SYSTEMATIC INVESTMENT PLAN IN

MUTUAL FUND

Project id:

M.B.A Project Report

Submitted in partial fulfillment of
The requirements for the
Degree of master in Business Administration
Under Biju Pattnaik University of Technology
by
S.Aswin kumar patro Roll.no:- 201880015

2019-2020

Under the guidence of

Mr.PRAMATH N ACHARYA

National Institute of Science and Technology

Pallur Hills, Brahmapur, Odisha 761008,India
CERTIFICATE

This is to certify that the report entitled: “SIP IN MUTUAL FUND” Submitted by
S.ASWIN KUMAR PATRO Roll No. 201880015 department of Business Administration,
N.I.S.T , Berhampur, Orissa towards partial fulfillment of the requirement for the award of the
degree of Master in Business Administration (MBA) bona fide record of the work carried out by
her under my supervision and guidance.

Signature Internal Guide Signature Extranal Guide

Name: Mr.PRAMATH N ACHARYA Name: Mr. Bipin Dutta
N.I.S.T Odisha Capital Market
Place: Berhampur Place: Bhubaneswar
Date: Date:
 ACKNOWLEDGEMENT

I take this proud privilege to acknowledge gracefully the help we received from different sources
in preparation of this report.

I offer my heartfelt thanks to Mr.PRAMATH N ACHARYA, Dept. of Business Administration

N.I.S.T for encouragement and valuable suggestions, which he extended, to us from time to time in
course of completion of our Management In practice. I deeply indebted to Mr. Bipin Dutta
Manager Odisha capital market( formally known as Bhubaneswar Stock Exchange) who
rendered inestimable support in addition to his guidance, critical interest and kind encouragement
throughout the course of this work.

Finally, we acknowledge the help of various persons in the office as well as in the college for the
suggestions rendered from time to time towards the preparation of this report.

15th May 2019 S.ASWIN KUMAR PATRO

N.I.S.T

Dept. of Business Administration

 Declaration

I hereby declare that this project report title “SIP in mutual fund” submitted by me is a bonafide
work undertaken by me and it is not submitted to any other institution or university for the award
of any degree or diploma or certificate or published any time before.

S.ASWIN KUMAR PATRO 201880015

 Contents
Chapter:-1
Introduction
a) General overview
b) Purpose of study
c) Objectives of the study
Chapter:-2
Company profile, history and other operational details
Chapter:-3
About S.I.P
a) Concept of SIP
b) Working of SIP
c) SIP Calculator
d) Rupee cost averaging
e) Power of compounding
f) Comparison of SIP with other investment avenues
Chapter:-4
Research by direct survey method

a) Objective of survey
b) Data analysis and interpretation
c) Limitation of survey
d) Result and finding
Chapter:-5
Final conclusion & recommendation
Annexure
Chapter:-1
Introduction

General overview :-

Systematic Investment Plan (SIP) is an investment route offered by Mutual Funds

wherein one can invest a fixed amount in a Mutual Fund scheme at regular intervals– say once a
month or once a quarter, instead of making a lump-sum investment. The installment amount could
be as little as INR 500 a month and is similar to a recurring deposit. It’s convenient as you can give
your bank standing instructions to debit the amount every month.

SIP has been gaining popularity among Indian MF investors, as it helps in investing in a
disciplined manner without worrying about market volatility and timing the market. Systematic
Investment Plans offered by Mutual Funds are easily the best way to enter the world of
investments for the long term. It is very important to invest for the long-term, which means that
you should start investing early, in order to maximize the end returns. So your mantra should be -
Start Early, Invest Regularly to get the best out of your investments.

A mutual fund is a type of financial vehicle made up of a pool of money collected from
many investors to invest in securities such as 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 fund—derived by
the aggregating performance of the underlying investments.

A mutual fund is a company that brings together money from many people and invests it
in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund
owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of
these holdings A mutual fund is a professionally managed investment product that sells shares to
investors and pools the capital it raises to purchase investments A fund typically buys a diversified
portfolio of stock, bonds, and money market securities, or a combination of stock and bonds,
depending on the investment objectives of the fund. Mutual funds may also hold other
investments, such as derivatives. A fund that makes a continuous offering of its shares to the
public and will buy any shares an investor wishes to redeem, or sell back, is known as an open-end
fund. An open-end fund trades at net asset value (NAV).An investment vehicle that is made up of a
pool of funds collected from many investors for the purpose of investing in securities such as
stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money
managers, who invest the funds capital and attempt to produce capital gains and income for the
funds investors. A mutual funds portfolio is structured and maintained to match the investment
objectives stated in its prospectus.

Purpose of the study:-

A mutual fund is an investment vehicle made up of a pool of funds collected from

many investors for the purpose of investing in assets and securities such as stocks, bonds or
money market instruments. The AMC hires a professional money manager, who buys and sells
securities in line with the fund’s stated objective.

OBJECTIVE OF THE STUDY:

 To give an idea about the regulations of mutual funds.

 To give a brief idea about the benefits available from mutual fund investment.
 To give an idea of the types of schemes available.
 To discuss about the market trends of SIP.
 To study some of the SIP schemes.
 Explore the recent developments in the mutual fund in India.
Chapter:-2
Company profile

ODISHA CAPITAL MARKET & ENTERPRISES LTD.

(Formerly Bhubaneswar Stock Exchange Ltd.)

Background

Bhubaneswar Stock Exchange Ltd. (BhSE) which had been functioning as a recognized stock
exchange in the State of Odisha since the year 1989, has taken exit as a stock exchange w.e.f.
February 09, 2015 pursuant to exit policy of Securities and Exchange Board of India (SEBI) for
non-performing stock exchanges in the country. In this context, SEBI has issued an order on
February 09, 2015 for exit of BhSE as a stock exchange after ensuring compliance of various
formalities by BhSE associated with such exit process. SEBI in its said order had directed BhSE,
among other requirements, to change its name and not to use the expression “Stock Exchange” or
any variant of this expression in its name.

As it was required in the exit order issued by SEBI, the name of the Company has been changed
from “Bhubaneswar Stock Exchange Ltd.” to “Odisha Capital Market & Enterprises Ltd.”
With effect from 9th June, 2015 with the approval of the Registrar of Companies, Odisha in terms
of provisions of the Companies Act, 2013. Now, after exit of BhSE as a stock exchange, the
Company of erstwhile BhSE functions under a new name “Odisha Capital Market & Enterprises
Ltd.” with an altered set of Memorandum and Articles of Association in terms of provisions of the
Companies Act, 2013.

Management

The affairs of the company are controlled and supervised by the Board of Directors under the
provisions of its Memorandum and Articles of Association. The duties and responsibilities of day
to day management and affairs of the company are now vested with Mr. Debasis Samantaray,
Director, who is assisted by a team of managerial and other employees of the company.
Business Operation

Odisha Capital Market & Enterprises Ltd. in terms of its altered Memorandum of Association is
now taking steps to carry on different activities in the domain of capital market. More particularly,
it is committed to carry on campaigning financial literacy for financial inclusion in the State in
addition to working for assisting financial education as were discharged by the erstwhile BhSE as a
stock exchange.

Current Activities other than Business Operation

Apart from business operation, the company is engaged in promotion and development of other
activities in the interest of the investing public in capital market in a big way such as –

Investors’ Awareness Programme

2
The company is conducting investors’ awareness programmes by way of seminars/workshop from
time to time for education and awareness of investing public in securities. The aim of the company
is to have as many as awareness programmes in a year at different locations of the State of Orissa.

Securities Market Training Programme

The company is providing a Certificate Course, namely, “Basics of Capital Market.

With the expansion of capital market which includes the reach of its activities in the form of course
contents at various B-Schools and +2 Commerce level schools, practical oriented education
programme in securities market activities is in increasing demand now days as it promises youth to
make career in the field of securities market. The company aims at undertaking practical oriented
training programmes for the students of + Commerce and B-Schools in a big way as well as for the
youths who want to make their career in securities market. At present, the company is engaged in
imparting training to the students of various management institutes.

Students Assistance Programme

The students of various Institutes and B-Schools require preparing project papers on different
topics including the topics related to activities in Stock Exchange and securities market. The
students of a number of Institutes and B-Schools visit the company either directly or sponsored by
their Institutes every year for assistance in preparation of their project papers. The company assists
and supports those students in their research work by providing necessary guidance and securities
market information.
CHAPTER:-3

SYSTEMATIC INVESTMENT PLANS (SIP)

“Little drops of water make the mighty ocean”

It 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.

What is SIP?
The systematic investment plan or SIP is an investment strategy offered by fund house to
investors, making it convenient to invest small sum of money in their mutual fund.

What is a Mutual Fund?

A mutual fund is a professionally managed investment scheme, usually run by an asset
management company that brings together a group of people and invests their money in stocks,
bonds and other securities.

Power of compounding

The biggest force that drives investments ahead is the power of compounding. Although,
systematic investments are smaller, investors can benefit higher with the power of compounding.
Starting to invest early can build opportunities of higher returns. Simply, the small amounts that
you invest every month generate returns over the invested period and similarly the returns upon the
previous investment gets added to your new investments. An amount of Rs. 2000/- invested every
month for 5 years with an assumption of 10% CAGR will generate Rs. 1,54,874.

Find out your monthly SIP investment amounts to achieve your goals with our SIP Returns
Calculator.
Example:

Illustration: Estimated returns from SIP into an Equity Mutual Fund (at an assumed rate of 12%
p.a.)

PERSON A PERSON B PERSON C

No. of years 10 20 30
No. of months 120 240 360
invested
Monthly inv. Amount 15000 7500 5000
Mutual fund returns 12% 12% 12%
(assumed)
Monthly returns 0.95% 0.95% 0.95%
Total amt. invested 1800000 1800000 1800000
Est. redemption amt. Rs. 3,360,538 6,898,930 15,404,866
It shows that in time pace and long run systematic investment in SIP mutual fund increasing in
long run due to compounding effect.

1 Effect of Compounding
Unlike simple interest, the compounding involves making the interest earned, a part of your
base capital and the subsequent interest is calculated on the basis of this new increased
capital. Thus, Compound Interest leads to an exponential growth of your money. The
effect of compounding increases as the investment tenure increases. The table below
illustrates the fact.

Types of SIP SIP Rate of Return at Total output

investment investment interest the end of
Interest
tenure tenure
Input in Rs.

Simple 100 5 years 10% 50 150

interest

Compound 100 5 years 10% 61 161

interest
As can be seen, there is a 7% rise in the total output when the interest is calculated on a
compounding basis. This seemingly small difference in the final output becomes staggering
as the period of investment lengthens. The table below shows the figures when calculated
for a period of 20 years. As you can see, the difference becomes even more than twice in
the long run, when the effect of compounding is playing up.

Types of SIP SIP Rate of Return at Total

interest investment investment interest the end of output
tenure tenure
Input in Rs.

Simple 100 20 years 10% 200 300

interest

Compound 100 20 years 10% 573 673

interest

Example: Consider a scenario –

Gaurav decides to invest in a SIP

 Buy the market units by investing Rs 1000/month

 Invest for 6 months.

 Condition- if NAV is low, unit will be more

If NAV is high, units will be less

Hashmi decide to invest in lump sum

 Buy units for Rs 6000 at the current NAV.

Who do you think is going to end up with a lower cost per unit at the end of the 6 months
period?
Month NAV Monthly No. Average One Time No. Average
(Rs) Investment of Cost Per Investment of Cost Per
made in SIP Units Unit made in a plain Units Unit
(Rs) Mutual Fund
(Rs)

1st 15 1000 67 12.42 6000 400 15

Rs/Unit Rs/Unit
nd
2 12 1000 83

3rd 10 1000 100

4th 12 1000 83

5th 15 1000 67

6th 12 1000 83

Total 6000 483

As can be seen from the table above:

1) Gaurav will be enjoying a gain of Rs 2.58 per unit over Hashmi.

2) Gaurav played up smart by investing consistently for a period of time.

3) In the long run he’ll be less and less affected by the ups and downs of market, as
the time period will lead to an averaging of the market fluctuations.

4) This effect is called as Rupee Cost Averaging and is primarily responsible for
making SIP a lucrative investme nt.
 1. Rupee Cost Averaging

Systematic Investment Plan (SIP enables an investor to regularly invest in a fund in the same way
as one invests in a recurring deposit scheme of a bank. In a SIP, investors buy units of the mutual
funds by contributing a fixed (and often small) amount of money at regular intervals. In the SIP,
investors do not have to worry about market timing. In other words, the issue of determining the
best time to invest does not arise. Basically, SIP is governed by the principle of Rupee Cost
Averaging (RCA).

Analysis:

RCA is a strategy that helps to avoid the perennial concern about the right time to invest. “To buy
low and sell high” is every investor’s ambition. However, one cannot predict the future with any
degree of accuracy. So, the best way to avoid the nagging regrets of missing out the best time to
buy or sell is to rely on RCA which takes the guess work out of timing the markets.

Two Tables followed by two respective trend charts of RCA in a falling market as well as in a
rising market are presented below in support of the principle:

Table - 1
RCA in a Falling Market
Date of Investment Monthly Price Units
Investment

1st January 1000.00 32 31

 1st February 1000.00 22 45

1st March 1000.00 22 45

1st April 1000.00 18 56

1st May 1000.00 16 63

1st June 1000.00 11 91

WAP=331
Total investment 6000.00 SAP=298
WAP = Weighted Average Price, SAP = Simple Average Price

100

90

80

70

60

50 price
units
40

30

20

10

0
Jan/01 Feb/01 Mar/01 Apr/01 May/01 Jun/01

Table – 2
 RCA in a Rising Market
Monthly
Date of Investment Investment Price Units

1st January 1000.00 11 91

1st February 1000.00 16 63
1st March 1000.00 18 56
1ST April 1000.00 22 45
1ST May 1000.00 22 45
1st June 1000.00 32 31
WAP=18.12 331
Total investment 6000.00 SAP=20.17 298
WAP = Weighted Average Price, SAP = Simple Average Price
100

90

80

70

60

50 price
units
40

30

20

10

0
Jan/01 Feb/01 Mar/01 Apr/01 May/01 Jun/01

Interpretation:

Assume that Rs.1000 is invested monthly for a period of six months in the units of a certain SIP.
Table 1 shows the declining prices of the units of the scheme from January through June i.e. from
the level of Rs.32 to a level of Rs.11 in a falling market that enable an investor to get an increased
number of units on his investment from month to month till June.

Table 1 also shows that at the end of six months if the plan of investing Rs.1000 every month is
followed, on total investment of Rs.6000 the investor gets 331 units of a scheme at a Weighted
Average Price (WAP) of Rs.18.12 per unit. On the other hand, if one worries about when to invest
such entire Rs.6000 into the scheme at one time knowing that the market is falling but never
knowing when it is likely to be flatten out, one is likely to invest this sum at the Simple Average
Price (SAP) of Rs.20.17 per unit. In this way, one would be able to purchase an average of only
298 units. Clearly, RCA works out to be a better strategy.

Similarly, using the same SIP, one can consider a situation where the market is rising as shown in
Table 2. Here the prices are reversed and increase from a low of Rs.11 to a high of Rs.32 by June.

Findings:

The two tables show that in following the SIP of investing Rs.1000 every month, one has 331 units
of the scheme at a WAP of Rs.18.12 per unit. However, in case one invests the entire Rs.6000 in
one go on a random date, the expected price will be Rs.2017 and one will have only 298 units on

an average. Thus, the RCA system is a winner.

That is why the RCA principle is also called the no-brainer strategy. Incidentally, it should be
noted that SIPs normally do not charge an entry load. However, AMCs often do charge an exit
load if an SIP investor redeems the units prematurely. The offer document indicates the lock-in
period during which exit load is applicable.
 SURVEY

DATA COLLECTION

For the survey, 100 respondents were targeted who were either regular investors or were
prospective investors. The survey was conducted through two channels:

 In person, one to one and

 Online
The entire survey was conducted over a period of 3 days from 12th July 2019 to 14th July 2019
Henceforth the data collected was organized and studied in detail. The data was then analyzed
through graphical methods and results were drawn. These results were then used to draw
inferences so that recommendations and suggestions could be documented.

DATA ANALYSIS

All the raw data collected is not useful in its original form to carry out analysis and obtain results.
The data has to be organized and filtered before it can be used for carrying out analysis and
obtaining results. The data collected during survey was organized and some parameters were
selected which would be used in carrying out the analysis. Graphical method of analysis seemed
to be the most suitable method of carrying out the analysis. With the help of Pie Charts the data
has been studied and inferences drawn.

Only close ended questions have been taken into the analysis as they fit suitably in the graphical
method of data analysis.
GRAPHS AND INTERPRETION

1. Age group to which the sample population belongs

Fig. no-1

Chart Title

10%
4% Less than 30
36%
30-35
22% 36-40
41-45
above 45

28%

Interpretation:

Age group vis-à-vis risk taking appetite of the respondent

It is observed that majority of respondent’s lies within an age group of under 30

years.
This is an age where a person can take high risk so that he/she can gain more return
to complete his/her desire or needs.
At an age of 40 or above 45 don’t have that much of appetite to take risk and lose
the invested amount.
Rather to go for fixed deposit or we can say that riskless saving like bank term
deposits.
2. Employment status of the sample population

Fig. no-4

1 14
Full time
Others
11
Part time
57 Retired
17
Self employed

Interpretation:

Employee status vis-à-vis period of holding the investment

It is viewed the 57 respondents works as full timers.

It has been found that respondents hold for long term purpose.
If a person is regular worker then he/she can invest for a long term, so that they can gain a
good yield. If a person is not a regular worker in case working as a part timer or retired
person due to irregular income source he may be an irregular investor and can’t hold for a
longer period of time.
3.Annual Income pattern of sample population

Total
0

Fig. no-3
18 Below Rs. 20,000
24
Rs.20,001-Rs.40,000
Rs.40,001-Rs.60,000
18 Rs.60,001-Rs.80,000
Rs.80,001 and above
23
(blank)
16

Interpretation:

Annual income vis-à-vis amount of investors of the respondent

It exhibits that the higher the annual income the proportion the investment will be.
In this case if a person is earning Rs.200000 p.a. he is going to invest only 10k to 20k not
more than that, because other obligation he may have.
In the above fig. 23 respondents are below 20k and 23 respondents earn 20k-40k per month
so they can invest a little bit high amount.so that they can earn a handsome profit.
Income is directly proportion to investment.
4. Amount of money respondents invest yearly

Fig. no-7

Total

11
Above Rs.1,00,000

37 Rs.25001-Rs.35,000
Rs.35,001-Rs.50,000
26
Rs.50,001-Rs.75,000
Rs.75,001-Rs.1,00,000
Upto Rs.25,000
13 7
6

Interpretation:

It is exhibited from (fig. no-7) that 37 respondents have invested up to 25k accordance with
their income pattern.
Then 26 respondents has invested 35k, similarly a minor group of respondent has invested
above Rs.100000 i.e., 11 respondent.
“more income, more investment, more risk, more return”
 5.Objective of investment of respondents from sample population

Fig. no-8

Total
All of the above
6
1 13
4 Income and/or
49 Growth of Capital
Inflation protection
27

Marketability/liquid
ity

Interpretation:

It has been observed that from (fig. 8) 49 respondents objective is to cope up with inflation
rate as day-by-day the rate of goods and services are increasing it has to be managed by
these investment. For safety purpose, emergency need, tax benefits, income or growth etc
are other objective of respondents.
Whereas 27 respondents said that their main objective is to get the income from the
investment.
6. Investment in mutual fund yes or no?

Fig. no-10 fig. no-11

Total Total
0
All of the above
12 32
4
24
10
No
Diversified
Yes portfolio of several
securities with
35 lesser investment
87
Less risk and better
return

Interpretation:

If yes what is the reason of investment in Mutual Fund

From the fig. 10 it is seen that 87 respondents invested in Mutual Fund.

And the reasons are less risk and better return Diversified portfolio of several
securities with lesser investment, professionally managed, Liquidity and Tax
benefit of mutual fund investment.
35 respondents has diversified portfolio.
7. Manner of investment in mutual fund

Fig. no-14

Total

15

Lump sum

Systematic investment
plan (SIP)

85

Interpretation:

If SIP, why do you preferred

It shows that 85 respondents preferred systematic investment plan (SIP).

The reason behind investment in the SIP is, it provide a regular investment habit and it
also helps in dividing the amount of investment.
Whereas it also seen that only 15 respondents have invested in lump sum, as per their
wish.
But respondents view point is that why to take at a time burden.
 Total

Both of the above

17

It offers easy habitual

investment like recurring
57 deposit
26
It provides facility of rupee
cost averaging as per the
market conditions

Fig.no-15

It is seen that from the fig. 15, 57 respondents prefer SIP due to the reason
that it offer habituated investment and also facility of RCA as per market
condition.
Rupee Cost Averaging is tool or we can say technic to hedge the risk.
It is also been observed that 26 respondents prefer it because it is providing
easy of payment.
8. Perception towards the brand of mutual fund of the respondents

Fig. no-19

Total
All of the above
13
41 Investment strategy
23

18 Performance
5

Interpretation:

From the fig. no-19 it is observed that perception of 41 respondents that they prefer
a particular brand due to the performance, reliability, as it is manage by fund
managers, as it is well diversified.
And also it can be seen that 23 respondents prefer a particular brand because of
professional management bodies.
9. Satisfaction level of respondents towards investment on mutual fund

Fig. no-20

Interpretation:

It is seen that 37.8% respondents are very much satisfied with service provided by the
respective mutual funds companies.
As now a days due to strict regulation of sebi and other constitutions the mutual fund
institutions are providing better options and also sharing all kinds of charges and
documentation. So the 29.31% of respondents are rated excellent.
Findings

 It was found that most of them choose to be conservative and less aggressive in nature while
investing into mutual funds schemes.
 People generally like to save their savings in fixed deposits and saving accounts as there was
very less risk.
 The most popular medium of investment in mutual fund is through SIP and moreover people
like to invest in equity funds though it is risky.
 It was found that post graduates qualified investors were more in numbers when compared to
under graduate qualified investors. This shows people are taking risk when they are
experienced in well terms.
 It was seen that most of the people have invested in mutual funds due to risk diversification
though SIP.
 People having age of 25-40 where a person can take high risk so that he/she can gain more
return to complete his/her desire or needs.
 It has been observed that investment objective is to cope up with inflation rate as day-by-day
the rate of goods and services are increasing it has to be managed by these investment. For
safety purpose, emergency need, tax benefits, income or growth etc are other objectives.

Suggestion and recommendation

It is seen that still now a big part of society is untapped by mutual fund companies due to lack of
awareness. Therefore massive financial campaigning is required the channels may be radio,
television, newspaper, seminars, and work shop.

 Though investors are showing interest for investment the portfolio manager should
carefully mobilize and utilize the fund in a productive manner so that more and more
Investors can be attracted.
 In case any company is involved in any type of manipulation activities there should be a
statutory body to handle this kind of situations, that’s why grievance redressal mechanism
should be strengthen. So that investor’s interest can be protected.
 One more facility can provided by the mutual funds companies i.e., step to be taken to
reach the door step of the investors.
 Investors service system should be strengthen, if investors are paying for the services they
must avail a good service.
 SIP is one of the innovative products launched by AMC in the industry. SIP is easy for
monthly salaried person as it provides the facilities of do the investment in EMIs.
 Though most of the prospects and potential investors are not aware about the SIP. There is
a large scope for the companies to trap the salaried persons.
 Mutual fund companies needs to give the training of the individual financial advisor about
the funds/schemes and its objectives, because they are the main source of influence the
investors.
 Young people aged under 35 will be a key new customers group into the future, so making
greater efforts with younger customer who show some interest in investing should be pay
off.
 Limitations

Time constraint due to shortage and less availability of period it may be possible that all the
related and concerned aspects may not be covered in this project.

1. It was not possible to expand the coverage of beyond 100 people due to constraint of time.
2. Survey task was to cope of with the cooperation of the respondents covered under survey.
3. All the targeted respondents were not fully aware of the investment prospective of mutual
fund.
4. All the respondents covered under survey were not equally aged, qualified and earning
capable for facilitation of making a balanced or uniform conclusion of the survey.
5. Many of respondents hesitated and show reluctant to share their personal information.
Chaper-4

Conclusion
The Indian mutual fund industry has transformed totally for good since last decade and has shown
growth and potential. Though the asset under management and number of schemes has increased
significantly, but it is yet to be household product, and needs to cover the retail segment
effectively. Moreover, there are still many remote and potential areas which lack the required
knowledge and infrastructure of mutual funds.

Mutual fund is an excellent product offering great flexibility and liquidity, which can be tailored to
suit any investor’s objective and it is affordable for the all people of different income levels and
saving habits. Mutual funds now represent perhaps most appropriate investment opportunity for
most investor’s. As financial markets become more sophisticated and complex, investor’s need a
financial intermediary who provides the required knowledge and professional expertise on
successful investing. As the investor always try to maximize the returns with affordable risk.
Mutual fund satisfies these requirements by providing attractive returns with affordable risks.

After doing study it is concluded that yes mutual funds are much better investment option but as
future is uncertain so no one can give a sure guarantee of good returns, no matter whether it is
equity or a mutual fund. Investors can minimize their risk by doing little research before investing
in the markets which will help them to decide the right investment plan or product.1
 APPENDIX

Questionnaires Survey on Investor Awareness on Mutual Fund

1. Your current age is within which of the following categories:

a) Under 30
b) 30-35
c) 36-40
d) 41-45
e) Over 45

2. Your employment status:

a) Full time
b) Part time
c) Self employed
d) Retired
e) Others
3. Your aggregate monthly income:

a) Below Rs.20,000
b) Rs.20,001 - Rs.30,000
c) Rs.30,001 – Rs.50,000
d) Rs.50,001 – Rs.80,000
e) Rs.80,001 – Rs.1,00,000
f) Above Rs.1,00,000
4. What amount of money do you invest yearly?
a) Up to Rs.25,000
b) Rs.25,001 - Rs.35,000
c) Rs.35,001 – Rs.50,000
d) Rs.50,001 – Rs.75,000
e) Rs.75,001 – Rs.1,00,000
f) Above Rs.1,00,000

5. What is the objective of your investment?

a) Tax exemption
b) Income and/or Growth of capital
c) Safety
d) Inflation protection
e) Marketability/ liquidity
6. Do you invest in Mutual Fund?
a) Yes
b) No
7. Why do you invest in Mutual Fund?
a) Less risk and better return
b) Diversified portfolio of several securities with lesser investment
c) Professionally managed
d) Liquidity
e) Tax benefit
f) All the above
8. What is the manner of your investment in Mutual Fund?
a) Lump sum
b) Systematic Investment Plan (SIP)

If SIP, why do you prefer it?

 a) It offers easy habitual investment like recurring deposit

b) It provides facility of rupee cost averaging as per the market condition

c) Both (a) & (b)

9. Why do you prefer a particular brand of Mutual Fund?

a) Performance

b) Well diversification

c) Investment strategy

d) Professional Fund Manager

e) All the above

10. .What is the level of your satisfaction with Mutual Fund investment?

a) Excellent

b) Very Good

c) Good

d) Average

e) Below Average
 Bibliography:

Websites

1) www.mutualfundindia.com
2) www.mututalfunds.com
3) www.sebi.com
4) www.moneycontrol.com
5) www.rbi.org.in
6) www.capitalmarket.com
7) www.shamdham.org
8) www.cybersurat.com
9) www.amfi.com
10) www.bseindia.com
11) www.sebi.gov.in