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“A Study On Systematic Investment Planning by employed people in

Ulhasnagar.”

(The Better Way to invest in mutual fund)

A Project Submitted to:

University of Mumbai for partial completion of the degree of

Bachelor of Commerce

Under the Faculty of Commerce (Accounting and Finance)

By

Muskan Mukesh Sukheja

TY.BAF-SEM VI

Roll No. 57

Under the Guidance of

Dr. Reema Panjwani

Smt. Chandibai Himathmal Mansukhani College Managed by Hyderabad (Sind)


National Collegiate Board Opp. Railway Station, Ulhasnagar-03. Dist. Thane
2023-2024
Acknowledgment

To list who all have helped me is difficult because they are so numerous and the depth
is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do
this project.

I would like to thank my Principal, Dr. Manju Lalwani Pathak, for providing the
necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Dr. REEMA PANJWANI for her
moral support and guidance.

I would also like to express my sincere gratitude towards my project Guide Dr.
Reema Panjwani, whose guidance and care made the project successful.

I would like to thank my College Library for having provided various reference
books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped
me in the completion of the project especially my Parents and Peers who supported
me throughout my project.
SMT.CHANDIBAI HIMATHMAL

MANSUKHANI COLLEGE

ULHASNAGAR- 421003

Certificate

This is to certify that Miss. Muskan Mukesh Sukheja worked and duly completed
her project work for the degree of Bachelor in Commerce (Accounting &Finance)
under the Faculty of Commerce and her project is entitled,

“A Study On Systematic Investment Planning by employed people in


Ulhasnagar.” under my supervision.

I, further certify that, the entire work has been done by the learner under my guidance
and that no part of it has been submitted previously for any Degree or Diploma of any
University.

It is her own work and facts reported by his personal findings and investigations.

Name and Signature of Guiding Teacher

Date of submission
Declaration by learner

I the undersigned Miss. Muskan Mukesh Sukheja by, declare that the work
embodied in this project work titled “A Study On Systematic Investment Planning
by employed people in Ulhasnagar.” forms my own contribution to the research
work carried out under the guidance of Dr. Reema Panjwani a result of my own
research work and has not been previously submitted to any other University for any
other Degree/Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly
indicated and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Name and signature of guiding teacher Name and Signature of the learner

Dr. Reema Panjwani. Miss Muskan Mukesh Sukheja


CHAPTER 1 : INTRODUCTION
1.1 INTRODUCTION TO INVESTMENTS

Investment is crucial to economic growth. Individual income grew as a result of


saving, as did inflation rates. Deposits with banks and non-banking financial
institutions, investments in stocks, mutual funds, equity-oriented schemes, and so on,
modest savings, life insurance, precious metals such as gold and silver, and so on, as
well as provident funds and pension funds, are all examples of financial savings.
Investment preferences change from person to person since everyone invests
differently. Individual investing conduct is influenced by his or her surroundings.
With the expectation of earning .Substantial returns over time and at a certain level of
risk.

Each employee has a unique mindset towards investing in a certain investment


channel. The goal of this study piece is to look at how workers invest in order to
maximise predicted utility based on their future returns predictions. Investors must
also have a clear vision, insight, patience, and commitment. Investor investing
behaviour is differentiated by factors such as socioeconomic background, degree of
education, age, race, and gender. Making investment decisions is the most difficult for
investors. While constructing their investment portfolio, investors consider their
financial Goals, risk tolerance level, and other constraints. Individual need, rate of
return, and risk preference would impact respondents’ investment decision, and the
degree of risk and return varies for different investment channels.

The purpose of investing is to multiply money at varied rates depending on the length
of the investment. A strong understanding of fundamental concepts and accessible
choices will aid the investor in preparing for best returns while reducing risk. This
study supports in the examination of employees’ saving behaviours and investment
inclinations towards various products based on demographic characteristics.
Managing expenses requires receiving acceptable returns on every rupee spent as well
as making sound decisions on payment methods such as cash, cheque ,credits card or
equivalent monthly instalments (EMIs).Because of the limited and fixed flow of
money, a salaried person’s financial planning is critical . A person must be proactive
in taking the required steps to obtain total financial independence. It is critical to
understand the savings and spending trends before making an investment. A person
must make up the difference by spending carefully on consumption and conserving.A
steady flow of money is one of the key advantages of a paid individual. It may be
used as a tool for systematic investment to achieve financial goals. Another advantage
for salaried people is the risk coverage given by their employers, which may include
life insurance and health insurance.

1.2 INTRODUCTION TO SYSTEMATIC INVESTMENT PLAN

A systematic investment plan (SIP) is good tool that retail investors can utilize to
optimize their investment strategy. SIP is nothing but a simple method of investing a
fixed sum of money in a specific investment scheme. On a regular basis, for a pre-
determined period of time. A recurring deposit with the post office or a recurring
deposit with a bank also a SIP. Systematic investment plan was already famous and
proven in mutual fund context but now SIP has also come directly into equity stocks
which is essentially individual stocks, equity SIP is anew facility through which you
can buy a script for a regular interval over a period of time for specified amount or for
a specified quantity. Investing in mutual fund is not everybody’s cup of tea. Being
dependent on factors such as a fluctuating stock market and risking your hard-earned
money for a measly profit does not really help. If any person is disciplined investor
however, and is interested in mutual funds, then the equity systematic investment
plan (SIP) is an great option.
SIP requires an person to invest a particular amount in a specific mutual fund scheme.
In comparison, & functions much like a recurring deposit. An person can plan a
savings scheme for himself and commit a particular sum of money each month on a
pre-fixed date to the scheme. A person can begin with as low as Rs 500 in ELSS
(equity linked saving schemes) schemes and move on to Rs 1000 a month for other
diversified schemes. SIP follows a simple mantra-buy when high and sell when low .
This is a simple way to win in the stock markets.

Geojit BNP Paribas recently launched SIP for stock investment where in investors
with a regular monthly income can invest their monthly savings in stocks of their
choice or a basket of stocks. The service is a system driven and once the process is
initiated, the investor can enjoy the convenience of investing regularly into the
selected stocks in a seamless manner.
Geojit BNP Paribas provides this service on the internet, which makes a easy for
investors to plan their savings and investments at regular intervals.

1.3CONCEPT OF SYSTEMATIC INVESTMENT PLAN

A systematic investment plan (SIP) is a vehicle offered by mutual funds to help


investors save regularly. It is just like a recurring deposit with the post office or bank
where you put in a small amount every month. The difference here is that the amount
is invested in a mutual Fund.
Systematic investment plan (SIP) is a method of investing in mutual funds wherein an
Investor chooses a mutual fund scheme and invests the fixed amount his choice at
fixed intervals

SIP mainly helps us to get addicted to an investment principle


.
Income – savings = expenditure, instead of following the principle of
Income – expenditure =savings.

SIP can be used in any type of mutual fund, equity or fixed income. This strategy is
best used in an equity fund where an investor can capture the volatility in the equity
markets to reduce the cost of investment. The NAV of any fund is determined by the
market price of the stocks the fund has invested in. When an investor invests a fixed
sum every month or quarter he gets more units of the fund when the markets are down
and NAV is low than when the markets are up and the NAV is high. By investing
across time horizons and market cycles, investors stand a better chance of lowering
their investment cost.

SIP also helps investors to overcome the problem of ‘when to invest in the equity.
Markets as irrespective of the state of the market an investor is always invested. SIP
takes away the decision-making and converts it into a mechanized one. The lowering
of risk, by entering at different time periods, however has the disadvantage of
“averaging” out returns.

A very Important aspect to be kept in mind is the entry and exit load charged by all
mutual funds. In a normal investment most funds either charge entry load or exit load.
But in a SIP along with an entry load charged for each installment, an exit load is
charged if the program is withdrawn before a specified period. This period could vary
from six months to two years. This double whammy will reduce the returns in the
short term. This makes SIP an inflexible investment program and expensive if
withdrawn prematurely due to unforeseen emergencies.

Finally, when considering a SIP, investors should note that it does not assure a return
and continue investing without interruption as missing a few installments could lead
to termination of the SIP. Since the time equity markets have been engulfed by
volatility, the most frequently heard advice is that best way to invest in equities is
“invest via the systematic investment plan route for long-term.” When an investor
chooses to invest in mutual funds via an SIP, he makes investments (usually) in
smaller denominations at regular intervals of time rather than making a single lump
sum investment. By doing so investor benefits from the investing principle known as
Rupee Cost Averaging. It is just like a recurring deposit with the post office or bank
where you put in a small amount every month. The difference here is that the amount
is invested in a mutual fund.

SIP allows a person to invest a fixed amount regularly, so when funds NAV is more
you get less units and when funds NAV is higher you get less units, so over a longer
time frame, SIP will lower the average purchase cost of an investment.
Another Benefit of investing in equity via SIP is you benefit from “Power of
Compounding”
When the investor extend the investment period, he can earn profit on his current
profit, and accumulate more wealth. This reiterates the fact that investing fresh capital
at periodic intervals raises the accumulated investment.
The minimum amount to be invested can be as small as 100 and the frequency of
investment is usually monthly or quarterly.
Equity SIP is a new facility offered through many Companies like ICICI DIRECT
using which a person can place buy orders for a prespecified amount or for a
prespecified quantity in scrips of choice at regular intervals over a period of time as
selected . For instance, a person can select an Equity SIP for a period of say 6 months
to invest Rs. 2000 per month other permitted frequency in shares of BHEL or
alternatively they can choose to buy 10 shares of BHEL every month other permitted
frequency through Equity SIP.

Just like banks and Post office offers recurring deposit schemes, mutual funds offer an
SIP option. Investors opting for an SIP option commit investing a pre-specified sum
of money at regular intervals (generally every month) in a particular mutual fund
scheme. Each periodic investment entitles investors to receive units of that mutual
fund scheme, which is subject to its NAV prevailing at that time.

1.4 WORKING OF SIP (SYSTEMATIC INVESTMENT PLAN)

For example to understand how an SIP works. Suppose ‘X’ decides to invest in a
mutual fund through SIP. He commits making a monthly investment of Rs 1000 for a
period of twelve months (starting 1st January 2006) in a fund named “ABC”. The
payment can be done by issuing twelve post-dated cheques of Rs 1000 each or
through ECS facility

DATE MONTHLY NAV NUMBER


INVESTMENT (B) OF UNITS
(A) (A)/(B)
1- Jan Rs.1000 46.29 21.60
1- Feb Rs.1000 48.08 20.80
1- Mar Rs.1000 52.78 18.95
1- Apr Rs.1000 56.36 17.74
1- May Rs.1000 58.42 17.11
1- Jun Rs.1000 56.42 17.72
1- Jul Rs.1000 62.14 16.09
1- Aug Rs.1000 67.58 14.80
1- Sep Rs.1000 71.7 13.95
1- Oct Rs.1000 76.19 13.13
1- Nov Rs.1000 83.97 11.91
1- Dec Rs.1000 89.92 11.12

1.4.1 BREIF SUMMARY

Monthly Investment: Rs. 1000


Period of investment: 12 months (1st Jan 2006 to 1st Dec 2006)
Total amount invested: Rs. 12.000
Total number of units credited to ‘X’: 194.925
Average cost/unit: Rs 61.5621

Note: Entry and exit loads are applicable while investing through SIP option also.
However, in this example, load has not been taken into consideration for the purpose
of simplification.

1.4.2 Benefits to ‘X’


Convenience and affordability because of an easy payment method helps X to develop
the habit of disciplined investing as he/she is compelled to fulfill his/her commitment
of making a fixed payment every month.

1.4.3 RUPEE COST AVERAGE BENEFITS


By investing through the SIP route, ‘X’ receives 194.925 units at an average cost of
Rs. 61.5621. However, had ‘X’ invested the whole of Rs. 12000 at one go, he would
have received a different number of units. Suppose ‘X’ had invested Rs. 12000 on:

1st Jan 2006-He would have received 259.24 units


1st Jul 2006-He would have received 193.11 units
1st Dec 2006-He would have received 133.45 units

Since, it is not so simple for anybody to perfectly time the market; it makes a more
sensible approach to invest through SIP option (for long-term, say 3 to 5 years). It
actually makes the volatility in the stock markets work for investors. This example
helps us to understand how SIP allows ‘X’ to take benefit of all the highs and lows of
the market during this twelve months’ time period.

1.5. FEATURES OF SIP

1. Affordable to small investors

It is affordable to pay a small amount regularly than paying a large amount as a


whole. Moreover, many Asset Management Companies charge very less to no entry
loads for SIP when compared to other one time investments.

2. Low market risk through Rupee Cost Averaging

This is the best feature in this policy. Success in stock markets depends on pure
timing. Highest profits can be gained when an investor invest in the right stocks at the
right time i.e. when the markets are on a high. The problem here is we can’t foresee
this timing every time.
This problem is eliminated through Rupee Cost Averaging.

To understand this lets take an example


Am investor started investing Rs 1000 for 3 months. In the first month, the markets
are on a high, then price per share(NAV) will be high(say Rs 25). So less shares, in
this case, 1000/25-40.

In the second month, markets went down, then price per share dips (say Rs 20).So
more shares, here 1000/20-50.

In the third month, lets say NAV is Rs 10. Then an investor gets 1000/10-100 shares.
So on an average, investor paid Rs 18.3 per share(25+20+10/3). Since he is buying
small amounts continuously, his investment will average out over a period of time. So
the risk will be less no matter how the stock markets are.

3. Compounding effect

It means the early an investor invest the he better gain. Let’s say an investor planned
for SIP for 10 years investing Rs 1000 monthly. He stopped after 10years. Then his
friend invested the same amount for 20 years. But due to compound effect, at the end
of 20 years, he will get higher outcome than his friend

4. Mode of payment

There are two options here:


1.Through Electronic Clearance Service(ECS)Here the mutual fund will debit certain
amount from your account as per your instructions.

2.Postdated cheques You can also give postdated cheques. Since they are dated ahead,
they can only be cashed on the given date. Note that all the mutual fund schemes do
not offer SIP. Liquid funds, cash funds and floating rate debt funds belong to this
category. All types of equity funds, debt funds and balanced funds offer SIP.
Systematic Investment Plan is very useful for beginners as it is risk free and
independent of markets. You also get better returns by investing regular fixed
investments.
1.6 BENEFITS OF SIP

 Investments are consistent and steady.


 Power of Compounding: More the length of investment, more the
earnings(early bird advantage).
 Power of Rupee Cost Averaging: Market’s volatility shall work wonders for an
investor.
 It is an entirely mechanized process and involves no complications.
 It enables to overcome spending and encourages savings, thereby securing
future.
 It will not cause strain on one’s budget as investment amount can be so less
than one does not realize its being withheld.

1.6.1 POWER OF RUPEE COST AVERAGING:

Markets conditions are never steady. They move up, down or stay flat. If one wants to
take advantage of that, one invests a fixed rupee amount at certain regular intervals
and thus benefits from market volatility. This is illustrated very clearly in the picture
below.

Invest Regularly - Fights Market Volatility


Every investor dreams of purchasing stocks at a low price and selling it at a higher
price. But, how does one know whether any given time is the right time to buy or sell?
Many retail investors try to judge the market movements and end up losing their
monies in the long term. A more successful strategy is 'Rupee Cost Averaging wherein
you invest a fixed amount regularly. Thus you purchase more when the prices are low
and purchase less when the prices are high. SIP investments take advantage of this
strategy

In the long term, the SIP investor gains as his investments are unaffected by market
volatility

1.6.2 POWER OF COMPOUNDING:

 One cannot afford to ignore Inflation as well as Time value of money


 With the help of the examples, a person understand the worth of investing
early and regularly and to stay invested over a long period of time.
 Helps in Compounding Your Wealth
 Getting rich is simpler than you think, here’s a simple formula to get rich:
Start Early + Invest Regularly = Create Wealth
Example 1. Returns are assumed @10% p.a .

Mr x. Mr. Y
 Age – 25 years  Age – 25 years

 Start date – Today  Start date – 40 age

 Invest – 5 years  Invest- 20 years

 Amount – Rs 10000 p.a  Amount- 10000 p.a

 Redemption – on retirement (age60)  Redemption – on retirement


( age60)

1.7 WHY SYSTEMATIC INVESTMENT PLAN?

SIP refers to systematic investment plan which is a mode of investment in equity in a


consistent way. Timing the market is not easy; hence a systematic investment plan
works as the best vehicle to ride through the market volatilities.
For instance- Rs 5000 saved and invested every month for a period of 20 years would
grow to Rs 30 lakhs at a conservative rate of 8% whereas a steady return of 15%
through SIP can grow upto 76 lakhs. SIP is an ideal way for retail investors to benefit
from power of compounding and create wealth long term.

SIP best works to achieve your medium and long term goals ; it may be building
corpus for Child’s education and child’s marriage, planning for retirement, planning
for home, buying a Car etc. all the goals can’t be achieved from monthly earnings
alone, one needs to build corpus over a period of time. So the best way to realize that
is systematic investment plan. Small amounts saved and invested every month over a
period of time can help create a large corpus. In a rising market the amount invested
will fetch lesser units while in a falling market the same amount will get more units
thereby providing the investor a low average cost per unit. Consequently in prevents
the investor from trying to time the market. The point we want to drive home is that
no matter the state of market, stick with SIP.

SIPs tend to underperform in a consistently rising market since the basic principle of a
SIP is cost averaging. If markets are consistently rising, you would end up investing at
higher markets and get lower number of units. So SIPs lose their edge if markets are
not volatile and there are no ups and downs since averaging concept will not work. So
in nutshell, you don’t Have to commit big amount in one go but small amount each
month will just be perfect. Don’t worry about stopping and starting of SIP in rising or
falling markets as this defeats purpose of SIP.
It Is important to understand that indian capital market is one of the most attractive in
terms Of risk adjusted return in the world. Sensex has yielded an average compound
annual return of 18-20 per cent over the last thirty years. To capture these attractive
returns from the market, one should start investing early in his/her career. SIP is a
good tool to go about Investing a small amounts right from the beginning and reaping
the reward at the end of your career. Young people usually don’t take interest in long
term investments and tend to look for short term gains. This often leads them to
riskier investments and if the investments fail then they usually lose faith in the very
concept of investments.
Starting early + investment regularly = wealth creation.
Start Early, Be Consistent, Be Patient-Reap rich Dividends in long run.For instance,
have a close look at returns generated by few equity schemes through SIPs over a 10
year period.

Sr.No EQUITY SCHEMES 10 YEAR SIP


RETURN (10%)
1. Reliance Growth 34.34
2. Magnum Contra 31.08
3. HDFC Equity Fund 30.97
4. HDFC TOP 200 30.64
5. DSBPR Equity 29.73
% Annualized Returns as on March 17, 2011

Art of compounding:
Normal Compounding Value of 1 lakh INR invested every year for 10 years (at 10%
annual returns): 17.53 lakh.

Super Compounding: if investments of 1 lakh INR increases by 10% every year as


well: 25.94 lakh
Benefits of Compounding: Investing Rs 5,000 every month for 20 years will grow

@8%-Rs 29,64,736
@10% Rs 38,28,485
@12% Rs 49,95,740
@15%-Rs 75,79,775
@18%-Rs 1,17.17,436
@20% Rs 1,58,07,397

1.8. WHEN TO INVEST IN SIP?


SIP investment can be started anytime ensuring minimum risk with the correct
suitable Scheme plan for the investor. It is very important for the investor to choose
the scheme which suits his long-term goals well. Hence, there is no suitable time
frame within which an Investor should start a SIP investment plan, the sooner the
better.

1.9. TYPES OF SYSTEMATIC INVESTMENT PLAN

A. Fixed Amount SIP:


 Involves investing a predetermined fixed amount at regular intervals, typically
monthly.
 Offers consistency and helps in budgeting as the investor commits to a fixed
investment amount.

B. Flexible Amount SIP:


 Allows investors to vary their investment amount based on their financial
situation.
 Provides flexibility in adapting to changing income levels and expenses.

C. Top-Up SIP:
 Permits investors to increase their SIP amount periodically.
 Useful for investors expecting a rise in income or wanting to accelerate their
investment growth.

D. Perpetual SIP:
 Continues indefinitely until the investor decides to stop or modify it.
 Suitable for those who wish to maintain a continuous investment approach
without having to renew the SIP periodically.

E. Trigger SIP:
 Activated based on predetermined market conditions or fund performance.
 Can be triggered by market events, NAV levels, or specific dates, adding an
element of automation.

F. Flexible Interval SIP:


 Allows investors to choose intervals other than the standard monthly option.
 Suitable for those with irregular income or specific financial goals that align
with different timeframes.

G. Capital Appreciation SIP:


 Focused on generating capital appreciation rather than regular income.
 Suited for investors with a higher risk tolerance aiming for long-term wealth
creation.

H. Dividend SIP:
 Investments are directed towards funds that distribute dividends.
 Investors receive periodic payouts, providing a regular income stream.

I. Multiple SIPs:
 Investors can have multiple SIPs running simultaneously in different funds or
with different investment goals.
 Allows diversification and customization based on varied financial objectives.

J. Pause SIP:
 Enables investors to temporarily halt their SIPs without completely stopping
them.
 Useful during financial emergencies or when reassessing investment
strategies.

K. Step-Up SIP:
 Involves an increasing investment amount at predetermined intervals.
 Suited for investors looking to enhance their commitment to long-term
financial goals.
L. Long-Term SIP:
 Geared towards investors with a horizon of 10 years or more.
 Encourages patience and disciplined investing for substantial wealth creation.

1.10 DISADVANTAGES OF SIP

1. No downside protection

Investors should remember that despite of all the advantages that SIPs have, they are
subject to market risks and do not protect investors from making a loss or ensure them
profits in falling markets.

2. Portfolio risk remains

SIPs are also subject to security risk. Mutual fund schemes investing in portfolios that
turns out to generate negative returns are bound to make investors incur a loss even if
the investment is made through SIPs.

3. Ideal profile of investors

Investors opting to invest through an SIP option should: have a long-term investment
horizon, be willing to invest regularly, keep patience; and who cannot invest enough
amount at one go before opting for SIPs. SIP option available for all types of funds.
This arises the need for investors to do a Title homework in order to get the maximum
returns out of their investments.
4. Defining the investment objective

Investors should invest with a clear objective in their mind. It helps to figure out and
indicative time period for which the investments would have to be made.

5. Determining the investment surpluses

Investors should estimate the amount that they can afford to invest on a periodical
basis. Investors should be conservative while making this estimate as an over
estimated periodical investment amount may turn out to be a burden for investors.

6. Selecting an appropriate scheme category

Before investing investors should take risk-return profile of a scheme into


consideration. Investors should choose a scheme that suits their investment objective,
For example: equity funds are recommended to investors who have a high risk taking
capacity, debt funds for risk averse investors and balanced funds for investors with
moderate risk taking capacity.

7. Ignore the market savings

In the short term, sentiments drive the movements in the market. Therefore, investors
should not let a short term correction or fall in the markets to bother them. As long as
the long term prospects are intact, the investments are safe.

8. Periodical review of investments

After selecting an appropriate scheme and making investment in it, investors should
continuously monitor the performance of similar schemes to the one in which the
Investment is done. This enables investors to compare the performance of their
scheme with corresponding schemes and make necessary adjustments, if required.
1.11. TIME FRAME FOR MUTUAL FUND SIP

Theoretically doing a mutual fund SIP for long term will work for investors. But for
practical reasons we need to commit a mutual fund SIP for short term. That is we need
to break that long term into many 6 months or 1 year periods and commit your mutual
fund SIP for first 6 month or 1 year. Then at the end of 6 month or 1 year renew your
mutual fund SIP for another 6 month or 1 year. You need to renew like this till you
complete your predetermined long term period.

1.12.CONTRIBUTION TOWARDS MUTUAL FUND SIP


CHANGES

-At the beginning of a career a person will be able to commit mutual fund SIP for
Small sum of amount. As he progresses in his career. He or she will be able to
increase his contribution towards mutual fund SIP.

-Similarly, when someone reaches a stage where he need to spend more on kid‟s
Higher education, daughter’s wedding, buying a house or meeting a major financial
commitment, it is difficult for him to continue the same amount of mutual fund SIP
contribution.

-So whenever you renew your mutual fund SIP at the end of 6 month or 1 year, you
Can look at your cash flow position and based on that you can renew the mutual fund
SIP for the increased amount or the same amount or the reduced amount.
1.13 COMPARATIVE ANALYSIS OF SYSTEMATIC
INVESTMENT PLAN AND LUMPSUM INVESTMENT

Mutual funds over the years have gained immensely in their popularity. Apart from
the many advantages that investing in mutual funds provide like diversification,
professional Management, the ease of investments process has proved to be a major
enabling factor. However, with the introduction of innovative products, the world of
mutual funds nowadays has a lot to offer to its investors. With the introduction of
diverse options, investors needs to choose a mutual fund that meets his risk
acceptance and his risk capacity levels and has similar investment objectives as the
investor.

Most importantly, mutual fund provide risk diversification: diversification of a


portfolio is amongst the primary tenets of portfolio structuring, and a necessary one to
reduce the level of risk assumed by the portfolio holder. Most of us are not necessarily
well qualified to apply the theories of portfolio structuring to our holdings and hence
would be better off leaving that to a professional. Mutual funds represent one such
option.

Lastly, evaluate past performance, look for stability and although past performance so
no guarantee of future performance, it is a useful way to assess how well or badly a
fund has performed in comparison to its stated objectives and peer group. A good way
to do this would be to identify the five best performing funds (within your selected
investment objectives) Over various periods, say 3 months, 6 months, one year, two
years and three years. Shortlist funds that appear in the top 5 in each of these time
horizons as they would have thus demonstrated their ability to be not only good but
also, consistent performers.

SIP and lump sum are the two techniques to invest in mutual funds. Any investor can
choose one out of them and can invest their money into mutual funds. SIP is
systematic investment plan which is very helpful to salaried and middle class man.
They can invest their saving into systematic investment plan and can collect huge
funds for future.
SIP is paid in monthly or quarterly as per the scheme. But lump sum is paid only one
time and the whole transactions is based on this investing money. Opting SIP, an
investor can invest their saving into it and can safe his money doing that. SIP is good
because if it seems that market will goes down in few days so an investor can safely
withdraw his money and can safe money

1.14. GOOD REASONS TO INVEST IN SIPS

1. Small investment amount


With SIPs, most mutual fund schemes allow you to start investing with as little as Rs
500 per month this investments amount is considerably lower than the most popular
Investment option.

2. Adjust the SIP amount the way you want


SIPs are highly flexible. For instance, if you start a Rs 1000 SIP in a mutual fund
Scheme of your choice, there is no necessity to keep on investing only Rs 1000 If
your savings increase in the future, you have the option to increase the SIP amount or
even start a new SIP in the same mutual fund scheme or any other scheme of your
choice.

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
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 next important reason why SIP is best is its ability to make you a disciplined
investor. Most investors start investing but fail when it comes to investing regularly.
Regular investment are necessary to get closer to your financial objectives. The very
nature of SIPs is as such, that it adds more discipline to your investment journey. An
amount fixed by you automatically gets invested in the scheme of your choice,
eliminating the need for you to make the monthly investments yourself

5. Timing the market


It is almost impossible to time the markets on a consistent basis accurately. But SIPs
Don’t require you to time the markets in any way. You keep on investing a fixed
Amount month after month irrespective of the market conditions. You will get more
fund units if the market is down and fewer units if the markets are high.

6. Reduces the average cost of mutual funds units


Continuing from the point above, SIPs also help in reducing the average cost at which
you buy the mutual fund units. The NAV of the fund is low when the markets are
falling and high when the markets outperform. So, in the long , when you keep
Investing a fixed amount through SIP, the average cost of purchasing the units tend to
be on the lower side as compared to making a lump sum investment when the markets
are running high.

7. Power of compounding
If you select the growth option at the time of starting your SIP, the returns that your
Investment generates would then be added again to your investment amount. This
results in the compounding effect, which could generate excellent returns in the long
run .So, if you have long-term financial goals, starting a SIP in any scheme of your
choice and selecting the growth option can prove rewarding.

8. No emotional investing
It can be challenging for an investor not to get swayed by the ups and downs of the
market. The volatility of the market often encourages people to make emotional
Investment decisions that generally fail to deliver expected results. But the working of
SIPs protects the investors from making such mistakes. All you need to do is to keep
investing a fixed amount every month without worrying about the short-term market
volatility.

9. Complete transparency
The mutual fund industry has grown by leaps and bounds in India in the last few
Years. To protect the interest of the investors, AMFI and SEBI have introduced
Several stringent measures that every mutual fund scheme needs to Follow. This is
made the mutual fund industry transparent and safe for investors who are just starting
their investment journey through SIPs.

1.15. BEST SYSTEMATIC INVESTMENT PLANS IN INDIA

1. Birla Sun Life Equity Fund


Birla Sun Life Equity Fund is an equity-oriented mutual fund offered by
Aditya Birla Sun Life Mutual Fund. It aims to achieve long-term capital
appreciation by investing primarily in a diversified portfolio of equity and
equity-related securities. The fund follows a bottom-up approach to stock
selection, focusing on companies with strong growth potential.

2. DSP BR Equity Fund


DSP BlackRock Equity Fund is an equity mutual fund offered by DSP
Investment Managers. It aims to provide long-term capital appreciation by
primarily investing in a diversified portfolio of equity and equity-related
securities. However, it doesn’t provide fixed interest rates as it’s an equity
fund subject to market fluctuations.

3. Franklin India Blue Chip Equity Fund


Franklin India Blue chip Fund is an equity mutual fund managed by Franklin
Templeton Mutual Fund. It focuses on investing in large-cap stocks with a
track record of stable growth. As an equity fund, it doesn’t offer fixed interest
rates and is subject to market fluctuations.

4. HDFC Equity Fund


HDFC Equity Fund is an equity mutual fund managed by HDFC Asset
Management Company. It aims for long-term capital appreciation by investing
primarily in diversified equity and equity-related securities. As with other
equity funds, it doesn’t provide fixed interest rates and its returns are subject
to market performance.

5. ICICI Prudential Growth Fund


ICICI Prudential Growth Fund is an equity mutual fund managed by ICICI
Prudential Asset Management Company. It seeks long-term capital
appreciation by investing predominantly in equity and equity-related
instruments. Similar to other equity funds, it doesn’t offer fixed interest rates
and its returns are influenced by market movements.

6. Reliance Growth Fund


Reliance Growth Fund, managed by Reliance Nippon Life Asset Management,
aims for long-term capital appreciation by investing primarily in equity and
equity-related securities. It focuses on companies with high growth potential
across market capitalizations. As an equity fund, it doesn’t provide fixed
interest rates and is subject to market fluctuations.

7. Tata Pure Equity Fund


Tata Pure Equity Fund, managed by Tata Asset Management Limited, focuses
on long-term capital appreciation by investing primarily in equity and equity-
related instruments. It follows a pure equity investment strategy, aiming for
growth across market sectors. Like other equity funds, it doesn't offer fixed
interest rates and its performance is subject to market dynamics.

8. Reliance Vision Fund


Reliance Vision Fund, managed by Reliance Nippon Life Asset Management,
seeks long-term capital appreciation by investing primarily in equity and
equity-related securities. It focuses on companies with high growth potential
across various sectors, aiming to achieve wealth creation for investors. As an
equity fund, it doesn’t offer fixed interest rates and its returns are influenced
by market fluctuations.

5.3 EQUITY SIP PROVIDER

Equity brokerages such as ICICI Direct or HDFC Securities offer equity SIPs
of varying amounts, frequencies and tenure. The latest to introduce this
concept is Reliance Securities, which launched the Regular Stock Purchase
(RSP) plan. Other firms offering similar products include:

1. RELIANCE SECURITIES

2. GEOJIT BNP PARIB AS FINANCIAL SERVICES

3. KOTAK SECURITIES

4. ICICI SECURITIES

5. MOTILAL OSWAL FINANCIAL SERVICES

6. HDFC SECURITIES
o HDFC Securities provides

1.16.6.1 DO IT YOURSELF SYSTEMATIC INVESTMENT PLAN


(DIYSIP)
DIYSIP is an unique product offerings through HDFC Securities which helps
to invest a prespecified quantity in stocks/ETFs of investors choice at regular
intervals over a period of time as selected by him. DIYSIP eliminates the need
for us to actively track the market and helps us to use market volatility to build
our portfolio.

1.16.6.2 BENEFITS OF D.I.Y. SIP:

 The power to take your own decisions and be your own fund manager.
 Systematic & disciplined manner of investing in equities.
 No burden of heavy investments at a single time.
 No lock-in period ensures you can sell, pause anytime you wish to.
 HDFC Securities’ expert research team at your service to help you
select and build a diversified portfolio.
 Varied investment options as per your needs and risk appetite

7. RELIANCE SECURITIES
STP act as an investment catalyst, aiming to derive the combined benefits of stability
of debt along with power of equity at the same time.

STP involves the process of investing lump sum in a liquid/debt scheme which would
give fairly stable returns and then transferring a fixed amount to an equity scheme in a
regular fashion. Once the equity allocation is determined as per the total portfolio
consideration, equity investment can be allocated in a disciplined manner through
STP. This would enable the investor to achieve a buildup in their portfolio of equities.
With a low amount of risk along with relatively stable returns of debt in the interim
time period

Preamble to Reliance SMART STEP – An Enhanced Version of STP.


Reliance SMART STEP is a special product feature which works on a proprietary
scientific model, which adds intelligence to disciplined, long term and systematic
investment habit.

The scientific model aims to integrate the cyclical trend of equity markets in one
cycle, which also depicts the inter-relation of macro & micro economic factors. The
scientific model consolidates bull & bear phases in one cycle, which enables to
portray the current positioning of the market.

Thus, Reliance SMART STEP works on a simple but smart & attractive concept of
“INVEST MORE when the current stock market is positioned at lower levels,
INVEST LESS when current stock market is positioned at higher levels.

5.4 RISK FACTOR

Mutual Funds and securities investments are subject to market risks and there is no
assurance and no guarantee that the objective of the respective scheme will be
achieved. As with investments in any securities, the NAV of the units issued under the
Scheme can go up or down depending on the factors and forces affecting the
securities market. Past performance of the Sponsor/AMC/Mutual Fund is not
indicative of future performance of the Scheme. The names of the schemes do not in
any manner indicate either the quality of the Scheme, its future prospects or returns.
The Sponsor is not responsible or liable for any loss resulting from the operation of
the Scheme beyond their initial contribution of Rs. 1 lac towards the setting up of the
Mutual Fund and such other accretions and additions to the corpus. The NAV of the
Scheme may be affected, interlaid, by changes in the market conditions, interest rates,
trading volumes, settlement periods and transfer procedures. The Mutual Fund is not
assuring that it will make periodical dividend distributions, though it has every
intention of doing so.

1.18. SIP THROUGH APPS

To purchase any Mutual Funds unit from any AMC, an investor need to verify KYC
from any RTA only once. Although you can invest in any AMC up to
Rs.50000/AMC/Year by completing paperless eKYC (Aadhar OTP based KYC) from
any mutual fund house. (Updates: After the recent Supreme Court verdict on Aadhar,
OTP based eKYC for the opening of new Mutual Fund folios has temporarily been
discontinued by the Fund Houses. As per the latest updates, Government may grant
permission to Private Fintech firms to access the Aadhar Database for eKYC)

 myCAMS Mutual Fund App

myCAMS is a single gateway to invest in multiple Mutual Funds schemes.


The app facilitates faster, easier and smarter ways to transact in the direct
funds.
There are various features of myCAMS which include mobile PIN & Pattern
login, one view of MF portfolio, open new folios, purchase, redeem, switch,
set up SIP and more. It also helps in scheduling the transaction option which
allows investors to set up future Mutual Fund transactions.

 KFinKart- Investor Mutual Funds

The core objective of this app is to simplify the journey of the customer in
mutual funds. It is a one-touch login app that empowers you to invest across a
host of mutual funds and provides a new way of investing your money. It also
emphasizes on a single view of investments, manage profile, make decisions
and transact instantly without needing multiple apps offered by different fund
houses.

 Zerodha Coin

As per my opinion, Zerodha coin is one of the best apps to invest in direct
mutual funds. They offer investment services in over 3,000 commission-free
direct mutual funds across 34 fund houses. This can help in saving up to 1-
1.5% more per annum compared to regular mutual funds. With over 1,50,000
investors who have invested over 2500 Crores and collectively saved 30+
crores in commissions, Zerodha Coin has already built a big brand and
customer base. Key features of the app include: Search, filter, and Buy from
over 3,000 commission-free direct mutual funds across 34 AMC9s, a single
Capital gain statement, P&L visualizations, and Annualized (XIRR) and
absolute Returns, Mutual funds are held in Demat form, and thus easier to
pledge as collateral for Loan against securities.

 ETMONEY Mutual Fund App

ETMONEY was founded by a group of passionate Entrepreneurs, IITians and


designers with deep expertise in technology, mobile & financial services.
Associated with a big brand of Economic times, this Mutual Fund app is a
one-stop destination for all things investment which helps to track & manage
expenses using expense manager, Invest in Mutual Funds through SIP or
Lumpsum, Save tax with SIPs in ELSS mutual Funds, etc.

 Groww- Mutual Funds App

Groww app is one of the fastest-growing apps in the Indian mutual fund
industry. And the credit goes to its clean user-interface. This app helps in
investing in mutual funds free of cost and is pretty simple to use with
minimum paperwork and no hassles. All Mutual funds information are
available in just one investment app. Similar to the apps Listed above, Groww
app also allows everyone to invest in direct mutual funds with zero
commission and offers an additional saving up to 1.5%+ compared to regular
plans.

 List of a few other Mutual Fund Apps for Direct Investment:

• IPRU TOUCH by ICICI Prudential Mutual Fund

• INVESTAP by SBI Mutual Fund

• FinGo by Aditya Birla SunLife MF

• HDFC MFMobile app by HDFC MF

• EasyApp by Axis Mutual Fund

• Funds India Mobile App

 KTrack mobile app by Karvy


CHAPTER 2: RESEARCH METHODOLOGY
2.1 RESEARCH METHODOLOGY

2.1.1 INTRODUCTION
Books, report, journals, newspapers cases and appeals have been studied for the
purpose of getting in-depth knowledge for Equity plans.
Systematic Investment Plan (SIP) is a hassle-free method of investment that helps an
investor to achieve your financial goals by investing small sums of money on a
periodic basis. It allows investors to smartly invest in a Mutual Fund by making
smaller periodic investments (monthly or quarterly) in place of a heavy one-time
investment. It is a great alternative to long term commitments like PPF or Insurance
plans. Starting early and investing regularly is advisable to minimize the investment
amount needed to achieve your goals.
This research is conducted for the purpose of finding how many employed people in
Ulhasnagar Invest in Systematic investment plans. What perspective people consider
while investing. Reasons for investing in Systematic investment plan(SIP).
2.1.2 SELECTION OF THE PROBLEM
In this research the problem that many people face is the risk levels because of lack of
knowledge, awareness about the SIP plans . Therefore researcher have selected this
topic so that people who are unaware and thinks that SIP involves high levels of risk
to make them aware. Selecting the right problem for investment in systematic
investment plans (SIPs) involves considering various factors such as your financial
goals, risk tolerance, investment, and market conditions. Some common problems or
objectives investors may have include:

 Wealth accumulation for long-term goals like retirement or children’s education.


 Capital preservation with steady growth to beat inflation.
 Generating regular income post-retirement.

2.1.3 OBJECTIVES OF STUDY


 To study the awareness of investment towards SYSTEMATIC INVESTMENT
PLAN (SIP).
 To study which SIP investment plans are chosen by employed people in
Ulhasnagar.
 Various factors that affect the investment in systematic investment plan.

2.1.4 SCOPE OF STUDY


 The scope of the study is to analyze the different SIP companies to identify the
set of efficient company.
 This project will help existing/prospective investor to understand what the
various mode of investment in mutual fund are and why systematic investment
plan gives better returns than lump-sum. So that investors can do better use of
their hard earned money to earn more profit.

2.1.5 LIMITATIONS OF STUDY


 Research is limited to 100 respondents in Ulhasnagar.
 Selection of schemes for study is very difficult because lot of Varieties in
equity Schemes.
 Possibility of error in data collection because many respondent may have not
given actual answer of the questionnaire.
 Responses received may be inaccurate because of lack of knowledge .
 It may be hard for participants to recall information or to tell the truth about
controversial questions.

2.1.6 SAMPLE SIZE


 Sampling unit is ULHASNAGAR.
 Ulhasnagar is a Municipal Corporation city in district of Thane, Maharashtra.
The Ulhasnagar city is divided into 76 wards. The Ulhasnagar Municipal
Corporation has population of 506,098 of which 269,048 are males while
237,050 are females as per report released by Census India 2011.As per the
Census 2011, the literacy rate of Ulhasnagar is 87.5%. Thus Ulhasnagar has
higher literacy rate compared to 84.5% of Thane district. The male literacy
rate is 91.08% and the female literacy rate is 83.4% in Ulhasnagar.
 In this research the researcher has asked questions from the employed women
and men in Ulhasnagar with the help of questionnaire.
 The total respondents assumed are 100 respondents.

2.1.7 SOURCE OF DATA COLLECTION


 Primary data
Data used in research originally is obtained through the direct efforts
through surveys, interviews and direct observation and questionnaire.
Primary data is more costly obtain than secondary data, which is obtained
through published sources, but it is also more current and more relevant to
the research project.

 Structured questionnaire is used as research instrument and will shared to


100 people.
 Observation method will be used for collecting primary data. Observation
of market fluctuations and behaviour of investors will be used as a source
of collection of data
 Respondent characteristics that will be used in this analysis include name,
gender, age, occupation, investment options, etc.
 Questionnaire will be sent through different social media apps like
WhatsApp, Facebook etc

 SECONDARY DATA

Secondary data in this research will be collected from various links, websites,
books, journals, articles, etc. Secondary data analysis can save time that would
otherwise be spent collecting data and, analysts of social and economic change
consider secondary data essential, since it is impossible to conduct a new survey
that can adequately capture past changes or developments. However, secondary
data analysis can be less useful in marketing research, as data may be outdated or
inaccurate.

2.2 ADDITIONAL RESEARCH

SIP (Systematic Investment Plan) can vary depending on your specific area of
interest.
1. SIP FOR INVESTOR BEHAVIOR:

 Literature Review: Searched existing research on SIPs, investor psychology, and


financial decision-making [scholarly articles, financial journals].

 Data Collection:

 Primary Data: Questionnaires could explore factors influencing SIP setup,


investment amounts, and reasons for continuing or stopping SIPs.

 Secondary Data: Analyzed the data from financial institutions on SIP


investment trends, demographics of SIP users, and performance of SIPs
compared to lump sum investments.

 Data Analysis: The researcher used statistical tools to analyze survey data and
identify correlations between investor characteristics and SIP behavior. Analyzed
secondary data to identify trends and patterns in SIP usage.

CHAPTER 3 : REVIEW OF LITERATURE


A large number of studies on the growth and financial performance of
Mutual Fund have been carried out during the past, in the developed and
developing countries. Brief reviews of the following research works
reveal the wealth of contributions towards the performance evaluation of
Mutual Fund systematic investment plan.

1. LOUIS, KC AND LAKONISHOK,CC


 STUDY DONE IN YEAR 1999
 STUDY ON “AN EXPLORATORY INVESTIGATION OF
MUTUAL FUNDS INVESTMENT STYLES”
It was found that the Fund styles tend to cluster around a broad market
bench mark. When funds deviate from the benchmark they are more
likely to favour growth stock having good past performance parameters.
Further, it was said that there is some consistency in styles, although
funds with poor past performance often are more likely to change styles.
The purpose of this change is to try and improve their performance. Some
evidence suggests that growth funds have better style adjusted
performance than value funds. The results are not sensitive to style
identification procedure, but an approach based on fund on the portfolio
characteristics in order to perform better in predicting future fund returns.

2. SENTHIL. K AND MARUTHAMUTU. K


 STUDY DONE IN YEAR 2010
This study has made an attempt to understand financial behaviour of
mutual funds investors towards mutual fund investment. The study was
basically focused on the investor’s awareness and preferences on various
mutual fund’s schemes and what are the factors which influence them to
invest in mutual fund schemes and to know the level of satisfaction
obtained by them from the mutual fund it was done with the help of the
survey conducted in Dharmapuri. The authors conclude while make
investing decision the investors should seek advice from expert and
consultants including agents and distributor of mutual fund schemes. The
investors should compare the risks and expected yields after adjustment
of tax on various instrument while investment decision. To make
investors aware of mutual fund an attempt to be made by providing
information in question answer format which may help the investors in
taking in investment decisions.

3. RAMESH. M AND GEETHA .N


 STUDY DONE IN YEAR 2011
The study was to observe the perceptions and behaviour of the small
investors located the town of Chidambaram, Tamil Nadu, South India
towards the mutual fund, and also analyses the relationship between
motivating factors and reasons for making investment in mutual funds. In
this research they founded that many facts which would be inevitable for
mutual fund companies to alter or modify their present strategies in order
to sustain the existing pace, and the sustainability and acceleration of
growth pace of mutual fund investment depends how far the mutual fund
organization design, alter or modify their policies, schemes and market
strategies according to the perception of the Investors.

4. PAUL .T. (JULY 2012)


The researcher have observed Mutual funds have evolved over the years,
in keeping with the changes in the economic and financial systems, as
well as the legal environment of the country. New products have launched
according to the requirements and changes in the investors‟ perceptions
and expectations. Understanding the investors‟ expectations and meeting
those expectations are the key area of interest of marketing experts.

5. ANNAPOORNA. M.S AND PRADEEP K. GUPTA


 STUDY DONE IN YEAR 2013
The main aim of the study to evaluate the performance of the mutual fund
schemes which is ranked by 1 CRISIL is an Indian analytical company
and compare with these returns with the SBI company. By this research
done to fulfil the belief of huge number of investors. The results obtained
from the study clearly contempt that in most of the cases mutual fund
have failed to give the returns of SBI domestic term deposits. It was
concluded mutual funds as risky as compared to other investment
platform, the investors should make good investment decision while
investing.

6. JUWAIRIYA, P.P(2014)
The researcher says systematic investment plan is the best option planned
for small investors who wish to invest small amounts regularly to build
wealth over a long period of time.

7. HEMENDRA GUPTA
 STUDY DONE IN YEAR 2015
“A study on performance of Sensex and evaluation of Investing Lump
sum or Monthly regular Investment in equity on risk and returns for
Investors” this study focuses how investors making their investment
decisions while investing in systematic investment plan or in lump sum
and the research tries to estimate whether there any significant difference
in volatility and return while in systematic investment plan. They
concluded that investors who are investing in systematic investment plan
or doing monthly investment has not shown any huge difference in
returns neither in reducing risk, however they also conclude that investors
who are investing in SIP it will a better option compare to lumpsum
investment.

8. SHARMA .R
 STUDY DONE IN YEAR 2015
This study discover the investment objectives of selected Mutual fund
investors and to identify the types of mutual fund schemes preference by
elected mutual fund investors. The results presented that the main
objective behind to Invest in mutual fund is good return, safety and tax
benefit. The research also suggested that the growth schemes and
balanced schemes are most preferred in comparison to other schemes.
Male and female respondents do not significantly different across
investment experience.

9. SHARMA .S
 STUDY DONE IN YEAR 2015
This study have mentioned about the ELSS of mutual fund Equity
Linked Savings Scheme (ELSS) is a type of mutual fund, which invests
the corpus in equity and the equity related products. These schemes offer
tax rebates to the investors under specific provisions of the Indian income
Tax ELSS is open-ended; hence can be subscribed to and exited from at
any point of time.

10.AZZHEUROVA L, K.E. & HESSUMORA, E.A.


 STUDY DONE IN YEAR 2015
This research states management of regional investment projects is the
analysis and estimation of their efficiency. It influences the pace of
development, as well as solving regional socio-economic problems. The
paper substantiates the necessity to complement the evaluation algorithm
of regional investment projects with functional units of analysis of social,
innovative, environmental consequences of projects.

11.JOSEPH G., TELMA, M. & ROMEO. A. (FEB 2015)


The researcher have observed that Systematic Investment Plan (SIP) will
reduce risk when the market is volatile and SIP works more
advantageously only on bearish market whereas, Lump Sum gives high
returns in bullish market .From this study it can be concluded that in
order to get better results from SIP, invest for a minimum period of 5
Years is necessary.

12.PRABHAKARAN. (SEP 2015)


The researcher Says stock market is one of the economic indicators of
growth of country9s economic development. The bullish trend of stock
market attracts many equity investors in the recent past days. Though
many investors trade on their own, they require the experts help as
investment tips to trade. The investors risk taking ability is one of the
important think that must have to know by the fund manager to allocate
the investors fund accordingly.
13.SUBBALAKSHMI AND BALACHANDAR. R
 STUDY DONE IN YEAR 2017.
 STUDY ON “A STUDY ON INVESTOR’S ATTITUDE TOWARDS
MUTUAL FUNDS AS AN INVESTMENT OPTION”.
The authors conducted a primary research on 100 respondents in
Tamil Nadu and founded that many people have started investing
in mutual funds instead of the conventional investment options.
But still there are many people who unsure to invest in same due to
their lack of knowledge about the benefits.

14.Dr. B.S. HUNDAL. SAURABH GROVER


 PERCEPTUAL STUDY OF SYSTEMATIC INVESTMENT PLAN (SIP) A
CASE STUDY OF SERVICE CLASS.
 IN YEAR 2017
Systematic investment plan in a disciplined way of investing, where you
make regular investments according to set calendar you create.
Systematic investing is a time-texted discipline that makes & easy to
invest automatically. This paper is an attempt to study the perception of
service class people towards systematic investment plan. Factor analysis
have been used to study the same and found that service class have
positive attitude towards investment in these plans.

15.JOSEPH G., TELMA, M. & ROMES. A.


 STUDY IN YEAR 2018
The researcher have observed that Systematic Investment Plan (SIP) will
reduce risk when the market is volatile And SIP works more
advantageously on bearish market whereas, Lump sum gives high returns
in bullish market From this study it can be concluded that in order to get
better results from SIP, invest for a minimum period of 3 years is
necessary.

16.DHOND
 STUDY ON SCHEMES OF HDFC MUTUAL FUND”.
 IN YEAR 2018
The study’s goal is to investigate the various characteristics of select
HDFC mutual funds and to conduct a performance analysis of HDFC
Mutual Fund’s pick equity mutual funds. The researcher employs
secondary data. The study discovered that, while mutual funds are riskier,
if investors do their homework, they may get greater returns and so SIP in
mutual funds can become one of the greatest investing options for even
middle-class individuals.

17.MR. RENJITH RG AND DR. V. SACHITHANANTHAN


 “STUDY ON INVESTORS CHOISE OF SYSTEMATIC INVESTMENT
PLAN [SIP] IN MUTUAL FUND”
 STUDY DONE IN YEAR 2020
The study’s goal was to discover the elements that impact an investor’s decision
to invest in a Mutual fund systematic investment plan scheme in Tamil Nadu, to
research individual investors’ investment preferences using demographic data,
and to analyze mutual fund investors’ investment objectives. The Researcher
collected primary data. The survey discovered that customers place a higher
value on picking up a Mutual fund plan after a lengthy period of time and
selecting a systematic investment plan based on plan futures and schemes, as
well as investing a small amount. It should be emphasized that the type of the
fund, Social factor, social element, economic element, performance element,
advertisement element, and risk tolerance element are all elements that influence
a customer’s decision to invest in a mutual fund systematic investment plan in
the future.

18.ALPESH GAJERA ET.AL.


 STUDY DONE IN YEAR 2020
The research was undertaken to compare the risk and return of the investment in
mutual fund through SIP or Lump sum investment. The small investors also
have more doubts regarding whether where to invest their funds in lumpsum or
sip. The analysis given a very clear cut that lumpsum investment is better than
compared to sip investment as far risk and return conditions. The lumpsum
investment is always controversial point and also of great attraction for
individual or retail investors. Commonly every investor makes more conditions
while investing their funds such as flexibility, secure of funds and liquidity etc.

19. AUTHORS BALIYAN ET AL. .ASSESSED INDIAN


ENDOWMENT FUND PRESENTATIONS.
 STUDY ON HDFC MUTUAL FUND, RELIANCE MUTUAL.
 STUDY DONE IN YEAR 2022
Fund, ICICI Prudential Fund, Birla Sun Life Fund, UTI Fund, and SBI Fund, a
quick survey was done. Obligation Funds are also referred to as value-based
funds and have a similar concept. Bandi (2022) – This study looks at the
opinions and choices made by experts and advisors on mutual fund micro-SIP
investments. This covers investment planning, security picking, and micro-SIP
proceeds, financial considerations, and financial improvement for the mutual
fund industry. It also shows that progress in the mutual fund area continues
exceptionally ahead of the banking areas.
20.BANERJEE ET AL (2022)
This paper looks at various factors that influence people’s investment
decisions. Current investors can be found to have a profitable and
knowledgeable base. Young investors are risk takers. Open plans are more
popular than closed plans. Not only the fund, but also the recognition of the
organization are important factors in investment decisions. Investments close
to the market with regular fees also affect investment.

Public sector banks’ provisions and reserves are in better shape than private
sector banks’. People’s preferences for investments are influenced by a
number of things. A problem that exists in the company is the focus of this
research, which aims to identify a workable solution to solve it or at the very
least lessen its severity. This research is aimed to support rather than criticize
behind.
CHAPTER 4. DATA ANALYSIS AND DATA INTERPRETATION.
Data analysis and interpretation are crucial for understanding how Systematic
Investment Plans (SIPs) are performing. Here's a breakdown of the process:

a) Data Analysis Techniques:

 Descriptive Statistics: Summarize basic features of SIP investments like


average SIP amount, frequency (monthly, quarterly etc.), tenure
(investment duration). You can calculate totals, averages, and standard
deviations.
 Time Series Analysis: Track SIP investments and returns over time. This
helps identify trends in growth of invested capital and potential impact of
market fluctuations. Techniques include plotting SIP contributions and
corpus growth on a timeline.
 Comparative Analysis: Compare SIP performance across different mutual
funds, investment horizons, or investor profiles. This can be done using
metrics like Compound Annual Growth Rate (CAGR).

b) Data Interpretation Considerations:

 Identify Investment Goals: Analyze SIP data keeping the investor's goals
(retirement, child's education etc.) in mind. This helps assess if the SIP is
on track to achieve the desired corpus.
 Risk Tolerance: Analyze how SIPs perform during market downturns. This
helps assess if the chosen investment aligns with the investor's risk
tolerance.
 Investment Horizon: SIP performance should be viewed in the context of
the investment horizon. Short-term analysis might show fluctuations,
whereas long-term analysis reveals the power of compounding.
c) Additional Points:

 Data analysis tools like spreadsheets or financial software can be helpful.


 Consider external factors like market conditions and economic trends
when interpreting SIP data.
4.1 GENDER OF THE RESPONDENTS

Answers % Count
Male 29.7 30
Female 70.3 71

Analysis

According to survey there are 70.3% females & 29.7% males.

Interpretation
According to the responses received there were total 101 responses from which 71
were females and 40 were males. This says that among 101 people there are more
females than males who invest in Systematic Investment plan [SIP].

4.2 AGE OF THE RESPONDENTS.

Answers % Count

Below 18 years 2.0 3


18-25 years 49.5 50
25- 40 years 34.7 35
Above 40 years 11.9 12

Analysis

According to the above graph there are 2% respondents below 18 years. 49.5%
respondents are between age of 18 -25 years. 34.7% respondents are between age of
25-40 years and 11.9% respondents are above 40 years of age .
Interpretation

According to the survey we can say that there are no to less respondents below 18
years and the Highest number of respondents who invest in SIP are between age of
18-25 that is 49.5%. 34.7% people which are between the age group of 25- 40 years
Invest in SIP. And many people above age of 40 are not investing just 11.9% people
are investing in SIP.

4.3 OCCUPATION OF THE RESPONDENT.

Answers % Count

Salaried 46.5 47

Business 19.8 20

Student 28.7 30

Homemaker 5 5

Retired 0 0
Analysis

According to the survey the breakdown of the occupation listed is :

 Salaried: 46.5%

 Business: 19.8

 Student: 28.7%

 Homemaker: 5%

 Retired: 0%

Interpretation
The largest portion of the pie chart 46.5% is labeled “Student”. This says that nearly
half of the respondents were salaried . The second-largest slice of the pie chart is
Student at 28.7% This says that new generation is more knowledgeable. Students are
getting knowledge about the investment at a very good age. Business men at 19.8%
which is quite less and homemakers at 5%.

4.4 WHICH INCOME GROUP DO YOU BELONG?

Answers % Count

Below 2 lakhs 25.7 26

2-10 lakhs 39.6 40

11-20 lakhs 30.7 30

Above 20 lakhs 5 5
Analysis

According to the survey 25.7% respondents are below the income category of 2 lakhs.
39.6% respondents are in the income category between 2- 10 lakhs . 30.7%
respondents are between the income category of 11-20 lakhs and 4% respondents are
above the income category of 20 lakhs.

Interpretation
The largest segment of the pie chart 39.6% represents those who reported making
between 2-10 lakhs per year. The second largest segment 30.7% represents those
making between 11-20 lakhs per annum.

4.5 DO YOU INVEST IN SIPS?

Answers % Count
Yes 86.1 86
No 13.9 14
Analysis

 Yes: 86.1% of respondents said they invest in SIPs.

 No: 13.9% of respondents said they don’t invest in SIPs

Interpretation
The pie chart shows that a larger portion of the respondents 86.1% said they
invest in SIPs.13.9% do not invest in SIP. It’s important to note that this is a
very small sample size (101 respondents) and may not be representative of the
general population.

4.6 IN WHICH SIP YOU PREFER TO INVEST ?

Answers % Count
Public 44.6 45
Private 55.4 56
Analysis

 Public : 44.6% respondents prefer to invest in public SIPS.

 Private: 55.4%. Of the respondents prefer to invest in private SIPS.

Interpretation
The pie chart shows that a slightly higher proportion of respondents prefer
private SIPs 55.4% compared to public SIPs 44.6%. It’s important to consider
that this is a relatively small sample size (101 respondents), and may not be
representative of the wider population.

4.7. WHAT IS YOUR REASON FOR INVESTMENT IN SIP?


Answers % Count

Automation of savings 45.5 46

Retirement plan 18.8 19

Emergency 15.8 15

Other 19.8 21
Analysis

From the above pie chart 45.5% people invest in Sip for automation of savings .
18.8% people invest in Sip for Retirement plan. 15.8 % people invest in Sip for
Emergency and 19.8% people invest in Sip for Other reasons.

Interpretation

 Automation of Savings: 45.5% of respondents said they invest in


SIPs to automate their savings. SIP automates the investment
process by setting up a fixed amount to be invested at regular
intervals. This can help people save money consistently and reach
their financial goals.

 Retirement Plan: 18.8% of respondents said they invest in SIPs


for their retirement plan. SIPs are a good option for retirement
planning because they allow you to invest regularly over a long
period of time. This can help you accumulate a large corpus for
your retirement.

 Emergency Corpus: 15.8% of respondents said they invest in SIPs


to build an emergency corpus. An emergency corpus is a fund that
can be used to cover unexpected expenses. SIPs can help you build
an emergency corpus gradually over time.

 Other Reasons: 19.8% of respondents said they invest in SIPs for


other reasons. These reasons could include things like saving for a
child’s education, a down payment on a house, or simply to grow
their wealth over time.
4.8 WHICH FACTORS DO YOU CONSIDER WHILE
INVESTING?

Answers % Count

Safety of principal 32.7 33

Low risk 24.8 25

High risk 30.7 31

Maturity period 11.9 12


Analysis
According to the survey 32.7% people invest in Sip by considering safety of
principal, 24.8% people invest in Sip by considering Low risk ,30.7% people invest in
Sip by considering High risk, and 11.9% people invest in Sip by considering the
maturity period.

Interpretation
 Safety of Principal: 32.7% of respondents said that safety of principal is the
most important factor they consider when making investment decisions. This
means they want to prioritize investments that are unlikely to lose value.

 Low Risk: 24.8% of respondents said that a low-risk investment is the most
important factor.

 Maturity Period: 11.9% of respondents said that the maturity period is the
most important factor to consider. The maturity period is the amount of time
until an investment matures and the investor gets their money back.

 High Risk: 30.7% of respondents said that a high return is the most important
factor to consider. This means they are willing to take on more risk in order to
potentially earn a higher return on their investment.

According to this survey, the most important factor people consider when making
investment decisions is safety of principal 32.7%.

4.9 WHICH ARE THE PRIMARY SOURCES OF YOUR


KNOWLEDGE ABOUT SIP MUTUAL FUND AS AN
INVESTMENT OPTION ?
Answers % Count

Television 4.9 5

Social media 52.5 52

Newspaper 15.8 16

Friends /Relative 21.8 22

Sales representative 15.8 16

Analysis
 Television: 4.9% of respondents said television was their primary source of
knowledge about SIP mutual funds.

 Social media: 52.5 % of respondents said social media was their primary
source of knowledge about SIP mutual funds.

 Newspaper: 15.8% of respondents said newspapers were their primary source


of knowledge about SIP mutual funds.

 Friends/Relatives: 21.8% of respondents said friends or relatives were their


primary source of knowledge about SIP mutual funds.

 Sales Representative: 15.8% of respondents said a sales representative was


their primary source of knowledge about SIP mutual funds.

According to the survey, the most common way people learn about SIP mutual funds
is from social media (52.5%). This suggests that word-of-mouth marketing is an
important way for people to learn about SIP mutual funds.

Interpretation

According to the survey the primary sources of knowledge about SIP mutual fund for
people comes largely from social media 52.5%. From friends and relatives 21.8% and
from sales representative 15.8%.

4.10 HOW OFTEN DO YOU INVEST?

Answers % Count
Daily 2 2
Weekly 21.8 22
Monthly 76.2 77
Analysis
 Daily: 2% of respondents said they invest daily.

 Weekly: 21.8% of respondents said they invest weekly.

 Monthly: 76.2% of respondents said they invest monthly.

Interpretation
The majority of respondents (76.2%) said they invest monthly. This suggests
that monthly investing is the most popular frequency among the people
surveyed. It’s important to consider that this is a relatively small sample size
(101 respondents), and may not be representative of the wider population.

4.11 WHAT TIME PERIOD YOU PREFER TO INVEST?

Answers % Count
Short term 19.8 20
investment
Medium term 38.6 29
investment
Long term 41.6 42
investment
Analysis
 Short term investment: 19.8% of respondents said they prefer short-term
investments.

 Medium term investment: 38.6% of respondents said they prefer medium-term


investments.

 Long term investment: 41.6% of respondents said they prefer long-term


investments

Interpretation
The survey shows that a plurality of respondents 19.8% prefer short-term investments.
This could be because short-term investments are generally considered to be less risky
than long-term investments. However, short-term investments also tend to have lower
returns.

Here’s a brief explanation of the different investment time horizons:

 Short-term investments typically have a time horizon of less than three


years. Examples of short-term investments include savings accounts,
money market funds, and certificates of deposit (CDs).

 Medium-term investments typically have a time horizon of three to ten


years. Examples of medium-term investments include bonds, bond funds,
and some hybrid securities.

 Long-term investments typically have a time horizon of ten years or


more. Examples of long-term investments include stocks, stock funds, and
real estate.

It’s important to consider that this is a relatively small sample size (101 respondents),
and may not be representative of the wider population. Also, an investor’s preferred
time horizon will likely depend on their individual financial goals and risk tolerance.
4.12 WHAT TYPE OF SCHEMES DO YOU INVEST ?

Answers % Count
Regular Sip 37.4 38
Top up sip 34.3 35
Flexible sip 28.3 28

Analysis
 Regular SIP: 37.4% of respondents said they prefer regular SIPs.

 Top-Up SIP: 34.3% of respondents said they prefer top-up SIPs.

 Flexible SIP: 28.3% of respondents said they prefer flexible SIPs.


Interpretation
Regular SIPs are the most basic type of SIP. With a regular SIP, you invest a fixed
amount of money into a mutual fund at regular intervals (usually monthly).

Top-up SIPs allow you to increase your SIP investment amount periodically. This
can be a good option if you expect your income to increase over time.

Flexible SIPs allow you to pause or skip your SIP installments if you are facing
financial difficulties. You can also invest additional amounts into your SIP whenever
you have extra cash.

The survey shows that regular SIPs are the most popular type of SIP scheme among
the respondents 37.4%. 28.3% people invest in flexible SIP it may be because of
flexibility

It’s important to consider that this is a relatively small sample size (99 respondents)
and may not be representative of the wider population. Also, the best type of SIP for
you will depend on your individual financial goals and risk tolerance.

4.13 WHAT MODE OF OPERATION DO YOU PREFER?

Answers % Count
Through apps 53.5 54
Through agents 46.5 47
Analysis
 Through apps: 53.5% of respondents prefer to interact with a company
through agents.

 Through agents: 46.5% of respondents prefer to interact with a company


through apps.

Interpretation
According to the survey, 46.5% prefer to interact with a company through agents.
This could be because they prefer the personal touch that an agent can provide.
However, nearly half of the respondents 53.5% said they prefer to interact with a
company through apps. This suggests that a significant portion of the population is
comfortable using apps to interact with companies.

It is important to consider that this is a relatively small sample size (101 respondents),
and may not be representative of the wider population. Also, people may prefer to
interact with companies through a variety of channels, depending on the specific
situation. For example, someone might prefer to use an app to pay their bill but prefer
to speak to an agent if they are having a problem with their account.

4.14 DO YOU USE APPLICATION?

Answers % Count

Yes 56.4 57

No 43.6 44

Analysis
It’s important to note that this is a relatively small sample size (101 respondents), and
may not be representative of the wider population. There could be a number of
reasons why someone might not choose to use an application to invest in SIPs. For
instance, they may prefer to invest directly through a brokerage firm or mutual fund
company. They may also be concerned about the security of their financial
information or simply not be comfortable using apps for financial transactions.

Interpretation
The pie chart shows that a larger portion of the respondents 56.4% said they invest in
SIPs through apps and 43.6% respondents invest through agents.
4.15. ACCORDING TO YOU WHAT IS THE AVERAGE RETURN
FROM SIP MUTUAL FUND?

Answers % Count
10-20% 19.8 20
20-30% 50.5 50
30-40% 26.7 27
More than 50% 3.9 4

Analysis
 10-20%: 19.8% of respondents expect a 10-20% return from SIP mutual
funds.

 20-30%: 50.5% of respondents expect a 20-30% return from SIP mutual


funds.

 30-40%: 26.7% of respondents expect a 30-40% return from SIP mutual


funds.
 More than 50%: 3.9% of respondents expect a return greater than 50% from
SIP mutual funds.

Interpretation
It’s important to note that these are just expectations, and the actual returns from
SIP mutual funds can vary depending on a number of factors, including the
specific mutual fund scheme you invest in, the market conditions, and the
investment horizon.

4.16. WHAT BENEFITS DO YOU PROCURE FROM INVESTING


IN SIP?

Answers % Count

Liquidity 25.7 26

High rate of return 40.6 41

Growth of capital 28.7 29

Others 5 5
Analysis
 High Rate of Return: 40.6% of respondents said a high rate of return is a
benefit of investing in SIPs.

 Growth of Capital: 28.7% of respondents said growth of capital is a benefit


of investing in SIPs.

 Liquidity: 25.7% of respondents said liquidity is a benefit of investing in


SIPs.

 Others: 5% of respondents said there are other benefits to investing in SIPs

Interpretation
According to the survey, the most common benefit people perceive from SIPs is for
high rate of return . Liquidity refers to how easily an investment can be converted into
cash. SIPs are generally considered to be a liquid investment because you can
typically redeem your units at any time.

4.17. HOW DO YOU DESCRIBE SIP MUTUAL FUND ?

Answers % Count

Fine 16.8 17

Beneficial 49.5 50

Great 32.7 33

Not good 1 1
Analysis

 Fine : 16.8% of respondents described SIP mutual funds as a disciplined


investment.

 Beneficial: 49.5% of respondents described SIP mutual funds as beneficial.

 Good: 32.7% of respondents described SIP mutual funds as good.

 Not Sure: 1.0% of respondents were not sure how to describe SIP mutual
funds.

Interpretation
According to the survey, the most common way people describe SIP mutual funds is
beneficial (49.5%). This suggests that people perceive SIPs to be a positive financial
tool.
CHAPTER 5: CONCLUSION, FINDINGS, SUGGESTIONS AND
RECOMMEDATIONS
5.1 CONCLUSION

On the basis of this study, the Researcher can conclude that Mutual Fund SIP is a
monthly based investment plan through which an investor could invest a fixed sum
into mutual funds every month at pre-decided dates. This hedges the investor from
market instability and derives maximum benefit as the investment is done at regular
basis irrespective of market conditions. SIP is a feature especially designed for
investors who wish to invest small amounts on a regular basis to build wealth over a
long term. It inculcates the habit of regular savings and does not encourage timing and
speculation in the markets. The study would be helpful for the small investors by
entering into capital market by using the Systematic investment plan. Like every
investment avenue, SIP also suffers from various disadvantages but it still seems to be
one of the best investment option available to a long term investor especially First-
time investor Salaried people etc.

Mutual Fund is good concept of investment which collects the savings and invests in
different sector and different market in such a way that investment get highest
return .This return will be paid back to Unit holder. The perception of Independent
Financial Advisor is that insurance is a best investment option for life cover and safety
from future threats and Mutual Funds are for investment. Most advisors are
suggesting Mutual fund SIP.

Today Advisors are keeping full of knowledge of all investment instruments. And
their researches allow them to suggest Mutual Fund an Investment Avenue. Still some
advisers have suggested the Mutual funds as investment instrument. The basic reason
behind that is, lack of knowledge about mutual funds, which is followed by high risk
and unassured Risks. Safety is at the peak of all attributes list of investment products
in the mindset of Advisors, which is followed by tax benefit, returns, maturity and
liquidity. Advisors are highly providing pre-investment advisory services and doorstep
collection services Some of the Advisors follow their clients and provide post-
investment advisory services. Sharing of brokerage and online valuation report
providing is very less in a practice.
All investments whether in shares, debentures or deposits involve risk, share value
may go down depending upon the performance of the company, the industry, state of
capital markets and the economy, generally, however, longer the term, lessen the risk
companies may default in payment of interest principal their
debentures/bonds/deposits, the rate of interest on an investment may fall short of the
rate of inflation reducing the purchasing power.

While risk cannot be eliminated, skillful management can minimize risk. Mutual
Funds help reduce risk through diversification and professional managements. The
experience and expertise of Mutual Fund managers in selecting fundamentally sound
securities and timing their purchases and sales help them to build a diversified
portfolio that minimizes risk and maximizes returns. In case of selecting between SIP
and lump sum, is better to conclude that people should consider before investing
money in mutual fund and invest in good AMC. It does not matter that SIP or
lumpsum will give better return. It all depends on fund managers and AMC

According to survey 86% invest in SIP So trends say that SIP is good investment
alternative in mutual fund. But apart from that people also depend on the market value
and they take advice from some experts of this field.

Systematic Investment Plan (SIP) is the winning strategy in present market scenario.
Small investor can make his her investment in Equity Fund through the monthly or
quarterly of in multiple of 500 that is 500, 1000, 1500, 2000… Small investor can
enjoy the volatility (Ups & downs) by investing regularly. Old investment in stock
market is in present time showing losses event though SIP investment RETURN is far
better in comparison of ONE TIME investment At this present down trend one can
investment in Balanced Fund schemes. An SIP may not be able to lower the average
purchase cost if equity markets rise in a secular manner.
5.2 Recommendations

1. Investment is the technique by which people save the money for future and
increase their living standard. Many people who don't know and don't want to
take more risk by investing in shares and securities therefore Mutual Funds are
better instruments to save their money for future and provide them better
return.

2. SIP and Lump sum are two techniques to invest money in mutual fund. People
should not confuse about them. Both are better themselves.

3. When market is ups and down nature it is better to invest their money through
SIP another reason for SIP is because it is monthly investment so when there
are salaried person who want to invest money in mutual fund then SIP is good
technique because they have limited saving that's why SIP is good for salaried
persons.

4. When the researcher surveyed in the market there are many people who really
don't know what actually mutual fund means is. He realized that there are
many persons who don't invest money in mutual fund they only invest in
insurance or fixed deposit.

5. The researcher suggests here that there is need of more advertising through
canopies which will help to those people who want to invest in mutual fund
and will get more information through canopies.
5.3FINDINGS

 AGE

70.3% am female respondent. 2% are below the age 18


respondents. 34.7% people respondents are belonging to 25 years
to 40 years, 11.9% people respondents are belonging to above 40
age group.

 INCOME GROUP

25.7% of the respondents belong to the income group of below 2


Lakhs and 39.6% of the respondents belong to the Income group of
2-11 lakhs. The respondents which belong to 11-20 Lakhs is 30.7%
of the respondents to the income group and above 20 lakhs are 4%.

 OCCUPATION

46.5% of the respondents belong to Salaried group. 28.7% of the


respondents belong to student,19.8 % of the respondents belong to
category of business, 5% of the respondents are home maker and
0% retired

 INVESTMENT IN SIP
86.1% respondents invest in SIP mutual funds and 13.9%
respondents do not invest in SIP mutual funds

 BENEFITS CONSIDERED WHILE INVESTING IN SIP


25.7% people prefer liquidity factor as a benefit for investing
money, 40.6% people prefer higher rate of return as a factor for
investing money. 28.7% people prefer growth of capital as a factor
for investing money, 5% people prefer other factors for investing.

 DIFFERENT SECTORS OF INVESTMENT

For investing money. 55.4% people prefer public sector for


investing money and 44.6% people prefer private company for
investing money

 FACTORS CONSIDERED WHILE INVESTING IN SIP

32.7% people prefer safety of principal factor before investing money 24.8%
people prefer low risk factor before investing money . 30.7% people prefer
high risk factor before investing money , 11.9% people prefer maturity factor
before investing money investing money.

 INVESTING DAILY/ WEEKLY/MONTHLY

2%people invest daily, 21.8% people invest weekly. 76.2% people invest
monthly.

 DURATION OF INVESTMENT
19.8% people invest in short term period. 38.6% people invest in medium term
period and 41.6% people invest in long term period

 APP FOR INVESTMENT IN SIP

56.4% people use app for sip, 43.6% people do not use app for SIP.

 DESCRIPTION OF MUTUAL FUNDS

16.8% people described SIP Manual Funds as Fine, 32.7% described SIP
Mutual Funds a great, 49.5% SIP Mutual Funds as beneficiary, 1% described
SIP Mutual Funds as not good.

 MODE OF INVESTING

46.5% peoples mode of operation is though agents, 53.5% peoples mode of


operation is through apps.

 APPLICATION USED FOR INVESTING

According to survey 38.5% people use ANGEL ONE APP to invest in SIP.
25.6% use GROWW APP to Invest in SIP. 12.8 % people use myCAMS APP
to invest in SIP .

5.4 BIBLOGRAPHY

1. Book on Systematic Investment Plan By Cnbc Network Tv

2. India Today Magazine


3. Business India Magazine

4. Joseph, G., Telma, M., and Romeo, A.(2015): “A study of sip &
lip of selected large cap stocks listed in NSE. International Journal
of Management Research & Review,Vol.5, No.2, Art.No8,pp117-
136.

5. Juwairiya, P.P. (2014): <Systematic investment plan-the way to


invest in Mutual funds. Sai Om Journal of Commerce &
Management, Vol.9,No1,pp. 2347-7563 3. Paul, T.(2012).

6. Sharma, S.(2015): <ELSS Mutual Funds in India: Investor


Perception and Satisfaction, International Journal of Finance and
Accounting , 4(2): 131-139

7. Sindhu, K.P.,& Kumar, S. R.(2014): <Investment horizon of


mutual fund Investors, International journal of management
research,Vol.2, No.8.

8. Soni, P., Khan, I. (2012): <Systematic investment plan v/s other


investment avenues in individual portfolio management 3 A
comparative study, International Journal in Multidisciplinary and
Academic Research, Vol. 1, No.3.

9. Vyas, R.(2013): <Factors influencing investment decision in


mutual funds ZENITH International Journal of Business
Economics & Management Research, Vol.3, No.7. pp-2249- 8826
A Study on SYSTEMATIC INVESTMENT PLAN BY EMPLOYED
PEOPLE IN ULHASNAGAR

1.Age

o Under 18
o 18-24
o 25-34
o 35-above

2.Gender

o Male
o female
o Not want to disclose

3.Occupation

o Student
o Working professional
o Self-employed/Business
o Homemaker
o Other:

4.Which income group do you belong?(Per annum)


o Below 2 lakhs

o 2-10 lakhs

o 11-20 lakhs

o Above 20 lakhs

5.Do you invest in SIPs?

o Yes

o No

6.In which SIP you prefer to invest?

o Public

o Private

7.How often do you invest?

o Daily

o Weekly

o Monthly

8.What mode of operation do you prefer?


o Through apps

o Through agents

9.Do you use application to invest in SIP?

o Yes

o No

10.What type of schemes do you to invest?

o Regular SIP

o TOP-UP SIP

o Flexible SIP

11.What time period you prefer to invest?

o Short term investment

o Medium term investment

o Long term investment


12.According to you what is the average return from SIP MUTUAL
FUND ?

o 10-20%

o 20-30%

o 30-40%

o More than 50%

13.What benefits you procure from investing in SIP

o Liquidity

o High rate of return

o Growth of capital

o Others

14. Which are the primary sources of your knowledge about SIP
MUTUAL FUND as an investment option?

o Television

o Social media

o Newspaper

o Friends/Relative

o Sales representative
15.How do you describe SIP MUTUAL FUND?

o Fine

o Beneficial

o Great

o Not good

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