16-03-2012, 04:49 PM
State Bank of India
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ABOUT THE COMPANY-S.B.I
State Bank of India was born on 1st July,1955 based on the recommendations of All India Rural Credit Survey Committee(1954) headed by Shri A.D Gorwala, through an Act of Parliament. The main objective of SBI is “Extension of Banking facilities on a large scale, more particularly in rural and semi-urban areas, and for diverse other public purposes and to transfer to it the undertaking of the Imperial Bank of India and provide for other matters connected thereto or incidental thereto.”SBI is the oldest, the largest and the highest profit making bank in India. Its evolution is not only intimately interwoven with the economic development of modern India but also with our nation building process to an extent perhaps unparalleled in the world. Moving like colossuses on the Indian financial turf, it has become a symbol of national pride and economic development.
INTRODUCTION OF STATE BANK OF INDIA - MUTUAL FUND
SBI Mutual Fund is India’s 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 - India’s largest banking enterprise. The institution has grown immensely since its inception and today it is India's largest bank, patronized 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 Société Générale Asset Management, one of the world’s leading fund management companies that manages over US$ 500 Billion worldwide. At SBI Mutual Fund, resources are considerably devoted to gain, maintain and sustain profitable insights into market movements. The trust reposed on SBI-MF by over 5.8 million investors is a genuine tribute to its expertise in Fund Management. SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable track record in judicious investments and consistent wealth creation. Thus SBI-MF believes in
• Proven skills in wealth maximization
• Exploiting expertise, compounding growth
Investment Objective
SBI`s Magnum Contra Fund, belonging to the Magnum sector funds umbrella, is one such fund that has fairly stuck to its investment objective and succeeded in giving good returns to the investors. The main objective of the fund is to provide the investors maximum growth opportunity through equity investments in growth oriented sectors. Launched in July 1999, the SBI Contra Fund is an open ended diversified equity scheme that can invest in large, mid and small cap stocks.
Performance:
Being contrarian in nature to focus on out-of-favour stocks, the fund had a very low exposure to technology in 1999. So no great returns that year and in the next.But, it fell by just 5.52 per cent in 2001. The next year, it gave a return of 32.74 per cent (category average: 19.43 per cent). The year 2003 saw it dipping from the top-quartile position when it gave a return just above the category average. In 2004, it shot to fame as the second best-performing fund with a 64.49 per cent return (category average: 25.84 per cent). In 2005, it was the third best-performing fund with a 71 per cent return (category average: 46.70 per cent).