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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 prajapati
Roll no. – 14 mba.ii

report SUBMITTED to;

Mr.kamlesh K PATEL

Summer placement coordinator


S.K.SCHOOL OF BUSINESS MANAGEMENT
PATAN
S.K.School of Business Management,Patan

S.K.SCHOOL
SCHOOL OF BUSINESS MANAGEMENT,
HEMCHANDRACHARYA NORTH GUJARAT
UNIVERSITY,
PATAN

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S.K.School of Business Management,Patan

CONTENTS:

serial Page

no Topic 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 31-34
9 What’s mutual fund’s SIP? 35-37
10 Performance of SIP’s 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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S.K.School of Business Management,Patan

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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S.K.School of Business Management,Patan

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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S.K.School of Business Management,Patan

Acknowledgement

 “Chain of mistakes leads towards failures, chain of failures leads to experience and chain of
experience leads to success.” That’s what a life’s 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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S.K.School of Business Management,Patan

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
 Company’s 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 AMC’s 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 AMC’s Mutual fund provided by MOSL & their schemes &
features.

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S.K.School of Business Management,Patan

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, IPO’s
and depository services.

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


broker’s 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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S.K.School of Business Management,Patan

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 business
transacted 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 the
Starmine 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 been


appointed 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 company’s 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. India’s
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 Sen’s 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 Warren


Buffett’s 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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• First Stock Broking house to brand its services as a research and advice based
broker.

• “Wealth Creation” Campaign started.

• www.MotilalOswal.com launched. First broking house in India to go on the web.

• Becomes a Depository Participant of National Securities Depository Limited


(NSDL).

• Inducts Mr. Ivan Mathias, former country head of Watson Wyatt Worldwide, on its
Board to Directors to shape HR initiatives.

1998 :-

• Mr. Motilal Oswal joins the Governing Board of The Stock Exchange, Mumbai.

1996 :-

• Wealth Creation Study started. First of its kind study initiated to identify biggest
and fastest wealth creating companies in Indian Stock markets.

1995 :-

• “Motilal Oswal” gets incorporated as Motilal Oswal Securities Ltd.

1994 :-

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• MOSt acquires NSE Membership and plans for major expansion of its retail
network.

• Inquire (Indian Equity Research) is formally created at a 2500 sq. ft office in South
Mumbai with bigger and better quality infrastructure than the corporate office. Since
then nearly 20% of revenue is allocated to research. First Domestic Stock broking
house to have such a strong Research focus.

• ”Motilal Oswal” enters Institutional Broking business.

1990 :-

• After just three years in the business, ”Motilal Oswal” is formed through
acquisition of membership on The Bombay Stock Exchange (BSE). Three more
memberships taken in later years.

• People behind the organization

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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
Televenture’s 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 click away.

A multitude of resources like live quotes, charts, research, advice and online
assistance 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, our Bull’s 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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• 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 and
will 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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S.K.School of Business Management,Patan

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 you
get your fund units depending on the value of the units on that particular
day.

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

Entry load

This is the fee you pay on the amount you invest. Let's say the entry load
is 2%. Two percent on Rs 10,000* would Rs 200. Now, you have just Rs
9,800 to invest.

NAV

The Net Asset Value is the price of a unit of a fund. Let's say that the NAV
on 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 in
your fund. At the end of a year, you would have invested Rs 12,000 in
your fund.

Let's say the NAV on the day you invest in the first month is Rs 20; you
will 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, you
would 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 Rs
1,000.

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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S.K.School of Business Management,Patan

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 Investment


Plan?

1. Discipline
The 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 compounding
Investment 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 B’s 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 averaging


This 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

35
S.K.School of Business Management,Patan

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

Returns SIP Normal

5 year 41.81% 19.39%

3 year 69.28% 56.15%

1 year 86.47% 47.62%

PRU ICICI MUTUAL FUND

SCHEME: PRU ICICI GROWTH FUND

Returns SIP Normal

5 year 27.60% 7.37%

3 year 44.89% 35.3%

1 year 54.39% 13.89%

RELIANCE MUTUAL FUND

SCHEME: RELIANCE GROWTH FUND


Returns SIP Normal

5 year 52.17% 20.19%

1 year 80.34% 37.89%

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S.K.School of Business Management,Patan

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 the
requested date and credit the units to one’s account and will send the confirmation
for the same.

During the last year the economic crisis is their this particular time many people
loose their money in capital market but which person invest his or her money in
mutual fund’s SIP he or she keep a great return on his or her investment

We see the return & performance of this SIP’s during the


last year.

PERFORMANCE OF SIP’s
June2008-May2009

Birla Sun Life 95 Franklin India Flexi


Fund - Gr Cap 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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S.K.School of Business Management,Patan

12/3/2009 140.73 7.11 12/3/2009 12.5864 79.45

13-04- 170.73 5.86 13-04- 16.3478 61.17


2009 2009

11/5/2009 181.56 5.51 11/5/2009 17.6947 56.51

Summary : Summary :

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

Installment Amount : Installment Amount :


1,000.00 1,000.00

No of Months : 12 No of Months : 12

Total Amount : 15,958.00 Total Amount : 16,037.00 (as


(as on 29/05/2009) on 29/05/2009)

Return : 71.5% Return : 73.05%

HDFC Growth Fund Gr HDFC Top 200 - Gr.

Date NAV unit Date NAV unit

10/6/2008 58.851 16.99 10/6/2008 127.015 7.87

10/7/2008 54.736 18.27 10/7/2008 119.266 8.38

11/8/2008 60.993 16.4 11/8/2008 134.292 7.45

10/9/2008 59.749 16.74 10/9/2008 131.072 7.63

10/10/2008 46.063 21.71 10/10/2008 98.228 10.18

10/11/2008 45.635 21.91 10/11/2008 98.71 10.13

10/12/2008 41.544 24.07 10/12/2008 90.241 11.08

12/1/2009 39.4 25.38 12/1/2009 88.378 11.32

10/2/2009 39.361 25.41 10/2/2009 90.734 11.02

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S.K.School of Business Management,Patan

12/3/2009 34.273 29.18 12/3/2009 80.226 12.46

13-04- 42.417 23.58 13-04- 102.33 9.77


2009 2009

11/5/2009 45.65 21.91 11/5/2009 110.933 9.01

Summary : Summary :

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

Installment Amount : Installment Amount :


1,000.00 1,000.00

No of Months : 12 No of Months : 12

Total Amount : 14,903.00 Total Amount : 16,207.00 (as


(as on 29/05/2009) on 29/05/2009)

Return : 51.29% Return : 76.38%

Reliance Banking Fund Tata Pure Equity Fund


- Gr - Gr

Date NAV unit Date NAV unit

10/6/2008 47.46 21.07 10/6/2008 71.1592 14.05

10/7/2008 44.69 22.38 10/7/2008 66.616 15.01

11/8/2008 54.0528 18.5 11/8/2008 71.568 13.97

10/9/2008 51.9421 19.25 10/9/2008 68.4774 14.6

10/10/2008 41.0528 24.36 10/10/2008 50.929 19.64

10/11/2008 42.5711 23.49 10/11/2008 51.6928 19.35

10/12/2008 38.1211 26.23 10/12/2008 48.8668 20.46

12/1/2009 39.5246 25.3 12/1/2009 48.261 20.72

10/2/2009 38.0972 26.25 10/2/2009 48.8393 20.48

12/3/2009 30.7379 32.53 12/3/2009 44.2758 22.59

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S.K.School of Business Management,Patan

13-04- 41.1809 24.28 13-04- 52.8859 18.91


2009 2009

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 : Installment Amount :


1,000.00 1,000.00

No of Months : 12 No of Months : 12

Total Amount : 17,581.00 (as Total Amount : 15,377.00 (as


on 29/05/2009) on 29/05/2009)

Return : 104.02% Return : 60.27%

We see the return of this six mutual fund’s 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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S.K.School of Business Management,Patan

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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S.K.School of Business Management,Patan

Total
Scheme Amount NAV NAV Date Amount
Reliance diversified power 30/5/200
sector retail 1000 62.74 8 14524.07
Reliance regular savings 22.20 30/5/200
equity 1000 8 8 13584.944
principal global 30/5/200
opportunities fund 1000 18.86 8 14247.728
DWS investment 30/5/200
opportunities fund 1000 35.31 8 13791.157
30/5/200
BOB growth fund 1000 42.14 8 13769.152

In the above chart, we can see how if we start investing Rs.1000 per month then
what return we’ll 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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S.K.School of Business Management,Patan

INSTALME
NTS inv BSE 200 RETURNS
Birla SL tax relief
'96 144 144000 553190 1684008
Birla SL equity
fund 114 114000 388701 669219
Birla frontline
equity 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

43
S.K.School of Business Management,Patan

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 fund’s SIP in Mehsana
city.

Sub - Objective :-
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S.K.School of Business Management,Patan

 Which income class people prefer Mutual fund’s SIP?


 Why they prefer Mutual fund’s SIP?
 Which option they choose alternate of Mutual fund’s SIP?
 How much they aware of Mutual fund’s SIP?
 Which professional people select Mutual fund’s SIP?
 What problems faced when choose Mutual fund’s SIP?
 What benefit they take from Mutual fund’s SIP?
 What factors they take mind, when invest money in Mutual
fund’s 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

45
S.K.School of Business Management,Patan

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 real
assets 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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S.K.School of Business Management,Patan

47
S.K.School of Business Management,Patan

MARKET SURVEY

During the project survey was conducted in commercial city of


North Gujarat at Mehsana area of Doctors, Business Persons, ONGC
officers, Government Officers etc.

• INVESTORS OF MUTUAL FUND


(Total based 100)

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S.K.School of Business Management,Patan

Scale Respondent Percentage


(%)
YES 65 65%
NO 35 35%
Total 100 100%

Investment in Mutual fund

70% 65%
60%
50%
40%
in %

35%
30% YES
20%
10% NO
0%
YES NO
Respondent

INTERPRETATION

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S.K.School of Business Management,Patan

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.

Scale Respondent Percentage


(%)
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%
Selection for investment

17% 20% 12% 14% 17% 14%


50% 6% 0% 0%
in %

Percentage
0%

BANK STOCK MARKET GOVT.SECURITIES COMMODITY POSTAL SCHEME REAL ESTATE PRIVATE PLAYER INSURANCE OTHER

Option select for investment

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S.K.School of Business Management,Patan

Option Select for Investme nt

20%
20% Bank
17% 17%
Stock Market
15% 14% 14%
12% Govt. Securities
Commodity
10%
in %

Postal Scheme
6%
5% Real Estate
Private Player
0% 0% 0%
Insurance

Option select Others

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.

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S.K.School of Business Management,Patan

• KNOWLEDGE ABOUT MUTUAL FUND’S SIP.

Scale Respondent Percentage


(%)
YES 65 65%
NO 35 35%
Total 100 100%

Knowledge of Mutual fund's SIP

70% 65%
60%
50%
40%
in %

35%
30% YES
20% NO
10%
0%
YES NO
Respondent

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S.K.School of Business Management,Patan

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


FUND’S SIP.

Scale Respondent Percentage


(%)
HIGHER 32 49%
RETURN
LOW RISK 19 29%
EASY TO 11 17%
INVEST
Factor select for invest in MF's SIP
OTHER 3 5%
50% 49%
TOTAL 65 100%
40%
30% 29% Higher Return
in %

Low Risk
20% 17%
53 Easy to invest
10% 5% Other
0%
Factor Selection
S.K.School of Business Management,Patan

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 FUND’S SIP.

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S.K.School of Business Management,Patan

Scale Respondent Percentage (%)


LACK OF FUND 17 26%
KNOWLEDGE
LACK OF 7 11%
ADVERTISEMENT
INVESTMENT 16 25%
PROCESS
OTHER 25 38%
TOTAL 65 100%

Problem face Investing in MF's SIP

40% 38%
35%
30% 26% 25%
25% Lack of FK
in %

20% Lack of Adv.


15% 11% Invt. Process
10% Other
5%
0%
Problem face

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S.K.School of Business Management,Patan

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.

• MUTUALFUND’S SIP IS SAFE FOR INVESTMENT


THAN SECURITY MARKET.

Scale Respondent Percentage


(%)
STRONGLY AGREE 27 42%
AGREE 19 29%
NUTURAL 13 20%
DIS AGREE 4 6%
STRONGLY DIS 2 3%
AGREE
56
TOTAL 65 100%
S.K.School of Business Management,Patan

Mutualfund's SIP is safe for investment

50%
42% STRONGLY AGREE
40%
AGREE
30% 29%
in %

20% NUTURAL
20%
DIS AGREE
10% 6%
3% STRONGLY DIS
0% AGREE
Views of Respondent

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%
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S.K.School of Business Management,Patan

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 fund’s SIP?

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S.K.School of Business Management,Patan

Scale Respondent Percentage


(%)
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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S.K.School of Business Management,Patan

Asset mgmt co. select for inv.

35%

32%
SBI

RELIANCE
30%
LIC

UTI

25% TATA

HDFC

PRUD.IC ICI
20%
SUNDRAM
IN %

DSP MERRILL LYNCH

15% FIDELITY

CHO LA MUTUAL FUND

10% FRANKLIN TEMPLETO N


10%
HSBC
7%
KO TAK MAHINDRA
6% 6% 6%
5% 5% 5%
ABN AMRO
5% 4%
60 3% 3% 3% 3% STANDARD CHARTERED

1% 1% O THER
0%
0%
Asset mgmt co.
S.K.School of Business Management,Patan

INTERPRETATION

61
S.K.School of Business Management,Patan

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


fund’s SIP?
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S.K.School of Business Management,Patan

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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S.K.School of Business Management,Patan

INVESTMENT PERIOD

40%
36%
35%
30% 1-2 YEARS
30%
2-3 YEARS
25%
3-4 YEARS
IN %

20%
4-5 YEARS
15% 14%
10% 10% >5 YEARS
10%
5%
0%
YEARS

INTERPRETATION

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S.K.School of Business Management,Patan

People who are want to invest in long time they have two main
options that whether hold with one MF’s 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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S.K.School of Business Management,Patan

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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S.K.School of Business Management,Patan

INCOME LEVEL OF INVESTMENT

50%
46%
5000-10000
40% 10000-15000
15000-20000
30% 20000-25000
in %

26%
25000-30000
20% 30000-35000
16% 35000-40000
10% 40000-45000
5% 45000-50000
3% 2%
0% 1% 0% 1% 0% > 50000

Income level

INTERPRETATION

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


Income level. Second level of income is 10000-15000. Total quantity of
67
S.K.School of Business Management,Patan

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 plans


of Mutual fund.

P = 0.60

Q = 0.40

n = 100

α = 0.10

P1= 65/100=0.65

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

H1: P≠0.60 (60% of the customer are not aware of Mutual fund’s SIP)

σ^x = √ (PQ/N)

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S.K.School of Business Management,Patan

= √ [(0.60) (0.40)/ 100]


= √0.04899
= 0.049

UL/LL = P ± σ * 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 we


accept the null hypothesis and reject the alternatative hypothesis. So it is
proved that 60% of the customer are aware of Mutual fund’s SIP.

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S.K.School of Business Management,Patan

SWOT Analysis

• Strength :-

 A large network is one of the most plus point of Motilal Oswal


 The leadership of the Motilal Oswal is also very good
 The Research Team of Motilal Oswal is very powerful. MF is
totally dependent on the research work so it is very beneficial for
the MF.
 The service provided to customers by Motilal Oswal is also good
 The company’s total turnover is very high
 The return given to customers on their investment is high
 The company has good and experience dealers also

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S.K.School of Business Management,Patan

 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. Due
to 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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S.K.School of Business Management,Patan

 The place where the company is situated is a very famous


corporate place so it is beneficial for the company.
 Company arranges seminars regularly for the increasing
awareness about the services and its new products.
 The mutual fund market is also potential

• Threats :-

 The company has to face a cut throat competition


 Rules and regulation of government of India are also very tuff
 The increment in new competitors of company with new
technology is also very fast.

• Findings :-

 Market is potential but only few people investors know about the
MF services.
 The company has no any expert person for the marketing of MF
The company’s Tips are highly demanded.
 People want to invest in MF but they are afraid about risk and
high amount of MF.
 NRI client are mostly prefer long term investment.

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S.K.School of Business Management,Patan

 NRI clients agree with research based investment gives more


return.
 35% people are not investing in mutual fund because they believe
in self manage of fund.
 Mostly people says that MF gives more return and safe other
security.
People are more interested in investing in MF’s SIP than other
investment.

Suggestions :-

 The staff of Adviser or dealers should meet their clients and


try to find out their problems and solve it.

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S.K.School of Business Management,Patan

 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 don’t 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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S.K.School of Business Management,Patan

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,

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S.K.School of Business Management,Patan

I am the student of S.K. SCHOOL OF


BUSINESS MANAGEMENT PATAN like to have a survey
based on the topic “ Awareness of Mutual fund’s 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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S.K.School of Business Management,Patan

After this answer go to question no.11

4. Do you know about Mutual Fund’s SIP?

Yes [ ] No [ ]

5. Which factors you select for invest in Mutual Fund’sSIP?

Higher return [ ] Low risk [ ]

Easy to invest [ ] other [ ]

If other then specify

6. Which information sources you take in mind when you invest?

Advertise in News papers [ ] TV [ ]

Advisors [ ] Brokers [ ]

Friends/Relatives [ ] Hoardings [ ]

If other then specify

7. Which problem face when you invest?

Lack of Fund knowledge [ ]


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S.K.School of Business Management,Patan

Lack of Advertisement [ ]

Investment Process [ ]

Others [ ]

If other then specify

8. Are you agree with mutual fund’s SIP is safe for investment than security
market?

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

9. Are you agree with mutual fund’s 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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S.K.School of Business Management,Patan

RELIANCE FIDELITY

LIC CHOLA MUTUAL FUND

UTI FRANKLIN TEMPELTON

TATA HSBC

HDFC KOTAK MAHINDRA

PRUD.ICICI ABN AMRO

SUNDARAM STANADARD CHARTERED

If other then please specify its name

11. How many time periods you would like to invest in MF’s SIP?

1 - 2 years [ ] 2 - 3 years [ ]

3 - 4 years [ ] 4 - 5 years [ ]

More then 5 years [ ]

13. What is your monthly Income?

5000 – 10000 [ ] 10000 – 15000 [ ]


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S.K.School of Business Management,Patan

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 ______________________

“Thanks for Giving Your Precious Time”

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