STATE BANK OF INDIA MUTUAL FUND COMPANIES

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 20 years of rich experience in fund management, SBI MF brings forward its expertise in consistently delivering value to its investors. SBI MF draws its strength from Indias Largest Bank of India and Society General Asset Management, France.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 Indias largest bank, patronised by over 80% of the top corporate houses of the country.SBI Mutual Fund is a joint venture between the state Bank of India and Society General Asset.Management, one of the worlds leding fund management companies that manages over USS 500 Billion worldwide.In twenty years of operation, the fund has launched 38 schemes and successfully redeemed fifteen of them. In the process it has rewarded its investors handsomely with consistent returns. A total of over 5.8 million investors have reposed their faith in the welth generation expertise of the Mutual Fund. Schemes of the Mutual fund have consistently outperformed benchmark indices and have emerged as the preferred investment for millions of investors and HNIs.Today, the fund manages over Rs. 42,100 crores of assets and has a diverse profile of investors actively parking their investments across 38 active schemes, The fund serves this vast family if investors by reaching out to them through network of over 130 points of acceptance, 29 investor service centers, 59 investor service desks and 6 Investor Service points. SBI Mutual is the first bank-sponsored fund to launch an offshore fund - Resurgent India Opportunities Fund. Growth through innovation and stable investment policies is the SBI MF credo.2.4.1 TYPES OF MUTUAL FUND SCHEMES OF SBIThe 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 Euqity Funds, Sectoral Funds and Index Funds. Diversified Equity Funds invest in various stocks across different sectors while sectoral funds which are specialized Equity Funds restrict their investments only to shares of a paticular sector and hence, are riskier then Diversified Equity funds. Index Funds invest passively only in the stocks of a particu lar index and the performance of such funds move with the movements of the index.

(i)Magnum Equity FundThis actively managed fund offers growth through investment in a portfolio of select blue chip stocks. The main features of the scheme are:A diversified equity fund, focusing on aggressive growthMinimum application of Rs.1000Entry Load:-Investments below Rs. 5crores -2.25% Inv estments of Rs. 5 crores and above - NIL SIP/ STP - 2.25%Exit Lord- Investments below Rs. 5 crores < 6months- 1.00% 6 months and < 12 months -0.50% Investments of Rs 5 crores and above - NIL SIP / STP < 6 months from the date of investment of each instalment - 1.00%Ideal for investors who wish to benefit from the growth of the equity markets and are comfortable with the attendant volatilitySIP Minimum amount Rs. 500/ month -12 months Rs. 1000/ month - 6months Rs.1500/ quarter -12 monthsSTP Minimum amount Rs. 1000/ month - minimum period of 6 months Rs. 3000/ Quarter -minimum period of 6 months.(ii) Magnum Tax GainMagnum Tax Gain Scheme is an Equity Linked Savings Scheme (ELSS) from SBI Mutual fund which offers investors tax benefits on an investment up to Rs. 1 Lakhs under section 80c of Indian Income Tax Act 1961. The fund was launched in the year 1993 and is one of the top performers in the ELSS category.Scheme Highlights:Entry Lord - Investments below Rs. 5 crores -2.25%, investments of Rs. 5 crores and above NIL SIP/STP Entry Lord -2.25%Exit Lord: NIL SIP :Minimum amount Rs. 500/month 12 months Rs 1000/month - 6months, Rs. 1500/quarter -12 months . STP: Minimum amount Rs. 1000/ -month - 6months, Rs. 3000/ Quarter 6 months Asset Allocation-80-100% in Equity, partly convertible debentures and fully convertible debentures and bonds & 0-20% in Money market instruments.Minimum Application Amount - Rs. 500 for purchase & Multiples of Rs. 500 for additional purchase.Plans & Options - Dividend ooption with payout and reinvestment facility.

RETURNS OF MAGNUM TAXGAIN SCHEMEAs on 31 January,2006FUNDCATEGORYBENCHMARK(BSE 100)1-Years105.57%59.77%48.36%3-Years99.60%63.65%48.28%5-Years32.13%29.82%18.77%Return Since Launch 19.62%-13.55%SOURCE: Internet, scheme of SBI MFII. Magnum Index FundMagnum Index Fund invests only in the 50 stocks that constitute S&P CNX Nifty index in proportion to each stocks weight age in the index. Hence,, who the portfolio Manager is or what his style is does not really matter in such funds. Volatility of such schemes will be in synchronization with the index. This investment is ideal for : Corporate, Institution, Banks HNIs and Retail Investors desirous of investing in a basket of Nifty Index stocks for an investment as low as Rs. 5000/- with liquidity of Open-ended Mutual Fund Entry load: Investments below Rs. 50 Lakhs 1.25% Investments of Rs. Lakhs and above NIL SIP/STP 1.00% Exit Load: Nil SIP/STP - < 12 months from the date on investment of each instalment 1.00% SIP : Minimum amount Rs.500/month 12 months Rs. 1000/month 6months, Rs.1500/quarter 12months\ STP :Minimum amount Rs. 1000/-month 6 months, Rs. 3000/ - 6months Divided Option Available Magnum Sector Funds Umbrella Launched in August 1999 Minimum investment of Rs. 2000 per sector Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs.5 crores and above NIL SIP/STP 2.25% Exit Load: Investment below Rs.5 crores and above NIL SIP / STP-< 6 months from the date of investment of each instalment 1.00% SIP : Minimum amount Rs.500/month 12 months Rs.1000/month 6months, Rs.1500/quarter 12 months STP : Minimum amount Rs. 1000/month minimum period of 6 months Rs.3000/ Quarter minimum period of 6 monthsChoice of 5 high-growth sectors: I.T Fund FMCG Fund Pharma Fund Contra FundIII. Magnum Multiplier Plus Scheme A diversion equity fund, focusing on steady growth Open-ended from April 1998 Minimum application of Rs. 1000 Entry Load : Investments below Rs. 5 crores 2.25% investments of Rs. 5 crores and above NIL SIP/STP 2.25%

Exit Load: Investments below Rs. 5 crores < 6 months 1.00% 6 months and < 12 months 0.50% Investments of Rs. 5 crores and above NIL

SIP / STP-< 6 months from the date of investment of each installment 1.00%

SIP : Minimum amount Rs.500/month 12 months Rs.1000/month 6 months, Rs. 1500/quarter 12 months

STP : Minimum amount Rs. 1000/- month minimum period of 6 months Rs.3000/ Quarter minimum period of 6 months

Inter scheme switches to other schemes will not carry an entry load. However exit load will be applicable.IV. Magnum Global FundThe Magnum Global Fund Scheme 1994 commenced from 24 August 1994. This scheme was launched as a close-ended scheme rdeeming on 30th September 1999. The scheme was converted into an Open-Ended Fund from 1st October 1999. Main features of the scheme are: Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs. 5 crores and above NIL SIP/STP 2.25% Exit Load: Investments below Rs. 5 crores < 6 months 1.00% 6 months and < 12 months - .50% Investments of Rs. 5 crores and above NIL SIP /STP-< 6 months from the date of investment of each instalment 1.00% SIP : Minimum amount Rs.500/month 12 months 12 months Rs.1000/month 6months, Rs.1500/quarter 12 months. STP : Minimum amount Rs.1000/month minimum period of 6 months Rs.3000/ Quarter minimum period of 6 monthsInter scheme switches to other equity schemes will not carry an Entry Load. However exit load will beV. Magnum Midcap FundThe latest investment option from SBI Mutual Fund enables you to benefit from our expertise in the intricacies of Midcap stocks. So you can leave the hard part of choosing the right stock to grow with and concentrate on enjoying yours returns, now and in the long run: Open-ended growth scheme Entry Load: Investments below Rs. 5 crores 2.25% Investments of Rs. 5 crores and above NIL SIP/STP 2.25% Exit Load : Investments below Rs.5 crores < 6 months 1.00% 6 months and < 12 months 0.50% Investments of Rs.5 crores and above NIL SIP / STP-< 6 months from the date of investment of each instalment 1.00% SIP : Minimum amount Rs.500/month 12 months Rs.1000/month 6months, Rs.1500/quarter 12 months STP : Minimum amount Rs.1000/- month minimum period of 6 months Rs.3000/ Quarter minimum period of 6 monthsInter scheme switches to other equity schemes will not carry an Entry Load. However exit load will be applicable.VI. Magnum Comma FundCOMMA is an acronym for Commodities in Oil, Metals, Materials and Agriculture. The objective of the scheme would be to generate opportunities for growth along with possibility of consistent returns by investing predominantly in a portfolio of stocks of companies engaged in the commodity business within the following sectors Oil & Gas, Metals and Materials & Agriculture and in debt & money market instruments.Key Features An open-ended equity investing in stocks of commodity based companies Entry Load: Investments below Rs. 5 crores 2.25% Investments of Rs. 5 crores and above NIL SIP/STP 2.25% Exit Load: Investment below Rs.5 crores < 6 months 1.00% 6 months and < 12 months 0.50% Investments of Rs.5 crores instalment 1.00% SIP : Minimum amount Rs. 500/month 12 months Rs.1000/month 6 months, Rs. 1500/quarter 12 months STP : Minimum amount Rs.1000/month minimum period of 6 months Rs.3000/ Quarter minimum period of 6 monthsInter scheme switched o other equity schemes will not carry an Entry Load. However exit load will be applicable.

VII. Magnum MulticapScheme objective To provide investors with opportunities for long-term growth in capital along with the liquity of an open-ended scheme through an active management of investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum, debt and money market instruments.

Fund to invest In large, medium and small cap segements in equity instruments. The fund would invest a minimum of 50 per cent of its equity/equity related instruments in large cap stocks and the balance 50 percent would be divided between mid cap and small caps with a provision to invest at least 10 percent in mid cap stocks.Key Features Launch date -22nd August 2005 Scheme opended for continuous sale and repurchase. Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs.5 crores and above NIL SIP/STP 2.25% Exit load : Investments below Rs.5 crores < 6 months 1.00% 6 months and < 12 months 0.50% Investments of Rs.5 crores and above NIL SIP / STP-< 6 months from the date of investment of each installment 1.00% SIP : Minimum amount Rs.500/month 12 months Rs.1000/month 6months, Rs.1500/quarter 12 months STP : Minimum amount Rs.1000/- month minimum period of 6 months Rs.3000/ Quarter minimum period of 6 monthsInter scheme switches to other equity schemes will not carry an Entry Load. However exit load will be applicableVIII. Blue Chip Fund Lunch date 23rd December 2005 NFO open from 23rd December 2005 to 29th January 2006 Scheme reopens for continuous sale and repurchase from 17th February 2006 Minimum investment Rs. 5000 and in multiples of Rs. 1000 Divided and Growth options available, Reinvestment and payout facility available Dividend will be completely tax-free. Long term capital gains to be completely tax-free. Short term capital gains to be taxed at 10% (plus applicable surcharge and cess) Scheme objective: To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of equity stocks of companies whose market capitalization is atleast equal to or more than the least market capitalized stock of BSE 100 Index. Systematic Investment Plan available during the NFO. Asset allocation pattern Entry Load : Investments below Rs. 5 crores 2.25% Investments of Rs.5 crores and above NIL SIP/TIP 2.25% Exit Load: Investments below Rs. 5 crores < 6 months 1.00% 6 months and < 12 months 0.50% Investments of Rs.5 crores and above NIL SIP /STP -< 6 months from the date of investment of each instalment 1.00% SIP : Minimum amount Rs.500/month 12 months Rs.1000/month 6months, Rs. 1500/quarter 12 months STP : Minimum amount Rs.1000/ - month minimum period of 6 months Rs. 3000/ Quarter minimum period of 6 months.2.2 KOTAK MAHINDRA MUTUAL FUND LTD.Kotak Mahindra Mutual Fund (KMMF) has been established as a Trust under the Indian Trusts Acts, 1882. The trut established KMMF and the Deed of Amendment have been registered under the Registration Act, 1998 by the office of the Sub-Registrar of Assurances at Mumbai. KMMF has been registered with SEBI vide registration number MF/038/98/1 dated 23rd June 1998.The sponser company, Kotak Mahindra Finance Limited (KMFL), was converted into Kotak Mahindra Bank Limited (Kotak bank) in March 2003 DER BEINZG GRANTED A BANKING LICENSE BY THE reserve Bank of India. KMFL promoted by Mr. Uday S Kotak, Mr. S.A.A. Pinto and Kotak & Co., was incorporated on November 21, 1985, under the name Kotak Capital Management Finance Limited. In early 1986, the promoters were joined by Late Mr. Harish Mahindra and Mr. Anand G Mahindra and the Companys name was changed to Kotak Mahinda Finance Limited.Kotak & Co is a highly respected trading company of Mumbai, with international business. KMFL started with a capital base of Rs.30.88 lakhs. The sponsor and its subsidiaries/associates offed wide ranging financial services such as loans, lease and hire purchase, consumer finance, commercial vehicles and car finance, investment banking, stock banking, primary market distribution of equity and debt products and life insurance. The group has offices in over 50 Indian cities as also In Dubai, Mauritius, London and New York. Kotak Mahindra (UK) Ltd. An ultimate subsidiary of Kotak Bank, is the first company owned from India to be registered with the securities and futures authority in London. Kotak Bank and Goldman Sachs, the latter being one of he largest global investment banks. Kotak Mahindra Primus Limited and Fordredit Kotak Mahindra Limited are joint ventures between Kotak Bank and Ford Credit International, the global car-financing arm of Ford Motor Company, OM Kotak Mahindra Life Insurance.Company Limited is a joint venture Kotak Bank and Old Mutual Plc based in the UK and with large presence in the South African Insurance market. Some of the other subsidiaries of Kotak Bank are Kotak Mahindra Securities Limited, Kotak Mahindra International Limited, Kotak Mahindra Private-Equity Trustee Limited, Kotak Mahindra Investments Limited, Kotak Mahindra Inc. and Kotak Forbex Brokerage Limited.The Spomsor has been a consistently profitable and dividend paying company since inception. All group companies are professionally run companies, employing over 1800 professionals including CAs, MBAs and engineers.2:2.1 PROFIE OF THE STUDY UNITKotak Mahindra Asset Management Company Limited, a company registered under the Companies Act, 1956, has been appointed to act as the investment Manager of Kotak Mahindra Mutual Fund vide investment Management Agreement dated 20th May, 1996, as amended up to date. It is wholly owned subsidiary of the Sponsor, Kotak Mahindra Bank Limited.An approval has been granted to the Company by the Division of Funds, Investment Management Department of SEBI for undertaking Portfolio Management Service under the SEBI (Portfolio Manager) Regulations, 1993. However the company has not begun such activity.Scheme details about Kotak Mahindra Asset Management Company.