Final Project Sip Mutual Funds

A STUDY ON SYSTEMATIC INVESTMENT PLAN AT
SBI MUTUAL FUND MANAGEMENT PVT. LTD, TIRUPATI”

PROJECT REPORT
Submitted to
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTHAPUR
In partial Fulfillment of the Requirements for the award of degree of
MASTER OF BUSINESS ADMINISTRATION
Submitted by
G. RAJESH
Roll No: 18AK1E0044
Under the Guidance Of
Mr.L.VINCENT RAJAKUMAR, MBA.

Assistant Professor
DEPARTMENT OF MANAGEMENT STUDIES

ANNAMACHARYA INSTITUTE OF TECHNOLOGY & SCIENCES
(Affiliated to JNTUA Ananthapur and recognized by AICTE New Delhi)
Venkatapuram (V), Karakambadi (Post), Renigunta (M)
SRIKALAHASTHI, Andhra Pradesh 517520.
(2018 2020)
ANNAMACHARYA INSTITUTE OF TECHNOLOGY
& SCIENCES
(Approved by AICTE, New Delhi and JNTU Anantapuram)
Venkatapuram (V), Karakambadi (Post), Renigunta (M),
SRIKALAHASTHI
DEPARTMENT OF MANAGEMENT STUDIES
CERTIFICATE
This is certify that the project work entitled, “A STUDY ON SYSTEMATIC

INVESTMENT PLAN AT SBI MUTUAL FUND MANAGEMENT PVT. LTD, TIRUPATI”
Submitted by G.RAJESH (Roll No: 18AK1E0044) To Jawaharlal Nehru Technological
University,Anantapur. For the Award of the degree of Master of Business Administration.
Is a record of bonafide project work carried out under my guidance. The study is his original
work and it has not previously formed the basis for the award of any degree, .The project
report represents an independent work on the part of candidate
Project Guide Head of the Department

Mr.L.VINCENT RAJAKUMAR, MBA. Dr .K. HARITHA MBA., Ph.D.
Assistant Professor Head Of The Department
Department of Management Studies Department of Management Studies
Annamacharya Institute of Annamacharya Institute of
Technology & Sciences, Technology & Sciences,
Karakambadi Road Karakambadi Road
Tirupati Tirupati
External Examiner
PLACE :
DATE :
DECLARATION
I hereby declare that the Project Report entitled A STUDY ON SYSTEMATIC

INVESTMENT PLAN AT SBI MUTUAL FUND MANAGEMENT PVT LTD,
TIRUPATI” submitted by G.RAJESH (ROLL NO: 18AK1E0044) is a project work done
under the guidance of Mr. L. VINCENT RAJAKUMAR, MBA., Assistant Professor,
Department of Management Studies, Annamacharya Institute of Technology & Science,
Tirupati .As a part of JNTU ANANTAPUR Curriculum for MBA IV sem. It is my Original
work and the data has been collected from the authentic sources. Further I Declare that the
Report has been prepared and submitted for academic purpose only.
PLACE :
DATE :
G.RAJESH
Roll No: 18AK1E0044
ACKNOWLEDGEMENT
I would like to thank all those who rendered their valuable suggestions and
encouragement, which led to the successful outcome of the project.
Firstly, I would like to acknowledge my sincere debt of gratitude to my internal guide,

Mr.L.VINCENT RAJAKUMAR, MBA. Assistant professor, Annamacharya Institute of
Technology & Sciences, who has been a guiding force and inspiration and has shown me a
proper direction to complete this project and I sincerely thank my External Project Guide
Mr.K.THIMMA REDDY for his Guidance.
My profound thanks to Dr. K. Haritha, MBA Ph.D Head of the Department, M.B.A.,
Annamacharya Institute of Technology and Science, for the cooperation and encouragement.
I convey my respectable thanks to Prof. C. NADAMUNI REDDY, M,Tech,

Ph.D.,FIE.,MISTIE.,MORSI., Principal, Annamacharya Institute of Technology and
Science, for giving an opportunity to do the project.
My propound thanks to the Management, Annamacharya Institute of Technology

and Sciences, TIRUPATI for giving continuous encouragement and support.
I would like to thank my entire faculty, who helped me in completion of my project.
Finally I would like to thank all my family members, friends and all those who
supported me directly or indirectly in accomplishing the project successfully.
(G. RAJESH)
Roll No: 18AK1E0044
LIST OF CONTENTS
Chapter No TITLE PAGE NO
1. Introduction
1 1.2 Industry Profile 1-24
1.3 Company Profile
1.4 Product profile
2 REVIEW OF LITERATURE 25-30
3. Research Methodology
3.1Need for the study
3.2Objectives of the study 31-37
3
3.3 Scope of the study
3.4 Research methodology
3.5 Limitations of the study
4 Data Analysis and Interpretation 38-63
 Findings 64
 Suggestions 65
5
 Conclusion 66
Annexure
 Bibliography 67
6
A STUDY ON SYSTEMATIC INVESTMENT PLAN AT SBI MUTUAL FUNDS
CHAPTER-1
1.1 INTRODUCTION OF SYSTEMATIC INVESTMENT PLAN
A Mutual Fund is a pool of money that is managed on behalf of the investors, by a

professional fund manager. The manager uses the money to buy stocks, bonds and other
securities according to specific investment objective that have been established for the fund.
The investment range from shares to debentures to money market instruments. Each mutual
fund with different type of schemes is managed by respective asset management company
(AMC). An investor can invest his money one or more schemes depending up his choice. The
income earned through these investments and the capital appreciations realized are shared by
its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is
the most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.
Mutual fund is a common pool of money in which investor place their contribution
that is to be invested in accordance with the stated objective. The fund belongs to all the
investors depending on the proportion of his contribution to the fund.
Mutual funds in India are governed by the SEBI (mutual fund) regulations 1996 as amended
from time to time.
The end of millennium marks 36 years of existence of mutual funds in this country. The
ride through these 36 years is not been smooth.
UTI commenced its operations from July 1964 with a view to encouraging savings and
investment and participation in the income, profits and gains accruing to the corporation from
the acquisition, holding management and disposal of securities Different provisions of the UTI
Act laid down the structure of management, scope of business, powers and functions of the
Trust as well as accounting, disclosures and regulatory requirements for the Trust.
One thing is certain the fund industry is here to stay. The industry was one-entity
show till 1986 when the UTI monopoly was broken when SBI and Canarabank mutual
fund entered the arena. This was followed by the entry of others like BOI, LIC, GIC, etc.
sponsored by public sector banks. Starting with an asset base of Rs0.25bn in 1964 the
industry has grown at a compounded average growth rate of 26.34% to its current size of
Rs1130bn
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The period 1986-1993 can be termed as the period of public sector mutual funds
(PMFs). From one player in 1985 the number increased to 8 in 1993. The party did not last
long. When the private sector made its debut in 1993-94, the stock market was booming.
Mutual funds have been around for a long period of time to be precise for 36 yrs but
the year 1999 saw immense future potential and developments in this sector This year
signaled the year of resurgence of mutual funds and the regaining of investor confidence in
these MFs. This time around all the participants are involved in the revival of the funds
the AMCs, the unit holders, the other related parties. However the sole factor that gave
lift to the revival of the funds was the Union Budget. The budget brought about a large
number of changes in one stroke. An insight of the Union Budget on mutual funds taxation
benefits is provided later.
MEANING OF MUTUAL FUND
A Mutual Fund is a pool of money that is managed on behalf of the investors, by

a professional fund manager. The manager uses the money to buy stocks, bonds and other
securities according to specific investment objective that have been established for the fund.
The investment range from shares to debentures to money market instruments Each mutual
fund with different type of schemes is managed by respective asset management company . The
income earned through these investments and the capital appreciations realized are shared by
its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost.
Definition of Mutual Fund
Mutual fund is a common pool of money in which investor place their
contribution that is to be invested in accordance with the stated objective. The fund belongs to
all the investors depending on the proportion of his contribution to the fund.
Mutual funds in India are governed by the SEBI (mutual fund) regulations
1996 as amended from time to time.
The end of millennium marks 36 years of existence of mutual funds in this

country. The ride through these 36 years is not been smooth.
Page 2
UTI commenced its operations from July 1964 with a view to encouraging
savings and investment and participation in the income, profits and gains accruing to the
corporation from the acquisition, holding management and disposal of securities Different
provisions of the UTI Act laid down the structure of management, scope of business, powers
and functions of the Trust as well as accounting, disclosures and regulatory requirements for
the Trust.
IMPORTANCE OF THE MTUAL FUND
Wealth creation over the years has changed its avenues and area of interest for the
investors in India. The prototype investment where the post offices and typically the
scheduled banks through savings and fixed deposits have changed and with the awareness of
finance, Mutual fund has became an excellent route to create wealth for the public at large
Mutual fund is a pool of money is invested in accordance with the common

objective stated before the investment to the investors.
Here is the concept of mutual fund which is a suitable for the common man as it
offers an opportunity to invest and diversified, professionally managed basket of securities
comparatively at low cost. The investors pool there money to the fund manager and the fund
manager invest the money in the securities and after generating returns passed back to the
investors.
The mutual fund has a structure which is regulated by SEBI and the Association of
mutual funds of India (AMFI) plays an advisory role for the mutual funds. There are lot of
entities involved in between Unit Holders and SEBI which includes Sponsors, Trustees, Asset
Management Company (AMC), mutual fund, Transfer agent and custodian.
Basically there are only two types of mutual fund in the industry:
OpenEnded
Close Ended
Open ended funds are those where investors sell and repurchases units at all times,
commonly known as Unit trusts in UK and mutual fund in USA.
Close ended funds are generally fixed as it makes a one-time sale of fixed no. of
units, known as Investment trusts in UK and Investment Company in USA.
There on mutual funds have been divided into more subcategories Load and No-load
funds, Tax exempt and Non tax- exempt, money market/liquid funds, Gilt funds, diversified
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debt funds, focused debt funds, High Yield debt funds, Assured return funds, fixed term plan
series, equity funds and strong capital appreciation tool for the purpose of financial planning.
TYPES OF MUTUAL FUNDS SCHEMES:
MUTUAL FUND CAN BE CLASSIFIED BASED ON:
1. By Structure
2. By Investment objective
3. Other Schemes
A mutual Fund by Structure it can be classified into:-
1. Open-ended schemes
2. Close-ended schemes
3. Interval schemes
Based on the Investment objective they can be classified into:-
1. Growth Schemes
2. Income schemes
3. Balanced schemes
4. Money market schemes
A Mutual Fund scheme can be classified into open-ended scheme or close-
ended scheme depending on its maturity period.
Open-ended Fund/Scheme
An open-ended fund scheme is one that is available for subscription and repurchase on a
continuous basis. These schemes do not have fixed maturity period. Investors can
conveniently buy and sell units at Net Asset Value (NAV) related prices which are
declared on a daily basis. The key feature of open-ended schemes is liquidity
Closed-ended Fund/Scheme
A close- ended fund or scheme has a stipulated maturity period, e.g., 5-7 years. The
fund is open for subscription only during a specified period at the time of launch of the
scheme. Investors can invest in the scheme at a time of the initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchange where the
units are listed. In order to provide an exit route to the investors, some close-ended funds
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give an option of selling back the units to the mutual fund through periods repurchase of
NAV-related prices. SEBI regulations stipulated that at least one of the two exit routes is
provided to the investor, i.e., either repurchase facility or through listing on stock
exchanges. These mutual fund schemes disclose NAV generally on a weekly basis.
By Investment Objective
A scheme can also be classified as growth scheme, income scheme,

or balanced scheme considering its investment objective. Such schemes may be open-
ended or close-ended schemes as described earlier. Such schemes may be classified mainly
as follows:
1. Growth/Equity-oriented Schemes
For investors having a long- term outlook seeking appreciation over a period of
time. The aim of growth funds is to provide capital appreciation over the medium to long-
term. Such schemes normally invest a major part of their corpus in equities. Such funds
have comparatively high risks. These schemes provide different options to the investors
like dividend option, capital appreciation etc., and the investors may choose an option
depending on their preference. The investors must indicate the option in the application
form. Mutual funds also allow investors to change the options at the later date. Growth
schemes are good
2. Income/Debt-oriented Scheme
The aim of income funds is to provide regular and steady income to investors.
Such schemes generally invest in fixed income securities such as bonds, corporate debentures,
government securities and money market instruments. Such funds are less risky compared to
equity schemes. These funds are not affected because of fluctuations in equity markets.
However, opportunities of capital appreciation are also limited in such funds. The NAVs of
such funds are affected because of a change in the interest rates fall, NAVs of such funds are
likely to increase in the short run and vice versa. However, long-term investors may not
bother about these fluctuations.
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3. Balanced Fund
The aim of balanced fund is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion indicated in their
offer documents. These are appropriate for investors looking for moderate growth. They
generally invest 40%-60% in equity and debt instruments. The funds are also affected because
of fluctuation in share prices in the stock markets. However, NAVs of such funds are likely to
be less volatile compared to pure equity funds.
4. Money market or Liquid Fund:
These funds are also income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in safer short-
term instruments such as treasury bills, certificates of deposit, commercial paper and inter-
bank call money, government securities. Returns on these schemes fluctuate much less
compared to other fund
1.3 Advantages of Mutual Funds:
Professional Management
Qualified professionals manage your money and they have research team that continuously
analyses the performance and prospects of companies. They also select suitable investment
to achieve the objectives of the schemes and expertise which will add value to your
investment. These fund managers are in a better position to manage your investment and
get higher returns.
Diversification
The cliché, dont put all your eggs in one basket really applies to the concept of
intelligent investing. Diversification lowers your risk of loss by spreading your money
across various industries. It is a rare occasion when all the stocks decline at the same
time and in the same proportion.
Sector funds will spread your investment across only one industry and it would not be wise
for your portfolio to be skewed towards these types of funds for obvious reasons.
Choice of Schemes
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Mutual Funds offer a variety of schemes that will suit your needs over a life time.
When you enter a new stage in your life, all you need to do is sit down with your
investment advisor who will help you to rearrange your portfolio to suit your altered
lifestyle.
Affordability
As small investors, many find that it is so not possible to buy shares of large
corporations. Mutual funds generally buy and sell securities in large volumes which allow
investors to benefit from lower trading costs. The smallest investor can get started on
mutual funds because of the minimal investment requirements. You can invest with a
minimum of Rs. 500 in a on a regular.
Tax Benefits
Investments held by investors for a period of 12 months or more qualify for

Capital gains and will be taxed accordingly (10%of the amount by which the investment
appreciated, or 20%after factoring in the benefits of cost indexation, whichever is lower)..
Liquidity
With open-ended funds, you can redeem all or part of your investment any time you
wish and receive the current value of the shares or the NAV related price. Funds are more
liquid than most investment in shares, deposits and bonds and the process is standardized,
making it quick and efficient so that you can get your cash in hand as soon as possible.
Transparency
The performance of a mutual fund is reviewed by various publications and rating

agencies, making it easy for investors to compare one to the other. Once you are part of a
mutual fund scheme, you are provided with regular updates, for examples daily NAV.
Well Regulated
All Mutual Funds are registered by SEBI and they function within the provision
of strict regulations designed to protect the interests of investors. The operations of Mutual
Funds are regularly monitored by SEBI
Flexibility
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Through features such as regular investment plans, regular withdrawal plans

and dividend reinvestment plans, you can systematical invest or withdraw funds accordingly
to your needs and convenience
Low Costs
Mutual Funds are a relatively less expensive way to invest compared to directly
investing in the capital markets because the benefits of scale in brokerage, custodial and other
fees translate into lower costs for investors.
Characteristics of Mutual Funds
 A mutual fund actually belongs to the investors who have pooled their funds. The
ownership of the mutual fund is in the hands of the investors.
 A mutual fund is managed by investment professionals and others services providers,

who earn a fee their services, from the fund.
 The pool of the funds is invested in a portfolio of marketable investments. The value
of the portfolio is updated every day.
 The investors share in the fund is denominated by units. The value of the units
changes with the change in the portfolios value, everyday. The value of one unit of
the investment is called as the Net Asset Value or NAV
RISK ASSOCIATED WITH MUTUAL FUND INVESTMENT
At the cornerstone of investing is the basic principle that the greater the risk you take,
the greater the potential reward. Typically risk is defined as short-term price variability. But
on a long-term basis, risk is the possibility that your accumulated real capital will be
insufficient to meet your financial goals. And if you want to reach your financial goals, you
must start with an honest appraisal of your own personal comfort zone with regard to risk,
individual tolerance for risk varies, creating a distinct investment personality for each
investors. Some investor can accept short-term volatility with ease, others with near panic.
So whether you consider your investment temperament to be conservative, moderate or
aggressive you need to focus on how comfortable or uncomfortable you will be as the value
of your investment moves up or down.
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Mutual Funds offer incredible flexibility in managing Investment risk.

Diversification and Automatic Investing (SIP) are two key techniques you can to reduce your
investment risk considerably and reach your long-term financial goal
TYPES OF RISKS
All investment involves some from of risk. Even an insured bank account is subject
to the possibility that inflation will rise faster than your earning, leaving you with less real
purchasing power than when you started (Rs. 1000 gets you less than it got your father when
he was your age). Consider these common types of risk and evaluate them against potential
rewards when you select an investment.
Market Risk
At times the prices or yields of all the securities in a particular market rise or fall
due to broad outside influence When this happen, the stock prices of both an outstanding,
highly profitable company and a fledgling corporation may be affected. This change in price
is due to market risk
Inflation Risks
Sometimes referred to as loss of purchasing power. Whenever inflation sprints

forward faster than earnings on your investment, you run the risk that youll actually be able
to buy less, not more. Inflation risk also occurs when prices rise faster than your returns.
Credit Risk
In short, how stable is the company or entity to which you lend your money when
you invest. How certain are you that it will able to pay the interest you are promised, or repay
your principal when the investment matures
Interest Risk
Change interest rates affect both equities and bonds in many ways. Investors are reminded
that predicting which way rates wick go is rarely successful. A diversified portfolio can
help in offsetting these changes.
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NET ASSET VALUE (NAV)
The net assets value of the Fund is the cumulative market value of the assets
fund net of its liabilities. The Fund is dissolved or liquidated, by selling off all the assets in
the fund; this is the amount shareholders would collectively own. This gives rise to the
concept of the net assets value per unit, which is the value, represented by the ownership of
one unit in the fund. It is calculated simply by dividing the net assets value fund by the
number of units. However, most people refer loosely to the NAV per unit as NAV, ignoring
the per unit. We also abide by the same convention.
Calculation of NAV
The most important part of the calculation is the valuation of the assets owned by the
Fund. Once it is calculated, the NAV is simply the net value of the assets divided by the
Number of units outstanding. The detailed method for the calculation of the net asset value
is given below.
The net asset value is the actual value of a unit on any business day; NAV is the barometer
of the performance of the scheme. The net asset value is the market value of
the assets of the schemes minus its liabilities and expenses. The NAV is the net asset value
of the scheme divided by the number of units outstanding on the valuation
NAV is calculated as follows
Market value of Fund investment + receivables + accrued income- liabilities accrued

expenses
Number of Units outstanding
VOLATILITY MEASUREMENT OF MUTUAL FUND
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When considering a funds volatility, an investor may find it difficult to decide which
fund will provide the optimal risk-reward combination.
combination Optimal Portfolio Theory and Mutual
Funds One examination of the relationship between portfolio returns and risk is the efficient
frontier, a curve that is a part of the modern portfolio theory. The curve forms from a graph
plotting return and risk indicated by volatility, which is represented by standard deviation.
According to the modern portfolio theory, funds lying on the curve are yielding the maximum
return possible given the amount of volatility.
Standard Deviation
The standard deviation essentially reports a funds volatility, which indicates the
tendency of the returns to rise or fall drastically in a short period of time. A security that is
volatile is also considered higher risk because its performance may change quickly in either
direction at any moment. The standard deviation of a fund measures this risk by measuring
the degree to which the fund fluctuates in relation to its mean return, the average return of a
fund over a period of time.
Beta
While standard deviation determines the volatility of a fund according to the disparity of
its return over a period of time, beta, another useful statistical measure, determines the
volatility, or risk, of a fund in comparison to that of its index or benchmark. A fund with a
beta very close to 1 means the funds performance closely matches the index or
benchmarka beta greater than 1 indicates greater volatility than the overall market, and beta
less than 1 indicates less volatility than the benchmark.
Investors expecting the market to be bullish may choose funds exhibiting high
betas, which increases investors chances of bearing the market. If an investor expects the
market to be bearish in the near future, the funds that have betas less than 1 are a good choice
R-Squared (R2)
The R-squared of a fund advises investors if the beta of a mutual

fund is measured against an appropriate benchmark. Measuring the correlation of a funds
movements to that of an index, R-squared describe the level of association between the
funds volatility and market risk, or more specifically, the degree to which a funds
volatility is a result of the day-to-day fluctuations experienced by the overall market.
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R-squared values range between 0 and 1, where 0 represents the least correlation and 1
represents full correlation. If a funds beta has an R-squared value that is close to 1, the
beta of the fund should be trusted. On the other hand, an R-squared value that is close to 0
indicates that the beta is not particularly useful because the fund is being compared against
an appropriate benchmark.
An inappropriate benchmark will skew more than just beta. Alpha is calculated using beta,
so if the R-squared value of a fund is low, it is also wise not to trust the figure given for
alpha
Alpha
Up to this point, we have learned how to examine figures that measure risk posed by
volatility, but how do we measure the extra return rewarded to you for taking on risk posed
by factors other than market volatility? Enter alpha, which measure how much if any of
this extra risk helped the fund outperform its corresponding benchmark. Using beta,
alphas computation compares the funds performance to that of the benchmarks risk-
adjusted returns and establishes if the funds returns outperformed the markets given the
same amount of risk. For example, if a fund has an alpha of 1, it means the fund
outperformed the benchmark by 1%. Negative alphas are bad in that they indicate that the
fund under performed for the amount of extra, fund-specific risk that the funds investors
undertook
Conclusion
This explanation of these four statistical measure provide with the

basic knowledge on using them apply the premises of the optimal portfolio theory, which
uses volatility to establish risk and states a guideline for determining how much of a
funds volatility carries a higher potential for return Benchmarks used in Mutual fund
Industry.
The BSE Sensex and S&P CNX Nifty are used as a benchmark for actively managed all
equity portfolios. If the equity portfolio is broader based, S&P CNX 500 is used as the
benchmarks. For bond funds, the IBex, an index for government bonds is used as
benchmark.
SYSTEMATIC INVESTMENT PLAN (SIP)
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Introduction:-
Stock markets all over the world are prone to volatility which is proved by the
movements in stock markets in the past. Investors invest in stock markets with some objective
in mind. In doing so, there is always a dilemma in investors' mind that ponders over the right
time to invest. Many investors keep waiting for the markets to come down and a lot of times,
markets move in just the opposite direction leaving such investors with no option but to keep
their money idle or to invest at even higher levels. Here the investor is given the option of
preparing a pre determined number of post dated cheque in favor of the fund.
Concept of Systematic Investment Plan (SIP):
Just like banks and Post office offers recurring deposit schemes, mutual funds offer
an SIP option. Investors opting for an SIP option commit investing a pre-specified sum of
money at regular intervals (generally every month) in a particular mutual fund scheme. Each
periodic investment entitles investors to receive units of that mutual fund scheme, which is
subject to its NAV prevailing at that time.
How will SIP help:
When you buy the units of a fund you may do so when the NAV is really high. For instance,
lets say bought the units of a fund when the Bull Run was at its peak, leading to high NAV.
If the make dips after hat the value of your investments falls and you may have to wait for a
long while to make a return on your investment. BT, if your invest via a SIP, you do not
commit the error of buying units when the market is at its peak. Since you are buying some
units at a high cost and some units a lower price. Over time, you chances of making a profit are
much higher when compared to a one time investment.
ADVANTAGES OF SIP:
1 Rupee cost averaging:-
SIPs are based on the concept of Rupee cost averaging. It helps
investors to limit their purchases in rising markets and expand them in falling markets. It helps
to tap the tops and bottoms of a stock market thus averaging out the cost per unit of a mutual
fund scheme (see example given above).
2 Disciplined Saving:
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SIPs play a vital role in helping us improve our investment habits. It reminds
investors of their commitment to contribute a specified amount to the pool at regular intervals.
This makes investors more disciplined in their approach towards investment which finally
helps them in saving more money (as this monthly investment could otherwise be used for
spending on unnecessary items).
3 Compounding Benefits:
Because of the power of compounding, investors who start early
get the maximum advantage. SIPs have provided maximum returns when investments are made
for a long period of time (i.e. for 3 to 5 years) and investors who follow this strategy gain from
the compounding effect of returns on their investments.
4 Risk-free from Timing:
Many investors try to time the market and fail most of the time for the
simple reason that it is virtually not possible for anybody to time the market. SIPs enable
investors to capitalize on upside and downside movements in the market and be care-free from
the tedious task of timing the market. Investors opting for SIPs don't need to worry about the
daily movements in the market.
Disadvantages of SIP
1. No downside Protection:
Investors should remember that despite of all the advantages that SIPs have, they
are subject to market risks and do not protect investors from making a loss or ensure those
profits in falling markets.
2. Portfolio risk remains:
SIPs are also subject to security risk. Mutual fund schemes investing in
portfolios that turns out to generate negative returns are bound to make investors incur a loss
even if the investment is made through SIPs.
1.2 INDUSTRY PROFILE

HISTORICAL EVALUTION OF MUTUAL FUND INDUSTRY:
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The mutual fund industry in India started in 1963 with the formation of Unit Trust
of India, at the initiative of the Government of India and Reserve Bank. The history of mutual
fund in India can be broadly divided into four distinct phases.
FIRST Phase (1964-87)-UTI all the way

This phase begin with the inception of the Unit Trust of India (UTI). It
remained the only mutual fund player in the country till 1987. UTI started its operations in
July 1964 with a view to encouraging savings and investment and participation in the
income, profits and gains accruing the corporation from the acquisition, holding, management
and disposal of securities. In short, it was set up by the Indian Government with a view to
augments small savings in the country and to channelize these savings to the capital markets.
UTI witnessed a slow and steady growth over the 1970s and 1980s and by the end of 1988 it
had an Asset under Management (AUM) of Rs.6, 700 crore. It still continues to be the largest
player in the domestic mutual fund industry with an AUM of Rs. 23,500 crore as on March
31, 2005.
SECOND Phase (1987-1993)-Enter Public Sector mutual funds

Public sector mutual funds set up by sector banks, Life Insurance Corporations of
Indian (LIC) and the General Insurance Corporation of India (GIC) entered the market in
1987.The first non-UTI Mutual Fund was the SBI Mutual Fund established in June 1987,
followed by Can bank Mutual Fund in December 1987, Punjab National Bank in August
1989, India Bank Mutual Fund in November 1989, Bank of India Mutual in June 1990and
Bank of Baroda Mutual Fund in October 1992. LIC set up its Mutual Fund in June 1989 while
GIC established its mutual fund in December 1990. During this period, the total assets of the
industry grew to about Rs.61028 crore with the total number of schemes increasing to about
167 by the end of 1994.
THIRD PHASE (1993-2003)-Private players enter the scene
This phase marked the entry of private sector funds. The phase also signaled the
intensification of the competition. Both domestic and foreign players entered the schemes to
investors. Kothari pioneer Mutual Fund was the first private sector fund to be established in
association with a foreign fund. The opening up of the market to private players saw
international players. The total AUM by the end of January 312005 increased to $34,927
million from $23,260 million in March 1995 with a CAGR of 6.92%.
FORTH Phase (sinceFebruary2003)-UTIs restructuring and beyond
Page 15
In February 2003 the Unit Trust of India Act 1963 was repealed and UTI was
bifurcated into two separate entities: Specified Undertaking of the Unit Trust of India,
which is still under the Government of India, and the UTI Mutual Fund Ltd. This was done
in the wake of the severe payments crisis that UTI suffered on account of its assured return
schemes of US-64 that finally resulted in an adverse impact on the Indian capital markets.
US-64 was the first scheme launched by UTI with a significant equity exposure and the
returns of which were not linked to the market. However, the industry has overcome that
shock and is hopped to have learnt its lessons.
MUTUAL FUND A GLOBALLY PROVEN INVESTMENT AVENUE

Worldwide, Mutual Fund or unit trust as it is referred to in some parts of the world,
has a long and successful history. The popularity of Mutual Fund has increase manifold in
developed financial markets, like the United States. As at the end of March 2006, in the US
alone there were 8002 Mutual Fund with total assets of over US $ 9.36 trillion (Rs. 427 lack
core)
In India, the Mutual Fund industry started with the setting up of the Unit Trust of
India in 1964. Public sector banks and financial institutions were allowed to establish MF in
1987. Since 1993, private sector and foreign institutions were permitted to set up MFs.
In February 2003, following the repeal of the Unit Trust of India Act 1963 the
erstwhile UTI was bifurcated into two separate entities Viz. The specified undertaking of the
Unit Trust of India, representing broadly, the absets of US 64 Schemes, assured the turns and
certain others scheme and UTI MF conforming to SEBI MF Regulations.
As at the end of March 2006, there were 29 MFs, which managed assets of Rs
231862 cores (Us $52 billion) under 592 schemes this fast growing industry is regulated by
the Securities and Exchange Board of India (SEBI)
Origin and structure
The concept of mutual fund originated in 1890 with Robert Fleming by

establishing the first investment trust in Scotland in 1980 the mutual fund industry in India
was started by UTI in 1964 with the introduction of US-64.
Page 16
The private sector and foreign sectors entered the mutual fund industry in 1993.
Currently there are around 34 mutual fund organizations in India. The Security and Exchange
Board of India came out with comprehensive regulations in 1993 which defined the structure
of mutual fund and asset management companies for the first time. The Indian mutual fund
industry has already started opening up many of investment opportunities to Indian investor.
Mutual fund serves as a link between the savings public and the capital market as they
mobilize savings from investment and bring them to borrowers in the capital market.
Thus a mutual fund uses the money collected from investors to buy those assets which
are specifically permitted by its stated investment objective. Thus an equity fund would buy
mainly equity assets ordinary shares, preference shares, warrants etc. A bond fund would
mainly buy debt instruments such as debentures, bonds or government securities. It is these
assets which are owned by the investor in the same proportion as their contribution bears to
the total contribution of all investors put together.
The structure of mutual fund in India is governed by the SEBI (mutual fund)
regulations, 1996 these regulations make mandatory to for mutual funds to have a three tire
structure of Sponsor Trustee Asset Management Company the sponsor is the promoter of
the mutual fund and appoint the trustees.
The trustees are responsible to the investor in the mutual fund, and appoint
AMC for managing the investment portfolio.
1. Sponsor:
Page 17
The sponsor is the promoter of the mutual fund. The sponsor establishes the fund and
registers the same with the SEBI. Sponsor appoints the Trustees, Custodian and the AMC
with the prior approval of SEBI, and in accordance with the SEBI regulation.
2. Trustees:
Trustees are the people within a mutual fund organization who are responsible for ensuring
that investors interest in a scheme are properly taken care of. In return for their services,
they are paid trustee fees, which are normally charged to the scheme.
3 Asset Management Company
AMCs manage the investment portfolios of schemes. A AMCs income comes from the
management fees it charges the scheme it manages. In order to earn the management fee, an
AMC has naturally to employ people and bear all the establishment costs that are related to its
activity, such as for premises, furniture, computers and other assets, software development,
communication costs, etc. These are to be met out of the management fee earned. Within the
AMC; fund managers are to ensure that schemes funds are invested to achieve the objective
of the scheme and in the interest of the unit holder. The CEO, in turn, has to ensure that the
fund managers perform this role. In addition, compliance with various rules and regulations,
and overall risk management are the responsibility of the Mutual Funds CEO.
4. Distributors:
Distributors earn a commission for bringing investors into the scheme of a mutual
fund. This commission is an expense for the scheme, although there are occasions when an
AMC may choose to bear the cost, wholly or partly.
Depending on the financial and physical resources at their disposal, the distributors
could be:
 Tier 1 distributors who have their own or franchised network reaching out to investors
all across the country; or
 Tier 2 distributors who are generally regional players with some reach within their
region; or
 Tier 3 distributors who are small and marginal players with limited reach.
Page 18
 In recognition of the anomaly in the distribution structure, a body of financial planners

is expected to emerge in the Indian financial market. They will safeguard investors
interest in return for a fee from the investor.
5. Registrars:
An investors holding in mutual fund schemes is typically tracked by the schemes
Registrar and Transfer agent (R&T). Some AMCs prefer to handle this role in-house, i.e.
on their own instead of appointing an R&T. The registrar or the AMC as the case may be
maintains an account of the investors investment in and disinvestment from the
schemes. Requests to invest more money into a scheme or to redeem money against
existing investments in a scheme are processed by the R&T.
6. Custodians/ Depository
The custodian maintains custody of the securities in which the scheme invests as
distinct from the registrar who tracks the investment by investors in the scheme. This ensures
an independent record of the investment of the scheme. The custodian also follows up on
various corporate actions, such as rights, bonus and dividends declared by investee companies
1.3 COMPANY PROFILE
Introduction:
SBI Funds Management is a joint venture between State Bank of India, the
countrys largest bank and Societe General Asset Management (France). A subsidiary of
state bank of India, the largest public sector bank in India & a joint venture with societe
General asset management with a shareholding ratio of 63:37. One of the worlds leading
fund management companies. With over 25 years of rich experience in fund management,
SBI Funds Management Pvt. Ltd. Is one of the largest investment management firms in India
managing investment mandates of over 57 lack investors with a network of over 130 points
of acceptance spread across India our vast family of investors is expanding faster and further.
SBI MF draws its strength from India's Largest Bank State Bank of India and
Society General Asset Management, France.
Page 19
SBI MUTUAL FUND BACK GROUND

SBI MUTUAL FUND, the first bank sponsored mutual fund in India, was
incorporated on 29 June, 1987 by SBI. The first scheme launched by the fund was magnum
Regular Income Scheme-1987. The Fund has 26 schemes, out of which 21 are open-ended,
with an AUM of Rs. 27,431 Core as on 30 th November, 2007. Until May 1993, SBI Capital
Markets Limited (SBICAP), the investment banking subsidiary of SBI, was the investment
Manager as well as the Trustee of the Fund. In December 2004, SBI entered into a joint
venture agreement with society General Asset management and transferred 37% equity shares
to them.
SBI Mutual Fund has won the prestigious CNBC TV 18 Crisis Mutual Fund of the
year award 2007, apart from winning five awards for scheme performance. SBI Mutual Fund
has also won the most preferred brand of mutual fund at the CNBC Awaaz Consumer Awards
in 2006 and 2007. But above all, it is the trust of over 57 lakh investors that eggs us on to
deliver innovative and stable investment services, day after day. It is the driving force for our
team of investment experts to develop and deliver products that help investors like you
achieve their financial objectives.
SBI Mutual Fund is one of the fastest growing mutual fund houses in India having
launched 40 schemes with over Rs.55, 760.28 cores as on 31/03/2015 Assets under
Management. We are currently experiencing growth in many areas with our investor base of
over 57 lacks across India, a large network of over 100 points of acceptance, 29 Investor
Service Centers, 60Investor Service Desks and 42 District Organizers."
SBI Mutual Fund (SBI MF) is one of the largest mutual funds in the country
with an investor base of over 5.8 million. With over 25 years of rich experience in
fund management, SBI MF brings forward its expertise in consistently delivering
value to its investors.
SBI Mutual Fund is Indias 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 - Indias largest banking enterprise. The institution has grown immensely
since its inception and today it is India's largest bank, patronized by over 80% of the top
corporate houses of the country.
Page 20
SBI Mutual Fund is a joint venture between the State Bank of India and
Society General Asset Management, one of the worlds leading fund
management companies that manages over US$ 500 Billion worldwide.
Page 21
1.4 PRODUCT PROFILE

Equity Schemes:
The investments of these schemes will predominantly be in the stock

markets and endeavor will be to provide investors the opportunity to benefit from the
higher returns which stock 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, Sectorial Funds and Index Funds.
Diversified Equity Funds invest in various stocks across different sectors while
sectorial 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 schemes.
Investment Philosophy
The Company seeks to provide investors with opportunities for long term
growth in capital through superior stock selection and active portfolio
management.
Investor Service Centers:
Page 22
S.No Name of Fund
Page 23
1. Magnum COMMA Fund

2. Magnum Equity Fund
3. Magnum Global Fund
4. Magnum Index Fund
5. Magnum Mid Cap Fund
6. Magnum Multi cap Fund
7. Magnum Multiplier Plus 1993
8. Magnum Sector Funds Umbrella
MSFU - Emerging Businesses Fund
MSFU - IT Fund
MSFU Parma Fund
MSFU - Contra Fund
MSFU - FMCG Fund

9. SBI Arbitrage Opportunities Fund
10. SBI Blue chip Fund
11. SBI Infrastructure Fund - Series I
12. SBI Magnum Tax gain Scheme 1993
13. SBI ONE India Fund
14 SBI TAX Advantage Fund - SERIES I
Page 24
CHAPTER-II
REVIEW OF LITERATURE
The following are the selected funds in SBI mutual growth funds. They are
1.SBI Magnum IT fund:-
mid-cap fund is to provide investors with opportunities for long-term in capital along with the
liquidity of an open-ended scheme through an active management of investments in a
diversified basket of equity stocks spanning the entire market capitalization spectrum and in
debt and money market instruments.
2.SBI Magnum (FMCG):- To generate opportunities for growth along with possibility of
consistent returns by investing predominantly in a portfolio of stocks of companies engaged n
the commodity business within the following sectors- oil & gas, metals materials &
agriculture and in debt & money market instruments.
3.Magnum Multiplier fund:- to provide investors with opportunities for long-term growth in
capital along with the liquidity of an open-ended scheme by investing predominantly in a well
diversified basket of equity stocks of Mid cap companies. Mid cap companies are those
companies whose market capitalization at the time of investment is lower than the last stock n
the S&P CNX Nifty index less 20%(upper range) and above Rs.2000 crores.
4. Magnum Global fund: to provide investors maximum growth opportunities through well
researched investments n Indian equities, CDs and FCDs from selected industries with high
growth potential and in Bonds.
5. Magnum Income fund:-

to provide investors long term capital appreciation along with the liquidity of an open-ended
scheme by investing in a mix of debt and equity. The scheme will invest in a diversified
portfolio of equities of high growth companies and balance the risk through investing the rest in
a relatively safe portfolio of debt.
Page 25
KEY FEATURES OF SBI MAGNUM IT FUND
Fund type : Open-Ended

Investment plan : Growth
Launch Date : Mar 29, 2005
Minimum Investment : RS.5000
Options : Growth
Dividend
Fund manager : Sohini Andani
Total Experience : Over 16 Years
Benchmark : CNX IT Index
Asset Size (Rs Cr) : 216.75 (Mar-3-2019)
Plans & Options : Growth option and Dividend option.
Dividend with payout & reinvestment facility.
Objective : To provides investor with opportunities for long-term
In capital along with the liquidity of an Open-Ended
Scheme through an active management of investment
In a diversified basket of equity stocks spanning the
Entire market capitalization spectrum and in debt
And money market instruments.
Page 26
KEY FEATURES OF SBI MAGNUM (FMCG) FUND

Launch Date : Mar 29, 2005
Options : Growth
Dividend
Fund manager : Mr. Richard DSouza
Benchmark : BSE 200 Index
Objective : To generate opportunities for growth along
with possibilities of consistent return by investing
predominantly in a portfolio of stocks of companies
engaged in the commodity business with in the
following Sectors Oil & Gas ,Metals, Materials&
agriculture and in debt & money market
instruments
Page 27
KEY FEATURES OF SBI MAGNUM MULTIPILER FUND

Launch Date : Aug 08, 2005
Options : Growth
Dividend
Fund manager : Mr. Ajit Dange
Benchmark : CNX Commodities Index
Dividend option provides facility for
Payout & reinvestment.
Objective : To provide investors with opportunities for
Long-term growth in capital along with the
Liquidity of an open-ended scheme by investing
Predominately in a well diversified basket of
Equity stocks of it companies.
It companies are those companies whose
Market capitalization at the time of investment
Is lower than the last stock in the S&P
CNX Nifty Index Less 20% and above
Rs200Crores.
Page 28
KEY FEATURES OF SBI MAGNUM GLOBAL FUND

Launch Date : Sep 09, 2005
Options : Growth
Dividend
Fund manager : Mr. Srinivasan
Benchmark : CNX Midcap Index
Asset Size (Rs Cr) : RS 915.38 Crores(Mar-3-2019)
Objective : To provides investors maximum growth
Opportunity through well researched investment
In Indian equities, CDS and FCDS from selected
Industries with high growth potential and in Bonds
KEY FEATURES OF SBI INCOME FUND
Page 29

Investment plan : Income
Launch Date : Dec 31, 1995
Options : Growth
Dividend
Fund manager : Mr. Dinesh Ahuja
Benchmark : CRISAL Income fund Index
Asset Size (Rs Cr) : 374.04 Crores (Mar-3-2019)
Dividend with Payout & reinvestment.
Objective : To provide investors long term capital
Appreciation along with the liquidity of an
Open-ended scheme by investing in a mix of
debt and equity. The scheme will invest in a
Diversified portfolio of equities of high growth
Companies and balance the risk through investing
The rest in a relatively safe portfolio of debt.
CHAPTER-3
Page 30
RESEARCH METHODOLOGY
3.1 NEED FOR THE STUDY
• Generally most of the investors are eager to park their fund in Mutual Funds.
• It helps with a view of earning more returns with level of risk.
 A study is required to analyze the performance of selected funds and performance of

SIP in different funds.
Page 31
3.2 OBJECTIVES OF THE STUDY
The following objectiees preiiouely s eelecteds oors tees etudy s purpoee

 Tos Reiiews tees peroormances oos mutuals oundes by s Searpes indexs model
 Tos Aeeees tees peroormances oos mutuals oundes by s Rewards tos iolatlity
 Tos Knows tees peroormances oos eelects mutuals oundes by s Jeneons model
 Tos eialuates tees peroormances oos eelects mutuals oundes tos compares returnes wites bence
mark
 To s eiolie s a s package s oo s euggeetone s to s improie s tee s peroormance s oo s eelect s mutual
ounde
Page 32
3.3 PERIOD OF THE STUDY

 A five year data has been taken into consideration for the study purpose starting
from 2015-16 to 2018-19.
Page 33
3.4 SCOPE OF THE STUDY
 Scope of the current study is limited to magnum Equity growth mutual fund of SBI
mutual fund.
 The study is basically to evaluate the performances of fidelity equity growth fund
schemes by taking the last five years NAV i.e., 2015-2019.
 We can estimate future rate of returns to invest in the mutual funds to gain and save
the money
Page 34
3.5 SOURCES OF DATA
My study consists of secondary data.
 SECONDARY DATA: Fact sheet, Internet, Web- sites, Reference Books.

 TYPE OF RESEARCH: Descriptive.
 ANALYTICAL TOOLS: Return tools, Standard Deviation.
There is some tools are there. That is
1. Treynor model
2. Sharpe model
3. Jensen performance model
1. TREYNOR MODEL:
Jack Treynor evaluated this model which can be used to calculate the
return per unit of the risk. This done by assuming that all investors average to risk
would like to maximize this value.
The PM=Rp-Rf

Rp: average return of portfolio.
Rf: average return of risk free rate of investment.
 =a measure of systematic risk.
2. SHARPE MODEL:
William sharpe developed this model in 1996. It measures to the total risk not merely
systematic risk a performance measures is calculated as follows
St = Rp-Rf
p
Page 35
: Standard deviation of rate of return
Page 36
3.6 LIMITATIONS OF THE STUDY
 Tees etudy s limiteds oors eelecteds Fundes only
 Tees etudy s ies limiteds tos eialuates tees peroormances oors 5s y eares only s i e s SIP,s 2015-2019
 Tees etudy s ies confneds tos tees datas aiailables oroms tees oacts eeeete,s webeitees dues tos non-
acceeeibility s oos oteers eourcee
Page 37
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
Investment date Investment Amount Purchase Units Purchased

Price
2019 Q1 2000 24 06 83.12

Q2 2000 22 94 87.18
Q3 2000 19 91 100.45
Q4 2000 25 26 79.17
2018 Q1 2000 19 77 101.16
Q2 2000 20.56 97.27
Q3 2000 22.94 87.18
Q4 2000 20.27 98.66
2017 Q1 2000 7.98 250.62
Q2 2000 12.63 158.47
Q3 2000 17.58 113.76
Q4 2000 9.08 220.26
2016 Q1 2000 18.29 109.34
Q2 2000 17.42 114.81
Q3 2000 14.42 138.69
Q4 2000 24.95 80.25
2015 Q1 2000 26.37 75.84
Q2 2000 29.23 68.42
Q3 2000 22.65 88.3
Q4 2000 27.63 72.38
TABLE 4.1: SBI MAGNUM IT FUND:
source(compiled from source of data)
Page 38
GRAPH: 4.1
2019 2018 2017 2016 2015

INFERENCE:
Both table & graph implies the cost advantage of Rupee, through Units
purchased at various price levels. In the I quarter 2017 more units allotted (250.62) at price (7.98)
to the investors and in the 2nd quarter 2015 least units allotted (68.42) at price (29.23) to the
investors. This fund performed well because the purchase price is very less and units allocated
to the investors in very high.
Page 39
TABLE 4.1.1: SBI MAGNUM (FMCG) FUND-

Investment date Investment Amount Purchase Price Units Purchased
2019 Q1 2000 29.24 68.39
Q2 2000 32.44 61.65
Q3 2000 31.76 62.97
Q4 2000 30.61 65.33
2018 Q1 2000 22.53 88.77
Q2 2000 26.23 76.24
Q3 2000 30.74 65.06
Q4 2000 20.96 95.41
2017 Q1 2000 12.72 157.23
Q2 2000 15.44 129.53
Q3 2000 18.43 108.51s
Q4 2000 12.42 161.03
2016 Q1 2000 14.8 135.13
Q2 2000 13.56 147.49
Q3 2000 13.78 145.30
Q4 2000 18.43 108.51
2015 Q1 2000 12.75 156.86
Q2 2000 14.00 142.85
Q3 2000 15.39 129.95
Q4 2000 14.59 137.08
Page 40
GRAPH: 4.1.1
2019 2018 2017 2016 2015

INFERENCE:
Both table & graph implies the cost advantage of Rupee, through Units purchased at
various price levels. In the IV quarter 2017 more units allotted (161.03) at price (12.42) to the
investors and in the 2nd quarter 2015 least units allotted (68.42) at price (29.23) to the investors
In this 2017 year the fund performed well because the purchase price is very less and units
allocated to the investors in very high. This fund performed a bit lower than: SBI Magnum
(FMCG) fund.
TABLE 4.1.2: SBI MAGNUM MULTIPILER FUND (G):
Page 41

2019 Q1 2000 78.61 25.44
Q2 2000 79.76 25.07
Q3 2000 71.34 28.03
Q4 2000 89.76 22.28
2018 Q1 2000 75.21 26.59
Q2 2000 80.5 24.84
Q3 2000 90.4 22.12
Q4 2000 75.78 26.39
2017 Q1 2000 40.25 49.68
Q2 2000 58.42 34.23
Q3 2000 68.79 29.07
Q4 2000 40.69 49.15
2016 Q1 2000 62.31 32.09
Q2 2000 50.81 39.36
Q3 2000 52.00 38.46
Q4 2000 89.36 22.38
2015 Q1 2000 48.75 41.02
Q2 2000 59.71 33.49
Q3 2000 71.82 27.84
Q4 2000 54.8 36.49
GRAPH: 4.1.2
Page 42
2019 2018 2017 2016 2015
INFERENCE:
Both table & graph implies the cost advantage of Rupee, through Units purchased at
various price levels. In the I quarter 2017 more units allotted (49.68) at price (40.25) to the
investors and in the 3rd quarter 2019 least units allotted (22.12) at price (90.4) to the investors.
In This2017 year fund performed well because the purchase price is very less and units
allocated to the investors in very high.
TABLE 4.1.3: SBI MAGNUM INCOME FUND:
Page 43
2019 Q1 2000 23.45 85.28

Q2 2000 23.94 83.54
Q3 2000 24.41 81.93
Q4 2000 23.11 86.54
2018 Q1 2000 22.41 89.24
Q2 2000 22.75 87.91
Q3 2000 22.89 87.37
Q4 2000 22.04 90.74
2017 Q1 2000 21.08 94.87
Q2 2000 21.69 92.20
Q3 2000 21.86 91.49
Q4 2000 22.61 88.85
2016 Q1 2000 20.74 96.43
Q2 2000 20.47 97.70
Q3 2000 20.43 97.89
Q4 2000 21.01 95.90
2015 Q1 2000 19.74 101.31
Q2 2000 19.88 100.60
Q3 2000 20.48 97.65
Q4 2000 19.74 101.31
GRAPH: 4.1.3
Page 44
2019 2018 2017 2016 2015

s our ce(compiled
from source of data)
INFERENCE:
purchased at various price levels. In the II quarter 2015 more units allotted (100.60) at price
rd
(19.88) to the investors and in the 3 quarter 2019 least units allotted (81.93) at price (24.41)
to the investors .In This 2015 year fund performed well because the purchase price is very less
and units allocated to the investors in very high.
TABLE 4.1.4: SBI MAGNUM GLOBAL FUND (G):
Page 45
2019 Q1 2000 53.41 37.44

Q2 2000 57.04 35.06
Q3 2000 53.99 37.04
Q4 2000 58.59 34.13
2018 Q1 2000 50.5 39.60
Q2 2000 52.77 37.90
Q3 2000 60.88 32.85
Q4 2000 49.9 40.08
2017 Q1 2000 21.06 94.96
Q2 2000 35.73 55.97
Q3 2000 43.19 46.30
Q4 2000 23.08 86.65
2016 Q1 2000 45.25 44.19
Q2 2000 35.42 56.46
Q3 2000 34.07 58.70
Q4 2000 68.2 29.32
2015 Q1 2000 40.34 49.57
Q2 2000 46.54 42.97
Q3 2000 52.87 37.82
Q4 2000 44.82 44.62
GRAPH: 4.1.4
Page 46
201 201 201 201 201

9 8 7 6 5 source(compiled from
source of data)
INFERENCE:
purchased at various price levels. In the I quarter 2017 more units allotted (94.96) at price
(21.06) to the investors and in the 3rd quarter 2019 least units allotted (32.85) at price (60.88)
to the investors .In This 2019 year This fund performed well because the purchase price is very
less and units allocated to the investors in very high.
4.2: SBI MAGNUM IT FUND
Page 47
Year Qtr1 Qtr2 Qtr3 Qtr4 Annual

2019 -4.8 -6.5 -12.7 7.9 -14.9
2018 -2.5 1.8 10.0 9.6 24.0
2017 -12.1 47.9 35.0 -0.2 121.6
2016 -26.7 -2.0 -17.9 -38.3 -64.4
2015 -0.6 9.2 -10.0 9.6 4.1
Average Return ( ) =
=
=14.08
Calculation of standard deviation:
= =61.25
Page 48
Calculation of beta:
X Y XY
-24.21 -14.9 360.72 586.12
17.43 24.0 418.32 303.80
81.03 121.6 9853.24 6565.86
-52.45 -64.4 3377.78 2751
47.15 4.1 193.31 2223.12
∑XY =14203.39 ∑ 12429.91
β=
= =1.15
4.2.1: SBI MAGNUM IT FUND
RETURN OF MANGAM IT FUND VS BENCHMARK RETURN
YEAR RETURN ON FUND ( X) RETURN ON INDEX ( X)

2019 -14.9 -24.21
2018 24.O 17.43
Page 49
2017 121.6 81.03

2016 -64.4 -52.45
2015 4.1 47.15
GRAPH:4.2

INFRENCE:
From the above diagram it is found that the fund yielded 121.06 per return while
index returns 81.03 per in 2017. In the year 2016 index return is -52.45 per while fund return is
-64.4per.
4.3: SBI MAGNUM FMCG FUND

2019 -4.5 9.4 -1.7 1.6 5.5
2018 9.2 14.3 17.2 -1.1 47.3
2017 -2.4 19.8 18.4 -0.2 65.3
2016 -19.7 -6.3 0.9 -10.4 -33.0
2015 -9.7 8.6 9.3 19.6 27.2
Average return (
Page 50
Calculation of standard deviation:
= 34.17
Calculation of beta:
X Y XY
-24.21 5.5 -133.15 586.12
17.43 47.3 8244.39 303.80
81.03 65.3 5291.25 6565.86
-52.45 -33 1730.85 2751
47.15 27.2 1282.48 2223.12
∑X=68.95 ∑Y=112.3 ∑XY=16415.82 ∑
Page 51
4.3.1: SBI MAGNUM FMCG FUND
RETURN OF MANGAM FMCG FUND VS BENCHMARK RETURN

2019 5.5 -24.21
2018 47.3 17.43
2017 65.3 81.03
2016 -33 -52.45
2015 27.2 47.15
GRAPH:4.3.1
INFRENCE:
From the above diagram it is found that the fund yielded 65.3 per return while index
returns 81.03 per in 2017. In the year 2016 index return is -52.45 per while fund return is
-33per.
Page 52
4.4:SBI MAGUM MULTIPLIER PLUS (G)

2019 -12.4 -1.6 -10.5 -7.1 -26.1
2018 -0.8 4.8 11.7 -1.2 17.9
2017 -1.1 38.5 15.5 -0.2 84.0
2016 -30.3 -15.4 1.7 -23.2 -55.3
2015 -7.5 22.5 18.2 24.0 62.6
Average return =
Calculation of Standard deviation:
Standard deviation ( =
Calculation Beta:
X Y XY
-24.21 -26.1 631.88 586.12
17.43 17.9 311.99 303.80
Page 53
81.03 84.0 6806.52 6565.86

-52.45 -55.3 2900.48 2751
47.15 62.6 2951.59 2223.12
4.4.1:SBI MAGUM MULTIPLIER PLUS (G)
RETURN OF MANGAM MULTIPLIER FUND VS BENCHMARK RETURN

2019 -26.1 -24.21
2018 17.9 17.43
2017 84.0 81.03
2016 -55.3 -52.45
2015 62.6 47.15
GRAPH:4.4.1
INFRENCE:
From the above diagram it is found that the fund yielded 84 per return while index
-55.3per.
Page 54
4.5:SBI MAGNUM INCOME FUND (G)

2019 1.5 1.8 1.9 2.8 8.6
2018 1.7 1.4 0.7 1.0 4.8
2017 -6.8 2.1 0.1 -0.2 -2.5
2016 -1.2 -1.2 -0.2 10.5 7.6
2015 - 0.7 2.7 2.2 6.1
Average return =
Calculation of Standard deviation:
Standard deviation =
Calculation of Beta:
X Y XY
-24.21 8.6 -208.20 586.12
17.43 4.8 83.66 303.80
81.03 -2.5 -202.57 6565.86
-52.45 7.6 -398.62 2751
47.15 6.1 287.61 2223.12
Page 55
4.5.1:SBI MAGNUM INCOME FUND (G)
RETURN OF MANGAM INCOME FUND VS BENCHMARK RETURN
YEAR RETURN ON FUND ( X) RETURN ON FUND ( X)

2019 8.6 -24.21
2018 4.8 17.43
2017 -2.5 81.03
2016 7.6 -52.45
2015 6.1 47.15
GRAPH:4.5.1
INFRENCE:
Page 56
From the above diagram it is found that the fund yielded -2.5 per return while index
7.6per.
4.6:SBI MAGNUM GLOBAL FUND (G)

2019 -8.8 3.5 -5.7 -7.3 -14.6
2018 1.2 2.4 14.8 -4.2 16.9
2017 -8.8 60.3 18.9 -0.2 114.0
2016 -33.7 -18.4 -4.7 -34.0 -67.0
2015 -8.1 15.4 10.8 27.6 50.5
Average return =
Standard deviation =
= 60.89
Page 57
Calculation Beta:
X Y XY
-24.21 -14.6 353.46 586.12
17.43 16.9 294.56 303.80
81.03 114 9237.42 6565.86
-52.45 -67 3514.15 2751
47.15 50.5 2381.07 2223.12
4.6.1:SBI MAGNUM GLOBAL FUND (G)
RETURN OF MANGAUM GLOBAL FUND VS BENCHMARK RETURN
YEAR RETURN ON FUND ( X) RETURN ON FUND ( X)

2019 -14.6 -24.21
2018 16.9 17.43
2017 114 81.03
2016 -67 -52.45
2015 50.5 47.15
4.6.1GRAPH:
Page 58

INFRENCE:
From the above diagram it is found that the fund yielded 114.0 per return while
index returns 81.03 per in 2017. In the year 2016 index return is -52.45 per while fund return is
-67.0 per.
4.7:SELECTED FUNDS RETURNS VS RISK
Table Showing Return vs Risk
FUNDS RETURN RISK
IT 14.08 61.25
FMCG 22.46 34.17
GLOBAL 19.96 60.89
INCOME 4.92 3.92
MULTIPLIE 16.62 52.25

R
GRAPH:
Page 59
INFRENCE:
SBI Magnum Income fund has well performed with the return of 4.9 percentage for the
risk 3.92 percentage .Then Global, FMCG, Multiplier and IT are performed well but risk very
higher than the returns.
4.8:BETA Values of the FUNDS
FUNDS BETA VALUES
IT 1.15 Aggressiv
e Fund
Aggressiv
FMCG 34.17 e Fund
Aggressiv
MULTIPLIE 1.08 e Fund
R
Aggressiv
GLOBAL 1.25 e Fund
INCOME -0.06 Defensive

Fund
GRAPH:
Page 60
INFERENCE:
Magnum IT fund, FMCG, Multiplier, Global fund are aggressive fund with beta>1. But
FMCG fund performed Well.
TREYNOR RATIO
The PM=Rp-Rf

 =a measure of systematic risk.
Magnum IT Fund = 14.08-8 = 5.28

1.15
FMCG Fund = 14.46-8 = 11.20

1.29
Page 61
MULTIPLIEER Fund = 16.62-8 = 7.98

1.08
INCOME Fund = 4.92-8 = 51.33

-0.06
GLOBAL Fund = 19.96-8 = 9.56

1.25
SHARPE RATIO
St = Rp-Rf
p
: Standard deviation of rate of return
Magnum IT Fund = 14.08-8 = 0.09

61.25
FMCG Fund = 22.46-8 = 0.42

34.17
MULTIPLIEER Fund = 16.62-8 = 0.16

52.25
INCOME Fund = 492.8-8 = -0.78

3.92
Page 62
GLOBAL Fund = 19.96-8 = 0.19

60.89
4.9: STATISTICAL ANALYSIS OF FUND PERFORMNCE
Funds Treynor Sharpe Ranking
IT 5.28 0.09 5
FMCG 11.20 0.42 2
MULTIPLIER 7.98 0.14 4
GLOBAL 9.56 0.19 3
INCOME 51.33 -0.78 1

Source (compiled from source of data)
4.10:STATISTICAL ANALYSIS OF FUND PERFORMNCE
GRAPH:

INFRENCE:
The Treynor Ratio having both systematic risk and it is uncontrollable risk but
sharpe ratio including both systematic risk. It is controllable and because it is internal risk. But
Page 63
Treynor ratio having the external risk like political, marketable environmental risks so that is
uncontrollable risk.
As per performance measures Income fund in the 1st place, FMCG fund in 2nd
place, Global fund is 3rd place and Multiplier & IT fund got 4th ,5th place respectively. Here
Income fun performed well.
CHAPTER -5
FINDINGS, SUGGESTIONS & CONCLUSION
5.1 FINDINGS
1. Since the number of investors in mutual fund has increased tremendously, the
assets under management in mutual funds industry had increased.
2 The SIP performance in Magnum global fund is better when compared to

other equity funds.
3 SBI Magnum Multiplier & SBI Magnum (FMCG) fund performance in SIP is
less when compared to the SBI Magnum IT fund and SBI Magnum Income
Fund.
4 SBI Magnum IT fund and SBI Magnum Income Fund performed a bit lower
than compared to other funds.
Page 64
Page 65
5.2 SUGGESTIONS
 The SBI Magnum IT fund and SBI Magnum Income Fund and SBI Magnum Global
fund are suggestion to continue with their portfolio for the coming years.
 The SIP performance of SBI Magnum Multiplier & SBI Magnum (FMCG) fund
performance activities has to take sufficient steps to increase their performance.
 The fund manager should take necessary steps to control the risk..
Page 66
5.3 CONCLUSION
Investors while investing in the mutual fund have to be very cautions. The SIP
performance in the SBI Magnum IT fund and SBI Magnum Income Fund is high with
compare to other funds. The SIP performance is better in the Income Fund.
Page 67
BIBILIOGRAPHY
 Prasanna Chandra - Investement Analysis &Portfolio Management.
 Financial Management & policy 9th Edition van Home nad C.James Prentioce Hll of
India vt., New Delhi.
 Sankar Sudar Indian Mutual Funds Hand Book-Published by vision Book,7th
Edition New Delhi.
 Fact sheets
 Offer Documents
 Magazine
Business world
Business Standards
 Websites
www.moneycontrol.com
www.sbimutualfund.com
www.mutualfund.com
www.amfi india.com
www.valueresearch.com
Page 68

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A STUDY ON SYSTEMATIC INVESTMENT PLAN AT

SBI MUTUAL FUND MANAGEMENT PVT. LTD, TIRUPATI”

Mr.L.VINCENT RAJAKUMAR, MBA.

DEPARTMENT OF MANAGEMENT STUDIES

This is certify that the project work entitled, “A STUDY ON SYSTEMATIC

Project Guide Head of the Department

I hereby declare that the Project Report entitled A STUDY ON SYSTEMATIC

Firstly, I would like to acknowledge my sincere debt of gratitude to my internal guide,

I convey my respectable thanks to Prof. C. NADAMUNI REDDY, M,Tech,

My propound thanks to the Management, Annamacharya Institute of Technology

I would like to thank my entire faculty, who helped me in completion of my project.

Chapter No TITLE PAGE NO

2 REVIEW OF LITERATURE 25-30

4 Data Analysis and Interpretation 38-63

1.1 INTRODUCTION OF SYSTEMATIC INVESTMENT PLAN

A Mutual Fund is a pool of money that is managed on behalf of the investors, by a

MEANING OF MUTUAL FUND

A Mutual Fund is a pool of money that is managed on behalf of the investors, by

The end of millennium marks 36 years of existence of mutual funds in this

IMPORTANCE OF THE MTUAL FUND

Mutual fund is a pool of money is invested in accordance with the common

TYPES OF MUTUAL FUNDS SCHEMES:

MUTUAL FUND CAN BE CLASSIFIED BASED ON:

A scheme can also be classified as growth scheme, income scheme,

4. Money market or Liquid Fund:

1.3 Advantages of Mutual Funds:

Investments held by investors for a period of 12 months or more qualify for

The performance of a mutual fund is reviewed by various publications and rating

Through features such as regular investment plans, regular withdrawal plans

Characteristics of Mutual Funds

 A mutual fund is managed by investment professionals and others services providers,

RISK ASSOCIATED WITH MUTUAL FUND INVESTMENT

Mutual Funds offer incredible flexibility in managing Investment risk.

Sometimes referred to as loss of purchasing power. Whenever inflation sprints

NET ASSET VALUE (NAV)

NAV is calculated as follows

Market value of Fund investment + receivables + accrued income- liabilities  accrued

Number of Units outstanding

VOLATILITY MEASUREMENT OF MUTUAL FUND

The R-squared of a fund advises investors if the beta of a mutual

This explanation of these four statistical measure provide with the

SYSTEMATIC INVESTMENT PLAN (SIP)

Concept of Systematic Investment Plan (SIP):

How will SIP help:

4 Risk-free from Timing:

1.2 INDUSTRY PROFILE

FIRST Phase (1964-87)-UTI all the way

SECOND Phase (1987-1993)-Enter Public Sector mutual funds

THIRD PHASE (1993-2003)-Private players enter the scene

FORTH Phase (sinceFebruary2003)-UTIs restructuring and beyond

MUTUAL FUND A GLOBALLY PROVEN INVESTMENT AVENUE

Origin and structure

The concept of mutual fund originated in 1890 with Robert Fleming by

3 Asset Management Company

 In recognition of the anomaly in the distribution structure, a body of financial planners

1.3 COMPANY PROFILE

SBI MUTUAL FUND BACK GROUND

1.4 PRODUCT PROFILE

The investments of these schemes will predominantly be in the stock

A STUDY ON SYSTEMATIC INVESTMENT PLAN AT

I hereby declare that the Project Report entitled A STUDY ON SYSTEMATIC

Mutual fund is a pool of money is invested in accordance with the common

Sometimes referred to as loss of purchasing power. Whenever inflation sprints

Market value of Fund investment + receivables + accrued income- liabilities accrued

FORTH Phase (sinceFebruary2003)-UTIs restructuring and beyond

SBI MUTUAL FUND BACK GROUND

MSFU Parma Fund

following Sectors Oil & Gas ,Metals, Materials&