EXECUTIVE SUMMARY

In few years Mutual Fund has emerged as a tool for ensuring one‟s financial wellbeing.
Mutual Funds has not only contributed to India‟s growth story but have also helped tap into
the success of Indian Industry. As information and awareness is rising more and more people
are enjoying the benefits of investing in Mutual Funds. Also in Mutual Fund, investment is
done on various ways- major are Lump Sum Investment and Systematic Investment Plan.
This Project covers the topic "A STUDY OF ANALYSIS OF SYSTEMATIC
INVESTMENT PLANS TREND OF BSL MUTUAL FUND IN MUMBAI". This Project
gave me a great learning experience and at the same time it gave me enough scope to
implement my analytical ability. The analysis and advice presented in this Project Report is
based on industry figures and investment practice and preferences of the investors for
investing in Mutual Fund and Trend of Systematic Investment Plan of Birla Sun Life Mutual
Fund. This report will help to know change in trend of SIP in BSL Mutual Fund and
investor‟s preference in SIP selection, their investment duration, their preference towards any
particular Asset Management Company (AMC). This Project as a whole can be divided into
two parts.
The first part gives an insight about Mutual Fund and its various aspects, Company profile,
Objectives of the study, Research Methodology. One can have a brief knowledge about
Mutual Fund, Systematic Investment Plan and its basics through the project.
Second part of project consists of data and its analysis collected thought organization and
survey done on 100 people. The data collected has been well organized and presented. I hope
the research finding and conclusion will be of use.
One of the major reasons behind changing trend of Systematic investment plan is
„Awareness‟. Also, Birla Sun Life Mutual Fund (BSLMF), announced the launch of ‘Sabse
Important Plan’, a goal-based investment campaign to drive awareness, and preference for
Systematic Investment Plan (SIP) among retail investors.

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1.1 INTRODUCTION
 HISTORY OF MUTUAL FUNDS IN INDIA
A strong financial market with broad participation is essential for a developed economy. With
this broad objective India‟s first mutual fund was establishment in 1963, namely, Unit Trust
of India (UTI), at the initiative of the Government of India and Reserve Bank of India „with a
view to encouraging saving and investment and participation in the income, profits and gains
accruing to the Corporation from the acquisition, holding, management and disposal of
securities‟.
In the last few years the MF Industry has grown significantly. The history of Mutual Funds in
India can be broadly divided into five distinct phases as follows:
 FIRST PHASE- 1964-1987
The Mutual Fund industry in India started in 1963 with formation of UTI in 1963 by an Act
of Parliament and functioned under the Regulatory and administrative control of the Reserve
Bank of India (RBI). In 1978, UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. Unit Scheme 1964 (US ‟64) was the first scheme launched by UTI. At the end
of 1988, UTI had ₹ 6,700 crores of Assets Under Management (AUM).
 SECOND PHASE- 1987-1993 (ENTRY OF PUBLIC SECTOR MUTUAL
FUND)
The year 1987 marked the entry of public sector mutual funds set up by Public Sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first „non-UTI‟ mutual fund established in June 1987,
followed by Canbank Mutual Fund (Dec. 1987), Punjab National Bank Mutual Fund (Aug.
1989), Indian Bank Mutual Fund (Nov 1989), Bank of India (Jun 1990), Bank of Baroda
Mutual Fund (Oct. 1992). LIC established its mutual fund in June 1989, while GIC had set up
its mutual fund in December 1990. At the end of 1993, the MF industry had assets under
management of ₹47,004 crores.
 THIRD PHASE- 1993-2003 (ENTRY OF PRIVATE SECTOR MUTUAL
FUND)
The Indian securities market gained greater importance with the establishment of SEBI in
April 1992 to protect the interests of the investors in securities market and to promote the
development of, and to regulate, the securities market.
In the year 1993, the first set of SEBI Mutual Fund Regulations came into being for all
mutual funds, except UTI. The erstwhile Kothari Pioneer (now merged with Franklin
Templeton MF) was the first private sector MF registered in July 1993. With the entry of

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private sector funds in 1993, a new era began in the Indian MF industry, giving the Indian
investors a wider choice of MF products. The initial SEBI MF Regulations were revised and
replaced in 1996 with a comprehensive set of regulations, viz., SEBI (Mutual Fund)
Regulations, 1996 which is currently applicable.
The number of MFs increased over the years, with many foreign sponsors setting up mutual
funds in India. Also the MF industry witnessed several mergers and acquisitions during this
phase. As at the end of January 2003, there were 33 MFs with total AUM of ₹1, 21,805
crores, out of which UTI alone had AUM of ₹44,541 crores.
 FOURTH PHASE- 2003-APRIL2014
In February 2003, following the repeal of the Unit Trust of India Act 1963, UTI was
bifurcated into two separate entities, viz., the Specified Undertaking of the Unit Trust of India
(SUUTI) and UTI Mutual Fund which functions under the SEBI MF Regulations. With the
bifurcation of the erstwhile UTI and several mergers taking place among different private
sector funds, the MF industry entered its fourth phase of consolidation.
Following the global melt-down in the year 2009, securities markets all over the world had
tanked and so was the case in India. Most investors who had entered the capital market
during the peak, had lost money and their faith in MF products was shaken greatly. The
abolition of Entry Load by SEBI, coupled with the after-effects of the global financial crisis,
deepened the adverse impact on the Indian MF Industry, which struggled to recover and
remodel itself for over two years, in an attempt to maintain its economic viability which is
evident from the sluggish growth in MF Industry AUM between 2010 to 2013.
 FIFTH PHASE- SINCE MAY 2014
Since May 2014, the Industry has witnessed steady inflows and increase in the AUM as well
as the number of investor folios (accounts).
The Industry‟s AUM crossed the milestone of ₹10 Trillion (₹10 Lakh Crore) for the first time
as on 31st May 2014 and in a short span of two years the AUM size has crossed ₹15 lakh
crore in July 2016.
The overall size of the Indian MF Industry has grown from ₹ 3.26 trillion as on 31st March
2007 to ₹ 15.63 trillion as on 31st August 2016, the highest AUM ever and a five-fold
increase in a span of less than 10 years.
In fact, the MF Industry has more doubled its AUM in the last 4 years from ₹ 5.87 trillion as
on 31st March, 2012 to ₹ 12.33 trillion as on 31st March, 2016 and further grown to ₹ 15.63
trillion as on 31st August 2016.
The no. of investor folios has gone up from 3.95 crore folios as on 31-03-2014 to 4.98 crore
as on 31-08-2016.

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1.2 OBJECTIVES OF STUDY:
1. To analyze the monthly change in market share of number of SIPs sold of BSL AMC
Ltd. with respect to industry (Mumbai) for 2 years.
2. To study the monthly change in market share of amount of SIP of BSL AMC Ltd.
with respect to industry (Mumbai) for 2 years.
3. To study investors investment pattern in Systematic Investment Plan.
4. To know the awareness and Knowledge of Systematic Investment Plan among
investors.
1.3 SCOPE OF STUDY:
This study would help to understand how and why Systematic Investment Plans tend is
changing. This study throws the light on understanding perception of investors about SIP.
With the help of this study BSL AMC can strategize future plan to promote SIP to their
consumer.
It provides better opportunities‟ for high income. Investment in SIP is on monthly basis,
which is quite easy in comparison to other investment avenues and it is also suitable for
middle class and lower class people because no need to invest large amount at a single time.
They can invest at the time when they received their salary in the beginning of month.
Therefore, with the little investment, they can take advantages of market fluctuations‟.
1.4 LIMITATIONS OF STUDY:
1. It was not possible to analyze the trend for large period because data which is
collected from Company are only of twenty seven months.
2. Trend cannot show in numbers because of numbers are confidential.
3. Few respondents were hesitant to reveal information about their finances because of
income tax queries.

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2.1 INTRODUCTION OF THE COMPANY

Dice Stands for one single entity with various abilities

Red Color Known for its vitality and zest. It displays warmth and enlightens your
mood the moment you look at it. Red represents power and valor. It is
dramatic in mood, emotional, active and ignites passion and desire.
Green Color Green represents Tranquility, Hope, and Freshness. In plants and
vegetation, green indicates good and healthy earth energies.
Blue Color Blue is seen as trustworthy, dependable and committed. It is also said to
inspire respect.
Acumen Business says is keenness and quickness in understanding and dealing with a
Consultancy business situation in a manner that is likely to lead to a good outcome.

ACUMEN BUSINESS CONSULTANCY PVT. LTD. As the name says is keenness and
quickness in understanding and dealing with a business situation in a manner that is likely to
lead to a good outcome. We at Acumen Business consultancy, are passionate about creating
value in whatever we do. For us, Acumen is not just a concept but a philosophy, we live
continuously. We do not undertake an assignment until we see a clear value addition through
engagement, because, we value customers' resources - both time and money.
Our business is to make other businesses more valuable, efficient and effective. We attempt
to accomplish this transformation by adding perspectives to the management team and co-
designing business solutions through engaged process of Consulting by a team of
professional experts who have vast experience in Banking, Finance, Taxation, Marketing,
Business Management, etc. and who provide specialized professional knowledge &
competence to fulfil all your needs.
We add value through intellectual inputs backed by multi-dimensional perspective,
diversified knowledge and experience. Taxation & wealth managements activity is another
dimension of our business. We confess that we are not the masters or gurus. If we claim that,
we would surely be lying. However, we have certain competencies and, in addition, have

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 access to wide network of complimenting competencies to work with our customers and
architect business solutions.
To conclude, we are a bunch of energetic people, who are contemporary, innovative, positive,
constructive, forward looking and enterprising with deep understanding and knowledge of
our respective domains. Above all, we are passionate about creating acumen around. Hence,
Acumen Business Consultancy Private Limited.
2.2 Vision Statement
To become the most respected, trusted and transparent premiere organization providing all
types of services and solutions to create service centers all across the country that provides
quality service facilities which will ensure :
 Customer satisfaction and preference
 Continues profitable growth
 Fulfilling social obligations
Through continuous improvements of processes focused on quality, productivity and cost
effectiveness and by creating an environment which encourages team spirit and where each
individual's contribution is recognized, valued and required. Each individual enjoys and
excels in work when every individual gives his best to achieve the shared vision.
2.3 Acumen Business Consultancy Office

MUMBAI OFFICE SURAT OFFICE

Address 201, Gitanjali Arcade, Address A-501, President Plaza,

Nehru Road, Vile Parle (E), Near RTO Office, Ring
Mumbai - 400 057. Road,
Surat 395 002 Gujarat.
Tel No +91-22-2616 3235 / 2610 0763
Tel No 0261-2474954/ 2474714
Fax No +91-22-2617 8679
Email info@acumen4u.in

2.4 Board Advisory

1. Mr. Pradeep Singhi is the promoter of the Firm, Pradeep Singhi & Associates. He
has diversified business experience and is responsible for the overall management of
the firms across Mumbai and Surat, under his leadership and Guidance Company had
grown rapidly into diversified range of services, ranging from Taxation, Audits,
Indirect Taxes, Project Financing to Research & Consultancy.
2. Mr. Singhi served as a Chief Patron for South Gujarat Chamber of Commerce of
Industry. He‟s also a Co-Chairman of Income Tax Working Committee, for SGCCI.

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 He‟s been visiting faculty for various seminars and has contributed significantly
through his articles in newspapers and journals. He has been an author of various
books published on Income tax.
3. Mr. Hitesh Shah, aged 39 years, his profession at the tender age of 18 Yrs. Went on
to become the youngest Chairman‟s club member in 1993-94. Experience of nearly 21
years in Insurance Advisory &Mutual Fund. 24 / 7 Service to about 6000
policyholders and more than 30000 policies are serviced by a well trained and
qualified team of about 50 well qualified and experienced people including C.A,
C.F.P‟s and M.B.A‟s
4. Mr. Kapil Laddha, aged 32 years, is a Fellow member of the Institute of Chartered
Accountants of India. He has a three year experience of working at senior positions in
Steel, Textile and other manufacturing Industrial units responsible for all the
commercial activity of the organization. He has worked with the Indusind Bank for
two years in assets & liabilities segments as a Branch Manager & Credit Manager,
Before he joined ABCPL He was engaged in projected financial consultancy in the
state of Rajasthan, Gujarat, Madhya Pradesh and Maharashtra.
2.5 SERVICES PROVIDED
1. Private Wealth Management
A process based approach for accumulating, protecting and growing our Private Clients‟
wealth. Some of the ingredients of this process are:
 Financial Diagnostic (define aspirational needs, determine risk appetite and strategic
asset allocation)
The most critical decision behind investment success is arrived at with an in house scientific
process to quantify the aspirational needs / requirement of the client family.
 Sourcing Best Fund Managers & Investment Ideas
The second most critical decision behind investment success after determining the risk
appetite of a client which is arrived at on the basis of a scientific methodology is a
comprehensive manager selection process designed in-house. As an Independent Wealth
Management Firm we our able to source the best investment managers and ideas for our
private clients.
 Execution & Investment Performance Monitoring
Once the investment mandates and benchmarks have been defined, this is followed
thoroughly and tactical asset allocation is complied with. A robust reporting system helps us
track performance based on the state of the art and accurate performance measurement

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 techniques. This allows a client to compare the performance of their investments in a uniform
manner.
 Risk Management
Based on proprietary quantitative models developed in-house, we are able to reduce the risk
in our client portfolio thereby, optimizing the return per unit of risk taken by our Private
Clients.
2. Wealth Protection
A case study approach to assess and advice Private Clients on their need to protect their
existing & future assets by way of structured insurance. As an independent Wealth
Management Firm we are able to source the best protection solutions for our Private Clients.
3. Family Office
Dedicated to providing more than „Wealth Management‟ Services, a Family Office aims to
preserve and enhance the wealth of the clients for future generations. This is done through a
combination of scientifically proven mathematical models providing for personal aspirations,
a systematic transfer of wealth for the future generations, which our Private Clients use to
consolidate the family‟s private wealth under a professional umbrella. Besides the practice
modules described above, it covers anything that a client family may require from its own
office. Some of them are :
 Private Wealth Management
 Asset Reporting
 Estate Planning
 Wealth Protection
 Alternate Asset Classes
 International Investment
 Administrative & Tax services
4. Projects Managements & financial advisory Services
Project Management and Financial Advisory services go well beyond the project initiation
stage and support the entire financial management of our clients. The following services are
broadly covered :
 Identifying projects and business opportunities
 Conducting viability studies, business and market assessments
 Identifying, evaluating, selecting and sourcing technology options
 Conducting detailed project/promoter appraisals, ensuring due diligence
 Determining optimum project funding requirement and capital structuring
 Assessing Suitability of various funding alternatives based on project cash flow

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 Preparing comprehensive project reports and business plans
 Arranging rupee/foreign currency loan, external commercial borrowings, mezzanine funding,
etc.
 Arranging fund-based, non-fund based working capital funding from banks
 Coordinating loan applications, approvals, documentation and disbursement.
5. Private Equity Placements
Services in private equity is directed towards raising private equity and venture capital for the
clients‟ from appropriate funding agencies. Acumen Business Consultancy help ensure
proper structuring and presentation of the deal, establish viability of business model,
approach and negotiate with private equity funds to obtain the best-possible deal.
Our broad range of Private Equity Placement Services include :
 Conducting critical appraisals of proposals and assessment of business potential
 Advising on the overall viability of business model
 Ensuring proper capital structuring and business strategy
 Preparing executive summaries, presentation and detailed business plans
 Assisting in arriving at optimum business valuation
 Identifying and negotiating with Private Equity Funds, strategic investors, etc
 Coordinating information requests
 Negotiating and deal finalizing
 Assisting in term sheet finalization and other post-deal activities
 Hand holding the client to through the entire process and concluding the fund-raising while
protecting long-term interest
 Monitoring post-investment scenario to ensure growth.
6. M&A Advisory
As India takes its seat at the global M&A table, numerous opportunities exist to find value in
one of the world‟s largest and fastest-expanding economies. Acumen Business Consultancy
pride on offering innovative M&A Advisory solutions – including the identification of
opportunities and counterparties, both strategic and financial; assistance with the
memorandum of understanding / letter of intent and consequent transaction documents; and
project management of the entire transaction process.
Acumen Business Consultancy offer deep transaction expertise and specialist knowledge in a
variety of key industry sectors specialization – combined with an extensive network of
relationships among funds and private equity players. Our services include :
 Merger and demerger strategy
 Business acquisition and divestment advisory

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3.1 MEANING
This chapter describes the research approaches and research design choices made in the
present study. Discussion on sampling procedures used, methods used for data collection,
research instrument and operationalization of research variables are presented. Further,
procedures used for testing the research instrument reliability and validity are discussed. At
each stage, rationale for each action is discussed explaining the reason behind those actions
and making specific design choices.
Research Design
This research is primarily descriptive because a detailed inspection of changing trends of SIP
in mutual fund industry and its respective investment pattern has been carried out.
3.2 DATA COLLECTION
Type of Data
1. Primary
The data collected for this research study is primary in nature because it has been collected
through questionnaire and company records.
2. Secondary.
The data for this research is collected online on the internet, censuses, information collected
by government departments, organizational records, etc. Thus, the introduction and review of
literature can be classified as secondary data.
Sampling Method: Non-Probability Sampling Method - Convenience Sampling
Sample size: 100
Data Analysis tools: MS Excel, Pie Charts and Bar Graphs.

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4.1 CONCEPT OF MUTUAL FUND
Mutual fund is a vehicle to mobilize money from investors, to invest in different markets and
securities, in line with the investment objectives agreed upon, between the mutual fund and
the investors. In other words, through investment in a mutual fund, an investor can get access
to markets that may otherwise be unavailable to them and avail of the professional fund
management services offered by an asset management company.
4.1.1 ROLE OF MUTUAL FUNDS
Mutual funds perform different roles for the different constituents that participate in it.
Their primary role is to assist investors in earning an income or building their wealth, by
participating in the opportunities available in various securities and markets. It is possible for
mutual funds to structure a scheme for different kinds of investment objectives. Thus, the
mutual fund structure, through its various schemes, makes it possible to tap a large corpus of
money from investors with diverse goals/objectives.
Therefore, mutual funds offer different kinds of schemes to cater to the need of diverse
investors. In the industry, the words „fund‟ and „scheme‟ are used inter-changeably. Various
categories of schemes are called “funds”. In order to ensure consistency with what is
experienced in the market, this workbook goes by the industry practice. However, wherever a
difference is required to be drawn, the scheme offering entity is referred to as “mutual fund”
or “the fund”.
The money that is raised from investors, ultimately benefits governments, companies and
other entities, directly or indirectly, to raise money for investing in various projects or paying
for various expenses.
The projects that are facilitated through such financing, offer employment to people; the
income they earn helps the employees buy goods and services offered by other companies,
thus supporting projects of these goods and services companies. Thus, overall economic
development is promoted.
As a large investor, the mutual funds can keep a check on the operations of the investee
company, and their corporate governance and ethical standards.
The mutual fund industry itself, offers livelihood to a large number of employees of mutual
funds, distributors, registrars and various other service providers.
Higher employment, income and output in the economy boosts the revenue collection of the
government through taxes and other means. When these are spent prudently, it promotes
further economic development and nation building.

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Mutual funds can also act as a market stabilizer, in countering large inflows or outflows from
foreign investors. Mutual funds are therefore viewed as a key participant in the capital market
of any economy.
4.1.2 MUTUAL FUND STRUCTURE

Sponsors
The application to SEBI for registration of a mutual fund is made by the sponsor/s.
Thereafter, the sponsor invests in the capital of the AMC. Sponsors are the main people
behind the mutual fund operation.
Trustee
The trustees have a critical role in ensuring that the mutual fund complies with all the
regulations, and protects the interests of the unit-holders.

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Asset Management Company (AMC)
Day to day operations of asset management is handled by the AMC. The sponsor or, the
trustees if so authorized by the trust deed, shall appoint the AMC with the approval of SEBI.
The AMC needs to have a minimum net worth of Rs. 50 crore.
Custodian
The custodian has custody of the assets of the fund. As part of this role, the custodian needs
to accept and give delivery of securities for the purchase and sale transactions of the various
schemes of the fund. Thus, the custodian settles all the transactions on behalf of the mutual
fund schemes.
RTA
The RTA maintains investor records. Their offices in various centre serve as Investor Service
Centre (ISCs), which perform a useful role in handling the documentation of investors. The
functions of the RTA includes processing of purchase and redemption transactions of the
investor and dealing with the financial transactions of receiving funds for purchases and
making payments for redemptions, updating the unit capital of the scheme to reflect these
transactions, updating the information in the individual records of the investor, called folios,
keeping the investor updated about the status of their investment account and information
related to the investment.
The appointment of RTA is done by the AMC. It is not compulsory to appoint a RTA. The
AMC can choose to handle this activity in-house. All RTAs need to register with SEBI.
4.2 TYPES OF FUNDS

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1. Open-ended Funds
Open-ended funds are open for investors to enter or exit at any time, even after the NFO.
Unit-holders may exit from the scheme, wholly or partly, the scheme continues operations
with the remaining investors. The scheme does not have any kind of time frame in which it is
to be closed. The on-going entry and exit of investors implies that the unit capital in an open-
ended fund would keep changing on a regular basis.
2. Close-ended Funds
Close-ended funds have a fixed maturity. Investors can buy units of a close-ended scheme,
from the fund, only during its NFO. The fund makes arrangements for the units to be traded,
post-NFO in a stock exchange. This is done through listing of the scheme in a stock
exchange. Such listing is compulsory for close-ended schemes. Therefore, after the NFO,
investors who want to buy units will have to find a seller for those units in the stock
exchange. Similarly, investors who want to sell units will have to find a buyer for those
units in the stock exchange.
3.Internal Funds
Interval funds combine features of both open-ended and close-ended schemes. They are
largely close-ended, but become open-ended at pre-specified intervals. For instance, an
interval scheme might become open-ended between January 1 to 15, and July 1 to 15, each
year.
4. Debt, Equity and Hybrid Funds
The investment objective of such funds is to seek capital appreciation through investment in
these growth assets. Such schemes are called equity schemes.
Schemes with an investment objective that limits them to investments in debt securities such
as Treasury Bills, Government Securities, Bonds and Debentures are called debt funds.
Hybrid funds have an investment charter that provides for investment in both debt and equity.
Some of them invest in gold along with either debt or equity or both.
Types of Debt Fund
 Gilt Funds invest in only treasury bills and government securities, which do not have a
credit risk. There is no risk of default and liquidity is considerably higher in case of
government securities.
 Corporate bond Funds invest in debt securities issued by companies, including psus.
There is a credit risk associated with the issuer that is denoted by the credit rating
assigned to the security.
 Liquid Schemes or money market schemes are a variant of debt schemes that invest
only in short term debt securities. They can invest in debt securities of upto 91 days

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 maturity. However, securities in the portfolio having maturity of more than 60-days need
to be valued at market prices [“marked to market” (MTM)].
 Short term debt Schemes invest in securities with short tenors that have low interest
rate risk of significant changes in the value of the securities. Ultra-short term debt funds,
short-term debt funds, short-term gilt funds are some of the funds in this category.
 Long-term debt Schemes such as Gilt funds and Income funds invest in longer-term
securities issued by the government and other corporate issuers.
 Floating rate Funds invest largely in floating rate debt securities i.e. Debt securities
where the interest rate payable by the issuer changes in line with the market.
Types of Equity Funds
 Diversified equity Fund is a category of funds that invest in a diverse mix of securities
that cut across sectors and market capitalization.
 Large- cap Funds invest in stocks of large, liquid blue-chip companies with stable
performance and returns.
 Mid-cap Funds invest in mid-cap companies that have the potential for faster growth
and higher returns.
 Small-cap Funds invest in companies with small market capitalisation with intent of
benefitting from the higher gains in the price of stocks. The risks are also higher.
 Sector Funds invest in only a specific sector. For example, a banking sector fund will
invest in only shares of banking companies.
 Thematic Funds invest in line with an investment theme. For example, an infrastructure
thematic fund might invest in shares of companies that are into infrastructure
construction, infrastructure toll-collection, cement, steel, telecom, power etc.
 Equity Linked Savings Schemes (ELSS) are diversified equity funds that offer tax
benefits to investors under section 80 C of the Income Tax Act up to an investment limit
of Rs. 150,000 a year.
Types of hybrid Fund
 Debt-oriented Hybrid Funds invest primarily in debt with a small allocation to equity.
The equity allocation can range from 5% to 30% and is stated in the offer document.
 Monthly Income Plan is a type of debt-oriented hybrid fund that seeks to declare a
dividend every month. There is no guarantee that a dividend will be paid each month.
 Equity-oriented Hybrid Funds invest primarily in equity, with a portion of the
portfolio invested in debt to bring stability to the returns. A very popular category
among the equity-oriented hybrid funds is the Balanced Fund.

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 Arbitrage Funds take opposite positions in different markets / securities, such that the
risk is neutralized, but a return is earned.
4.3 OPTIONS AVAILABLE TO INVESTORS
Each plan of every mutual fund has three options – Growth, Dividend and dividend
reinvestment. Separate NAV are calculated for each scheme.
 Dividend Option
Under the dividend plan dividend are usually declared on quarterly or annual basis.
Mutual fund reserves the right to change the frequency of dividend declared.
 Dividend reinvestment option
Instead of remittances of units through pay-outs, Units holder may choose to invest the
entire dividend in additional units of the scheme at NAV related prices of the next
working day after the record date. No sales or entry load is levied on dividend reinvest.
 Growth Option
Under this, plan returns accrue to the investor in the form of capital appreciation as
reflected in the NAV. The scheme will not declare the dividend under the Growth plan
and investors who opt for this plan will not receive any income from the scheme. Instead
of income earned on their units will remain invested within the scheme and will be
reflected in the NAV.
4.4 RISK RETURN HIERARCHY OF DIFFERENT FUNDS

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4.5 TYPES OF INVESTMENT IN MUTUAL FUND

1. Lump Sum Investment

A lump sum amount is defined as a single complete sum of money. A lump sum investment
is of the entire amount at one go. For example, if an investor is willing to invest the entire
amount available with him in a mutual fund, it will refer to as lump sum mutual fund
investment. Usually lump sum investments are undertaken by big players and investors, in
stocks especially those related to assets that are likely to appreciate in the long term, making
the investment profitable except in cases of high volatility.
Lump-Sum Investor

Year Unit Price (Rs.) Investment Unit Purchased

1 50 12000 240
2 60
3 75
4 90
5 105
6 115
7 130
8 150
9 175
10 200
Total Investment (Rs.) 12000
Total Unit Purchased 240
Value after 10 years 48000

CAGR 30%

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 2. Systematic Investment Plan

Systematic Investment Plan (SIP) is a financial planning tool that helps you to create wealth,
by investing small sums of money every month, over a period of time. A Systematic
Investment Plan (SIP) is a vehicle offered by mutual funds to help investors invest regularly
in a disciplined manner.
SIP or systematic investment planning is method through which you can invest in mutual
funds through small and periodic instalments. Though an SIP can be initiated on any day of
the month, we suggest you to consider 12th and 25th of every month for setting aside money
for investing. This will ensure that you save some money on 12th after paying all your
essential bills and the rest on 25th after meeting most of your monthly expenses! What's
more, the plan comes with the flexibility to invest any amount starting with as little as Rs.
1000. Whether you choose to save during the beginning of the month or towards the end, the
important part is to remind yourself to save, just the way you keep reminders for other
payments.
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.

18
HOW DOES IT WORK?
A SIP is a flexible and easy investment plan. Your money is auto-debited from your bank
account and invested into a specific mutual fund scheme. You are allocated certain number of
units based on the on-going market rate (called NAV or net asset value) for the day.
Every time you invest money, additional units of the scheme are purchased at the market rate
and added to your account. Hence, units are bought at different rates and investors benefit
from Rupee-Cost Averaging and the Power of Compounding.
Suppose an investor would like to invest Rs.1000 under the Systematic Investment Plan on
monthly basis.
Period Invested Period(Rs.) NAV (Rs. Per unit) Unit Allocated

April 1000 10 100

May 1000 10.2 98.04
June 1000 9.5 105.26
July 1000 10.3 97.09
August 1000 11.5 86.96
September 1000 10.7 93.46
October 1000 10.1 99.01
November 1000 9.3 107.53
December 1000 9.8 102.04
January 1000 10.5 95.24
February 1000 11 90.91
March 1000 12 83.33
Total 12000 1158.86

19
 o BENEFITS OF SIP

Habit of Saving
Apart from this Systematic Investment plans are a simple means to save money and what is
an initially low investment over time would add to a large sum later on in life.
Risk Reduction
Given that a systematic investment plan is spread over a long period of time, one catches all
periods of the stock market, the ups and more importantly the downturns. In downturns, when
fear catches most investors, SIP instalments continue ensuring the investors buys “low”.
Affordability
SIPs are a very affordable option for the masses to start savings since the minimum amount
required for each instalment (that too monthly!) can be as low as INR 500. Some Mutual
Fund companies even offer something called a “Micro SIP” where the ticket size is as low as
INR 100.
Rupee Cost Averaging
The biggest benefit that a systematic investment plan offers is Rupee Cost Averaging
which helps an individual to average out the cost of an asset purchase. While making a
lump sum investment in a mutual fund a certain number of units are purchased by the
investor all at once, in the case of a SIP the purchase of units is done over a long period
and these are spread out equally over monthly intervals (usually). Due to the investment
being spread out over time, the investment is made into the stock market at different
price points giving the investor the benefit of averaging cost, hence the term rupee cost
averaging.

20
 Rupee Cost Averaging

Lump-sum Investor SIP Investor

Month Unit Price(Rs.) Investment(Rs.) Unit Investment Unit
Purchased (Rs.) Purchased
1 50 12000 240 1000 20
2 47 1000 21
3 45 1000 22
4 44 1000 23
5 46 1000 22
6 48 1000 21
7 49 1000 20
8 50 1000 20
9 51 1000 20
10 50 1000 20
11 52 1000 19
12 53 1000 19
Total Investment (Rs.) 12000 12000
Total Unit Purchased 240 247
Average Unit Price (Rs.) 50 49
Value After 12 Months (Rs.) 12720 13086
Power over Time
Helps create wealth: The earlier one starts regular savings, the easier it is for wealth creation.
The graph below shows the impact of starting at various stages in life. `1000 was invested on
a monthly basis till the retirement age of 60 years. The rate of return on investment was
assumed at 10% p.a. It can be seen that even a five-year delay can make a significant
reduction in overall creation of wealth.

Power of Compounding
Systematic Investment Plans also offer the benefit of the power of compounding. Simple
interest is when you gain interest on only the principal. In the case of compound interest, the
interest amount is added to the principal, and interest is calculated on the new principal.

21
 1. Number of SIP’s sold: from April 2015 to 23rd June 2017

Market Share of number of SIP‟s sold by Birla

INTERPRETATION
Above chart shows the market share of number of SIP‟s sold by Birla Sun Life Mutual fund.
The data is analysed from April 2015 to 23rd June 2017 on monthly basis. As we see here,
graph is showing upward trend with gradually increasing in market share month-on-month. In
April 2015 market share was 7% which reached to 10.5% in March 2016, which is 34%
increase in one year. Same as in June 2017 market share was 14.2%, which is 34% increase
in one year.
Hence, it is good sign for Birla Sun Life Mutual fund that month on month investors are
investing in SIP with Birla as overall increase in market share is 51% from April 2015 to
June 2017. It shows that more people are investing in Birla Sun Life Mutual fund through
SIP.

22
2. Amount of SIP’s sold: from April 2015 to 23rd June 2017

Market Share of Amount of SIP‟s sold by Birla

INTERPRETATION
Above chart shows the market share of amount of SIP‟s sold by Birla Sun Life Mutual fund.
Here month-on-month analysis is done from April 2015 to June 2017. Above graph is
showing upward trend with gradually increasing in market share. As we see, in April 2015
market share of amount invested in SIPs with Birla Sun Life Mutual fund was 8%. After one
year in April 2016, it was 11% means 25% hike in one share. And in June 2017, market share
reached at 12% which 31% hike from April 2015.
It is very good performance in terms of amount that investors are investing more and more in
SIP with Birla Sun Life Mutual Fund as Birla build trust in minds of investors.

23
Q1. Where do you invest your money?
Table No. 1
Investment Avenues Percentage

Post Office 14%

Bank 28%
Stock Market 23%
LIC 28%
Gold 9%
Total 100%

Graph No. 1

INTERPRETATION
As given in the above figure we can see that 23% investors does their investment in Stock
Market, 28% of the investors does their investment in LIC, wherein 14% and 9% investor
prefer Post office and gold as their investment avenues, but most of the investors prefer their
investment in banks because they feel that there is no risk in the investment in banks.
Investment in the stock market is increasing day by day because of changing trends in the
stock market.

24
Q2. Are you aware about Mutual Fund?
Table No. 2
Particular No of Respondents Percentage
Yes 92 92%
No 8 8%
Total 100 100%

Graph No. 2

INTERPRETATION
As shown in the above figure 92% of the investors told that they are aware of Mutual Fund
which is a good indicator that it is result of awareness created by Association of Mutual
Funds of India. While 8% investors still do not aware of Mutual Fund, so it is necessary to
create awareness among the people about the Investment in Mutual Funds and its benefits to
the society.

25
Q3. Have you ever invested in Mutual fund?
Table No. 3
Particulars No. of Respondents Percentage
Yes 81 81%
No 19 19%
Total 100 100%

Graph No.3

INTERPRETATION
As it can observed from the above figure, many of the investor invests in Mutual Fund which
is 81% of the total investors taken for this study. While 19% investors still do not invest in
Mutual Fund, because they does not feel safe in investing their money in the mutual funds.
This is very good ratio that 81 investor invest out of 100 investors who are aware about
Mutual Fund.

26
Q4. If No, What is (are) the reason?
Table No. 4
Particular No of Respondents Percentage
Never thought about it 1 10%
Do not have enough 2 10%
Savings 1 10%
Risky 7 35%
Lack of knowledge 9 45%
Total 19 100%

Graph No. 4

INTERPRETATION
From the above figure we can observe that 45% investors say that they have very less
knowledge about Mutual Fund and their benefits. Whereas 35% investors say that it‟s very
risky to invest in Mutual Fund and believe that there is no safety for their investment and
10% investors say they don‟t have enough savings i.e low income to invest in Mutual Fund
and 10% of the respondents said that they never thought about investing in Mutual Funds.

27
Q5. If yes, which company / companies?
Table No. 5
Particular No of Respondents Percentage
Reliance Mutual Fund 15 15%
Birla Sun Life Mutual Fund 17 17%
LIC Mutual Fund 13 13%
ICICI Mutual Fund 6 6%
UTI Mutual Fund 9 9%
HDFC Mutual Fund 23 23%
SBI Mutual Fund 8 8%
Others 9 9%
Total 100 100%

Graph No. 5

INTERPRETATION
As given in the above figure we can see that highest investment i.e 23%, of investors have
invested in HDFC Mutual fund, 17% of the respondents invested in Birla Sun Life Mutual
Funds, 15% have invested in UTI Mutual Funds, 13% and 9% of the respondents have
invested in LIC and SBI Mutual Funds, 8% have invested in Reliance Mutual funds and
remaining 9% in other Mutual Funds.

28
Q6. If Birla Sun Life Mutual Fund, what is (are) the reasons?
Table No. 6
Particular No of Respondents Percentage
Brand Name 27 27%
Varieties 15 15%
Returns of Funds 37 37%
Good Service 21 21%
Total 100 100%

Graph No. 6

INTERPRETATION
As given in the above figure, 37% of the respondents invest in Birla Sun Life Mutual Funds
because returns generated from funds in the past were desirable. 27% of the respondents
invest attributing to the Brand Name. 21% of the respondents claim that the company
provides Good service which is a reason for investing while 15% invest because availability
of variety of investment options.

29
Q7. What factors do you look first at when you invest in SIP with Birla Sun Life
Mutual Fund?
Table No. 7
Particular No of Respondents Percentage
Saving for future 22 22%
Returns 16 16%
Safety 27 27%
Liquidity 10 10%
Future expectation 27 27%
Total 100 100%

Graph No. 7

INTERPRETATION
As it can be observed from the above figure, 26% of the respondents look for Safety for
investing in Mutual funds, another 26% look for Future expectations, 22% look for
Savings for future, 16% look for Returns while only 10% look for Liquidity. It Means that
most of the investors invest in Mutual funds because of Safety and Future Expectation
regarding Systematic Investment Plan.

30
Q8. To what you give more importance while investing in particular fund for SIP of
Birla Sun Life Mutual Fund?
Table No. 8
Particular No of Respondents Percentage
Past Performance 37 37%
Expert Advise 31 31%
Brand Name 10 10%
Portfolio of Fund 22 22%
Total 100 100%

Graph No. 8

INTERPRETATION
As it can be observed from the above figure, 37% of the respondents consider Past
Performance of the company most important factor while investing in mutual fund while
other factors are of lesser importance as compared to Past Performance. 31% of the
respondents invest in mutual funds by taking Expert Advice. 10% of the respondents see
the Brand Name and then invest.

31
Q9. How is your investment pattern in Mutual fund with BSL Mutual Fund?
Table No. 9
Particular No of Respondents Percentage
Lump sum 25 25%
SIP 15 15%
Both 60 60%
Total 100 100%

Graph No. 9

INTERPRETATION
As shown in the above figure, 60% of the respondents invest in SIP as well as Lump sum,
25% invest only in SIP whereas the remaining 15% invest in Lump sum. Most of the
investors have invested in both SIP and Lump sum. But SIP is more profitable and less risky
as compared to Lump Sum Investment.

32
Q10. By investment objective in which type of schemes you do SIP with BSL Mutual
Fund?
Table No. 10
Particular No of Respondents Percentage
Debt Fund 0 0%
Equity Fund 65 65%
Hybrid Fund 35 35%
Total 100 100%

Graph No. 10

INTERPRETATION
As given in the above figure, 65% of the respondents invest in Equity Fund while remaining
35% of the respondents invest in Hybrid Fund and no respondents invest in the Equity Funds.
Most of the Investors prefer to invest in Equity fund as compared to other funds. Equity funds
are more profitable then any other funds.

33
Q11. In which type of funds you do SIP investment?
Table No. 11
Particular No of Respondents Percentage
Tax Saver Funds 25 25%
Sectorial Funds 10 10%
Mid Cap Funds 12 12%
Index Funds 6 6%
Large Cap funds 30 30%
Diversified Funds 17 17%
Total 100 100%

Graph No. 11

INTERPRETATION
As given in the above figure, 30% of the respondents invest in Large Cap funds, 25% invest
in Tax Saver funds, 17% invest in Diversified funds, 12% invest in Mid Cap funds, 10%
invest in Sectorial funds and 6% invest in Index funds. It is observed that most of the funds
are invested in Large Cap funds as compared to other types of funds because it is more
profitable.

34
Q12. Did you repeat / add your investment after your initial investments in SIP?
Table No. 12
Particular No of Respondents Percentage
Yes 69 69%
No 31 31%
Total 100 100%

Graph No. 12

INTERPRETATION
As shown in the above figure 69% of the respondents repeat or add into their investment
because of higher rate of dividends, safety and brand name, while 31% of the respondents
does not repeat the investment they diversify their funds occasionally.

35
Q13. What percentage of your earnings do you invest in Mutual Funds?
Table No. 13
Particular No of Respondents Percentage
Up to 10% 53 53%
11% to 25% 28 28%
26% to 50% 11 11%
Above 50% 8 8%
Total 100 100%

Graph No. 13

INTERPRETATION
From the above figure 53% of the respondents invest up to 10% of their earnings in Mutual
Fund, 28% invest up to 11% to 25% of their earnings, 11% invest up to 26% to 50% while
remaining 8% invest above 50% of their earnings in Mutual Fund. It shows that very few
people invest their savings in Mutual funds.

36
Q14. What amount of SIP do you make?
Table No. 14
Particular No of Respondents Percentage
Below 1000 16 16%
1001-3000 41 41%
3001-5000 24 24%
5001 & Above 19 19%
Total 100 100%

Graph No. 14

INTERPRETATION
From the above figure 41% of the respondents invest from Rs. 1001 to Rs. 3000 in SIP,
24% invest Rs. 3001 to Rs. 5000, 19% invest more than Rs. 5000 while only 16% invest
below Rs. 1000 in SIP. It is observed that most of the respondents have invested Rs. Upto
5000 in Systematic Investment Plan.

37
Q15. For what time period have you invested in SIP?
Table No. 15
Particular No of Respondents Percentage
1yr. to 2yrs. 12 12%
3yrs. to 5yrs 31 31%
5yrs. to 10yrs. 37 37%
10yrs. & Above 20 20%
Total 100 100%

Graph No. 15

INTERPRETATION
From the above figure, 37% of the respondents invest for 5 to 10 years in SIP, 31% invest
for 3 to 5 years, and 20% invest for 10 years and above while only 12% invest for 1 to 2
years. Most of the respondents invest for the period of 5 to 10 years. Normally investment
for longer period gives high rate on return on investment.

38
6.1 FINDINGS
1. An overall increase in market share is 51% from April 2015 to June 2017 was
observed
2. .From April 2015 to June 2017:
a) Amount of SIPs sold of Birla Sun Life Mutual Funds hiked by 31% from
April 2015 to June 2017.
b) Average amount of per SIP, investor invest in Birla Sun Life Mutual Fund is
Rs. 5735.
c) Average amount of per SIP in industry (Mumbai) is Rs. 5072
d) There is 53% increase in number of SIP running with Birla Sun Life Mutual
Fund and 24% with industry (Mumbai).
e) There is 61% increase in SIP Book with Birla Sun Life Mutual Fund and 90%
increase with industry (Mumbai).
3. 92% of the respondents are aware of Mutual Funds but out of it, only 81% invest in it
because of lack of knowledge.
4. 17% of the respondents invest in BSLMF because of good returns in the past.
5. 75% of the respondents invest through SIP and mostly in equity funds (65%).
6. Majority of the respondents prefer investing in Large Cap funds and Tax Saver funds.
7. 69% of the respondents reinvest in BSLMF.
8. More than 50% of the respondents invest up to 10% of their earnings with an average
amount of 1001 to 3000 rupees for a time horizon of 5 to 10 years.
9. Safety and Future expectations are the factors which dominate investing decision for
the investors while investing in SIP.
6.2 SUGGESTIONS
1. When the market has a continuous rising trend, a security risk is involved. So I would
suggest not to invest in a sector fund such as IT, Pharmaceutical, etc through SIP
during boom-time would not give the investor much benefit.
2. Secondly, in a falling market, SIPs do not necessarily ensure profit but only protect
the investor from losses. So I would suggest to invest in Balance Fund where investor
get secure returns and protect from losses.
3. SIP returns of Birla Sun Life Mutual Fund attract investors to invest in SIP by
advertising and various promotion techniques.
4. Systematic investment plan should be provided to the customers.
5. Investors should aware about the schemes according to the marketability point of
views.

39
6.3 CONCLUSION
One of the major reasons behind changing trend of Systematic investment plan from April
2015 to June 2017 is Awareness. As information and awareness is rising more and more
people are enjoying the benefits of investing in Mutual Funds. Also in Mutual Fund,
investment is done on various ways- major are Lump Sum Investment and Systematic
Investment Plan. The change in trend of SIP can be attributed to benefits of SIP and
increasing level of awareness by Association of Mutual Funds of India (AMFI) and other
Asset Management Companies (AMCs). To further fortify the positive change in trend in
SIP, the investors were delighted by the performance of mutual funds of Birla Sun Life.
This Project gave me a great learning experience and at the same time it gave me enough
scope to implement my analytical ability. The analysis and advice presented in this Project
Report is based on industry figures and investment practice and preferences of the investors
for investing in Mutual Fund and Trend of Systematic Investment Plan of Birla Sun Life
Mutual Fund. This report will help to know change in trend of SIP in BSL Mutual Fund and
investor‟s preference in SIP selection, their investment duration, their preference towards any
particular Asset Management Company (AMC). This Project as a whole can be divided into
two parts.
The first part gives an insight about Mutual Fund and its various aspects, Company profile,
Objectives of the study, Research Methodology. One can have a brief knowledge about
Mutual Fund, Systematic Investment Plan and its basics through the project.
Second part of project consists of data and its analysis collected thought organization and
survey done on 100 people. The data collected has been well organized and presented. I hope
the research finding and conclusion will be of use.

40
Books
1. C. R. Kothari’s (2000), “Research Methodology”, Types of Methodology, NIrali
Publications, New Delhi, Pg. 502.
2. Donald R. Cooper, Pamela S. Schinder (2003) Business Research Methods, Sampling
design, Pg. 196.
Journal
1. SHIV SHAKTI - International Journal in Multidisciplinary and Academic Research
(SSIJMAR) Vol. 1, No. 3, September-October (ISSN 2278 – 5973)
Websites
2. www.moneycontrol,com/news/business/mutual-fundbusiness
3. www.shodhganga.inflibnet.ac.in
4. www.nism.ac.in
5. www.ijetmas.com/admin/resourse/project/paper
6. https://issuu.com/sanjaykumarguptaa/docs/name972e54
7. http://mutualfund.birlasunlife.com
8. https://www.amfiindia.com
9. http://www.equitymaster.com/detail.asp?date=10/01/2001&story=3&title=Systematic
-Investment-Plan-A-study

41
 QUESTIONNAIRE
Demographic Information

NAME: ______________________________________ __________________

AGE
0-18_____19-36_____37-54_____ 55-72______ 73 & ABOVE______
GENDER: Male [ ] Female [ ]
OCCUPATION: Businessman [ ] Pvt. Employee [ ]
Govt. Employee [ ] Professional []
Student [ ] Retired []
CONTACT NO:
__________________________________
Q1. Where do you invest your money?
Post Office [ ] LIC [ ] Stock Market [ ]
Bank [ ] Gold [ ]
Q2. Are you aware about Mutual Fund?
Yes [ ] No [ ]
Q3. Have you ever invested in Mutual fund?
Yes [ ] No [ ]
Q4. If No, What is (are) the reason?
Never thought about it [ ] Do not have enough savings [ ]
Lack of knowledge [ ] Risky [ ]
Q5. If yes, which company / companies?
Reliance Mutual Fund [ ] Birla Sun Life Mutual Fund []
ICICI Mutual Fund [ ] LIC Mutual Fund [ ]
UTI Mutual Fund [ ] SBI Mutual Fund [ ]
HDFC Mutual Fund [ ] Others [ ]
Q6. If Birla Sun Life Mutual Fund, what is (are) the reasons?
Brand Name [ ] Varieties []
Good Service [ ] Returns of Funds []
Q7. What factors do you look when you invest in SIP with Birla Sun Life Mutual Fund?
Saving for future [ ] Returns []
Safety [ ] Liquidity []
Future expectation [ ]

42
Q8. To what you give more importance while investing in particular fund for SIP of
Birla Sun Life Mutual Fund?
Past Performance [ ] Expert Advise [ ]
Brand Name [ ] Portfolio of Fund [ ]
Q9. How is your investment pattern in Mutual fund with BSL Mutual Fund?
Lump sum [ ] SIP [ ] Both [ ]
Q10. By investment objective in which type of schemes you do SIP with BSL Mutual
Fund?
Debt Fund [ ]
Equity Fund []
Hybrid Fund []
Q11. In which type of funds you do SIP investment?
Tax Saver Funds [ ] Index Funds []
Sectorial Funds [ ] Large Cap funds []
Mid Cap Funds [ ] Diversified Funds []
Q12. Did you repeat your investment after your initial investments in SIP?
Yes [ ] No [ ]
Q13. What percentage of your earnings do you invest in Mutual Funds?
Up to 10% [ ] Up to 25% [ ]
Up to 50% [ ] Above 50% [ ]
Q14. What amount of SIP you do make?
Below 1000 [ ] 1001-3000 [ ]
3001-5000 [ ] 5001 & Above [ ]
Q15. For what time period you have invested in SIP?
1yr. to 2yrs. [ ] 3yrs. to 5yrs [ ]
5yrs. to 10yrs. [ ] 10yrs. & Above [ ]

43