Name- Pratik Chaudhari Enrolment No-21BSPDD01C133 IBS Campus-Dehradun

Mobile No- 8898779526 E-mail Id- pratikpro000@gmail.com

SIP Proposal

SIP Details:

1. SIP Proposed- An individual perception and consumers behavior on Mutual Funds.

2. Description of SIP in brief-
Mutual funds are financial intermediaries, which collect the savings of investors and
invest them in a large and well-diversified portfolio of securities such as money market
instruments, corporate and government bonds and equity shares of joint stock companies.
Mutual funds give small or individual investors access to professionally managed
portfolios of equities, bonds, and other securities. Each shareholder, therefore,
participates proportionally in the gains or losses of the fund. Mutual funds invest in a vast
number of securities, and performance is usually tracked as the change in the total market
cap of the fund—derived by the aggregating performance of the underlying investments

A little brief description about the company- Inventure Growth and Securities Limited.
The company was established in the year 1995 as a public limited company, today the
company has membership in cash and derivatives segment of Bombay Stock Exchange
(BSE) and National Stock Exchange (NSE) currency futures segment of BSE and NSE,
MCX Stock Exchange (MCX-SX) and wholesale debt market segment of BSE and NSE.
Today, IGSL is a professionally managed multi-faceted financial service provider,
offering a host of comprehensive services that are well diversified under a single roof, to
carter to the verified financial needs of the customer.

The project includes a vast and a well-diversified knowledge on mutual funds, like
understanding what exactly is mutual funds its functioning, features, advantages,
limitations its history, etc. This whole project helps to gain a good knowledge on Mutual
Funds.

With the growing importance of investment and increasing awareness of making the right
investment decisions and regarding the different investment options available for the investors,
the report aims to identify the various options in mutual funds that the investor can invest in.
Investors invest their money with the primary motive of earning returns at a future date.
Awareness on the various investment avenues have encouraged the investors to work towards
saving their money and later investing them in different funds to earn returns. The internship
project is also aimed at studying these traits of the investors.

Markets are highly volatile in nature. This volatile nature of the markets has challenged the
notion of the investors regarding the efficiency of the markets and to identify the driving forces
behind it. Thus, it is not only a cause of concern for the investors but also for portfolio managers,
researchers and academicians to study and understand the reasons for the fluctuations and
reasons causing irrationality in the markets. The internship project also uses the behavioral
theory and psychology of the investors to examine the factors influencing the investment
decisions of different individual investors.

From the existing information and research work of different authors available on the internet
and also while preforming hands on work while pitching the products to the clients it was found
that there is no single factor that influences the decision making of the individual investors.
Investors are assumed to be rational. While interning with IGSL and pitching the Mutual Funds
to the potential investors, we were advised to not just sell the products to the investors. In-stead
we were advised to first understand the needs of the investors understand the financial and circle
which the investor socializes with and the knowledge of the investors.

The investor before investing in any securities prefers to be well informed. Before making any
investments, the investors tend to analyze the markets well. Different approaches are required to
be used to analyze these market conditions before suggesting a plan to the proposed investor.

At Inventure Growth and Securities Limited, in the first week of the internship, the company
mentor helped us to understand a little more about the company since its inception. A brief
history about the group, its promoters and current directors, how the company was incorporated
and what was the journey of the company till date was made to us interns using a power point
presentation.

The following day we were introduced to the various financial products and financial services
that were offered by the company. This helped us gaining an insight about the company’s vast
operations. The first financial product that introduced to us was Mutual Funds. The Company
Mentor described in detail about the Mutual Fund, the various options in Mutual Funds and also
the most suitable Mutual Fund option for certain type of investors. The analysis of the best
Mutual Fund for a specific class of investors was made on the basis of their age group, the
income of the investors their spending habits, the educational background, etc. The basic
psychology or behavioral finance of choosing the right Mutual Fund is also based on the risk
capacity of the client. The company mentor advised that before pitching a product it is very
important to understand whether an investor is a risk taker or a risk averse, along with this he had
asked us to create a need for the customer and then explain him how mutual funds will help him
full fill his need. He had explained us in a well-designed format about how to create a need of a
customer, what questions to ask, how to pitch the client, how to convince him and explain him
why Mutual funds are important.

In order to understand the topic better we were assigned the task of identifying the best
performing Mutual Funds by studying the various factors that make that certain Mutual Fund the
top performing Mutual Funds. In the coming days different activities were conducted to
strengthen our knowledge about the topic. The activities involved both working as a team as well
as performing individual tasks. He has asked us to perform how to pitch a client and how to
create a need among us. This was a group activity which everyone had to perform and then he
had asked us to prepare a power point presentation on how to pitch a client, this was an
individual activity. This is how he had trained us.

In this whole process he also explained us the importance of mutual funds in every individuals
life and how it helps us to full fill our future goals.

3. Objective of the SIP-

1) To analyze factors affecting consumer investment decisions.
2) To analyze the different financial products which are available for investment.
3) To analyze the impact of various demographical factors like Age, Gender, Income and
Education on consumer decision towards Mutual funds.
4) To study the factors having implications on consumer perception towards mutual funds.

4. Methodology-

Primary Data- To create and circulate questionnaire to gather the basic information, their
investment patterns, if any and to study the mentality of the investors
Secondary Data- To collect data form the existing material and information available on the
internet by going through the work already. Referring various articles to understand the factors
affecting the decision making and related impact on the investment pattern.
 5. Schedule-
3 months (21st Feb 2022 to 20th May 2022)

Week 1 to Understanding the products and services the company is offering. Initiating
Week 3 sales pitching
Week 4 to Observing and understanding how the various departments carryout the
Week 8 operation practically. Gaining practical exposure and performing hands on task
Week 9 to Pitching the products to the potential clients
Week 13

6. Limitations of the Study-

There are several limitations in the study
(1) The study has taken the following investment avenue, i.e., Mutual Funds, Insurance and
Stock Market though there are many investment alternatives available to investors;
(2) Investment decision depends on various factors. But the current study takes only certain
factors to analyze the factors affecting the investment decisions;
(3) The sample size of the study is restricted to 100 individual investors.
(4) The study has also the limitation of time, place and resources.

Faculty Guide Name- Dr. Hemant Purandare

Company Guide Name- Mr. Smit M Somaiya

Date-

Pratik Chaudhari

(Signature of the student)