lOMoARcPSD|23621599

A PROJECT

REPORT ON by

STUDY OF MUTUAL FUND WITH RESPECT TO

SYSTEMATIC INVESTMENT PLAN (SIP)

A Project Submitted to

University of Mumbai for partial completion of the degree

of Bachelor in Commerce (Accounting and Finance)

Under the Faculty of

Commerce By

SANJANA R. NAIR

Under the Guidance of

Asst. Prof. SUNITA

SAINI

&

Dr ABIDA KHAN
MAHATMA EDUCATION SOCIETY’S

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE, AUTONOMOUS

AFFILIATED TO UNIVERSITY OF MUMBAI

PLOT NO 10, SECTOR-16, NEW PANVEL – 410206

2019-2020
 lOMoARcPSD|23621599

A PROJECT

REPORT ON

STUDY OF MUTUAL FUND WITH RESPECT TO

SYSTEMATIC INVESTMENT PLAN (SIP)

A Project Submitted to

University of Mumbai for partial completion of the degree

of Bachelor in Commerce (Accounting and Finance)

Under the Faculty of

Commerce By

SANJANA R. NAIR

Under the Guidance of

Asst. Prof. SUNITA

SAINI

&

Dr ABIDA KHAN
MAHATMA EDUCATION SOCIETY’S

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCE, AUTONOMOUS

AFFILIATED TO UNIVERSITY OF MUMBAI

PLOT NO 10, SECTOR-16, NEW PANVEL – 410206

2019-2020
 lOMoARcPSD|23621599

Declaration by learner

I the undersigned Miss SANJANA NAIR hereby, declare that the work
embodied in this project work titled < STUDY OF MUTUAL FUND
WITH RESPECT TO SYSTEMATIC INVESTMENT PLAN (SIP)=,
forms my own contribution to the research work carried out under the
guidance of Asst. PROF. SUNITA SAINI is a result of my own research
work and has and has not been previously submitted to 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 as such 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 the Learner

Certified by

Name and Signature of the Guiding Teacher

 lOMoARcPSD|23621599

Acknowledgement

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 (C.A) GAJANAN WADER for

providing the necessary facilities required for completion of this project.

I take this opportunity to thank our Coordinator Mrs. ABIDA KHAN, for
her moral support and guidance.

I would also like to express my sincere gratitude towards my Project

Guide Asst. Prof. SUNITA SAINI 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.
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Index
Chapters Particulars Page
number
1 Introduction 1-32
1.1 Introduction To Mutual Funds 1
1.1.1 History Of Mutual Funds 3
1.1.2 Primary Structure Of Mutual Funds 5
1.1.3 Definition Of Key Terms Of Mutual 11
Funds
1.1.4 Benefits Of Investing In Mutual 14
Funds 15
1.1.5 Drawback Of Investing In Mutual 16

fund 18
19
1.2 Introduction To Systematic Investment Plan 21
1.2.1 How SIP Works ? 22
1.2.2 Categories Of SIP Mutual Funds 23
1.2.3 Why Should One Invest In An SIP? 25
1.2.4 Advantages Of SIP 26
1.2.5 Disadvantages Of SIP 27
1.3 Investment 28

1.4 SIP Through Apps 29

2 Research Methodology 33-37

2.1 Introduction 33
2.2 Objectives 33
2.3 Scope Of The Subject 34
2.4 Sampling 34
2.5 Tools & Techniques 34
2.6 Sources Of Data Collection 35
2.7 Primary Data 35
2.7a 35
Questionnaire 35

2.7b Observation Method

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2.8 Secondary Data 36

2.9 Limitation Of The Study 37
2.10 Hypothesis 37
3 Literature Review 37-43
4 Data Analysis And Interpretation 44-62

5 Findings, Conclusion And Suggestion 63-71

5.1 Findings 63
5.2 Suggestion 65
5.3 Conclusion 69
5.4 bibliography 71
Annexure 72-77
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1. INTRODUCTION

INTRODUCTION OF MUTUAL FUNDS

A mutual fund is a type of financial vehicle made up of a pool of money collected from
many investors to invest in securities like stocks, bonds, money market instruments, and
other assets. Mutual funds are operated by professional money managers, who allocate the
fund's assets and attempt to produce capital gains or income for the fund's investors. A
mutual fund's portfolio is structured and maintained to match the investment objectives
stated in its prospectus.

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
fund4derived by the aggregating performance of the underlying investments.

 A mutual fund is a type of investment vehicle consisting of a portfolio of

stocks, bonds, or other securities.
 Mutual funds give small or individual investors access to diversified,
professionally managed portfolios at a low price.
 Mutual funds are divided into several kinds of categories, representing the
kinds of securities they invest in, their investment objectives, and the type of
returns they seek.
 Mutual funds charge annual fees (called expense ratios) and, in some cases,
commissions, which can affect their overall returns.
 The overwhelming majority of money in employer-sponsored retirement plans
goes into mutual funds.
Mutual funds pool money from the investing public and use that money to buy other securities,
usually stocks and bonds. The value of the mutual fund company depends on the performance of the
securities it decides to buy. So, when you buy a unit or share of a mutual fund, you are buying the
performance of its portfolio or, more precisely, a part of the portfolio's value. Investing in a share of a
mutual fund is different from investing in shares of stock. Unlike stock, mutual fund shares do not
give its holders

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any voting rights. A share of a mutual fund represents investments in many different
stocks (or other securities) instead of just one holding. That's why the price of a
mutual fund share is referred to as the net asset value (NAV) per share, sometimes
expressed as NAVPS. A fund's NAV is derived by dividing the total value of the
securities in the portfolio by the total amount of shares outstanding. Outstanding
shares are those held by all shareholders, institutional investors, and company officers
or insiders. Mutual fund shares can typically be purchased or redeemed as needed at
the fund's current NAV, which unlike a stock price doesn't fluctuate during market
hours, but it is settled at the end of each trading day.

The average mutual fund holds hundreds of different securities, which means mutual
fund shareholders gain important diversification at a low price. Consider an investor
who buys only Google stock before the company has a bad quarter. He stands to lose
a great deal of value because all of his dollars are tied to one company. On the other
hand, a different investor may buy shares of a mutual fund that happens to own some
Google stock. When Google has a bad quarter, she loses significantly less because
Google is just a small part of the fund's portfolio

Mutual funds also have inherent traits that follow investment principles such as asset
allocation and diversification. Another commonly faced challenge is the indecision on
investing, which has been addressed by Systematic Investment Plan (SIP) which
instils the discipline to invest regularly and over different market cycles. By opting for
our Smart SIP, you could mix your investments with financial protection by way of
life insurance embedded. This serves the dual purpose of life protection and wealth
creation.

Income tax is yet another challenge faced by investors for which also mutual funds
have optimum solutions. For instance, there is a unique mutual fund category known
as ELSS (equity-linked savings scheme), which not only can work towards wealth
creation, but also act as a tax saver. ELSS fund, qualify for tax benefits under Section
80C up to Rs.
1.5 lakh in a financial year and come with a three year lock-in. The overall taxation on
mutual fund redemptions is also straightforward, making it easy for individuals to
manage.

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History Of Mutual Funds

The first modern investment funds (the precursor of today's mutual funds) were established in the
Dutch Republic. In response to the financial crisis of 177231773, Amsterdam-based businessman
Abraham (or Adriaan) van Ketwich formed a trust named Eendragt Maakt Magt ("unity creates
strength"). His aim was to provide small investors with an opportunity to diversify.
Mutual funds were introduced to the United States in the 1890s. Early U.S. funds were
generally closed-end funds with a fixed number of shares that often traded at prices above
the portfolio net asset value. The first open-end mutual fund with redeemable shares was
established on March 21, 1924 as the Massachusetts Investors Trust (it is still in existence
today and is now managed by MFS Investment Management).

In the United States, closed-end funds remained more popular than open-end funds
throughout the 1920s. In 1929, open-end funds accounted for only 5% of the industry's
$27 billion in total assets.

After the Wall Street Crash of 1929, the United States Congress passed a series of acts
regulating the securities markets in general and mutual funds in particular.

 The Securities Act of 1933 requires that all investments sold to the public, including
mutual funds, be registered with the SEC and that they provide prospective investors
with a prospectus that discloses essential facts about the investment.
 The Securities and Exchange Act of 1934 requires that issuers of securities, including
mutual funds, report regularly to their investors. This act also created the Securities
and Exchange Commission, which is the principal regulator of mutual funds.
 The Revenue Act of 1936 established guidelines for the taxation of mutual funds.
 The Investment Company Act of 1940 established rules specifically governing
mutual funds.

These new regulations encouraged the development of open-end mutual funds (as opposed to
closed-end funds).

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Growth in the U.S. mutual fund industry remained limited until the 1950s, when confidence
in the stock market returned. By 1970, there were approximately 360 funds with $48 billion
in assets.

The introduction of money market funds in the high interest rate environment of the late
1970s boosted industry growth dramatically. The first retail index fund, First Index
Investment Trust, was formed in 1976 by The Vanguard Group, headed by John Bogle; it is
now called the "Vanguard 500 Index Fund" and is one of the world's largest mutual funds.
Fund industry growth continued into the 1980s and 1990s.

According to Robert Pozen and Theresa Hamacher, growth was the result of three factors:

1. A bull market for both stocks and bonds,

2. New product introductions (including funds based on municipal bonds, various industry
sectors, international funds, and target date funds) and
3. Wider distribution of fund shares. Among the new distribution channels were retirement
plans. Mutual funds are now the preferred investment option in certain types of fast-growing
retirement plans, specifically in 401(k), other defined contribution plans and in individual
retirement accounts (IRAs), all of which surged in popularity in the 1980s.
In 2003, the mutual fund industry was involved in a scandal involving unequal treatment of
fund shareholders. Some fund management companies allowed favoured investors to engage
in late trading, which is illegal, or market timing, which is a practice prohibited by fund
policy. The scandal was initially discovered by former New York Attorney General Eliot
Spitzer and led to a significant increase in regulation. In a study about German mutual funds
Gomolka (2007) found statistical evidence of illegal time zone arbitrage in trading of
German mutual funds. Though reported to regulators BaFin never commented on these
results.
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Primary Structure Of Mutual Funds

Primary structures of mutual funds include open-end funds, unit investment trusts, and
closed-end funds. Exchange-traded funds (ETFs) are open-end funds or unit investment
trusts that trade on an exchange. Some close- ended funds also resemble exchange traded
funds as they are traded on stock exchanges to improve their liquidity. Mutual funds are also
classified by their principal investments as money market funds, bond or fixed income funds,
stock or equity funds, hybrid funds or other. Funds may also be categorized as index funds,
which are passively managed funds that match the performance of an index, or actively
managed funds. Hedge funds are not mutual funds; hedge funds cannot be sold to the general
public as they require huge investments.

Types of Mutual Funds based on structure

Open-Ended Funds: These are funds in which units are open for purchase or redemption
through the year. All purchases/redemption of these fund units are done at prevailing NAVs.
Basically these funds will allow investors to keep invest as long as they want. There are no
limits on how much can be invested in the fund. They also tend to be actively managed
which means that there is a fund manager who picks the places where investments will be
made. These funds also charge a fee which can be higher than passively managed funds
because of the active management. They are an ideal investment for those who want
investment along with liquidity because they are not bound to any specific maturity periods.
Which means that investors can withdraw their funds at any time they want thus giving them
the liquidity they need.
Close-Ended Funds: These are funds in which units can be purchased only during the initial
offer period. Units can be redeemed at a specified maturity date. To provide for liquidity,
these schemes are often listed for trade on a stock exchange. Unlike open ended mutual
funds, once the units or stocks are bought, they cannot be sold back to the mutual fund,
instead they need to be sold through the stock market at the prevailing price of the shares.
Interval Funds: These are funds that have the features of open-ended and close- ended
funds in that they are opened for repurchase of shares at different intervals during the fund
tenure. The fund management company offers to repurchase units from existing unitholders
during these intervals. If unitholders wish to they can offload shares in favour of the fund.

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Types of Mutual Funds based on asset class

Equity Funds: These are funds that invest in equity stocks/shares of companies. These are
considered high-risk funds but also tend to provide high returns. Equity funds can include
specialty funds like infrastructure, fast moving consumer goods and banking to name a few.
Debt Funds: These are funds that invest in debt instruments e.g. company debentures,
government bonds and other fixed income assets. They are considered safe investments and
provide fixed returns. These funds do not deduct tax at source so if the earning from the
investment is more than Rs. 10,000 then the investor is liable to pay the tax on it himself.
Money Market Funds: These are funds that invest in liquid instruments e.g. T-Bills, CPs
etc. They are considered safe investments for those looking to park surplus funds for
immediate but moderate returns. Money markets are also referred to as cash markets and
come with risks in terms of interest risk, reinvestment risk and credit risks.
Balanced or Hybrid Funds: These are funds that invest in a mix of asset classes. In some
cases, the proportion of equity is higher than debt while in others it is the other way round.
Risk and returns are balanced out this way. An example of a hybrid fund would be Franklin
India Balanced Fund-DP (G) because in this fund, 65% to 80% of the investment is made in
equities and the remaining 20% to 35% is invested in the debt market. This is so because the
debt markets offer a lower risk than the equity market.

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Types of Mutual Funds based on investment objective

Growth funds: Under these schemes, money is invested primarily in equity stocks with the
purpose of providing capital appreciation. They are considered to be risky funds ideal for
investors with a long-term investment timeline. Since they are risky funds they are also ideal
for those who are looking for higher returns on their investments.
Income funds: Under these schemes, money is invested primarily in fixed-income
instruments e.g. bonds, debentures etc. with the purpose of providing capital protection and
regular income to investors.
Liquid funds: Under these schemes, money is invested primarily in short-term or very
short-term instruments e.g. T-Bills, CPs etc. with the purpose of providing liquidity. They
are considered to be low on risk with moderate returns and are ideal for investors with short-
term investment timelines.
Tax-Saving Funds (ELSS): These are funds that invest primarily in equity shares.
Investments made in these funds qualify for deductions under the Income Tax Act. They are
considered high on risk but also offer high returns if the fund performs well.
Capital Protection Funds: These are funds where funds are are split between investment in
fixed income instruments and equity markets. This is done to ensure protection of the
principal that has been invested.
Fixed Maturity Funds: Fixed maturity funds are those in which the assets are invested in
debt and money market instruments where the maturity date is either the same as that of the
fund or earlier than it.
Pension Funds: Pension funds are mutual funds that are invested in with a really long term
goal in mind. They are primarily meant to provide regular returns around the time that the
investor is ready to retire. The investments in such a fund may be split between equities and
debt markets where equities act as the risky part of the investment providing higher return
and debt markets balance the risk and provide lower but steady returns. The returns from
these funds can be taken in lump sums, as a pension or a combination of the two.

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Types of Mutual Funds based on specialty

Sector Funds: These are funds that invest in a particular sector of the market e.g.
Infrastructure funds invest only in those instruments or companies that relate to the
infrastructure sector. Returns are tied to the performance of the chosen sector. The risk
involved in these schemes depends on the nature of the sector.
Index Funds: These are funds that invest in instruments that represent a particular index on
an exchange so as to mirror the movement and returns of the index e.g. buying shares
representative of the BSE Sensex
Fund of funds: These are funds that invest in other mutual funds and returns depend on the
performance of the target fund. These funds can also be referred to as multi manager funds.
These investments can be considered relatively safe because the funds that investors invest in
actually hold other funds under them thereby adjusting for risk from any one fund.
Emerging market funds: These are funds where investments are made in developing
countries that show good prospects for the future. They do come with higher risks as a result
of the dynamic political and economic situations prevailing in the country.
International funds: These are also known as foreign funds and offer investments in
companies located in other parts of the world. These companies could also be located in
emerging economies. The only companies that won9t be invested in will be those located in
the investor9s own country.
Global funds: These are funds where the investment made by the fund can be in a company
in any part of the world. They are different from international/foreign funds because in
global funds, investments can be made even the investor's own country.
Real estate funds: These are the funds that invest in companies that operate in the real estate
sectors. These funds can invest in realtors, builders, property management companies and
even in companies providing loans. The investment in the real estate can be made at any
stage, including projects that are in the planning phase, partially completed and are actually
completed.
Commodity focused stock funds: These funds don9t invest directly in the commodities.
They invest in companies that are working in the commodities market, such as mining
companies or producers of commodities. These funds can, at times,
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Perform the same way the commodity is as a result of their association with their production.
 Market neutral funds: The reason that these funds are called market neutral is that
they don9t invest in the markets directly. They invest in treasury bills, ETFs and securities
and try to target a fixed and steady growth.
 Inverse/leveraged funds: These are funds that operate unlike traditional mutual
funds. The earnings from these funds happen when the markets fall and when markets do
well these funds tend to go into loss. These are generally meant only for those who are
willing to incur massive losses but at the same time can provide huge returns as well, as a
result of the higher risk they carry.
 Asset allocation funds: The asset allocation fund comes in two variants, the target
date fund and the target allocation funds. In these funds, the portfolio managers can adjust
the allocated assets to achieve results. These funds split the invested amounts and invest it in
various instruments like bonds and equity.
 Gilt Funds: Gilt funds are mutual funds where the funds are invested in
government securities for a long term. Since they are invested in government securities, they
are virtually risk free and can be the ideal investment to those who don9t want to take risks.
 Exchange traded funds: These are funds that are a mix of both open and close
ended mutual funds and are traded on the stock markets. These funds are not actively
managed, they are managed passively and can offer a lot of liquidity. As a result of their
being managed passively, they tend to have lower service charges (entry/exit load)
associated with them.

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Types of Mutual Funds based on risk

 Low risk: These are the mutual funds where the investments made are by those
who do not want to take a risk with their money. The investment in such cases are made in
places like the debt market and tend to be long term investments. As a result of them being
low risk, the returns on these investments is also low. One example of a low risk fund would
be gilt funds where investments are made in government securities.
 Medium risk: These are the investments that come with a medium amount of risk
to the investor. They are ideal for those who are willing to take some risk with the
investment and tends to offer higher returns. These funds can be used as an investment to
build wealth over a longer period of time.
 High risk: These are those mutual funds that are ideal for those who are willing to
take higher risks with their money and are looking to build their wealth. One example of
high risk funds would be inverse mutual funds. Even though the risks are high with these
funds, they also offer higher returns.

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Definition Of Key Terms Of Mutual Funds

Average annual total return

Mutual funds in the United States are required to report the average annual compounded
rates of return for one-, five-and ten year-periods using the following formula:

P(1+T)n = ERV

Where:

P = a hypothetical initial payment of ₹1,000

T = average annual total return n =

number of years

ERV = ending redeemable value of a hypothetical ₹1,000 payment made at the beginning of
the one, five, or ten year periods at the end of the one, five, or ten year periods (or fractional
portion).

Market capitalization

Market capitalization equals the number of a company's shares outstanding multiplied by the
market price of the stock. Market capitalization is an indication of the size of a company.
Typical ranges of market capitalizations are:

 Mega cap - companies worth ₹14000 billion or more

 Big/large cap - companies worth between ₹700 billion and ₹14000 billion
 Mid cap - companies worth between ₹140 billion and ₹700 billion
 Small cap - companies worth between ₹21000 million and ₹140 billion
 Micro cap - companies worth between ₹3500 million and ₹21000 million
 Nano cap - companies worth less than ₹50 million

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Net asset value

A fund's net asset value (NAV) equals the current market value of a fund's holdings minus
the fund's liabilities (this figure may also be referred to as the fund's "net assets"). It is
usually expressed as a per-share amount, computed by dividing net assets by the number of
fund shares outstanding. Funds must compute their net asset value according to the rules set
forth in their prospectuses. Most compute their NAV at the end of each business day.

Valuing the securities held in a fund's portfolio is often the most difficult part of calculating
net asset value. The fund's board typically oversees security valuation.

Share classes

A single mutual fund may give investors a choice of different combinations of front- end
loads, back-end loads and distribution and services fee, by offering several different types of
shares, known as share classes. All of them invest in the same portfolio of securities, but
each has different expenses and, therefore, a different net asset value and different
performance results. Some of these share classes may be available only to certain types of
investors.

Typical share classes for funds sold through brokers or other intermediaries in the United
States are:

 Class A shares usually charge a front-end sales load together with a small distribution
and services fee.
 Class B shares usually do not have a front-end sales load; rather, they have a high
contingent deferred sales charge (CDSC) that gradually declines over several years,
combined with a high 12b−1 fee. Class B shares usually convert automatically to
Class A shares after they have been held for a certain period.
 Class C shares usually have a high distribution and services fee and a modest
contingent deferred sales charge that is discontinued after one or two years.

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Class C shares usually do not convert to another class. They are often called "level load"
shares.
 Class I are usually subject to very high minimum investment requirements and are,
therefore, known as "institutional" shares. They are no-load shares.
 Class R are usually for use in retirement plans such as 401(k) plans. They typically do
not charge loads, but do charge a small distribution and services fee.

Portfolio Turnover

Portfolio Turnover is a measure of the volume of a fund's securities trading. It is expressed as

a percentage of average market value of the portfolio's long-term securities. Turnover is the
lesser of a fund's purchases or sales during a given year divided by average long-term
securities market value for the same period. If the period is less than a year, turnover is
generally annualized.

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Benefits Of Investing In Mutual Funds

Professional Management : <Portfolio Manager= invests money on investor9s behalf with

the responsibility of growing it and making profits for unitholders. So investors don9t need
to be an expert on stock fundamentals or market technicalities. Portfolio manager performs
research to unveil new profitable stock ideas. He keeps a tab on economic activities in
regions/countries and accordingly decides his investment exposures.

Diversification : A mutual fund provides diversification by investing in a variety of stocks.

Imagine you want to buy a Google stock which will cost you ~$800 for one stock so it is
expensive. Now think of investing $800 in an MF, that holds Google stock along with many
other stocks. This is a very important advantage in investing through an MF. A typical
portfolio holds between 40-100 stocks depending on the manager9s objective. A manager
invests in stocks of various industries or countries to reduce the risk of losing the money.

Liquidity : Investing in a mutual fund can be considered as closer to holding cash as

investors can sell the units anytime and receive cash. Portfolio manager always keeps cash
handy for redemption requirements. So if you place a sell order today, you will get cash in
next one or two days. The fund documents generally mention the settlement period e.g. T+2
means 2 days from a trading day (T). A portfolio manager also invests a portion of money in
stocks which he can easily sell to meet redemption requests.

Ease of Investing & Affordability : Investing in an MF has become less painful over the
years with the help of technology. Anyone can buy a fund by simply visiting the fund or
broker website. One can buy and sell an MF and perform tasks like generating a statement,
making incremental investments at a click of a button.

Investing in a mutual fund is not very expensive. To open an account minimum amount
could be a $1000 or less. For incremental purchases, the minimum amount is $100. Also,
investors have a choice of investing in a fund through options like systematic investment or
withdrawal which could be used for regular saving or to meet expenses

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1.1.4 Drawback Of Investing In Mutual Funds

Liquidity, diversification, and professional management all make mutual funds attractive
options for younger, novice, and other individual investors who don't want to actively
manage their money. However, no asset is perfect, and mutual funds have drawbacks too.

1. Fluctuating Returns
Like many other investments without a guaranteed return, there is always the possibility that
the value of your mutual fund will depreciate. Equity mutual funds experience price
fluctuations, along with the stocks that make up the fund. The Federal Deposit Insurance
Corporation (FDIC) does not back up mutual fund investments, and there is no guarantee of
performance with any fund. Of course, almost every investment carries risk. It is especially
important for investors in money market funds to know that, unlike their bank counterparts,
these will not be insured by the FDIC.

2. Cash Drag
Mutual funds pool money from thousands of investors, so every day people are putting
money into the fund as well as withdrawing it. To maintain the capacity to accommodate
withdrawals, funds typically have to keep a large portion of their portfolios in cash. Having
ample cash is excellent for liquidity, but money that is sitting around as cash and not
working for you is not very advantageous. Mutual funds require a significant amount of their
portfolios to be held in cash in order to satisfy share redemptions each day. To maintain
liquidity and the capacity to accommodate withdrawals, funds typically have to keep a larger
portion of their portfolio as cash than a typical investor might. Because cash earns no return,
it is often referred to as a "cash drag."

3. High Costs
Mutual funds provide investors with professional management, but it comes at a cost4 those
expense ratios mentioned earlier. These fees reduce the fund's overall payout, and they're
assessed to mutual fund investors regardless of the performance of the fund. As you can
imagine, in years when the fund doesn't make money, these fees only magnify losses.
Creating, distributing, and running a mutual fund is an expensive undertaking. Everything
from the portfolio manager's salary to the investors' quarterly statements
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cost money. Those expenses are passed on to the investors. Since fees vary widely from fund
to fund, failing to pay attention to the fees can have negative long-term consequences.
Actively managed funds incur transaction costs that accumulate over each year. Remember,
every dollar spent on fees is a dollar that is not invested to grow over time.

4. Diversification and Dilution

"Diversification" a play on words is an investment or portfolio strategy that implies too
much complexity can lead to worse results. Many mutual fund investors tend to
overcomplicate matters. That is, they acquire too many funds that are highly related and,
as a result, don't get the risk-reducing benefits of diversification. These investors may have
made their portfolio more exposed. At the other extreme, just because you own mutual funds
doesn't mean you are automatically diversified. For example, a fund that invests only in a
particular industry sector or region is still relatively risky.

5. Active Fund Management

Many investors debate whether or not the professionals are any better than you or I at
picking stocks. Management is by no means infallible, and even if the fund loses money, the
manager still gets paid. Actively managed funds incur higher fees, but increasingly passive
index funds have gained popularity. These funds track an index such as the S&P 500 and are
much less costly to hold. Actively managed funds over several time periods have failed to
outperform their benchmark indices, especially after accounting for taxes and fees.

6. Lack of Liquidity
A mutual fund allows you to request that your shares be converted into cash at any time,
however, unlike stock that trades throughout the day, many mutual fund redemptions take
place only at the end of each trading day.

7. Taxes
When a fund manager sells a security, a capital-gains tax is triggered. Investors who are
concerned about the impact of taxes need to keep those concerns in mind when investing in
mutual funds. Taxes can be mitigated by investing in tax-sensitive funds or by holding non-
tax sensitive mutual funds in a tax-deferred account, such as a 401(k) or IRA.

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8. Evaluating Funds
Researching and comparing funds can be difficult. Unlike stocks, mutual funds do not offer
investors the opportunity to juxtapose the price to earnings (P/E) ratio, sales growth, earnings
per share (EPS), or other important data. A mutual fund's net asset value can offer some
basis for comparison, but given the diversity of portfolios, comparing the proverbial apples
to apples can be difficult, even among funds with similar names or stated objectives. Only
index funds tracking the same markets tend to be genuinely comparable.

1.2 OBJECTIVES OF THE STUDY

 To study and understand parameters for investment in Mutual Fund investment.

 To study the fund management process of mutual funds.
 To study about the regulations governing mutual funds.
 To study the factors affecting Mutual fund choice of Investor.
 To analyze and determine the market position of companies for investment purpose.
 To understand and analyze the investment pattern which exists among investors in mutual
funds from customer perspective.
 To study the characteristics of mutual fund which attracts the investor.
 What an investor should consider for safe investment and better returns.

1.3 SCOPE OF THE STUDY

 To make people aware about concept of mutual fund.
 To provide information regarding advantages and demerits of mutual fund.
 To advice where to invest or not to invest.
 To provide information regarding types of mutual fund this is beneficial for whom.
 The survey was conducted on investors/customers having or not having mutual fund share
covering the area of Navi Mumbai.

1.4 LIMITATIONS OF THE STUDY

 Research cannot be taken for entire population.
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 The data collection was strictly confined to secondary sources. Primary data was associated
with only the survey conducted on the investors.
 Collecting historical NAV is very difficult.
 Selection of schemes for study is very difficult because lot of Varieties in equity Schemes

 To get an insight in the process of risk and return and deployment of funds by fund manager
is difficult.
 The project is unable to analyse each and every equity scheme of mutual funds to create
awareness about risk and return. The risk and return of mutual fund equity schemes can change
according to the market conditions.
 Questionnaire method which is adopted for collecting data has its own limitations.
 It may be hard for participants to recall information or to tell the truth about a controversial
question.
 Sample size is also the limited.
 Some of the respondents of the survey were unwilling to share information.
 Some of the respondents could not answer the questions due to lack of knowledge.
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INTRODUCTION OF SYSTEMATIC INVESTMENT PLAN (SIP)

Systematic Investment Plan (SIP) is a hassle-free method of investment that helps you
achieve your financial goals by investing small sums of money on a periodic basis. It allows
you 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.

In SIPs, a fixed amount of money is debited by the investors in bank accounts periodically
and invested in a specified mutual fund. The investor is allocated a number of units
according to the current Net asset value. Every time a sum is invested, more units are added
to the investors account.

The strategy claims to free the investors from speculating in volatile markets by dollar cost
averaging. As the investor is getting more units when the price is low and fewer units when
the price is high, in the long run, the average cost per unit is supposed to be lower. SIP
claims to encourage disciplined investment. SIPs are flexible; the investors may stop
investing a plan anytime or may choose to increase or decrease the investment amount. SIP
is usually recommended to retail investors who do not have the resources to pursue the active
investment.

In India, a recurring payment can be set for SIP using Electronic Clearing Services (ECS).
Some mutual funds allow tax benefits under equity-linked savings schemes. This, however,
has a lock-in period of three years. When it comes to mutual funds there is a general
misconception that investing in mutual funds means investing in stocks. The same is felt
about SIPs. SIP can be made in an equity, debt or hybrid scheme. This entirely depends on
the investment horizon and risk taking capacity of an individual. SIPs generally work best
for equity and equity-oriented hybrid funds given that these are prone to market fluctuations.
However, for investment discipline, one can also invest in debt funds also. With auto-debit
feature, firstly you don9t need to remember the debit dates as the bank account will get
debited automatically on the date which you have selected for SIP. However, just in case for
whatever reason the funds are not available in the bank account, you will miss one SIP.
There is no penalty or any fee. Your SIP account remains active even if you miss one SIP
date but after multiple misses, it gets cancelled

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Sip Works

With UTI SIP, your amount to be invested will be periodically auto-debited from your bank
account and will be invested into a specific mutual fund scheme. You will be allocated a
particular number of units accordingly, based on the current market rate (net asset value or
NAV in short) for the day.

You also have the option to choose from direct and regular plans. Direct plans are bought
directly from the mutual fund company, whereas a Regular plan is bought through an
intermediary (advisor, broker or distributor).

You can calculate the expected returns on your investment using our easy SIP calculator
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Categories Of Sip Mutual Funds

Plain vanilla regular SIP

This is the simplest form of SIP investing. You typically set up a date for contributing to
the SIP each month. Set a date when you are confident that your salary or commission
will be credited into your bank account. The SIP can be of the amount of your choice
and technically can be as small as Rs500 per month. In case you set 10th as the date for
the SIP, then on that date the amount gets debited and equivalent units of the fund are
allotted to you. The actual date is not too relevant as long as you maintain the discipline.

Stepped up SIP or Top-up SIP

One of the realities of professional life is that your income tends to grow over a period
of time. So, you cannot be sticking to the old savings year after year. One way is to
review your SIP requirements each year and add new SIPs based on your surplus. A more
automated way is to opt for a Stepped up SIP. In this SIP, you commit to increase the SIP
contribution by a certain amount each year and then that SIP amount continues for a full
year. This step-up can be fixed in rupee terms or in percentage terms, but the idea is that
there is an automated solution to invest more as you earn more.

Balloon SIP for interim payments

When you are in a job or a profession, there are two components to your income; fixed
income and variable flows based on performance. How do you ensure that you do not
splurge your bonuses and incentives? The answer could be a balloon SIP. In a balloon SIP,
you build an annual bullet payment around the time of your bonus. So the SIP continues
for the full year and in the month you get the bonus you structure a lump-sum balloon
contribution. Of course, you can also do this manually, but a balloon structure ensures
discipline since you will only spend the balance amount.
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Solution based SIP for planning

Quite a few mutual funds also customize SIPs in such a way that you can have a SIP
solution where the allocation is done by the fund based on your long term goal
requirements. Normally, you define your goals and then structure SIPs accordingly based
on tenure of goal and tag these SIPs to goals. Now if your equity / debt / cash mix is
60:35:5, then you can have a solution based fund and structure a SIP on that solution
accordingly. The only risk is that such solution funds are structured as Fund-of-Funds
(FOF) and entail higher costs.

SIPs with in-built withdrawal facility

This facility is very useful to combine the benefits of SIPs both ways. Broadly, there are
two such combinations. Firstly, if you receive a lump- sum, you can invest the sum in
a liquid fund and swipe a fixed sum into equity funds each month. The liquid fund gives
you better returns than a Bank and the SIP ensures lower average cost.
The second way is to combine a systematic withdrawal plan (SWP) with an SIP. You run
equity SIP for 15 years and then from the 16th to 20th year withdraw systematically from
this corpus. This withdrawal is done by shifting the corpus to a liquid fund. The SWP is
more tax efficient and also does not entail exit loads. That is like hitting two birds with one
stone. SIPs offer a really wide platter and the choice is yours to make.

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Investment In An Sip

One of the prime reasons why you should invest in an SIP is because it brings a sense of discipline
in your investments and cultivates regular saving habits. Saving small and regularly is the
philosophy that an SIP revolves around. It enables the investor to build wealth over a long-term.

Rupee Cost Averaging

SIPs can aid in averaging the cost return ratio. The equity market being volatile in nature will
enable the investor to purchase more units when the price of shares are low and lesser units when
the shares are priced higher.
Power of Compounding
According to the principle of compound interest, any small amount of money when invested for a
longer period of time can get compounded and fetch you good returns. As a result, the investor will
be able to accumulate a large corpus and achieve long- term financial goals by investing small but
at regular intervals.
Is not heavy on the wallet
Investment made through an SIP can be as low as Rs.500. Such a low amount will not burden your
budget and over a period of time, this amount will grow to fetch you substantial returns.
Automated Payments
Even if you are someone who is regular when it comes to making investments, you may sometimes
miss out on making the payments. An SIP eliminates this by automating the payments which means
that every month, a predetermined amount will automatically be deducted from your bank account.
So, there is no way that you would miss out on making the payments.
Funds can be used for emergencies
An SIP offers a one-click withdrawal option where you can withdraw the amount anytime you
want. This fund can be used to meet any contingencies such as job loss, accidents, illnesses, etc.
Eliminates the need for timing the market
Since SIPs are regular investments, you do not have to worry about if the market is performing
good or bad. Over time, even if there have been highs and lows, the performance of the fund will
even out. This will ensure that irrespective of the market volatility, you will be able to enjoy good
returns.

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1.2.1 Advantages Of Sip

Systematic Investment Plan (SIP) is a method to invest in mutual funds through which
you invest a fixed sum periodically in a fund. There are numerous benefits of SIP and
in this article we will discuss about them

1. Stress-Free : The investors who choose to enter or deal with mutual funds
through SIP route do not have to worry about payment or timing the
market. A SIP is set in such a way that the fixed amount and time are set in
the beginning and the process happens automatically. However, the
investor should review the whole process on a periodic basis to stay
updated.

2. Discipline : This is the most important advantage of SIP9s. The investor

who plans to redeem a decent gain from the mutual fund will automatically
save his earnings for SIP monthly payments. This makes it easier for
him/her to manage the fund in long run.

3. Compounding : The major advantage of SIP is its compounding power.

The investor has to pay only a small amount each month for a fixed period
of time. Eventually, the invested amount keeps on growing each month
and the investor does not feel the pain of paying. It is just like a piggy
bank, in the end, you will have a huge amount invested in the mutual fund.

4. Convenience : Normal mutual funds require huge funds from the

investors, but in SIP the investor has to pay only a feasible amount each
month for a fixed time period according to the investor9s convenience.

5. Easy to Invest : SIP amounts can be as less as INR 500 per month.
Investing in a SIP is one of the hassle free processes that automatically
deduct the amount from the assigned bank account. The monthly payments
are so less that the investor will not have a guilt feeling.

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1.2.2 Disadvantages Of Sip

Although they can help an investor maintain a steady savings program, formal
systematic investment plans have several stipulations. While investors are allowed to
quit the plan before the end date, they may incur a hefty sales charges4sometimes as
much as 50% of the initial investment if within the first year. Missing a payment can
lead to plan termination. Systematic investment plans can also be costly to establish.
A creation and sales charge can run up to half of the first 12 months' investments.

1. Does not suit people with unpredictable cash flows

SIP route can opt only if the investor is sure that he/she can pay the fixed
amount every month without fail. If the investor is a person with unpredictable
cash flow, paying the SIP can be messy. He/she might not be able to pay the
SIP monthly.
2. Stopping the payment in between is a nightmare
SIP amounts are automatically deducted from the bank account assigned. If in
case the investor has an emergency and wants to skip the payment a month
SIP does not allow such provisions. If the bank account has the amount, the
amount will be deducted and the only way to stop it is to cancel the SIP. But,
remember once you cancel the SIP you will have to go through a lot of
formalities to restart the SIP and apart from this to cancel the SIP you will
have to inform the institution 2 weeks in advance.
3. Fixed amount
Once the SIP is started a fixed amount has to be paid each month. This
amount, however, is chosen by the investor in the beginning. But, the key
disadvantage is that the amount fixed in the beginning should be paid every
month without fail and the amount cannot be changed or modified under any
circumstances.
4. Dates and time period are fixed and cannot be changed
Once the date and period is fixed on a SIP payment. The date and period
cannot be changed. The bank account should have the amount on the date
assigned in the beginning without fail.
5. Ups or downs investment is uniform
No matter of ups and downs in the market the investor has to pay the fixed
monthly amounts. He/she cannot change the amount or periods.

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1.3 INVESTMENT

 Investment Horizon
Even though SIPs are flexible, it doesn9t mean that the investment horizon can
be shortened. It all depends upon your investment goals and the type of funds
in the SIP portfolio. SIPs with longer investment horizons generally have
better wealth accumulation.
 Risk Appetite
Before investing in SIP, it is very important to understand your risk appetite. It
will be determined based on various factors - age, liquidity needs, nature of
employment, investment horizon and investment goals. Knowing your risk
appetite will help you choose the right SIP to match your goals.
 Exit Load
In SIP, each instalment is taken as a new investment and, hence, you will be
charged an exit load on the NAV, if you withdraw your investment within the
predefined time.
 Volatility
Like all Mutual Funds, SIP is also subject to market risks. However, it is also
one of the best vehicles to counter market volatility due to rupee cost
averaging and long investment horizons. It is highly advisable to read the offer
document carefully before investing.

There are two ways in which one can invest in mutual funds.
 Lump sum payment 3 It is a one shot investment. If one invests the entire
amount he wishes to invest in a single go, it is known as lump sum investment.
 SIP 3 SIP or systematic investment plan is an arrangement in which a pre-
determined small sums of amount is to be invested at a regular interval say daily,
weekly, monthly, quarterly, etc. it is a more systematic approach to investment.
However with the mobile on hand, many mutual fund AMCs and agents have come
up with mutual fund mobile apps to ease the process of investing and to make
investors
feel, <mutual funds sahi hai=.

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1.4 SIP THROUGH APPS

To purchase any Mutual Funds unit from any AMC, all you need to do is to verify
your KYC from any RTA only once. Although you can invest in any AMC up to
Rs.50000/AMC/Year by completing paperless eKYC (Aadhaar OTP based KYC)
from any mutual fund house. (Updates: After the recent Supreme Court verdict on
Aadhaar, 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 Aadhaar
Database for eKYC.)

1. 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
your 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.

2. 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 your investments, manage profile, make decisions and transact instantly
without needing multiple apps offered by different fund houses.

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3. 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.

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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 in this article, 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. Key features include:
Simple design, built with beginners and experts in mind, Dashboard to track all your
investments, annualized returns, and total returns, Top mutual funds list for different
categories with the latest finance news and insights.

4. Paytm Money Mutual Funds App

Paytm Money, offered by the Paytm group, is turning out to be one of the most trusted
platforms in India which provide up to 1% higher returns by investing in Direct Plans
of Mutual Fund Schemes with no commissions or any charges on buying and selling
of direct mutual fund plans. It offers many features to the customer which includes
fully Transparent Tracking, Data Privacy & Protection, Switch from Regular to Direct
Plans, Track, Manage & Automate SIP Investments, etc.

5. KTrack mobile app by Karvy

The primary objective of KTrack mobile app by Karvy is to manage the investments
of its customer in mutual funds. This app offers new ways of investing your money.
With just one-touch login that powers you to invest across thousands of mutual funds.
It provides a single view of your manage profile, investments, make decisions and
lOMoARcPSD|23621599

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transact instantly without needing multiple apps. The app has Enriched UI and many
features like One-touch login or Log In through Facebook/Google account, Enriched
Navigation, provides Portfolio Dashboard, helps in tracking of your transaction, NAV
Tracker, etc

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

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RESEARCH METHODOLOGY

INTRODUCTION

A research is a careful investigation or enquiry, especially through search for new

facts in any branch of knowledge. It is a systemized effort to gain more knowledge.

Research Methodology is a way to systematically solve the research problem. It

includes not only the research methods, but also the logic behind using the methods. The
methods of research used in this project were as follows:-
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SAMPLING

 Sampling unit: The sampling unit for research is Navi Mumbai.

 Sample size: The sample size taken for survey is 100 respondents

 Sampling procedure: Random sampling technique is used in the research.

2.2 TOOLS AND TECHNIQUES

Different types of graphs and charts are used to present the data collected through
questionnaire

Pie charts: Pie charts display data and statistics in an easy-to-understand pie slice format and
illustrate numerical proportion.

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SOURCES OF DATA COLLECTION

SOURCE OF DATA
COLLECTION

PRIMARY DATA SECONDARY DATA

PRIMARY DATA

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

1. Structured questionnaire is used as the research instrument and shared to 100 people
2. Observation method is used for collecting primary data. Observation of market fluctuation and
behaviour of investors is used as a source of collection of data.
3. Respondent characteristics used in this analysis include: name, gender, age, occupation,
investment options, etc.
4. Questionnaire was send through different social medias.

Questionnaire:

The questionnaire contained questions regarding the general and socio-economic characteristics of
the respondents such as age, educational qualification, etc. And various questions asking about the
Awareness about mutual fund, SIPs and apps.

On the basis, of responses from respondents some of the Questions were modified and modified
questionnaire was used to responses from 100 respondents. A sample size of 100 respondents was
used for detailed study because it is not possible to cover whole city for the collecting responses
from respondents. This is type of questionnaire which is segmented to collected relevant and
accurate information relating to the title of research.

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Observation Method:

The collection of primary data was also done by Observation of the investors/customers of
mutual fund. Observation Research is of various types and has various types and has various
strengths and weakness. This type of research is mostly done in social science and marketing
sector. This is social research techniques that involve the direct observation of phenomena

SECONDARY DATA

Secondary data analysis can save time that would otherwise be spent collecting data and,
particularly in the case of quantitative data, can provide larger and higher-quality databases
that would be unfeasible for any individual researcher to collect on their own. In addition,
analysts of social and economic change consider secondary data essential, since it is
impossible to conduct a new survey that can adequately capture past change and/or
developments. However, secondary data analysis can be less useful in marketing research, as
data may be outdated or inaccurate.

 Qualitative method : Content analysis, Thematic analysis, Discourse analysis

 Quantitative method : Sampling method, existing data

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2.8 HYPOTHESIS
 H0- Investor should consider mutual fund safe for investment

 H1- Investor should consider mutual fund is not safe for investment

LITERATURE REVIEW
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. Malkiel, B.J. (1995) says in his study utilizes a unique data set including returns from all equity
mutual funds existing each year. These data enable us more precisely to examine performance and
the extent of survivorship bias. In the aggregate, funds have underperformed benchmark portfolios
both after management expenses and even gross of expenses. Survivorship bias appears to be more
important than other studies have estimated. Moreover, while considerable performance persistence
existed during the 1970s, there was no consistency in fund returns during the 1980s.

2. Louis, K.C and Lakonishok, C.C. (1999) have discussed <they provide an exploratory
investigation of mutual funds9 investment styles. Funds9 styles tend to cluster around a broad
market benchmark. When funds deviate from the benchmark they are more likely to favour growth
stocks with good past performance. There is some consistency in styles, although funds with poor
past performance are more likely to change styles. 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 portfolio characteristics performs better in
predicting future fund returns.2.

3. Carhart,M.M. , Carpenter , J.N. LynchW.A. and Musto.K.D. (2000) they have estimates of the
 lOMoARcPSD|23621599

returns to different mutual fund portfolios for 3-year, 5- year and 10-year holding period
intervals. Finally explained that how the relation between performance and fund characteristics
can be affected by the use of a survivor-only sample and show that the magnitudes of the biases in
the slope coefficients are large for fund size, expenses, turnover and load fees in

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our sample. Because survivorship issues are relevant for many data sets used in finance, the analysis
in this paper has potential applications in areas of financial economics beyond just mutual fund
research.

4. Redman, A.L. and Manakyan,H. (2001) have given information the risk- adjusted returns using
Sharpe9s Index, Treynor9s Index, and Jensen9s. The results show that for 1985 through 1994 the
portfolios of international mutual funds outperformed the U. S. market and the portfolio of U. S.
mutual funds under Sharpe9s and Treynor9s indices. During 1985-1989, the international fund portfolio
outperformed both the U. S. market and the domestic fund portfolio, while the portfolio of Pacific
Rim funds outperformed both benchmark portfolios. Returns declined below the stock market and
domestic mutual funds during 1990-1994.

5. Bullen.& Busse,J.A.(2004) they have given the information that investor cash flows can distort
inference in mutual fund performance. The impact of cash flow on performance can be controlled
for using conditional methods, as in Edelen (1999).

6. Sindhu,K.P.& Kumar,S.R(2008) have discussed that <the stock market provides

higher returns than any of the investment options available in the financial market. A prudent
investor can earn a lot from the stock market operations. But there is a chance of high risk and
uncertainty. As we know, higher the return, higher will be the risk. Those investors with lack of
knowledge and expertise may lose their money while investing in financial assets, especially in
securities. This is where mutual funds come into picture. Mutual Fund is the most suitable
investment for a common man as it offers an opportunity to invest in a diversified professionally
managed basket of securities at a relatively low cost. A mutual fund is an investment company or a
trust that pools the resources of a large number of its9 shareholders and invest on behalf of them in
diversified portfolios to attain the objectives of the investors which in return achieve income or
growth or both. Thus mutual funds become a major investment vehicle for mobilization of
savings particularly

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from small and household sectors for the investment in security market. At present the importance
of mutual funds in India has been increasing in the capital market by expanding the investors9 base.
At the same time, investment in mutual fund is to be considered as a long term investment. Hence,
it is important to know their investment horizon. The present paper tries to understand the
investment horizon by analyzing their periodical investment plans and investment duration.=

7. Sharma P. (2010) In this paper they found that Mutual Funds markets are constantly becoming
more efficient by providing more promising solutions to the investors. Mutual funds industry is
responding at a good pace and understanding the investor9s perception ,still they are continuously
following this race in their attempt to differentiate their products responding to sudden changes in
the economy.

8. Singhal’s .& Goel, M .(July, 2011) : The Empirical result reported that SIP Plans has performed
better than the one time investment .

9. Shelly Singhal (2011) have stated that Systematic Investment Plans (SIP) is among
the most successful financial innovations grown at a fairly rapid pace in emerging markets and
India is no exception to it .

10. Dr. Ravi Visa, (2012) says that mutual funds were not that much known to investors, still investor
rely upon bank and post office deposits, most of the investor used to invest in mutual fund for not
more than 3 years and they used to quit from the fund which were not giving desired results. Equity
option and SIP mode of investment were on top priority in investors9 list. It was also found that
maximum number of investors did not analyze risk in their investment and they were depend upon
their broker and agent for this work.

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11. Paul .T. (July 2012) 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.

12. Amarnath , Dr. .Reddy, R.S. & Krishna,K.T (2012), have observed that if there is broad
agreement that appropriately regulated Mutual Fund activity can play a large part in financial
development in all its dimensions, these barriers can surely be addressed in a collaborative way
between the three stakeholders 3 the investors, the fund managers and the regulators.

13. Tahseen, A.A and Narayana. (2012) have discussed consumer attitudes towards
financial investments have always been a challenge for the finance companies due to limited risk
appetite of consumers which are largely attributed to both cognitive and affective components of
attitude.

14. Kandpa .V & Kavidayal, P.C. (2013) have given the information for restriction of mutual fund
investment in top cities or Urban areas is the lack of awareness level in the rural and semi urban
areas. The absence of product diversification and confusion in the market has been enlarged by the
lack of marketing initiatives for Mutual Funds. The role of mutual fund agents or distributors is to
educate the investor community. Therefore the spread of Mutual Fund market has been limited.

15. Vyas, R. (2013) have mentioned in his study that mutual fund companies should come forward with
full support for the investors in terms of advisory services, participation of investor in portfolio
design, ensure full disclosure of related information to investor, proper consultancy should be given
by mutual fund companies to the investors in understanding terms and conditions of different
mutual fund schemes, such type of fund designing should be promoted that will ensure to satisfy
needs of investors, mutual fund information should be published in investor friendly language and
style, proper system to educate

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investors should be developed by mutual fund companies to analyze risk in investments made
by them, etc.

16. Juwairiya, P.P(2014) 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.

17. Kumar, S.& Kumar. (2014) in their study it is mention that <Mutual fund is a kind of investment
that uses money from many investors to invest in stocks, bonds or other types of investment and the
fund manager decides how to invest the money.

18. Goswami, A.G.(2014) have observed mutual fund investment is a diversified portfolio of
securities, which can include equity securities (such as common and preferred shares), debt
securities (such as bonds and debentures) and other financial instruments issued by corporation and
government, according to the stated investment objectives of fund. The benefit to investor in buying
shares of mutual fund comes primarily from diversification, professional money management and
capital gain and dividend reinvestment at relatively low cost.

19. Azzheurova, K.E. & Bessonova, E.A. (2015): says 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.

20. Joseph G., Telma, M. & Romeo. A. (Feb 2015): 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.

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21. Prabhakaran. (Sep 2015) 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.

22. Sharma,R. (2015) In his study he 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. Graduate respondent are less experienced as
compare to other academic qualified respondents. If investment experience is analyzed on the base
of occupation than it is found that servicemen and professionals are less experienced in compare to
other occupational groups.

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4. DATA ANALYSIS AND INTERPRETATION

1. Gender

Answers % Count
Male 33.2% 33
Female 66.8% 67

33.2

66.8

FemaleMalePrefer not to say

Interpretation:

According to this among people respondents males are 33.2% and females are 66.8%.

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2. Age

Answers % Count
Above 18 32.2% 32

25 years 3 40 years 24% 24

41 years 3 60 years 33.8% 34

Above 60 years 9.2% 9

9.2

32.2

33.8

24

Above 1825−4041 − 60Above 60

Interpretation:
Majority of the people responded is belongs to above 18 years i.e. 32.20%. 24%
people respondents are belongs to 25 years 3 40 years, 33.8% people respondents are
belongs to 41 years 3 60 years and 9.2% belongs to above 60 years category of age
group.

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3. Occupation

Answers % Units

Salaried 66.2% 66

Business 9.2% 9

Student 16.9% 17

Homemaker 4.6% 5

Retired 3.1% 3

4.6 3.1

16.9

9.2

66.2

salaried BusinessStudentHomemakerRetired

Interpretation:
According to this diagram among people respondents 66.2% are Salaried, 9.2% are
Business, 16.9% students, 4.6% are home maker and 8.1% are Retired.

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

Answers % Units

Below 2 Lakhs 38.5% 38

2- 10 Lakhs 40% 40

11- 20 Lakhs 10.8% 11

Above 20 Lakhs 10.8% 11

10.8

10.8
38.5

40

Below 2 Lakhs2−10 Lakhs11 − 20 LakhsAbove 20 Lakhs

Interpretation:

According to this diagram among people respondents 38.5% are earning below
2,00,000 , 40% are earning 2,00,000 3 11,00,000 , 10.8 % are earning 11,00,000 3
20,00,000 and 10.8% are earning above 20 lakhs.

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income ?
5. What is the percentage of savings from your total

Answer % Units
<=25% 60 60
<=50% 30.8 31
<=75% 9.2 9

9.2

30.8

60

<=25%<=50%<=75%

Interpretation

According to this diagram among people respondents 60% are saving more
than or equal to 25% of their income , 30.8% are saving more than or
equal to 50 of their income and 9.2% are saving more than or equal to 75%
of their income

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6. Do you invest in Mutual funds ?

Answer % Units
Yes 47.7 48
No 52.3 52

47.7

52.3

YesNo

Interpretation:

According to this diagram, among people respondents 47.7% said yes and 52.30%
said no.

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7. Do you follow SIP?

Answer % Units
Yes 43.1 43
No 35.4 35
Maybe 21.5 22

21.5

43.1

35.4

YesNoMaybe

Interpretation

According to this diagram among people respondents 43.1% people follow

sip , 35.4% people do not follow sip , 21.5% people follow it or not.

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8. While investing your money, which factor do you prefer

the most ?

Answer % Units
Liquidity 31.3 32
Company Reputation 25 25
High Risk 2 2
Low risk 40.6 41

31.3
40.6

2 25

Liquidity Company reputation High risk Low risk

Interpretation
According to this diagram among people respondents 31.3% people prefer
liquidity factor for investing money, 25% people prefer company
reputation factor for investing money, 2% people prefer high risk factor for
investing money,40.6% people prefer low risk factor for investing money.

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9. In which mutual fund would you like to invest ?

Answer % Units
Private 50.8 51
Public 49.2 49

49.2
50.8

PublicPrivate
Interpretation

According to this diagram among people respondents 50.8% people prefer

public sector for investing money and 49.2% people prefer private
company for investing money.

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10.Which factor do you consider before investing?

Answer % Units
Safety of principal 44.4 45
Low risk 31.7 32
High risk 2 2
Maturity period 20.6 21

20.6

2 44.4

31.7

Safety of principalLow risk High risk Maturity period

Interpretation
According to this diagram among people respondents 44.4% people prefer
safety of principal factor before investing money, 31.7% people prefer low
risk factor before investing money investing money, 2% people prefer high
risk factor before investing money investing money, 20.6% people prefer
maturity factor before investing money investing money.

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11.What is the satisfaction level with your investment made

in stock market?

Answer % Units
Highly satisfied 29.5 30
Satisfied 45.9 46
Not satisfied 24.6 25

24.6
29.5

45.9

Highly satisfied Satisfied Not satisfied

Interpretation

According to this diagram among people respondents 29.5% people are

highly satisfied with the investment made in stock market, 45.9% people
are satisfied with the investment made in stock market and 24.6% people
are highly satisfied with the investment made in stock market.

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12.How often do you invest?

Answer % Units
Daily 6.6 7
Weekly 6.6 7
Monthly 41 41
Occasionally 45.9 46

6.6
6.6

45.9

41

DailyWeeklyMonthlyOcassionaly

Interpretation
According to this diagram among people respondents 6.6% people
invest daily, 6.6% people invest weekly, 41% people invest
monthly, 45.9% people invest occasionally.

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13.What is the time period you prefer to invest?

Answer % Units
Short term 23.3 23
Medium term 46.7 47
Long term 30 30

23.3
30

46.7

Short term Medium term Long term

Interpretation

According to this diagram among people respondents 23.3% people

invest in short term period, 46.7% people invest in medium term
period and 30% people invest in long term period.

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14.Do you use app to invest in sip ?

Answer % Units
Yes 35.5 36
No 64.5 65

35.5

64.5

YesNo

Interpretation

According to this diagram among people respondents 35.5% people

use app for sip, 64.50% people do not use app for sip.

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15. Which application do you use ?

Answer % Units
Groww 9.5 10
MyCAMS 7.9 8
KFinKart 4.8 5
ETMONEY 4.8 5
PayTM 6.3 6
KTrack 4.8 5
Other 61.9 62

9.5

7.9

4.8
4.8

6.3
61.9
4.8

Groww myCAMSKFinKartETMONEY
PayTMKTrackOther

Interpretation

According to this diagram among people respondents 9.5% people

use grow,7.9% people use myCAMS, 4.8% people use KFinKart,
4.8% people use ETMONEY, 6.3% people use Paytm, 4.8% people
use KTrack, 61.9 use other apps.

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16. Rate the customer services of the Apps

Answer % Units
Great 11.9 12
Good 45.8 46
Ok 35.6 36
Poor 1.7 2
Terrible 5.1 5

1.7
5.1
11.9

35.6

45.8

GreatGoodOkPoorTeribble

Interpretation

According to this diagram among people respondents rated the app service 11.9%
people rated great, 45.8% people rated good, 35.6% people rated ok, 1.7% people
rated as poor, 5.1% people rated terrible.

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17. How would you describe SIP Mutual Funds ?

Answer % Units
Fine 36.7 37
Great 35 35
Life saving 21.7 22
Worst 6.7 7

6.7

21.7 36.7

35

Fine, But has some issuesGreatLife savingWorst

Interpretation

According to this diagram among people respondents 36.7% people described SIP
Mutual Funds as Fine, but has some issues, 35% described SIP Mutual Funds as
great, 21.7% described SIP Mutual Funds as lifesaving, 6.7% described SIP Mutual
Funds Fine as worst

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18.Which 2 features of the Apps are the most valuable to

you ?

Answer % Units
Customer satisfaction 42.60 24
Easy market survey 26.20 15
Best investment option 31.10 18
Easy access to money 23 13
Paperless transaction 14.80 8
Time saving 39.30 22

39.30% 42.60%

14.80%
26.20%

23%
31.10%

Customer SatisfactionEasy market survey

Best Investment Option Easy access to money Paperless transactiomTime saving

Interpretation:
According to the above diagram people respondents 42.60% of people like feature of
customer satisfaction, 26.20% of respondent like features of easy market survey,
31.10% of people respondent like feature of best investment option, 23% of people
like feature of easy access to money, 14.80% people respondents like features of
paperless transaction, 39.30% respondent like the features of time saving.

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19. Which mode of operation do you prefer?

Answer % Units

60.3 60
Through apps

39.7 38
Through agents

39.7

60.3

Through agents Through apps

Interpretation

According to this diagram among people respondents 39.7% peoples mode of

operation is through agents, 60% peoples mode of operation is through apps.

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5.FINDINGS, CONCLUSION AND SUGGESTIONS

5.1 FINDINGS

 33.2% are males respondent and 66.8% are female respondent.

 32.20% are above the age 18 respondents, 24% people respondents are
belonging to 25 years to 40 years, 33.8% people respondents are
belonging to 41 years to 60 years and 9.2% belongs to above 60 years
category of age group.
 38.5% of the respondents belong to the income group of below 2
Lakhs and 40% of the respondents belong to the income group of
2-11 lakhs. The respondents which belong to 11-20 Lakhs is
10.8% and 10.8% of the respondents belong to the income group
of above 20 Lakhs.
 66.2% of the respondents belong to Salaried group, 9.2% of the
respondents belong to Business, 16.9% of the respondents belong to
students category, 4.6% of the respondents are home maker and 8.1%
of the respondents are Retired personals.
 60% respondent are saving more than or equal to 25% of their income ,
30.8% respondent are saving more than or equal to 50 of their income
and 9.2% respondent are saving more than or equal to 75% of their
income
 47.7% respondent invest in mutual funds and 52.30% respondent do
not invest in mutual funds.
 43.1% people follow sip , 35.4% people do not follow sip , 21.5%
people may follow it or not.
 31.3% people prefer liquidity factor for investing money, 25% people
prefer company reputation factor for investing money, 2% people
prefer high risk factor for investing money,40.6% people prefer low
risk factor for investing money.
 50.8% people prefer public sector for investing money and 49.2%
people prefer private company for investing money.

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 44.4% people prefer safety of principal factor before investing money,

31.7% people prefer low risk factor before investing money investing
money, 2% people prefer high risk factor before investing money
investing money, 20.6% people prefer maturity factor before investing
money investing money.
 29.5% people are highly satisfied with the investment made in stock
market, 45.9% people are satisfied with the investment made in stock
market and 24.6% people are highly satisfied with the investment
made in stock market.
 6.6% people invest daily, 6.6% people invest weekly, 41% people
invest monthly, 45.9% people invest occasionally.
 23.3% people invest in short term period, 46.7% people invest in
medium term period and 30% people invest in long term period.
 35.5% people use app for sip, 64.50% people do not use app for sip.
 11.9% people rated great, 45.8% people rated good, 35.6% people
rated ok, 1.7% people rated as poor, 5.1% people rated terrible.
 9.5% people use grow,7.9% people use myCAMS, 4.8% people use
KFinKart, 4.8% people use ETMONEY, 6.3% people use Paytm,
4.8% people use KTrack, 61.9 use other apps.
 36.7% people described SIP Mutual Funds as Fine, but has some
issues, 35% described SIP Mutual Funds as great, 21.7% described
SIP Mutual Funds as lifesaving, 6.7% described SIP Mutual Funds
Fine as worst.
 42.60% of people like feature of customer satisfaction, 26.20% of
respondent like features of easy market survey, 31.10% of people
respondent like feature of best investment option, 23% of people like
feature of easy access to money, 14.80% people respondents like
features of paperless transaction, 39.30% respondent like the features
of time saving.
 39.7% peoples mode of operation is through agents, 60% peoples
mode of operation is through apps.

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5.2 SUGGESTION

 Mutual fund is one of the best securities in the capital market.

 It provides good returns in mutual fund securities.

 Mutual fund is also one of the taxes saving scheme.

 There is lack of awareness among people about mutual funds so there should
be more advertising and other promotional campaigns to make them aware.

 People are more interested in investing in equity funds rather than debt funds
because companies are promoting more for equity funds.

 Companies should equally promote debt funds also as the provide security to
customers.

 Companies should give knowledge to its customer about its computerized

operations to save their time and to make the operations more easy.

 Identify your investment needs. Your financial goals will vary, based on your
age lifestyle, financial independence, family commitments, level of income
and expenses many other factors.

 There is a need of regular income or need to buy a home or finance a wedding

or educate children or a combination of all these needs.

 How much risk willing to take? only take a minimum amount of risk or I am
willing to accept the fact that my investment values may fluctuate or that there
may be a short term loss in order to achieve a long term potential gain.

 What are my cash flow requirements? There should be a regular cash flow or I
need a lump sum amount to meet a specific need after a certain period or By
going through such an exercise, you will know what you want out of your

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investment and can set the foundation for a sound mutual fund investment
strategy.

 Choose the right mutual fund. Once you have clear strategy in mind, you now
have to choose which mutual fund and scheme you want to invest in. The offer
document of the scheme tell you its objectives and provided supplementary
details like the track record of other schemes managed by the same fund
manger.

 Select the ideal mix of schemes Investing in just one Mutual Fund scheme
may not meet all your investment needs. You may consider investing in a
combination of schemes to achieve your specific goals. The following charts
could prove useful in selecting a combination of schemes that satisfy your
needs.

 Invest Regularly this approach that works best is to invest a fixed amount at
specific intervals, say every month. By investing a fixed sum each month, you
buy fewer units when the price is higher and more units when the price is low,
thus bringing down your average cost per unit. This is called rupee cost
averaging and is a disciplined investment strategy followed by investors all
over the world. With many open ended schemes offering systematic investors
strategy followed by investors9 plans, this regular investing habit is made easy
for you.

 Keep your taxes in mind As per the current tax laws, dividends/ income
distribution made by mutual fund is exempt from income tax in the hands of
investors. Further, there are other benefits available for investment in Mutual
Fund under the provisions of prevailing tax laws. An investor therefore should
consult their chartered accountant or tax advisor for specific advice to achieve
maximum tax efficiency by investing in Mutual Funds.

 Start early It is desirable to start investing early and stick to a regular

investment plan. If you start now you will make more than if you wait and
invest later. The power of compounding lets your earn income on income and
your money multiplies at a compounded rate of return

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 Financial goals vary, based on Investors age, lifestyle, financial independence,

family commitment and level of Income and expenses among many other
factors. Therefore, it is necessary for Mutual Funds Companies to assess the
consumer’s need.

 They should begin by defining their investment objectives and needs which
could be regular income, buying a home or finance a wedding or education of
children or a combination of all these needs, the quantum of risk, they are
willing to take and their cash flow requirements.

 Mutual Investors should choose the right Mutual Fund Scheme which suits
their requirements. The offer document of the Mutual Fund Scheme should be
thoroughly read and scrutinized. Some factors to evaluate before choosing a
particular Mutual Fund are the track record of the performance of the fund
over the last few years in relation to the appropriate yard stick and similar
funds in the same category.

 Other factors could be the portfolio allocation, the dividend yield and the
degree of transparency as reflected in the frequency and quality of their
communications. Investing in one Mutual Fund scheme may not meet all the
investment needs of an investor. They should consider investing in a
combination of schemes to achieve their specific goals.

 It is suggested that the investors should not consider only one or two factors
for investing in mutual fund but they should consider other factors such as
higher return, degree of transparency, efficient service, fund management and
Reputation of mutual fund in selection of mutual funds. The best approach for
an investor is to invest a fixed amount at specific intervals, say every month.
By investing a fixed sum each month, they can buy fewer units when the price
is higher and more units when the price is low, thus bringing down the average
cost per unit. This is called rupee cost averaging.

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 Systematic investment plan facility is one such plan, incorporating these

features. It is desirable to start investing early and stick to a regular investment
plan. The power of compounding lets one earn income on income and also the
money multiplies at a compounded rate of return. A Mutual fund investor
should be aware of his rights. The agents or financial advisors should make
investors aware of their rights as per the SEBI (Mutual Funds) Regulations &
Regarding AMFI.

 A unit holder in a Mutual Fund scheme governed by the SEBI (Mutual Funds)
Regulations is entitled to:

a) Receive unit certificates of statements of accounts confirming the title within 6

weeks from the date of closure of the subscription or within 6 weeks from the
date of request for a unit certificate is received by the Mutual Fund.
b) Receive information about the investment policies, investment objectives,
financial position and general affairs of the scheme.
c) Receive dividend within 42 days of their declaration and receive the
redemption or repurchase proceeds within 10 days from the date of
redemption or repurchase.
d) Vote in accordance with the Regulations to:
i. Approve or disapprove any change in the fundamental investment policies of
the scheme, which are likely to modify the scheme or affect the interest of the
unit holder.
ii. The dissenting unit holder has a right to redeem the investment.
iii. Change the Asset Management Company.
iv. Wind up the schemes.
e) Inspect the documents of the Mutual Funds specified in the scheme9s offer
document.

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CONCLUSION

On the basis of this study, I 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 investors,
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 purpose. Most Advisors are now
suggesting mutual fund.

Today Advisors are keeping full of knowledge of all investment instruments. And
their researches allow them to suggest Mutual Fund as Investment Avenue. Still some
advisers have not 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 unasserted returns. 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 Advisers follow their clients
and provide post- investment advisory services too. 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;

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companies may default in payment of interest /principal on 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, skilful management can minimize risk. Mutual
Funds help to reduce risk through diversification and professional management. 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, its 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 lump
sum will give better return. It all depends on fund managers and AMC.

According to survey, more than 50% people say that they will choose SIP to invest in
Mutual fund. 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.

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5.3 BIBLIOGRAPHY

1. 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
2. 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).
3. Sharma, S.(2015): <ELSS Mutual Funds in India: Investor Perception and
Satisfaction=, International Journal of Finance and Accounting , 4(2): 131-139
4. Sindhu, K.P.,& Kumar, S. R.(2014): <Investment horizon of mutual fund
investors=, Geinternational journal of management research,Vol.2, No.8
5. 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.
6. 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
7. Zenti, R.(2014): <Are lump sum investments riskier than systematic
investment plans?=
8. www.amfiindia.com
9. www.indianresearchjournals.com
10. www.wikipedia.com
11. www.investopedia.com

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Annexure

SIP Questionnaire
*Required

1. Name *

2. Gender *

Female

Male

Prefer not to say

3. Age *

Above 18

25-40

41 - 60

Above 60

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4. Occupation *

salaried

Business

Student

Homemaker

Retired

5. Which income group do you belong (per annum)? *

Below 2 Lakhs

2-10 lakhs

11-20 lakhs

Above 20 lakhs

6. What is the percentage of savings from your total income ? *

<=25 %

<= 50 %

<= 75 %

7. Do you invest in Mutual funds ? *

Yes

No

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8. Do you follow SIP?

* Yes

No

Maybe

9. While investing your money, which factor do you prefer the most ?

Liquidity

Company Reputation

High risk

Low risk

10.In which mutual fund would you like to invest ?

Private

Public

11. Which factor do you consider before investing?

Safety of principal

Low risk

High risk

Maturity period

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12. What is the satisfaction level with your investment made in stock market ?

Highly satisfied

Satisfied

Not satisfied

13. How often do you invest?

Daily

Weekly

Monthly

Occasionally

14. What is the time period you prefer to invest?

Short term (0-1 yr)

Medium term (1-5 yrs)

Long term ( > 5 yrs)

15. Do you use app to invest in sip ?

Yes

No

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16. Which application do you use ?

Groww
myCAMs mutual
KFinKart- Investor Mutual Fund

ETMONEY Mutual Fund App

Paytm Money Mutual Funds App

KTrack mobile app by Karvy

Other

17. Rate the customer services of the

Apps Great

Good

Ok

Poor

Terrible

18. How would you describe SIP Mutual Funds ?

Fine, But has

some issues
Great life Saving
Worst

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19. Which 2 features of the Apps are the most valuable to you ?

Customer satisfaction
Easy market survey
Best investment option
Easy access to money
Paperless
Time Saving

20. Which mode of operation do you prefer?

Through agent

Through apps

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