Sip 4d2n10

SUMMER TRAINING REPORT ON COMPARATIVE STUDY IN INDIA WITH SPECIAL REFERENCE TO SYSTEMATIC INVESTMENT PLAN(SIP) PRESENTED BY –

POOJA SHARMA PGDM

OBJECTIVE OF THE STUDY 1. Investors’ option for entry into a Mutual Fund. •Lump sum •SIP 2. Comparative analysis between SIP and other investment methods

3. Investors Delight when investment is through SIP. 4. Procedure for investment in SIP

SCOPE OF THE STUDY  Since the summer internship training is done in Delhi, so the sample universe taken is from Delhi only.  This project will help existing/prospective investor to understand what are the various mode of investment in Mutual Fund and  why Systematic Investment Plan gives better returns than any other methods.

DATA COLLECTION  SOURCES:  Primary Data is collected through interviews the investors directly.  Secondary data which is used just for reference, is collected through magazines, FACTSHEET of different AMC’s

RESEARCH DESIGN •This research is Explorative and conclusive in nature •Research Instrument : Questionnaire

•Research approach : Direct Survey Method •Sample size : 50

ANALYSIS

I have analyzed that 75% of investors invest in Mutual Funds. Rest of the investors invest in Bond (i.e. 16%), Online Trading (i.e. 7%) and Derivatives (i.e. 2%).

ANALYSIS

The above pie chart depicts that 66% investors invest in Openended funds, 22% in close-ended funds and 12% in interval funds.

ANALYSIS

I conclude that there are 55% investors who invest in Growth Schemes, 13% investors invest in Income Schemes and 32% investors invest in Balanced Schemes.

ANALYSIS  chart depicts that the maximum no. of investors i.e.41% investors invest in Sectorial Funds, 44% in Index funds and 15% in Tax saver funds

ANALYSIS  68% of investors invest again after the initial investments.

ANALYSIS  Chart depicts that 43% investors invest up to 10% of their earnings in Mutual Funds.

ANALYSIS I have analyzed that 55% investors have invested in Systematic Investment Plan, 10% in Lump sum and 35% in both the category

ANALYSIS  I have analyzed that the allocation criteria of investment is 45% in the range Rs.1000 to Rs.3000

50

Investment in %

45

40 35

30 25

20 15

10 5

0 Less than 1000

1000 - 3000

3000-5000

Alocation criteria in Rs

Above 5000

ANALYSIS  chart depicts that most of the investors (i.e. 33.33%) invest in less than 3 years.

ANALYSIS Pie chart depicts that 83.33% of investors have got more profit in Systematic Investment Plan.

ANALYSIS chart depicts that 65% investors are satisfied with the redemption facilities provided by KARVY.

ANALYSIS PART 2 INVESTMENT

DESCRIPTION

INSTUMENTS Mutual Fund Sip

Flexible over any instrument

Insurance

Heavy s

Fixed deposits

One time pay gives bigger commitment for investing and inflexible

Rbi relief funds

Percentage of return is lower than the debt funds

Provident fund

Not easy withdrawal and rate of interest is less

FINDINGS  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 investment  Karvy is not able to provide sufficient services to the investors due to unawareness among advisors regarding services.  The awareness level of investor is low in advisors are interested in dealing in mutual fund.  Very less advisors are knowing about services provided by karvy.

Strength :

Weakness :

 A well-known name in Financial Companies.

 No access to rural market.

 Wide Experience in this field.

 No direct link between investors & the AMC.

SWOT

 Dedicated Employees.  Tie up with many financial institutions.

 Ever growing distribution network.  Good Infrastructure.  Experienced Fund Managers.  Easy access to the branch.

Opportunity :

Threat :

 Positive outlook of people towards mutual funds.

Highly volatile and uncertain market conditions.

 Untapped market.

Large number of financial giants present in this field.

LIMITATION  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 no. Of facts but it does not provide actionable results.

LIMITATIONS  It cannot provide the answer to any problem but can only provide a set of guidelines.  Management rely more on the intuitions and judgment rather than research.  Area of research was restricted to some locations of the city and strata.

RECOMMENDATIONS  Needs to be explored as investors are still hesitated  proper Marketing of various schemes is required, company should arranges more and more seminars on Mutual Funds.  Awareness of MF services among the investors are very low so Asset Management company  Most of advisors are not interested in dealing of Mutual Funds because they get very low commission.

RECOMMENDATIONS  Most of people aware of life insurance, NSC and PPF for tax saving so, company should market various tax saving schemes of Mutual Funds and their benefits.

 The quality of agents performance and investors trust on them can be improved only if they are permanent in nature.

THANK YOU