Sbi mutual fund

1. A joint venture between SBI and Société Genéralé Asset Management
SBI MUTUAL FUND
WELCOMES
COLLEAGUES
FROM
SBI

2. A joint venture between SBI and Société Genéralé Asset Management
CROSS SELLING
BENEFITS
A tool to generate other income for the Bank.
Customer Retention
Additional Income for the Staff
The customer gets all Financial Needs under one roof.

3. A joint venture between SBI and Société Genéralé Asset Management
What is a Mutual Fund?What is a Mutual Fund?
A trust which pools the savings of
a number of investors who share a
common financial goal.
• Professional investment managers
invest these funds in a way that
helps investors to achieve their
goals.

4. A joint venture between SBI and Société Genéralé Asset Management
Your Savings
Professional
Fund Manager
AMC
Investment in
Securities -
Bonds / Equity
Returns - Growth
or Dividend
How does a Mutual Fund work ?

5. A joint venture between SBI and Société Genéralé Asset Management
Advantages of Investing through Mutual Funds
Choice of schemes to meet a variety
of investment objectives
Tax-Efficient Returns
LOW FEE CHARGED

6. A joint venture between SBI and Société Genéralé Asset Management
Bonds & Debentures: Fixed Income
Bank Deposits/Money-market:
short-term liquidity
Balanced: Growth + Current Income
Equity: Long term growth
DEBT
EQUITY
Risk
Return
Varied Range of Investment & Saving
Products

7. A joint venture between SBI and Société Genéralé Asset Management
Types of Products
•Underlying Asset classes – Equity, Debt &
Money Market instruments
•Five Categories of Funds
-Liquid Funds
-Debt Funds
-Balanced Funds
-Equity Funds
-Special Funds
•Investment Objective
–Defines the universe of asset classes where
the investments will be made

8. A joint venture between SBI and Société Genéralé Asset Management
8
NAV Calculations
•Net Assets = Assets - Liabilities
•Assets = Market value of Investments
+ Receivables + Accrued income
+ Other Assets
•Liabilities = Accrued expenses
+ Payables + Liabilities
•NAV of a Unit = Net Assets of the Scheme
Number of units outstanding

9. A joint venture between SBI and Société Genéralé Asset Management
Assume Investment made on the Face value @Rs 10/- ON 01.01.2007
GROWTH DIVIDEND
PAYOUT
DIVIDENT
REINVESTMENT
AMOUNT
INVESTED(Rs)
10000 10000 10000
UNITS ALLOTTED 1000 1000 1000
NAV ON 01.01.08 15 15 15
DIVIDEND@20%
ON 01.01.08
- Rs 2 /unit Rs 2 /unit
DIVIDEND
RECEIVED
- 2000 2000
EX-DIVIDEND NAV - 13 13
UNITS ALLOTTED
(DIV. REINV.)
- - 1153.85(1000+153.85)
VALUE OF
INVESTMENT(Rs)
15000 13000 15000

10. A joint venture between SBI and Société Genéralé Asset Management 10
Tax issues
related to
Mutual Funds

11. A joint venture between SBI and Société Genéralé Asset Management
EQUITY SCHEMES..Capital Gains
•Capital Gains Tax is payable as follows on sale of
Equity MF units.
•Short Term Capital Gains Tax - @ 15% this FY
(Less than 1 year )
•Long Term Capital Gains Tax - NIL
( 1 year or more )
•Tax Laws allow capital gain to be set off against capital
loss.
DIVIDEND IS TAX FREE

12. A joint venture between SBI and Société Genéralé Asset Management
Working out Tax liability
•Rebate under section 80 C
•Individuals can invest up to Rs.1.00 Lac in specified instruments and reduce
their tax liability by 10% to 30%.
•The Equity Linked Savings Scheme, 2005 has been notified vide S.O. No.
1563(E) dated 03.11.2005. The Central Board of Direct Taxes has clarified
that investments made on or after 1st April, 2005, in plans, which are in
accordance with ELSS 1992 or ELSS 1992 as amended in 1998 are also
eligible for tax benefit under section 80C of the Income-tax Act, 1961.
•Magnum Tax Gain Scheme 1993 has been approved by CBDT for this
purpose.

13. A joint venture between SBI and Société Genéralé Asset Management
ILLUSTRATION
At
the
Endof
year
Savingsat
the end
of each
yr
Cumulative Amount at the End of Each
year Assuming Rate of Return

-- -- 10% 12% 15% 18% 20% 25%
1 12000 12600 12720 12900 13080 13200 13500
2 24000 26460 26966 27735 28514 29040 30375
3 36000 41706 42922 44795 46727 48048 51469
4 48000 58477 60793 64415 68218 70858 77836
5 60000 76924 80808 86977 93577 98229 110795
10 120000 200812 223220 261918 307659 342655 448914
15 180000 400333 474198 613787 797426 950863 1480772
20 240000 721665 916507 1321522 1917894 2464282 4629753
25 300000 1239173 1696007 2745030 4481254 6230150 14239681
30 360000 2072625 3069752 5608212 10345600 15600837 43566853

14. A joint venture between SBI and Société Genéralé Asset Management
Investments ?
What does one look for………..
Safety of Capital
Returns
Liquidity
Tax Benefits
Due to changing market trend, only
Mutual Funds fulfill these objectives

15. A joint venture between SBI and Société Genéralé Asset Management
Evaluating Financial Products
PRODUCT SAFETY/
CONVINENCE
LIQUIDITYRETURNVOLATILITY
Equity Low High/low High-Mod.High
FI Bonds High Moderate Mod.-HighModerate
Debentures Moderate Low Mod.-LowModerate
Corp. FD Low Low ModerateLow
Bank Dep. High High Low-HighLow
PPF High Moderate ModerateLow
Life Ins. High Low Low-Mod Low
Gold High Moderate Mod.-LowModerate
Real Estate Moderate Low High-LowHigh
MF High High High Moderate

16. A joint venture between SBI and Société Genéralé Asset Management
Systematic Investment Planning
- Best Investment Practice

17. A joint venture between SBI and Société Genéralé Asset Management
•Encourages Regular and Disciplined Investments
•A Convenient way to invest regularly
•Long term perspective
•Rupee Cost Averaging Benefit to counter volatility
•Compounding Benefits
•No timing the market!!
•SIMPLE & CONVENIENT
•A larger target segment due to lower initial investment
Advantages of
SIP

18. A joint venture between SBI and Société Genéralé Asset Management
SIP Return as of 30
th
Nov 2010
SIP Return
Scheme One YearThree YearFive YearTen Year
Magnum Equity Fund 19.71% 24.31% 18.12% 25.77%
Magnum Global Fund 94 18.82% 28.57% 16.31% 30.97%
Magnum Multiplier Plus 93 21.82% 26.15% 18.83% 30.31%
Magnum Sector Umbrella - Contra 8.77% 20.19% 16.12% 34.89%
Magnum Tax Gain Scheme 93 14.73% 20.81% 14.93% 33.05%
BSE100 5.27% 13.82% 13.08% 21.74%

19. A joint venture between SBI and Société Genéralé Asset Management
What does one need for a SIP ?
Just these 4
•Bank account
•K Y C Compliant

(For Micro SIPs)
PAN / ID Proof ( DL/ Election ID Card/ Passport/ Bank Pass
Book
•Mutual fund scheme which offers SIP facility
•Rs 500/1000/2000….. per month

20. A joint venture between SBI and Société Genéralé Asset Management
SIP – Easy Pay Facility *
•Opt for the SIP EASYPAY Auto debit Facility
•Choose the Amount ( minimum Rs 500/- p.m)
•Choose one Day of the month ( 5th / 10
th
/15th /
20
th
/ 25
th
/ 30
th
)
•Make First Investment by Cheque drawn in favor of
the scheme. E.g SBIMF -Magnum TaxGain Scheme
And Relax…….. Every month the said amount will be
debited from your bank account and units will
allocated to you.
Register for Statement Of Account (SOA) by mail
*

21. A joint venture between SBI and Société Genéralé Asset Management
To Whom? Which scheme to sell?

22. A joint venture between SBI and Société Genéralé Asset Management
Who can invest in a Mutual Fund Scheme
•Residents
–Resident Individuals / HUF
–Indian companies
–Partnership Firms
–Indian Trusts / Charitable Institutions
–Insurance Companies
–Banks
–Financial Institutions
–NBFCs
–Provident Funds
–Mutual Funds

23. A joint venture between SBI and Société Genéralé Asset Management
23
Who can invest in a Mutual Fund Scheme
•Non Residents
–NRI’s & Persons of Indian Origin
–Overseas Corporate Bodies (OCBs)
•Foreign Entities
–FII’s registered with SEBI
•Foreign nationals can also invest in MF

24. A joint venture between SBI and Société Genéralé Asset Management
Investment Decision Influencers
•Age
•Risk appetite (ability to bear capital
losses)
•Returns frequency (regular/capital
appreciation)
•Time horizon of investment
•Liquidity
•Need to save tax

25. A joint venture between SBI and Société Genéralé Asset Management
Steps in selection of an Equity fund
•Fund age
Older funds with track record of
performance or new ones.
•Experience fund managers or new ones
•Costs of Investing
Funds expense ratios
•Understand the portfolio characteristics of
the scheme

26. A joint venture between SBI and Société Genéralé Asset Management
How to sell Mutual Funds Effectively
•Do not create over expectation.
•Suggest diversification.
•
•Encourage regular investment – SIP.
•Explain benefits of Rupee cost averaging.
•Build Relationships through Superior Service.
•Personalized after Sales service ensures your
clients comes back to you again resulting in
increase in business.

27. A joint venture between SBI and Société Genéralé Asset Management
SUGGESTED SCHEMES
•EQUITY SCHEMES
i) Magnum Equity Fund
ii) Magnum Global Fund
iii) Magnum Emerging Business Fund

•DEBT SCHEMES
i) SBI Gold Fund
ii) SBI Debt Fund Series (SDFS)
iii) SBI Dynamic Bond Fund

28. A joint venture between SBI and Société Genéralé Asset Management
SERVICE PROVIDER
•CAMS is the Service provider for all our
Schemes.
•The entire processing of all service
requests is done by Cams

29. A joint venture between SBI and Société Genéralé Asset Management
Risks in a Mutual Fund
Mutual Fund investments are not risk free
However, through Mutual Fund, Risk can
be minimized.

30. A joint venture between SBI and Société Genéralé Asset Management
Thank you