A PROJECT REPORT ON TO STUDY OF MUTUAL FUNDS IN RELATION WITH SYESTEMATICE INVESTMENT PLAN AND COMPARING RETURNS IN VARIOUS SECTOR

AT KARVY STOCK BROKING LIMITED, PUNE SUBMITTED TO UNIVERSITY OF PUNE IN THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

SUBMITTED BY MISS.PRATIKSHA SANJAY RAHANE

UNDER THE GUIDANCE OF PROF.NEHA SHAH

Amrutvahini College Of Engineering, Sangamner. (Department Of MBA) 2013-2014

ACKNOWLEDGEMENT
Completing a project requires affirmative support and help of many people and I have to acknowledge that this would certainly not have been possible. It is always like honors to do work with Karvy stock broking company. I am very thankful to Karvy stock broking company limited for giving me an opportunity for doing my summer training program. In particular, I would like to MR.C.Parthasarathy (chairman) for showing faith on me and for providing their valuable guidance, constant encouragement and inspiration for completing this report.I would also like to thank Prof. Neha Shah my Project mentor, for her helpful guidance, lessons and support in the completion of this report. I would also like to thank andMR.c.parthasarathy for guiding me and providing the necessary information which is helpful in my project and lastly my special thanks to finance department. I am also grateful to the Karvy stock broking company who gave me full co-operation and support by providing necessary inputs required at different stages of my project work.

Thanks and regards, Pratiksha Sanjay Rahane

PREFACE
This Summer Internship Program has been carried out at Karvy stock broking limited. as a part of academic requirement to learn various functions of finance department. A study of this sort is intended to provide a fair idea of finance department in company. This project gives the reasonable understanding of the organization its origin and different services in the company. This depicts the picture of job satisfaction aspect that the financeDepartment has to carry out.

DECLERATION

This is to declare that I, Pratiksha Sanjay Rahane, student of master in business administration (prepaid course 2012-13), AVCOE, Sangamner have given original data information to the best of my knowledge in the project report title TO STUDY THE MUTUAL FUND IN RELATION WITH SYESTEMATICE INVESTMENT PLAN AND COMPARING RETURNS IN VARIOUS SECTOR. Under the guidance of our teacher Prof -Neha Shah and that, no part of this information has been use for any other assignment but for the partial fulfillment of the requirement towards the completion of the said course. I have prepared this report independently &I have gathered all the relevant information personally .I have prepared for this partial fulfillment of MBA finance. I also agree in principal not to share vital information with any other person outside the org.I will not submit the project report to any other university.

EXECUTIVE SUMMARY
The mutual fund industry in India was started in 1963 with the formation of Unit Trust of India, at the initiative of the reserve Bank of India and the government of India. The objective then was to attract the small investor and introduce them in market investment. This project is entitled to do this study by KARVY Stock Broking Co. Ltd for Mutual Funds of various companies. KARVY Stock Broking Company was incorporated under the Companies Act, 1956, in 1999 and approved to act as the corporate client for all mutual fund Companies by SEBI. Vision of the company is to be an attaining total competence in services has served as the building block for creating a great financial enterprise, which stands solid on fortresses of financial strength our various companies. The study of Mutual funds proved to be a good eye opener for the student seeking the future in the world of stock market. So the topic selected is To study of mutual fund in relation with systematic investment plan and comparing returns in various sectors. The study, which I purse from the mutual funds gives, a proper direction one could get from the study of this project. Karvy Computershare Private Limited, today, is India's largest Registrar and Share Transfer Agent servicing over 300 corporates and mutual funds and 16 million investors. The investors should invest in mutual fund in long term period of time. At Karvy Commodities, we are focused on taking commodities trading to new dimensions of reliability and profitability. We have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. In India, it gained momentum only in 1980, though it began in the year 1964 with the unit trust of India launching its first fund, the unit scheme 1964.a mutual fund is nothing but a pool of the investors fund. The pool of funds collected is invested in a portfolio of marketable securities.

This is essential for the scientific study & for ensuring that we have all relevant data for making comparison &analysis. Technical speaking, processing implies editing, coding classification & tabulation of collected data so that they are enable to analysis. Mutual fund is upcoming field for investors to invest their money for better returns than any other investment product. Investors should invest in mutual funds as mutual fund has their superiority over other investment product. Company should use the analysis of Systematic Investment Plan as ready reckoner for investors to get through guidanceInvestors have to create more awareness and highlight mutual funds to investors as a new emerging avenue which could benefit them through its differentiating features and benefits.

INDEX
No 1 2 3 4 5 6 7 8 9 10 11 12 13 Contents Introduction Objective Industry Profile Company Profile Research Methodology Conceptual Background Data analysis and interpretation Finding Limitation Suggestion Conclusion Annexure Bibliography Page No.

1. INTRODUCATION
Like most developed and developing countries the mutual fund cult has been catching on in India. There are various reasons for this. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation. And in addition to this a mutual fund brings the benefits of diversification and money management to the individual investor, providing an opportunity for financial success that was once available only to a select few. Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a company that pools the money of many investors -- its shareholders -- to invest in a variety of different securities. Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio -- entitled to any profits when the securities are sold, but subject to any losses in value as well. A mutual fund, by its very nature, is diversified -- its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify. Mutual funds raise money by sellingshares of the fund to the public, much like any other type of company can sell stock in itself to the public. Mutual funds then take the money they receive from the sale of their shares (along with any money made from previousinvestments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equityposition in the fund and, in effect, in each of its underlying securities. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund.

Benefits of mutual funds includediversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require.

While everyone dreams of a luxurious life, very few fulfill them. A luxurious life is generally linked with wealth. So, the question most people would like to know is: How do I create wealth? Or how can I get rich? It's really not that difficult to create wealth. It's just a matter of systematic planning and disciplined approach. Once you have small amounts saved up, then you can start looking into ways to use that money to create more money. Money can multiply through investments in the stock market, real estate, commodities, etc. One avenue which invests in all is mutual funds. Therefore, one of the crucial ways, people can build their core capital is by investing ina mutual fund. Once you have small amounts saved up, then you can start looking into ways to use that money to create more money. Money can multiply through investments in the stock market, real estate, commodities, etc. One avenue which invests in all is mutual funds. Therefore, one of the crucial ways, people can build their core capital is by investing in a mutual fund. KARVY as Mutual Fund investment advisor Investment is the stepping stone to achieving one's financial dreams. Mutual funds offer an opportune way to long-term wealth creation. However, with more and more funds flooding the market, the task of selecting the most suitable scheme gets even more complicated. Mutual Fund Advisory Service at Karvy guides you through this maze and ensures that your investments are backed by our quality research. We, at Karvy help you to reach your goals by offering:

Products of 33 AMCs Research reports (existing funds & NFOs; strategy reports etc.) Customized mutual fund portfolios Portfolio revision (depending on changing market outlook and evolving trends) Access to online consolidated portfolio statement

1. Sets the investor free from four main constraints: a. Convenience and Knowledge: The investor need not go through the tedious task of research and stock selection and need not track the market to manage the portfolio. b. Time: Frees one from spending his precious time to track his portfolio every day. c. Complexity: Frees from the complexity involved in equity and debt markets. 2. Diversification: Investing in mutual funds enable a well-diversified portfolio, with a very small amount of investment. Diversification across various securities lowers the risk associated with investment. 3. Higher risk-adjusted returns: Majority of equity funds have outperformed indices while other avenues like fixed deposits, post-office schemes etc. have delivered lower returns. 4. Professional management: Investors purchase funds because they do not have time or expertise to manage their own portfolio. A mutual fund is relatively an inexpensive way for a small investor to get a full-time manager to create and monitor his portfolio. 5. Low entry barrier: Any investor can invest in mutual funds. He need not open a broking or a d-mat account to invest in mutual funds. Further, investment can be made in mutual funds with an amount as low as Rs. 500. 6. Liquidity: Easy and fast redemption leads to high liquidity. Also, one can enter and exit the fund (open-ended) depending on his discretion. 7. Transparency: The transparency levels are very high in this industry. Investors can view his fund's NAV on a daily basis. Also, majority of the funds disclose their portfolio holdings on a monthly basis. 8. Tax-saving: Mutual funds are exempted from capital gains arising out of portfolio churning. If an investor shifts his holdings, he will have to pay these taxes. Thus, mutual funds are a cost-efficient way of portfolio management. Also, there are ELSS funds (tax saving funds) which help availing the benefit of tax-saving u/s 80C. As compared to other tax saving avenues, they have lowest lock-in period and also offer higher return potential. 9. Innovative schemes to suit unique needs of different investors: There are schemes that offer international diversification to reduce the geographical risk. There are derivative funds which adopt various derivative strategies to gain from the either side movement of the market. Capital protection funds offer a unique feature of capital protection coupled with market linked returns.

OBJECTIVE
1. To study the mutual fund industry in India. 2. To know the trends of small investors towards the Systematic Investment Plan (SIP) 3. To study the comparison of return in different sectors.

3. COMPANY PROFILE
KARVY, is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products like mutual funds, bonds, fixed deposit, Merchant Banking & Corporate Finance, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, placement of equity, IPOs, among others. Karvy has a professional management team and ranks among the best in technology, operations, and more importantly, in research of various industrial segments. Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants Limited and Computershare Limited, Australia. Computershare Limited is world's largest -and only global -- share registry, and a leading financial market services provider to the global securities industry. The joint venture with Computershare, reckoned as the largest registrar in the world, servicing over 60 million shareholder accounts for over 7,000 corporations across eleven countries spread across five continents. Computershare manages more than 70 million shareholder accounts for over 13,000 corporations around the world. Karvy Computershare Private Limited, today, is India's largest Registrar and Share Transfer Agent servicing over 300 corporates and mutual funds and 16 million investors.

VALUES AND VISION

Attaining total competence in services has served as the building block for creating a great financial enterprise, which stands solid on fortresses of financial strength our various companies.

MISSION

Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising , and technology driven organization which will set the highest standards of service and business ethics.

ACHIEVEMENTS
Indias No. 1 Registrar & Securities Transfer Agents Among the top 3 Depository Participants Largest network of Braches & Business Associates ISO 9002 Certified operations by DNV Among top 10 Investment bankers Largest Distributor of Financial Products. Adjudged as one of the top 50 It uses in India by MIS Asia Full Fledged IT driven operations.

ORGANIZATION CHART
Karvy Ltd.

Branch

Franchise

Web Dealer

Sales Executive

Sales Co-coordinator

Account Head

Customer Care

Receptionist

MUTUAL FUND INDUSTRY

SR. NO. FUND NAME 1. AIG Global Investment Group Mutual Fund 2. Benchmark Mutual Fund 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. Bharti AXA Mutual Fund Birla Mutual Fund BOB Mutual Fund Canada Robeco Mutual Fund DBS Chola Mutual Fund Deutsche Mutual Fund DSP Merrill Lynch Mutual Fund Escorts Mutual Fund Fidelity Mutual Fund Fortis Mutual Fund Franklin Templeton Investments HDFC Mutual Fund HSBC Mutual Fund ICICI Prudential Mutual Fund IDFC Mutual Fund ING Mutual Fund JM Financial Mutual Fund JPMorgan Mutual Fund Kodak Mahindra Mutual Fund LIC Mutual Fund Lotus India Mutual Fund Mirae Asset Mutual Fund Morgan Stanley Mutual Fund PRINCIPAL Mutual Fund Quantum Mutual Fund Reliance Mutual Fund Sahara Mutual Fund SBI Mutual Fund Sundaram BNP Paribas Mutual Fund Tata Mutual Fund

4. RESEARCH METHODOLOGY
MEANING OF RESEARCH:
Research is an art of scientific investigation. Research is considered as movement from the known to unknown. It is actually a voyage of discovery. Thus it is original stock of knowledge making for its advancement.

DEFINITIONS OF RESEARCH:
1. Research comprises defining and redefining problems, formulating hypothesis or suggested solutions; collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the formulating hypothesis. -Clifford Woody 2. A careful investigation or inquiry specially through search for new facts in any branch of knowledge

RESEARCH METHODOLOGY
Research Methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research isdone significantly. In it we study the various steps that are generally adopted by are searcher in studying his research problem along with the logic behind it. Research design plays an important role in collecting useful information in cost effective manner. The flow of the research process is decided first hand, so that the conduct of the research does not take an incorrect diversion from its objective. Research comprises defining and redefining problems, formulating hypothesis, collecting, organizing, and evaluating data; Making deduction and reaching conclusion and at last carefully testing the conclusion to determine whether they fit the formulated hypothesis:

RESEARCH PROCESS

DEFINING THE PROBLEM

RESEARCH PLAN

COLLECTION OF DATA

ANALYSIS OF INFORMATION

PRESENTATION OF INFORMATION

The research design is conceptual structure within which research is conducted; it constitutes the blue print for the collection, measurement and analysis data.

TYPES OF DATA: Primary Data:

The first-hand information bearing on any research which has been collected by the researcher may be called primary data.

Secondary Data:
This project undertaken does not need any primary data as the entire analysis is based on the secondary data published by official sources of KARVY Stock Broking Ltd. The Secondary Data on the other hand, are based on second-hand information. The data which have been already been collected, compiled & presented easier by any agency may be used for the purpose of investigated such data may be called Secondary Data. Collecting the information with the help of fact sheets of various mutual funds, business magazines, internet, and reference book. This project is based on secondary data.

5. CONCEPTUAL BACKGROUND MUTUAL FUND An Overview

A MUTUAL FUND IS A POOL OF MONEY THAT IS INVESTED IN VARIOUS SECURITIES AND PROFESSIONALLY MANAGED BY AN INVESTMENT MANAGER

What is a Mutual Fund?

Like most developed and developing countries the mutual fund cult has been catching on in India. There are various reasons for this. Mutual funds make it easy and less costly for investors to satisfy their need for capital growth, income and/or income preservation. And in addition to this a mutual fund brings the benefits of diversification and money management to the individual investor, providing an opportunity for financial success that was once available only to a select few. Understanding Mutual funds is easy as it's such a simple concept: a mutual fund is a company that pools the money of many investors -- its shareholders -- to invest in a variety of different securities. Investments may be in stocks, bonds, money market securities or some combination of these. Those securities are professionally managed on behalf of the shareholders, and each investor holds a pro rata share of the portfolio -- entitled to any profits when the securities are sold, but subject to any losses in value as well. A mutual fund, by its very nature, is diversified -- its assets are invested in many different securities. Beyond that, there are many different types of mutual funds with different objectives and levels of growth potential, furthering your chances to diversify.

MUTUAL FUND CONCEPT

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 realized is 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.

STRUCTURE OF MUTUAL FUND

Sponsor:
A Sponsor is any person who, acting alone or in combination with another body corporate, establishes a MF. It obtains the certification of registration as a MF from SEBI. 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 Broad 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 contributes at least 40% of the net worth of the AMC. It must have a sound financial track record over five years prior to registration and general reputation of fairness and integrity in all its business transaction.

Mutual Fund:
A MF is constituted in the form of a trust under the Indian Trusts Act, 1882. The instrument of trust is executed by the sponsor in favor of trustees and is registered under the Indian Registration Act, 1908. The fund invites investors to contribute their money in the common pool, by the trust subscribing to units issued by various schemes established by the trust. The assets of the trust are held by the trustees for the benefit of unit holders, who are the beneficiaries of the trust. Under the Indian Trust Act, the trust or the fund has no independent legal capacity; it is the trustee(s) who have the legal capacity.

Trustees:
Board of Trustees manages Mutual Fund and the sponsor executed the trust deeds. Mutual Funds raise money through sale of units under one or more schemes for investing in securities. As per SEBI Regulations, 1996 half of the trustees should be independent persons and they should not be employees of AMC. As a trustee of Mutual Fund, he cannot be appointed as a trustee of another Mutual Fund, until and unless he is an independent person or has permission from Mutual Fund where his is a trustee. Trustee has right to appoint custodian and supervise their activities. For e.g. In Reliance Capital Mutual Fund the Trustee is Reliance Capital Trustee Co. Limited.

Asset Management Company:

The AMC, which is appointed by the sponsor or the Trustees and approved by SEBI, act like the investment manager of the Trust. It functions under the supervision of its 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.

Registrar and Transfer Agent:

The Asset Management Company if so authorized by the trust deed appoints the registered and transfer agent to the mutual fund. The registrar processes the application form redemption requests and dispatches account statement to the unit holder. The registrar and transfer agent also handles communications with investors and update investors records.

TYPES OF MUTUAL FUNDS

Mutual Fund schemes may be classified on the basis of its structure and its investment objective.

Types of Funds, as per Structure. 1. Open-ended Fund/ Scheme :An open-ended fund or scheme is one that is available for subscription and repurchase on a continuous basis. These schemes do not have a fixed maturity period. Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis. The key feature of open-end schemes is liquidity.

2. Close-ended Fund/ Scheme :A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for subscription only during a specified period at the time of launch of the scheme. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where the units are listed. In order to provide an exit route to 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 to the investor i.e. either repurchase facility or through listing on stock exchanges. These mutual funds schemes disclose NAV generally on weekly basis. 3.Interval Fund/ Scheme :These schemes combine the features of open-ended and closed-ended schemes. They may be traded on the stock exchange or may be open for sale or redemption during predetermined intervals at NAV based prices.

Types of Funds, as per Investment. 1. Growth / Equity Oriented Schemes :It provides capital appreciation over the medium to long term. These schemes normally invest a major part of their corpus in equities and are a good for investors having a long term outlook seeking appreciation an over period of time.

2. Income / Debt Oriented Schemes :It provides regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures, government securities and money market instruments. Such funds are less risky compared to schemes.

3. Balanced Funds :It provide both growth and regular income such as schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. These are appropriate for investors looking for moderate growth.

4. Money Market or Liquid Funds :It provides easy liquidity, preservation of capital and moderate income. These schemes invest exclusively in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money, government securities, etc. These funds are appropriate for corporate and individual investors as a means to park their surplus funds for short periods.

5. Gilt Funds :Gilt funds invest exclusively in government securities which have no default risk.

Other Schemes: 1. Index Funds :Index Funds republic the portfolio of a particular index such as the BSE Sensitive index, S&P NSE 50 index (Nifty) etc. These schemes invest in the securities in the same weight age comprising of an index. NAVs of such schemes would rise or fall in accordance with the rise or fall in the index, though not exactly by the same percentage due to some factors known as tracking Error in technical terms. Necessary disclosures in this regard are made in the offer document of the mutual fund scheme.

2.Exchange Traded Funds ( ETFs) :ETFs may be described as baskets of securities that are traded, like individual stocks, on an exchange. They are the funds/schemes which invest in the securities of only those sectors or industries as specified in the offer documents. For E.g. Pharmaceuticals, Software, FMCG, etc.

2. Tax Saving Schemes :ELLSFUNDS (Equity Linked Saving Schemes)An ELLS is the mirror image of a diversified equity fund. This means the fund manager will invest in shares of various companies across various industries. What sets it apart is the added tax benefit, something a diversified equity fund does not offer. ELLS Funds have a lock in period of three years. This could be restricting, but the lock in period prevents unnecessary withdrawals and helps money grow over a period of time.

Spreading Risk:
An investor with a limited amount of fund might be able to invest in only one or two stocks / bonds, thus increasing his or her risk. However, a mutual fund will spread its risk by investing a number of sound stocks or bonds. A fund normally invests in companies across a wide range of industries, so the risk is diversified at the same time taking advantage of the position it holds. Also in cases of liquidity crisis where stocks are sold at a distress, mutual funds have the advantage of the redemption option at the NAVs.

Liquidity:
You are free to take your money out of open-ended mutual funds whenever you want, no questions asked. Most open-ended funds mail your redemption proceeds, which are linked to the fund's prevailing NAV (net asset value), within three to five working days of your putting in your request.

Variety:
Mutual funds offer a tremendous variety of schemes. This variety is beneficial in two ways: first, it offers different types of schemes to investors with different needs and risk appetites; secondly, it offers an opportunity to an investor to invest sums across a variety of schemes, both debt and equity. For example, an investor can invest his money in a Growth Fund (equity scheme) and Income Fund (debt scheme) depending on his risk appetite and thus create a balanced portfolio easily or simply just buy a Balanced Scheme.

Flexibility:
Mutual Funds offering multiple schemes allow investors to switch easily between various schemes. This flexibility gives the investor a convenient way to change the mix of his portfolio over time.

Convenience:
An investor can purchase or sell fund units directly from a fund, through a broker or a financial planner. The investor may opt for a Systematic Investment Plan (SIP) or a Systematic Withdrawal Advantage Plan (SWAP). In addition to this an investor receives account statements and portfolios of the schemes.

Tax Benefits:
Any income distributed after March 31, 2002 will be subject to tax in the assessment of all Unit holders. However, as a measure of concession to Unit holders of open-ended equity-oriented funds, income distributions for the year ending March 31, 2003, will be taxed at a concessional rate of 10.5%. In case of Individuals and Hindu Undivided Families a deduction up to Rs. 9,000 from the Total Income will be admissible in respect of income from investments specified in Section 80L, including income from Units of the Mutual Fund. Units of the schemes are not subject to Wealth-Tax and Gift-Tax.

Regulations:
Securities Exchange Board of India (SEBI), the mutual funds regulator has clearly defined rules, which govern mutual funds. These rules relate to the formation, administration and management of mutual funds and also prescribe disclosure and accounting requirements. Such a high level of regulation seeks to protect the interest of investors.

DISADVANTAGES OF MUTUAL FUND A. No Control Over Cost

Since investors do not have a direct control over the monitoring, hence they cannot control the cost.

B.No Trailer made Portfolio

Mutual fund portfolios are created and marketed by AMCs, in which investors invest. They cannot create tailor made portfolio.

Managing a Portfolio of Funds

As the investments in different schemes of various mutual funds increase, it becomes difficult for an individual investor to manage the fund both in terms of cost and complexities.

SYSTEMATIC INVESTMENT PLAN INTRODUCTION

The Systematic Investment Plan (SIP) is a simple and time honored investment strategy for accumulation of wealth in a disciplined manner over long term period. The plan aims at a better future for its investors as an SIP investor gets good rate of returns compared to a one time investor.

WHAT IS SYSTEMATIC INVESTMENT PLAN (SIP)?

A specific amount should be invested for a continuous period at regular intervals under this plan.

SIP is similar to a regular saving scheme like a recurring deposit. It is a method of investing a fixed sum regularly in a mutual fund.

SIP allows the investor to buy units on a given date every month. The investor decides the amount and also the mutual fund scheme.

While the investor's investment remains the same, more number of units can be bought in a declining market and less number of units in a rising market.

The investor automatically participates in the market swings once the option for SIP is made. SIP ensures averaging of rupee cost as consistent investment ensures that average cost

per unit fits in the lower range of average market price. An investor can either give postdated cheques or ECS instruction and the investment will be made regularly in the mutual fund desired for the required amount. SIP generally starts at minimum amounts of Rs.1000/- per month and upper limit for using an ECS is Rs.25000/- per instruction. For instance, if one wishes to invest Rs.1, 00,000/- per month, then they need to do it on four different dates.

SIP INVESTORS

It is easy to become a systematic investor. One need to plan the saving effectively and set aside some amount of money every month for investment purposes in a fund that is ideally a diversified equity fund or balanced fund. Postdated cheques can be given to the fund house. The investor is at liberty to exit from the scheme depending on the market conditions.

BENEFITS OF SYSTEMATIC INVESTMENT PLAN Power of Compounding

The power of compounding underlines the essence of making money work if only invested at an early age. The longer one delays in investing, the greater the financial burden to meet desired goals. Saving a small sum of money regularly at an early age makes money work with greater power of compounding with significant impact on wealth accumulation.

Rupee Cost Averaging

Timing the market consistency is a difficult task. Rupee cost averaging is an automatic market timing mechanism that eliminates the need to time one's investments. Here one need not worry about where share prices or interest are headed as investment of a regular sum is done at regular intervals; with fewer units being bought in a declining market and more units in a rising market. Although SIP does not guarantee profit, it can go a long way in minimizing the effects of investing in volatile markets.

Convenience
SIP can be operated by simply providing postdated cheques with the completed enrolment form or give ECS instructions. The cheques can be banked on the specified dates and the units credited into the investor's account. The SIP facility is available in the Principal Income Fund, Monthly Income Plan, Child Benefit Fund, Balanced Fund, Index Fund, Growth Fund, Equity fund and Tax Savings Fund.

COMPARISON OF DIFFERENT SECTORS

There are different sectors in Mutual Fund. They are 1. Pharma Sector Funds 2. Power Sector Funds 3. Auto Sector Funds 4. FMCG Sector Funds 5. Infotech Sector Funds 6. Banking Sector Funds 7. Infrastructure Sector Funds 8. Media & Entertaintment Sector Funds Project contents following only 4 sectors 1. Pharma Sector Funds (Relaince Pharma Fund, SBI Magnum Sector Umbrella, UTI Growth Sector Fund). 2. Infotech Sector Funds (Tata Life Science & Tech Fund, Franklin Infotech Fund, SBI Magnum Sector Umbrella). 3. FMCG Sector Funds (Birla SunLife Buy India Fund,Franklin FMCG Fund, SBI Magnum Sector Umbrella, ICICI Prudential FMCG). 4. Banking Sector Funds (Reliance Banking, UTI Banking Sector).

6. DATA ANALYSIS AND INTERPRERTATION

The data after collection has to be processed & analyzed in according with the outline laid down for the purpose at the time of developing the research plan. This is essential for the scientific study & for ensuring that we have all relevant data for making comparison &analysis. Technical speaking, processing implies editing, coding classification & tabulation of collected data so that they are enable to analysis.

Analysis:The term analysis refers to the computation of certain measure along with searching for pattern of relationship that existing among data group simply analysis can be defined as the ordering or breaking of the constituent part in order to obtain answers to research question.

Interpretation:After collection & analyzing the data. The researcher has to accomplish the task of drawing inference followed by report writing. This has to be done very carefully, otherwise misleading conclusion may be drawn .Interpretation refers to the task of drawing inferences from the collection, facts after an analytical or experiential study.

SIP FEATURES
Disciplined investing is vital to earning good returns over a longer time frame. Investors are saved the bother of identifying the ideal entry and exit points from volatile markets. SIP options such as equity, debt and balanced schemes offer a range of investment plans. While there is no entry load on SIP, investors face an exit load if the units are redeemed within a stipulated time frame. The success of your SIP hinges on the performance of your selected scheme.

Table of Systematic Investment Plan:If you have invested Rs. 5000 every month and the returns are as below Scheme Name 1 year HDFC Equity Fund Reliance Growth Fund ICICI Pru Dynamic Plan 52788 49337 50024 Periods 3 years 212130 211819 202832 5 years 583042 653281 576194 10 years 3459175 4680248 -

(Source:-valueresearchonline.com)

5000000 4500000 4000000 3500000 3000000 2500000 2000000 1500000 1000000 500000 0 HDFC Equity Fund Reliance Growth ICICI Pru Dynamic Fund Plan 1 year 3 years 5 years 10 years

Returns in Rs.

Scheme Name

Interpretation:If investment returns Rs. 5000 per month than yearly investment is Rs. 60000 but in analysis each fund is not giving i.e HDFC Equity Fund Rs. 52,788, Reliance Growth Fund Rs. 49,337 and ICICI Pru Dynamic Rs. 50,024. But investment returns I 3 years gives positive returns than 1 year investment. So investor should invest in systematic investment plan for a long period of time is the better option.

COMPARISON OF DIFFERENT SECTORS

There are different sectors in Mutual Fund. They are 9. Pharma Sector Funds 10. Power Sector Funds 11. Auto Sector Funds 12. FMCG Sector Funds 13. Infotech Sector Funds

14. Banking Sector Funds 15. Infrastructure Sector Funds 16. Media & Entertaintment Sector Funds Project contents following only 4 sectors 5. Pharma Sector Funds (Relaince Pharma Fund, SBI Magnum Sector Umbrella, UTI Growth Sector Fund). 6. Infotech Sector Funds (Tata Life Science & Tech Fund, Franklin Infotech Fund, SBI Magnum Sector Umbrella). 7. FMCG Sector Funds (Birla SunLife Buy India Fund,Franklin FMCG Fund, SBI Magnum Sector Umbrella, ICICI Prudential FMCG). 8. Banking Sector Funds (Reliance Banking, UTI Banking Sector).

1. PHARMA SECTOR FUNDS

Scheme Name 3 Months 9.95 6.12 16.18 Return in % 6 Months -17.82 -8.58 2.11 1 Year -2.36 -8.58 5.59 Since 3 Years Launch 20.99 24.29 12.32 13.1 17.47 13.93

Reliance Pharma Fund SBI Magnum Sector Umbrella UTI Growth Sector Fund (Source: - www.karvyresearch.com)

30 25 20

Return in %

15 10 5 0 -5 -10 -15 -20 Reliance Pharma SBI Magnum Fund Sector Umbrella UTI Growth Sector Fund

3 Months 6 Months 1 Year 3 Years Since Launch

Scheme Name

Interpretation:The returns for Pharm sector funds for 3 Months were positive but for 6 Months and 1 year returns were less compared to three months and 3 years. The returns for Long term are seems to be positive. The investors should invest in pharm with a view of Long term investment and so I will suggest to investors to be stay invested in pharm sector for minimum 3 years.

1. INFOTECH SECTOR FUNDS

Scheme Name 3 Months Tata Life Sciences & Tech Fund Franklin InfoTech Fund SBI Magnum Sector Umbrella (Source: - www.karvyresearch.com) 6.42 23.23 8.25

Return in % 6 Months -20.19 -2.58 -15.48 1 Year -13.66 -17.7 -22.35 3 Years 18.99 13.95 24.21 Since Inception 19.56 24.42 15.76

Chart Title
30 20 3 Months 10 0 -10 -20 -30 Tata Life Sciences Franklin Infotech & Tech Fund Fund SBI Magnum Sector Umbrella 6 Months 1 Year 3 Years Since Inception

Interpretation:The returns for INFOTECH Sector Funds for 6 Months and 1 year were negative but for 3 Months and 3 year the returns were more compared to 6 months and 1 year. The returns for Short term are seems to be negative. The investors should invest in INFOTECH with a view of Short term investment and so I will suggest to investors to be stay invested in INFOTECH sector for not more than 3 years. Rupee appreciation and weakness of dollar the IT Sectors were performing very badly. Fluctuation in the capital market was responsible for this kind of fluctuation.

1. FMCG SECTOR FUNDS

Scheme Name 3 Months Birla Sun Life Buy India Fund Franklin FMCG Fund -1.8 3.21 Return in % 6 Months -25.12 -7.76 1 Year -3.47 10.53 3 Years 18.92 19.83 Since Inception 12.69 15.64

SBI Magnum Sector Umbrella ICICI Prudential FMCG (Source: - www.karvyresearch.com)

1.47 4.98

-13.82 -8.89

11.43 12.13

29.2 12.77

18.11 8.66

30 20

Returns in %

10 0 -10 -20 -30 Birla SunLife Franklin SBI Magnum Buy India FMCG Fund Sector Fund Umbrella ICICI Prudential FMCG

3 Months 6 Months 1 Year 3 Years Since Inception

Scheme Name

Interpretation:The returns for FMCG sector funds for 6 Months were negative but for 3 Months and 1 year the returns were more compared to 6 months. The returns for Short term are seems to be negative. The investors should invest in FMCG with a view of Long term investment and I will suggest to investors to be stay invested in FMCG sector for more than 1 years.

3.BANKING SECTOR FUNDS

Scheme Name 1 Year -3.27 -15.35

Return in % Since 3 Years Inception 15.73 34.95 11.01 18.83

Reliance Banking UTI Banking Sector

(Source: - www.karvyresearch.com)

40 30

Returns in %

20 10 0 Reliance Banking -10 -20 UTI Banking Sector

1 Year 3 Years Since Inception

Scheme Name

Interpretation:The returns for BANKING Sector Funds for 1 year were negative but for 3 year the returns were more. The returns for Short term are seems to be negative and so I will suggest to investors to be stay invested in BANKING sector for more than 3 year.

7. FINDINGS
1. Mutual fund is upcoming field for investors to invest their money for better returns than any other investment product.

2. Systematic Investment Plan involves disciplined investing which is vital to earning overall a longer period and investors are saved the bother of identifying the ideal entry and exist point from volatile market. 3. The returns of Pharm sector funds for short term as well as long term were consistent. It shows consistent performance with the returns of 16.18% in 3 month by UTI Growth sector fund, 20.99% returns in 3 years and 24.29% returns in since inception by Reliance Pharma Fund. 4. The returns of InfoTech sector funds for short term are seems to be positive. In this sector Franklin InfoTech Fund given highest returns within 3 months which is 23.23%. 5. The returns of FMCG sector funds for long term are seems to be positive. In this sector SBI Magnum Sector Umbrella fund given highest returns of 29.20% within 3 years. 6. From the overall view of since inception the returns in Banking Sector were more as compared to other sectors. In this sector Reliance Banking fund given highest returns of 34.95% in the overall performance. 7. In every sector the returns over 3 years and above time period are more.

8. LIMITATIONS
1. The study is also done in a short span of time i.e. two months, thus being a wide topic it requires more time. 2. The study was related to the mutual fund where the asset management company did not given each & every information of their working procedure. 3. The study was related to mutual fund investment hence other investment cannot be considered for the study. 4. The company does not want to disclose all confidential facts it is the major limitation of the study.

9.SUGGESTIONS
1. Investors should invest in mutual funds as mutual fund has their superiority over other investment product. 2. Company should use the analysis of Systematic Investment Plan as ready reckoner for investors to get through guidance. 3. Analysis of returns in different sectors can be used by investors for better returns over long period of time. 4. The investor should invest in mutual fund with a view of minimum 1 year, because for short term returns are negative. Investors who want more returns in long terms they should invest in Reliance Banking Fund as it is giving 34.95% returns in since inception

10. CONCLUSION
Investors have to create more awareness and highlight mutual funds to investors as a new emerging avenue which could benefit them through its differentiating features and benefits. The investors should invest in mutual fund in long term period of time. The investors who are in young stage of life can invest in mutual fund through Systematic Investment Plan. Which will give then the benefit of Rupee cost averaging and they can earn handsome return. To know the investors need and suggest his/her to invest in a various mutual fund scheme as per his/her requirement.

11. BIBLOGRAHPHY
BOOK RECOMMENDED

AMFI work book compiled by D. C. Anjaria Research Methodology C. R. KOTHARI Fact sheets of various mutual funds

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