CONCEPT OF MUTUAL FUND A mutual fund is a professionally managed firm of

collective investment that pools money from many investors and invest in stock , bonds etc.

Mutual fund have a fund manager who invest the money on behalf of the investors by buying/selling stocks, bonds etc.

A mutual fund is a trust registered with the Securities And Exchange Board Of India (SEBI)

The mutual fund business was started by “Unit Trust

of India” (UTI).

The first scheme introduced in 1964, it is popularly

known as unit 64 or us 64.

The UTI was the only player in this business for two

decades.

SBI was allowed to setup a mutual fund in 1987.

In 1993 SEBI issued guidelines on mutual fund

(earlier MFs were governed by the Ministry of finance

and RBI)

History of mutual fund In India

Working of mutual fund

Reasons to invest in mutual fund Expert on your side:

when you invest in a mutual fund, you buy into the experience and skills of a fund manager and an army of professional analysts.

• Limited risk:mutual funds are diversification in action and hence do not rely on the performance of a single entity.

• Affordable investment option:since you invest with several other investors, you bear lesser investing costs than you would have to if you did it alone. So as compared to investing directly in capital market, mutual funds cost less.

Continued Convenience:

you can invest directly with a fund house, or through your bank or financial advisor or even over the internet.

• Investor protection:

a mutual fund in india is registered with SEBI, which also monitors the operations of the fund to protect investor’s interest.

Limitations of mutual funds Mutual funds are subject to market risk.

No guarantee of returns.

Diversification of portfolio does not maximizes returns

Selecting right financial securities is not easy.

RISK VS RETURN

Types of mutual fund By Structure

Open-Ended – anytime enter/exit Close-Ended Schemes – listed on exchange, redemption after period of

scheme is over.

By Investment Objective Equity (Growth) – only in Stocks – Long Term (3 years or more) Debt (Income) – only in Fixed Income Securities (3-10 months) Liquid/Money Market (including gilt) – Short-term Money Market

(Govt.) Balanced/Hybrid – Stocks + Fixed Income Securities (1-3 years)

Other Schemes Tax Saving Schemes Index schemes Sector specific schemes

Investment strategies Systematic Investment Plan (SIP)

Invest a fixed sum every month. (6 months to 10 years- through post-dated cheques or Direct Debit facilities)

Fewer units when the share prices are high, and more units when the share prices are low. Average cost price tends to fall below the average NAV.

Systematic Transfer Plan (STP) Invest in debt oriented fund and give instructions to transfer a fixed

sum, at a fixed interval, to an equity scheme of the same mutual fund.

Systematic Withdrawal Plan (SWP)to withdraw a fixed amount each month.

Sbi Company Profile 25 years of rich experience in fund management,SBI Funds

Management Pvt. Ltd. deliver value to investors.

SBIMF are a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies.

It has network of over 222 points of acceptance across India, deliver value and nurture the trust of 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, they are ably guided by the philosophy of ‘growth through innovation’ and stable investment policies. This dedication is what helps customers achieve their financial objectives.

Products Of Sbi Mutual Fund EQUITY SCHEMES

SBI MAGNUM EQUITY FUND

SBI MAGNUM GLOBAL FUND

SBI BLUECHIP FUND

SBI MAGNUM MULTICAP FUND

SBI MAGNUM MULTIPLIER PLUS 1993

SBI MAGNUM MID CAP FUND

DEBT SCHEMESSBI MAGNUM CHILDREN’S BENEFIT PLAN

SBI MAGNUM GILT FUND

MAGNUM INCOME FUND

MAGNUM INSTA CASH FUND

MAGNUM INCOME PLUS FUND

MAGNUM MONTHLY INCOME PLAN

SBI PREMIER LIQUID FUND

BALANCED SCHEMES MAGNUM BALANCED FUND-OPEN ENDED BALANCED

SCHEME

Conclusion Mutual fund offer investor the opportunity to earn

income through professional management.

Risk is diversified by portfolio diversification.

Proper liquidity of the investor fund.

Mutual fund are not liable to pay tax on the income they earn.

Convenient option for the investor.

Regulatory comfort in mutual fund because SEBI has mandated strict checks and balances in the structure of mutual fund and their activities.

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