AN EMPIRICAL STUDY ON BRAND ANATOMY OF SBI SELECTED EQUITY MUTUAL FUNDS IN INDIA

 

Dr. S. Ceciliya Jothi Muthu ¹, Dr. K. Alamelu ²

 

¹ Assistant Professor, Department of BBA, Loyola College, Chennai, India

² Assistant Professor, Department of Commerce, Stella Maris College, Chennai, India

 

1. INTRODUCTION

The mutual fund sector in India has experienced significant growth, becoming a vital component of the nation's financial landscape. Among the key players, SBI Mutual Fund stands out for its successful market entry, leveraging its robust brand reputation. High-net-worth individuals and a vast number of retail investors have consistently favored SBI Mutual Fund due to its ability to outperform benchmark indices. 

Understanding the brand architecture of SBI's equity mutual funds is essential, as it encompasses the attributes, beliefs, and perceptions that investors associate with the brand. This empirical study aims to dissect these elements to shed light on how SBI's brand influences investor behavior and decision-making. Analyzing investor perceptions, brand positioning, and performance metrics is crucial for comprehending the brand anatomy of SBI's selected equity mutual funds. 

 

1.1. Investor Perceptions and Preferences 

Research has underscored the significant impact of SBI's brand reputation on investor choices. A study examining investor perceptions of SBI Mutual Fund identified critical factors such as brand reputation, fund performance, and customer service as essential in shaping investor attitudes and overall satisfaction. 

 

1.2. Brand Positioning and Market

SBI Mutual Fund has effectively utilized its partnership with the State Bank of India to foster investor confidence. The fund offers a wide array of investment options, featuring 44 equity funds, 22 debt schemes, and 11 hybrid schemes, designed to meet the diverse needs of investors.

 

1.3. Performance Metrics and Investor Behavior 

An analysis of performance reveals that SBI's equity funds have consistently provided competitive returns. For example, the SBI Long Term Equity Fund Direct Plan Growth has achieved annualized returns of around 23.2% over the last three and five years.

Market trends, particularly the shift towards large-cap stocks during volatile periods, significantly affect investor behavior and fund inflows. In January 2025, there was a notable increase in inflows into large-cap stocks, rising by 52.3% to 30.63 billion rupees, indicating a preference for stability among investors during market fluctuations.

 

2. Review of Literature 

A study by Bharathi (2025) focused on open-end mutual fund schemes, analyzing a sample of 51 schemes selected through convenient sampling. The net asset values (NAVs) were examined over a one-year period from October 1, 2013, to September 30, 2014. Out of the 51 funds, 18 schemes outperformed the market return, while the remaining 33 funds yielded lower returns. The report titled Rajeswaran (2025), highlights these findings.

William F. Sharpe (1966) proposed a method for evaluating portfolio performance, being one of the first to apply the Capital Asset Pricing Model (CAPM) to mutual fund assessment. He posited that the expected return of a fund is linearly related to its risk. Sharpe's research indicated that funds lagged behind the Dow Jones index by 40 basis points, with better-performing funds typically exhibiting lower expense ratios. His analysis of 34 open-end funds from 1954 to 1963 in the United States concluded that superior performance correlated with lower expense ratios rather than fund size, demonstrating consistency in risk measures among the sample schemes.

Gouri Shankar Lall (2019) conducted a study titled "Performance Evaluation of Equity-based Mutual Funds in India," aimed at assessing the earnings of growth-oriented mutual fund schemes, evaluating selected mutual funds, and analyzing the return trends of these funds. The research utilized daily data on Net Asset Value (NAV), risk-free rates of return, and the Market Index (SENSEX) sourced from Thomson Reuters, covering the period from April 2011 to March 2016. To analyze the data, Treynor’s Index and Sharpe’s Index were employed. The findings indicated that the Sundaram Global Advantage Scheme exhibited a higher Sharpe ratio compared to the other selected schemes, suggesting superior investment management skills. Additionally, the Kotak Global Emerging Market Opportunities Offshore Growth Fund demonstrated lower volatility relative to the other schemes.

Chakrabarti (2020) assessed equity mutual funds in India through a quadratic optimization of an asset class factor model proposed by William Sharpe, focusing on the relative performance of the funds against their style benchmarks. The results revealed that, on average, the mutual funds produced positive monthly returns during the study period from January 2012 to June 2017. However, the ELSS funds underperformed compared to the Growth funds and the overall fund category in terms of returns.

Carlos (2022) examined the appropriateness of using either a factor-based or a characteristic-based model, both recognized as benchmarks in portfolio performance measurement, employing linear models, asset pricing models, and Fama and French factors. The study concluded that when return information was utilized and a linear model was applied to adjust returns based on a set of exogenous variables, the right side of the equation reflected the actual performance achieved and the passive benchmark that mirrored the style or risk of the evaluated portfolio.

 

3. Objectives of the Study 

·        To evaluate the performance of selected SBI equity mutual funds in terms of return and risk, thereby assessing the brand autonomy of SBI Mutual Fund. 

·        To analyze the performance metrics of the chosen equity mutual funds utilizing the Sharpe and Treynor ratios. 

 

4. Methodology 

This study aims to examine and assess the performance of eight selected SBI equity mutual funds. The analysis covers the period from February 2024 to January 2025 and relies on secondary data sourced from various platforms, including websites, journals, and magazines. A range of statistical and financial tools will be employed to evaluate the performance of these mutual fund schemes, specifically utilizing the Sharpe and Treynor measures, along with ANOVA. 

 

4.1. Hypothesis 

·        Ho: There is no significant difference in the performance of the selected mutual fund schemes when assessed using the Sharpe ratio during the study period. 

·        H1: There is no significant difference in the performance of the selected mutual fund schemes when assessed using the Treynor ratio during the study period.

 

4.2. ANALYSIS AND INTERPRETATION

The Table 1 presents the Return, Standard Deviation, Sharpe Ratio, and Treynor Index for the top eight equity schemes for the fiscal year 2023-24. Equity schemes are typically designed for investors willing to take on higher risks. Analyzing the data, it is evident that the SBI Contra Fund stands out among all equity funds, achieving the highest Sharpe Ratio of 0.99. In contrast, the SBI Consumption Opportunities Fund excels in terms of the Treynor Index, recording a value of 13.56. Conversely, the SBI Technology Opportunities Fund is the least effective in this group, exhibiting a negative Treynor Index of -3.18.

Table 1

Table 1 SBI Selected Equity Mutual Funds – 2023-24
S. No	Scheme	*Return%	SD	Sharpre Index	Treynor Ratio
1	SBI Contra fund	13	0.9	0.99	10.42
2	SBI Multicap fund	11	0.89	0.77	-2.94
3	SBI Magnum Tax gain 1993	14	0.97	0.64	8.81
4	SBI Small cap fund	13	0.88	0.13	9.83
5	SBI Focused equity fund	15	0.81	0.44	6.98
6	SBI Consumption opportunities fund	13	0.97	0.54	13.56
7	SBI Long term equity fund	15	0.73	0.91	15.04
8	SBI Technology opportunities fund	14	0.77	0.94	-3.18
Source: www.amfiindia.com (*Returns on an average of yield basis on NAV)

 

Table 2

Table 2 SBI Selected Equity Mutual Funds – 2024-25
S. No	Scheme	*Return %	SD	Sharpre Index	Treynor Ratio
1	SBI Contra fund	13	0.9	0.99	10.42
2	SBI Multicap fund	12	0.89	0.77	-2.94
3	SBI Magnum Tax gain 1993	15	0.97	0.64	8.81
4	SBI Small cap fund	16	0.88	0.13	9.83
5	SBI Focused equity fund	17	0.81	0.44	6.98
6	SBI Consumption opportunities fund	13	0.97	0.54	13.56
7	SBI Long term equity fund	11	0.73	0.91	15.04
8	SBI Technology opportunities fund	12	0.77	0.94	-3.18
Source: www.amfiindia.com (*Returns on an average of yield basis on NAV)

 

The performance metrics, including Return, Standard Deviation, Sharpe Ratio, and Treynor Index for the top eight equity schemes for the fiscal year 2024-25, are presented in Table 1 Equity schemes are typically designed for investors willing to take on higher risks. Analyzing the data, it is evident that the SBI Contra Fund stands out among all equity funds, achieving the highest Sharpe Ratio of 0.99. In contrast, the SBI Consumption Opportunities Fund excels in terms of the Treynor Index, recording a value of 13.56. Conversely, the SBI Technology Opportunities Fund is the least effective in this group, exhibiting a negative Treynor Index of -3.18.

Table 3

Table 3 ANOVA – Sharpe Index
Table 3 ANOVA1
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	1158.711	4	168.179	14.12	.000b
	Residual	1783.219	47	9.93
1 SPSS Calculation

 

It can be concluded that the samples were taken from a population with varying variances. As a result, the performance of the scheme is not uniform and exhibits differences in relation to the additional risk undertaken. Based on the information presented in Table 2, the researchers determine that the critical value is lower than the calculated value, leading to the rejection of the null hypothesis.

Table 3

Table 4 ANOVA – Treynor Index
Table 4 ANOVA2
Model		Sum of Squares	df	Mean Square	F	Sig.
1	Regression	2091.019	4	876.24	10.291	.000b
	Residual	899.884	47	17.02
2 SPSS Calculation

 

It has been determined that the samples were taken from populations with varying variances. Consequently, the macroeconomic impact of each scheme differs. Therefore, the performance of each scheme is not uniform and exhibits variations based on the additional risks involved. Based on the data presented in Table 3, the researcher concludes that the critical value is lower than the calculated value, leading to the rejection of the null hypothesis.

 

5. Conclusion 

The available literature indicates that the brand identity of SBI Mutual Fund is influenced by a robust reputation, strategic positioning in the market, and a dedication to providing a wide range of investment options. Although performance indicators are largely positive, it is crucial to consistently adapt to evolving market trends and investor preferences to maintain growth and foster investor confidence.

 

CONFLICT OF INTERESTS

None. 

 

ACKNOWLEDGMENTS

None.

 

REFERENCES

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Groww. (2025). SBI Mutual Fund - Latest MF Schemes, NAV, Performance & Returns.

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Lakshya, K., & Deepa, S. (2019, January). International Journal For Research In Engineering Application & Management. A Study on Investors' Perception Towards State Bank of India Mutual Funds, 4(10).  

Rajeswaran, B. (2024, October 10). Reuters. India's Equity Mutual Funds Garner Inflows for 43 Months in A Row; SIP cOntribution Hits Record High.

Rajeswaran, B. (2025, February 12). Reuters. India's Mutual Fund Investors Pivot To Safety of Large-Cap Stocks Amid Market Slide. https://www.reuters.com

Rao, M., Shukla. P., & Shah, S. (2022, February). International Journal of Research Publication and Reviews. A Study on Performance Analysis and Evaluation of SBI Mutual Fund in India, 3(2). 

Tickertape. (2025, February). Best SBI Mutual Funds - List of Top SBI MF Schemes (2025).  

https://dx.doi.org/10.29121/ijetmr.v12.i4se.2025.1584