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Abstract
The financial system of a country is of immense use in its economic development. Adequate capital formation is indispensable to economic development and financial markets are of crucial importance for capital formation. In this process of economic development, mutual fiinds emerged as strong financial intermediaries and are playing a very important role in bringing stability to the system and efficiency to resource allocation. This study is helpful in tracing the performance of top mutual funds and to compare the mutual fund based on the risk bearing capacity and expected returns of the investors and will also carry out an analysis of the portfolio of the selected mutual fund.
Keywords: Economic development, performance, SBI mutual fund, India.
Introduction
Mutual Funds clearly have a significant role to play in financial development. Their modus operandi of aggregating pools of saving from a large number of retail investors and deploying these resources in a variety of financial markets, based on different risk-return preferences simultaneously enhance efficiency, stability and inclusion. With emerging markets (including India, China and Brazil) gaining recognition rapidly, international funds have been furiously earmarking a large portion of their allocation to developing countries.
In a present volatile market situation choosing a right avenue to invest savings is very complicated task and the investor should be alert while taking the investment decision. The mutual funds are also one of the choices among various alternatives of investment emerging as a major choice for small investors who expect more returns with calculated risk. The study is basically made to evaluate the performance of the SBI Mutual Funds selected schemes and its rivalries and also guides the investor in selecting the right fund. Only three most preferred Equity Growth schemes i.e. SBI Magnum equity Fund, SBI Magnum Tax Gain Fund and SBI Emerging Business Fund (Mid Cap Scheme) of SBIMF and similar competitive schemes are taken for analysis.
Mutual fiinds are the important instruments to invest the savings and the investor can expect maximum returns with diversified risk. Since there are multiple mutual funds operating in the competitive market situation with hundreds of schemes and different options, it is very necessary to know the performance of different mutual fund to choose right place to invest the money which yields...