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 87
No. of Schemes including options 302
Equity Schemes 72
Debt Schemes 178
Short Term Debt Schemes 24
Equity and Debt 6
Money 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 contracts
o 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 9,93,321.81
Quarterly 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.