Subhu

PROJECT REPORT ON
A STUDY ON INVESTORS’ PERSPECTIVES

AND KNOWLEDGE REGARDING SYSTEMATIC
INVESTMENT PLAN WITH SPECIAL REFERENCE TO
GUWAHATI CITY
Submitted in partial fulfilment for the award of the degree of Bachelor

of Business Administration (BBA) under Gauhati University
Submitted By
SUBHANKAR LASKAR
Bachelor of Business Administration
ROLL NO: UM-211-017-0074
UNDER THE GUIDANCE OF
Dr. Bidisha Lahkar Das

Assistant Professor
Department of BBA
GAUHATI COMMERCE COLLEGE

R.G.B ROAD GAUHATI- 781021
2023
CERTIFICATE OF ORIGINALITY
This is to certify that Subhankar Laskar, a student of Bachelor of Business Administration

(BBA) 5th semester bearing Roll No. UM-211-017-0074, Registration No. 21005748 of
Gauhati Commerce College, Subhankar Laskar have prepared a project entitled, “A Study on
Investors’ Perspectives and Knowledge Regarding Systematic Investment Plan with
special reference to Guwahati City” in partial fulfilment of the requirement for the graduate
degree in Business Administration under Gauhati University.
I hereby declare that the project undertaken by him is carried out under my overall
supervision and guidance. And to the best of my knowledge this project has not been
submitted at any time to any other University or Institute for any Degree or Diploma. It is
also to be certified that the project is original and is exclusively prepared by him.
Forwarded by: Certified By:
Dr. Anjali Bhuyan Deka Dr. Bidisha Lahkar Das

Co-ordinator Asst. Professor
BBA Department BBA Department
Gauhati Commerce College Gauhati Commerce College
Countersigned by
Dr. Homeswar Kalita

Principal
Gauhati Commerce College
DECLARATION
I hereby declare that this project report on “A STUDY ON INVESTORS’

PERSPECTIVES AND KNOWLEDGE REGARDING SYSTEMATIC INVESTMENT
PLAN WITH SPECIAL REFERENCE TO GUWAHATI CITY” has been prepared by
me during the month of October 2023 under the guidance of Dr. Bidisha Lahkar Das
department of BBA, Gauhati Commerce College, Guwahati.
I also hereby declare that this project report has not been submitted to any
university or institution for award of any degree or diploma.
Place: (Signature)
Date:
Subhankar Laskar
BBA 5th semester
Roll No: UM-211-017-0074
G.U. Reg. No: 21005748 of 2023

CERTIFICATE FROM THE GUIDE
This is to certify that this project report on “A STUDY ON INVESTORS’

PERSPECTIVES AND KNOWLEDGE REGARDING SYSTEMATIC INVESTMENT
PLAN WITH SPECIAL REFERENCE TO GUWAHATI CITY ” is based on an original
project study conducted by Subhankar Laskar under my guidance.
………………………
Place: Signature of the guide
Date: Dr. Bidisha Lahkar Das
Asst. Professor
BBA Department
4
ACKNOWLEDGMENT
I express my sincere thanks to Dr. Homeswar Kalita, Principal, Gauhati Commerce College
for providing us the opportunity to carry out the study and in preparing this project report.
I would also take the opportunity to thank our coordinator Dr. Anjali Bhuyan Deka for the
continuous support and motivation in preparing and completing the project.
I express my deep sense of gratitude to my guide Dr. Bidisha Lahkar Das, Dept of BBA,
Gauhati Commerce College for his valuable guidance in this endeavour. She has been a
constant source of inspiration and I sincerely thank her for her suggestion and help in
preparing this report.
Finally, it is my foremost duty to thank my respondents who helped me to complete my field

work without which the project report would not have been possible.
Place: Signature:
Date: Subhankar Laskar

BBA 5th Semester
5
PREFACE
Project reports are an indispensable part of any kind of formal education. These help us to
have a practical exposure as well as better outlook into the matter undertaken for the study.
The dissertation entitled “A Study on Investors’ Perspectives and Knowledge Regarding
Systematic Investment Plan with Special Reference to Guwahati City” has been prepared
for the partial fulfilment of BBA 5th semester course curriculum of Gauhati Commerce
College under Gauhati University.
I had undertaken a field survey for this project at various places in Guwahati. I conducted the
survey to study the perceptions and knowledge of mutual fund investors regarding Systematic
Investment Plan (SIP). On the basis of the study, some findings and suggestions have been
put forward in relevance to the perspectives and knowledge of investors regarding Systematic
Investment Plan (SIP).
The facts and figures presented have been extracted from primary data collected during field
survey. Secondary Information is also referred and collected through websites, books (annual
report, newspaper, magazines etc.) and other records of the concerned organisations.
I had expressed my experiences in my own simple way. I hope the one who goes through it
will find it interesting and worth reading. All constructive feedback is cordially invited.
6
CONTENTS
Page
SL No. TITLE
No.
1 Certificate of Originality
Declaration
Certificate from the Guide
Acknowledgement
Preface
List of Table
List of Figures
2 CHAPTER 1 : INTRODUCTION
1.1 Introduction to the Study

1.2 Objectives of the Study
1.3 Scope
1.4 Need/Significance of the Study
1.5 Limitations of the Study
1.6 Research Methodology
1.6.1 Research Design
1.6.2 Sources of Data
1.6.3 Sampling Design
1.6.4 Data Collection Procedure
1.6.5 Data Analysis Tools
1.6.6 Data Representation Tool
3 CHAPTER 2 : LITERATURE REVIEW
4 CHAPTER 3 : BRIEF PROFILE OF THE ORGANIZATION
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5 CHAPTER 4 : ABOUT MUTUAL FUND
4.1 Mutual Fund – Concept

4.2 History of Mutual Fund Industry
4.3 Types of Mutual Funds
4.4 Merits of Mutual Funds
4.5 Demerits of Mutual Funds
4.6 Future Prospective of Mutual Funds
6 CHAPTER 5 : AN OVERVIEW OF SYSTEMATIC

INVESTMENT PLAN
5.1 Systematic Investment Plan – Concept

5.2 Types of Systematic Investment Plan
5.3 Merits of Systematic Investment Plan
5.4 Demerits of Systematic Investment Plan
5.5 Risk associated with Systematic Investment Plan
5.6 Systematic Investment vs. Lump sum Investment
5.7 Future Prospects of Systematic Investment Plan
7 CHAPTER 6 : DATA ANALYSIS AND INTERPRETATION
6.1 Demographic Profile

6.2 General
8 CHAPTER 7 : FINDINGS, RECOMMENDATIONS AND

CONCLUSION
7.1 Findings
7.2 Recommendations
7.3 Conclusion
9 BIBLIOGRAPHY
ANNEXURE
8
LIST OF TABLES
Table No. Title of the table Page No.
Table 6 (i) Age of the Respondents
Table 6 (ii) Gender of the Respondents
Table 6 (iii) Occupation of the Respondents
Table 6 (iv) Marital status of the Respondents
Table 6 (v) Annual Income of the Respondents
Table 6 (1) Average Annual Investment in mutual fund by the Respondents
Table 6 (2) Knowledge of respondents regarding Systematic Investment

Plan (SIP)
Table 6 (3) Source of awareness of Systematic Investment Plan (SIP)

amazon the respondents
Table 6 (4) Percentage if investable funds invested through Systematic

Investment Plan (SIP) by the respondents
Table 6 (5) Comfort level of the respondents in relation to SIP
Table 6 (6) Investment horizon of respondents in a single mutual fund

scheme through Systematic Investment Plan (SIP)
Table 6 (7) Preference of Respondents of Systematic Investment Plan (SIP)

over Lump sum Investment
Table 6 (8) Reasons for preference of respondents of SIP
Table 6 (9) Problems faced by investors of Systematic Investment Plan
Table 6 (10) Factors affecting perception of respondents towards SIP
Table 6 (11) Respondents view on effective & usefulness of Systematic

Investment Plan (SIP) for short term investors
Table 6 (12) Respondents view on Systematic Investment Plan as a substitute

of Recurring Deposit account
Table 6 (13) Awareness among respondents about risk in SIP
Table 6 (14) Respondents’ knowledge of the risks associated with SIP
9
LIST OF FIGURES
Figure No. Name of the figure Page No.
Figure 6 (i) Representation of age of the Respondents
Figure 6 (ii) Representation of gender of the Respondents
Figure 6 (iii) Representation of occupation of the Respondents
Figure 6 (iv) Representation of marital status of the Respondents
Figure 6 (v) Representation of annual income of the Respondents

Representation of average Annual Investment in mutual fund
Figure 6 (1)
by the Respondents
Representation of knowledge of respondents regarding
Figure 6 (2)
Systematic Investment Plan (SIP)
Representation of source of awareness of Systematic
Figure 6 (3)
Investment Plan (SIP) among the respondents
Representation of percentage of investable funds invested
Figure 5 (4)
through Systematic Investment Plan (SIP) by the respondents
Representation of comfort level of the respondents in relation
Figure 6 (5)
to Systematic Investment Plan (SIP)
Representation of investment horizon of respondents in a
Figure 6 (6) single mutual fund scheme through Systematic Investment
Plan (SIP)
Representation of preference of respondents of Systematic
Figure 6 (7)
Investment Plan (SIP) over Lump sum Investment
Representation of reasons for preference of respondents of
Figure 6 (8)
SIP
Figure 6 (9) Representation of problems faced by investors of SIP
Representation of factors affecting perception of respondents
Figure 6 (10)
towards Systematic Investment Plan (SIP)
Representation of respondents view on effective & usefulness
Figure 6 (11)
of Systematic Investment Plan (SIP) for short term investors
Representation of respondents view on Systematic Investment
Figure 6 (12)
Plan as a substitute of recurring deposit plan
Representation of awareness among respondents about the
Figure 6 (13)
risk in Systematic Investment Plan (SIP)
Representation of Respondents’ knowledge of the risks
Figure 6 (14)
associated with Systematic Investment Plan (SIP)
10
CHAPTER – 1
INTRODUCTION
__________________________________
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1.1 Introduction to the Study:-
Mutual funds are investment tools that help investors to pool their money to purchase
securities which are professionally managed by a portfolio manager. The manager diversifies
these investments into various securities is like treasuries, stocks, bonds, currencies, etc.
These investments are allocated on the basis of investor’s appetite for risk and return.
Individual investors have developed keen interest in the capital market, attaining higher
returns and capital gains along with fiscal concessions. Since small investors generally do not
have sufficient time knowledge experience and resources for directly approaching the capital
market they have to rely on an intermediary which undertakes informed investment decisions
and provide the benefits of professional expertise. This is what a mutual fund does. The main
dilemma faced by an investor is to choose between a Systematic Investment Plan (SIP) or
lump-sum schemes.
Mutual funds are governed by SEBI. SEBI has the authority to issue guidelines and to
supervise and to regulate the working of mutual funds through Mutual Funds Regulations,
1993 have been amended from time to time. Mutual funds provide stability and sustainability
to the stock market also.
Systematic Investment Plan is an investment strategy wherein an investor needs to invest the
same amount of money in a particular mutual fund at every stipulated time period. In simple
words, SIP is a planned approach to investments and an investment technique that allows the
investor to provide for the future by investing small amount of money in mutual fund scheme
of his/her choice. The instalment amount could be as little as INR 500 a month and is similar
to recurring deposit. The essence of Systematic Investment Plan (SIP) is that when the market
falls, investors automatically acquire more units. Likewise they acquire lesser units when the
market rises. This means that the investor buys less when the price is high whereas he/she
buys more when the price is high whereas he/she buys more when the price is low.
SIPs are convenient as investors can give their bank standing instructions to debit the amount
every month. For some investors who are afraid of long term commitments like PPI or
Insurance plan. Systematic Investment Plans (SIPs) are the answer as they are flexible. SIP
has been gaining popularity among Indian Mutual Fund investors, as it helps in investing in a
disciplines manner without worrying about market volatility and timing the market.
Systematic Investment Plans offered by Mutual Fund is an effective way to enter the world of
investment for long term.
Taking into account the importance of investment in our lives, the present investigation tries
to understand the level of awareness of investors in SIP and the factors affecting the same.
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1.2 Objectives of the Study:-
The objectives of the study are:-
 To know about the awareness of investors towards Systematic Investment Plan (SIP).
 To identify investors’ preference in regard to Lump sum and Systematic Investment
Plan (SIP).
 To gain insights into the investment horizon of investors and determine the factors
influencing investors’ viewpoints regarding Systematic Investment Plan (SIP).
1.3 Scope of the Study:-
The scope of the study is based on the perspective and knowledge of investors regarding
Systematic Investment Plan (SIP).
Geographical Scope: The geographical location for this study is confined to Guwahati City.
The investors were only asked about their perspectives and what knowledge do they have
regarding Systematic Investment Plan.
Time Scope: The study was carried out for a period of 1 month i.e., from 15 th October 2023
to 15th November 2023.
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1.4 Need/Significance of the study:-
The need/significance of this study can be summarized as follows:-
 The study will be useful to the various Mutual Fund companies to know about the
level of awareness and knowledge investors posses regarding Systematic Investment
Plan (SIP) so that they can formulate strategies accordingly.
 The study will be helpful to the investors to enhance their knowledge in regards to
Mutual Funds and in particular investing through Systematic Investment Plan (SIP).
 This study will be helpful in knowing about the various factors which influence
perception of the investors towards Systematic Investment Plan (SIP).
 This study will assist the Mutual Fund companies to know about the problems
investors tend to face while inversing through Systematic Investment Plan (SIP) so
that they can formulate plans to minimize such problems.
 It will also help to increase awareness among investors about the various types of
risks associated with investing through a Systematic Investment Plan (SIP).
 Lastly, this study can assist other researchers conducting research related to similar
topics.
1.5 Limitations of the study:-
 The time duration of this study was not adequate enough to make a comprehensive
study.
 The study was done in Guwahati. Therefore, it does not express the opinion of the
entire country.
 Some of the respondents were hesitant to give reply to the questions asked in the
questionnaire.
 Suggestions provided at the end of the report are based on the information collected,
which may not be accurate due to the changing perspectives of the investors.
 While investing there are many factors which affect the investors decision making
process. Identifying all those factors and analyzing them is not possible within this
short period of time.
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1.6 Research Methodology:-
Research methodology is the specific procedure or technique used to identify, select, process
and analyze information about a topic. It defines those tools that are used to gather relevant
information in a specific research study. Thus, the purpose of research is to discover answers
for the questions through the application of scientific procedures.
1.6.1 RESEARCH DESIGN
To meet this study’s stated objective, a Descriptive Research Design method is considered
where the information regarding the Investors’ perspectives and knowledge regarding
Systematic Investment Plan (SIP) among different sections of the city is gathered, studied and
based on this study certain conclusions are drawn.
1.6.2 SOURCES OF DATA
The study is based on both Primary Data and Secondary Data. They are explained below:-
A) PRIMARY DATA: For the study, primary data is collected by using structured
questionnaire. The structured questionnaire consists of close ended questions only.
The primary data is collected through personal interviews from different sections of
society.
B) SECONDARY DATA: The secondary data is collected from various articles, blogs,
books, research paper and internet related to the topic of the study.
1.6.3 SAMPLING DESIGN
Sample Size: Hundred (100)
Sampling Technique: Convenience Sampling. Convenience sampling, also known as grab

sampling or opportunity sampling, is a type of non-probability sampling that involves the
sample being drawn from part of the population that is close to hand.
1.6.4 DATA COLLECTION PROCEDURE

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Sampling Tool: Well Structured Questionnaire
Data Collection Method: The data collection method used in this study is Survey Method.
1.6.5 DATA ANALYSIS TOOLS
The analysis techniques used is percentage method.
● Percentage (%) = Frequency/Sample size × 100
1.6.6 DATA REPRESENTATION TOOLS
The data are represented through diagrammatic representation tools with the help of Tables,
Pie-charts, Graphs and Bar diagrams. Emphasis is placed on providing the facts along with
suggestions & recommendations from the respondents while taking the interview.
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CHAPTER – 2
LITERATURE REVIEW
__________________________________
17
REVIEW OF LITERATURE:-
2.1 Mrs. Khan Iram and Dr. Punita Soni (2012), their study concluded that Mutual
Funds’ SIP is a monthly based investment plan through which an investor can invest a fixed
amount into Mutual Funds every month at pre-assigned dates. This protects the investor from
market volatility and derives maximum benefit as the investment is done at regular basis
irrespective of market conditions. They also stated that SIP is best option planned for small
investors who wish to invest small amounts regularly to build wealth over a long term and
Investment in Systematic Investment Plan is more comfortable, beneficial and simple in
comparison to other investment avenues like Equity Shares, Real Estate, etc.
2.2 Laxman Prasad and Dr. K. S. Sharma (2015) concluded that financial transactions
involves several risk factors. SIP are instrumental in alienating those risk factors from
traditional instrument and shifting risks to those entities that are ready to take them. As in the
present scenario the market is highly uncertain and unpredictable, therefore the investors
should analyze the market carefully and go for investment. SIPs are always risky in nature so
it is better to take suggestions from any Asset Management Company before investment.
2.3 Anich Uddin (2016) concluded that SIP is a feature especially designed for investors
who wish to invest small amounts on a regular basis to build wealth over a long term. It
inculcates the habit of regular Savings and does not encourage timing and speculation in the
markets. But like every Investment Avenue, SIP also suffers from various disadvantages but it
feels to be one of the best investment option available to a long term investor especially first
time investors, salaried people, etc.
2.4 Ainapur Jyoti (2018) made a study to know about investors’ perception towards mutual
funds (Systematic Investment Plan) in Bidar City (Karnataka State). After the research, the
researcher found that very less investors are aware of Mutual Funds in Bidar City but those
who have invested in these funds are satisfied and have earned good profit. It is also a
challenge for the stock brokers to create awareness about Mutual Funds in the society.
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CHAPTER – 3
BRIEF PROFILE OF THE

ORGANIZATION
__________________________________
19
Motilal Oswal Financial Services (MOFSL)
Motilal Oswal Financial Services Limited (MOFSL) is an Indian financial services company
offering a range of financial products and services. It was set up by Motilal Oswal and
Raamdeo Agrawal as a broking house in 1987. The company entered into investment banking
in 2005, followed by private equity fund in 2006.
In February 2006, Motilal Oswal Financial Services Ltd. acquired Peninsular Capital
Markets, a Cochin, Kerala based broking company for Rs. 35 crore. The company tied up
with State Bank of India in 2006, Punjab National Bank in 2007 and Axis Bank in 2013 to
offer online trading to its customers.
In January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business named
as Motilal Oswal Asset Management Company (MOAMC).
In 2013, Motilal Oswal Financial Services Ltd. established Aspire Home Finance Corporation
Limited (AHFCL). The company offers loans for home, construction, composite,
improvement, and extension in India.
Motilal Oswal provides products and services related to equity trading, commodity trading
and investment advisory services, IPOs and SIPs investment, portfolio management services,
and mutual funds investment.
Motilal Oswal Group has been conferred with ‘Brand of The Year’ at the CNBC TV18 Indian
Business Leadership Awards 2018. We have also been recognized as Great Place to Work
once again by Great Place To Work Institute - India.
Today, Motilal Oswal Group is a multi-faceted financial services company with a presence in
over 550 cities through 2500+ business locations; ably managed by a team of over 9,800
employees. This network of business locations coupled with people across business units and
a diverse range of financial expertise works synergistically to provide a host of products and
services across Retail and Institutional Broking, Private Wealth, Investment Banking, Private
Equity, Asset Management and Home Finance. All these businesses are headquartered in a
single location at Motilal Oswal Tower, Mumbai to provide sharing and synergy of
knowledge under one roof.
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CHAPTER – 4
ABOUT MUTUAL FUND

__________________________________
21
4.1 Mutual Funds – Concept:-
A Mutual Fund is an investment strategy that enables investors to pull their money into one
professionally managed investment fund. Mutual Funds can invest in stocks, bonds or a
combination of those assets. In simple terms Mutual Funds are like baskets. Each basket
holds certain types of stocks, bonds or a blend of stocks and bonds to combine for one mutual
fund portfolio. Furthermore the simplicity of investing in mutual funds is not just an
attractive feature for beginner investors, the accessibility, versatility and easy to understand
structure of mutual funds makes for powerful investing vehicles for all kinds of investors,
including the pros and can be appropriate for a variety of Savings and investing objectives,
including college and retirement.
4.2 History of Mutual Funds Industry:-
The Mutual Fund industry in India started in 1963 with the formation of Unit Trust of India at
the initiative of the Government of India and Reserve Bank of India. The history of mutual
funds in India can be broadly divided into four distinct phases.
First phase 1964-87 (Monopoly of UTI)
An Act of Parliament established Unit Trust of India (UTI) in 1963. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs. 6,700 crores of Assets Under Management (AUM).
Second Phase 1987-93 (Entry of Public Sector Funds)
1987 marked the entry of non-UTI, public sector mutual funds set up by punlic sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first no-UTI Mutual Fund established in June 1987 followed
by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian
Bank Mutual Fund (Nov 89), Bank of India (Jun 90) and Bank of Baroda Mutual Fund (Oct
22
92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund in
December 1990. At the end of 1993, the mutual fund industry has Assets Under Management
(AUM) of Rs. 47,004 crores.
Third Phase 1993-2003 (Entry of Private Sector Funds)
With the entry of the private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993. The
1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The number of mutual fund houses went on
increasing, with many foreign mutual funds setting up funds in India and also the industry has
witnessed several mergers and acquisitions. As at the end of January 2003, there were 33
mutual funds with total assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs. 44,541
crores of Asset Under Management was way ahead of other mutual funds.
Fourth Phase – Since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with Assets Under Management of Rs. 29,835 crores as at the end of January 2003,
representing broadly, the asset of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd sponsored by SBI, PNB,
BOB and LIC. It is registered with SEBI and functions under the Mutual Fund Regulations.
With the bifurcation of the erstwhile UTI which had in March 2000 more than Rs. 76,000
crores of Assets Under Management and with the setting up of a UTI Mutual Fund,
conforming to the SEBI Mutual Fund regulations, and with recent mergers taking place
among different private sector funds, mutual fund industry has entered its current phase of
consolidation and growth. As at the end of October 31, 2003, there were 31 funds, which
manage assets of Rs. 1,26,726 crores under 386 schemes.
Mutual funds have played a significant role in financial intermediation, the development of
capital markets and the growth of the Indian Economy. The Indian mutual fund industry has
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been no exception. Though it is relatively new, it has grown at a dynamic speed, influencing
various sectors of the financial market and the national economy.
The Indian economy is under transition on account of the ongoing structural adjustment
programs and liberalization. The corporate sector and the investment community play a major
role in the markets today. Economic transition is usually marked by changes in the market
mechanics, institutional integration market regulations, relocation of savings and investments
and changes in inter social relationships.
4.3 Types of Mutual Funds:-
Mutual Funds are classified mainly in the following manner:-
A) On the Basis of Objectives:
a) Equity Funds/Growth Funds: Funds invested in equity shares are called equity funds.
They carry the principle objective of capital appreciation of the investment over medium to
long-term. They are best suited for investors who are seeking capital appreciation.
b) Diversified Funds: These funds provide the benefit of diversification by investing in

companies spread across sectors and market capitalisation. They are generally meant for
investors who seek exposure across the market and do not want to be restricted to any
particular sector.
c) Sector Funds: These funds invest primary in equity shares of companies in a particular
business sector or industry. While these funds may give higher returns, they are riskier as
compared to diversified funds. Investors need to keep a watch on the performance of those
sectors/industries and must exit at an appropriate time.
d) Index Funds: These funds invest in the same pattern as popular stock market indices like
CNX Nifty Index and S&P BSE Sensex. The money collected from investors is invested only
in stocks which represent the index. The objective of such funds is not to beat the market, but
to give a return equivalent to market returns.
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e) Tax Saving Funds: These funds offered tax benefits to investors under the Income Tax Act
1961. Opportunities provided under the scheme are in the form of tax rebates under section
80 C of the Income Tax Act, 1961. They are best suited for long term investors seeking tax
rebate and looking for long term growth.
f) Debt Income Funds: These funds invest predominantly in rated debt fixed income
securities like corporate bonds, debentures, government securities, commercial papers and
other money market instruments. They are best suited for the medium to long-term investors
who are averse to risk and seeking regular and study income. Debt Funds are less risky when
compared with equity funds.
g) Liquid Funds/Money Market Funds: These funds invest in highly liquid money market
instruments and provide easy liquidity. The period of investment in these funds could be as
short as a day. They are ideal for Corporates, institutional investors and business houses who
invest their funds for very short periods.
h) Gilt Funds: These funds invest in Central and State Government securities. Since, they
are backed by the government, they give a secured return and also ensure safety of the
principle amount. They are best suited for medium to long term investors, who are aware of
the risk involved.
i) Balance Funds: These funds are hybrid funds that invest both in equity shares and debt
(fixed income) instruments and strive to provide both growth and regular income. They are
ideal for medium to long-term investors willing to take moderate risks.
4.3.2 On the Basis of Flexibility
a) Open-ended schemes: When units are sold and repurchased continuously at Net Present
Value (NAV) or NAV-related prices, then they are called open-ended schemes. Open-ended
schemes are not required to be listed on stock exchanges and hence can also offer repurchase
just after allotment. This scheme also offers investors to enter and exit the scheme at anytime
during the life of the fund. The redemption period is also not fixed and hence an open ended
scheme can be terminated, whenever it is required so. This scheme also increases the liquidity
of the investors as the units can be bought and sold continuously.
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b) Close-ended schemes: The corpus under close-ended scheme is fixed having a stipulated
maturity period of 2 to 5 years. Investors have the opinion of investing into the scheme at the
time of its launching. A period not exceeding 45 days is fixed for opening of such scheme in
closed ended scheme, investors can buy units from market only and after completion of initial
subscriptions, these are listed in stock exchanges and from there, units can be bought and
sold. This schemes can, however be converted into open ended schemes.
c) Internal scheme: The scheme constitutes features of both the open ended scheme and
close ended where these schemes are open for sale or redemption during predetermined
intervals at NAV related prices.
4.4 Merits of Mutual Funds:-
There are many merits to why an investor should choose to invest in mutual funds with such
frequency. Some of those merits have been stated below-
a) Liquidity: Unless you opt for close ended mutual funds, & is relatively easier to buy and
exit a mutual fund scheme. The investor can sell his/her units at any point when the market is
high while keeping an eye on surprises like exit load or pre-exit penalty. Remember, mutual
fund transactions happen only once a day after the fund house releases that day’s Net Asset
Value (NAV).
b) Diversification: Mutual Funds have their share of risk as their performance is based on
the market movement. Hence the fund manager always invest in more than one asset class
(equities, debts, money market instruments, etc.) to spread the risks. It is called
diversification. This way, when one asset class doesn't perform, the other can compensate
with higher returns to avoid the loss for investors.
c) Expert Management: A mutual fund is favoured because it doesn't require the investors
to do the research and asset allocation. A fund manager takes care of it all and makes
decisions on what to do with your investment. He/she decides whether to invest in equities or
debt. He/she also decide on whether to hold them or not and for how long.
The fund manager’s reputation in fund management should be an essential criterion for an
investor to choose a mutual fund for this reason. The expense ratio (which cannot be more
than 1.05% of the A/M guidelines as per SEBI) includes the fee of the manager.
26
d) Less Cost of Bulk Transactions: It is always noticed how price drops with increased
volume when you buy any product. For instance, if 100g toothpaste costs Rs. 10, you might
get a 500g pack for say Rs. 40. The same logic applies to mutual fund units as well. If an
Investor buys multiple units at a time, the processing fees and other Commission charges will
be less compared to when he/she purchases one unit.
e) Suit Financial Goals: There are several types of mutual funds available in India catering
to investors from all walks of life. No matter what the investors income is, he/she must make
it a habit to set aside some amount (however small) towards investments. It is easy to find a
mutual fund that matches the investor’s income, expenditures, investment goals and risk
appetite.
f) Safety: There is a General notion that Mutual Funds are not on safe as Bank products. This
is a myth as fund houses are strictly under the purview of statutory government bodies likes
SEBI and AMFI. One can easily verify the credentials of the fund house and the Asset
Manager from SEBI. They also have an impartial grievance redressal platform that was in the
interest of investors.
g) Automated Payments: It is common to forget or delay SIPs or prompt lump sum

investments due to any given reason. The investors can opt for paperless automation with the
fund house or agent. Timely email and SMS notifications help to counter this kind of
negligence.
h) Tax Efficiency: An investor can invest up to Rs. 15 lakh in tax-saving Mutual Funds
mentioned under 800 Max deductions. ELSS is an example of that. Though a 10% long term
capital gains (LTCG) is applicable for returns above Rs. 1 lakh after one year, they have
consistently delivered higher returns than other tax-saving instruments like fixed deposits
(FDs) in recent years.
4.5 Demerits of Mutual funds:-
Apart from the merits, there are also some demerits to being an investor in mutual funds.
Here’s a more detailed look at some of those demerits-
27
a) Cost of Managing Mutual Funds: The salary of the market analysts and fund manager
comes from the investors. Total fund management charge is one of the first parameters to
consider when choosing a mutual fund. Higher management fees do not guarantee better fund
performance.
b) Lock in Period: Many mutual funds have long term lock-in periods, ranging from 5 to 8
years. Exiting such funds before maturity can be an expensive affair. A specific portion of the
fund is always kept in cash to pay out an investor who wants to exit the fund. This portion
cannot earn interest for investors.
c) Dilution: While diversification averages the investors’ risk of loss, it can also dilute
his/her profits. Hence and investor should not invest in more than 7 to 9 Mutual Funds at a
time.
d) No Control: As all the decisions are taken by the fund managers. Investors do not have
control on investment. Investors can either join or leave the show.
e) Unethical Practices may Creep: Mutual Fund managers may follow unethical (corrupt)
practices to boot the performance of various fund related schemes. This is a very serious
problem as the fund managers are under constant pressure to provide good results or else the
reputation will definitely be affected.
f) Selecting right Financial Securities is not easy: It’s difficult task for a mutual fund
manager to select appropriate and suitable financial securities for investment to generate
higher returns. A single wrong selection can hurt the investors of the fund up to a great extent.
28
CHAPTER – 5
AN OVERVIEW OF SYSTEMATIC
INVESTMENT PLAN
29
5.1 Systematic Investment Plan (SIP) – Concept:-
A systematic investment plan (SIP) is an investment vehicle offered by mutual funds to

investors, allowing them to invest small amounts periodically instead of lump sums. The
frequency of investment is usually weekly, monthly or quarterly (now, there is also an option
for daily SIP, you can opt directly through official AMC website or brokers like INDmoney,
etc.). In SIP 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 (NAV).
Everytime a sum is invested, more units are added to the investors’ account. SIP claims to
encourage disciplined investment. SIPs are flexible; the investors may stop investing in 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 3 years.
5.2 Types of Systematic Investment Plan (SIP):-
Mutual fund houses are aware of the needs of an investor. As a result, SIPs have evolved over
the years, transforming payment options available to the investors. Here are the five types of
SIPs available to Indian investors –
a) Step-up or Top-up SIP: This variant allows the investor to increase the amount invested
at regular intervals. This is particularly suited for investors with irregular income as in the
case of self-employed individuals and professionals with higher variable income. Top up SIPs
let you invest sudden profits or bonus to enable early accomplishment of financial goals.
Such facility also enables the investor to take advantage of well performing funds by
adjusting your investments accordingly.
30
b) Flex SIP: Also known as Flexible SIP, this option allows the investor to regulate
investment based on his/her cash flow. In times of a crash crunch, the investor can choose to
forgo the SIP payments for a few months and then return to the usual payment cycle when
your financial situation stabilizes. The investor can also choose a trigger based option, where
in case of increased cash flow you can invest the surplus amount in your existing portfolio.
c) Trigger SIP: This SIP is suitable for investors who have knowledge and awareness of
financial markets. It allows the investor to set either an index level, NAV or a particular date
as the start date of the SIP. However it is not advisable to invest via a trigger SIP as it is
essentially an attempt to time the market which is nearly impossible to do with 100%
accuracy.
d) Perpetual SIP: Generally, while signing the SIP form the investor must enter the start and
end date. The plan tenure is normally 1 year, 2 years, 3 years, 5 years, etc. After your SIP
matures you can renew it, but due to operational issues most investors delay this process. If
the investor leaves the end date blank, by default he/she opts for perpetual SIP, continuing till
2099, unless the investor provides written communication to the fund house.
e) Pause SIP: In a financial crisis, the investor can pause SIP payments instead of stopping
them completely. Thus, the investor can avoid the process of restarting his/her SIPs. SIPs can
be paused for 1 to 3 months by submitting the pause form to your asset management
company and a bank mandates staring the same. However, not all mutual funds have this
option.
5.3 Merits of Systematic Investment Plan:-
There are various merits in investing through Systematic Investment Plans (SIP). Some of
those merits have been stated below –
a) Small amount: Systematic Investment Plan (SIP) allows investors to invest with amounts
as low as Rs. 500 at regular intervals. This helps them to invest without any financial burden
as well as reduces the financial risk associated with lump sum investments.
31
b) Less Risk: Mutual funds invest in market-linked instruments (equities and debt) and thus
they carry a degree of risk with them. However, under SIP mode of investments, this risk gets
reduced as units of a mutual fund scheme are bought periodically. At periodic intervals when
markets are up the invested SIP amount buys fewer units of a fund and vice-versa. Thus, a
SIP enables you to lower the average cost of your investment and reduce the risk of your
investments by spreading the purchase price over time. This is know as rupee cost averaging
or dollar cost averaging (DCA).
c) Discipline: As the name says, the investment in an SIP is systematic. Investing through
SIP includes discipline. In an SIP a fixed amount is deducted every month from the investor’s
account and invested in his/her selected fund. So once the investor has set up the SIP by
selecting the amount and number of instalments he/she don't have to do anything apart from
ensuring that his/her bank account has sufficient balance available on the instalment date.
d) No Timing the Market: Investors are always a dilemma that if it is a right time to invest
or not. No one can predict which way the market will move or whether the market has
achieved its peak or low point. Investing through SIP resolves this dilemma as it is a periodic
investment which occurs across market cycles. SIP is not free from the market volatility and
the fund value may go down, but it provides freedom to the investors from the worry of
market movements.
e) Benefits of Compounding: The key to building wealth is to start investing early and to
keep investing regularly. A small amount of money invested regularly can grow to a large
sum. This helps in creating a substantial amount of wealth which includes the investors own
contributions plus returns compounded over the years.
f) Automated Process: One of the best features of a SIP is that it can be made automatic. For
this an investor needs to give a one time mandate to his/her Bank after which the SIP
contributions will be automatically deducted from his/her bank account and invested in the
mutual fund scheme automatically at the selected periodic intervals. This saves one from the
trouble of filling forms and cheques or logging on digital platform for every SIP contribution.
32
5.4 Demerits of Systematic Investment Plan:-
Although there are numerous benefits in investing through Systematic Investment Plans
(SIPs). There are some demerits to it. They are discussed below –
a) Costs: Although low cost is an advantage, but they are equally disadvantageous in mutual
funds. Some mutual funds in India have high costs associated with them. If you exit before
the stipulated time, you will have to incur exit charges. You cannot withdraw the amount
before the given time frame.
b) Lock-In Periods: Many Mutual Funds have long-term lock-in periods, ranging from 5 to
8 years. Exiting such funds before maturity can be an expensive affair. A specific portion of
the fund is always kept in cash to pay out an investor who wants to exit the fund. This portion
cannot earn interest for investors.
c) Lack of Knowledge: Systematic Investment Plan (SIP) is not a magical solution to all the
negative dips in the stock market. It’s an Investment Plan that systematically invests
according to your terms, therefore it is being said always do thorough research before
investing in any Mutual Fund or for that matter in Systematic Investment Plan (SIP).
d) Insufficient Funds: Investing in Systematic Investment Plan would mean that you give
instructions in advance or post dates cheques as the case may be. However, at times, if you do
not maintain adequate balance the cheque would be returned or the ECS instruction would
also go dishonored due to which the bank will charge certain amount as penalty.. The best
way would be to ensure there is a balance in the account at all times.
e) Diversification might cause lower profits: This is the most prominent of all the
disadvantages. Diversification has an averaging effect on your investments. While
diversification saves you from suffering any major losses, it also prevents you from making
any major gains. Thus, major gains get diluted. This is exactly why it is recommended that
you do not invest in too many Mutual Funds. Mutual Funds are themselves diversifying
investments. Therefore, buying many Mutual Funds in the name of diversification dilute your
gains.
33
5.5 Risks associated with Systematic Investment Plan:-
There are the major risks in an SIP, while we can go on and elaborate further risks in SIP like
economic risk, etc., most of these risks would fall under one or more of the categories stated
below:
a) Price Risk: Mutual fund investments are subject to market risk is a commonly heard
term. What this means is that an investor’s investments in a SIP can go down and he/she can
end up with a value lower than what he/she invested depending on how the market behaves.
The risk in SIP is however related to the holding period and usually the longer the holding
period the lower the risk. With higher holding period the probability of making profit
increases.
b) Liquidity Risk: The ability of an investor to get his/her money back quickly depends on
underlying investments. Usually with mutual funds, this is not an issue, however, there have
been periods (such in 2018), when there was an issue in selling securities (Bonds) and that
certain mutual funds had to limit withdrawals from some schemes. The equity market is fairly
liquid (meaning that buying and selling do not pose an issue). However, if the sale quantity
exceeds the number of buyers by a large amount, then this will result in an issue, hence
making subsequent payouts a problem and hence liquidity risk.
c) Credit Risk: When the bond of a particular company/entity undergoes a downtrend by a

credit rating agency, its price falls. If the price falls, this impacts the overall value of the
portfolio. This is called credit risk. This may end up hurting up the value of the investments
made by the investor.
d) Default Risk: When a company defaults to its payments to the Bond holders, its called
default risk. With the investor not getting their money back, this will impact their portfolio in
a negative manner.
e) Technology Risk: Today, all transactions takes place in the electronic mode. With the
various touch-points, there is a possibility of a technological failure at various places, at the
R&T agent, the bank to debit funds etc. The non-processing of a transaction is also a risk in
34
SIP. The risk associated with technology has increased in recent times due to increased use of
electronics in Mutual Fund transactions.
f) Fund Management Risk: Another risk in SIP is that the chosen scheme may not deliver
up to expectations, and performance may be much lower than expected. The Fund Manager
may under-deliver on performance, and this will lead to low returns on the SIP investment.
Many first time investors or new investors don't consider this risk as they are often blinded by
the fact that they are going to make huge amount of money as promise by their fund manager.
5.6 Systematic Investment Plan VS Lump sum Investment:-
Parameter Systematic Investment Lump sum Investment

Plan
Continuously Growing
Less recommended More recommended
Market
Falling Net Asset Value More recommended Less recommended

Required Risk Appetite Low to Moderate Moderate to High
Quite immune to the Matters a lot, subject to
Time of Investment
volatility of the market market risk
Less due to rupee cost High as this is one time

Cost of Investment average/dollar cost investment with large
averaging (DCA) amount.
Flexibility of Investment High Low

(Source: https://www.quora.com/What-is-the-difference-between-a-lump-sum-and-an-SIP)
5.7 Future Prospects of Systematic Investment Plan (SIP):-
35
Collections from systematic investment plans, popularly known as SIPs have gone down for
the second month in a row. According to data from Industry Body Association of Mutual
Funds in India, collections via SIPs stood at Rs. 8.122 crores last month lower than in May
(Rs. 8.183 crores). However, the silver lining is that the numbers of SIP discontinued in June
where less than that in may. The industry witnessed 5.40 lakh SIP accounts being
discontinued in June, compared to 5.86 lakh in May, as per AMFI data. “The data indicates
the matured behavior of investors. They have continued SIP despite intermittent bouts of
volatility in the market,” said a chief executive officer of a mid-sized fund house. SIPs allow
investors to invest a fixed amount in a mutual fund scheme periodically. Indian Mutual Funds
have currently about 2.74 crores SIP accounts through which investors regularly invest in
Mutual Fund schemes.
There is another silver lining too. The number of new SIPs registered has increased in the
first quarter of FY 19-20. AMFI data shows that the MF industry added, on an average 9.32
lakh SIP accounts each month during the financial year 2019-20, with an average size of
about Rs. 3,000 per SIP account. A year back the average size was around Rs 2,000.
Generally, the MF industry used to add close to 10 lakh SIPs each month before Supreme
Court verdicts on Aadhar in November 2018. Since then, AMFI data shows, the industry has
added only 7 lakh SIP accounts each month. On October 12 last year, UIDAI wrote to the MF
industry – the registrar and transfer agents (R&T) and some online distributors – asking them
to discontinue using Aadhar based authentication to complete the KYC (know your customer)
norms. In September 2018, the Supreme Court verdict banned the use of Aadhar data for
financial transactions. This means a Permanent Account Number (PAN) is mandatory for
every investor KYC, and those who didn’t have it lost out. This will definitely help to bring
up the SIP investments which were previously stopped due to the mandatory Aadhar verdict.
36
CHAPTER – 6
DATA ANALYSIS AND

INTERPRETATION
37
__________________________________
38
6.1 Demographic Profile:-
This section relates to the demography of the respondents such as gender, age, occupation
and marital status. These questions are asked to provide a more detailed analysis and
comparison of questionnaire respondents where applicable.
● Age Profile:-
Table 6 (1) : Age of the respondents.
SL No. Age No. of Respondents Percentage (%)

A Below 21 years 05 05%
B 21 – 35 years 46 46%
C 36 – 50 years 37 37%
D Above 50 years 12 12%
Total 100 100%
Source: Field Survey
10% 5%
Below 21 years
38% 47% 21 - 35 years
36 - 50 years
Above 50 years
Figure 6 (i) : Representation of age of the respondents

INTERPRETATION: The above pie chart shows that 5% of the respondents are below the
age of 21, 46% of the respondents belong to the age group of 21 – 35 years, 37% of the
respondents belong to the age group of 36 – 50 years and the remaining 12% of the
respondents are above the age of 50.
39
● Gender Profile:-
Table 6 (ii) : Gender of the respondents
SL No. Gender No. of Respondents Percentage (%)

A Male 67 67%
B Female 33 33%
Total 100 100%
Percentage of respondents
70%
60%
50%
67%
40%
30% 33%
20%
10%
0%
Male Female
Series1
Figure 6 (ii) : Representation of gender of the respondents
INTERPRETATION: The above chart shows that 67% of the respondents were
male whereas 33% of the respondents were female.
40
● Occupation:-
Table 6 (iii) : Occupation of the respondents.
No. of Percentage
SL No. Occupation
Respondents (%)
A Student 20 20%
B Private Sector Employee 48 48%
C Government Sector Employee 15 15%
D Businessman 9 9%
E Others 8 8%
Total 100 100%
Representation of occupation of respondents

60%
50%
48%
40%
30%
20%
20%
15%
10%
9% 8%
0%
1
Student Private Sector Employees Government Sector Employees

Businessman Others
Figure 6 (iii) : Representation of occupation of the respondents
INTERPRETATION: The above diagram shows that 10% of the respondents are
students, 58% of the respondents are Private sector employees, 15% of the
respondents are Government sector employees, 9% of the respondents are
Businessmen and 8% of the respondents are involved in other occupation.
41
● Marital Status:-
Table 6 (iv) : Marital Status of the respondents.
SL No. Marital Status No. of Respondents Percentage (%)

A Single 43 43%
B Married 57 57%
Total 100 100%
Representation of Marital Status of the respondents
Single
43% Married
57%
Figure 6 (iv) : Representation of marital status of the respondents.
INTERPRETATION: The above Pie chart shows that 43% of the respondents
are single, 57% of the respondents are married. Hence, majority of the
respondents i.e., 57% are married.
42
● Annual Income:-
Table 6 (v) : Annual income of the respondents.
SL No. Annual Income No. of Respondents Percentage (%)

A Less than 1 Lakh 10 10%
B 1 – 5 Lakhs 14 14%
C 5 – 10 Lakhs 63 63%
D More than 10 Lakhs 13 13%
Total 100 100%
Percentage of Respondents
More than 10 Lakhs
5 -10 Lakhs
1 - 5 Lakhs
Less than 1 Lakh
0% 10% 20% 30% 40% 50% 60% 70%
Series1
Figure 6 (v) : Representation of annual income of the respondents.
INTERPRETATION: The above diagram shows that 10% of the respondents

have an annual income of less than Rs. 1 Lakh, 63% of them have an annual
income between Rs. 1 Lakh and Rs. 3 Lakhs, 14% of them have an annual
income between Rs. 3 Lakhs and Rs. 5 Lakhs and 13% of the respondents have
an annual income of Rs. 5 Lakhs.
43
6.2 General:-
This section of the questionnaire consists of questions related to Mutual Fund

and Systematic Investment Plan. These questions are asked to the questionnaire
in order to fulfill the objectives of the study.
● Average Annual Investment in Mutual Funds:-
Table 6 (1) : Average annual investment in mutual funds by the respondents.
SL No. Annual Income No. of Respondents Percentage (%)

A Less than ₹ 20,000 44 44%
B ₹ 20,000 to ₹ 30,000 41 41%
C ₹ 50,001 to ₹ 10,00,000 14 14%
D Above ₹ 10,00,000 1 1%
E 100 100%
Percentage of Respondents
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Less than ₹ 20,000 ₹ 20,000 to ₹ 50,000 ₹ 50,001 to ₹ 10,00,000 Above ₹ 10,00,000
Series1
44
Figure 6 (1) : Representation of average annual investments in mutual funds by
the respondents.
INTERPRETATION: The above chart shows that 44% of the respondents invest
on average less than Rs. 20,000, 41% of the respondents invest on average
between Rs. 20,000 and Rs. 50,000, 14% of the respondents invest on average
between Rs. 50,000 and Rs. 10,00,000, and 1% of the respondents invest above
Rs. 10,00,000 on an average.
.
● Knowledge regarding Systematic Investment Plan (SIP):-
Table 6 (2) : Knowledge of respondents regarding Systematic Investment Plan

(SIP)
SL No. Attribute No. of Respondents Percentage (%)

A Yes 87 87%
B No 13 13%
Total 100 100%
Percentage of respondents
13%
Yes
No
87%
Figure 6 (2) : Representation of knowledge of respondents regarding Systematic

Investment Plan (SIP)
45
INTERPRETATION: The above pie diagram shows that 87% of the respondents
are aware and have knowledge while 13% of the respondents are unaware of
● Source of Awareness regarding Systematic Investment Plan (SIP):-
Table 6 (3) : Source of awareness regarding Systematic Investment Plan (SIP)

among the respondents.
SL No. Source No. of Respondents Percentage (%)

A Internet 41 41%
B Television 22 22%
C Friends & Family 9 9%
Newspaper, Magazines &
D 12 12%
Books
E Brokers 14 14%
F Banks 2 2%
G Others
Total 100 100%
Representation of Source of Awareness of Systematic Investment Plan

(SIP)
45
40
35
30
25
20
15
10
5
0
1
Internet Television Friends & Family

Newspaper, Magazine & Books Brokers Banks
46
Figure 6 (3) : Representation of source of awareness of Systematic Investment
Plan (SIP) among the respondents.
INTERPRETATION: the above diagram shows that 41% of the respondents got
to know about systematic investment plan through the internet 22% got to know
about systematic investment plan from the television 9% got to know about
systematic investment plan from their friends and family 12% got to know
about systematic investment plan from newspapers magazines and books and
14% of the respondent got to know about SIP from brokers and remaining two
person got to know about systematic investment plan from Bank
● Percentage of Investable Funds invested through Systematic

Investment Plan (SIP):-
Table 6 (4) : Percentage of investable funds invested through Systematic

Investment Plan SIP by the respondents
47
Percentage of
Representation of percentageNo.
of investible funds invested through Sys-
SL No. of Respondents Percentage (%)
Investible funds
tematic Investment Plan (SIP) by the respondents
A 0% - 10%
0% to 10% 10% - 30% 47 - 50%
30% Above 50% 47
B 10% - 30% 9% 31 31
13%
C 30% - 50% 13 47% 13
D Above 50% 9 9
31%
Total 100 100
Figure 6 (4) : Representation of percentage of investable funds invested through

Systematic Investment Plan (SIP) by the respondents.
INTERPRETATION: The above pie chart shows 47% of the respondents invest
0% to 10% of their investable funds through Systematic Investment Plan (SIP),
31% of the respondents invest 10% to 30% of their investable funds through
Systematic Investment Plan (SIP), 13% of the respondents invest 30% to 50%
of their investable funds through Systematic Investment Plan (SIP) and 9% of
the respondents invest more than 50% of their investable funds through
● Comfort Level in relation to Systematic Investment Plan (SIP):-
Table 6 (5) : Comfort level of respondents in relation to Systematic Investment

Plan (SIP).
SL No. Comfort Level No. of Respondents Percentage (%)

A Highly Comfortable 9 9%
B Comfortable 38 38%
C Neutral 41 41%
D Uncomfortable 11 11%
E Highly Uncomfortable 1 1%
Total 100 100%
48
Representation of Comfort Level in Relation to Systematic Investment
Plan (SIP)
50
40
30
20
10
0
1
Highly Comfortable Comfortable Neutral

Uncomfortable Highly Uncomfortable
Figure 6 (5) : Representation of comfort level of respondents in relation to

INTERPRETATION: The above diagram shows that 9% of the respondents are
highly comfortable with Systematic Investment Plan (SIP), 38% of the
respondents feel comfortable with Systematic Investment Plan (SIP), 41% are
neutral in terms of their comfort level regarding Systematic Investment Plan
(SIP), 11% of the respondents are uncomfortable with Systematic Investment
Plan (SIP) and 1% of the respondents are highly uncomfortable with Systematic
● Investment horizon of respondents in a single mutual fund scheme

through Systematic Investment Plan (SIP):- [67 respondents]
Table 6 (6) : Investment horizon of respondents in a single mutual fund scheme

through Systematic Investment Plan (SIP).
SL No. Investment Horizon No. of Respondents

A Less than 1 year 13
B 1 to 3 years 19
C 3 to 6 years 16
D 6 to 9 years 10
E More than 9 years 9
Total 67
49
Representation of investment horizon of respondents in a single
mutual fund scheme through Systematic Investment Plan (SIP)
20
18
16
14
12
10
8
6
4
2
0
1
Less than 1 year 1 to 3 years 3 to 6 years 6 to 9 years More than 9 years
Figure 6 (6) : Representation of investment horizon of respondents in a single

mutual fund scheme through Systematic Investment Plan (SIP).
INTERPRETATION: The above diagram shows that 16 respondents invest on

an average for a period of less than 1 year in a single mutual fund scheme, 29
respondents invest on an average for 1 to 3 years, 36 respondents invest on an
average for 3 to 6 years, 10 respondents invest on an average for 6 to 9 years
and 9 respondents invest on an average for a period of more than 9 years in a
single mutual fund scheme through Systematic Investment Plan (SIP).
● Preference of Systematic Investment Plan over Lump Sum

Investment:-
Table 6 (7) : Preference of respondents of Systematic Investment Plan (SIP)

over Lump Sum Investment
SL No. Attribute No. Of Respondents Percentage (%)
A Yes 63 63%
B No 37 37%
Total 100 100%
50
Representation of preference of respondents of Systematic In-
vestment Plan over Lump sum Investment
Yes
37%
No
63%
Figure 6 (7) : Representation of preference of respondents of Systematic

Investment Plan (SIP) over Lump sum investment.
prefer Systematic Investment Plan (SIP) over lump sum investment whereas
37% of the respondents prefer lump sum investment over Systematic
● Reasons for Preference of Systematic Investment Plan (SIP):- [63

respondents]
Table 6 (8) : Reasons for preference of respondents of Systematic Investment

Plan (SIP)
SL No. Reasons No. of Respondents

A Duration of Investment 31
B Amount Invested 47
C Convenience 37
D Returns 16
E Risk Involved 39
F Disciplined Investing 1
G Less stressful 3
51
Representation of Reasons for preference of Systematic Investment Plan
(SIP)
50
40
30
20 Series1
10
0
en
t ed nc
e ns d ng ul
m st e tur lve sti s sf
st ve ni e nv
o
ve tre
ve In ve R
kI In s
In nt Co
n s ed ss
of ou Ri lin Le
ti on Am s
ic p
ra Di
Du
Figure 6 (8) : Representation of reasons for preference of respondents of

INTERPRETATION: The above diagram shows that 31 respondents prefer
Systematic Investment Plan (SIP) due to the duration of investment, 47
respondents have stated the amount of money required to be invested as their
reason for preference, 37 respondents have stated convenience as their reason
for preference, 16 respondents have stated returns as their reason for preference,
39 respondents have stated the degree of risk involved as their reason for
preference, 1 respondent has stated disciplined investing as his reason for
preference and 3 respondents have stated less amount of stress as their reason
for preference of Systematic Investment Plan (SIP).
● Problems faced by Investors of Systematic Investment Plan (SIP):-

[67 respondents]
Table 6 (9) : Problems faced by Investors of Systematic Investment Plan (SIP)
SL No. Problems No. of Respondents

A Selection of the right scheme 57
Determining the time period of
B 43
investment
C Inadequate Knowledge 53
D Maintaining adequate bank balance 5
to ensure payments related to SIP
52
are made on time
E Lack of flexibility 3
F Issues in cancelling SIP 2
Representation of problems faced by Systematic Investment Plan

(SIP) Investors
Issues in cancelling SIP
Lack of flexibility
Maintaining adequate bank balance to ensure payments related to SIP
are made on time
Inadequate Knowledge
Determining the time period of investment
Selection of the right scheme
0 10 20 30 40 50 60
Series1
Figure 6 (9) : Representation of problems faced by Investors of Systematic

INTERPRETATION: The above figure shows that 57 respondents find

difficulty in picking the right scheme while investing through Systematic
Investment Plan (SIP), 43 respondents find problem in determining the right
time period of investment, 53 respondents find lack knowledge as a problem, 5
respondents consider maintaining bank balance to ensure regular payments in
SIP as a problem, 3 respondents consider lack of flexibility as a problem and 2
respondents stated issues in cancelling SIP as a problem while investing through
● Factors affecting Perception towards Systematic Investment Plan

(SIP):-
Table 6 (10) : Factors affecting Perception of respondents towards Systematic

SL No. Factors No. of Respondents
53
A Returns 41
B Tax Saving 11
C Costs Involved in SIP 51
D Knowledge about SIP 74
E Convenience 53
F Amount Invested 64
G Risk Involved 67
H Regular Savings 52
I Safety & security 2
Representation of Factors affecting Perception of Respondents

towards Systematic Investment Plan (SIP)
80 Returns
Tax Saving
70
Costs involved in SIP
60 Knowledge about SIP
50 Convenience
40 Amount invested
Risk Involved
30
Regular Savings
20 Safety & security
10
0
1
Figure 6 (10) : Representation of factors affecting Perception pf Respondents

towards Systematic Investment Plan (SIP).
INTERPRETATION: The above diagram shows that 41 respondents consider

returns provided as a factor which influences their perception towards
Systematic Investment Plan (SIP), 11 respondents consider Tax savings to
influence their perception towards Systematic Investment Plan (SIP), 51
respondents consider Costs involved in SIP to influence their perception
towards Systematic Investment Plan (SIP), 74 respondents consider knowledge
about SIP to influence the perception towards Systematic Investment Plan (SIP),
54
53 respondents consider convenience to influence their perception towards
Systematic Investment Plan (SIP), 64 respondents consider amount invested in
SIP to influence their perception towards Systematic Investment Plan (SIP), 67
respondents consider Risk involved to influence their perception towards
Systematic Investment Plan (SIP), 52 respondents consider regular savings as a
factor to influence their perception towards Systematic Investment Plan (SIP)
and 2 considered Safety and Security as a factor to influence their perception
towards Systematic Investment Plan (SIP).
● Effectiveness & Usefulness of Systematic Investment Plan (SIP) for

short term Investors:-
Table 6 (11) : Respondents view on Effectiveness & Usefulness of Systematic

Investment Plan (SIP) for short term Investors.

A Strongly Agree 13 13%
B Agree 38 38%
C Neutral 41 41%
D Disagree 7 7%
E Strongly Disagree 1 1%
Total 100 100%
Figure 6 (11) : Representation of respondents view on Effectiveness &

Usefulness of Systematic Investment Plan (SIP) for short term Investors.
INTERPRETATION: The above pie chart shows that 13% of the respondents
strongly agree that Systematic Investment Plans (SIPs) are effective and useful
for short term investors, 38% of the respondents agree towards the effectiveness
and usefulness of Systematic Investment Plans (SIPs) for short term investors,
41% of the respondents have neutral view, 7% of the respondents disagree that
Systematic Investment Plans (SIPs) are effective and useful for short term
55
Representation of respondents view on Effectiveness & Usefulness of
Systematic Investment Plan (SIP) for short term investors
1%
7% 13%
41%
38%
Strongly Agree Agree Neutral Disagree Strongly Disagree
investors and 1% of the respondents strongly disagree that Systematic

Investment Plans (SIPs) are effective and useful for short term investors.
● Systematic Investment Plan (SIP) as a substitute of Recurring

Deposit Account:-
Table 6 (12) : Respondents’ view Systematic Investment Plan (SIP) as a

substitute of Recurring Deposit Account.

A Strongly Agree 5 5%
B Agree 27 27%
C Neutral 53 53%
D Disagree 13 13%
E Strongly Disagree 2 2%
Total 100 100%
56
Representation of respondents’ view on Systematic Investment Plan
(SIP) as a substitute of Recurring Deposit Account
60
50
40
30
20
10
0
1
Stronly Agree Agree Neutral Disagree Strongly Disagree
Figure 6 (12) : Representation of respondents’ view on Systematic Investment

Plan (SIP) as a substitute of Recurring Deposit Account

strongly agree that Systematic Investment Plans (SIPs) can be a substitute of
recurring deposit A/c. 27% of the respondents agree that Systematic Investment
Plans (SIPs) can be a substitute of recurring deposit A/c, 53% of the respondents
have a neutral view and 13% of the respondents disagree that Systematic
Investment Plans (SIPs) can be a substitute of recurring deposit A/c and 2% of
the respondents strongly disagree that Systematic Investment Plans (SIPs) can
be a substitute of recurring deposit A/c.
● Awareness of Risks in Systematic Investment Plan:-
Table 6 (13) : Awareness of Risks in Systematic Investment Plan (SIP).

A Yes 69 69%
B No 31 31%
Total 100 100%
57
Representation of Awareness of risks in Systematic Investment Plan
(SIP)
31%
Yes
No
69%
Figure 6 (13) : Representation of Awareness of risks in Systematic Investment

Plan (SIP).
INTERPRETATION: The above Pie chart shows that 69% of the respondents
are aware of the risks associated with investing through Systematic Investment
Plans (SIPs) and 31% of the respondents are not aware of the risks associated
with investing through Systematic Investment Plans (SIPs).
● Knowledge of Risk associated with Systematic Investment Plan
(SIP):-
Table 6 (14) : Knowledge of Risk associated with Systematic Investment Plan

(SIP).
SL No. Problems No. of Respondents

A Risk of negative returns 57
B Liquidity Risk 16
C Credit Risk 11
D Default Risk 6
E Fund Management Risk 44
F Technology Risk 12
58
Representation of Knowledge of Risk associated with Systematic
60
50
40
30
20
10
0
s is k sk sk isk is k
rn Ri Ri
etu ty
R
it lt tR yR
R i di ed au en l og
ve u Cr De
f
em no
ga
ti Liq ag ch
Ne an Te
M
of nd
sk Fu
Ri
Series1
Figure 6 (14) : Representation of Knowledge of Risk associated with Systematic

INTERPRETATION: The diagram shows that 57 respondents know about risk

of getting negative returns while investing through Systematic Investment Plan
(SIP). 16 respondents know about liquidity risk 11 respondents know about
credit risk, 6 respondents know about default risk, 44 respondents know about
fund management risk and 12 respondents know about technology risk
59
CHAPTER – 7
FINDINGS AND SUGGESTIONS

__________________________________
60
Once the relevant information and data has been collected, tabulated and
analysed, it becomes necessary on the part of the investigator or researcher to
sum up the findings in the form of summary so that some necessary measures
may be suggested to improve the awareness and perception of investors towards
The analysis of various aspects relevant to knowing the awareness level and
perception of investors towards Systematic Investment Plan (SIP) has revealed
some interesting facts which deserve careful attention
The findings from this study along with certain suitable suggestions have been
stated below-
7.1 FINDINGS:-
● Demographic Findings:-
i. Majority of the respondents are from 21 – 35 age group. 37% are from 36 –
50 years age group, few of them are from below 21 years and rest 12% from
above 50 years age category.
ii. Male respondents are more in this survey than female respondents.
iii. Private and Government sector employees mostly responded. Also, students,
businessmen and other persons are included in this study.
iv. Respondents are mostly of Rs. 3-5 lakh income slab only a few of them earn
more than that.
● Major Finding:
a) In relation to the first objective, “To know about the awareness of investors
towards Systematic Investment Plan (SIP)”, the findings are:-
i. From the analysis, it is seen that all the respondents are aware about
Systematic Investment Plan (SIP) and majority of them got to know about
Systematic Investment Plan (SIP) from the internet.
61
ii. In terms of awareness towards risks in Systematic Investment Plan (SIP),
majority of the respondents replied that they know about the risk involved in
Systematic Investment Plan. The risk which are most well known among the
investors are Risk of Negative Returns and Fund Management Risk.
b) In relation to the second objective, “To identify investors’ preference in

regard to Lump sum and Systematic Investment Plan (SIP)”, the findings are:-
i. In comparison with Lump Sum Investment, majority of the respondents have

give more preference to Systematic Investment Plan (SIP).
ii. There are various reasons for which an investor may prefer Systematic
Investment Plan over Lump Sum Investment. In this case the main reasons are
Amount Invested, Risk Involved, Convenience, Duration of Investment and
Returns.
c)
d) Other Important Findings:
i. In the study it is found that majority of the respondents have neutral comfort
level in relation to Systematic Investment Plan (SIP).
ii. Investing through Systematic Investment Plan (SIP) has its merits but it does
come with its own set of problems for the investors. In this study, the major
problems faced by the investors while investing through Systematic Investment
Plans (SIPs) is are picking the right scheme, not having enough knowledge and
determining time period for investment.
iii. In case of effectiveness and usefulness of Systematic Investment Plan (SIP)

for short term investors, majority of the respondents have a neutral view
whereas only one respondent strongly disagreed that Systematic Investment
Plan (SIP) is effective and useful for short term investors.
iv. From the study, it is found that most of the respondents invest on an average,
less than Rs. 20,000 in mutual funds on an annual basis.
62
v. It is found from the analysis that out of 100 respondents, majority of the
respondents invested 0% - 10% of their investible funds using Systematic
Investment Plan (SIP). Only a handful of investors invested more than 50% of
their investible funds through Systematic Investment Plan (SIP).
vi. Systematic Investment Plan (SIP) and Recurring Deposit A/c (RD) are two
popular plans among retail investors. From the study, it is found that majority of
the respondents are neutral in their response regarding SIP being a substitute of
Recurring Deposit A/c.
7.2 SUGGESTIONS:-
a) 67% of the respondents have already invested using Systematic Investment
Plan (SIP). This shows the popularity of SIP. Therefore, the mutual fund
companies and government can publicize SIP and encourage investors to invest
more in SIP. This can be done by launching various awareness programs related
to SIP in both national and state level.
b) The mutual fund companies could launch educational programs and

constantly update their websites with the latest information to provide support
to the SIP investors (both new and existing), so that the investors don't face any
problems while investing through SIP.
c) While investing, the agents/salesman can clearly explain to the investors all
the features both positives as well as negatives associated with the fund.
Primarily the agent/salesman should first understand the purpose/need for the
investment by the investor.
d) Workshops or seminars explaining the importance and risks associated with

Systematic Investment Plan (SIP) could be conducted from time to time for the
existing investors as many investors have very limited knowledge about the
risks involved in investing through a Systematic Investment Plan (SIP).
e) In case of mutual fund schemes, the details in both facts and figures could be
in plain English and the figures must be explained, for example when Shape
ratio is mentioned, they should clearly tell it's significance and how it is related
with risk and how to assess it.
63
f) In case of Systematic Investment Plan SIP, the investors can preplan
beforehand about when to stop investing and went to book profits because if an
investor stops his/her SIP at once and takes the money out. He/she may end up
paying extra on it in form of tax, exist loads etc., and not earn the expected
return.
g) Investors have to be made aware of the fact that, they need to invest for a
long period of time (eg. more than 9 years), especially when they plan to invest
in equity schemes through SIP. It is because an investment Horizon of 4 to 7
years is to short for an SIP investor as most of the SIP installments want even
complete three years.
64
CHAPTER – 8
CONCLUSION
65
CONCLUSION:-
Systematic Investment Plan (SIP) of mutual funds is a systematic and scientific

way of creating wealth in the long run. The popularity of SIPs or Systematic
Investment Plan has gone up in the last few years, thanks to demonetization;
many individuals discovered the charm of SIP and mutual funds. The campaign
started by Asset Management Financial Institutions (AMFIs) “Mutual Fund
Sahi hai” has also helped popularize the concept of SIP and mutual funds. The
mandatory Aadhar verdict which had a bad impact on SIP investments overall,
was also struck down by the Supreme Court in 2018. This will definitely help to
bring up the SIP investments which were previously stopped due to the
mandatory Aadhar verdict.
This study was conducted with the main objective to know about the
perspectives and knowledge of investors towards Systematic Investment Plan
(SIP). From the current study, it was found that although majority of the
investors have invested using SIP and all of them seem to have awareness
towards Systematic Investment Plan (SIP), but most of the investors have
limited knowledge regarding SIPs. This in a way may be preventing them from
committing a larger portion of their funds using SIPs as knowledge regarding
SIP affects the perception of majority of the investors towards SIP. Lack of
knowledge also means many existing SIP investors may still have confusions
regarding SIPs. It is therefore, the duty of the mutual fund companies and the
government to educate the existing SIP investors as well as other interested
investors regards all the relevant concepts related to SIP. This will not only help
to clear the confusions in the minds of the existing investors and motivate them
to invest more, but also attract new investors to invest their money in mutual
funds using SIP.
It can therefore, be concluded that investors in general, have awareness towards
Systematic Investment Plan (SIP) and they have continued their investments
despite intermittent bouts of volatility in the market. However, many investors
including existing SIP investors have confusions related to SIP’s which need to
be cleared.
66
BIBLIOGRAPHY
BOOKS:-
1. Bharati, Pathak (2014), Indian Financial System, Person India
Education Services Pvt. Ltd
2. CR. Kothari & Garg Gaurav (2019), Research Methodology, New
Age International (P) Ltd.
3. Chandra, Prasanna (2017) Investment Analysis and Portfolio
Management Mc Graw Hill.
JOURNAL:-
1. Dr. Punita Soni and Iram Khan (2012), “Sytematic Investment Vs Other
Investment. Avenues in Individual Portfolio Management, A Comparative
Study”, International Journal in Multidisciplinary and Academic Research
(SSIMAR). Volume-1, No 3, September October (ISSN 2278-5973)
2. Laxman Prasad and Dr. SK Sharma (2015), “Identifying the Consumer’s
Investment Behaviour towards Systematic Investment Plan in Bhilai Region”,
10SR Journal of Humanities and Social Science (IOSR-JHSS), Volume-20,
Issue-8, Ver III (Aug 2015). PP 10- 15, e-ISSN 2279-0845
3. Anich Uddin (2016), Investor Perception about Systematic Investment Plan
(SIP) An Alternative Investment Strategy International Journal of Research in
Humanities & Social Sciences, Vol 4, Issue 3, April 2016, ISSN (P) 2347-5404
ISSN (O) 2320771
4. Jyoti, Ainapur (2018), “A Study on Investor Perception towards Mutual Funds
(Systematic Investment Plan (SIP) in Bidar City (Karnataka State)”, Volume-5,
Issue 10, 2018. ISSN (Print): 2393-8374, (Online): 2394-0697
67
WEBSITES:-
1. https://www.money.control.com/news/business/personal-finance/
are-many- investors discontinuing-systematic-investment-plans-of-
mfs-4265821 html. (retrieved on 17 October, 2023, 04:30 pm.)
2. https://www.paisabazaar.com/mutual-funds/best-mutual-funds-2021.
(retrieved on 23 October 2023, 07:30 p.m.)
3. https://www.orowealth.com/insights/blog/history-of-mutualfunds in-
india/, (retrieved on 27 November 2023, 08:05 pm.)
4. https://cleartax.in/s/advantages-disadvantages-mutual-funds,
(retrieved on 03 November 2023, 08:15 pm)
5. https://www.icicipruame.com/InvestCorrectly Basics-of-Mutual-
Funds/Types-of-Mutual-Funds.aspx. (retrieved on 03 November
2023, 08:54 pm)
6. https://www.paisabazaar.com/mutual-funds/best-sip-plans/,
(retrieved on 04 November 2023, 09:15 am)
7. https://www.goodreturns.in/classroom/2015/12/what-are-the-
disadvantages- Investing-a sip-412406.html, (retrieved on 04
November 2023, 11:30 am)
8. https://www.coverfox.com/personal-finance/mutual-funds/
systematic-investment-plan sip. (retrieved on 04 November 2023,
06:30 pm)
9. https://wealthtrust.in/blog/benefits-of-sip. (retrieved on 05
November 2023, 07:00 pm)
10. https://www.money.control.com/news/business/mutual-funds/mutu
al-fund-industry-eyes rs-100-lakh-cr-aum-10-cr-investor-base-in-
next-decade-amfi-4377901 html, (retrieved on 07 November 2023,
11:00 am)
11. https://cleartax.in/s/sip-lump-sum-invest-mutual-funds. (retrieved
on 07 November, 12:30 pm)
12. https://www.quora.com/What-is-the-difference-between-a-lump-
sum-and-an-SIP. (retrieved on 09 November, 08:12 pm)
68
ANNEXURE
__________________________________
69
Questionnaire
Dear Respondent,
I am a student of BBA 5th semester from Gauhati Commerce College. In partial
fulfilment of our Course curriculum, we are required to prepare a project report.
I have undertaken a project titled "Examination of Investors' perspective &
knowledge regarding Systematic Investment Plan with special reference to
Guwahati City".
I would be grateful if you kindly spare a few minutes of your precious time in
filling up the questionnaire.
[The information provided by you will be kept confidential and will be used
only for academic purpose.]
Regards,
Subhankar Laskar
BBA 5th Semester
Part A
I. Name:
II. Age:
A. Below 21 years B. 21-35 years
C. 36 – 50 years D. Above 50 years
III. Gender:
A. Male B. Female
IV. Occupation:
A. Student B. Private Sector Employee
70
C. Government Sector Employee D. Businessman
E. Other
V. Marital Status:
A. Single B. Married
VI. What is your annual income range?
A. Less than Rs. 1 lakh B. Rs. 1 lakh to 5 lakhs
C. Rs. 5 lakhs to Rs. 10 lakhs D. More than Rs. 10 lakhs
Part B
1. On an average, how much do you invest annually in Mutual Funds?
A. Less than Rs. 20,000 B. Rs. 20,000 to Rs. 50,000
C. Rs. 50,001 to Rs. 10,00,000 D. Above Rs. 10,00,000
2. i) Are you aware of Systematic Investment Plan (SIP)?
A. Yes B. No
ii) If yes, please specify from which source you came to know about
Systematic
Investment Plan (SIP)?
A. Internet B. Television
C. Friends & Family D. Newspapers, Magazines &

Books
E. Brokers F. Any other (please specify)
3. What percentage of your investible funds, do you invest using Systematic

A. 0% - 10% B. 10% - 30%
C. 30% - 50% D. Above 50%

71
4. How would you describe your comfort level in relation to Systematic
A. Highly Comfortable B. Comfortable
C. Neutral D. Uncomfortable
E. Highly Uncomfortable
5. On an average, how long do you invert in a single Mutual Fund Scheme

through Systematic Investment Plan (For SIP investors only).
A. Less than 1 year B. 1 to 3 years
C. 3 to 6 years D. Uncomfortable
6. i) Do you prefer Systematic Investment Plan over Lump sum Investment?
A. Yes B. No
ii) If yes, state the reason for such preference. [Multiple options can be
selected]
A. Duration of investment B. Amount Invested
C. Convenience D. Returns
E. Risk Involved F. Any other (please specify)
7. What are the problems, you tend to face while investing through Systematic
Investment Plan (SIP). (For SIP Investors only) [Multiple options can be
selected]
A. Selection of the right scheme
B. Determining the time period for investment
C. Inadequate Knowledge
D. Maintaining adequate bank balance to ensure payments related to

SIP are made on time
E. Any others (please specify)
8. What are the factors that tend to affect your perception towards Systematic
Investment Plan (SIP). [Multiple options can be selected]
72
A. Returns B. Tax Savings
C. Costs involved in SIP D. Knowledge about SIP
E. Convenience F. Amount Invested
G. Risk involved H. Regular Savings
I. Any other (please specify)
9. “Systematic Investment Plan is effective & useful for people who cannot
invest large sums of money at once.”
A. Strongly Agree B. Agree
C. Neutral D. Disagree
E. Strongly disagree
10. “Systematic Investment Plan can be considered as a substitute of Recurring

Deposit A/C option available at banks.”
A. Strongly Agree B. Agree
C. Neutral D. Disagree
E. Strongly Disagree
11. i) Are you aware of the risks associated with investing through Systematic
Investment Plan?
A. Yes B. No
ii) If yes select the risks about which you have knowledge. [Multiple options
can be selected]
A. Risk of the SIP giving a negative return.

B. Risk of a security getting a downgrade or credit risk.
C. Risk of the company not paying the owners their dues or default
risk.
D. Risk of the selected scheme not delivering up to expectation or
Fund
Management risk.
73
E. Risk of processing your transaction correctly or Technology risk.
12. Give Suggestions (if any):
___________________________________________________________
74

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PROJECT REPORT ON

A STUDY ON INVESTORS’ PERSPECTIVES

Submitted in partial fulfilment for the award of the degree of Bachelor

UNDER THE GUIDANCE OF

Dr. Bidisha Lahkar Das

GAUHATI COMMERCE COLLEGE

This is to certify that Subhankar Laskar, a student of Bachelor of Business Administration

Forwarded by: Certified By:

Dr. Anjali Bhuyan Deka Dr. Bidisha Lahkar Das

Dr. Homeswar Kalita

I hereby declare that this project report on “A STUDY ON INVESTORS’

BBA 5th semester

Roll No: UM-211-017-0074

G.U. Reg. No: 21005748 of 2023

Gauhati Commerce College

This is to certify that this project report on “A STUDY ON INVESTORS’

Place: Signature of the guide

Date: Dr. Bidisha Lahkar Das

Gauhati Commerce College

Finally, it is my foremost duty to thank my respondents who helped me to complete my field

Date: Subhankar Laskar

1.1 Introduction to the Study

3 CHAPTER 2 : LITERATURE REVIEW

4 CHAPTER 3 : BRIEF PROFILE OF THE ORGANIZATION

4.1 Mutual Fund – Concept

6 CHAPTER 5 : AN OVERVIEW OF SYSTEMATIC

5.1 Systematic Investment Plan – Concept

7 CHAPTER 6 : DATA ANALYSIS AND INTERPRETATION

6.1 Demographic Profile

8 CHAPTER 7 : FINDINGS, RECOMMENDATIONS AND

Table 6 (i) Age of the Respondents

Table 6 (ii) Gender of the Respondents

Table 6 (iii) Occupation of the Respondents

Table 6 (iv) Marital status of the Respondents

Table 6 (v) Annual Income of the Respondents

Table 6 (1) Average Annual Investment in mutual fund by the Respondents

Table 6 (2) Knowledge of respondents regarding Systematic Investment

Table 6 (3) Source of awareness of Systematic Investment Plan (SIP)

Table 6 (4) Percentage if investable funds invested through Systematic

Table 6 (5) Comfort level of the respondents in relation to SIP

Table 6 (6) Investment horizon of respondents in a single mutual fund

Table 6 (7) Preference of Respondents of Systematic Investment Plan (SIP)

Table 6 (8) Reasons for preference of respondents of SIP

Table 6 (9) Problems faced by investors of Systematic Investment Plan

Table 6 (10) Factors affecting perception of respondents towards SIP

Table 6 (11) Respondents view on effective & usefulness of Systematic

Table 6 (12) Respondents view on Systematic Investment Plan as a substitute

Table 6 (13) Awareness among respondents about risk in SIP

Table 6 (14) Respondents’ knowledge of the risks associated with SIP

Figure No. Name of the figure Page No.

Figure 6 (i) Representation of age of the Respondents

Figure 6 (ii) Representation of gender of the Respondents

Figure 6 (iii) Representation of occupation of the Respondents

Figure 6 (iv) Representation of marital status of the Respondents

Figure 6 (v) Representation of annual income of the Respondents

The objectives of the study are:-

1.3 Scope of the Study:-

The need/significance of this study can be summarized as follows:-

1.5 Limitations of the study:-

1.6.1 RESEARCH DESIGN

1.6.2 SOURCES OF DATA

1.6.3 SAMPLING DESIGN