Report on Sip

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A Project Report On:

Awareness about systematic

investment plan: A Best

instrument for investment in

mutual fund

(With special reference to motilal oswal)

report SUBMITTED BY:

Dipak prajapatiRoll no. 14 mba.ii

report SUBMITTED to;

Mr.kamlesh K PATEL

Summer placement coordinatorS.K.SCHOOL OF BUSINESS MANAGEMENT

PATAN


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S.K.School of Business Management,Patan

S.K.SCHOOL OF BUSINESS MANAGEMENT,SCHOOL OF BUSINESS MANAGEMENT,

HEMCHANDRACHARYA NORTH GUJARAT

UNIVERSITY,

PATAN

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CONTENTS:

serial

no Topic

Page

no.

1 certificate by organization 4

2 Acknowledgement 5

3 executive summary 6

4 company overview &introduction 8-11

5 MOSt Vision ,history& milestone 12-20

6 People behind organization 21-23

7 Service provide by MOSL 24-30

8 About mutual fund 31-349 Whats mutual funds SIP? 35-37

10 Performance of SIPs 38-40

11 How to invest in SIP? 41

12 Systematic investment plan(in detail) 42-44

13 Objective of study 45

14 Methodology 46

15 Data analysis & interpretation 47-63

16 SWOT analysis of MOSL 64-67

17 Bibliography 68

18 Questionnaire 69-73

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DECLARATION

I, Mr. Dipak Prajapati do hereby declare that the project report titled

AWARENESS ABOUT SYSTEMATIC INVESTMENT PLAN:A

INSTRUMENT FOR INVESTMENT IN MUTUAL FUND is a genuine

research work undertaken by me and it has not been published anywhere earlier.

Date: 25/7/2009

Place: Patan

Dipak Prajapati

SKSBM, Patan

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PREFACE

It is true that the world outside your cozy home is many a time quite

different from what you have perceived. Similarly, it is possible that the

theoretical knowledge acquired in the classroom may differ from the

practical knowledge.

In order to make an individual aware of the practical implication of

what he has learned. He is enriched with the practical training. I as a

student of M.B.A. got this opportunity to know what is actually happening

in a company. The main areas covered during the training period are:

Marketing department, HR department, Financial department, Customer

care department and Technical department,

I have taken training at Motilal Oswal Securities Ltd. I have sincerely

acquired all the necessary information for my project report during my

training period. I hope that this report will satisfy the object requirement.

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Acknowledgement

Chain of mistakes leads towards failures, chain of failures leads to experience and chain of

experience leads to success. Thats what a lifes path is.

Same is applicable to my research work. I do not claim that I have a complete knowledge of

the subject. There are many persons who directly or indirectly helped me during our project.

I am really thankful to Mr. Vijay Patel a CEO of Motilal Oswal Securities Ltd, Mehsana him

kind co-operation throughout the project.

I would like to also thankful to Mr. Mahesh Makvana and other back office staff and trading

dealer staff for their continuous support.

I would like to thank with utmost gratitude to Mr. Kamalesh K Patel, the current Proffesor

and Co- ordinator of project and other faculty members for guiding me time to time during the

project.

I would like also thankful to Mr.Jay Oza they have to providing fully Information regarding

Mutual Fund theoretically as well as practically.

I am also thankful to Mr. Ajay Patel, Mr. Sanjay Patel, Mr. Jay Pandya and other staff.

I take a great pleasure in expressing deep sense of gratitude towards him for having given us

opportunity to do a project on market analysis of Motilal Oswal Securities Ltd.

Executive summary:

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In India, Securities market is a very booming sector. There are many players-

( Brokers Or Sub-brokers ) comes in this market. They have cut-through competition to

cover more & more market. They provide different kind of services in mutual fund. So I

basically prefer securities market & specially Mutual Fund. I cover following main topic in

this project which show all the information of Mutual Fund & Motilal Oswal Securities

Limited.

Indian financial system

About Indian stock market BSE & NSE

Companys Background

Mutual Fund Services Provided by MOSL

Discussion about systematic investment plans

Questionnair Data Analysis & Interpretation

Finding & Suggestion

Testing hypothesis

Motilal Oswal Securities Limited is a brand name of in Securities market. It is specially Known

for its successful research ideas. Mutual fund is basically dependent on research, so I can say

that mutual fund of different AMCs provided by Motilal Oswal is really very successful and

gives more return. Company has gotten Best Local Brokerage House by Asia money Pole

2005.

I included different kind of AMCs Mutual fund provided by MOSL & their schemes &

features.

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I did a live survey on awareness of Mutual fund with 100 sample size. I included 14 questions in

my questioner and found that the market of Mehsana city is very potential for mutual fund. But

they have not proper information and guideline. I also found that they believe that Mutual fund

is gives more return.

In mehsana when in the field or survey I note that many people know about

The systematic investment plan of mutual fund and they have a good knowledge about

this instrument there is a big scope for brokers and mutual funds company.

I learn lost of things and quality of manager with practical experience.

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Organization overview

Introduction

Motilal Oswal Securities Ltd. (MOSt) is a leading research and

advisory based stock broking house of India, with a dominant position in both

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institutional equities and retail wealth management. Our services include equities,

derivatives, e-broking, portfolio management, mutual funds, commodities, IPOs

and depository services.

In March 2006, AQ Research, a firm that analyses the accuracy of a

brokers research call, declared Motilal Oswal Securities the best research house

for Indian stocks.

Research is the solid foundation on which Motilal Oswal Securities

advice is based. Almost 10% of revenue is invested on equity research and we hire

and train the best resources to become advisors. At present we have over 35

analysts researching over 15 sectors. From a fundamental, technical and

derivatives research perspective; Motilal Oswal's research reports have received

wide coverage in the media (over a 1000 mentions last year).

Motilal Oswal Securities has witnessed rapid organic growth due to

favorable market conditions as well as efforts put in by the company itself. FY05

and FY06 saw the company grow inorganically through acquisition of five

significant regional broking firms from Andhra Pradesh, Karnataka, Kerala, Gujrat

and UP. Over a period of time many more regional broking firms may be

acquired to gain solid footing in various regions of India.

The company has also established a base in the UAE to address the needs of the

overseas audience.

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Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-

broking unit, with just two people running the show. Focus on customer-first-

attitude, ethical and transparent business practices, respect for professionalism,

research-based value investing and implementation of cutting-edge technology

have enabled us to blossom into an almost two thousand-member team.

Our institutional business unit has relationships with almost all leading foreign

institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent

media report we were rated as one of the top-10 brokers in terms of businesstransacted for FIIs

The retail business unit provides equity investment solutions to more

than 1,75,000 investors through over 1000 outlets spanning 375 cities and 24

states. These solutions are provided by a force of over 2000 employees and over

1000 Business Associates. We provide advice-based broking (equities and

derivatives), portfolio management services (PMS), e-Broking, depository

services, commodities trading, IPO and mutual fund investment advisory services.

Our Value PMS Scheme has demonstrated very strong performance

backed by our single-minded focus on research-based value

investing and the experience and management of Mr. Raamdeo Agrawal an

acknowledged expert in value investing.

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Our unique Wealth Creation Study, authored by Mr. Raamdeo Agrawal,

Managing Director, is now in its eleventh year. Investors keenly await this annual

study for the wealth of information it has on how companies created wealth during

the preceding five years.

The organization finds its strength in its team of young, talented and

confident individuals. Qualified professionals carry out different functions under

the able leadership of its promoters, Mr. Motilal Oswal and Mr. Raamdeo

Agrawal. Stringent employee selection process, focus on continuous training and

adoption of best management practices drive the quest to achieving our Core

Purpose and Values.

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MOSt Vision

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MOSt Guiding Principles & Core Values :-

Customer interest is paramount

Ethical and transparent business practices

Respect for professionals, associates and business partners

Research based value investing

Cutting edge technology to ensure world-class customer service

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MOSt History & Milestones

The story of Motilal Oswal Securities Ltd (MOSt) goes back many

years, when Mr. Motilal Oswal and Mr. Raamdeo Agrawal met each other as

students in a Mumbai suburban hostel in the early eighties. Both the young chartered

accountants hailing from a rural & an unpretentious background had a common

dream viz 'to build a professional organization with strong value systems, to provide

reliable & honest investment advice to investors'. Thus was born their first enterprise

called "Prudential Portfolio Services" in 1987.

2009:-

Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for

creating India's largest dealing room in Mumbai MOSL was 'Rated No.1 Best

recommendations Mid & Small Caps' and won awards in 3 out of 4 categories at theStarmine India Broker Rankings 2009 from Thomson Reuters

2008 :-

MOSL creates one of India's largest Equity Dealing & Advisory rooms,

spread over 26,000 sq ft in Malad, Mumbai Motilal Oswal's India Business

Excellence Fund raised USD 125 million, 25% higher than the initial target of USD

100 million D & B survey rates MOSL as India's top Broking House in terms of

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total number of trading terminals MOSL alliance with IDBI Bank to offer Online

Trading Services Asia Money Brokers poll 2007 rates Motilal Oswal Securities Ltd.

- Best Overall Country Research - Local Brokerage

2007 :-

The Strategic partnership between MOSL and SBI

- EZtrade - reaches an important milestone i.e. In less than a year it has managed

to sign up more than 10,000 customers Starts Knowledge First campaign Motilal

Oswal was percieved as the most Research driven stock trading player - Starcom

Mediavest Survey Introduces a separate brand for Private Client Group - Purple

Motilal Oswal Commodities Broker Pvt Ltd (MOCBPL) bagges Globoil India's

prestigious 'Outstanding Commodity Broking House 2007' Award Motilal Oswal

Financial Services ltd. gets listed on the BSE & NSE.

Mr. Motilal Oswal - Chairman and Managing Director has beenappointed as a member of the Managing Committee of Indian Merchant Chambers.

Motilal Oswal Financial Services Ltd files RHP with SEBI for an IPO Motilal

Oswal Financial Services Ltd. features as a case study in Harvard Business School

Motilal Oswal Financial Services Ltd ties up with Punjab National Bank to offer

online trading to its customers.

2006 :-

Organizes the second India Conference with Bear Stearns New York featuring

discussion panels and presentations by prominent business leaders and senior

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management of Indian companies in banking, technology, healthcare, consumer, oil

and gas, infrastructure and other key sectors.

Launches the India Business Excellence Fund (IBEF), a US$ 100 mn India focused

Private Equity Fund.

Investment Banking business advises Aban in their majority controlling stake of

Sinvest ASA one of the largest investment banking deals of 2006.

Places 9.29% with two leading private equity investors - New Vernon Private

Equity Limited and Bessemer Venture Partners.

Issues 14% of companys equity to employees as ESOPs.

Acquires a leading south Indian brokerage firm - Peninsular Capital Markets. Also

acquires 3 more brokerage firms in UP and Gujarat.

Enters Private Equity and Investment Banking businesses.

Value PMS gives 390% returns to its investors between Feb 2003 and March 2006.

Relaunches its e-Broking service through a nationwide campaign. First advice-

based online trading proposition in the Indian markets.

Another milestone in distribution over 1000 outlets, over 375 cities, serving over

1,75,000 customers.

Employee base crosses 2000 and Business Associate base crosses 1000.

2005 :-

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Organises the first India Conference with Bear Stearns in New York. Indias

largest such conference of its kind in the US.

Asia money Brokers Poll 2005 rates Motilal Oswal Securities - Best Local

Brokerage, MOSt Independent Research House, Best in Sales and Service.

Launches two new Portfolio Management Schemes - Value Hedging for

derivatives and Discover Value for the Rs. 5 lakh to Rs. 50 lakh category.

Acquires local brokerage Gayatri Capitals from Andhra Pradesh and Varghese

from Karnataka.

Deepest distribution in the stock broking segment with 700 outlets in 320 cities and

1,20,000 customers.

2004 :-

Presence expanded to 270 outlets in 150 cities and 20 states.

Value PMS delivers a whopping 160% post tax returns for the period ended April

Bulls Eye PMS - A momentum based PMS launched.

Start of the Solid Research Solid Advice campaign.

2003 :-

Enters the mutual fund and IPO distribution business.

MOSt Portfolio Management Services launched with Mr. Raamdeo Agrawal as the

Portfolio Manager. Uniquely structured performance related fees.

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Inquire team is successful in capturing the uptrend in Banking, Auto and

Infrastructure sectors.

Received the Asia Money award for the Best Overall Domestic Research House-

Mega funds.

Crossed 15,000 Depository accounts.

9 own branches setup at 7 cities to provide Equity Advisory Services. More in the

pipeline.

150 outlets in 110 cities across 18 states & one Union Territory in India manned by

1000 people servicing over 15,000 Retail and Institutional Investors.

2002 :-

Mr. Navin Agarwal, Head of Equity Research & Institutional sales, inducted in the

Board of Directors.

MOSt consolidates its retail operations & upgrades its IT / Back Office

infrastructure to cater to its growing network of branches, Franchisees and Channel

Partners.

Received the Asia Money Award - 2nd Best among Indian Brokerage firms.

Retail network completes coverage of 100 cities in India.

Direct servicing of HNI clients is initiated.

Crosses 10,000 Depository accounts.

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2001 :-

Legendary marketing guru Shunu Sens services taken to revitalise retail marketing

strategy and branding efforts.

Starts offering Derivatives products and advisory services on both BSE as well as

NSE.

2000 :-

Received the Asia Money award for the Best Domestic Equity house.

Both Mr. Motilal Oswal and Mr. Raamdeo Agrawal receive Rashtriya Samman

Patra from Central Board of Direct Taxes for being amongst the top 50 tax payers in

India from FY94-FY98.

Acquires its 100th Franchisee / Channel Partner and emerges as a leading player in

the Indian Broking Sector.

Becomes a Depository Participant of Central Depository Services Limited

(CDSIL).

1999 :-

Mr. Raamdeo Agrawal starts attending legendary billionaire investor WarrenBuffetts Annual General Meetings of Berkshire Hathway Inc. He still continues to

attend it every year.

The Wealth Creation Study started in 1996 culminates into Wealth Creation

Seminar and Awards function in 1998.

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Mr. Motilal Oswal

Chairman and Managing Director

Mr. Motilal Oswal is the promoter of Motilal Oswal Securities Ltd. He is an

member of Institute of Chartered Accountants of India and started the business along with the co-

promoter Mr. Raamdeo Agarwal in 1987.Business Administration is his forte, Honesty,

transparency and client goodwill form the core of his business practice.

Service is required in everything, in research, in execution and in settlement. It is

going to be the key to survival. If you give good service and value to your clients, it ill translate

into good business.

This has been a strong belief of Mr. Motilal Oswal and he has not only practiced it

himself but also made efforts to inculcate similar values in the employees of the organization. He

had been elected as a Director of BSE and joined its governing board in 1998. He is currently a

member of various committees of CDSIL and SEBI. He is currently a member of the NSE

committee for F&O.

Mr. Raamdeo Agrawal

Joint Managing Director

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Mr. Raamdeo Agrawal is the co-promoter of Motilal Oswal Securities Ltd. A

member of the Institute of Chartered Accountants of India & an equity research stalwart, he is the

man behind the strong research capability at MOSt. He is respected by all in the research and

broking industry for his valuable insights on issues related to equity research. His firm belief in

Value-Investing, as practiced by the legendary Warren Buffett and Charlie Munger, forms the

core of MOSt investment philosophy. He is a member of the National Committee on Capital

Markets of the Confederation of Indian Industry.

He authors the annual Motilal Oswal Wealth Creation Study .

He has also featured on Wizards of Dalal Street on CNBC TV18 and is much sought after by the

media for his expert views on the markets.

Mr. Navin Agrawal

Director

Mr. Navin Agarwal is on the Board of Motilal Oswal Financial Services Limited. He is a

member of Institute of Chartered Accountants of India, Institute of Cost & Works Accountants

of India, and Institute of CompanySecretariesofIndia.

He heads the Institutional Broking business and has been instrumental in building a

market leading position with domestic and foreign institutional investors. Under his leadership,

the firm has been rated as The Best Indian Brokerage House by Asia money 2005. Leveraging

on the dominant positioning in institutional business, he has also been instrumental in building

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an Institutional Derivatives business when derivative products were introduced in the Indian

markets. Here again, a market leading position has been established by MOSL.

As a member of the board, Mr. Agarwal believes in leveraging the core strengths of

a strong brand, a vast distribution network and unmatched research capabilities and has been

closely involved in the creation of the investment banking and private equity businesses. He

believes that the core strengths of the firm can be further leveraged to establish itself as the most

preferred Indian financial services organisation.

He has recently authored Money Monarchs a book on the stock markets.

Management Team

MOSt management team is regularly engaged in finding ways to improve

operational efficiencies and customer satisfaction.

You will find CAs, CFAs, ICWAs, CSs, MBAs and IT professionals managing

crucial functions, to bring you best products and services - from research & advice to trade

execution & settlement. At MOSt we practice meritocracy and each of the team members is

provided extensive training.

Training & Manpower Development

MOSt conducts various training and development programs regularly to enhance

the capabilities of its team. As much as 5% of the salary bill is spent on such programs, which is

amongst the highest for a broking organization in India. MOSt is truly a learning organization with

lead being taken by the Directors, who regularly participate in top management learning programs

like Strategic Management Program at Indian School of Business, Hyderabad, Strategy Summits

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with Management Gurus like Tom Peters and Dr. Lester Thurow, Dean, Sloan School of

Management, (MIT) and Brand Management Seminar by Al Ries etc.

MOSt Wealth Creation Study and Awards function

MOSt Wealth Creation Study and Awards function has become a key event in the

Indian Capital Market. The Wealth Creation Study, initiated, in 1996 is widely appreciated in the

investment community and the Indian Corporate Sector. This annual study identifies the fastest

and the biggest wealth creators in the Indian markets over the last 5 years and felicitates them at a

public event, attended by several leading investors and equity specialists. The 9th Wealth Creation

Awards function was held at the Grand Hyatt, Mumbai on January, 2005.

SERVICES PROVIDING BY MOSL

Motilal Oswal Securities Ltd. providing different kind of services to its clients. they

are as followed

Advised based Broking on BSE / NSE ( Cash & Derivatives )

Portfolio Management Services ( PMS )

Internet Trading ( E Broking )

Timely & Researched based Investment and Trading Ideas

Depository Services ( MODES )

Advised based Mutual Fund

Commodities

IPOs.

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Advise Based Broking

Motilal Oswal Securities Ltd. providing advice based equity trading to

its clients. MOSL providing NSE, BSE and F & O trading facility to its customers. It

provides mainly broking premier Brokerage Service based on fundamental research.

Derivatives (Futures & Options) are ideal instruments to protect your portfolio

against risk. You can trade with index movements, hedge and leverage your

portfolio by limiting risk but keeping your upside unlimited.

Its research based advice is very successful in market. They use Orian

software for trading, and get connectivity through V-sat facility. They are used Bharti

Televentures V-sat connection. MOSL have NSE, BSE registration.

Depository Services

In the times of T+2 having a demat account linked to your trading account becomes really

convenient. The non-trading members also can avail of our Depository services. You

receive regular account reports and an efficient service at all times. MOSt is a member of

both NSDL and CDSL and the service is available at all our outlets in India.

Depository Service Provided By MODES

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Account Opening

Dematerialization

Re materialization

Account Transfer

Transmission

Nomination

Pledging And Hypothecation

Account Closures

. MOSt E-Broking

There is nothing more exhilarating , more daring and more rewarding than making

the right trade at the right time. Welcome to our E-Broking platform which brings you a world

class experience of online investing. Buying and selling of shares is now just a clickaway.

A multitude of resources like live quotes, charts, research, advice and onlineassistance helps you take informed decisions. Our robust risk management system and 128 bit

encryption gives you a complete security about money, shares, and transaction documents.

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MOStPMS

Motilal Oswal Securities runs three types of PMS schemes meant for investors with different

investment preferences. While our values PMS scheme is meant for investors with long-term

interest in the market, ourBulls Eye PMS scheme is meant for investors who want to take

moderate risk and generate healthy returns from the equity market from time to time. Discover

Value PMS Scheme is create wealth for investors, which comes through Consistent over long

term.

Its clients, investor community and some of the most prestigious publications like

Asia money and Institutional Investors amongst others acknowledge Motilal Oswal Securities as

one of the leading research based equity broking house in India. With about 15% of our revenue

invested in our research capability, we have some of the sharpest resources that produce

excellent research insights on companies. The same is then passed to our highly rated portfolio

management and investment advisory team that works on its personalized investment strategy.

MOSt Commodities

Investors looking for a fast-paced dynamic market with excellent liquidity can NOW trade in

Commodity Futures Market. The Commodity Exchange is a Public Market forum and anyone

can play in these vital Commodity Markets. Motilal Oswal Commodities Broker (P) Ltd can

certainly be your point of entry to the Commodity Markets. MOCB is a registered trading-cum-

clearing member of NCDEX. Participation is not difficult. All you need

is to open an account with us. MOCB shall offer you advice on investments & strategy, provide

research and contact you regularly with trading advice.

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http://www.motilaloswal.com/pms_BullsEyefaq.htmhttp://www.motilaloswal.com/pms_BullsEyefaq.htmhttp://www.motilaloswal.com/pms_BullsEyefaq.htm


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MOSt Mutual

To enable clients diversify their investments Motilal Oswal Securities Limited has added MOSt

mutual team is in close contact with various fund houses and another product in its bouquet andwill now offer mutual funds.

MOSt mutual team is in close contact with various fund houses and interactive sessions are held

with fund managers. We will provide you regular updates on products and new schemes. Being

one of the stock brokers we keep a close watch on the markets. Based on your risk appetite,

investment horizon and your existing investments we will suggest investment in mutual fund

schemes, which are best, suited to you. The fund and scheme selection is done after an in-depth

research on parameters like risk adjusted returns, rolling returns, volatility and portfolio churn.

We advise a mature and long-term view on mutual fund investments.

MOSt Mutual doesn't stop at just that, we go a step further to ensure that you get

the right NAV, your dividends are credited on time and your account statements are regularly

received. You will also receive our monthly newsletter on Mutual Funds "MOSt Mutual".

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ABOUT MUTUAL FUND.

Introduction

A Mutual Fund is a trust that pools the savings of a number of investors who share

a common financial goal. The money thus collected is then invested in capital market instruments

such as shares, debentures and other securities. The income earned through these investments and

the capital appreciation realised are shared by its unit holders in proportion to the number of units

owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it

offers an opportunity to invest in a diversified, professionally managed basket of securities at a

relatively low cost. The flow chart below describes broadly the working of a mutual fund:

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Mutual Fund Operation Flow Chart.

ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the

organisational set up of a mutual fund:

Organisation of a Mutual Fund

ADVANTAGES OF MUTUAL FUNDS

The advantages of investing in a Mutual Fund are:

Professional Management

Diversification

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Convenient Administration

Return Potential

Low Costs

Liquidity

Transparency

Flexibility

Choice of schemes

Tax benefits

Well regulated

How you can invest in a mutual fund

There are two ways in which you can invest in a mutual fund.

1. A one-time outright payment

If you invest directly in the fund, you just hand over the cheque and youget your fund units depending on the value of the units on that particularday.

Let's say you want to invest Rs 10,000. All you have to do is approach thefund and buy units worth Rs 10,000. There will be two factors determininghow many units you get.

Entry load

This is the fee you pay on the amount you invest. Let's say the entry loadis 2%. Two percent on Rs 10,000* would Rs 200. Now, you have just Rs9,800 to invest.

NAV

The Net Asset Value is the price of a unit of a fund. Let's say that the NAVon the day you invest is Rs 30.

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So you will get 326.67 units (Rs 9800 / 30).

2.Periodic investments

This is referred to as a SIP.

That means that, every month, you commit to investing, say, Rs 1,000 inyour fund. At the end of a year, you would have invested Rs 12,000 inyour fund.

Let's say the NAV on the day you invest in the first month is Rs 20; youwill get 50 units.

The next month, the NAV is Rs 25. You will get 40 units.

The following month, the NAV is Rs 18. You will get 55.56 units.

So, after three months, you would have 145.56 units. On an average, youwould have paid around Rs 21 per unit. This is because, when the NAV is high,you get fewer units per Rs 1,000. When the NAV falls, you get more units per Rs1,000.

What's a mutual fund SIP?

SIP is an investment option that is presently available only with mutual

funds. The other investment option comparable to SIPs is the recurring

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deposit schemes from Post office and banks. Basically, under an SIP

option an investor commits making a regular (monthly) investment in a

particular mutual fund.

Why you should invest in a Systematic InvestmentPlan?

1. DisciplineThe cardinal rule of building your corpus is to stay focused, invest regularly and

maintain discipline in your investing pattern. A few hundreds set aside every month

will not pinch your monthly disposable income too much. You will also find it easier

to part with a few hundreds every month rather than investing a big lump sum in

one go.

2. Power of compoundingInvestment gurus always recommend that one must start investing early in life.

One of the main reasons for doing that is the benefit of compounding. To explain

with an example. Person A started investing Rs 10,000 per year at the age of 30.

Person B started investing the same amount every year at the age of 35. When

they attained the age of 60 respectively, person A had built a corpus of Rs 12.23

lakh while person Bs corpus was Rs 7.89 lakh. A rate of return of 8% compounded

has been assumed. So the difference of Rs 50,000 in amount invested made a

difference of more than Rs 4 lakh to their end corpus. That difference is due to the

effect of compounding. The longer the compounding period, the better for you.

Now instead of investing Rs 10,000 each year, suppose person A invested Rs

50,000 after every 5 years, starting at the age of 35. The total amount invested,

thus remains the same, which is Rs 3 lakh. However, when he is 60, his corpus will

be Rs 10.43 lakh. Again, he loses the advantage of compounding in the early

years.

3. Rupee cost averagingThis is especially true for investments in equities. When you invest the same

amount in a fund at regular intervals over time, you buy more units when the price

is lower. Thus, you would reduce your average cost per share or per unit over

time. This strategy is called 'rupee cost averaging'. With a sensible and long-term

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investment approach, rupee cost averaging can smooth out the market's ups and

downs and reduce the risks of investing in volatile markets.

Some examples:

HDFC MUTUAL FUND

SCHEME: HDFC CAPITAL BUILDER FUND

PRU ICICI MUTUAL FUND

SCHEME: PRU ICICI GROWTH FUND

RELIANCE MUTUAL FUND

SCHEME: RELIANCE GROWTH FUND

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Returns SIP Normal

5 year 41.81% 19.39%

3 year 69.28% 56.15%

1 year 86.47% 47.62%

Returns SIP Normal

5 year 27.60% 7.37%

3 year 44.89% 35.3%

1 year 54.39% 13.89%

Returns SIP Normal

5 year 52.17% 20.19%

1 year 80.34% 37.89%


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4. Convenience

This is a very convenient way of investing. You have to just submit cheques with

the completed enrollment form. The mutual fund will deposit the cheques on therequested date and credit the units to ones account and will send the confirmation

for the same.

During the last year the economic crisis is their this particular time many peopleloose their money in capital market but whichperson invest his or her money inmutual funds SIP he or she keep a great return on his or her investment

We see the return & performance of this SIPs during thelast year.

PERFORMANCE OF SIPs

June2008-May2009

Birla Sun Life 95Fund - Gr

Franklin India FlexiCap Fund - Gr

Date NAV unit Date NAV unit

10/6/2008 196.03 5.1 10/6/2008 21.2997 46.95

10/7/2008 181.92 5.5 10/7/2008 20.0461 49.89

11/8/2008 198.25 5.04 11/8/2008 21.3618 46.81

10/9/2008 193.33 5.17 10/9/2008 20.6307 48.47

10/10/2008 149.98 6.67 10/10/2008 15.8282 63.18

10/11/2008 151.57 6.6 10/11/2008 15.943 62.72

10/12/2008 149.44 6.69 10/12/2008 14.796 67.59

12/1/2009 152.69 6.55 12/1/2009 14.3075 69.89

10/2/2009 152.71 6.55 10/2/2009 14.5347 68.8

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13-04-

2009

41.1809 24.28 13-04-

2009

52.8859 18.91

11/5/2009 45.5605 21.95 11/5/2009 55.1333 18.14

Summary : Summary :Amount Invested : 12,000.00 Amount Invested : 12,000.00

Installment Amount :

1,000.00

Installment Amount :

1,000.00

No of Months : 12 No of Months : 12

Total Amount : 17,581.00 (as

on 29/05/2009)

Total Amount : 15,377.00 (as

on 29/05/2009)

Return : 104.02% Return : 60.27%

We see the return of this six mutual funds SIP the return of every SIP

is more than 50% therefore we say that this is the best instrument for the

invest in mutual fund during the this type of global economic crisis.

How to invest in SIP?

Step 1: Select a mutual fund scheme of your choice with the payment option

as SIP

Step 2: Decide the Investment periodicity (frequency of making payments).

You can choose to make your investment on a monthly or quarterly

basis.

Step 3: Select the minimum investment amount. For instance, if you choose

to invest Rs 12,000 every year with a monthly SIP Option. Therefore

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you would be investing Rs 1,000 every month in your fund. By the end

of a year, you would have invested Rs 12,000 in your fund.

Step 4: The amount gets converted into units, depending on the Net Asset

Value (NAV). NAV is the market value per unit of a fund. If the NAV in

the first month is Rs 20, you will get 50 units. Similarly in the next

month if the NAV is Rs 25, you will get 40 units. The following month if

the NAV is Rs 18, then you will get 55.56 units. So, after three

months, you would have 145.56 units. On an average, you would have

paid around Rs 21 per unit.

Step 5: The units get accumulated over a period of time. You can stay

invested till the time you wish and redeem your units when you wish

to exit from the scheme. The units are redeemed at the market value

(NAV) and you get back your money with returns.

Systematic investment plan (in details)

We have already mentioned about SIPs in brief in the previous pages but

now going into details, we will see how the power of compounding could

benefit us. In such case, every small amounts invested regularly can grow

substantially. SIP gives a clear picture of how an early and regular investment

can help the investor in wealth creation. Due to its unlimited advantages SIP

could be redefined as a methodology of fund investing regularly to benefit

regularly from the stock market volatility. In the later sections we will see

how returns generated from some of the SIPs have outperformed their

benchmark. But before moving on to that lets have a look at some of the top

performing SIPs and their return for 1 year:

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Scheme Amount NAV NAV Date

Total

AmountReliance diversified power

sector retail 1000 62.74

30/5/200

8 14524.07Reliance regular savings

equity 1000

22.20

8

30/5/200

8 13584.944principal global

opportunities fund 1000 18.86

30/5/200

8 14247.728DWS investment

opportunities fund 1000 35.31

30/5/200

8 13791.157

BOB growth fund 1000 42.14

30/5/200

8 13769.152

In the above chart, we can see how if we start investing Rs.1000 per month then

what return well get for the total investment of Rs. 12000. There is reliance

diversified power sector retail giving the maximum returns of Rs. 2524.07 per year

which comes to 21% roughly. Next we can see if anybody would have undertaken

the SIP in Principal would have got returns of app. 18%. We can see reliance regular

savings equity, DWS investment opportunities and BOB growth fund giving returns

of 13.20%, 14.92%, and 14.74% respectively which is greater than any other

monthly investment options. Thus we can easily make out how SIP is beneficial for

us. Its hassle free, it forces the investors to save and get them into the habit of

saving. Also paying a small amount of Rs. 1000 is easy and convenient for them,

thus putting no pressure on their pockets.

Now we will analyze some of the equity fund SIP s of Birla Sunlife with BSE 200

and bank fixed deposits In a tabular format as well as graphical.

Scheme Name NO. OF Original Returns at FUND

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INSTALMENTS inv BSE 200 RETURNS

Birla SL tax relief'96 144 144000 553190 1684008

Birla SL equityfund 114 114000 388701 669219Birla frontlineequity fund 66 66000 156269 181127

In the above case, we have taken three funds of Birla sunlife namely Birla sunlife

tax relief 96, Birla sunlife equity fund and Birla sunlife frontline equity fund. All

these three funds follow the same benchmark ie; BSE 200. Here, we have shown

how one would have benefitted if he would have put his money into these schemes

since their inception. And the amount even is a meager Rs. 1000 per month.

Starting from Birla frontline equity fund, we could spot that if someone would have

invested Rs. 1000 per month resulting into total investment of Rs. 66000 then it

would have amounted to rs.156269 if invested in BSE 200 whereas the fund would

have given a total return of Rs 181127. Now moving next to Birla sunlife equity

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fund, a total investment of 114000 for a total of 114 months at BSE 200 would have

given a total return of Rs. 388701 whereas the fund gave a total return of Rs.

669219, nearly double the return generated at BSE 200. And now the cream of all

the investments, Birla sunlife tax relief 96. A total investment of Rs. 144000 for a

period of 12 years at BSE 200 would have given total returns of just Rs. 553190 but

the Birla sunlife tax relief 96 gave an unbelievable total return of Rs 1684008.

Thus the above case very well explains the power of compounding and early

investment. We have seen how a meager amount of Rs. 144000 turned into Rs.

1684008. It may appear unbelievable for many but SIPs have turned this into reality

and the power of compounding is speaking loud, attracting more and more investors

to create wealth through SIPs.

OBJECTIVE OF STUDY

To find out awareness and interest about Mutual funds SIP in Mehsana

city.

Sub - Objective :-

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Which income class people prefer Mutual funds SIP?

Why they prefer Mutual funds SIP?

Which option they choose alternate of Mutual funds SIP?

How much they aware of Mutual funds SIP?

Which professional people select Mutual funds SIP?

What problems faced when choose Mutual funds SIP?

What benefit they take from Mutual funds SIP?

What factors they take mind, when invest money in Mutual

funds SIP?

What is their objective to invest their money in Mutual fund?

Are they agree with Mutual fund SIP is safe than other?

Are they agree with Mutual fund giving more return than

other securities?

Methodology

The first step of my project is to take basic training about MF.

After taken basically training, doing the survey of awareness of Mutual

fund Service is to people the questionnaire the question for the

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questionnaires are prepared after going through pamphlets, research

reports, fact sheets of mutual funds.

The next step after the questionnaires are prepared is to collect

the data. To fill the questionnaires the survey was conducted in

commercial area of Mehsana city the source for filling questionnaires

are doctors, ONGC customers, Business Persons, Government Servant

interested in equity and mutual fund or invest huge in debt or realassets business etc.

After that the questionnaire are analyzed & the people who are

interested in MF are found out.

After that the interested people are explained about the MF was

given.

The last step is to prepare the report what have done practically

& give the conclusion.

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MARKET SURVEY

During the project survey was conducted in commercial city ofNorth Gujarat at Mehsana area of Doctors, Business Persons, ONGCofficers, Government Officers etc.

INVESTORS OF MUTUAL FUND

(Total based 100)

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65%

35%

0%10%20%30%40%50%60%70%

in%

YES NO

Respondent

Investment in Mutual fund

Y

N

INTERPRETATION

49

Scale Respondent Percentage

(%)

YES 65 65%

NO 35 35%

Total 100 100%


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In My survey I found that most of people of Mehsana city

invest in Mutual fund.65 % people investing in Mutual fund. Only 35

% people don't investing in Mutual fund. This shows that the market of

Mehsana city is potential; due to this reason most of company going to

launch its branch in Mehsana city.

OPTION SELECT FOR INVESTMENT RATHER

THAN MUTUAL FUND.

T T T. T T T T T T T

50


(%)

BANK 6 17%

STOCK MARKET 7 20%

GOVT.SECURITIES 2 06%

COMMODITY 0 00%

POSTAL SCHEME 4 12%

REAL ESTATE 5 14%

PRIVATE PLAYER 0 00%

INSURANCE 6 17%

OTHER 5 14%

TOTAL 35 100%


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INTERPRETATION

Above graph shows that 20 % people select the stock market at time

of investment, Then 17 % people are selecting the bank & insurance,

Then 14 % are investing in real estate & others for investment, 12 %

people are investing in postal scheme, only 6 % people are invested in

Govt. securities, in mehsana people are not investing in commodity &

private player saving scheme.

51

17%

20%

6%

0%

12%14%

0%

17%

14%

0%

5%

10%

15%

20%

in%

Option select

Option Select for Investment

BankStock Market

Govt. Securities

Commodity

Postal Scheme

Real Estate

Private Player

Insurance

Others


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KNOWLEDGE ABOUT MUTUAL FUNDS SIP .

65%

35%

0%10%

20%

30%

40%

50%

60%

70%

in%

YES NO

Respondent

Knowledge of Mutual fund's SIP

YES

NO

52


(%)

YES 65 65%

NO 35 35%

Total 100 100%


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INTERPRETATION

Above graph shows that when ask the question to the respondent they

65% people know about systematic investment plan they are know that

this is the one instrument to investment in mutual fund their fore we say

that there is a big scope for mutual fund company for investment in

capital market in mehsana city.

FACTORS SELECTION FOR INVEST IN MUTUAL

FUNDS SIP.

53


(%)

HIGHER

RETURN

32 49%

LOW RISK 19 29%

EASY TO

INVEST

11 17%

OTHER 3 5%

TOTAL 65 100%

29%

17%

5%0%

0%

0%

n

actor Selection

c or se ec or nves n s

Higher Return

Low Risk

Easy to invest

Other


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INTERPRETATION

Most of investors like High Return from the MF and it are

49%. 29% people like MF due to low risk. 17 % people like mf in easy to

invest. Only 5% people like MF for other reasons. Shows that the high

return of MF is more liked by investors. Actually MF gives more return

than any other investment. MF gives approximately minimum 25 %

return.

PROBLEM FACE WHEN INVESTING IN

MUTUAL FUNDS SIP.

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INTERPRETATION

Most of investors have a problem face when investment time.

26% people face a problem of lack of fund knowledge of MF. Then 11%

face a lack of advertisement 1other 25% investor face a problem in

investment process. A major problem faces in 38% people. In other

problem like lock in period and entry load & exit load charges more

people this problem face.

MUTUALFUNDS SIP IS SAFE FOR INVESTMENT

THAN SECURITY MARKET.

56


(%)

STRONGLY AGREE 27 42%

AGREE 19 29%

NUTURAL 13 20%

DIS AGREE 4 6%

STRONGLY DIS

AGREE

2 3%

TOTAL 65 100%


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42%

29%

20%

6%3%

0%

10%

20%

30%

40%

50%

in%

Views of Respondent

Mutualfund's SIP is safe for investment

STRONGLY AGREE

AGREE

NUTURAL

DIS AGREE

STRONGLY DIS

AGREE

INTERPRETATION

People are fully agreed that SIP is right way for Investment in

securities market. They all are aware about SIP.They also agree that

Mutual fund gives more return. Here 42% people said that they are

strongly agree that MF is safe for investment & 29 % persons are agree

that only SIP is right way to for investment in stock market. While 6%57


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people said that they are disagree and only 3% people said that they are

strongly disagree with mutual fund is safe for investment.

Which Asset Management Company you select if you want

to invest in Mutual funds SIP?

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59


(%)

SBI 10 10%

RELIANCE 32 32%

LIC 7 7%

UTI 1 1%

TATA 3 3%

HDFC 3 3%

PRUD.ICICI 6 6%

SUNDARAM 5 5%

DSP MERRIL LYNCH 1 1%

FIDELITY 4 4%

CHOLA MUTUAL FUND 3 3%

FRANKLIN TEMPELTON 6 6%

HSBC 5 5%

KOTAK MAHINDRA 5 5%

ABN AMRO 0 0%

STANDARD CHARTERED 3 3%

OTHER 6 6%

TOTAL 100 100%


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Above graph shows that 32 % of people investor want to

invest in RELIANCE because recently open the Reliance long term

equity fund and this co. are fundamentally very strong. Then 10 % people

want to invest in SBI. 7 % people want to invest in LIC. And 6 %

investor wants to invest in PRUD.ICICI, FRENKLIN TEMPLETON &

Other in BIRLA INFRA most like. 5 % people want to invest in

SUNDARAM, HSBC and KOTAK MAHINDRA. Only 4 % wants to

FEDELITY. 3 % people want to invest in TATA, HDFC and CHOLA

MF& STANDARD CHARTERD. 1 % people want to invest in UTI, DSP

MERRIL LYNCH. In my survey no people want to invest in ABN

AMRO MF scheme because people are not aware of this AMC.

How many time periods you would like to invest in Mutual

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63

YEARS Respondent Percentage (%)

1-2 YEARS 11 11%

2-3 YEARS 36 36%

3-4 YEARS 30 30%

4-5 YEARS 14 14%

>5 YEARS 10 10%

TOTAL 100 100


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10%

36%

30%

14%10%

0%

5%

10%

15%

20%

25%

30%

35%

40%

IN%

YEARS

INVESTMENT PERIOD

1-2 YEA

2-3 YEA

3-4 YEA

4-5 YEA

>5 YEAR

INTERPRETATION

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People who are want to invest in long time they have two main

options that whether hold with one MFs SIP scheme with short term or

long term. I am found that 36 % persons are investing tw0 to three years

investment. 30% people want to investment in three or four year. 14%

want to four to five year investment. More than five year only 10 %

want to invest in Mutual fund.

What is your monthly Income?

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66

Income Level Respondent Percentage (%)

5000-10000 46 46%

10000-15000 26 26%

15000-20000 16 16%

20000-25000 5 5%

25000-30000 3 3%

30000-35000 1 1%

35000-40000 0 0%

40000-45000 1 1%

45000-50000 0 0%

> 50000 2 2%

TOTAL 100 100%


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46%

26%

16%

5%3%

1% 0% 1% 0%2%

0%

10%

20%

30%

40%

50%

in

%

Income level

INCOME LEVEL OF INVESTMENT

5000-100

10000-15

15000-20

20000-25

25000-3030000-35

35000-40

40000-45

45000-50

> 50000

INTERPRETATION

Most of investors of Mehsana city are of 5000 - 10000 Rs

Income level. Second level of income is 10000-15000. Total quantity of

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its invests is 54 % with good income. It shows that the market of Mehsana

is really potential for securities market.

HYPOTHESIS ANALYSIS

whether 60% of Customer aware of Systematic investment plansof Mutual fund.

P = 0.60

Q = 0.40

n = 100

= 0.10

P1= 65/100=0.65

H0: P=0.60 (60% of the customer are aware of Mutual funds SIP)

H1: P0.60 (60% of the customer are not aware of Mutual funds SIP)

^x = (PQ/N)

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= [(0.60) (0.40)/ 100]

= 0.04899

= 0.049

UL/LL = P * z

Lower Limit = 0.60- (0.049) (1.645) Upper Limit = 0.60 + (0.049) (1.645)= -0.5194 = 0.6806

45.0% Z Corresponding value = 1.645

Here, the sample mean P1=0.65 which lie on Acceptance region so weaccept the null hypothesis and reject the alternatative hypothesis. So it isproved that 60% of the customer are aware of Mutual funds SIP.

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The technology used by Motilal Oswal is very advanced.

Weakness :-

There is over staffing is company. So many time some of

employee has no work and this effects on their moral for work and

wastage of time also.

The time management of company is not proper.

Lack of proper co-ordination between two departments of the

company.

Opportunity :-

The Security market of Mehsana is very potential.

The company has huge database of HNI customers, so

company can take benefit for its services special for MF.

In Mehsana city there is only one branch of Motilal Oswal. Dueto this reason the investors of the other side of Mehsana can not

take the more benefit of it. So company can make its other

branch at the other part of Mehsana also.

The growth of clients in company is constant.

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The company should take employee specialist for MF.

The company should make contact for MF services with all

customers.

The company can create more awareness about MF through

seminars and personal relationship.

Make literature in Gujarati also. Most of people dont know

good English

Company should do more advertisement of MF.

Follow the customers on time.

The solution of customers complain should be done on time.

BIBLIOGRAPHY

WEB SITES

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www.motilaloswalsecurities.com

www.amfi.com

www.njindiainvestment.com

www.nseindia.com

www.bseindia.com

www.google.com

www.the-finapolis.com

www.mutualfundsindia.com

www.valueresearchonline.com

www.moneycontrol.com

www.morningstar.com

www.yahoofinance.com

www.theeconomictimes.com

www.rediffmoney.com

www.investopedia.com

QUESTIONNAIRE:

Dear Respondents,

75
http://www.motilaloswalsecurities.com/http://www.amfi.com/http://www.njindiainvestment.com/http://www.nseindia.com/http://www.bseindia.com/http://www.google.com/http://www.the-finapolis.com/http://www.mutualfundsindia.com/http://www.valueresearchonline.com/http://www.moneycontrol.com/http://www.morningstar.com/http://www.yahoofinance.com/http://www.theeconomictimes.com/http://www.rediffmoney.com/http://www.investopedia.com/http://www.motilaloswalsecurities.com/http://www.amfi.com/http://www.njindiainvestment.com/http://www.nseindia.com/http://www.bseindia.com/http://www.google.com/http://www.the-finapolis.com/http://www.mutualfundsindia.com/http://www.valueresearchonline.com/http://www.moneycontrol.com/http://www.morningstar.com/http://www.yahoofinance.com/http://www.theeconomictimes.com/http://www.rediffmoney.com/http://www.investopedia.com/


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I am the student of S.K. SCHOOL OF

BUSINESS MANAGEMENT PATAN like to have a survey

based on the topic Awareness of Mutual funds SIP in

Mehsana city is included in Summer Internship

Programme Training Project which is the part of our study

.This information provided by you is only for educational purpose

and will be kept secret.

1. Do you invest in Mutual Fund?

Yes [ ] No [ ]

If yes then go to question no.4, No. continue

2. Why you are not invest in Mutual Fund?

3. Which option you select for investment rather than Mutual Fund?

[ ] Bank [ ] Stock market

[ ] Govt. Securities [ ] Commodity

[ ] Postal Schemes [ ] Real Estate [ ]

Private Player (Saving Schemes) [ ] Insurance

If other then specify

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Lack of Advertisement [ ]

Investment Process [ ]

Others [ ]

If other then specify

8.Are you agree with mutual funds SIP is safe for investment than security

market?

Agree [ ] [ ] [ ] [ ] [ ] Disagree

9. Are you agree with mutual funds SIP gives more return then other?

Agree [ ] [ ] [ ] [ ] [ ] Disagree

10. Which AMC you select if you want to invest in Mutual fund?

SBI DSP MERRILL LYNCH

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15000 20000 [ ] 20000 25000 [ ]

25000 30000 [ ] 30000 35000 [ ]

35000 40000 [ ] 40000 45000 [ ]

45000 50000 [ ] More then 50000 [ ]

14. PERSONAL INFORMATION:-

Name :- __________________________________________________

Address :- _________________________________________________

Phone/Mobile:- _____________________________________________

Occupation:-

Businessman [ ] Student [ ]

Job/ Service [ ] Dealing in Shares only [ ]

Other then please specify ______________________

Documents

Report on Sip