sbi mutual funds

7/29/2019 sbi mutual funds

1/44

A REPORT ON

ANALYSIS OF CUSTOMERS AWARENESS, PERCEPTION & PREFERENCE OF MUTUAL FUNDS IN

COMPARISION TO OTHER FINANCIAL PRODUCTS.

BY:-

YESASWI CHINTADA

OF:-

NAME OF THE ORGANIZATION:-

SBI MUTUAL FUND PVT LTD


2/44

2 | P a g e

SUMMER INTERNSHIP PROJECT

ON:-

ANALYSIS OF CUSTOMERS AWARENESS, PERCEPTION & PREFERENCE OF MUTUAL FUNDS IN

COMPARISION TO OTHER FINANCIAL PRODUCTS.

SUBMITTED TO:

FACULTY GUIDE: - INDUSTRY GUIDE:-

PROF. GAGAN KATIYAR MR.JUNAID AHMAD

BY:-

YESASWI CHINTADA

PGDM (MARKETING)

ENROLL NO. 09DM138

BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

A REPORT SUBMITTED IN PARTIAL FULFILMENT OF

THE REQUIREMENTS OF

2 YEARS PGDM PROGRAM OF

BIRLA INSTITUTE OF MANAGEMENT TECHNOLOGY

GREATER NOIDA (NCR)


3/44

3 | P a g e

TABLE OF CONTENTS

S.NO TITLE PG.NO

1 ACKNOWLEDGEMENT 4

2 INTRODUCTION 5

Why Mutual Fund 5What is Mutual Fund 6Concept of mutual fund 8

Types of Mutual Fund 9

3 MUTUAL FUND IN INDIAN CONTEXT

Mutual Fund Industry in india 11

Mutual fund structure 12

Major mutual Fund companies in India 13

Association of Mutual Fund of India (AMFI) 17

4 Various channels of selling mutual funds 18

5 ABOUT SBI MUTUAL FUND

Company Profile 22

Funds & Schemes of SBIMF 23

6 RESEARCH METHODOLOGY 25

7 SPSS REPORT 26

8 PERCEPTION ANALYSIS 27

9 ANALYTICAL HIERARCHY PROCESS 30

10 CONCLUSIONS AND RECOMMENDATIONS 37

11 LIMITATIONS 38

12 BIBLIOGRAPHY 39

13 ANNEXURE( survey form) 40


4/44

4 | P a g e

ACKNOWLEDGEMENT

The Summer Training began on 7th

April 2010, the day I was inducted as a summer trainee at SBI

Mutual Fund Pvt. Ltd., Gurgaon. As an Amateur to the corporate environment with no prior work

experience, this training at SBI Mutual Fund has been a very insightful and learning but exciting

experience.

The satisfaction and euphoria that accompany the successful completion of this project would be

incomplete without the mention of the people who made it possible and whose constant guidance

and encouragement heads all efforts with success.

I extend my heart-felt gratitude to the industry guide Mr. Junaid Ahmad (Head, SBI MUTUAL FUNDS-

Gurgaon & NCR) who believed in my capabilities and gave me the opportunity to complete my

summers in an esteemed organization like SBI Mutual Fund.

I would like to thank all the Relationship Managers (RMs) of Gurgaon office of SBI Mutual Fund,

including Ms. Aarti Gadeock ,Mr. Sourabh chopra and Mr. Ashish Bhatnagar and for providing full

support in completing this project.

I would also like to thank Mr. Ashish Srivestava and Ms. Geeta, Operation Officers of SBI MUTUAL

FUNDS, Gurgaon whose help and assistance helped a lot in completion of the report.

I extend my gratitude to Prof. Gagan Katiyar, faculty guide who gave his valuable time to answer my

queries and for full support during the project which has contributed for the completion of the

project report on time.

It is a great pleasure to extend my heartfelt thanks to everybody who helped me through the

successful completion of this project.

YESASWI CHINTADA

09DM138

BIMTECH


5/44

5 | P a g e

INTRODUCTION

Why Mutual Funds?Life is demanding! Theres so much to indulge in and deal with. At work or at home. With

family, friends or self. Woven into these threads is the inescapable truth that money is a means to

many an end. A house in the suburbs, good education for the kids, a set of four wheels to zip

around, an early retirement... the ends might differ, but the means-at least one of them-to reach

them remain the same: money. Earned wisely, saved regularly, and invested smartly. More often

than not, its the second and third steps where control eludes us and even our best laid plans start

to break down. Statements like: I dont have time, I dont understand the share market, cannot

help you. Its your hard earn money that you have to invest, so you should know where you shouldand can invest and have a good return in your hand at the end of the day. Explore and understand

what you want from your investments, and leave the rest to money managers: mutual funds.

These investment vehicles dont demand that you have a deep understanding of financial matters;

they even dont demand oodles of your time.

Mutual funds are investment products that operate on the principle of strength in numbers.

They collect money from a large group of investors, pool it together, and invest it in varioussecurities, in line with their objective. They are alternative to investing directly. A moreconvenient alternative, yet no less rewarding. Take stocks for example. Treading into the marketby yourself would mean knowing, at the very least, how to analyze and track the companies, theways of the market, and the intermediaries who will help you buy and sell the shares. A mutualfund that invests in stocks relieves you all such hassles, while giving you the same investmentexposure. All in all, a handy investment option for individuals handicapped by a lack of investingacumen or time, or generally disinclined to take charge of their personal finances. Mutual fundsare not magic investment vehicles that do it all. We will have to come to terms with the fact thatthey assure neither returns nor the value of your original investment. We will have to accept thereality that even they, who are supposedly experts in investment matters, can go wrong. These are


6/44

6 | P a g e

inherent risks, but these can be managed. Mutual fund offer several features that make them apowerful and convenient wealth creation vehicle worthy of our consideration.

WHAT IS MUTUAL FUND

A mutual fund is a company (or a trust) that sells shares of its own stock and utilizes the proceedsto make other investments. These investments may include the stocks of publicly tradedcompanies, corporate or municipal bonds, real estate, or short-term money market instruments.By purchasing shares in a mutual fund, the investor obtains a number of benefits that wouldotherwise be unavailable.

ADVANTAGES

1. VARIETY- Mutual funds can be an excellent vehicle to carry out a well-conceivedinvestment plan. Once an investor has a disciplined, well thought out strategy, there aremany choices available in the mutual fund universe to execute the investment plan withreasonable costs.

2. DIVERSIFICATION- Mutual funds can provide a high degree of security of principal andincome through diversification of securities. Few individuals could afford to buy as manydifferent types of stocks as the typical mutual fund holds. This spreading of risk makes itunlikely that poor performance by any one security will result in financial disaster.

3. PROFESSIONAL INVESTMENT MANAGEMENT- The purchase of shares in a mutualfund allows an investor to hire top notch investment management expertise, thus freeingthe investor from the responsibility of managing the portfolio of securities on a day-to-day basis.

4. LIQUIDITY- Most mutual funds maintain a market in their own shares. Such funds arereferred to as open-end investment companies. This means that the mutual fundcompany has obligated itself to buy back its shares from investors. An investor canrequire the fund to redeem its shares at any time. This requirement provides the purchaserof fund shares with a high degree of liquidity.A small category of funds, known as closed-end funds, do not buy and sell their ownshares. Instead, their shares are traded on the open market like the shares of publicly


7/44

7 | P a g e

traded companies. These funds are listed on the organized stock exchanges or traded onthe over-the-counter market.

5. LOW COST- Several large discount brokerage firms have created fund supermarketswhere an investor can have a wide mix of funds, from hundreds of separate fund groups,

all in one brokerage account. This makes it easy for an investor to put together adiversified portfolio of funds from different fund families, with top-notch managementand low costs.

6. CONVENIENCE & FLEXIBILITY- Under the family of funds concept, a company willsponsor a number of funds with different investment objectives and underlying assets.The investor can decide to switch assets back and forth from one fund to another. Theadvantage is that the investor can quickly, conveniently (and without any additional salescharges) move assets into one or more funds that better meet his investment needs ordesires.

DISADVANTAGES OF MUTUAL FUND

1. HIGH LOAD- Purchasing shares from many mutual funds involves payment of a salescharge, commonly called a load. This charge covers the cost of marketing the fund

through brokerage firms and certain other fees. Sales charges can be as high as 8.5% ofthe original investment, but this is very unusual. Market forces have reduced the typicalfront end load down to an average of about 4.75% for bond funds and 5.75% for stockfunds. There are now many share classes, There are many no-load funds that markettheir products directly to the public by mail and through newspaper advertising. Thesefunds do not charge a sales fee.

2. REDUCED RETURNS- Annual management fees and administrative charges can reducethe overall return on the investment. Management fees can range from 0.5% to 3% ormore of the value of the investment. Administrative charges may be imposed in addition

to management fees and frequently cost from $5 to $25 annually per account. These smalladministrative charges are frequently waived for accounts that reach a minimum balance.These fees can eat up a significant portion of the return to an investor. For example, abond fund earning 5% on Treasury notes with a 2% expense ratio will only return 3% tothe investor. The expenses are eating up 40% of the returns.

3. NO PERSONAL INVOLVEMENT- While professional management relieves the investorof certain obligations and responsibilities, it also eliminates his personal involvement inthe management of the fund. The purchaser of a mutual fund cannot control the selectionof specific assets or the timing of purchases and sales. Unlike the investor who buys stockdirectly and who can select the time to sell and recognize a gain or loss, the mutual fundshareholder has no choice. He cannot control the amount of any capital gain distribution,

or when it must be reported. Capital gain distributions are paid annually and must bereported each year on the shareholders tax return.


8/44

8 | P a g e

CONCEPT OF MUTUAL FUND

A Mutual Fund is a trust that pools the savings of a number of investors who share a commonfinancial goal. The Money thus collected is then invested in Capital Market instruments such as

shares, debentures and other securities. The income earned through these investments and thecapital appreciation realized is shared by its unit holders in proportion to the number of unitsowned by them. Thus a Mutual Fund is the most suitable investment for the common man as itoffers opportunities to invest in a divesiffied, professionally managed basket of securities at arelatively low cost.The Mutual Funds normally come out with a number of schemes with different investmentobjectives, which are launched from time to time. A mutual fund is required to be registered withSecurities and Exchange Board of India (SEBI) which regulates securities market before it cancollects funds from the public.Unit trust of India was the first Mutual Fund set up in India in the year 1963.in the year1992 Securities and Exchange Board of India (SEBI) act was passed. As far as mutual fundsconcerned SEBI formulates policies and regulates the mutual funds to protect the interest of theinvestors. All Mutual Funds whether promoted by public sector or private sector entitiesincluding those promoted by foreign entities are governed by the same set of regulation.A Mutual Fund is set up in the form of a trust, which has sponsor, trustee, asset ManagementCompany and custodian. The trustee of the mutual fund holds its property for the benefit of theunit holders. Asset Management Company approved by SEBI manages the funds by makinginvestments in various types of securities.The performance of particular schemes of a mutual fund is denoted by net asset value (NAV). Netasset value is the market value of the securities held by the schems, since market value ofsecurities change every day, NAV of schemes also varies on day-to-day basis.

Working of Mutual Fund


9/44

9 | P a g e

DIFFERENT TYPES OF MUTUAL FUNDS:

Schemes according to Maturity Period :

A mutual fund scheme can be classified into open ended scheme or close ended scheme

depending on its maturity period.

Openended Fund / Scheme

An open ended fund or scheme is one that is available for subscription and purchase on acontinuous basis. These schemes do not have a fixed maturity period. Investors can convenientlybuy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.The key feature of open-end schemes is liquidity.

Closeended Fund / Scheme

A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is openfor subscription only during a specified period at the time of launch of the scheme. Investors canincest in the scheme at the time of the initial public issue and thereafter they can buy or sell theunits of the scheme on the stock exchanges where the units are listed. In order to provide an exitroute to the investors, some close-ended funds give an option of selling back the units to themutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate thatat least one of the two exit routes is provided to the investor i.e. either purchase facility orthrough listing on stock exchanges. These mutual funds schemes disclose NAV generally onweekly basis.

Schemes according to Investment Objectives:

A scheme can also be classified as growth scheme, income scheme, balanced scheme consideringits investment objective. Such schemes may be open-ended or close-ended schemes as describedearlier. Such schemes may be classified mainly as follows:

Growth / Equity Oriented Scheme

The aim of growth fund is to provide capital appreciation over the medium of long-term.Such schemes normally invest in a major part of their corpus in equities. Such funds havecomparatively high risks. These schemes provide different options to the investors like dividendoption, capital appreciation, etc. and the investors may choose an option depending on theirpreferences. The investors must indicate the option in the application form. The mutual funds alsoallow the investors to change the options at a later date. Growth schemes are good for investors

having a long-term outlook seeking appreciation over a period of time.

Income / Debt Oriented Scheme

The aim of income funds is to provide regular and steady income to investors. Such schemesgenerally invest in fixed income securities such as bonds, corporate debentures, Governmentsecurities 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 ofcapital appreciation are also limited in such funds. The NAVs of such funds are affected becauseof change in interest rates in the country. If the interest rates fall, NAVs of such funds are likely


10/44

10 | P a g e

to increase in the short run and vice versa. However, long term investors may not bother aboutthese fluctuations.

Balanced Fund

The aim of balanced funds is to provide both growth and regular income as such schemes investboth 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. These funds are also affected because of fluctuations in shareprices in the stock markets. However, NAVs of such funds are likely to be less volatile comparedto pure equity funds.

Money Market or Liquid Fund

These funds are also income funds and their aim is to provide easy liquidity, preservation ofcapital and moderate income. These schemes invest exclusively in safer short term instrumentssuch as treasury bills, certificates of deposit, commercial paper and inter-bank call money,government securities, etc. Returns on these schemes fluctuate much less compared to otherfunds. These funds are appropriate for corporate and individual investors as a means to park theirsurplus funds for short periods.

Gilt Fund

These funds invest exclusively in government securities. Government securities have no defaultrisk. NAVs of these schemes also fluctuate due to change in interest rates and other economicfactors as in the case with income or debt oriented schemes.

Index Funds

Index funds replicate the portfolio of a particular index such as the BSE Sensitive index, S &PNSE 50 index (Nifty), etc. These schemes invest in the securities in the same weightagecomprising of an index. NAVs of such schemes would rise or fall in accordance with the rise orfall in the index, though not exactly by the same percentage due to some factors known astracking error in technical terms. Necessary disclosures in this regard are made in the offer

document of the mutual fund scheme.There are also exchange traded index funds launched by the mutual funds which are traded on thestock exchanges.


11/44

11 | P a g e

MUTUAL FUND INDUSTRY IN INDIA

The origin of Mutual Fund industry in India is with the introduction of the concept ofmutual 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. In the past decade, Indian Mutual Fundindustry had seen dramatic improvements, both quality wise as well as quantity wise. Before, theMonopoly of the Market had seen an ending phase; the Assets Under Management (AUM) wasRs. 67bn. The private sector entry to the fund family raised the AUM to Rs. 470 bn in March1993 and till April 2004; it reached the height of 1,540 bn. Putting the AUM of the Indian MutualFunds Industry into comparison, the total of it is less than the deposits of SBI alone, constituteless than 11% of the total deposits held by the Indian banking industry. The main reason of itspoor growth is that the Mutual Fund industry in India is new in the country. Large sections ofIndian investors are yet to be intellectuated with the concept. Hence, it is the prime responsibilityof all mutual fund companies, to market the product correctly abreast of selling. The Mutual Fundindustry can be broadly put into four phases according to the development of the sector. Each

phase is briefly described as under.

First Phase - 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set upby the Reserve Bank of India and functioned under the Regulatory and administrative control ofthe Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the IndustrialDevelopment Bank of India (IDBI) took over the regulatory and administrative control in place ofRBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI hadRs.6, 700 crores of assets under management.

Second Phase - 1987-1993 (Entry of Public Sector Funds)

Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by CanbankMutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in1990. The end of 1993 marked Rs.47, 004 as assets under management.

Third Phase - 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual

fund industry, giving the Indian investors a wider choice of fund families. Also, 1993 was theyear in which the first Mutual Fund Regulations came into being, under which all mutual funds,except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged withFranklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised MutualFund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)Regulations 1996. The number of mutual fund houses went on increasing, with many foreignmutual funds setting up funds in India and also the industry has witnessed several mergers andacquisitions. As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management wasway ahead of other mutual funds.


12/44

12 | P a g e

Fourth Phase - since February 2003

This phase brought bitter experience for UTI. It was bifurcated into two separate entities.One is the Specified Undertaking of the Unit Trust of India with AUM of Rs.29, 835 crores (ason January 2003). The Specified Undertaking of Unit Trust of India, functioning under anadministrator and under the rules framed by Government of India and does not come under thepurview of the Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored bySBI, PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual FundRegulations. With the bifurcation of the erstwhile UTI which had in March 2000 more thanRs.76,000 crores of AUM and with the setting up of a UTI Mutual Fund, conforming to the SEBIMutual Fund Regulations, and with recent mergers taking place among different private sectorfunds, the mutual fund industry has entered its current phase of consolidation and growth. As atthe end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under421 schemes.

Mutual Fund StructureA mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset ManagementCompany (AMC) and custodian. The trust is established by a sponsor or more than one sponsor

who is like promoter of a company. The trustees of the mutual fund hold its property for thebenefit of the unit holders. Asset Management Company (AMC) approved by SEBI manages thefunds by making investments in various types of securities. Custodian, who is registered withSEBI, holds the securities of various schemes of the fund in its custody. The trustees are vestedwith the general power of superintendence and direction over AMC. They monitor theperformance and compliance of SEBI Regulations by the mutual fund.


13/44

13 | P a g e

BRIEF DETAILS OF MAJOR MUTUAL FUND COMPANIES IN INDIA

ABN AMRO Mutual Fund

ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee (India) Pvt.Ltd. as the Trustee Company. The AMC, ABN AMROAsset Management(India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the custodian of ABNAMRO Mutual Fund.

Birla Sun Life Mutual Fund

Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life Financial.Sun Life Financial is a golbal organisation evolved in 1871 and is being represented in Canada,the US, the Philippines, Japan, Indonesia and Bermuda apart from India. Birla Sun Life MutualFund follows a conservative long-term approach to investment. Recently it crossed AUM of Rs.

10,000 crores.

Bank of Baroda Mutual Fund (BOB Mutual Fund)

Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under thesponsorship of Bank of Baroda. BOB Asset Management Company Limited is the AMC of BOBMutual Fund and was incorporated on November 5, 1992. Deutsche Bank AG is the custodian.

HDFC Mutual Fund

HDFC Mutual Fund was setup on June 30, 2000 with two sponsorers nemely HousingDevelopment Finance Corporation Limited and Standard Life Investments Limited.

HSBC Mutual Fund

HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital Markets(India) Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund acts as the TrusteeCompany of HSBC Mutual Fund.

ING Vysya Mutual Fund

ING Vysya Mutual Fund was setup on February 11, 1999 with the same named TrusteeCompany. It is a joint venture of Vysya and ING. The AMC, ING Investment Management(India) Pvt. Ltd. was incorporated on April 6, 1998.

Prudential ICICI Mutual Fund

The mutual fund of ICICI is a joint venture with Prudential Plc. of America, one of the largest lifeinsurance companies in the US of A. Prudential ICICI Mutual Fund was setup on 13th of October,1993 with two sponsorers, Prudential Plc. and ICICI Ltd. The Trustee Company formed isPrudential ICICI Trust Ltd. and the AMC is Prudential ICICI Asset Management CompanyLimited incorporated on 22nd of June, 1993.


14/44

14 | P a g e

Sahara Mutual Fund

Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial Corporation Ltd.

as the sponsor. Sahara Asset Management Company Private Limited incorporated on August 31,1995 works as the AMC of Sahara Mutual Fund. The paid-up capital of the AMC stands at Rs25.8 crore.

State Bank of India Mutual Fund

State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch offshorefund, the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today it is the largestBank sponsored Mutual Fund in India. They have already launched 35 Schemes out of which 15have already yielded handsome returns to investors. State Bank of India Mutual Fund has morethan Rs. 5,500 Crores as AUM. Now it has an investor base of over 8 Lakhs spread over 18schemes.

Tata Mutual Fund

Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsorers for TataMutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The investment manageris Tata Asset Management Limited and its Tata Trustee Company Pvt. Limited. Tata AssetManagement Limited's is one of the fastest in the country with more than Rs. 7,703 crores (as onApril 30, 2005) of AUM.

Kotak Mahindra Mutual Fund

Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It ispresently having more than 1, 99,818 investors in its various schemes. KMAMC started itsoperations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering to investorswith varying risk - return profiles. It was the first company to launch dedicated gilt schemeinvesting only in government securities.

Unit Trust of India Mutual Fund

UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages the UTIMutual Fund with the support of UTI Trustee Company Privete Limited. UTI Asset ManagementCompany presently manages a corpus of over Rs.20000 Crore. The sponsorers of UTI Mutual

Fund are Bank of Baroda (BOB), Punjab National Bank (PNB), State Bank of India (SBI), andLife Insurance Corporation of India (LIC). The schemes of UTI Mutual Fund are Liquid Funds,Income Funds, Asset Management Funds, Index Funds, Equity Funds and Balance Funds.

Reliance Mutual Fund

Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. Thesponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is theTrustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which was changedon March 11, 2004. Reliance Mutual Fund was formed for launching of various schemes under


15/44

15 | P a g e

which units are issued to the Public with a view to contribute to the capital market and to provideinvestors the opportunities to make investments in diversified securities.

Standard Chartered Mutual Fund

Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by StandardChartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. StandardChartered Asset Management Company Pvt. Ltd. is the AMC which was incorporated with SEBIon December 20, 1999.

Franklin Templeton India Mutual Fund

The group, Frnaklin Templeton Investments is a California (USA) based company with a globalAUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial services groups inthe world. Investors can buy or sell the Mutual Fund through their financial advisor or throughmail or through their website. They have Open end Diversified Equity schemes, Open end SectorEquity schemes, Open end Hybrid schemes, Open end Tax Saving schemes, Open end Incomeand Liquid schemes, Closed end Income schemes and Open end Fund of Funds schemes to offer.

Morgan Stanley Mutual Fund India

Morgan Stanley is a worldwide financial services company and its leading in the market insecurities, investmenty management and credit services. Morgan Stanley InvestmentManagement (MISM) was established in the year 1975. It provides customized asset managementservices and products to governments, corporations, pension funds and non-profit organisations. Itsservices are also extended to high net worth individuals and retail investors. In India it is known

as Morgan Stanley Investment Management Private Limited (MSIM India) and its AMC isMorgan Stanley Mutual Fund (MSMF). This is the first close end diversified equity schemeserving the needs of Indian retail investors focussing on a long-term capital appreciation.

Escorts Mutual Fund

Escorts Mutual Fund was setup on April 15, 1996 with Excorts Finance Limited as its sponsor.The Trustee Company is Escorts Investment Trust Limited. Its AMC was incorporated onDecember 1, 1995 with the name Escorts Asset Management Limited.

Alliance Capital Mutual Fund

Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance CapitalManagement Corp. of Delaware (USA) as sponsorer. The Trustee is ACAM Trust Company Pvt.Ltd. and AMC, the Alliance Capital Asset Management India (Pvt) Ltd. with the corporate officein Mumbai.

Benchmark Mutual Fund

Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt. Ltd. asthe sponsorer and Benchmark Trustee Company Pvt. Ltd. as the Trustee Company. Incorporated


16/44

16 | P a g e

on October 16, 2000 and headquartered in Mumbai, Benchmark Asset Management CompanyPvt. Ltd. is the AMC.

Canbank Mutual Fund

Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as thesponsor. Canbank Investment Management Services Ltd. incorporated on March 2, 1993 is theAMC. The Corporate Office of the AMC is in Mumbai.Chola Mutual

Fund Chola Mutual Fund under the sponsorship of Cholamandalam Investment & FinanceCompany Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the TrusteeCompany and AMC is Cholamandalam AMC Limited.

LIC Mutual Fund

Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It contributed Rs. 2Crores towards the corpus of the Fund. LIC Mutual Fund was constituted as a Trust in accordancewith the provisions of the Indian Trust Act, 1882. . The Company started its business on 29thApril 1994. The Trustees of LIC Mutual Fund have appointed Jeevan Bima Sahayog AssetManagement Company Ltd as the Investment Managers for LIC Mutual Fund.

GIC Mutual Fund

GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a Government of

India undertaking and the four Public Sector General Insurance Companies, viz. NationalInsurance Co. Ltd (NIC), The New India Assurance Co. Ltd. (NIA), The Oriental Insurance Co.Ltd (OIC) and United India Insurance Co. Ltd. (UII) and is constituted as a Trust in accordancewith the provisions of the Indian Trusts Act, 1882.


17/44

17 | P a g e

Association of Mutual Funds in India (AMFI)

AMFI is an apex body of all Asset Management Companies (AMC) which has been registeredwith SEBI. Till date all the AMCs are that have launched mutual fund schemes are its members.It functions under the supervision and guidelines of its Board of Directors.

Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to aprofessional and healthy market with ethical lines enhancing and maintaining standards. Itfollows the principle of both protecting and promoting the interests of mutual funds as well astheir unit holders.

The objectives of Association of Mutual Funds in India

The Association of Mutual Funds of India works with 30 registered AMCs of the country. It hascertain defined objectives which juxtaposes the guidelines of its Board of Directors. Theobjectives are as follows:

This mutual fund association of India maintains high professional and ethical standards in

all areas of operation of the industry. It also recommends and promotes the top class business practices and code of conductwhich is followed by members and related people engaged in the activities of mutual fundand asset management. The agencies who are by any means connected or involved in thefield of capital markets and financial services also involved in this code of conduct of theassociation.

AMFI interacts with SEBI and works according to SEBIs guidelines in the mutual fundindustry.

Association of Mutual Fund of India does represent the Government of India, the Reserve

Bank of India and other related bodies on matters relating to the Mutual Fund Industry. It develops a team of well qualified and trained Agent distributors. It implements a

programme of training and certification for all intermediaries and other engaged in themutual fund industry.

AMFI undertakes all India awareness programme for investors in order to promote proper

understanding of the concept and working of mutual funds. At last but not the least association of mutual fund of India also disseminate informations

on Mutual Fund Industry and undertakes studies and research either directly or inassociation with other bodies.


18/44

18 | P a g e

CHANNELS OF SELLING MUTUAL FUNDS

Mutual funds are emerging as an important financial intermediary for the investing public inIndia. Conceptually and operationally they are different. The investors need to understand the

working of a mutual fund and the increasingly diverse and complex investment options brought

to them by a large number of mutual funds. The key channel in bringing the mutual funds to a

large number of investors all over the country is the network of INTERMEDIARIES /DISTRIBUTO-

RS. In this industry we have five different channels through which mutual fund are sold:

Mutual Fund Company National Distributors (NDs) & Intermediaries

Banks

Individual Financial Advisors (IFAs)

Internet

Each one has its own customer base. Their way of dealing with them is totally different from

other. Every one attracts in their own way. How they attract we will study. There are many

industries here. The urgency to keep increasing in size has led mutual funds to use marketing

hooks to draw investors. As we rely only on channel partners, our relation with them really is

going to play a vital role. How different companies lure the partners, well study that. As to start

with we will first study about the intermediaries in brief by describing who they are and how

they help a direct investor.

Mutual Fund Office:

Anyone can walk into a mutual funds office, and buy/sell units of its schemes. Its a simpleprocess, and there are employees of the fund house on hand to guide you through. If you arebuying units, you will have to fill up an application form and hand over a cheque equivalent toyour investment. The fund house will give you an acknowledgement of your investment in itsscheme(s) and subject to your cheque being cleared, send you an account statement within threeto seven days. Since a fund house market only its schemes and not those of its competitors,buying directly means knowing which fund house we want to invest in. If we are selling units, therelevant document is the redemption form, which sometimes forms part of your account

statement and can be torn off it, or can be had from the fund houses office. The fund house mails

the cheque within three days. The problem with transacting through fund house is that they have avery thin presence. Most fund houses have just an office or two in the big cities; moreover, sincesuch offices are located in the central business district, for most investors, this means travelling a

fair distance. Its worse in smaller centres-only a few fund houses have a scattered presence. Butas the industry grows and gains greater investor acceptance. Mutual funds are bound to expandbeyond cities.

Intermediaries:

Distributors such as agents, banks and stockbrokers are present in much greater numbers, whichmakes them the preferred option among investors. While dealing with the intermediaries, make


19/44

19 | P a g e

sure they have the AMFI (Association of Mutual Fund in India) certification-a SEBIprecondition; since September 2003, for selling mutual funds, intended t ensure that onlyqualified distributors dispense mutual fund advice. AMFI issues photo identity cards to registeredintermediaries, which is proof of their having acquired the certification.

National Distributors

The big agents are one-stop sellers of financial products. Agents score over mutual funds onconvenience, choice and quality of service. They operate from multiple locations-for example,national distributors like Bajaj Capital has more outlets than most mutual funds-and are supportedby an army of registered agents, some of whom are willing to come to our doorstop and sellschemes to you. Further, while a mutual fund offer its schemes, a big agent has the biggest stockamong all mutual fund sellers, selling virtually all schemes of virtually every fund house, as wellas other investment products. For us, this means more choice. If we know the scheme we want to

invest in, go to an agent, fill up the schemes form and give in a cheque. Even if we dont know

which scheme we want to invest in, a good agent will understand our need and help you pick ascheme. The agent should understand our reasons for investing in a mutual fund and based on thatoffer us appropriate options, and let us make a choice. An agent is supposed to be impartial andnot show a preference towards a particular fund house. The very nature of the relationshipbetween an intermediary and fund houses opens up the possibility of bias. Fund houses payintermediaries a commission linked to the business they bring in. If fund house X pays a highercommission than fund house Y, an intermediary might push scheme X, as it stands to earn more.How do we know that we are being misguided or not? The entry load charged by a scheme canoffer us some clues. The entry load represents the upfront costs an investor pays to invest in a

scheme, and the agents commission tends to flow out of it. The higher the entry load, chances

are, the higher the agents commission. If the agent is pushing the higher load scheme, perhaps he

is more interested in maximizing his commission than our returns. Hence always know the entryload being charged by a scheme. Till mid 2002, intermediaries passed on a part of theircommission to investors, as an incentive to invest. The amount of cash paid depended largely onmuch they got from a fund house. Obviously the more they got form the fund house, the morethey passed on to investors. This often created an unhealthy situation, where cash incentives, andnot investment-worthiness, determined which scheme, an agent recommended. In June 2002, tostop such abuse, SEBI made it illegal for intermediaries to give money and gifts to investors.Although intermediaries cant lure you with money now (legally speaking that is), theircommission-based earnings structure means a distributor could still be a partial to a fund house.Which is why, listen to what an intermediary to say but also do the homework, and use your

judgement to make an informed decision.


20/44

20 | P a g e

Banks

A number of banks, especially the private and foreign ones, are into marketing the mutualfund schemes. Many of them market not only their own schemes, but also those of theirrivals as a point of purchase; banks are a good option because of their fantastic reach-

banks can be founded in every neighborhood. This wide reach has enabled banks toemerge as a major distributor. In 1999, barely 10 percent of fresh mutual fund sales weremade through banks; during 2003, various estimates put the share of banks in mutual fundsales at between 30 percent and 50 percent. In terms of scope of service, banks are anotch below agents. Whatever your profile or investment amount might be, an agent willoffer you personalized service-he will listen to your investment needs, offer youinformation on various schemes as asked by you, and suggest investment options.However, typically a bank will not give you this option or attention, unless you are a bigmoney client and subscribe to its wealth management services. What banks will do,unconditionally, is help you through the investment formalities like filling up a form and

offering basic information. But things are changing and banks are also givingpersonalized service to its retail investors also.

Individual Financial Advisors

Big brokers combine the attributes of agents (one-stop shop, personalized service) andbanks (a team of analyst who crack the mutual fund industry). This service, thoughusually comes at a cost, and is reserved for their clients. Small brokers, on the other hand,welcome retail investors, but most of them market schemes of select fund houses only.These are independent professionals trained to advice you on all personal finance matters.They all sell financial products, as agents currently do. Unlike agents, though, CFPs

might charge you for their services.

The Internet

At present, around 3 percent of mutual fund transactions are done online. This figure isbound to increase, with better Net connectivity are also expected to tie up with morebanks, which will bring more investors into the loop.The other move that will provide afillip to online transactions to be supplemented by physical documentation. At present,some fund houses enable buying-and in some instances, selling on three platforms:

1. Own websites-- Most of the mutual fund houses let you buy and sell the units of theirschemes through their websites. All you need is a Net banking account with any of the

banks the fund houses have tied up with. You log on to the funds site, choose yourscheme and investment amount. A link on the website takes you to the website of thedesignated bank, where you make your payment.Money is transferred from your Net banking account to the mutual fund and units areallotted to you instantaneously. The transaction is also documented in the physical form-the fund houses send you the application form to sign, and send back. Once you havedone an online transaction with a fund house, you can open an online account with it.


21/44

21 | P a g e

This will enable you to sell your holdings, switch between the schemes and purchaseadditional units-at the click of a mouse.2. Financial Portals-- You can also buy units of several mutual funds through financialportals as myiris.com, timesofmoney.com and indiainfoline.com among others. The

process and requirements are similar to that of for buying through the funds site.However, most portals enable only purchase.

3. Online trading portals-- Share trading portals like ICICIDirect (icicidirect.com) andSharekhan (sharekhan.com) too offer a fair number of mutual fund schemes on theirplatforms. Registered user can buy or sell their units on offer, just like a stock-at no extracost.


22/44

22 | P a g e

COMPANY PROFILE

SBI MUTUAL FUND

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 grownimmensely since its inception and today it is India's largest bank, patronized by over 80% of thetop corporate houses of the country.

SBI Mutual Fund is a joint venture between the State Bank of India and Socit Gnrale AssetManagement, one of the worlds leading fund management companies that manages over US$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 consistently high returns.

A total of over 57 lakh investors have reposed their faith in the wealth generation expertise of theMutual Fund.

Schemes of the Mutual fund have consistently outperformed benchmark indices and haveemerged as the preferred investment for millions of investors and HNIs.

Today, the fund manages over INR 30,300 Crore through mutual funds, PMS & Offshorebusiness and has a diverse profile of investors actively parking their investments across 36 activeschemes.

The fund serves this vast family of investors by reaching out to them through network of over 130points of acceptance, 28 investor service centers, 46 investor service desks and 56 districtorganizers.

SBI Mutual is the first bank-sponsored fund to launch an offshore fund Resurgent IndiaOpportunities Fund.

Growth through innovation and stable investment policies is the SBI MF credo.

KEY PERSONNEL

Mr. Achal Gupta (MD & CEO, SBI Mutual Fund)

Mr. Srinivas Jain (Chief Marketing Officer, SBIMF)

Mr. Navneet Munot (Chief Investment officer, SBIMF)


23/44

23 | P a g e

SBIMF MAJOR SCHEMES UNDER EQUITY AND DEBT SCHEMES

Equity Schemes

Magnum COMMA Fund

Magnum Equity Fund

Magnum Global Fund

Magnum Index Fund

Magnum Mid Cap Fund

Magnum Multi cap Fund

Magnum Multiplier Plus

Magnum Sector Funds Umbrella

MSFU - FMCG Fund

MSFU - Emerging Businesses Fund

MSFU - IT Fund

MSFU - Pharma Fund

MSFU - Contra Fund

Magnum TaxGain Scheme 1993

SBI Arbitrage Opportunities Fund

SBI Blue chip Fund

SBI ONE India Fund

Debt Schemes

Magnum Childrens Benefit Plan

Magnum Gilt Fund

Magnum Gilt Fund (Long Term)

Magnum Gilt Fund (Short Term)

Magnum Income Fund

Magnum Income Plus Fund


24/44

24 | P a g e

Magnum Income Plus Fund (Saving Plan)

Magnum Income Plus Fund (Investment

Plan)

Magnum Insta Cash Fund

Magnum Fund -Liquid Floater Plan

Magnum Institutional Income Fund

Magnum Monthly Income Plan

Magnum Monthly Income Plan Floater

Magnum NRI Investment Fund

SBI Debt Fund Series

SBI Premier Liquid Fund


25/44

25 | P a g e

Research Methodology

Every project work is based on certain methodology which is a way to systematically solve theproblem or attain its objectives. It is a very important guideline and lead to completion of any projectwork through observation, data collection and data analysis.

According to Clifford Woody, Research Methodology comprises of defining and redefiningproblems, collecting, organizing, and evaluating data, making deductions and researching toconclusions.

Accordingly the methodology used in the project is as follows:

Defining the objective of the study

Framing the questionnaire keeping objective in mind (considering the objectives)

Feedback from the respondents

Analysis of feedback

Conclusion, findings and suggestions

Statistical Tools used

The main statistical tool used for the collection and analysis of the data in this project are

Questionnaire Scatter Charts (Using Excel)

SPSS

AHP


26/44

26 | P a g e

Spss report:


27/44

27 | P a g e

From the above report we can see the perception of various financial instruments in the customerspoint of view. The options of stock market and fixed deposit are very far which shows that theyare not competing with each other.

The three financial products mutual funds , ulips and insurance are at equal distances to eachoother because they are a bit similar in their nature of investments. Ulips is a combination of bothinsurance and mutual fund and hence they are similar but not completely equal.

Stock market and mutual fund are a bit closer to each other as they invest in the shares of variouscompanies. Hence customers perceive them to be a bit similar.

PERCEPTION ANALYSIS:

regular income vs high growth and returns:

stock markets are perceived to be giving high returns and regular income while fixeddeposit is low on both the factors. Insurance is perceived to have very low growth in terms ofinvestments. Ulips and mutual funds are perceived as same.

fixed deposit

Insurance

Mutual

Funds

Stock

markets

Ulips

0

2

4

6

8

0 2 4 6 8

highgrowthandreturns

regular income

regular income vs high growth and returns

fixed deposit

insurance

mutual fundsstock markets

ulips

0

1

2

3

4

5

67

0 2 4 6 8

low

riskandsafety

regular income

regular income vs low risk and safety


28/44

28 | P a g e

regular income vs low risk and safety:

stock markets give high regular income but the safety of the investment is very low.fixeddeposits are perceived as very safe but have very low income. Hence those people who wantshigh returns can invest in stock markets but should be willing to take the risk. Mutual funds areperceived to give regular income and at the same time the risk involved is less.

regular income vs financial freedom:

stock markets are perceived to have high income and financial freedom . it is followed bymutual funds which are almost similar to ulips.

fixed depositinsurance

mutual funds

stock marketsulips

0

2

4

6

8

0 2 4 6 8

financialfreedom

regular income

regular income vs financial freedom

fixed deposit

insurance

mutual funds

stock markets

ulips

0

1

23

4

5

6

7

0 2 4 6 8

low

risk

andsafety

high growth and returns

high growth and returns vs low risk and safety


29/44

29 | P a g e

high growth and returns vs low risk and safety :

mutual funds are perceived to have more risk compared to ulips insurance, and fixeddeposit while they are less riskier than stock markets. The growth and returns in mutual funds arealso high.

high growth and returns vs financial freedom:

mutual funds have good growth and returns after stock markets while ulips are perceivedto have higher financial freedom because they invest in both mutual funds and insurance.

low risk and safety vs financial freedom :

stock markets are perceived to be having lowest safety but high freedom of investmentwhich is followed by mutual funds. Ulips and insurance are perceived to have higher safety tomutual funds.

fixed depositinsurance

mutual funds

stock marketsulips

0

1

2

3

4

5

6

7

0 2 4 6 8

financialfreedom

high growth and returns

high growth and returns vs financial freedom

fixed depositinsurancemutual funds

stock marketsulips

0

2

4

6

8

0 1 2 3 4 5 6 7

financialfreedom

low risk and safety

low risk and safety vs financial freedom


30/44

30 | P a g e

Analytical Hierarchy Process

Analytic Hierarchy Process (AHP) is one of Multi Criteria decision making method that was

originally developed by Prof. Thomas L. Saaty, (born 1926 in Mosul, Iraq) is an American

mathematician who is a Distinguished University Professor at the University of Pittsburgh, where heteaches in the Joseph M. Katz Graduate School of Business. He is the inventor, architect, and primary

theoretician of the Analytic Hierarchy Process, a decision-making framework used for large-scale,

multiparty, multi-criteria decision analysis, and of the Analytic Network Process, its generalization to

decisions with dependence and feedback. Dr. Saaty has made contributions in the fields of operations

research (parametric linear programming, epidemics and the spread of biological agents, queuing

theory, and behavioral mathematics as it relates to operations), arms control and disarmament, and

urban design. He has written more than 30 books and 300 papers on mathematics, operations research,

and decision making. Their subjects include graph theory and its applications, nonlinear mathematics,

analytical planning, and game theory and conflict resolution.

In short, it is a method to derive ratio scales from paired comparisons. The input can be obtained from

actual measurement such as price, weight etc., or from subjective opinion such as satisfaction feelings

and preference. AHP allow some small inconsistency in judgment because human is not always

consistent. The ratio scales are derived from the principal Eigen vectors and the consistency index is

derived from the principal Eigen value.

Analytical Hierarchy Process provides a proven, effective means to deal with complex decision

making and can assist with identifying and weighting selection criteria, analyzing the data collected

for the criteria and expediting the decision-making process. It is a structured technique for dealing

with complex decisions. Rather than prescribing a "correct" decision, the AHP helps the decision

makers find the one that best suits their needs and their understanding of the problem. AHP helpscapture both subjective and objective evaluation measures, providing a useful mechanism for

checking the consistency of the evaluation measures and alternatives suggested by the team thus

reducing bias in decision making. Combined with meeting automation, organizations can minimize

common pitfalls of team decision making process, such as lack of focus, planning, participation or

ownership, which ultimately are costly distractions that can prevent teams from making the right

choice. Based on mathematics and psychology, it has been extensively studied and refined since then.

The AHP provides a comprehensive and rational framework for structuring a decision problem, for

representing and quantifying its elements, for relating those elements to overall goals, and for

evaluating alternative solutions. It is used around the world in a wide variety of decision situations, in

fields such as government, business, industry, healthcare, and education. Several firms supplycomputer software to assist in using the process. Though using the Analytic Hierarchy Process

requires no specialized academic training, it is considered an important subject in many institutions of

higher learning, including schools of engineering and graduate schools of business. It is a particularly

important subject in the quality field, and is taught in many specialized courses including Six Sigma,

Lean Six Sigma, and QFD.


31/44

31 | P a g e

Decision situations applicable for AHP include:

Choice - The selection of one alternative from a given set of alternatives, usually where there

are multiple decision criteria involved.

Ranking - Putting a set of alternatives in order from most to least desirable

Prioritization - Determining the relative merit of members of a set of alternatives, as opposed

to selecting a single one or merely ranking them

Resource allocation - Apportioning resources among a set of alternatives

Benchmarking - Comparing the processes in one's own organization with those of other best-

of-breed organizations

Quality management - Dealing with the multidimensional aspects of quality and quality

improvement

Sample response:

The various financial instruments under consideration are denoted as follows:

BANK FIXED DEPOSIT - FD

INSURANCE - INS

MUTUAL FUND - MF

STOCK MARKET - SM

ULIPS - UL

The various criterion used is denoted as follows:

regular income - RI

high growth and returns - HG

low risk and safety of investment - LR

financial freedom - FF

matrix

A

response 6 8 4 7

RI HG LR FF

6 RI 1.0000 0.7500 1.5000 0.8571

8 HG 1.3333 1.0000 2.0000 1.1429

4 LR 0.6667 0.5000 1.0000 0.5714

7 FF 1.166667 0.875 1.75 1.0000

sum 4.1667 3.1250 6.2500 3.5714


32/44

32 | P a g e

NORMAL matrix RI HG LR FF WA of A

RI 0.24 0.24 0.24 0.24 0.24HG 0.32 0.32 0.32 0.32 0.32

LR 0.16 0.16 0.16 0.16 0.16

FF 0.28 0.28 0.28 0.28 0.28

RI

matrix

Response 8 9 6 5 7

FD INS MF SM UL

8 FD 1.0000 0.8889 1.3333 1.6000 1.1429

9 INS 1.1250 1.0000 1.5000 1.8000 1.2857

6 MF 0.7500 0.6667 1.0000 1.2000 0.85715 SM 0.6250 0.5556 0.8333 1.0000 0.7143

7 UL 0.8750 0.7778 1.1667 1.4000 1.0000

SUM 4.3750 3.8889 5.8333 7.0000 5.0000

NORMAL of RI matrix

FD INS MF SM UL

WA of

RI

FD 0.2286 0.2286 0.2286 0.2286 0.2286 0.2286

INS 0.2571 0.2571 0.2571 0.2571 0.2571 0.2571

MF 0.1714 0.1714 0.1714 0.1714 0.1714 0.1714

SM 0.1429 0.1429 0.1429 0.1429 0.1429 0.1429

UL 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000

1.1429

1.2857

0.8571

0.7143

1.0000

n max 5.0000


33/44

33 | P a g e

HG matrix

Response 5 6 8 9 7

FD INS MF SM UL

5 FD 1.0000 0.8333 0.6250 0.5556 0.7143

6 INS 1.2000 1.0000 0.7500 0.6667 0.8571

8 MF 1.6000 1.3333 1.0000 0.8889 1.1429

9 SM 1.8000 1.5000 1.1250 1.0000 1.2857

7 UL 1.4000 1.1667 0.8750 0.7778 1.0000

SUM 7.0000 5.8333 4.3750 3.8889 5.0000

NORMAL of HG matrix

FD INS MF SM UL

WA of

HG

FD 0.1429 0.1429 0.1429 0.1429 0.1429 0.1429

INS 0.1714 0.1714 0.1714 0.1714 0.1714 0.1714

MF 0.2286 0.2286 0.2286 0.2286 0.2286 0.2286

SM 0.2571 0.2571 0.2571 0.2571 0.2571 0.2571

UL 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000

0.7143

0.8571

1.1429

1.2857

1.0000

n max 5.0000

CI 0

RI 1.188

LR

matrix

Response 9 8 6 5 7

FD INS MF SM UL

9 FD 1.0000 1.1250 1.5000 1.8000 1.2857

8 INS 0.8889 1.0000 1.3333 1.6000 1.1429


34/44

34 | P a g e

6 MF 0.6667 0.7500 1.0000 1.2000 0.8571

5 SM 0.5556 0.6250 0.8333 1.0000 0.7143

7 UL 0.7778 0.8750 1.1667 1.4000 1.0000

SUM 3.8889 4.3750 5.8333 7.0000 5.0000

NORMAL of LR matrix

FD INS MF SM UL

WA of

LRFD 0.2571 0.2571 0.2571 0.2571 0.2571 0.2571

INS 0.2286 0.2286 0.2286 0.2286 0.2286 0.2286

MF 0.1714 0.1714 0.1714 0.1714 0.1714 0.1714

SM 0.1429 0.1429 0.1429 0.1429 0.1429 0.1429

UL 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000

1.2857

1.1429

0.85710.7143

1.0000

n max 5.0000

CI 0

RI 1.188

CR 0 (CR


35/44

35 | P a g e

6 INS 1.2000 1.0000 0.7500 0.6667 0.8571

8 MF 1.6000 1.3333 1.0000 0.8889 1.1429

9 SM 1.8000 1.5000 1.1250 1.0000 1.2857

7 UL 1.4000 1.1667 0.8750 0.7778 1.0000

SUM 7.0000 5.8333 4.3750 3.8889 5.0000

NORMAL of FF matrix

FD INS MF SM UL

WA of

FF

FD 0.1429 0.1429 0.1429 0.1429 0.1429 0.1429

INS 0.1714 0.1714 0.1714 0.1714 0.1714 0.1714

MF 0.2286 0.2286 0.2286 0.2286 0.2286 0.2286

SM 0.2571 0.2571 0.2571 0.2571 0.2571 0.2571

UL 0.2000 0.2000 0.2000 0.2000 0.2000 0.2000

0.71430.8571

1.1429

1.2857

1.0000

n max 5.0000

CI 0

RI 1.188

CR 0 (CR


36/44

36 | P a g e

CR = CI / RI If CR

sbi mutual funds

Documents