A

Project Study Report

On

Systematic Investment Plan

(The Better Way to Invest In Mutual Funds)
AT

Aditya Birla Money

Submitted in Partial Fulfilment for The

Award of Degree of
Master of Business Administration

(2015-17)

Submitted by:

Submitted to:

Sneha Yadav

Prof. Gaurav Malpani

PGDM-BM Semester I

DECLARATION

I SNEHA YADAV student of PGDM-BM of the Institute of Rural Management, Jaipur hereby
declare that the following project report titled "Systematic Investment Planning is an authentic
work done by me.
This is to declare that all the work indulged in the completion of this work such as research, data
collection, analysis is a profound and honest work of mine.

Sneha Yadav

Prof.Gaurav Malpani

Student

Project Guide

Date:
Place: Jaipur

ACKNOWLEDGEMENT

This project bears imprint of all those who have directly or indirectly helped and extended their
kind support in completing this project.
I would like to thank the management of ADITYA BIRLA MONEY MART LTD. For giving
me a golden opportunity to work in this esteemed organization.
I would like to convey my sincere thanks and gratitude to Mr. Vikas Kumar (Area Manager,
Wealth Management) and Miss. Divya Tekchandani (Financial Advisor) for guiding me and
helping me throughout the duration of my project and without whose help this project would
never have been completed. He has been a constant source of motivation and encouragement for
us. He motivated and encouraged us from all odds.
I would also like to thank Mr. Gaurav Malpani (Faculty, FMS-IIRM) for providing me guidance
and support throughout my training.

SNEHA YADAV

EXECUTIVE SUMMARY
Investing money where the risk is less has always been risky to decide. The first factor, which an
investor would like to see before investing, is risk factor. Diversification of risk gave birth to the
phenomenon called Mutual Fund.
The Mutual Fund Industry is in the growing stage in India, which is evident from the flood of
mutual funds offered by the Banks, Financial Institutes & Private Financial Companies. As a part
of my study curriculum it is necessary to conduct a grand project. It provides me an opportunity
to understand the particular topic in depth and which leads to that topic.
A host of factors has contributed to this explosive growth of the industry. The industry has made
significant strides in terms of its variety, sophistication and regulation. Due to the economic
boom, entry of foreign asset management companies, favorable stock markets and aggressive
marketing by mutual funds, the asset management industry in India is witnessing dramatic growth
in terms of new fund openings, the number of mutual fund families, and in the total assets under
management in recent years.
Despite various attractions offered, the total net assets of mutual funds are very less as compared
to other developed countries. In the product offering too, the Indian fund industry is not close to
the developed countries. Indias 32 member fund industry has to scale new heights to narrow the
gap with the other developed countries.
To achieve this, the Indian mutual fund industry needs to widen its range of products with
affordable and competitive schemes that combine various elements of liquidity, return and
security in making mutual fund products the best possible alternative for the small investors in
the Indian market. Besides, mutual funds can survive only if they perform well and satisfy the
expectations of the investors.
In this context a sincere attempt has been made by the researcher to examine the steady growth
of the industry, the innovations and the development that has taken place in India. This research
on Mutual Fund industry will specifically focus on the SBI Mutual Funds.

TABLE OF CONTENTS

SERIAL

INDEX:

PAGE

NO:

NO:
1

COMPANY PROFILE

6-7

INTRODUCTION TO MUTUAL FUNDS

8-9

TYPES OF MUTUAL DUNDS

10-13

HOW TO INVEST IN MUTUAL FUNDS

14-15

SYSTEMATIC INVESTMENT PLANNING

16-19

RESEARCH AND METHODOLOGY

20-22

ANALYSIS AND INETERPRETATION

23-29

DISCUSSION ON TRAINING WORK PROFILE

30-33

FINDINGS AND SUGGESTIONS

34-35

10

ANNEXURE

42

COMPANY PROFILE
ADITYA BIRLA MONEY MART LIMITED

Aditya Birla money mart ltd is a wealth management and distribution player , offering
third party product like company deposite , mutual funds, insurance, structured product,
alternate investment, property services and has a premier wealth management service arm
to cater to HNI customers.

Adtiya birla money mart limited is a premier wealth management company with an
emphasis on investment advisory and financial planning .

Ranked among the top players in this segment, ABMML is driven by knowledge,
expertise, and experience. Their product range covers mutual funds, life insurance and
other instruments like RBI relief bonds, bonds of public financial institution, company
fixed deposite and initial public offerings of equity and debt securities.

The company also provides life insurance products of Birla SunLife Insurance, through a
wholly-owned subsidiary BSLD Insurance Adisory Services Limited (BSDLIAS)

The company caters to the corporate and institutional segment, the wealth management
segment, the B2Csegment and channel business. With a direct presence through its 37
branches and additional reach through its network of 7000 business associates across
more than 100 centres , ABMML has a trusted investor base of over 260000.

ADITYA BIRLA MONEY MART INCLUDES :

STOCK BROKING AND DISTRIBUTION

REAL ESTATE

WEALTH MANAGEMENT

STOCK BROKING AND DISTRIBUTION

A disciplined and focused approach leads to healthier and speedier fulfilment of financial
goals. But to leapfrog in the markets, you need to weight several factors like your risk
profile, product you have invested in,time frame and even uncontrollable factors such as
market movements, inflation and many more.

Therefore to manage all these we need a is a financial partner with a trading pedigree, rich
experience and smart expertise. At Aditya Birla Money can devise an ideal investment

strategy aligned to your investment goals and risk appetite. This can help by rally the
market sensex, NSE, BSE etc wih a diverse range of investment solutios and services
available at any of our branches and online. Glance through our range of Broking and
Investment product below: Demat Plus Broking Account
Aditya Birla Money Trade Metri
Express Trade
Portfolio Tracker
Online Trading Classic Account
Mobile Trading
I-Decide Brokerage Plan
REAL ESTATE

In the real estate arena, chances of finding a piece of property that shows potential of
quick capital appreciation are tough and rather slim. Yet, property investments act as
booster doses to pep the health of your portfolio. And even if you have zeroed in on the
perfect property, its back breaking to land a good bargain for it. Heres where our real
estate advisory can assist you to negotiate a better deal and buy property of your choice.
Thats not all.

Aditya Birla Real Estate have huge repository of properties updated continuously to
provide you with realty deals that suit your need-profile. Besides, there is a host of
exclusive services right from home loan acquisition to final paperwork that you can
benefit from. With dedicated Relationship Managers at your service expect nothing but
the best end-to-end property solutions for all property transactions.

WEALTH MANAGEMENT

Wealth Management is defined as the complete blend of various asset classes, tax
consultancy and risk management strategies molded into a single cast normally targeted
at High Net worth Individuals.

It normally addresses certain critical issues such as asset allocation , retirement planning
, estate and trust planning, business succession planning as well as equity planning, HNWI
of today is technology-accessed global in outlook and is willing to learn from the
experience of the matured of the club outside India..

INTRODUCTION TO MUTUAL FUND

A mutual fund is just the connecting bridge or a financial intermediary that allows a group
of investors to pool their money together with a predetermined investment objective. The
mutual fund will have a fund manager who is responsible for investing the gathered money
into specific securities (stocks or bonds). When you invest in a mutual fund, you are buying
units or portions of the mutual fund and thus on investing becomes a shareholder or unit
holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others
they are very cost efficient and also easy to invest in, thus by pooling money together in a
mutual fund, investors can purchase stocks or bonds with much lower trading costs than if
they tried to do it on their own. But the biggest advantage to mutual funds is diversification,
by minimizing risk & maximizing returns.

Organization Structure of a Mutual Fund

There are many entities involved and the diagram below illustrates the
Organizational set up of a mutual fund.

Fund Sponsor:
A sponsor is any person who, acting alone or in combination with another body corporate,
establishes a MF. The sponsor of a fund is similar to the promoter of a company. In accordance
with SEBI Regulations, the sponsor forms a trust and appoints a Board of Trustees, and also
generally appoints an AMC as fund manager. In addition, the sponsor also appoints a custodian
to hold the fund assets. The sponsor must contribute at least 40% of the net worth of the AMC
and possess a sound financial track record over five years prior to registration.
Trustees:
The MF or trust can either be managed by the Board of Trustees, which is a body of individuals,
or by a Trust Company, which is a corporate body. Most of the funds in India are managed by
Board of Trustees. The trustee being the primary guardian of the unit holders funds and assets
has to be a person of high repute and integrity. The trustees, however, do not directly manage the
portfolio securities. The portfolio is managed by the AMC as per the defined objectives,
accordance with Trust Deed and SEBI (Mutual Funds) Regulations.
Asset Management Company (AMC):
The AMC, which is appointed by the sponsor or the trustees and approved by SEBI, acts like the
investment manager of the trust. The AMC functions under the supervision of its own Board of
Directors, and also under the direction of the trustees and SEBI. AMC, in the name of the trust,
floats and manages the different investment schemes as per the SEBI Regulations and as per
the
Investment Management Agreement signed with the Trustees.
Others:
Apart from these, the Mutual Fund 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 and redemption of units of Mutual Fund.

TYPES OF MUTUAL FUNDS:

A mutual fund, say, Birla Mutual Fund, can have several 'funds' [called 'schemes' in India) under
its management. These different funds can be categorized by structure, investment objective and
others. It would be well illustrated by the following chart:

BY STRUCTURE
1. Open - Ended Schemes:
An open-end fund is one that is available for subscription all through the year. These do not have
a fixed maturity. Investors "an conveniently buy and sell units at Net Asset Value (NAV)
related prices. The key feature of open-end schemes is liquidity.

2. Close - Ended Schemes:

A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years.
The fund is open for subscription

only during a specified period. Investors can invest in

10

the scheme at the time of the initial public issue

and thereafter they can buy or sell

the units of the schemes on the stock exchanges: where they are listed. In order to provide
an exit route t0 the investors, some close-ended funds give an option of selling back the units
to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations
stipulate that at least One of the two exit routes is provided t0 the investor.

3. Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and close- ended
schemes. The units may be traded on the stock exchange or may be open for sale or redemption
during pre-determined intervals at NA V related prices.

B) BY NATURE:
1. Equity Fund:
These funds invest the maximum part of their corpus into equities holdings. The structure of the
fund may vary different for different schemes and the fund managers outlook on different stocks.
The Equity Funds are sub-classified depending upon their investment objective, as follows:
Diversified Equity Funds
Mid-Cap Funds
Sector Specific Funds
Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds rank high on the riskreturn matrix.
2. Debt Funds:
The objective of these Funds is to invest in debt papers, Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
Gilt Funds: Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are associated with
Interest Rate risk. These schemes are safer as they invest in papers backed by Government.
Income Funds: Invest a major portion into various debt instruments such as bonds,
corporate debentures

and Government securities.

11

MIPs: Invests maximum of their total corpus in debt instruments while

they take

minimum exposure in equities. It gets benefit of both equity and debt market. These scheme
ranks slightly high on the risk-return matrix when compared with other debt schemes.
Short Term Plans (STPs): Meant for investment horizon for three to six months. These funds
primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers
(CPs). Some portion of the corpus is also invested in corporate debentures.
Liquid Funds: Also known as Money Market Schemes, These funds provides easy liquidity
and preservation of capital, These schemes invest in short-term instruments like Treasury Bills,
inter-bank call money market, CPs and CDs. These funds are meant for short-term cash
management of corporate houses

and are meant for an investment horizon of 1 day to 3

months. These schemes rank low on risk-return matrix and are considered to be the safest
amongst all categories of mutual funds.
3. Balanced Funds:
As the name suggest they are a mix of both equity and debt funds. They invest in both equities
and fixed income securities, which are in line with pre-defined investment

objective of the

scheme. These schemes aim to provide investors with the best of both the worlds. Equity part
provides growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment parameter viz; each
category of funds is backed by an investment philosophy, which is pre-defined in the objectives
of the fund. The investor can align his own investment needs with the funds objective and invest
accordingly.
C) BY INVESTMENT OBJECTIVE:
Growth Schemes:
Growth Schemes are also known as equity schemes. The aim of these schemes is to provide
capital appreciation over medium to long term. These schemes normally invest a major part of
their fund in equities and are willing to bear short-term decline in value for possible future
appreciation.
Income Schemes:
Income Schemes are also known as debt schemes. The aim of these schemes is to provide regular
and steady income to investors. These schemes generally invest in fixed income securities such
as bonds and corporate debentures. Capital appreciation in such schemes may be limited.
Balanced Schemes:
Balanced Schemes aim to provide both growth and income by periodically distributing a part of

12

the income and capital gains they can. These schemes invest in both shares and fixed income
securities, in the proportion indicated in their offer documents (normally 50:50).
Money Market Schemes:
Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate
income. These schemes generally invest in safer, short-term instruments, such as treasury bills,
certificates of deposit, commercial paper and inter-bank call money.
OTHER SCHEMES
Tax Saving Schemes:
Tax-saving schemes offer tax rebates to the investors under tax laws prescribed from time to
time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings
Scheme (ELSS) are eligible for rebate.
Index Schemes:
Index schemes attempt to replicate the performance of a particular index such as the BSE Sensex
or the NSE 50. The portfolio of these schemes will consist of only those stocks that constitute
the index. The percentage of each stock to the total holding will be identical to the stocks index
weightage. And hence, the returns from such schemes would be more or less equivalent to
those of the Index.
Sector Specific Schemes:
These are the funds/schemes which invest in the securities of only those sectors or industries
as specified in the offer documents, e.g., Pharmaceuticals, Software, Fast Moving Consumer
Goods (FMCG), Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may give higher returns,
they are more risky compared to diversified funds. Investors need to keep a watch on the
performance of those sectors/industries and must exit at an appropriate time.

BANKS V/S MUTUAL FUNDS:

Mutual Funds are now also competing with commercial banks in the race for retail investors
savings and corporate float money. The power shift towards mutual funds has become obvious.
The coming few years will show that the traditional saving avenues are losing out in the current
scenario. Many investors are realizing that investments in savings accounts are as good as locking
up their deposits in a closet. The fund mobilization trend by mutual funds indicates that money
is going to mutual fund in a big way.

13

CATEGORY

BANKS

MUTUAL FUNDS

Returns

Low

High

Administrative exp.

High

Low

Risk

Low

Moderate

Investment options

Less

More

Network

High penetration

Low but improving

Liquidity

At a cost

Better

Quality of assets

Not transparent

Transparent

Interest calculation

Guarantee

Minimum balance between

10th & 30th of every month
Maximum

Rs.1

deposits

lakh

on

Everyday

None

How to invest in mutual funds?

Steps One - Identify your investment needs.
Your financial goals will vary, based on your age, lifestyle, financial independence, family
commitments, level of income and expenses among many other factors. Therefore, the first step
is to assess your needs. Begin by asking yourself these questions:
1. What are my investment objectives and needs? Probable Answers: I need regular income
or need to buy a home or finance a wedding or educate my children or a combination of all these
needs.
2. How much risk am I willing to take? Probable Answers: I can only take a minimum amount
of risk or I am willing to accept the fact that my investment value may fluctuate or that there may
be a short term loss in order to achieve a long term potential gain.

14

3. What are my cash flow requirements? Probable Answers: I need a regular cash flow or I
need a lump sum amount to meet a specific need after a certain period or I dont require a current
cash flow but I want to build my assets for the future. By going through such an exercise, you
will know what you want out of your investment and can set the foundation for a sound Mutual
Fund Investment strategy.
Step Two - Choose the right Mutual Fund.
Once you have a clear strategy in mind, you now have to choose which Mutual Fund and scheme
you want to invest in. The offer document of the scheme tells you its objectives and provides
supplementary details like the track record of other schemes managed by the same Fund Manager.
Some factors to evaluate before choosing a particular Mutual Fund are:
The track record of performance over the last few years in relation to the appropriate yardstick
and similar funds in the same category.
How well the Mutual Fund is organized to provide efficient, prompt and personalized service.
Degree of transparency as reflected in frequency and quality of their communications.
Step Three - Select the ideal mix of Schemes.
Investing in just one Mutual Fund scheme may not meet all your investment needs. You may
consider investing in a combination of schemes to achieve your specific goals.
The following charts could prove useful in selecting a combination of schemes to satisfy your
needs.
Step Four - Invest regularly
For most of us, the approach that works best is to invest a fixed amount at specific intervals, say
every month. By investing a fixed sum each month, you get fewer units when the price is high and
more units when the price is low, thus 34 bringing down your average cost per unit. This is called
rupee cost averaging and is a disciplined investment strategy followed by investors all over the
world. With many open-ended schemes offering systematic investment plans, this regular investing
habit is made easy for you.
Step Five - Keep your taxes in mind
As per the current tax laws, Dividend/Income Distribution made by mutual funds is exempt from
Income Tax in the hands of investor. However, in case of debt schemes Dividend/Income

15

Distribution is subject to Dividend Distribution Tax. Further, there are other benefits available for
investment in Mutual Funds under the provisions of the prevailing tax laws. You may therefore
consult your tax advisor or Chartered Accountant for specific advice to achieve maximum tax
efficiency by investing in mutual funds.
Step Six - Start early
It is desirable to start investing early and stick to a regular investment plan. If you start now, you
will make more than if you wait and invest later. The power of compounding lets you earn income
on income and your money multiplies at a compounded rate of return.
Step Seven - The final step
All you need to do now is to get in touch with a Mutual Fund or your advisor and start investing.
Reap the rewards in the years to come. Mutual Funds are suitable for every kind of investor whether
starting a career or retiring, conservative or risk taking, growth oriented or income seeking.

Types of Investment in Mutual Fund

Lump Sum

Systematic Investment Plan

Lump Sum Payment

A lump sum is a single payment of money, as opposed to a series of payments made over time
(such as an annuity) This means investing the entire sum of money at one go. For instance, if you
have Rs 1 lakh which you are willing to fully invest in stocks or MFs, it is a lump-sum investment.

16

Systematic Investment Plan

What is Systematic Investment Plan?

Systematic Investment Plan (SIP) is a smart financial planning tool that helps you to create
wealth, by investing small sums of money every month, over a period of time. Systematic
Investment Plan (SIP) is a planned approach to investments and an investment technique that
allows you to provide for the future by investing small amounts of money in Mutual Fund
schemes of your choice.
A SIP is a method of investing in mutual funds, by investing a fixed sum at a regular frequency,
to buy units of a mutual fund schemes. It is quite similar to a recurring deposit of a bank or post
office. For the convenience, an investor could start a SIP with as low as Rs 500; however this
amount may differ from one fund house to other. The SIP provides them a way to invest in the
fund of their choice in installments.
Why is SIP a Smart choice?

Helps in inculcating financial discipline

Helps you put investments on your priority list
Average out your cost of investment and hence reduce your risk
Let's say you invested Rs. 1000 every month and let's assume the scheme you invested in
is available at a unit value of Rs. 20 per unit. Then in month 1, you will be able to obtain
50 units. In month 2, if the unit value goes down to Rs. 10 then you will be able to obtain
100 units

17

Hence for Rs. 2000 invested over 2 months, the total value of your investment at the end
of 2 months is Rs. 1500. However, if you had invested a straight sum of Rs. 2000 in month
1 when the unit value was Rs. 20 per unit your net value at the end of month 2 will only
be Rs. 1000.
Hence a SIP helps you average out your cost and thereby reduce risk resulting in
generating better returns

Helps in compounding your wealth

Getting rich is simpler than you think, here's a simple formula that can help:
Start Early + Invest Regularly = Create Wealth
Invest Regularly
Systematic investing has a compounding effect on your investments. In the long term, an
investment as low as Rs 1000/- per month can swell up into a huge corpus.
Start Early
Similarly, starting your investments early also has its own advantages. Starting early means that
the power of compounding starts acting on your money earlier, thereby potentially generating
better returns.
Consider the following graph:

An individual who starts planning for his retirement at 25 yrs of age by investing Rs. 1000 / per
month may collect up to Rs. 40 Lakhs on retirement whereas his investment over the period may
just be Rs. 4.2 Lakhs.On the other hand, if the same individual delays his retirement planning by
5 yrs, his wealth upon retirement may reduce significantly (approx Rs. 15 Lakhs.)

18

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..

19

RESEARCH METHODOLOGY
TITLE OF THE STUDY: - Systematic Investment Plan
(The Better Way to Invest In Mutual Funds)
DURATION OF THE PROJECT

The duration of the project is 30 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 TYPE
Conclusive and explorative approach has been adopted in the study. As here the topic of
research problem has been explored so that hidden facts can come into the light and then
the maximum allocation criteria in SIP are Rs. 1000-3000 i.e. the final conclusion is given
45%
SAMPLE SIZE
A sample size of 50 investors was chosen to meet the earlier mentioned objectives. The
selection of sample was based on the following criteria: -

People belonging to different state of society.

Servicemen working in government organization & private organization.

Professionals who includes doctors, lawyers, teachers etc

20

 RESEARCH DESIGN
This research is Explorative and conclusive in nature because it aims to collect the data
about the behavior of investors in which way they invest in Mutual Funds. The research
approach used is survey based and the analysis is largely based on the primary data.
RESEARCH INSTRUMENT
Structured questionnaire: open- ended and close- ended.
RESEARCH APPROACH
Any methodology includes the overall research design, the sampling procedure and data
collection method. The methodology adopted by me for purpose of finding the investment
behavior of investors was DIRECT SURVEY METHOD
STUDY SCOPE OF THE
Jaipur only
This project will help existing/prospective investor to understand what the various mode of
investment in Mutual Fund are and why Systematic Investment Plan gives better returns than Lump
sum. So that investors can do better use of their hard earned money to earn more profit.
TYPES OF DATA
1. Primary Data
2. Secondary Data
Primary Data is that data which is collected by the researcher as per his/her needs
Secondary Data is that data which is collected through references as websites, journals, books,
magazines , etc.

21

 LIMITATIONS TO THE STUDY

Though research based decision-making is now considered but still there is a gap between the
understanding of researcher and users.
Research is there to help in decision-making, not a substitute of decision-making. Some of 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.

22

ANALYSIS AND INTERPRETATION

Q 1: In which Financial Instrument do you invest into?
Ans:
Financial Instruments

Investment in %

Mutual

76

Bond

15

Online Trading

07

Derivatives

02

INTERPRETATION: From above pie chart, I have analyzed that 76% of investors invest in the
analysis is done on the basis of the response of respondents, which is collected through the
questions present in questionnaire.
Q 2: By structure in which type of schemes have you invested?
Ans :

Types of schemes on the basis of structure

Investment in %

Open ended funds

66

Close ended funds

22

Intervals funds

12

23

INTERPRETATION: The above pie chart depicts that 66% investors invest in Open-ended funds,
22% in Close-ended funds and 12% in Interval funds.
Q. 3: By investment objective In which type of schemes have you invested?
Ans:

Types of Investment on the basis of objective

Investment in %

Growth Schemes

55

Income Schemes

13

Balanced Schemes

32

INTERPRETATION: From the above pie chart, I conclude that there are 55 % investors who
invest in Growth Schemes, 13% investor invest in Income Schemes, and 32% investors invest in
Balanced Funds

24

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

44

INTERPRETATION: The above chart depicts that the maximum numbers of investor.i.e.41%
investors invest in Sectorial Funds , 44% in Index Funds and 15% in Tax Saver Funds.
Q.5 Do you repeat your investment after initial investment?
Ans :
Repetition of investment

Investors in %

Yes

68

No

32

25

INTERPRETATION: The above pie chart depicts that 68% of investors invest again after the
initial investment.
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%

10

INTERPRETATION: The above chart depicts that 43% investor invest that up to 10% of their
earning in Mutual Fund.

26

Q.7. How many investors invested in SIP , Lump sum or both?

Ans :
Type of investment

Investment in %

SIP

55

Lump sum

10

Both

35

INTERPRETATION: From above chart I have analyzed that 55% investors have invested SIP,
10% in lump sum and 35% in both the category.

27

Q.8 What is an allocation criteria of an investor in SIP?

Ans

Allocation criteria (in Rs)

Investment in %

Less than 1000

1000-3000

45

3000-5000

36

More than 5000

10

Allocation criteria (in Rs)

50
40
30
20

investment in %
10
0
less than 1000

1000-3000

3000-5000

more than 5000

INTERPRETATION: From above chart I have analyzed that the allocation criteria of investment
is 45% in the range Rs1000 to Rs 3000.
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

Less than or equal to 3 years

34

Less than or equal to 2 years

25

Less than or equal to 1 year

28

INTERPRETATION: The above bar chart depicts that most of the investors (i.e. 33.33%) invest
in less than 3 years.
Q.10 Which has given more profit to investors?
Ans :

Investment in

Profit in %

Lump sum

84

SIP

16

INTERPRETATION: The above Pie chart depicts that 84% of investors have got more profit in
Systematic Investment Plan.

29

DISCUSSION ON TRAINING
WORK PROFILE
It was very nice experience in my internship that I have worked in various conditions and I have
gained my experience through different tasks which were assigned to me.
In my training period of 45 days I have experienced a lot and had such experiences which I have
never seen before the internship
I would like to explain about my responsibilities during internship period.

It was really a total experience giving internship in my career and I came to know a lot of
things about market, about the policies of company, about the market competition, about
the segments of customers and the variety of customers, about customer satisfaction, the
quality service, team spirit, achieving the targets and lot of other things.

Went for various morning activities and conducted surveys.

Went for meetings with mentor and understood about market conditions .

Pitching to the customers about Aditya Birla Money Services

Conducted calls and fixed meetings.

Entering Meetings in CTP Software.

Made Comparisons of PMS and Mutual Funds in Excel

30

Mutual Fund Comparison

Absolute (%)

Scheme Name

CAGR (%)

3
6
Months Months 1 Year 2 Year

Value of
Rs. 1
crore
invested
on 1st Jan
3
5
2011 ( in
Years 4years Years crores)

Birla Sun Life MNC Fund (G)

1.07

1.37

17.84 42.35 30.55 33.32 22.35

2.74

Franklin India Smaller Cos Fund(G)

4.91

5.52

9.98

44.22 32.95 37.65 21.61

2.66

SBI Magnum MidCap Fund-Reg(G)

5.12

3.85

14.56 40.40 30.53 35.05 19.81

2.47

UTI Mid Cap Fund(G)

1.01

1.76

6.59

42.57 30.56 33.41 19.23

2.41

HDFC Mid-Cap Opportunities Fund(G)

2.85

2.54

6.10

36.91 26.93 30.24 18.64

2.35

ICICI Pru Value Discovery Fund-Reg(G)

2.04

-0.55

5.82

35.32 25.45 30.65 17.31

2.22

Franklin India High Growth Cos Fund(G)

1.18

-2.66

1.94

35.04 25.78 29.96 16.44

2.14

Reliance Mid & Small Cap Fund(G)

6.86

7.47

8.67

40.16 26.52 30.33 15.55

2.06

Reliance Equity Opportunities Fund(G)

3.26

0.91

1.19

27.09 18.77 25.57 14.27

1.95

IDFC Sterling Equity Fund (G)

4.65

-1.33

0.38

25.66 18.02 24.48 13.27

1.86

Kotak Select Focus Fund(G)

0.34

-0.72

3.68

27.90 19.81 23.37 12.48

1.80

Birla SL Top 100 Fund(G)

0.61

-2.17

0.13

22.19 17.31 22.10 11.75

1.74

Birla SL Advantage Fund(G)

1.34

-0.75

1.77

25.56 19.46 23.86 11.40

1.72

UTI Equity Fund (G)

-0.71

-2.33

1.17

21.96 16.73 20.55 11.31

1.71

Reliance Top 200 Fund(G)

2.82

-2.52

1.40

25.34 17.52 23.21 11.14

1.70

Principal Growth Fund(G)

4.88

-0.17

3.18

24.12 18.33 25.00 11.03

1.69

Birla SL Frontline Equity Fund(G)

0.69

-3.33

1.34

21.13 16.73 21.55 10.97

1.68

ICICI Pru Focused BlueChip Eq Fund-Reg(G) 1.77

-2.25

0.10

18.80 15.63 18.53 10.54

1.65

ICICI Pru Dynamic Plan-Reg(G)

4.87

-0.85

-1.10

16.45 16.16 19.83 10.45

1.64

ICICI Pru Top 100 Fund-Reg(G)

6.63

0.12

-0.32

17.39 15.10 19.53 10.22

1.63

31

PMS COMPARISION

Absolute Returns(%)

PMS
Birla Core Equity
Portfolio

Benchmark- CNX500 0.58

Outperformance

Motilal Oswal
NTDOP
Benchmark- CNX
Midcap

Outperformance

0.43

2.67

1.12

1.55

Motilal Oswal Value 1.89

Benchmark- Nifty

Outperformance

0.14

1.75

01st April
2008

3.33

Annualised Returns(%)

3
6
1
month month 1
2
3
4
5
Since
month s
s
year year year year year Inception

1.01

Inception
date

Curren
t
Value
of Rs 1
crore
invest
ed on
1st
Jan
2011

3.6

18.3 62.3 45.9 44.1 27.2

10.4
4
4
4
7
1

22.48

1.18

-2.5

- 16.9 12.3 16.9

0.72 7
4
1 6.36

7.58

1.36

2.42

19.0 45.3
27.2 20.8
12.9
6
7 33.6 6
5

14.9

1.97

0.04

16.0 43.7 34.6 39.8 25.4

-4.43 3
8
3
7
8

17.77

3.17

28.8 16.3 21.6

2.98 6.46 3
5
6 8.62

5.85

1.51

-3.13

14.9 18.2 18.2 16.8

-7.41 9.57 5
8
1
6

11.92

1.60

0.81

25.7 17.5 18.9 11.8

-4.74 0.43 9
5
2
9

26.33

-0.03

- 12.2
14.4
-5.04 4.06 7 10.4 8 5.31

17.5

1.30

0.84

13.5
4.49 2 7.15 4.44 6.58

8.83

0.46

0.3

32

05th Dec
2007

25th March
2003

3.11

1.75

LEARNING EXPERIENCE:
During this internship, I have many good and Bad Experiences & also got to learn many things
like,
Having Patience
Convincing Skill
Corporate working Nature
Making Relation with persons
Internships give you exposure to new and interesting professional situationswith a safety
net. The good internships are with companies who get that youre an intern. They give
you real opportunities for practical application of skill, but are also there to catch you if
there is a problem along the way.

33

Findings

The 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%

Aditya Birla is a top ranked company listed with NSDL and CDSL; provide trading through
both NSE and BSE.

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.

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.

34

RECOMMENDATION AND SUGGESTIONS

Though the Aditya Birla Financial Services have a very good ascribed plan with exclusive band of
opportunities but as nothing is free from the hurdles therefore there are few shortcomings which I
felt makes Aditya Birla Financial Services fail to achieve its target :

There is high potential market for mutual fund advisors in Jaipur city but this market
needs to be explored as investors are still hesitated to invest their money in mutual fund.

In Jaipur 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.

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.

35

ANNEXURE
QUESTIONNAIRE
(Hello, I am Sneha Yadav. I need your spare time to fill up the questionnaire, as this is the part of
my Winter Internship Training under MBA curriculum)
NAME: ______________________________________ __________________
AGE
0-18_____

18-36_____

GENDER:

Male

36-54_____

54-72______

72 ABOVE______

Female
OCCUPATION:

Businessman

[ ]

Pvt. Employee

[ ]

Govt. Employee

[ ]

Professional

[ ]

Student

[ ]

other (specify):________

CONTACT NO: __________________________________

Q1. In which of these Financial Instruments do you invest into?
Mutual Funds [ ]

Bonds [ ]

Derivatives [ ]

Online trading [ ]

Q2 .By structure in which type of schemes did you invested?

Open Ended Fund

[ ]

Close Ended Fund

[ ]

Interval Schemes

[ ]

Q3.By investment objective in which type of schemes have you invested?

Growth Schemes

[ ]

Income Schemes

[ ]

Balanced Schemes

36

[ ]

Q4.In which type of funds you want to invest?

Tax Saver Funds

[ ]

Index Funds

[ ]

Sectorial Funds

[ ]

Q5. Did you repeat your investment after your initial investments?
Yes [ ]

No [ ]

Q6. What percentage of your earnings do you invest in Mutual Funds?

Up to 10%

Up to 25%

Up to 50% Above 50%

Q7. In which you have invested?

SIP [ ]

Lump Sum [ ]

Both [ ]

Q8. What is your allocation criterion?

<1000b [ ]

1000-3000 [ ] 3000-5000 [ ]

>5000b [ ]

Q9. For what time period you have invested?

<= 1 yr. [ ] <= 2 yr. [ ]

<= 3 yr. [ ] <= 4 yr. [ ] <= 5 yr. [ ]

Q10. Which has given you more profit?

SIP [ ]

Lump Sum [ ]

37