Analysis of portfolio management strategy of SBI mutual funds

Abstract

Mutual fund is a growing industry in India, with the average asset under management rising from Rs. 1236.33 bn in April 2006 to Rs 6753.77 bn in December 2010 (Source: Association of Mutual Funds in India). Given the high volatility in the returns from the Indian stock markets in recent times, it becomes imperative to carry out comparative analysis of the returns from the stocks and mutual funds, to ascertain whether the Mutual fund performance is superior to the stock market returns. Analysis can be made of the returns to understand the portfolio management strategy of the fund which can help in making an informed investment decision. In this study, we have carried out the analysis of the 4 mutual fund schemes offered by SBI.