Summer Internship Project Report

On
“Systematic Investment Plan (SIP) a better way to invest in
mutual fund with special reference to
Motilal Oswal Finanncial Services

Submitted in partial fulfilment of the requirements for the Two Year Full Time Post
Graduate Diploma in Management

Session (2022-2024)

Ashima Nayyar Dr. Abhishek Sinhal

Industry Mentor Faculty Mentor
Motilal Oswal Associate Professor

Submitted By

Student’s Name: - Snehal Kumar

Roll Number: - BM-022301

 (Originality Certificate)

I hereby declare that this Summer Internship Project is my own work and that, to the best
of my knowledge and belief, it reproduces no material previously published or written that
has been accepted for the award of any other degree of diploma, except where due
acknowledgement has been made in the text.

(Student Name)

Enrollment No.
Date:
(Plagiarism Certificate)
 (Industry Certificate)

Date: ………….

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. /Ms……………………. of IMS Ghaziabad, PGDM Batch 2022-
24 has successfully completed his summer internship under the guidance of
Mr .………………………(Industry Mentor’s Name) for a duration of
…………………..weeks, from…….to………….

During his/her tenure with us, we found him/her ………………………..

We wish him/ her all the very best for future endeavours.

Signature

Name

Designation

Organization seal
 (Faculty Mentor’s Certificate)

This is to certify that Mr. / Ms. ……………………….. PGDM (Batch 2022-24) a student
of IMS Ghaziabad, has undertaken the project on “Project Title”. To the best of my
knowledge, the survey, data collection, & analysis work for preparing the project has been
carried out by the student in partial fulfilment of the requirements for the award of PGDM,
under my guidance and supervision.

I am satisfied with the work of Mr. /Ms. …………………………..

Date:

Faculty Mentor’s Name: …………

(Signature)
 ACKNOWLEDGEMENT

First of all I would like to take this opportunity to thank the Institute of Management
Studies, Ghaziabad for having project as a part of the PGDM Curriculum.

I would like to take this opportunity to express my sincere thanks to Dr. for
providing me helpful environment in complexity this project and for giving me the fine
opportunity to do this project in the esteemed organization.

I gratefully acknowledge to Mrs Ashima Nayyar who has given me the opportunity to
learn at deep level to prepare this report and supported me throughout this project with
utmost cooperation and patience.

I express my profound sense of gratitude and sincere thanks to the Management of Motilal
Oswal Financial Services for offering me this project and training in this organization.

I also extend my gratitude to my Project Guide Dr. Abhishek Bhusan who assisted me in
compiling the project.

An acknowledgement would not be complete without a word of thanks to all our friends
for their valuable suggestions.

Place: Student Name:

Date: Roll No:
 EXECUTIVE SYNOPSIS

The design includes a synopsis of Motilal Oswal Securities Limited and the stock request.
It includes mileposts reached by MOSL since its founding as well as other accolades
and honours entered along the way. The study also provides descriptions of the colorful
goods and services that MOSL provides.The report gives a brief explanation of
each MOSL department. The company's geek analysis is carried out using secondary data
that was taken from the MOSL website. It also covers the analysis and evaluation of
colorful investment goods on the request, similar as insurance programs, collective
finances, savings accounts, provident finances, postal savings, fixed deposits, and stocks.
It also covers the numerous choices that the fiscal request's investors have.

The first section of the study examines the results of a check that was performed to gain
primary data to assess the factors that affect investors before they use any of the available
investment instruments.

It investigates the relationship between the perception of the investor and the
characteristics of the goods and the specifications for investors. In light of this
environment, a trouble has been made in this work to Sort investors grounded on a range
of demographic characteristics like age, coitus, income, and profession. also, it includes an
investor's psychographic and demographic characteristics. Which illustrates how essential
factors similar as age, gender, income, and occupation are when making any kind of
investing decision.
 Table of Contents

Declaration…………………………………………………………………....

Acknowledgement………………………………………………………….....

Executive Summary…………………………………………………………..

1. Introduction ............................................................................................. 01
Introduction of the industry ................................................................................... 01
Introduction of the mutual fund .................................................................. 02
Company profile……………………………………………………………..04
Introduction of systematic investment plan ....................................................... 11
Time frame for mutual fund SIP ..................................................................19
Comparative analysis of SIP & lump-sum investment ........................................19
2. Literature review............................................................................................... 25
3. Research methodology ...................................................................................... 28
Problem Statement........................................................................................ 28
Objective of the Study................................................................................. 28
Data Collection Tool .................................................................................... 28
Sample Design ............................................................................................. 28
Sample Size ................................................................................................ 28
Types of Data ...............................................................................................28
Scope of Research ........................................................................................ 29
Tools used for data analysis......................................................................... 29
Limitation ...............................................................................................29
4. Data Analysis & Interpretation ....................................................................... 30
5. Findings and conclusion ........................................................................... 39,40
Bibliography .................................................................................................... 41
Annexure .......................................................................................................... 42
 INTRODUCTION

Introduction of the industry

The financial system is a set of institutional arrangement through which financial surpluses
available in the economy are mobilized. A financial system, which is inherently strong.
Functionally diverse and displays efficiency and flexibility, is critical in creating a market-
driven, productive and competitive economy. A mature financial system has to gear up and
undergo varied and comprehensive changes in order to achieve rapid economic
development.The early 1990s financial sector reforms in India led to a rapid expansion of the
economy, the opening of the Indian financial market to foreign and domestic private players,
a significant influx of institutional investors from abroad, increased competition, and better
product offerings for consumers.

Mutual funds now play a very significant role in channelizing the savings of millions of
individuals. The mutual fund industry in india over the year has seen dramatic improvement
in terms of quantity as well as quality of product and service offering in recent years. The
tremendous growth of indian mutual funds industry is an indicator of India’s efficient
financial market and the trust which investors have on the regulatory environment. Millions
of investor rely on mutual fund as their primary investments because they offer a convenient,
cost-effective and easy way to invest in financial markets.

Millions of people's savings are now being channeled through mutual funds in a big way. The
quality and quantity of products and services offered by the mutual fund business in India
have dramatically improved over the past year. The phenomenal expansion of the Indian
mutual fund business is a sign of the country's effective financial system and the confidence
that investors have in the regulatory framework. Mutual funds are the main investments for
millions of investors because they provide a practical, affordable, and simple way to invest in
the financial markets. This quickly expanding sector is governed by the Securities Exchange
Board of India (SEBI), which also serves as the national association for all mutual funds.
Every mutual fund aspires to either increase its assets (capital gains) or provide income to its
investors (dividends). Long- and short-term capital gains and dividends may be distributed to
shareholders as income or reinvested to purchase additional shares. Daily valuations of mutual
funds produce a price per share known as net asset value (NAV). A fund's net asset value
(NAV) is calculated by dividing the entire value of all securities held by the fund by the total
number of shares owned by owners.

1
 Introduction of the mutual funds

The global economic climate was favorable, and this resulted in the rapid expansion of mutual
funds in the majority of nations, notably since the 1980s. This expansion can be linked to the
market economy's forceful rise, which is mostly dependent on the expansion of the stock market.
In the early and middle 1990s, mutual funds became more popular in wealthy nations compared
to developing nations, but over time, due to their benefits, they also gained popularity in poor
nations. Globally, the number of mutual funds gradually rose, and many developed nations
created nation-specific funds to follow the pattern seen in other developed nations.

History of the indian mutual fund industry

The global economic climate was favorable, and this resulted in the rapid expansion of mutual
funds in the majority of nations, notably since the 1980s. This expansion can be linked to the
market economy's forceful rise, which is mostly dependent on the expansion of the stock market.

Prior to the market monopoly seeing an end phase, the Indian mutual fund industry had
witnessed a tremendous improvement both qualitatively and quantitatively; the assets under
management (AUM) was Rs67 billion. In March 1993 and up until April 2004, the private
sector's inclusion into the fund family increased the AUM to Rs. 470 billion, reaching its peak
at Rs. 1540 billion. The mutual fund industry is undoubtedly expanding rapidly, and it can be
roughly divided into four phases based on how the sector is evolving. Below is a quick
description of each stage.

 First phase:

Unit Trust of India (UTI) was created in 1963 through a parliamentary act and operated under
the administrative and regulatory oversight of the Reserve Bank of India. The Industrial
Development Bank of India (IDBI) replaced the RBI as the regulatory and administrative
authority over UTI in 1978 after it was delinked from the RBI. Unit Scheme 1964 was UTI's
inaugural initiative. UTI managed Rs. 6,700 crores worth of assets by the end of 1988.

 Second phase – 1987-1993 (entry of public sector funds)

Public sector mutual funds established by public sector banks, the Life Insurance Corporation
of India (LIC), and the General Insurances Corporation of India (GIC) entered the market in
1987. SBI Mutual Fund, created in June 1987, was the first non-UTI Mutual Fund, followed
by Can Bank Mutual Fund in December 1987. Mutual fund for Punjab National Bank, August
1989. Mutual fund for Indian banks (1989). A mutual fund was founded by the Bank of India
(in June 1990), the Bank of Baroda (in October 1992), LIC (in June 1989), and GIC (in
December 1990). The mutual fund sector managed assets worth Rs. 47,004 crores by the end
of 1993.

 Third phase – 1993-2003 (entry of private sector funds)

The first mutual fund regulations, which required all mutual funds, with the exception
of UTI, to be registered and supervised, were established in 1993. The first mutual
fund for the private sector was registered in July 1993 under the name Kothari Pioneer.
2
In place of the SEBI regulations from 1993, a revamped and expanded mutual fund regulation
took effect in 1996. at the conclusion of January 2003. There were 33 mutual funds, totaling
Rs. 1,21,805 crores in assets.

 Fourth phase – (since February 2003 – april 2014)

After the Unit Trust of India Act of 1963 was repealed in February 2003, UTI was split into
two distinct entities. One is the Specified Undertaking of the Unit Trust of India, which, as of
the end of January 2003, has assets under management of Rs. 29,835 crores. the financial
resources of the US 64 plans, secured returns, and a few more schemes.

The UTI Mutual Fund Ltd., sponsored by SBI, PNB, BOB, and LIC, is the second. It operates
in accordance with mutual fund regulations and is registered with SEBI. both expansion and
consolidation. as of September 2004's last day. There are 29 funds that handle Rs. 153108
Crores in assets across 421 programs.

 Fifth phase – (since may 2014)

Taking cognizance of the lack of penetration of MFs, especially in tier ll and tier lll cities,
and the need for greater alignment of the interest of various stakeholders, SEBI introduced
several progressive measures in September 2012 to “re-energize” the indian mutual fund
industry and increase MFs penetration.

MF distributers have also had a major role in popularizing systematic investment plans (SIP)
over the years. In April 2016, the no. of SIP accounts has crossed 1 crore mark and as on 30 th
April, 2021 the total no. of SIP accounts are 3.80 crore.

3
 COMPANY OVERVIEW

In 1987, Motilal oswal Securities Limited was established as a little sub-broking business with just
two employees. Focus on putting the needs of the client first, ethical and transparent business
methods, professionalism, research-based value investment, and the use of cutting-edge
technology have allowed us to grow into a workforce of over 1600 people.

Today, the company has a well-diversified financial services division that provides a variety of
financial goods and services, including Wealth Management, Brokering & Distribution,
Commodity Broking, Portfolio Management Services, Institutional Equities, Private Equity,
Investment Banking Services, and Principal Strategies.

Its varied client includes corporate clients, mutual funds, international institutional investors, retail
clients (including High Net Worth Individuals), and financial institutions. As of June 30th, 2011,
the organization, which has its headquarters in Mumbai, has 1,607 company locations that were
administered jointly by our business partners and ourselves across a network of 586 cities and
towns. As of June 30, 2011, we had 722,303 registered clients.These locations provide access to
its institutional business area for major foreign institutional investors (FIIs) in the US, UK, Hong
Kong, and Singapore. In a recent media report, it was ranked as one of the top 10 brokers for
business conducted for FIIs.

4
 Our managing director, Mr. Raamdeo Agrawal, developed our unique Wealth Creation Study,
which is now in its eleventh year. Investors anxiously anticipate this annual study because of the
wealth of data it provides on how businesses made money over the past five years. The team's
strongest suit is its young, talented, and confident players. Qualified specialists carry out a variety
of activities under the skillful supervision of the company's promoters, Mr. Motilal Oswal and Mr.
Raamdeo Agrawal. A strict hiring procedure, an emphasis on continual training, and the adoption of
best management practices all fuel the company's efforts to realize its mission.

Motilal oswal Financial Services consists of four companies

• Motilal Oswal Investment Advisors Pvt. Ltd.

Our investment banking division, with over 100 years of combined experience in corporate
banking, investment banking, and consulting services.

• Motilal Oswal Commodities Broker ltd

Has been offering facilities for commodity trading and related goods and services since 2004.

• Motilal Oswal Venture Capital Advisors Private Limited

Has unveiled the India Business Excellence Fund, a US$100 million private equity fund with a
focus on India.

• Motilal Oswal Securities limited

Equities, derivatives, e-broking, portfolio management, mutual funds, commodities, IPOs, and
depository services are just a few of the services we offer.

Mutual fund

A mutual fund is a company that brings together money from many people and invest it in
stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund
owns are known as it portfolio. Each investor in the fund owns shares, which represent a part
of these holdings. A mutual fund is a professionally managed investment product that sells
shares to investor and pools the capital it raises to purchase investments a fund typically buys
a diversified portfolio of stocks, bonds and money market securities, or a combination of
stocks and bonds, depending on the investment objectives of the fund. MF may also hold

5
other investments, such as derivatives. A fund makes a continuous offering of its shares to the
public and will buy any shares an investor wishes to redeem, or sell back, is known as an
open-end fund. An open-end fund trades at net asset value(NAV).

A type of investment vehicle used to invest in securities including stocks, bonds, money
market instruments, and similar assets. It is made up of a pool of cash gathered from
numerous participants. Money managers manage MFs, investing the capital of the funds in an
effort to increase capital gains and provide income for the investors of the funds. The
structure and upkeep of a mutual fund portfolio aligned.

6
Advantages of mutual funds
- Diversification
- Professional management
- Regulatory oversite
- Liquidity
- Convenience
- Low cost
- Transparency
- Flexibility
- Choice of schemes
- Tax benefit

Classification of mutual fund

(1) By structure
- Open-ended schemes
- Close-ended schemes
- Interval schemes

(2) By investment objective

- Growth schemes
- Income schemes
- Balanced schemes

(1) Based on their structure:

- Open-ended funds
Investors have constant access to the fund's units for purchase and sale.

- Close-ended funds
These funds only receive a single investment from investors. Therefore, new
investments into the fund cannot be made after the offer period. The units of a fund
that is listed on a stock exchange can be exchanged much like stocks (for example, the
Morgan Stanley Growth Fund). Most recent close-ended fund fresh fund offers
provide a liquidity window on a regular basis, such as weekly or monthly. Units may
be redeemed at predetermined periods. As a result, these funds have a low level of
liquidity.

7
 - Interval schemes
The advantages of both open-ended and closed-ended plans are combined
in interval funds. At NAV-related prices, they are available for purchase
or redemption at predetermined intervals.

(2) Based on investment objective

- Growth funds
These programs typically invest the majority of their corpus in stocks. It has been
demonstrated that long-term stock returns have outpaced the majority of other types of
investments. It is perfect for long-term investors wanting steady gain over time.

- Income funds
Investors' regular and steady income is the goal of income funds. These schemes typically
invest in government securities, corporate debentures, and fixed income products like bonds.
The best income funds are those that provide consistent income and stable capital.

Investment strategies:
1. Systematic investment plan:

In accordance with this, a defined amount is invested on a set date each month. Payment can be
made using direct debit or postdated checks. When the NAV is high, the investor receives fewer
units, and when it is low, they receive more units. This is referred to as a rupee cost averaging
benefit.

2. Systematic transfer plan:

In this scenario, a mutual fund investor makes a debt investment and instructs the In mutual fund to
transfer a specific amount of money, at a fixed interval, to an equity plan.

3. Systematic withdrawal plan:

If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount
each month.

Options available to investors:

In this scenario, a mutual fund investor makes a debt investment and instructs the Growth,
dividend, and dividend reinvestment are the three alternatives available for each mutual
fund's plans. Each scheme's NAV is calculated separately.

8
 - Growth option
In this scenario, a mutual fund investor makes a debt investment and instructs the
Returns accrue to investors under this plan in the form of capital growth, which is
reflected in the NAV. Investors who choose the growth plan will not get any
income from the scheme because the scheme will not declare the dividend under
that plan. Instead of receiving income from their units, investors will keep their
money invested in the program, which will be reflected in the NAV.

- Dividend option
In this scenario, a mutual fund investor makes a debt investment and instructs the
Dividends under the dividend plan are typically announced on a quarterly or
annual basis. The frequency of dividends declared may fluctuate at the discretion
of the mutual fund.

- Dividend reinvestment option

In this scenario, a mutual fund investor makes a debt investment and instructs the
Unit holders have the option of investing the full dividend in extra units of the
scheme at NAV-related prices as of the first working day after the record date, as
opposed to remitting units through distributions.
Banks v/s mutual funds:

In this scenario, a mutual fund investor makes a debt investment and instructs the In the
fight for ordinary investors' savings and corporate float money, mutual funds are now
rivaling commercial banks. It is now clear that mutual funds are gaining power. The next
few years will demonstrate how inadequate traditional saving methods are in the current
environment. Many investors are coming to the conclusion that holding investments in
savings accounts is equivalent to locking up their money in a closet. According to the
mutual fund fund mobilization trend, mutual funds are receiving a significant amount of
funding.
Category Banks Mutual funds
Returns Low High
Administrative exp. High Low
Risk Low Moderate
Investment options Less More
Network High penetration Low but improving
Liquidity At a cost Better
Quality of assets Not transparent Transparent
Interest calculation Minimum balance between 10th Everyday
& 30th of every month
Guarantee Maximum rs. 1 lakh on deposits None

9
Structure of mutual fund in India

In this scenario, a mutual fund investor makes a debt investment and instructs the three-tier
structure of mutual funds in India includes additional significant elements. It involves more
than just different banks or AMCs producing or launching a range of mutual fund schemes.
However, there are a few other participants who significantly influence the mutual fund
structure. The process involves the sponsor (who establishes the mutual fund), trustees, and
asset management business (which supervises the fund administration). The SEBI Mutual Fund
Regulations, 1996, which serves as the principal watchdog in all transactions, are to blame for
the structure of mutual funds. A mutual fund is established as a public trust in accordance with
these rules.

An overview

In this scenario, a mutual fund investor makes a debt investment and instructs the what is
commonly referred to as a mutual fund is actually a business kind. There are roughly 30–40
corporations and businesses that operate in the mutual fund industry and are referred to as
fund houses.
Through a government regulatory organization called the Securities and Exchange Board of
India (SEBI), these are registered and granted permission to run mutual fund schemes.
Investors, who are regular people, buy and sell these kinds of schemes every day. In essence,
it operates as

Mutual fund > fund house > individual scheme > investors

10
The structure of mutual fund
In this scenario, a mutual fund investor makes a debt investment and instructs the The first
tier of the three-tier Indian mutual fund structure is the fund sponsor. According to SEBI
regulations, a fund sponsor is any person or business that is able to establish a mutual fund
with the intention of making money through fund management. An associate firm that
oversees the fund's investments is used to run the fund. A sponsor can be thought of as the
company's advocate of its affiliate. To request approval to set up a mutual fund, a sponsor
In this scenario, a mutual fund investor makes a debt investment and instructs the However, a
sponsor cannot operate independently. Once SEBI accepts the commencement, a public trust
is established in compliance with the Indian Trust Act of 1882 and registered with SEBI.
Trustees are chosen to run the trust, safeguard the interests of unit holders, and adhere to
SEBI's mutual fund requirements after the trust has been successfully established. The
sponsor then establishes an asset management business that must adhere to the Companies
Act of 1956 in order to govern the management of money.

In this scenario, a mutual fund investor makes a debt investment and instructs the Given that
the sponsor is the main organization that promotes the mutual fund company and that the
mutual funds will govern public money, SEBI has established qualifying requirements for the
fund sponsor.
In this scenario, a mutual fund investor makes a debt investment and instructs
 The sponsor must have a minimum of five years of experience in the financial
industry and have a positive net worth over the course of the past five years.
 • The capital commitment of the AMC must be greater than the sponsor's net
wealth in the most recent year.
 • The sponsor is required to demonstrate profitability in at least three of the last
five years, including the most recent one.
 • The sponsor must own at least 40% of the asset management company's net
worth.

In this scenario, a mutual fund investor makes a debt investment and instructs the As obvious as it
may be, a sponsor's position is quite important and demands the highest level of credibility. The
sponsor is required by the severe and stringent standards to have sufficient liquidity and the fidelity to
refund investor funds in the event of a financial crisis or meltdown.

Trust and Trustees

In this scenario, a mutual fund investor makes a debt investment and instructs the Trust and
trustees are part of the second layer of the Indian mutual fund structure. Trustees, also
referred to as the fund's guardians, are typically employees of the fund sponsor. They have a
crucial role to play in maintaining investors' trust and monitoring the progress of the funds, as
is obvious from the name.
Through a legal document called a trust Deed, the fund sponsor establishes a trust in favor of
the trustees. Trustees are accountable to investors and run the trust on their behalf. They could
be considered the main stewards of funds and assets.
11
 In this scenario, a mutual fund investor makes a debt investment and instructs the They also
keep an eye on the systems, practices, and general operation of the asset management firm.
AMC is not permitted to launch any scheme on the market without the trustees' consent. Every
six months, the trustees are required to submit a report to SEBI outlining the AMC's operations.
In order to prevent any form of conflict of interest between the AMC and the sponsor, SEBI has
also implemented more stringent transparency regulations. Therefore, in order to protect
investors' hard-earned money, trustees must act independently and take appropriate action.
Even trustees are required to register with SEBI. Additionally, SEBI controls their registration
by canceling or suspending the registry if any terms are found to have been broken.

Asset management companies

In this scenario, a mutual fund investor makes a debt investment and instructs the The third
layer of the mutual fund system is comprised of asset management firms. It is a sort of
company established under the Companies Act that is registered under SEBI. An AMC's
purpose is to list a selection of mutual fund schemes that adhere to market norms and investor
needs. The asset management firm serves as the trust's investment manager or fund manager.
The AMC receives a nominal fee for managing the fund. All operations pertaining to the
funds fall under the purview of the AMC. It starts several plans and then implements them.
Additionally, it establishes mutual funds alongside the trustee and sponsor and controls their
growth.

Other components in the structure of mutal funds

- Custodian

In this scenario, a mutual fund investor makes a debt investment and instructs the One
such organization in charge of keeping the mutual fund securities secure is a custodian. They
are registered with SEBI, handle the mutual fund's investment account, and make sure the
securities are delivered and transferred. Additionally, custodians help investors keep track of
their investments and give them the option to upgrade their holdings at a given moment.
Additionally, they gather and keep track of bonus payments, dividends, and interest earned on
mutual fund investments.

- Register and transfer agents (RTGS)

In this scenario, a mutual fund investor makes a debt investment and instructs the An important
conduit between investors and fund managers is provided by RTAs. They provide assistance to the
fund managers by keeping them informed of investor information. Additionally, they provide the
benefits of the fund to the investors. Even they carry out a variety of activities and duties and are
registered with SEBI. These are the organizations that support mutual funds. RTAs resemble
Mutual Funds' operating division more than anything. Since all Mutual Fund companies operate
similarly, using RTAs on a large scale and at low cost is advantageous for all 44 AMCs.

12
 Processing investors application
 Maintaining a list of investors' information.
 Sending periodic reports; • Processing dividend payments; • Sending account
statements to investors
 Updating the investor information, which includes adding new participants and
removing those who have left the fund.

Auditor

Auditor examine annual reports of various schemes as well as record books of accounts. They
are referred to as the independent watchdogs, and it is their job to audit the sponsor, trustees,
and AMC's financial records. Each AMC employs an impartial auditor to review the books in
order to maintain the books' transparency and integrity.

Brokers
The brokers' main duties include distributing the monies and bringing in new investors. To
buy and sell shares on the stock market, AMC uses brokers' services. Brokers must also
research the market and predict its future course. The AMCs organize their market moves
using research reports and advice from numerous brokers.

TWO WAYS OF INVESTMENT IN MUTUAL

 Lump-sum payment
 Systematic investment plan

Lump-sum payment

A lump amount is a single financial payment. This entails investing the entire amount at once
as opposed to a series of payments made over time (such as an annuity). For instance, let's say you
have Rs. 1 lakh that you want to invest entirely in stocks or money market funds. It's a one-time
investment.

13
Systematic investment plan
Introduction

Retail investors might use a systematic investment plan (SIP) to enhance their investment
approach. SIP is nothing more than a straight forward technique for investing a set amount of
money in a particular investment strategy. consistently, for a predetermined length of time. A
SIP also includes a periodic deposit made at the post office or a bank. Systematic investment
plans were already well-known and well-proven in the context of mutual funds, but SIP has
now expanded straight into equity stocks, which are essentially individual stocks. equity SIP
is a brand-new service that allows you to purchase a script for a regular interval over time for
a set price or a set number of copies.Mutual fund investing may not be for everyone.
Dependence on variables like a volatile stock market and risking your hard-earned cash for a
paltry reward are not really helpful. However, if you have good financial discipline and are
interested in mutual funds, the equity systematic investment plan (SIP) would be beneficial to
you.

You must invest a set amount in a particular mutual fund plan as part of a SIP. In contrast, it
operates much like a regular deposit. You can create a savings plan for yourself and dedicate
a certain amount of money to the plan each month on a set date. For ELSS (equity linked
saving plans) programs, you can start with just Rs. 500 and work your way up to Rs. 1000 per
month for other diverse programs. SIP adheres to the simple tenet of "buy high, sell low."
This is an easy strategy for succeeding in the stock market.

However, a busy or inexperienced player will need some time to figure out how to properly
time the market. SIP, with its monthly payment plan, enters the scene in this situation.
Investing a set amount each month will guarantee that you have money while the market is
strong and will secure your position in a volatile market.The service is system-driven, and
once the procedure is started, the investor can take advantage of the simplicity of making
consistent regular investments into the chosen equities.

This service is offered online by Geojit BNP Paribas, making it simple for investors to
schedule recurring savings and investing goals.Setting away a lump sum each month is far
less disciplined than investing strictly on a monthly basis. The advantages of compounding
are exclusively yours because you start out relatively young. The convenience is also
advantageous because you simply need to make one request for the acquisition of shares.

14
 WHAT IS SYSTEMATIC INVESTMENT PLAN
Mutual funds use a tool called a systematic investment plan (SIP) to aid investors in

settingaside money on a regular basis. It is very similar to making a little deposit on a regular

basis at the bank or post office. The money in this case is placed in a mutual fund, which

makes a difference.

A systematic investment plan (SIP) is a way to invest in mutual funds in which a person

selects a mutual fund scheme and invests a defined sum at predetermined intervals.

SIP investment plans emphasize investing a small sum over time as opposed to a large sum at

once that will yield a bigger return.

SIP mostly aids us in developing an addiction to the investment tenet of

"Income - Savings = Expenditure" rather than the tenet of Income – expenditure =

savings.

Due to the fact that an investor is always invested, SIP helps investors get past the issue of
"when" to participate in the equity markets. SIP automates decision-making by eliminating
human judgment. By investing at various times, one might reduce risk, but doing so has the
drawback of "averaging" out returns.
The entry and exit loads imposed by all mutual funds are a crucial consideration. Most funds in
a typical investment either impose an exit burden or an entry load. However, a SIP also charges
an exit load if the program is terminated before a predetermined period in addition to the entry
load that is charged for each installment.
Last but not least, investors should keep in mind that SIP does not guarantee a return and
continue contributing without interruption as skipping a few installments might result in the
SIP being terminated. An investor who opts to invest in mutual funds through a SIP does so by
setting up monthly payments in lesser amounts over time as opposed to all at once.
When you use SIP, you may invest a certain amount on a monthly basis. As a result, you
receive fewer units when the fund's NAV is greater and less units when it is lower, lowering the
average cost of an investment over time.
As an investor, you can profit from your present profit by extending the investment duration.

15
 Working of SIP

To further understand how a SIP operates, let's look at an example. Let's say "X" wishes to make
a SIP investment in a mutual fund. He agrees to invest Rs 1000 per month in a fund called
"ABC" for a period of twelve months (beginning January 1, 2006). The payment may be made
via the ECS option (if available) or by writing twelve postdated checks for Rs 1000 each.
DATE MONTHLY NAV NO.OF UNITS
INVESTMENT
1-January Rs 1000 46.29 21.603
1-Febrary Rs 1000 48.08 20.799
1-March Rs 1000 52.78 18.947
1-April Rs 1000 56.36 17.743
1-May Rs 1000 58.42 17.117
1-June Rs 1000 56.42 17.724
1-July Rs 1000 62.14 16.093
1-August Rs 1000 67.58 14.797
1-September Rs 1000 71.7 13.947
1-October Rs 1000 76.19 13.125
1-November Rs 1000 83.97 11.909
1-December Rs 1000 89.92 11.121

Short summary
Investment each month: $1000
Investment timeframe: 12 months
12000 rupees was invested overall.
194.925 is the total number of units attributable to "X."
Unit cost on average: Rs 61.5621

Note that entrance and exit fees still apply when investing using the SIP option. However, for
the sake of convenience, load has not been considered in this scenario.

Advantages of "X"

Convenience and cost due to a simple monthly payment arrangement.

helps X establish the habit of methodical investing since he or she is obligated to make a
certain contribution each month as agreed.

Rupee cost average benefit: By using the SIP investment method, "X" obtains 194.925 units
at an average cost of Rs 61.5621. However, "X" would have earned a different number of
units if he had invested the entire Rs 12000 in one go. If "X" had put down Rs. 12,000 on:

16
He would have received 259.24 units on January 1st, 2006.

He would have received 193.11 units on July 1st, 2006.

He would have received 133.45 units on December 1st, 2006.

Since it is difficult for anybody to timing the market exactly, it is more logical to invest

through the SIP option (for long-term, say, 3 to 5 years). In fact, it helps investors take

advantage of stock market volatility. This illustration demonstrates how SIP enables "X" to

profit from all market highs and lows over the course of a whole year.Flexibility to adjust the

monthly investment amount or to redeem units at any moment.

Why systematic investment plan

Systematic investment plans, or SIPs, are a method of consistently investing in stocks. Since
it is difficult to time the market, a methodical investment strategy serves as the greatest means
of transportation throughout market turbulence.

For instance, at a cautious rate of 8%, Rs. 5000 saved and invested each month for 20 years
would grow to Rs. 30 lakhs, however a consistent return of 15% through SIP would grow to
Rs. 76 lakhs. SIP is the best strategy for ordinary investors to take advantage of compounding
and build long-term wealth.
SIP works best to help you reach your medium and long-term objectives, such as saving money
for retirement, a home, a car, or a child's education and marriage. One has to accumulate wealth
over time in order to attain all of their ambitions, which cannot be done with monthly income
alone. So a systematic investing strategy is the best approach to achieve that. Over time, little
monthly sums saved and invested might contribute to the development of a sizable corpus. The
money invested will produce fewer units in a rising market while more units will be produced in
a declining market, giving the investor a low average cost per unit. As a result, it stops the
investor from attempting to time the market.

Since cost averaging is a SIP's main tenet, they often underperform in steadily rising markets.
You would wind up investing at higher markets and receiving fewer units if markets were
continually increasing. since a result, SIPs lose their advantage if markets are not erratic and
there are no ups and downs, since the notion of averaging will not hold true. In summary, you
don't need to commit a large sum of money all at once; a modest sum each month would do just
fine. Avoid worrying about stopping and beginning your SIP in rising or declining markets since
doing so would be counterproductive. The basic idea behind SIPs is that you shouldn't have to
worry about market volatility at all.

17
 It is crucial to realize that the Indian stock market is among the most alluring in the world in terms
of risk-adjusted return. Over the past thirty years, the Sensex has generated an average
compounded yearly return of 18 to 20%. One should begin investing early in their career to take
advantage of these alluring market returns. SIP is a useful technique for starting small with your
investments and receiving the benefits later in your career. Young individuals typically have little
interest in long-term investments and prefer to focus on quick profits. This frequently encourages
people to make riskier investments, and when such investments fail, they typically lose trust in the
idea of investing altogether.

Early adoption and consistent investment lead to wealth generation.

Early starts, consistency, and patience will pay off in the long run with bountiful rewards. SIP
investment timing

SIP investments may be launched whenever there is a low risk and the right strategy is in place
for the investor. It is crucial for the investor to select a plan that is in line with his long-term
objectives. There is therefore no appropriate window of time within which an individual should
begin a SIP investing plan; the earlier the better.

Types of systematic investment plan

(1) Top-up SIP

With this SIP, you may gradually raise the amount you invest, allowing you the freedom to do so
whenever your income or available funds are higher. By consistently investing in the finest and
highest performing funds, this aids in getting the biggest return on investment.

(2) Flexible SIP

This SIP plan allows you to invest any amount you wish, as the name implies.According to his
personal preferences and cash flow requirements, an investor may raise or reduce the amount.

(3) Perpetual SIP

This SIP plan enables you to continue investing even after the deadline has passed. An SIP often
has an expiration date after one year, three years, or five years of investment. Thus, the investor
may withdraw the money at any time or in accordance with his financial objectives.

18
Features of SIP
(1) Small and regular investment

Even with a modest amount invested on a regular basis, a systematic investment strategy enables you
to reach your larger financial objectives. SIP is easier on your bank account. It allows you to make
recurring investments at intervals like as weekly, fortnightly, monthly, and quarterly for as little as
Rs. 500, depending on the size of your wallet.

(2) Disciplined investment

Investors sometimes struggle to continue their long-term investment habits. Any investment
requires a committed strategy and laser-like focus. Systematic investment plans, as their name
suggests, are ways to consistently invest a certain amount. Your investment habits will
automatically become more disciplined as a result. It is really far simpler to develop the habit of
investing by making little, frequent investments than by making a large sum of money every
year. If you haven't yet ingrained the discipline of investing, it is advised that you begin a SIP.

(3) Ease of investing

There are two approaches to install ISIP: online and offline SIP. However, in the present digital
wave, you may invest in SIP via invest online platforms. Traditionally, you can invest in SIP by
filling out a mandate. You may conduct paperless transactions using the invest online platform,
which also offers quicker and easier processes. To allow continuous automated investments, you
can choose to link your portfolio to your bank account. Salaried workers typically decide to link
their SIP accounts to their pay accounts in order to maintain the regularity and linearity of the
process. This fixes the problems with regularity errors.

(4) Power of compounding

Compounding's potential to grow investments is the main factor that propels them forward.
Despite the modest size of systematic investments, the force of compounding allows investors to
reap greater rewards. Early investment might create chances for larger rewards. Simply said, the
little sums you put down each month produce returns throughout the time spent, and in a same
vein, the gains from one investment are added.

MR. X MR. Y
 Age: 25 year Age: 25 year
 Start: today Start: at 40
 Invest: 5 year Invest: 20 year
 Amount: Rs 10000 p.a. Amount: Rs 10000 p.a.
 Redemption on retirement (age Redemption on retirement (age
60 years) 60 years)
.

19
 .
(4) Rupee cost averaging

Nobody can accurately time the market, not even sometimes. But with SIP, you are not
required to timing the market. Rupee cost averaging is a technique for timing markets
automatically. Due to the regularity of SIP investments, more units are purchased while the
market is down, increasing the value of your assets when the market rises. The SIP thrives
on volatility, therefore the gap between SIP and lump payment returns expands.

Advantages of SIP

- SIP can be started with a minimum monthly investment of Rs. 500 or Rs. 1000.
- It is a good and efficient method for long-term wealth creation.
- If you invest through a SIP, you can use the ECs service.
- Unlike a sizable withdrawal, a minor withdrawal from an account has no impact
on a person's bank balance.
- If a person at any moment is unable to continue their SIP, it may be for a year,
two years, three years, etc. He may provide the fund house instructions at least
25 days in advance. His SIP be terminated.
- All types of funds, excluding those that participate in extremely short-term
fixed-return investment opportunities and liquid funds, cash funds, and other
funds.
.

Disadvantages of SIP
(1) No downside defense
Investors should keep in mind that despite all the benefits that SIPs offer, they are still exposed
to market risks and cannot guarantee gains in declining markets or shield investors from
suffering losses.

(2) Portfolio risk is still present.

Security risks apply to SIPs as well. Even when investments are made through SIPs, mutual fund
schemes that invest in portfolios that end up producing negative returns will always result in
losses for investors.

(3) Ideal investor profile

Before choosing a SIP option, investors should have a long-term investment horizon, be
prepared to invest frequently, exercise patience, and be unable to contribute a sufficient amount
at once.

20
 (1) Specifying the investment goal

Investors should have a certain goal in mind before making any investments. Establishing a rough
timeline for when the investments would need to be made is helpful.

(2) Calculating investment surpluses

Investors should periodically determine how much they can afford to invest. Investors should
exercise caution when generating this estimate since underestimating the amount of recurring
investments might end up burdening investors.

(3) Choosing a suitable scheme category

Investors should assess the risk-return profile of a scheme before investing. Investors should select
a strategy that fits their investment goal, for instance, equities funds are advised for those with a
high risk tolerance, debt funds for those who are risk averse, and balanced funds for those who have
a moderate risk tolerance.

(4) Forget about market savings

Sentiment dictates market fluctuations in the near run. Investors should thus not be concerned by a
brief market correction or decline. The investments are secure as long as the long-term possibilities
are unharmed.

(5) Regular evaluation of investments

Investors should continually track the performance of comparable schemes to the one in which the
investment was made after choosing an appropriate plan and making an investment in it. Investors
can use this to evaluate the performance of their plan to similar schemes and, if necessary, make
improvements.

Time frame for mutual fund SIP

Theoretically, long-term mutual fund SIPs are effective for investors. However, we must make a
short-term mutual fund SIP commitment due to practical considerations. We must divide the
long term into many segments of 6 months or 1 year, committing your mutual fund SIP for the
first 6 months or 1 year.

then extend your mutual fund SIP for another six months or one year at the end of the first
period. Until your set long term time is up, you must renew in this manner.

You could believe it to be pointless paperwork and a waste of time. But after reading this post,
you will be 100 percent persuaded.

21
 Contribution towards mutual fund SIP changes:

- Over time, the amount you are paying into your mutual fund SIP fluctuates.
- A person can commit to a mutual fund SIP for a little amount in the start of their career. as
his professional career develops. He or she would be able to boost their mutual fund SIP.
- Similar to this, it becomes challenging for someone to continue contributing the same
amount to a mutual fund SIP when they need to spend more on a child's further education, a
daughter's wedding, purchasing a property, or fulfilling a significant financial obligation.

Comparative analysis of systematic investment plan and lumpsum

investment

Over time, mutual funds have greatly increased in popularity. In addition to the various
benefits that investing in mutual funds offers, such as diversification and competent
management, the simplicity of the investment procedure has established itself as a key
enabling element. But thanks to the development of cutting-edge products, investors now
have a lot to choose from in the world of mutual funds. Due to the availability of a wide
range of possibilities, investors must select a mutual fund with investment goals that align
with their own risk tolerance and risk capacity levels.

Most crucially, mutual funds offer risk diversification. One of the fundamental principles of
portfolio construction, diversification of a portfolio is essential to lowering the degree of risk
accepted by the portfolio holder. The majority of us would be better off leaving the theories
of portfolio structure to professionals because we are typically not well-qualified to apply
them to our assets. Mutual funds are one example of such a choice.

A great technique to determine how well or poorly a fund has performed in the past is to
review historical performance, look for stability, and even if past success is not a guarantee
of future performance evaluated its performance in relation to its declared goals and peer
group. Find the top five performing funds as a solid starting point.

22
Good reasons to invest in SIPs

(1) Minimal investment sum

With SIPs, you may often start investing with as little as Rs. 500 each month, which is far less
than the most common investment choice.

(2) Change the SIP amount as desired.

SIPs are very adaptable. For instance, you are not required to continue putting only Rs 1000 into
your chosen mutual fund plan if you begin a Rs 1000 SIP.
You can choose to raise the SIP amount or even start a new SIP in the same mutual fund scheme
or any other scheme of your choosing if your savings grow in the future.

(3) Stop or skip the SIP

Moreover, there is no need to compulsorily make the SIP investment every month for any fixed
duration. You can skip the SIP for a few months or even stop the investment as and when you like.
So, in case of an emergency, if you do not have adequate funds to invest, you can skip SIP
payments for a few months.

(4) Makes you disciplined investor

The second significant factor making SIP the best is its capacity to develop disciplined investing
in you. The majority of individuals begin investing but fall short when it comes to consistent
investment. In order to come closer to your financial goals, regular investments are required.
Due to the very nature of SIPs, your investing path will now have more discipline. You don't need
to make the monthly contributions yourself since a predetermined amount you choose
automatically invests in the plan of your choosing.

(5) Timing the market- what is that?

Accurately timing the markets on a regular basis is nearly impossible. SIPs, however, don't call for
any sort of market timing. Regardless of the state of the market, you continue to invest a certain
sum each month.If the market is down, you will receive more fund units; if the market is up, you
will receive less units.

23
(6) Reduces the average cost of mutual funds units

In keeping with the previous argument, SIPs assist in lowering the average price at which you
purchase mutual fund units. When the markets are performing poorly, the fund's NAV is low, and it is
high when they are performing well. Therefore, over time, when you consistently invest a fixed
amount through SIP, the average cost of buying the units tends to be cheaper than when you make a
lump sum investment during a bull market.

(7) Compounding power

The gains that your investment generates would then be added again to your investment amount if
you choose the growth option when you started your SIP. This causes the compounding effect, which
over time might produce good profits.
Therefore, beginning a SIP in any investment plan of your choosing and choosing the growth option
might be beneficial if you have long-term financial goals.

(8) No involvement with emotion

It might be difficult for an investor to avoid being affected by the market's ups and downs. People
frequently make emotional financial decisions because of market volatility, which typically
doesn't produce the desired results.
However, the way SIPs operate protects investors from making such errors. All you have to do is
continue making a set monthly investment without worrying about the volatility of the stock
market in the short run.

(9) Complete openness

In India, the mutual fund sector has expanded tremendously during the past few years. Every
mutual fund scheme and AMC must adhere to a number of strict regulations that AMFI and SEBI
have put in place to safeguard investors' interests.
By doing this, investors who are just beginning their investment journey through SIPs may now
feel comfortable and transparent about the mutual fund sector.

24
 Review of literature

1. A case study of the service class's perception of a systematic investment plan (SIP).
Author: Dr. B.S.Hundal, professor of GNDU Amritsar's department of commerce and
business management. A systematic investment plan is a methodical approach to
investing in which regular investments are made in accordance with a specified
schedule. It is simple to invest automatically thanks to the tried-and-true discipline of
systematic investing. This essay aims to investigate how people from the service class
see systematic investment plans. The same has been studied using factor analysis and
cluster analysis, and it was shown that the service class has a favorable attitude about
investing in these schemes.

2. M. Ashok Kumar and S. Umambheswari (2013) Awareness is the state one is in when
they are aware that something new exists. Investors' investing decisions are created,
modified, and shaped by external factors. Investment decisions are made based on
information from sources including television, radio, print media, personal expert
consultations, family, and friends, among others.

3. R. Sreepriya and P. Gurusamy (2013) Investments can result in increased earnings or value
growth. Investment's primary trait is waiting for benefits. Investment is the allocation of
financial resources to obtain a return over a certain time. People in the salaried class spend
their extra money through several avenues. This study examines the many investing
options.

4. Paul Sundar (2013) examined how an investor might behave. This study highlights the
connection between investment risk and investment protection.
Nearly 59 respondents continue to choose investment safety above taking a risk in
exchange for high returns. Investment protection is the top priority for the respondents.

5. M. Nandhini and D. Sivasakth (2013) claim that mutual funds are the most likely option
for the average investor since they offer a cost-effective way to invest in a variety of
professionally managed assets. According to these studies, the main goal of investing is
investor wealth accumulation. With little risk, mutual funds offer modest rates of return on
investment.

25
6. M Prakash and Ashlynn Joseph (2014) Investments are purchases made of financial
products or other valuable items with the expectation of future financial gain. The various
investment choices, including bonds, cash, real estate, etc., are analyzed in the study.

7. 10. M Prakash and Ashlynn Joseph (2014) Investments are purchases made of financial
products or other valuable items with the expectation of future financial gain. The various
investment choices, including bonds, cash, real estate, etc., are analyzed in the study.

8. 11. Samreen Lodhi (2014) examines how financial literacy, accounting data, and investor
receptivity to experience affect investors' choices. Investments fall into one of two
categories: risk-takers or risk-averse. Investment in shares, risk aversion, information
asymmetry, and investment preference for risky situations.

26
 Research methodology
Problem

statement :

Systematic

Investment Plan

(The better way to invest in mutual fund)

Research Objectives :
- Research the level of interest in SIP investments.
- Research which plans are preferred by investors when investing in mutual funds.
- Research the preferences of investors for mutual fund participation.

• Lump-sum
• Systematic investment plan
- To discover factors that investors evaluate while investing in mutual funds
Research design :

Descriptive research design

Sample design

I have used simple random sampling For the purpose of my study

Sample Size

For sample size I have taken 250 people as sample size.

Data Collection

Two types of data, they are as follows

1) Primary Data

For the purpose of the study, primary data is collected by questionnaire.

2) Secondary Data

There are some secondary data collected from internet and websites to collect the proper
information and the industry details about mutual fund.

27
 Scope of research

This initiative will assist existing/potential investors in understanding the various modes
of mutual fund investing and why systematic investment plans outperform lump-sum
investments. So that investors may make better use of their hard-earned money and benefit
more.

Tools used for data analysis

 SPSS
 MS Excel

Limitation

- The research is limited to Surat.

- The possibility of data collecting errors since many respondents did not complete the
questionnaire.
- Responses obtained may be erroneous due to respondents' online bias.

28
 DATA ANALYSIS

Gender
Frequency Percent Valid Percent Cumulative Percent

Valid males 178 70.6 70.6 70.6

females 74 29.4 29.4 100.00

Total No. 250 100.0 100.0

Interpretation

The above chart shows that out of 250 respondents 176 respondents are male and 74
respondents are female.

29
 Occupation
Frequency Percent

Valid Salaried 47 19.2

Business 83 33.6

Student 79 31.6

Housewife 25 9.6

Retired 16 6.0

Total 250 100.0

Interpretation

According to the aforementioned graph, out of 250 respondents, 47 are salaried, 83 are businessmen, 79 are
students, 25 are stay-at-home mothers, and 16 are retirees.

30
 Income of the respondents
Frequency Percent

Valid 1-2 lakhs 71 28.8

2-3 lakhs 36 14.8

3-4 lakhs 50 20.4

4-5 lakhs 35 13.2

5 lakh and above 58 22.8

Total 250 100.0

Interpretation

According to the aforementioned graph, out of 250 respondents, 71 have an income of

between 1-2 lakhs, 36 have an income between 2-3 lakhs, 50 have an income between 3-4
lakhs, 35 have an income between 4-5 lakhs, and 58 have an income of between 5 lakhs and
above. This means that the majority of respondents have an income of between 1-2 lakhs.

31
 1. Do you invest regurlarly in the mutual funds?
Frequency Percent

Valid Yes 179 71.9

No 71 28.1

Total 250 100.0

Interpretation

According to the aforementioned graph, out of 250 respondents, 179 respondents participate in
mutual funds on a regular basis, whereas 71 respondents do not.

32
2. Through which way of investment in mutual fund you select?
Frequency Percent

Valid lump-sum 105 42.4

systematic investment plan 145 57.6

Total 250 100.0

Interpretation

According to the aforementioned graph, 105 respondents out of a total of 250 respondents
engage in lump sum payments, whereas 145 respondents participate in systematic investment
plans. The majority of respondents opt to invest their money via a systematic investment
strategy.

33
3. What were the source of your knowledge about SIP as an
investment option?
Frequency Percent

Valid Television 28 10.7

Internet 92 37.1

newspaper/journals 61 24.9

friends/relatives 53 20.5

sales representatives 18 6.8

Total 250 100.0

Interpretation

The aforementioned graph shows that out of 250 respondents, 26 respondents cited television as
their primary information source, 92 respondents cited the internet as their primary information
source, 61 respondents cited newspapers or journals as their primary information source, 53
respondents cited friends or family as their primary information source, and 18 respondents cited
sales representatives as their primary information source. Internet is the primary source for the
majority of responses.

34
4. Where did you find yourself as a investor in mutual fund?
Frequency Percent

Valid partial knowledge of mutual funds 74 29.4

aware only of any specific scheme in whichyou invested 140 58.0

fully aware 46 12.6

Total 250 100.0

Interpretation

According to the aforementioned graph, out of 250 respondents, 74 respondents only have a
basic understanding of mutual funds, 140 respondents only have a basic understanding of a
single scheme, and 46 respondents have a thorough understanding.

35
5. By in what type of scheme & SIP did you invested ?

Frequency Percent

Valid open-ended fund 80 31.4

close-ended fund 114 46.9

interval schemes 56 21.7

Total 250 100.0

Interpretation

According to the above graphic, 80 peple of the total 250 respondents invest in open-ended
funds, 114 people invest in closed-ended funds, and 56 people engage in interval schemes.
The vast majority of respondents invest in closed-ended funds.

36
6. Based on your investing objectives, what kind of schemes have you
invested in?

Frequency Percent

Valid growth schemes 65 26.4

income schemes 129 51.2

Balanced schemes 56 22.4

Total 250 100.0

Interpretation

According to the above figure, 65 of the total 250 respondents are invested in a growth plan,
129 are invested in an income scheme, and 56 are invested in a balanced scheme. The vast
majority of respondents invest in income schemes.

37
 7. How much of your income do you put into mutual funds?
Frequency Percent

Valid Upto 10% 49 19.2

Upto 25% 111 44.8

Upto 50% 64 26.0

Above 50% 26 10.0

Total 250 100.0

Interpretation

According to the above graph, out of a total of 250 respondents, 49 invest up to 10% of their
income, 111 invest up to 25% of their income, 64 invest up to 50% of their income, and 26 invest
more than 50% of their income.

38
8. What is the typical return on mutual funds, according to you??
Frequency Percent

Valid 10-20% 40 15.6

20-30% 54 21.2

30-40% 89 35.2

40-50% 47 18.4

more than 50% 24 9.6

Total 250 100.0

Interpretation

According to the above chart, out of a total of 250 respondents, 40 receive 10-20% of the
average return from mutual fund investments, 54 receive 20-30% of the average return, 89
receive 30-40% of the average return, 47 receive 40-50% of the average return, and 24 receive
more than 50% of the average return.

39
40
 Conclusion

- The majority of males participate in mutual funds, as do the majority of businessmen.

- Many individuals invest in mutual funds on a regular basis.

- Investors prefer systematic investing plans versus lump-sum investments.

- Most individuals learn about mutual funds on the internet since internet use is
increasing, and few people learn about mutual fund investments from sales agents.

- The majority of individuals are only aware of a certain mutual fund strategy.

- Fewer individuals participate in interval schemes, whereas the majority invest in income
schemes.

- The average person's investing time horizon is three years.

41
 Findings

The finding of the study provides some information that from the
total sample of 250 systematic investment plan (the better way to
invest in mutual fund).

- In a study on systematic investing plans, 177 respondents were male and 73 were female.
- The majority of investors in this initiative are businessmen, according to the research.
- In this project's survey, 57 respondents have an income of 5 lakh or more.
- The majority of the 250 respondents invest in mutual funds on a regular basis.
- The majority of the 250 respondents had a systematic investing strategy.
- The majority of individuals are aware of the internet as a source. 93 of the 250 respondents are
internet users.
- In this survey, only 47 of the 250 respondents are fully knowledgeable, while the remaining
respondents are just aware of a certain plan and have a limited understanding of mutual funds.
- A majority of 118 respondents (out of 250) invest in closed-ended funds.
- A majority of 118 respondents (out of 250) invest in closed-ended funds.
- Less than half of the 250 respondents invest in a balanced strategy.
- The majority of respondents invest up to 25% of their income.
- Of the total 250 respondents, 39 receive 10-20% of the average return from mutual fund
investments, while 24 receive more than 50% of the average return.
- 89 respondents have a three-year investing horizon.
- In this project's research, each component has a separate score, dimension, and mean.

42
 Bibliography

https://www.slideshare.net

https://www.scribd.com

www.moneycontrol.com

www.valuereserch.com

www.investopedia.com

www.moneycontrol.com

www.motilaloswal.com

www.sebi.gov.in/annualreport

www.nseindia.com

43
 Annexure

QUESTIONAIRE :

Name :

Gender : male/female

Email Id :

Occupation: salaried, business, student, housewife, retired

Income (per annum) : 1-2 lakhs, 2-3 lakhs, 3-4 lakhs, 4-5 lakhs, 5 lakhs and above

1. Do you invest in mutual funds on a regular basis?

 Yes
 No

2. Which method of mutual fund investment do you prefer?

 One-time payment
 Systematic investing plan

3. What are your major sources of information on mutual funds as an investing option?
 Television
 Internet
 Newspapers/journals
 Friends/family
 Sales reps

4. Where do you stand as a mutual fund investor?

 Limited awareness of mutual funds
 Only aware of any single plan in which you have invested

5. What sort of plan did you invest in using the structure?

 Interval schemes
 Open-ended funds
 Closed-ended funds

6. What kind of schemes have you invested in based on your investing objectives?
 Growth plans
 Income plans
 Balanced plans

44
7. What proportion of your earnings do you put into mutual funds?
• Upto 10%
• up to 25% • up to 50%
• Above 50%

8. What is the typical return on mutual funds, in your opinion?

• 10-20%
• 20-30%
• 30-40%
• 40-50%
• More than 50%

9. How do these elements influence your decision to invest your money?(strongly disagree, strongly
disagree, disagree, neutral, agree, strongly agree)
• Liquidity
• High Return
• Professional Management
• Diversification
• Brand Image
• Risk

10. What is the length of your investing horizon?

• 1 year
• 2 years
• 3 years
• 4 years
• more than 4 years

45