in Crore):
286.45 as on Nov 30, 2012
Minimum Investment (in
): 5000
The primary objective of the Scheme is to achieve long-term capital appreciation by investing in equity & equity related instruments of mid cap & small cap companies. The Net Asset Value (NAV) for the scheme is 33.13 as on December 21, 2012. The 52 week high value of the scheme is 33.75 as on December 19, 2012 and 52 week low value was 21.74 as on December 29, 2011. Since its inception, the Risk Return Value (RRV) has been 33.84 percent and for the month has been 6.42 percent. The Earnings Per Share (EPS) is
22.81 as on November 2012.
The top holdings are Glaxo Smithkline Consumer, Amara Raja Batteries, Shree Cement, Divis Laboratories, ICICI BANK, Jammu and Kashmir Bank, HCL Technologies, ING Vysya Bank, Godrej Consumer Products and Apollo Tyres.
9. UTI Banking Type: Open Ended Fund Manager: Anoop Bhaskar and Arun Khurana Launch Date: March 9, 2004 Fund Size (in Crore):
396.36 as on November 30, 2012
Minimum Investment (in
): 5000
Investment objective is "capital appreciation" through investments in the stocks of the companies/institutions engaged in the banking and financial services activities. The Net Asset Value (NAV) for the scheme is 47.87 as on December 21, 2012. The 52 week high value of the scheme is 48.61 as on December 19, 2012 and 52 week low value was 30.65 as on December 30, 2011. Since its inception, the Risk Return Value (RRV) has been 19.50 percent and for the month has been 8.13 percent. The Earnings Per Share (EPS) is
16.23 as on November 2012.
The top holdings are ICICI BANK, HDFC Bank, State Bank of India, Axis Bank, IndusInd Bank, Bank of Baroda, Canara Bank, Punjab National Bank, Oriental Bank of Commerce and Vysya Bank.
10. Reliance Shares Banking Exchange Traded Fund Type: Open Ended Fund Manager: Krishan Daga. Launch Date: Jun 24, 2008 Fund Size (in Crore):
12.32 as on November 30, 2012
Minimum Investment (in
): 5000
The investment objective of Reliance Banking Exchange Traded Fund (RBETF) is to provide returns that, before expenses, closely correspond to the total returns of the securities as represented by the CNX Bank Index. However, the performance of Scheme may differ from that of the underlying index due to tracking error. There can be no assurance or guarantee that the investment objective of RBETF will be achieved. The Net Asset Value (NAV) for the scheme is 1,290.43 as on December 21, 2012. The 52 week high value of the scheme is 1,310.79 as on December 19, 2012 and 52 week low value was 830.06 as on December 30, 2011. Since its inception, the Risk Return Value (RRV) has been 20.95 percent and for the month has been 7.47 percent. The Earnings Per Share (EPS) is
19.64 as on November 2012.
The top holdings are HDFC Bank, ICICI BANK, State Bank of India, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, Bank of Baroda, Yes Bank, Punjab National Bank and Canara Bank.
With 25 years of rich experience in fund management, we at SBI Funds Management Pvt. Ltd. bring forward our expertise by consistently delivering value to our investors. We have a strong and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. We are a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies. With our network of over 222 points of acceptance across India, we deliver value and nurture the trust of our vast and varied family of investors. Excellence has no substitute. And to ensure excellence right from the first stage of product development to the post-investment stage, we are ably guided by our philosophy of „growth through innovation‟ and our stable investment policies. This dedication is what helps our customers achieve their financial objectives. Vision
“To be the most preferred and the largest fund house for all asset classes, with a consistent track record of excellent returns and best standards in customer service, product innovation, technology and HR practices.”
Services Mutual Funds
Investors are our priority. Our mission has been to establish Mutual Funds as a viable investment option to the masses in the country. Working towards it, we developed innovative, need-specific products and educated the investors about the added benefits of investing in capital markets via Mutual Funds. Today, we have been actively managing our investor's assets not only through our investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors. This makes us one of the largest investment management firms in India, managing investment mandates of over 5.4 million investors.
Portfolio Management and Advisory Services
SBI Funds Management has emerged as one of the largest player in India advising various financial institutions, pension funds, and local and international asset management companies. We have excelled by understanding our investor's requirements and terms of risk / return expectations, based on which we suggest customized asset portfolio recommendations. We also provide an integrated end-to-end customized asset management solution for institutions in terms of advisory service, discretionary and non-discretionary portfolio management services. Offshore Funds
SBI Funds Management has been successfully managing and advising India's dedicated offshore funds since 1988. SBI Funds Management was the 1st bank sponsored asset management company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with an objective to provide our investors with opportunities for long-term growth in capital, through well-researched investments in a diversified basket of stocks of Indian Companies.
FUND HOUSE EXPERTISE Investment Expertise
The best investment strategies put together by the best minds, our Fund Managers. With a sharp eye to monitor, gauge and understand the changes in the market, our fund managers and analysts gear up to meet new challenging environments. Their ability to capture the growth potential of Indian securities and manage complex portfolios as well as the drive to deliver optimum results is their forte. With superior securities selection, incisive research, intensive coverage including internal forecasts, active monitoring and regular tracking, our dedicated team ensures minimization of risks while protecting our investor's interest. Always.
Investment Philosophy Growth through innovation.
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.
What is innovation? Innovation is the process of turning ideas into concrete plans for progressive growth. We always seek to provide our investors with opportunities for progressive growth through our innovative products, superior stock selection and active portfolio management. Accordingly, we also enhance and optimize asset allocation and stock selection based on internal and external research. Derivatives are used to hedge and rebalance portfolios to keep the risk factors at reasonable levels, The three main phrases, which act as a guiding force for the investment performance, are as follows:
Long-term capital appreciation for the investor: Our fund manager's view is not guided by any momentum play but by the objective of generating sustainable performance for the investor.
Superior stock selection: Our team is encouraged to be ahead of the rest of the industry in terms of identifying new ideas & opportunities.
Active fund management: While the performance of all the funds is benchmarked against a specific index, we do not encourage our investment team to replicate the index composition with the fund portfolio.
Optimal Risk Management
Risk Management is an inherent part of any business. As one of the core focus areas, each of our strategies is subject to close scrutiny on a continuous basis. Regulatory agencies around the world are placing increasing pressure on institutions to measure and manage risk better. At SBI Funds Management, we follow enterprise wide approach to risk management with a dedicated, experienced and professional risk management team covering significant functions of the organization. Risk Management focuses on:
Identifying actual and potential areas of risk
Assessing the adequacy of internal controls
Proposing risk mitigating measures and
Safeguarding investor interest through ongoing analysis and monitoring
Investment Objective
Setting benchmarks time and again. For our investors.
Our objective is to endeavor to outperform our benchmarks through well researched investments in Indian equities. This is achieved by implementing an active management style based on fundamental analysis, leading to the construction of a portfolio. It could be blended, large cap, mid cap, or specific sector oriented - which aims at capturing the growth potential of Indian equities.
INVESTMENT TEAM
Navneet Munot Executive Director & Chief Investment Officer Erwan Keraudy VP – Investments Fund Managers - Equity
R. Srinivasan
Jayesh Shroff
Head - Equities
Fund Manager
Sohini Andani
Richard D‟Souza
Fund Manager
Fund Manager
Ajit Dange
Ruchit Mehta
Fund Manager
Fund Manager
Raviprakash Sharma
Saurabh Pant
Chief Dealer & Fund Manager
Fund Manager
Tanmaya Desai
Neeraj Kumar
Fund Manager
Dealer
Fund Managers - Fixed Income
Rajeev Radhakrishnan
Dinesh Ahuja
Head - Fixed Income
Fund Manager
R Arun
Dinesh Balachandran
Fund Manager
Fund Manager
Portfolio Management Services
Nipa Ladiwala
Aashish Wakankar
Vice President – PMS (Institutional)
Vice President – PMS (Offshore)
Amruth Rao Senior Fund Manager – PMS (Debt)
TRUSTEES
SBI Mutual Fund Trustee Company Private Limited (the “Trustee”), through its Board of Directors discharge its obligations as Trustee of the SBI Mutual Fund. The Board of Directors of SBI Mutual Fund Trustee Company Private Limited are as under: Shri T.L. Palani Kumar
Shri C.M. Dixit
Independent
Independent
Ms. Sandra Martyres
Ms. Bharati Rao
Associate
Associate
Mr. Krishnamurthy Vijayan
Mr. Shriniwas Joshi
Independent
Independent
BOARD OF DIRECTORS - AMC
Mr. Pratip Chaudhuri
Mr. Deepak Kumar Chatterjee
Chairman & Associate Director
Managing Director & CEO
Mr. Shishir Joshipura
Dr. H. Sadhak
Independent Director
Independent Director
Mrs. Madhu Dubhashi
Dr. H. K. Pradhan
Independent Director
Independent Director
Mr. Jashvant Raval
Mr. Fathi Jerfel
Independent Director
Associate Director
Mr. Thierry Raymond Mequillet
Mr. Philippe Batchevitch
Associate Director
Alternate Director to Mr. Jerfel
MANAGEMENT TEAM
Mr. Deepak Kumar Chatterjee
Mr.
Philippe
MD & CEO
Batchevitch Deputy CEO
Mr. K. T. Ravindran
Mr. Navneet Munot
Executive Director & Chief Operating Officer
Executive Director & Chief Investment Officer
Mr. R. S. Srinivas Jain
Mr. D. P. Singh
Executive Director & Chief Marketing Officer (Strategy and International
Executive Director
Business)
& Chief Marketing Officer
(Domestic
Business) Ms. Aparna Nirgude
Mr.
Chief Risk Officer
Kaushik Senior
Rakesh
Vice
President (Accounts & Administration) Ms. Vinaya Datar
Mr. C. A. Santosh
CS & Compliance Officer
Head - Customer Service
PRODUCTS
Every investor is unique.
At SBI Mutual Fund we know that every investor has unique financial goals and requires a different set of products. Which is why, we have a wide range of schemes that fulfill every kind of investors‟ requirements. Each scheme is managed by devising a different strategy which is reflective of the investors profile and carries with it different risks and rewards. There are six basic asset classes, which we manage, and variations of these six asset classes form various products:
EQUITY SCHEMES
The primary objective of the equity asset class is to provide capital growth / appreciation by investing in the equity and equity related instruments of companies over medium to long term.
Equity/ Growth Funds
SBI Magnum Equity Fund
SBI Magnum Global Fund
SBI BlueChip Fund
SBI Magnum Multicap Fund
SBI Magnum Multiplier Plus 1993
SBI Magnum Midcap Fund Sectoral Funds
SBI Emerging Businesses Fund
SBI Contra Fund
SBI FMCG Fund
SBI IT Fund
SBI Pharma Fund
Thematic Funds
SBI Magnum COMMA Fund
SBI Infrastructure Fund
SBI PSU Fund ELSS Funds
SBI Magnum Taxgain Scheme 1993
SBI Tax Advantage Fund - Series I
SBI Tax Advantage Fund - Series II
Index Funds
SBI Nifty Index Fund Market Neutral Strategy
SBI Arbitrage Opportunities Fund
DEBT / INCOME SCHEMES
The schemes in this asset class generally invest in fixed income securities such as bonds, corporate debentures, government securities (gilts), money market instruments, etc. and provide regular and steady income to investors.
SBI Magnum Children's Benefit Plan
SBI Magnum Income Fund Floating Rate Plan - Savings Plus Bond Plan
SBI Magnum Income Fund Floating Rate Plan - Long Term
SBI Magnum Income Fund
SBI Dynamic Bond Fund
SBI Magnum Gilt Fund - Short Term Plan
SBI Magnum Gilt Fund - Long Term Plan
SBI Short Term Debt Fund
SBI Ultra Short Term Debt Fund
LIQUID SCHEMES
The strategy for liquid funds include investments in short investment horizon, which includes 'cash' assets such as treasury bills, certificates of deposit and commercial paper.
SBI Magnum InstaCash Fund
SBI Magnum InstaCash Fund - Liquid Floater
SBI Premier Liquid Fund
These schemes invest in a mixture of debt and equity securities in different proportions as prescribed in the Scheme Information Document.
SBI EDGE Fund
SBI Magnum Balanced Fund
SBI Regular Savings Fund
SBI Magnum Monthly Income Plan
SBI Magnum Monthly Income Plan - Floater
SBI Capital Protection Oriented Fund - Series II
SBI Capital Protection Oriented Fund - Series III
FIXED MATURITY PLANS
These are closed ended debt schemes with a fixed maturity date and they invest in debt & money market instruments maturing on or before the date of the maturity of the scheme.
SBI Debt Fund Series 13 MONTHS 13
SBI Debt Fund Series 13 MONTHS 14
SBI Debt Fund Series 13 MONTHS 15
SBI Debt Fund Series 14 MONTHS 1
SBI Debt Fund Series 14 MONTHS 2
SBI Debt Fund Series 15 MONTHS 8
SBI Debt Fund Series 15 MONTHS 9
SBI Debt Fund Series 15 MONTHS 10
SBI Debt Fund Series 18 MONTHS 8
SBI Debt Fund Series 18 MONTHS 9
SBI Debt Fund Series 18 MONTHS 10
SBI Debt Fund Series 18 MONTHS 11
SBI Debt Fund Series 36 MONTHS 1
SBI Debt Fund Series 36 MONTHS 2
SBI Debt Fund Series 366 DAYS 1
SBI Debt Fund Series 366 DAYS 2
SBI Debt Fund Series 366 DAYS 3
SBI Debt Fund Series 366 DAYS 4
SBI Debt Fund Series 366 DAYS 5
SBI Debt Fund Series 366 DAYS 6
SBI Debt Fund Series 366 DAYS 7
SBI Debt Fund Series 366 DAYS 8
SBI Debt Fund Series 366 DAYS 9
SBI Debt Fund Series 366 DAYS 10
SBI Debt Fund Series 366 DAYS 11
SBI Debt Fund Series 366 DAYS 12
SBI Debt Fund Series 366 DAYS 13
SBI Debt Fund Series 366 DAYS 14
SBI Debt Fund Series 366 DAYS 15
SBI Debt Fund Series 366 DAYS 16
SBI Debt Fund Series 366 DAYS 17
SBI Debt Fund Series 366 DAYS 18
SBI Debt Fund Series 366 DAYS 19
SBI Debt Fund Series 366 DAYS 20
SBI Debt Fund Series 366 DAYS 21
SBI Debt Fund Series 366 DAYS 22
SBI Debt Fund Series 366 DAYS 23
SBI Debt Fund Series 366 DAYS 24
SBI Debt Fund Series 366 DAYS 25
SBI Debt Fund Series 366 DAYS 26
SBI Debt Fund Series 366 DAYS 27
SBI Debt Fund Series 60 MONTHS 1
SBI Debt Fund Series 60 MONTHS 2
SBI Debt Fund Series 60 MONTHS 3
EXCHANGE TRADED SCHEMES
Exchange Traded Funds/ Schemes (ETFs) are a basket of securities that are traded on the stock exchange.
SBI Gold Exchange Traded Scheme
SBI SENSEX ETF
FUND OF FUNDS SCHEMES
A "Fund of Funds Scheme" means a mutual fund scheme that invests primarily in other schemes of the same mutual fund or other mutual funds.
SBI Gold Fund
LITERATURE REVIEW
Mutual funds industry is a growing at a very fast rate India. Various studies and research has been on this industry by experts. Here are the lists of few books that have been referred to for the purpose of the study. Mr. M. Jaidev in his book has “Investment policy and performance of Mutual Fund” has studied
the Indian Public Sector Mutual Funds. In this book he has covered risk, rate of return. Investment policy and pricing of mutual funds. In this book he has done an empirical study covering all aspects of mutual fund investment along with the regulatory framework.
Nalini Prava Tripathy in her book “Mutual Funds in India. Emerging Issues” provides a
detailed evaluation of investment management which is not only helpful for influencing marketing operations but also for securities selection, investment research and timing and resource allocation.
Dr H. Sadak in his book “Mutual Funds in India” has highlighted the importance of financial
institutions in India. The basically focuses on the growth and development of mutual funds in India. The entire gamut of the theoretical aspects of the fund management has been critically examined in the context of the performance of mutual funds and it provides an insight into fund management and the areas of weakness.
Study by Laukkanen (2006) explains that varied attributes present in a product or service facilitate customer‟s achievement of desired end-state and the indicative facts of study show that electronic services create value for customers in service consumption.
Brown & Goetzmann(1997) emphasis on mutual fund styles. Mutual funds are typically
grouped by their investment objectives or the „style‟ of their managers. This approach is simple to apply, yet it captures nonlinear patterns of returns that result from virtually all active portfolio management styles. Classifications are superior to common industry classifications in predicting cross-sectional future performance, as well as past performance, and also outperform classifications based on risk measures and analogue portfolios. Interestingly, „growth‟ funds typically break down into several categories that differ in composition and strategy.
Syriopoulos (2002) gave its review on an analysis of investor‟s risk perception towards mutual
funds services. Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being a part of financial markets although mutual funds industry is responding very fast by analyze investor‟s perception and expectations.
Spiegel (2004) covers analyzed the security returns follow linear factor model with constant
coefficients. This paper develops and estimates a Kalman filter statistical model to track timevarying fund alphas and betas. Several tests indicate that relative to a rolling OLS model the Kalman filter model produces more accurate fund factor loadings both in and out of sample.
Bergstresser (2007) stipulates that many investors purchase mutual funds through intermediated
channels, paying brokers or financial advisors for fund selection and advice. Brokers sold funds exhibit no more skill at aggregate-level asset allocation than do funds sold through the direct channel. Our results are consistent either with substantial non-tangible benefits delivered by the brokerdistributed sector or with conflicts of interest between brokers and their clients.
Fama (2009) emphasis on the skills required for cross section of mutual funds returns. they
focuses on the aaggregate portfolio of U.S. equity mutual funds is close to the market portfolio, but the high costs of active management show up intact as lower returns to investors. Bootstrap simulations suggest that few funds produce benchmark adjusted expected returns sufficient to cover their costs.
Ivković and weisbenner (2009) studied on Individual investor mutual fund flows. They studied
the relation between individuals mutual fund flows and funds characteristics, establishing three key results. First, consistent with tax motivations, individual investors are reluctant to sell mutual funds that have appreciated in value and are willing to sell losing funds. Second, individuals pay attention to investment costs as redemption decisions are sensitive to both expense ratios and loads.
Marco.et.al (2011) analysed the risk-taking behavior of a fund manager in response to prior
performance by conducting a comparative analysis between ethical and conventional investment
portfolios. The paper examined the influence on managerial risk taking of the compensation and employment incentives.
Cederburg (2008) reviewed on the mutual fund investor behavior across the business cycle.
Mutual fund investor behavior changes across the business cycle. In economic expansions, investors strongly display the documented behaviors of chasing returns and searching for managerial skill. In contrast, recession investors do not chase returns and exhibit a weaker tendency to seek alpha. Even before controlling for momentum, no smart money effect exists in recessions.
Zhao (2004) reviewed f und families typically claim that closing a fund protects the fund superior
performance by preventing it from growing too large to be managed efficiently. Even though funds with better performance and larger size are more likely to be closed, there is no evidence that closing a fund can indeed protect its performance. Instead, fund closing decisions are more likely to be motivated by spillover effects – by closing a star fund, the fund family signals its superior performance and also bring investors attention and investments to other funds in the family. Some evidence exists to suggest that the closing strategy is effective in generating higher inflows into the rest of the family, at least in the sho rt run.
REFERENCES
Brown & goetzmann (1997) Mutual fund styles. Journal of Financial Economics, Volume 43, Issue 3, March 1997,Pages 373-399.
Bergstresser, Daniel B., Chalmers, John and Tufano, Peter, Assessing the Costs and Benefits of Brokers in the Mutual Fund Industry (October 1, 2007). AFA 2006 Boston Meetings; HBS Finance Working Paper No. 616981. Available at SSRN: http://ssrn.com/abstract=616981 or doi:10.2139/ssrn.616981
Fama, Eugene F. and French, Kenneth R., Luck Versus Skill in the Cross Section of Mutual Fund Returns (December 14, 2009). Tuck School of Business Working Paper No. 2009-56; Chicago Booth School of Business Research Paper; Journal of Finance, Forthcoming. Available at SSRN: http://ssrn.com/abstract=1356021
Ivković & weisbenner (2009) studied the research paper on Individual investor mutual fund flows Journal of Financial Economics, Volume 92, Issue 2, May 2009,Pages 223-237.
Tripathy Nalini Prava “Mutual Funds in India. Emerging Issues” Vol - 1 (2007), 123-158.
Panwar Sharad and Madhumathi R “Characteristics and Performance of selected mutual funds in India.”,(2005)
Riter, Jay, R1998, The buying and selling behavior of individual investors at the turn of the year, journal of finance 43, 701-717.
Frazzini Andrea, “Dumb Money: Mutual Fund flows as the cross-section of stock returns”, NCFM‟s AMFI Material on mutual funds (workbook)
Nalini Prabha Tripathy, “Market Timing Abilities and Mutual Fund Performance- An Empirical Investigation into Equity Linked Saving Schemes” (2006) XIMB Journal of management, Vilakshan, April 2000, pp 6-8
Marco,et.al (2011) Ethical and conventional mutual fund managers show different risktaking behavior? The Spanish Review of Financial Economics, Volume 9, Issue 1,January-June 2011, Pages 11-19.
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