Mutual Fund Industry India

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Summer Internship Program
From 4th May, 2011 – 4th July, 2011


Understanding Mutual Fund Industry
Comparative Analysis of Mutual Fund Schemes

Submitted In the partial fulfillment of the requirements for the award of the degree of



I am grateful to Mr. Rajat Chattopadhyay, Zonal Head Mumbai, SBI MF for giving me an opportunity to undertake project in SBI Mutual Fund, Mumbai.

I take this opportunity to express my profound gratitude and sincere regards to my guide Mr. Venkatesh R, Senior Manager Institutional Sales, for his guidance and monitoring throughout the project report. In spite of his busy schedule he had always found time to listen to my queries, help me with the problems I faced during the course of the project, and provide constant guidance and encouragement.

I thank Mr. Bidesh Biswas for his invaluable help has a huge role in the successful completion of my project. I also thank Ms. Swati Ghaisas, Mr. Aditya Gangal, Ms. Selvarajan Mudhaliar, Ms. Sheetal Singh, for extending their support at various stages of my project.

I extend my sincere thanks to Prof. Bharat Shah, Faculty ITM Business School Kharghar for his exemplary guidance helped me understand and take a practical approach towards my internship. His realistic and powerful words have been utmost important in the timely and successful completion of my internship.

I also thank all the other people working in SBI MF, Mumbai for their direct or indirect support and making this a great learning experience for me.

Executive Summary

A mutual fund is a professionally managed type of collective investment that pools money from many investors to buy stocks, bonds, short-term money market instruments, and/or other securities. The origin of mutual fund industry in India is with the introduction of the concept of mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987 when non-UTI players entered the industry. The size of mutual fund industry was above 7 lakh crore INR at the end of this fiscal year. There are 41 mutual funds in India offering more than 3500 schemes. SBI is the 2nd largest PSU MF and 6th largest MF with AUM of above 40000 crore and Reliance is the biggest private player in the industry with AUM of above 1 lakh crore. A recent report on Mutual Funds Investments in India published by research and analytics firm, Boston Analytics, suggests investors are holding back from putting their money in mutual funds due to their perceived high risk and a lack of information on how mutual funds work. My study gives an overview of structure of a mutual fund, its key constituents, various types of mutual fund schemes, role of a mutual fund, tax obligations of investors, role of regulators, risk factors that an investor should keep in mind before investing in a scheme. I also studied how these mutual fund schemes are compared. Various tools used to compare them and its analysis. I also performed stock analysis with main focus on investor’s sentiment about a stock by analyzing the stock market news.

About SBI Mutual Fund

With over 24 years of rich experience in fund management, SBI Funds Management Pvt. Ltd. brings forward its expertise by consistently delivering value to its investors. It has a strong and proud lineage that traces back to the State Bank of India (SBI) - India's largest bank. It is a Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management companies, with approximately Euro 688 billion of assets under management. It has a network of over 200 points of acceptance across India. To ensure excellence right from the first stage of product development to the post-investment stage, it is ably guided by its philosophy of ‘growth through innovation’ and stable investment policies. Today it is actively managing assets not only in...
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