“A PROJECT REPORT ON STUDY OF MUTUAL FUND

WITH RESPECT TO SYSTEMATIC INVESTMENT PLAN

(SIP)”

submitted to

H. & G. H. Mansukhani Institute of

Management in partial fulfillment of the
requirements for Master in Management
Studies

By
SHILPA SUBHASH TAYADE
Roll No:88
Specialization: FINANCE
Batch: 2021 – 2023

Under the guidance Of

MRS . KRISHIKA CHANDWANI

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 “A PROJECT REPORT ON STUDY OF
MUTUAL FUND WITH RESPECT TO
SYSTEMATIC INVESTMENT PLAN (SIP)”

submitted to

H. & G. H. Mansukhani Institute of Management in

partial fulfilment of the requirements for Master in
Management Studies

By

SHILPA SUBHASH TAYADE

Roll No: 88
Specialization: FINANCE

Batch: 2021 - 2023

Under the guidance of

MRS . KRISHIKA CHANDWANI

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 H. & G. H. Mansukhani Institute of
Management Ulhasnagar

FUNCTIONAL SPECIALIZATION

Student’s Declaration

I hereby declare that this report is submitted in partial fulfillment of the requirement of MMS Degree
of University of Mumbai to H. & G. H. Mansukhani Institute of Management. This is my original work
and is not submitted for award of any degree or diploma or for similar titles or prizes.

Name : Shilpa Subhash Tayade

Class : SYMMS

Roll No. : 88

Place : Ulhasnagar

Date : 27/05/2023

Students Signature :

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 Index
Chapters Particulars Page
number
1 Introduction 1-28
1.1 Introduction To Mutual Funds 1
1.1.1 History Of Mutual Funds 2
1.1.2 Primary Structure Of Mutual Funds 4
1.1.3 Definition Of Key Terms Of Mutual 9
Funds
1.1.4 Benefits Of Investing In Mutual Funds 11
1.1.4a. Advantages To Investors 12
1.1.5 Drawback Of Investing In Mutual fund 13
1.1.5b. Disadvantages To Investors 15
1.1.6 Investment Objectives Of Mutual Funds 16
1.2 Introduction To Systematic Investment Plan 18
1.2.1 How SIP Works ? 19
1.2.2 Categories Of SIP Mutual Funds 20
1.2.3 Why Should One Invest In An SIP? 22
1.2.4 Advantages Of SIP 23
1.2.5 Disadvantages Of SIP 24
1.3 Investment 25

1.4 SIP Through Apps 26

2 Research Methodology 29-33

2.1 Introduction 29
2.2 Objectives 29
2.3 Scope Of The Subject 29
2.4 Sampling 30
2.5 Tools & Techniques 30
2.6 Sources Of Data Collection 30
2.7 Primary Data 30
2.7a Questionnaire 31
2.7b Observation Method 31

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 2.8 Secondary Data 32
2.9 Limitation Of The Study 32
2.10 Hypothesis 33
3 Literature Review 34-39
4 Data Analysis And Interpretation 40-63

5 Findings, Conclusion And Suggestion 64-73

5.1 Findings 64
5.2 Conclusion 66
5.3 Suggestion 68
5.4 bibliography 73
Annexure 74-79
 1. INTRODUCTION

1.1 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 plansgoes 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 wealthcreation.

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
onmutual fund redemptions is also straightforward, making it easy for individuals to
manage.

1.1.1 History Of Mutual Funds

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 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 prospectiveinvestors
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 theSecurities 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).

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

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 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, variousindustry
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 ofwhich surged in popularity in
the 1980s.

In 2003, the mutual fund industry was involved in a scandal involving unequaltreatment
of fund shareholders. Some fund management companies allowed favoured investors
to engage in late trading, which is illegal, or market timing, which is a practiceprohibited
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 studyabout
German mutual funds Gomolka (2007) found statistical evidence of illegal time zone
arbitrage in trading of German mutual funds. Though reported to regulators BaFinnever
commented on these results.

1.1.2 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

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 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.

a) 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 longas
they want. There are no limits on how much can be invested in the fund. They alsotend
to be actively managed which means that there is a fund manager who picks theplaces
where investments will be made. These funds also charge a fee which can behigher 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 withdrawtheir
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 providefor
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 theprevailing
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.

b) 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.

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 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 fundsfor
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% ofthe
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.

c) 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

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 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.

d) 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 dependon
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 inthe 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.

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 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 estatecan
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,
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 marketsdo 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 returnsas 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 amountsand 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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 e) Types of Mutual Funds based on risk

 Low risk: These are the mutual funds where the investments made are by those whodo
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 tothe
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 exampleof high
risk funds would be inverse mutual funds. Even though the risks are high with these
funds, they also offer higher returns.

1.1.3Definition 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).

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 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

 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.

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 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.

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.

1.1.4 Benefits Of Investing In Mutual Funds

1. Professional Management : Portfolio Manager invests money on investors

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

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 2. 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.
3. Liquidity : Investing in a mutual fund can be considered as closer to holding cashas
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.
4. 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

1.1.4 Advantages To Investors

1. Increased diversification
Mutual funds spread their holdings across a number of different investment vehicles,
which reduces the effect any single security or classof securities will have on the
overall portfolio. Because mutual funds can contain hundreds or thousands of
securities, investors aren9t likely to be fazed if one of the securities doesn9t do well.

2. Daily liquidity
Mutual funds, unlike some of the individual investments they may hold, can be traded
daily. Though not as liquid as stocks, which can be traded intraday, buy and sell orders
are filled after market close.

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 3. Professional investment management
Open-and closed-end funds hire portfolio managers to supervise the fund'sinvestments.

4. Reinvestment of Income
Another benefit of mutual funds is that they allow you to reinvest your dividends and
interest in additional fund shares. In effect, this allows you to take advantage of the
opportunity to grow your portfolio without paying regular transaction fees for
purchasing additional mutual fund shares.

5. Service and convenience

Funds often provide services such as check writing.

6. Government oversight
Mutual funds are regulated by a governmental body.

7. Transparency and ease of comparison

Not All mutual funds are required to report the same information to investors, which
makes them easier to compare to each other.

1.1.5 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

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 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
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"4a play on words4is 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.

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 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.

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.
1.1.5 Disadvantages To Investors

1. No Control Over Portfolio

If you invest in a fund, you give up all control of your portfolio to the mutual fund
money managers who run it.
2. Capital Gains

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 Anytime you sell stock, you9re taxed on your gains. However, in a mutual fund,
you9re taxed when the fund distributes gains it made from selling individual holdings
3 even if you haven9t sold your shares.
3. Fees and Expenses
Some mutual funds may assess a sales charge on all purchases, also known as a <load=
3 this is what it costs to get into the fund. Plus, all mutual funds charge annual expenses,
which are conveniently expressed as an annual expense ratio 3 this is basically the cost
of doing business.
4. Over-diversification
Although there are many benefits of diversification, there are pitfalls of being over-
diversified. Think of it like a sliding scale: The more securities you hold, the less likely
you are to feel their individual returns on your overall portfolio.
5. Cash Drag
Mutual funds need to maintain assets in cash to satisfy investor redemptions and to
maintain liquidity for purchases. However, investors still pay to have funds sitting in
cash because annual expenses are assessed on all fund assets, regardless of whether
they9re invested or not.

1.1.6 Investment Objectives Of The Mutual Fund

Kid9s college education or marriage, retirement planning or medical expenses are some
of the things many of us are planning through our working lives. I would like to list a
few investment objectives of Mutual funds below that may help readers in making an
investment decision.

 Goal-Based Investing : This is the top investment objective of Mutual fund. As

mentioned above, one can plan future expenses and invest accordingly. Many fund
complexes offer <Target Date Funds= or customized <Fund of Fund= which basically
allocates the assets to equity and bond MF9s. Differencebetween two is target date
funds are non-discretionary i.e. investor can only invest in one of the available plans
and can9t choose the exposure according to his/her needs. Fund of Funds could be
dynamic and invests according to target asset mix suitable for investors after looking at

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 his/her risk profile and liabilitiesetc. However, the mix will be rebalanced as the holder
is approaching the targetdate. The basic rule is to invest more money in equities and as
a holder grows old; allocate more money to debt mutual fund e.g. at 30 years old
investor should invest a 30% in debt and a 70% in equities (this is a thumb rule).

 Investment Growth : Many mutual funds investment objectives nclude Investment

Growth model. Investors who are retirement ready and looking for aggressive returns
can do so by taking some extra risk. Mutual Fund sufficing this objective invests money
in fast-growing companies like small caps or companies with positive trends in stock
price (price momentum) etc.

Tax Savings : Tax Savings is also one of the popular investment objectives of Mutual
fund. Mostly wealthy clients, Institutional investors, and corporates have an objective
to minimize the tax outlays. Taxes can eat into returns makingit negative or trivial. Citing
the importance of after-tax returns, few products can help investors gaining the 8tax
alpha9. These products are built by combinations of MFs, Index funds or ETF9s and
stocks or bonds. Typically individual account is handled by an investment manager
who knows the longand short-term tax implications. Buying and selling is driven by tax
alpha gains.
Suppose you are holding fund A and Fund B then

 If you have capital gains in both A&B, you will be taxed for both at applicable income
tax.
 If you have a capital gain in A and loss in B, then you can set off the losses against the
gains of A and thus reduce the tax liability.

Thus by taking appropriate exposures, tax outgo can be optimized to produce overall
gains in An account.

 Marketability/Liquidity : Many of the investments we have discussed are reasonably

illiquid, which means they cannot be immediately sold and easily converted into cash.
Achieving a degree of liquidity, however, requires the sacrifice of a certain level of
income or potential for capital gains.
 Income :The safest investments are those likely to have the lowest rate of income return

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 or yield. Investors must inevitably sacrifice a degree of safety if they want to increase
their yields. As yield increases, so does the risk.
 Fund Types : There are three basic types of mutual funds. Equity funds invest
exclusively in stock. Fixed-income funds invest in bonds, and money market funds
invest in Treasury bills and short-term, liquid, high-quality securities. Allmutual funds
are made up of one or more of these three asset classes. Funds aresometimes named,
ostensibly, for their objective and have catchy names such as Global, International,
Growth and Overseas. Evaluate the prospectus rather than drawing a conclusion from
the fund's title
.

1.2 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.

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 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

1.2.1 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)

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 You can calculate the expected returns on your investment using our easy SIP calculator

1.2.2 Categories Of Sip Mutual Funds

 Plain vanilla regular SIP

This is the simplest form of SIP investing. You typically set up a date forcontributing
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 asRs500 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.

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 Stepped up SIP or Top-up SIP
One of the realities of professional life is that your income tends to growover 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 bya 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 answercould 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.

 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 intoequity funds each month. The liquid

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 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.

1.2.3 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 byautomating
the payments which means that every month, a predetermined amount will
automatically be deducted from your bank account. So, there is no way that youwould
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

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 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.

1.2.4 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 automaticallysave his earnings for SIP
monthly payments. This makes it easier for him/herto 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 andthe 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.

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

1.2.5 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 amountevery
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 SIPdoes not allow
such provisions. If the bank account has the amount, the amountwill be deducted and
the only way to stop it is to cancel the SIP. But, rememberonce you cancel the SIP you
will have to go through a lot of formalities to restartthe 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

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 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.

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 entireamount
he wishes to invest in a single go, it is known as lump sum investment.

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 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 upwith mutual fund mobile apps to ease the process of investing and to
make investors feel, <mutual funds sahi hai=.

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.)

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.

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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Zerodha Coin

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

ETMONEY Mutual Fund App

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

Groww- Mutual Funds App

Groww app is one of the fastest-growing apps in the Indian mutual fund industry. Andthe 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 inmind, 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

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

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 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.

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 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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 2. RESEARCH METHODOLOGY

2.1 INTRODUCTION

A research is a careful investigation or enquiry, especially through search foe 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.

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

2.2 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 investorsin

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.

2.3 SCOPE OF THE STUDY

 To make people aware about concept of mutual fund.

 To provide information regarding advantages and demerits of mutual fund.

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 To advice where to invest or not to invest.

 To provide information regarding types of mutual fund this is beneficial forwhom.

 The survey was conducted on investors/customers having or not having mutualfund

share covering the area of Thane

2.4 SAMPLING

 Sampling unit: The sampling unit for research is Thane.

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

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

2.5 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.

2.6 SOURCES OF DATA COLLECTION

SOURCE OF DATA COLLECTION

PRIMARY DATA SECONDARY DATA

PRIMARY DATA

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 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.

2.7 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.

2.7 b 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

2.8 SECONDARY DATA

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 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

2.9 LIMITATIONS OF THE STUDY

 Research cannot be taken for entire population.

 The data collection was strictly confined to secondary sources. Primarydata 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 mutualfunds 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.
2.10 HYPOTHESIS

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 H0- Investor should consider mutual fund safe for investment

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

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 LITERATURE REVIEW

A large number of studies on the growth and financial performance of Mutual

Fundhave been carried out during the past, in the developed and developing countries.
Briefreviews of the following research works reveal the wealth of contributions towards
theperformance 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 tendto 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 pastperformance 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 returns to different mutual fund portfolios for 3-year, 5-year and 10-
year holding period intervals. Finally explained that how therelation 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 theslope coefficients are large for
fund size, expenses, turnover and load fees in our sample. Because survivorship issues are
relevant for many data sets used infinance, the analysis in this paper has potential applications
in areas of financialeconomics beyond just mutual fund research

34 | P a g e
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 fundsduring 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).

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 knowledgeand 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 ora 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 theinvestors which in return achieve
income or growth or both. Thus mutual fundsbecome a major investment vehicle for
mobilization of savings particularly 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, investmentin 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.=

6. 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.

35 | P a g e
 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.

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

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

9. 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 foundthat maximum number of investors did not
analyze risk in their investment andthey were depend upon their broker and agent for
this work.

10. 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 tothe 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.

11. Amarnath , Dr. .Reddy, R.S. & Krishna,K.T (2012), have observed that if there is
broad agreement that appropriately regulated Mutual Fund activity canplay a large part
in financial development in all its dimensions, these barriers can surely be addressed in
a collaborative way between the three stakeholders3 the investors, the fund managers
and the regulators.

12. Tahseen, A.A and Narayana. (2012) have discussed consumer attitudes towards
financial investments have always been a challenge for the finance companies due to

36 | P a g e
 limited risk appetite of consumers which are largely attributed to both cognitive and
affective components of attitude.

13. 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.

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 promotedthat will ensure to satisfy needs of investors, mutual fund
information should be published in investor friendly language and style, proper
system to educate investors should be developed by mutual fund companies to
analyze risk ininvestments made by them, etc.

14. Juwairiya, P.P(2014) says systematic investment plan is the best option planned for
small investors who wish to invest small amounts regularly to buildwealth over a long
period of time.

15. Kumar, S.& Kumar. (2014) in their study it is mention that <Mutual fund isa 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 investthe money.

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 buildwealth over a long
period of time.

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

37 | P a g e
 types of investment and the fund manager decides how to investthe money.

18. Goswami, A.G.(2014) have observed mutual fund investment is a diversifiedportfolio

of securities, which can include equity securities (such as common andpreferred 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-economicproblems. 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.

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 schemespreference by elected
mutual fund investors. The results presented that the mainobjective behind to invest in
mutual fund is good return, safety and tax benefit.The research also suggested that the

38 | P a g e
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.

39 | P a g e
 DATA ANALYSIS AND INTERPRETATION

1. Gender

Answers % Count
Male 68.3% 69
Female 31.7% 32

Interpretation:

According to this among people respondents’ males are 68.3% and females are
31.7%.

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 2.Age

Answers % Count
Above 18 39.6% 40

25 years 40 years 40.6% 41

41 years 60 years 14.9% 15

Above 60 years 4.9% 5

Interpretation:
Majority of the people responded is belongs to 25 years to 40 years i.e.
40.6%. 39.6% peoplerespondents are belonging to above 18 years, 14.9%
people respondents are belongsto 41 years 60 years and 4.9 % belongs to
above 60 years category of age group.

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 3. Occupation

Answers % Units

Salaried 39.6% 40

Business 22.8% 23

Student 29.7% 30

Homemaker 4% 4

Retired 4% 4

Interpretation:
According to this diagram among people respondents 39.6% are
Salaried, 22.8% are doing Business, 29.7% students, 4% are home
maker and 4% are Retired.

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

Answers % Units
Below 2 Lakhs 32.7% 33

2- 10 Lakhs 41.6% 42

11- 20 Lakhs 17.8% 18

Above 20 Lakhs 7.9% 8

Interpretation:

According to this diagram among people respondents 32.7% are earning

below2,00,000, 41.6% are earning 2,00,000 - 1 0 , 0 0 , 0 0 0 , 17.8 % are
earning 11,00,000 - 20,00,000 and 7.9 % are earning above 20 lakhs.

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

Answer % Units
<=25% 51.5% 52
<=50% 41.6% 42
<=75% 6.9% 7

Interpretation

According to this diagram among people respondents 51.5% are saving

more than or equal to 25% of their income , 41.6% are saving more than
or equal to 50 of their income and 6.9% 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 66.3 66
No 34.7 35

Interpretation:

According to this diagram, among people respondents 66.3% said yes and
34.7% said no.

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 7. Do you follow SIP?

Answer % Units
Yes 51.5 52
No 32.7 33
Maybe 15.8 16

Interpretation

According to this diagram among people respondents 51.5% people

follow sip , 32.7% people do not follow sip , 15.8% people follow it or
not.

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

Answer % Units
Liquidity 27.7 28
Company Reputation 42.6 43
High Risk 12.9 13
Low risk 16.8 17

Interpretation
According to this diagram among people respondents 27.7%
people prefer liquidity factor for investing money, 42.6%
people prefer company reputation factor for investing
money,12.9% people prefer high risk factor for investing
money, 16.8% 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 50.5 51
Public 49.5 50

Interpretation

According to this diagram among people respondents 50.5%

people prefer public sector for investing money and 49.5%
people prefer private companyfor investing money.

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 10.Which factor do you consider before investing?

Answer % Units
Safety of principal 41.6 42
Low risk 34.7 35
High risk 14.9 15
Maturity period 8.9 9

Interpretation
According to this diagram among people respondents 41.6%
people prefer safety of principal factor before investing
money, 34.7% people prefer low risk factor before investing
money investing money, 14.9% people prefer highrisk factor
before investing money investing money, 8.9% people prefer
maturity factor before investing money investing money.

49 | P a g e
11.What is the satisfaction level with your
investment made in stock market?

Answer % Units

Highly satisfied 43.6 44

Satisfied 48.5 49

Not satisfied 7.9 8

Interpretation

According to this diagram among people respondents 48.5%

people are highly satisfied with the investment made in stock
market, 43.6% people are satisfied with the investment made
in stock market and 7.9% people are not satisfied with the
investment made in stock market

50 | P a g e
 12.How often do you invest?

Answer % Units
Daily 12.9 13
Weekly 28.7 29
Monthly 36.6 37
Occasionally 21.8 22

Interpretation

According to this diagram among people respondents

12.9% people invest daily, 28.7% people invest weekly,
36.6% people invest monthly, 21.9% people invest
occasionally.

51 | P a g e
13. What is the time period you prefer to invest ?

Answer % Units
Short term 34.7 35
Medium term 35.6 36
Long term 29.7 30

Interpretation

According to this diagram among people respondents

34.7% people invest in short term period, 35.6% people
invest in medium term period and 29.7% people invest
in long term period.

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14.Do you use app to invest in sip ?

Answer % Units
Yes 63.4 64
No 36.6 37

Interpretation

According to this diagram among people respondents

63.4% peopleuse app for sip, 36.6% people do not use
app for sip.

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 15.Which application do you use ?

Answer % Units
Groww 21.8 22
MyCAMS 6.9 7
KFinKart 16.8 17
ETMONEY 19.8 20
PayTM 9.9 10
KTrack 4.8 4
Other 20.8 21

Interpretation

According to this diagram among people respondents

21.8% people use grow,20.8% people use myCAMS,
16.8% people use KFinKart, 19.8% people use
ETMONEY, 9.9% people use Paytm, 4.8% people use

54 | P a g e
16. Rate the customer services of the Apps

Interpretation

According to this diagram among people respondents

57.4% rated as Good, 20.8% as Great and the lowest as
poor rate is only 4% given as poor.

55 | P a g e
17. How would you describe SIP Mutual Funds ?

Interpretation

According to this diagram among people respondents

45.5% described as Fine, and the lowest as poor rate is
only 4% given as worst

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

Interpretation
According to the diagram 23.8% people respondent
that Easy market survey and Best investment
option is the most valuable features. 11.9% respondent
Easy access to money. 13.9% respondent Time saving.
17.8% respondent Customer satisfaction. 8.9%
respondent paperless transaction is the most valuable
feature.

57 | P a g e
19. Which mode of operation do you prefer?

Interpretation:

According to the diagram 79.2% respondent prefer

mode of operation through apps, and 20.8% respondent prefer
mode of operation through agents.

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DATA ANYLSIS

Regression analysis between Gender and How many people invest in

Mutual funds

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.130179
R Square 0.016947
Adjusted R Square 0.007017
Standard Error 0.465918
Observations 101

ANOVA
df SS MS F Significance F
Regression 1 0.370477 0.370477 1.706639 0.194449
Residual 99 21.49091 0.21708
Total 100 21.86139

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 1.145455 0.139135 8.232665 7.6E-13 0.86938 1.421529 0.86938 1.421529
Do you invest in Mutual funds ? 0.127273 0.097424 1.306384 0.194449 -0.06604 0.320582 -0.06604 0.320582

Interpretation : Because there is no correlation between gender and people who invest
in Mutual Funds and because E - 13 indicates that there is a zero (13) following the
number, the null hypothesis is accepted.

59 | P a g e
Regression analysis between Gender and How many people invest in
SIP

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.098074
R Square 0.009618
Adjusted R Square -0.00039
Standard Error 0.467652
Observations 101

ANOVA
df SS MS F Significance F
Regression 1 0.210273 0.210273 0.961478 0.329205
Residual 99 21.65111 0.218698
Total 100 21.86139

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 1.215363 0.113463 10.71154 3.09E-18 0.990228 1.440498 0.990228 1.440498
Do you follow SIP? 0.061737 0.062962 0.98055 0.329205 -0.06319 0.186667 -0.06319 0.186667

Interpretation : Because there is no correlation between gender and people who invest
in SIP and because E - 18 indicates that there is a zero (18) following the number, the
null hypothesis is accepted.

60 | P a g e
Regression analysis between Age Group and How many people invest
in Mutual funds

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.166727438
R Square 0.027798039
Adjusted R Square 0.017977817
Standard Error 0.845363771
Observations 101

ANOVA
df SS MS F Significance F
Regression 1 2.022927 2.022927 2.830694 0.09563
Residual 99 70.74935 0.71464
Total 100 72.77228

Upper 95.0%
CoefficientsStandard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Intercept 2.251948052 0.252448 8.920457 2.47E-14 1.751037 2.752859 1.751037 2.752859
Do you invest in Mutual funds ? -0.297402597 0.176766 -1.68247 0.09563 -0.64814 0.053339 -0.64814 0.053339

Interpretation : Because there is no correlation between Age group and people who
invest in Mutual Funds and because E - 14 indicates that there is a zero (14) following
the number, the null hypothesis is accepted

61 | P a g e
Regression analysis between Age Group and How many people invest
in SIP

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.005469
R Square 2.99E-05
Adjusted R Square -0.01007
Standard Error 0.857351
Observations 101

ANOVA
df SS MS F Significance F
Regression 1 0.002177 0.002177 0.002961 0.956712
Residual 99 72.7701 0.735052
Total 100 72.77228

Coefficients Upper 95.0%

Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Intercept 1.861809 0.208013 8.95045 2.12E-14 1.449066 2.274552 1.449066 2.274552
Do you follow SIP? -0.00628 0.115429 -0.05442 0.956712 -0.23532 0.222754 -0.23532 0.222754

Interpretation : Because there is no correlation between Age group and people who
invest in SIP and because E - 14 indicates that there is a zero (14) following the
number, the null hypothesis is accepted

62 | P a g e
Regression analysis between Age Group and How often do you invest

SUMMARY OUTPUT

Regression Statistics
Multiple R 0.1599
R Square 0.025568
Adjusted R Square 0.015725
Standard Error 0.846333
Observations 101

ANOVA
df SS MS F Significance F
Regression 1 1.860639 1.860639 2.597645 0.110206
Residual 99 70.91164 0.716279
Total 100 72.77228

Coefficients
Standard Error t Stat P-value Lower 95%Upper 95%Lower 95.0%
Upper 95.0%
Intercept 1.471763 0.250199 5.882374 5.51E-08 0.975314 1.968212 0.975314 1.968212
How often do you invest? 0.142044 0.088132 1.611721 0.110206 -0.03283 0.316917 -0.03283 0.316917

Interpretation : Because there is no correlation between Age group and people who
often do you invest and because E - 8 indicates that there is a zero (8) following the
number, the null hypothesis is accepted

63 | P a g e
5.1 FINDINGS

 68.3% are males respondent and 31.7% are female respondent.

 39.6% are above the age 18 respondents, 40.6% people respondents are
belonging to 25 years to 40 years, 14.9% people respondents are belonging to
41 years to 60 years and 4.9% belongs to above 60 years category of age group.
 32.7% of the respondents belong to the income group of below 2
Lakhs and 41.6% of the respondents belong to the income group of
2-11 lakhs. The respondents which belong to 11-20 Lakhs is 17.8%
and 7.9% of the respondents belong to the income group of above
20 Lakhs.
 39.6% of the respondents belong to Salaried group, 22.8% of the
respondents belong to Business, 29.7% of the respondents belong
to students category, 4.% of the respondents are home maker and
4% of the respondents are Retired personals
 51.5% respondent are saving more than or equal to 25% of their income
,41.6% respondent are saving more than or equal to 50 of their income
and 6.9% respondent are saving more than or equal to 75% of their
income
 66.3% respondent invest in mutual funds and 34.7% respondent do not
invest in mutual funds.
 51.5% people follow sip , 32.7% people do not follow sip , 15.8% people
may follow it or not.
 27.7% people prefer liquidity factor for investing money, 42.6% people
prefer company reputation factor for investing money, 12.9% people
preferhigh risk factor for investing money,16.8% people prefer low risk
factorfor investing money.
 49.5% people prefer public sector for investing money and 50.5%people
prefer private company for investing money

 41.6% people prefer safety of principal factor before investing money,

34.7% people prefer low risk factor before investing money investing
money, 14.9% people prefer high risk factor before investing money

64 | P a g e
 investing money, 8.9% people prefer maturity factor before investing
money investing money.
 43.6% people are highly satisfied with the investment made in stock
market, 48.5% people are satisfied with the investment made in stock
market and 7.9% people are not highly satisfied with the investment made
in stock market.
 12.9% people invest daily, 28.7% people invest weekly, 36.6%
people invest monthly, 21.8% people invest occasionally.
 34.7% people invest in short term period, 35.6% people invest in
medium term period and 29.7% people invest in long term period.
 63.4% people use app for sip, 36.6% people do not use app for sip.
 21.8% people use grow, 6.9% people use myCAMS, 16.8% people use
KFinKart, 19.8% people use ETMONEY, 9.9% people use Paytm,
4.8% people use KTrack, 20.8 use other apps.

 20.8% people rated great, 57.4% people rated good, 11.9% people rated
ok, 4% people rated as poor, 6% people rated terrible.
 45.5% people described SIP Mutual Funds as Fine, but has some issues,
38.6% described SIP Mutual Funds as great, 11.9% described SIP
Mutual Funds as lifesaving, 4% described SIP Mutual Funds Fine as
worst.
 17.8% of people like feature of customer satisfaction, 23.8% of
respondent like features of easy market survey, 23.8% of people
respondent like feature of best investment option, 11.9% of people like
feature of easy access to money, 8.9% people respondents like features
of paperless transaction, 13.9% respondent like the features of time
saving.

 20.8% peoples mode of operation is through agents, 79.2% peoples mode

of operation is through apps


. 

65 | P a g e
 5.2 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 fundsevery 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 investsmall amounts on a regular basis to build
wealth over a long term. It inculcates the habitof 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 theirresearches 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 highrisk 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

66 | P a g e
value may go down depending upon the performance of the company, the
industry, state of capitalmarkets and the economy; generally, however, longer
the term, lessen the risk; 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
Fundshelp 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 portfoliothat minimizes risk and maximizes returns. In case
of selecting between SIP and lumpsum, 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 givebetter return. It all depends on fund
managers and AMC.

According to survey, more than 50% people say that they will choose SIP to
invest inMutual fund. So trends say that SIP is good investment alternative in
mutual fund. Butapart from that people also depend on the market value and they
take advice from someexperts of this field

67 | P a g e
 5.3 SUGGESTIONS

 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 bemore 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 andexpenses 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 theremay be a short term loss in order to

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 achieve a long term potential gain.


 What are my cash flow requirements? There should be a regular

cash flow or Ineed 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 investment and can set the
foundation for a sound mutual fund investmentstrategy

 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 offerdocument 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 overthe
world. With many open ended schemes offering systematic
investors strategy followed by investors9 plans, this regular
investing habit is made easyfor you.

 Keep your taxes in mind As per the current tax laws,

dividends/ incomedistribution 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

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 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 investmentplan. If you start now you will make more than
if you wait and invest later. Thepower of compounding lets your
earn income on income and your money multiplies at a
compounded rate of return
 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 consumer9s 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 theirrequirements. 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 overthe 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

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 achieve their specific goals.

 It is suggested that the investors should not consider only one or

two factors forinvesting 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. Byinvesting 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.

 Systematic investment plan facility is one such plan,

incorporating these features. It is desirable to start investing early
and stick to a regular investmentplan. 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 & RegardingAMFI.

 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 6weeks 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

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 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 theunit 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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 5.3 BIBILGRAPHY & REFERENCES

5.4

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. Zenti, R.(2014): <Are lump sum investments riskier than
systematic investmentplans?=
6. www.amfiindia.com
7. www.indianresearchjournals.com
8. www.wikipedia.com
9. www.investopedia.com

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ANNEXURE

SIP Questionnaire

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