SAI VIDYA INSTITUTE OF TECHNOLOGY RAJANKUNTE, BANGALORE-560 064

TOPIC- AN ANALYSIS OF MARKET POTENTIAL FOR MUTUAL FUNDS AMONG THE RETAIL INVESTORS Presented by NAME: NAVEENKUMAR.P USN : 1VA13MBA37 External Guide Internal Guide Mr. JAGADESH RAO K RAGHAVENDRA Chief Manager Asst. Professor SBI, Yelahanka New Town

Industry Profile SBI is an Indian multinational Public sector banking & financial Services company. It is a Government owned corporation with its head quarters in Mumbai, Maharashtra. As of December 2014 it had assets of US$388 billion & 17000 branches, including 190 foreign offices, making it largest banking & financial services Company in India by assets. SBI is one of the Big four banks of India along with Bank of Baroda, Punjab National Bank, Bank of India. They have a combined network of over 53,000 branches and 17,000 ATM’s

COMPANY PROFILE Industry: Banking, Financial Services Type: Public Chairman & Managing Director: PRADEEP CHOUDHURI First Outlet /Office: COLCUTTA Founded: 2 June 1806 Headquarter: Mumbai, Maharashtra

Competitors Information  Axis Bank ICICI Bank HDFC Bank Punjab National Bank Bank of Baroda Canara Bank Bank of India

SWOT ANALYSIS Strengths: Brand Name: SBI has a powerful brand name over the country and overseas SBI became the synonymous for banking in the rural areas. Market Leader: SBI is ranked at 380 in 2008 Fortune Global 500 list, and ranked 219 in 2008 Forbes Global 2000. With an asset base of $126 billion and its reach, it is a regional banking behemoth. SBI is public sector bank and government of India has 60% of share. This is competitive advantage over other bank in India. Market share: SBI has portfolio of products and services. It succeeded in the cross selling of its products and services. All the branches of SBI has core banking and it enables the customer to bank anywhere same as local bank Government Owned: Government owns 60% stake in SBI. This gives SBI an edge over private banks in terms of customer security.

weakness: SBI is fully computerized, but the lack of computer efficiency made the banking very low. Nonperforming assets in credit cards is high. Resistance from employee and trade unions against merger of associate bank.

Opportunity Pool in talent to replace the going top management to serve the next generation. Make better use of its CRM.   Expansion into rural areas. Threats Consolidation among private banks. New bank licenses by RBI. Foreign banks that have sophisticated products. Increasing non performing assets and Bad debts. Employees strikes.

Topic- An Analysis of market potential for Mutual funds among the retail investors

Definition A Mutual fund is a professionally –managed from of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money instruments, and/or other securities. ‘in a mutual fund, the fund manager, who is also known as the portfolio manager, traders the funds underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors.

What are Mutual Funds? Mutual funds are a type of investment that takes money from many investors and uses it to make investments based on a stated investment objective. Each shareholder in the mutual fund participates proportionally (based upon the number of shares owned) in the gain or loss of the fund.

objectives Growth of the mutual fund. Mutual fund interest on investment with respect to retailer Explore the recent development in the mutual fund in India. Observe the fund management process of mutual fund. To know the preference of investors and their needs regarding mutual funds investment. • To analyse factors that influence most while buying mutual funds.

Features Mobilizing small savings Investment Avenue Professional management Diversified investment Better liquidity Reduced risks Investment protection Switching facility Tax benefits Low transaction costS

Why do People Invest in Mutual Funds? Mutual funds offer investors an affordable way to diversify their investment portfolios. Mutual funds allow investors the opportunity to have a financial stake in many different types of investments. These investments include: stocks, bonds, money markets, real estate, commodities, etc… Individually, an investor may be able to own stock in a few companies, a few bonds, and have money in a money market account. Participation in a mutual fund, however, allows the investor to have much greater exposure to each of these asset classes.

Continued Most mutual funds are professionally managed by an investment expert known as a portfolio manager. This individual makes all of the buying and selling decisions for the fund. There are thousands of different mutual funds in the United States. This provides investors with many options to help them achieve their investment objectives.

Basic Mutual Fund Categories Mutual Funds can be divided into four basic categories based upon the funds investment objective. These categories are: Money Market Mutual Funds Stock Mutual Funds Index Funds Bond Mutual Funds Balanced Mutual Funds

Money Market Mutual Funds This is the most conservative type of mutual fund. The goal is to maintain the $1 value of its shares while providing income. Invests in high-quality, short-term securities such as certificates of deposit, U.S. Treasury Bills, and U.S. Treasury Notes. MMMF’s are an appropriate place for savings. These funds have typically offered higher interest rates than bank savings accounts. Money market mutual funds are not insured by the FDIC.

Stock Mutual Funds Type of fund that invests in stocks. These funds are also known as equity funds. There are many different types of stock mutual funds. Some of the most common include: Large-cap funds, mid-cap funds, small-cap funds, income funds, growth funds, value funds, blend funds, international funds, and sector funds.

Index Funds These are mutual funds whose holdings aim to track the performance of a specific stock market index. The most common index fund tracks the S&P 500. These index funds invest in the exact stocks (and in the same percentages) as those found in the S&P 500. Index funds also track bonds, real estate, and other types of assets. These funds are lower cost than other types of funds.

Bond Mutual Funds Type of mutual fund that invests in bonds. There are different types of bond mutual funds. Typically, bond mutual funds have the objective of providing stable income with minimal risk.

Balanced Mutual Funds These are also known as hybrid funds. These mutual funds invest in stocks, bonds, and money markets. These are very diversified mutual funds. The stock portion of the fund provides the potential for capital appreciation, while the bond and money market portion provide income.