SIP - PDF Black Book
SIP - PDF Black Book
SIP - PDF Black Book
Ulhasnagar.”
Bachelor of Commerce
By
TY.BAF-SEM VI
Roll No. 57
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,
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.
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
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.
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.
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.
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
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.
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.
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.
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
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
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.
In the long term, the SIP investor gains as his investments are unaffected by market
volatility
Mr x. Mr. Y
Age – 25 years Age – 25 years
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.
Art of compounding:
Normal Compounding Value of 1 lakh INR invested every year for 10 years (at 10%
annual returns): 17.53 lakh.
@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
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.
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. 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.
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.
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.
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.
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.
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.
-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.
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
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.
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
3. KOTAK SECURITIES
4. ICICI SECURITIES
6. HDFC SECURITIES
o HDFC Securities provides
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
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.
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.
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)
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.
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.
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:
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.
SIP (Systematic Investment Plan) can vary depending on your specific area of
interest.
1. SIP FOR INVESTOR BEHAVIOR:
Data Collection:
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.
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.
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.
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:
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:
Answers % Count
Male 29.7 30
Female 70.3 71
Analysis
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].
Answers % Count
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.
Answers % Count
Salaried 46.5 47
Business 19.8 20
Student 28.7 30
Homemaker 5 5
Retired 0 0
Analysis
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%.
Answers % Count
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.
Answers % Count
Yes 86.1 86
No 13.9 14
Analysis
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.
Answers % Count
Public 44.6 45
Private 55.4 56
Analysis
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.
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
Answers % Count
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%.
Television 4.9 5
Newspaper 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.
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%.
Answers % Count
Daily 2 2
Weekly 21.8 22
Monthly 76.2 77
Analysis
Daily: 2% of respondents said they invest daily.
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.
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.
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.
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 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.
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.
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.
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.
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.
Answers % Count
Liquidity 25.7 26
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.
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.
Answers % Count
Fine 16.8 17
Beneficial 49.5 50
Great 32.7 33
Not good 1 1
Analysis
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
INCOME GROUP
OCCUPATION
INVESTMENT IN SIP
86.1% respondents invest in SIP mutual funds and 13.9%
respondents do not invest in SIP mutual funds
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.
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
56.4% people use app for sip, 43.6% people do not use app for SIP.
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
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
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.
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:
o 2-10 lakhs
o 11-20 lakhs
o Above 20 lakhs
o Yes
o No
o Public
o Private
o Daily
o Weekly
o Monthly
o Through agents
o Yes
o No
o Regular SIP
o TOP-UP SIP
o Flexible SIP
o 10-20%
o 20-30%
o 30-40%
o Liquidity
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