SBI Mutual Funds

SBI Funds Management Ltd. is the investment manager of SBI Mutual Analysis. SBI Mutual Fund has been constituted as a trust, sponsored by State Bank of India. Today the Fund has an investor base of 2.8 million, spread over 23 schemes. With a large network of collecting branches and investor Service Centres, SBI Mutual Fund constantly endeavours to get closer to its growing family of investors. SBI is the largest public sector banks in India, with 8836 branches all over India. SBI is the leader in providing loans to trade and industry. It also provides related services, which generate significant fee-based income. It has also identified project finance and consumer banking as key areas. SBI Mutual Fund is a bank and SBI Mutual Fund is a result of joint venture between State Bank of India and Societe Generale Asset Management of France.

No. of Schemes 87No. of Schemes including options 302

Equity Schemes 72Debt Schemes 178

Short Term Debt Schemes 24Equity and Debt 6Money Market 0

Gilt Fund 16

The mission of SBI Mutual Funds is to establish Mutual Funds as a viable investment option to the masses in the country. Working towards it, they have developed innovative, need-specific products and educated the investors about the added benefits of investing in capital markets via Mutual Funds. They have also been actively managing our investor's assets not only through their investment expertise in domestic mutual funds, but also offshore funds and portfolio management advisory services for institutional investors.

This makes SBI Mutual Funds 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.

They have excelled by understanding the investor's requirements and terms of risk / return expectations, based on which they suggest customized asset portfolio recommendations. SBI Mutual funds also provides 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 their investors with opportunities for long-term growth in capital, through well-researched investments in a diversified basket of stocks of Indian Companies.

SWOT Analysis

Strengths:

SBI Mutual Funds created an identity of its own by proposing and practicing customer care, financial inclusion and governance of the highest standards.

In the industry out of 37 to 36 ENP's state bank of India mutual fund is on the 6th position.

State Bank of India Mutual Fund schemes are been managed by some other private banks (HDFC, ICICI, YES Bank, KOTAK).

SBI mutual funds are great funds to invest in. It is very stable fund that is sure to grow throughout the years.

The Indian Bank is not tied to the United States economy. This is a probably a large factor because the United States economy is so unsteady, but the SBI mutual funds still remain strong.

SBI also provides one of the strongest research departments among all other mutual funds, which also aides in the reliability of the mutual funds and helps keep it strong through economic trails and downfalls.

Weakness:

Most of the Mutual Fund that SBIMF Company offers is known as 'open-ended' mutual fund. (means one can buy or sell shares of the fund directly with the company), because of one of the limitations of open-end mutual fund, they are only priced once per day, at the close of business as a result one cannot sell a SBIMF until the close of business day.

The greatest limitation in a SBIMF which one can face is the skill of the investment manager.

The investment return is limited to the skill of the manager.

Opportunities:

Therefore, SBIMF is planning to open the ISB and IST's in model town for customer's convenience.

Country's largest lender SBI will invest in high quality stocks which have good trading volumes and less volatility

Threats

Threats are from the private companies which are leading in mutual funds and people believe more in investing the mutual funds of HDFC

PEST Analysis

Political Analysis

In India, SEBI Regulations regulate the structure of mutual fund Mutual funds in India are constituted in the form of a Public Trust The stability of the government and people faith into it acts as an important return factor. The impact of foreign investment:

o Forced renegotiation of contractso A requirement that a minimum percentage of supervisory positions be held by

locals.

Economic Analysis

India's population is young, with 54% under the age of 25and 80% under 45 and the percentage of working population is raising rapidly.

If we see the position of BSE Sensex as compared to other major indexes in the world then we find that BSE has been the best performer.

India is well placed in terms of costs and skill sets Inflation affects the Return-Inflation has always lowered the actual return from bank

savings WTO has laid down common rules to facilitate smooth trade among member countries

Socio-cultural Analysis

The most important factor shaping in today's global economy is the process of globalization.

The increasing share of India and other emerging market economies in world trade. Standard of living of population tends to improve.

Technological Analysis

Indian companies are moving in search of low-cost markets Technology is driving growth in production and competition is becoming more intense. The outburst in communication technology has led to greater integration of Indian

financial markets across the world. The outburst of technology has made it possible for the foreign companies to look for

Indian market and returns associated with it. All the legal framework and associated work has become easy to handle.

BCG Matrix

Relative market share. One of the dimensions used to evaluate business portfolio is relative market share. SBI Mutual Funds has a 7.04% market share, whereas the remaining 92.96% share is occupied by the other players in the industry. The total Assets under Management and the quarterly average figures are given below.

Total AUM 9,93,321.81Quarterly Average AUM of SBI Mutual Fund(As of 30 Jun 2014)

69,947.82

Thus SBI Mutual Funds is perceived to have a lower market share, in comparison with its competitors, which results in lower cash returns, which in turn indicates lower profits.

Market growth rate

The CAGR of the Indian mutual fund industry is around 3.2%.

Thus SBI Mutual Funds are said to be Dogs hold low market share compared to competitors and operate in a slowly growing market. But in some cases, dogs may be profitable for long period of time, they may provide synergies for other brands or SBUs or simple act as a defense to counter competitors moves. Therefore, it is always important to perform deeper analysis of each financial product to make sure they are not worth investing in or have to be divested.Strategic choices: Retrenchment, divestiture, liquidation.