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Project Report
On
Systematic Investments Plan
Submitted in Partial Fulfilment of award of Post-Graduation diploma in General
Management
Submitted by
Pankaj Pawar
DPGD/AP13/0777
Under the Guidances of
Prin.L.N. Welingkar Institute of Managements Development & Research
Acknowledgement
With Immense pleasure I would like to present this report on
Systematic Investment Plan
Pankaj Pawar
Declaration
Thereby declare the project entitled Systematic Investment Plan submitted in
partial fulfilment of post graduate diploma of Welingkar Institute of
Management Development & Research is based on primary & secondary
data found by me in various books, magazine & website which been
collected by me under the guidance of Ms. Rakhi Kubal.
Date:
Pankaj Pawar
DPGD\AP13\0777
Name of project
guidance
Ms.Rakhi Kubal
Signature:
DATE:
Introduction:
A mutual fund is a trust that pools the savings of a number of investors who
share common financial goal .the money thus collected is then invested in
the capital market such as shares, debentures and other securities. The
income earned through these investments and the capital appreciation
realized is shared by its unit holders in proportion to the number of units
owned by them.
The plan of investing the same amount of money every month over an
extended period of time regardless of whether the market is up or down is
known as Systematic Investment Plan (SIP).
Systematic Investment Plan (SIP) is a financial planning tool that helps
you to create wealth, by investing small sums of money every month, over a
period of time. A Systematic Investment Plan (SIP) is a vehicle offered
by mutual funds to help investors invest regularly in a disciplined manner.
SIP is a good tool that retail investors can utilizes for optimize their
investments strategy. SIP is nothing but simple method of investing a fixed
sum of money in specific investment scheme, on a regular basis for predetermined period of time. A recurring deposit in post office or in bank is also
an SIP. Systematic Investment plan were already famous & proven in Mutual
funds context but now SIP has already approached in Equity stocks.
Investing in Mutual funds is not everybody cup of Tea, Being depending on
the factor of fluctuating stock market & risking youre hard earned money for
a measly profit that does not really help.
A Systematic Investment Plan or SIP is a smart and hassle free mode for
investing money in mutual funds. SIP allows you to invest a certain predetermined amount at a regular interval (weekly, monthly, quarterly, etc.). A
SIP is a planned approach towards investments and helps you inculcate the
habit of saving and building wealth for the future\
Considered to be safest way to invest into Equity Markets by going the SIP
route, Investor is not trying to capture the Highs & Lows of the market, but
trying to average the cost by investing at regular interval.
Concept is that when markets fall investor gets more units, likewise investor
acquires lesser units when the market goes up. This means that investor
buys that investor buys less when the price is high & investor buys more
when the price is low. Hence the average cost per unit fall down over the
period of time.
Diversification.
Professional Management.
Regulatory oversight.
Liquidity.
Low cost.
Conveniences.
Transparency.
Flexibility.
of declining. Rather than timing the market, investing every month will
ensure that one is invested at the high and the low, and make the best out of
an opportunity that could be tough to predict in advance.
An investor can invest a pre-determined fixed amount in a scheme every
month or quarterly, depending on his convenience through post-dated
cheques or through ECS (auto-debit) facility. Investors need to fill up an
Application form and SIP mandate form on which they need to indicate their
choice for the SIP date (on which the amount will be invested). Subsequent
SIPs will be auto-debited through a standing instruction given or post-dated
cheques. The forms and cheques can be submitted to the office of the Mutual
Fund / Investor Service Centre or nearest service Centre of the Registrar &
Transfer Agent. The amount is invested at the closing Net Asset Value (NAV)
of the date of realization of the cheques.
A fund typically buys a diversified portfolio of stock, bonds & 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 & 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 & income for the funds investors. A mutual
funds portfolio is structured and maintained to match the investment
objectives stated in its prospectus.
Fund Sponsor: The sponsor is the company which sets up the mutual
fund. It means anybody corporate acting alone or in combination with
another body corporate established a mutual fund after initiating and
completing the formalities.
Other: Apart from these, the MF has some other fund constituents,
such as custodians and depositories, banks, transfer agents and
distributors. The custodian is appointed for safe keeping of securities
and participating in the clearing system through approved depository.
The bankers handle the financial dealings of the fund. Transfer agents
are responsible for issue &redemption of units of MF.
Risk Return Matrix: The risk return trade-off indicates that if investor is
willing to take higher risk then correspondingly he can expect higher
returns and vice versa if he pertains to lower risk instruments, which
would be satisfied by lower returns. For example, if an investor opts for
bank FD, which provide moderate return with minimal risk. But as he
moves ahead to invest in capital protected funds and the profit-bonds
that give out more return which is slightly higher as compared to the
bank deposits but the risk involved also increases. Thus investors
choose mutual funds as their primary means of investing, as Mutual
funds provide professional management, diversification, convenience
and liquidity. That doesnt mean mutual fund investments are risk free.
This is because the money that is pooled in are not invested only in
debts funds which are less riskier but are also invested in the stock
markets which involves a higher risk but can expect higher returns.
Open-ended funds: Investors can buy and sell the units from the
fund, at any point of time.
Close-ended funds: These funds raise money from investors only
once. Therefore, after the offer period, fresh investments cannot
be made into the fund. If the fund is listed on a stocks exchange
the units can be traded like stocks (E.g., Morgan Stanley Growth
It can be further classified as:o Index funds- In this case a key stock market index, like BSE
Sensex or Nifty is tracked. Their portfolio mirrors the benchmark
index both in terms of composition & individual stock weight
ages.
o Equity diversified funds- 100% of the capital is invested in
equities spreading across different sectors and stocks.
o Dividend yield funds- it is similar to the equity diversified funds
except that they invest in companies offering high dividend
yields.
o Thematic funds- Invest 100% of the assets in sectors which are
related through some theme .e.g. -An infrastructure fund invests
in power, construction, cements sectors etc.
o
mutual funds vehicle for investors who prefer spreading their risk
across various instruments. Following are balanced funds classes.
Working of SIP:
Let us take an example to understand how an SIP works. Suppose X decides to
invest in a mutual funs through SIP. He commits making an monthly investments of
Rs.1000 for an period of twelve month in a fund names ABC. The payment can be
done by issuing twelve post dated cheques of Rs.1000 each or through ECS facility
Date
01-Jan
01Feb
01Mar
01-Apr
01May
01-Jun
01-Jul
01Aug
01Sep
01Oct
01Nov
01Dec
Monthly Investment
(a)
NAV (b)
Number of units
(a)/(b)
Rs.1000
46.29
21.603
Rs.1000
48.08
20.799
Rs.1000
52.78
18.947
Rs.1000
56.36
17.743
Rs.1000
58.42
17.117
Rs.1000
Rs.1000
56.42
62.14
17.724
16.093
Rs.1000
67.58
14.797
Rs.1000
71.7
13.947
Rs.1000
76.19
13.125
Rs.1000
83.97
11.909
Rs.1000
89.92
11.121
Brief Summary:
Monthly Investment: Rs.1000
Period of investment: 12 months
Features of SIP
One can choose to invest in Equity or Debt Mutual funds while doing a SIP.
SIP is the best way to create long-term wealth with small investments.
Some of the main features of SIP are-
Amount - One can choose amount as low as Rs 100 and can have any
amount beyond that.
Flexibility - One can close SIP any time as per convenience. For this
simple communication has to be made to Mutual Fund Company.
Maximum duration of SIP - SIP can be of any duration. One can also
choose perpetual SIP, where one can invest on a periodic basis till
communication to stop investment by the investor to mutual fund
house.
Benefits of SIP:
Power of Compounding:
First Principle: There is no such thing as simple interest
Would you care too much whether your rate of return is 12% or 14%? The
fact is that if you did, it would make a big difference to your wealth as time
progresses. The benefit from compounding arises primarily from the fact that
income keeps growing the principal to generate higher absolute returns each
year. Higher rates of return or longer investment time periods increase the
principal amount in geometric proportions.
The table below shows you how a single investment of Rs100 will grow at
various rates of return. 5% is what you might get by leaving your money in a
savings bank account, 10% is typically the rate of return you could expect
from a one-year bank fixed deposit, 15% is what you could expect by
investing in relatively riskier company fixed deposits and 20% or more is
what you might get if you prudently invest in equity shares.
The Impact of Power of Compounding
Use the table below, to see the impact of the power of compounding with
different rates of return and different time periods.
At end of
Year
1
5%
10%
15%
20%
Rs10
Rs110
Rs115
Rs120
5
5
Rs12
8
Rs161
Rs201
Rs249
10
Rs16
3
Rs259
Rs405
Rs619
15
Rs20
8
Rs418
Rs814
Rs154
1
25
By now, you've probably figured out the obvious conclusion from the above
table.
It is literally 'a waste of time and money' to let your wealth lie in low-income
investments for prolonged periods of time. For shorter periods of time,
although different rates of return do result in different wealth levels, the
impact is not earth shattering. However, the longer the period for which the
investment is made (say over 10 years in our above example) the difference
just cannot be ignored!
And yes, the next time you plan to borrow money, remember that
compounding is busy working against you. Make sure you are conscious
about the cost of your borrowing. Every time your credit card payment is
running overdue, you are not paying just 2% per month in interest cost, you
are actually paying 26.8% per annum!!!
We continue our discussion of the impact of the power of compounding on
account of inflation and taxes and hence on your financial wealth in our
article Running To Stand Still.
In Benefits of Starting To Invest Early we discuss how, because of the Power
of Compounding, it makes a lot of sense for you to start investing right now.
Disadvantages of SIP:
Investment Strategies:
i.
ii.
iii.
Systematic Investment Plan: under this a fixed sum is invested each month
on a fixed date of a month. Payment is made through postdated cheques or
direct debit facilities. The investor gets fewer units when the NAV is high and
more units when the NAV is low. This is called as the benefit of Rupee Cost
Averaging (RCA)
Systematic Transfer Plan: under this an investor invest in debt oriented fund
& give instructions to transfer a fixed sum, at a fixed interval, to an equity
scheme of the same mutual fund.
Systematic Withdrawal Plan: if someone wishes to withdraw from a mutual
fund then he can withdraw a fixed amount each month.
Options Available To Investors: Each plan of every mutual fund has three options
Growth, Dividend and dividend reinvestment.
Separate NAV are calculated for each scheme.
a. Dividend Option Under the dividend plan dividend are usually declared
on quarterly or annual basis. Mutual fund reserves the right to change
the frequency of dividend declared.
b. Dividend reinvestment option: Instead of remittances of units through
payouts, Units holder may choose to invest the entire dividend in
additional units of the scheme at NAV related prices of the next
working day after the record date. No sales or entry load is levied on
dividend reinvest.
c. Growth Option: Under this, plan returns accrue to the investor in the
form of capital appreciation as reflected in the NAV. The scheme will
not declare the dividend under the Growth plan & investors who opt for
this plan will not receive any income from the scheme. Instead of
income earned on their units will remain invested within the scheme
and will be reflected in the NAV.
Banks
Mutual Funds
Returns
Administrative Expe.
Risk
Investment Options
Low
High
Low
Less
Network
High Penetration
Liquidity
Quality of assets
At a cost
Not transparent
Minimum balance
between
10th & 30th of every
month
Maximum Rs.01 Lacs
on
deposits
High
Low
Moderate
More
Low but
improve
Better
Transparent
Interest calculation
Guarantee
Everyday
None
If the security does not get traded in the market, then the liquidity remains
on paper. In this respect, an open-end scheme offering continuous sale / repurchase option is superior.
The value that the investor would realize in an early exit is subject to market
risk. The investor could have a capital gain or a capital loss. This aspect is
similar to a MF scheme. It is possible for a professional investor to earn
attractive returns by directly investing in the debt market, and actively
managing the positions. Given the market realities in India, it is difficult for
most investors to actively manage their debt portfolio. Further, at times, it is
difficult to execute trades in the debt market even when the transaction size
is as high as Rs 1crore. In this respect, investment in a debt scheme would be
beneficial. Debt securities could be backed by a hypothecation or mortgage
of identified fixed and / or current assets (secured bonds / debentures). In
such a case, if there is a default, the identified assets become available for
meeting redemption requirements. An unsecure dbond /debenture is for all
practical purposes like a fixed deposit, as far as access to assets is
concerned. The investments of a mutual fund scheme are held by a custodian
for the benefit of investors in the scheme. Thus, the securities that relate to a
scheme are ring-fenced for the benefit of its investors.
The opposite of the diversification issue: If you own just one stock and it
doubles, you are up 100%. If a mutual fund owns 50 stocks and one doubles,
it is up 2%. On the other hand, if you own just one stock and it drops in half,
you are down 50% but the mutual fund is down1%. Cuts both ways.
If you hold your stocks several years, you arent nicked a 1% or so
management fee every year (although some brokerage firms charge if there
arent enough trades).
You can take your profits when you want to and wont inadvertently buy a tax
liability.(This refers to the common practice among funds of distributing
capital gains around November or December of each year. See the article
elsewhere in this FAQ for more details.)
You can do a covered write option strategy. (See the article on options on
stocks for more details.)
You can structure your portfolio differently from any existing mutual fund
portfolio.(Although with the current universe of funds Im not certain what
could possibly be missing out there!)
You can buy smaller cap stocks which arent suitable for mutual funds to
invest in.
You have a potential profit opportunity by shorting stocks. (You cannot, in
general, short mutual funds.)
The argument is offered that the funds have a "herd" mentality and they all
end up owning the same stocks. You may be able to pick stocks better.
Here is an illustration using hypothetical figures indicating how the SIP can work for
investors:
Suppose an investor would like to invest Rs.4,000 under the Systematic Investment
Plan on quarterly basis.
28. Period Invested Premium NAV of Maxi Units allocated miser Fund (Rs (Rs) per
unit)7th April10 4000 11.34 352.737th May10 4000 11.01 363.317th June10
4000 12.05 331.957th July10 4000 13.13 304.657th 4000 13.67
292.61August107th Sept10 4000 15.81 253.007th Oct10 4000 16.78 238.387th
Nov10 4000 18.28 218.827th Dec10 4000 18.71 213.797th Jan11 4000 21.48
186.227th Feb11 4000 21.49 186.137th 4000 21.98 181.98March11Total 48000
Actual average NAV=
(11.34+11.01+12.05+13.13+13.67+15.81+16.78+18.28+18.71+21.48+21.49+21
. 98) / 12 = 16.29 NAV for Mr. X (4,000 * 12) / (352.73+ 363.31 + 331.95 + 304.65
+ 292.61 + 253.00+ 238.38 + 218.82 + 213.79 + 186.22 + 186.13+ 183.74) =
Rs.15.36
29. Based on the historical analysis for BSE Sensex for last 10 to 12 years (i.e.1-Jan1998to 1-Jan- have 2010) we find that if an individual had invested Rs. 1000 ever
year (SIP)he would by earned a return of 9% vis--vis 5% earned an individual who
had investedRs. 1000 at the beginning of 10 year period. Similarly over a five-year
period (1-Jan-1994 to 1-Jan-1999) SIP investment return would have been 16.52%
compared to14.09% for a one-time investment at the beginning of the period.Using
the SIP strategy the investor can reduce his average cost per unit. The investorgets
the advantage of getting more units when the market is turned down.Benefits of SIP
1. SIP can be started with a minimum investment of Rs. 500/- per month or Rs.
1000/- per month. 2. It is good and effective way of creating wealth for long term. 3.
ECS facility is available in case of Investment through SIP. 4. A small withdrawal
from the account doesnt affect the bank balance of an individual as compared to a
hefty withdrawal. 5. It can be for a year, two years, three years etc. if a person at
any point of time couldnt be able to continue its SIP, he may give instructions at
least 25 days before to the fund house. His SIP be discontinued. 6. All type of funds
except Liquid funds, cash funds and other funds who invest in very short fixed
return investments offers the facility of SIP. 7. Capital gains, if applicable, are taxed
on a first-in first-out basis. 8. As the investment made through SIP are not at one
time. Some units bought at high price and some at low price, so chances of making
gain through SIP is higher than the one time investment. In short, SIP is a simple
and effective way to create wealth but to create such wealth, one should think
about the investment in SIP for a period of at least for time frame of three years
because it pays to invest in a longer run..
30. SBI and SIP:The relationship between SBI and SIP is quite long and strong. SBI
has introducedseveral SIPs because it is definitely one of the greatest and the
smartest way ofinvestment in the present scenario. Not only is it less risky but at
the same time it alsogenerates less return. Right from Rs 50 to Rs1500, different
amounts can be investedin the SIP monthly scheme of SBI
31. Chapter 3Research Methodology
32. Research Methodology Title of the studySystematic Investment Plan(The
Better Way to Invest In Mutual Funds) Duration of the ProjectThe duration of the
project is 45 days Objective of the study The purpose of choosing the project is to
know: Investors option for entry into mutual fund Lump sum SIP Comparative
analysis between Lump Sum and SIP Investors Delight when investment is through
SIP Procedure for investment in SIP Research TypeConclusive and explorative
approach has been adopted in the study. As here thetopic of research problem has
been explored so that hidden facts can come into thelight and then the maximum
allocation criteria in SIP are Rs. 1000-3000 i.e. the finalconclusion is given 45%
SAMPLE SIZEA sample size of 50 investors was chosen to meet the earlier
mentioned objectives. Theselection of sample was based on the following criteria: People belonging to different state of society.
33. Servicemen working in government organization & private organization.
Professionals who includes doctors, lawyers, teachers etc Research DesignThis
research is Explorative and conclusive in nature because it aims to collect thedata
about the behavior of investors in which way they invest in Mutual Funds.
Theresearch approach used is survey based and the analysis is largely based on
theprimary data. Research InstrumentStructured questionnaire: open- ended and
close- ended. Contact MethodPersonal interview Research ApproachAny
methodology includes the overall research design, the sampling procedure anddata
collection method. The methodology adopted by me for purpose of finding
theinvestment behavior of investors was DIRECT SURVEY METHOD
POPULATIONUdaipur City Study scope of the
34. Udaipur onlyThis project will help existing/prospective investor to understand
what the various modeof investment in Mutual Fund are and why Systematic
Investment Plan gives betterreturns than Lump sum. So that investors can do better
use of their hard earned moneyto earn more profit. Types of data1. Primary Data2.
Secondary DataPrimary Data is that data which is collected by the researcher as per
his/her needsSecondary Data is that data which is collected through references as
websites,journals, books, magazines , etc. LIMITATIONS TO THE SURVEY
35. Though research based decision-making is now considered but still there is a
gapbetween the understanding of researcher and users.Research is there to help in
decision-making, not a substitute of decision-making. Someof the following
limitations have restricts the scope of survey to some extent : Some respondents
gave vague information and were not serious while responding. Some respondents
were hesitant to reveal information about their finances because of income tax
queries. It was difficult to find whether respondents actually participate in their
financial planning. Research can provide number of facts but it does not provide
actionable results. It cannot provide answer to any problem but can only provide a
set of guidelines. Management rely more on the intuitions and judgments rather
than research. Area of research was restricted to some location of the city and
state.
36. Chapter 4Facts and Finding
37. FindingThe analysis is done based on the structured questions and we got
following points: - 55% investor invests in SIP mode. - 84% got more profit in SIP The maximum duration of investment in SIP is 3 years i.e. 34%. - The maximum
allocation criteria in SIP are 1000-3000 i.e. 45%
38. Chapter 5Analysis and Interpretation
39. Q 1: In which Financial Instrument do you invest into?Ans: Financial Instruments
Investment in % Mutual 76 Bond 15 Online Trading 07 Derivatives 02Interpretation:
From above pie chart, I have analyzed that 76% of investors invest inthe analysis is
done on the basis of the response of respondents, which is collectedthrough the
questions present in questionnaire.
40. Q 2: By structure in which type of schemes have you invested?Ans : Types of
schemes on the basis of Investment in % structure Open ended funds 66 Close
ended funds 22 Intervals funds 12Interpretation: The above pie chart depicts that
66% investors invest in Open-endedfunds, 22% in Close-ended funds and 12% in
Interval funds.
41. Q. 3: By investment objective In which type of schemes have you invested?Ans:
Types of Investment on the basis of Investment in % objective Growth Schemes 55
Income Schemes 13 Balances Schemes 32Interpretation: From the above pie chart, I
conclude that there are 55 % investorswho invest in Growth Schemes, 13% investor
invest in Income Schemes, and 32%investors invest in Balanced Funds.
42. Q.4. In which type of fund you want to invest?Ans : TYPES OF FUNDS
INVESTMENT IN % Index Fund 41 Tax Saver Fund 15 Sectoral fund 44Interpretation:
The above chart depicts that the maximum numbers of investor.i.e.41%investors
invest in Sectoral Funds , 44% in Index Funds and 15% in Tax Saver Funds.
43. Q.5 Do you repeat your investment after initial investment?Ans : Repetition of
Investors in % investment Yes 68 No 32Interpretation: The above pie chart depicts
that 68% of investors invest again after theinitial investment
44. Q.6 What percentage of your earnings do you invest in Mutual Funds? Ans : % of
earnings Investors in % Upto 10% 43 Upto 25% 32 Upto 50% 15 Above 50%
10Interpretation: The above chart depicts that 43% investor invest that up to 10%
of theirearning in Mutual Fund.
45. Q.7 :How many investors invested in SIP , Lump sum or both?Ans : Type of
investment Investment in % SIP 55 Lump sum 10 Both 35Interpretation: From above
chart I have analyzed that 55% investors have investedSIP, 10% in lump sum and
35% in both the category.
46. Q.8 what is an allocation criteria of an investor in SIP? Ans : Allocation criteria (in
Rs) Investment in % Less than 1000 9 1000-3000 45 3000-5000 36 More than 5000
10 50 Allocation criteria (in Rs) 45 40 35 30 25 20 investment in % 15 10 5 0 less
than 1000 1000-3000 3000-5000 more than 5000Interpretation: From above chart b
I have analyzed that the allocation criteria ofinvestment is 45% in the range Rs1000
to Rs 3000.
47. Q.9 What is the time duration of investment?Ans : Time duration Investment in
% Less than or equal to 5 years 25 Less than or equal to 4 years 8 Less than or
equal to 3 years 34 Less than or equal to 2 years 25 Less than or equal to 1 year
8Interpretation: The above bar chart depicts that most of the investors (i.e.
33.33%)invest in less than 3 years.
48. Q.10 which has given more profit to investors?Ans : Investment in Profit in %
Lump sum 84 SIP 16Interpretation: The above Pie chart depicts that 84% of
investors have got more profitin Systematic Investment Plan.
49. Chapter 5SWOT Analysis
50. SWOT ANALYSIS STRENGTH WEAKNESS No access to rural market. No direct link
between investors A well known name in and AMC. financial companies. Wide
experience in this field. Dedicated employees. Tie up with many financial
institutions. Ever growing distribution network. Good infrastructure. Experienced
fund manager. Easy access to branch. Opportunities THREATS Positive outlook of
People Highly volatile and uncertain toward mutual funds. market. Untapped
market. Large number of financial giants present in this market
51. Chapter 7Conclusion
52. Conclusion:Findings:Our findings during the training with State Bank of India
(MF), Udaipur was good on thefollowing grounds:- State Bank is a top ranked
company listed with NSDL and CDSL; provide trading through both NSE and BSE. Sis
providing software to their prospective sub brokers and revisers. Cheque updating in
15 minutes and the credit limit up to 10 times.There are some more points :- Mutual
fund advisors give emphasis on mutual funds than other investment options. The
awareness level of investor is low as advisors are interested in dealing in mutual
funds. Very less advisors are knowing about services provided by State Bank of
India (Mutual Fund) Mutual funds have given a new direction to the flow of personal
saving and enable small and medium investors in remote rural and semi urban
areas to reap the benefits of the stock market investments. Indian mutual funds are
thus playing a very important role in allocation of scarce resources in the emerging
economy.
53. Chapter 8Suggestion
54. RECOMMENDATION AND SUGGESTIONSThough the State Bank of India have a
very good ascribed plan with exclusive band ofopportunities but as nothing is free
from the hurdles therefore there are fewshortcomings which I felt makes SBI fail to
achieve its target : There is high potential market for mutual fund advisors in
Udaipur city but this market needs to be explored as investors are still hesitated to
invest their money in mutual fund. In Udaipur investors have inadequate knowledge
about mutual fund, so proper marketing of various schemes is required. Company
should arrange more and more seminars on mutual funds. Awareness of mutual
fund services among the investors are very low so Asset Management Company
needs proper marketing of their all services by advertising , distribution of pamphlet
, arranging seminars etc. Most advisors are not interested in dealing of mutual funds
because they get very low commission. Company should also provide knowledge
about the growth rate and expected growth rate of mutual fund industry in India.
Most people are aware of Life Insurance , NSC and PPF for tax saving so company
should market various tax saving scheme of mutual fund and their benefits.
55. Chapter 9Annexure
56. QUESTIONNAIRE(Hello, I am Chanchal Salvi. I need your spare time to fill up the
questionnaire, as this isthe part of my Summer Internship Training under MBA
curriculum)NAME: ______________________________________ __________________AGE018_____ 18-36_____ 36-54_____ 54-72______ 72 ABOVE______GENDER: Male
FemaleOCCUPATION: Businessman [ ] Pvt. Employee [ ] Govt. Employee [ ]
Professional [ ] Student [ ] other (specify):________CONTACT NO: