Mutual Funds In India

SBI Mutual Fund is a fully owned subsidiary of the State Bank of India, India's premier and highly respected bank with largest banking operation in the country.

SBI Mutual Fund follows certian philosophy in their strategy while parking investors money in the money family to have a full control upon the risks concentrating for aheading growth at a reasonable price. It locates sustainable competitive advantage before investing. The combination of Top down and Bottom up approaches are followed. Top down for sector allocation and the latter for stock selection.

While determining the investment universe, SBI Mutual Fund employes a multi-stage filtering process. The first level look at liquidity, the second at management quality. The third level is for the competitive position and the last for the share price valuation.

In the debt sector it always aims at the "risk adjusted returns" based on the investors risk tolerance. The following four steps are worked upon while investing:

• Manage the schemes on a "Portfolio basis".
• Active management of interest rate risk.
• Credit risk management by following the conservative approach.
• Continuous monitoring.

Partnership firms, corporates and even trusts & societies, duly registered under the applicable laws, can invest in SBI Mutual Funds.