A STUDY ON INVESTOR’S PERCEPTION TOWARDS

MUTUAL FUNDS THROUGH SIP

Submitted in partial fulfillment of the requirements for the award of

Master of Business Administration

by

PASUPULETI NIKHILESH
Register No. 39410142

SCHOOL OF BUSINESS ADMINISTRATION

SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with Grade “A” by NAAC I 12B Status by UGC I Approved by
AICTE
Jeppiaar Nagar, RAJIV GANDHI SALAI, CHENNAI - 600 119

April - 2021
 SATHYABAMA
INSTITUTE OF SCIENCE AND TECHNOLOGY
(DEEMED TO BE UNIVERSITY)
Accredited with “A” grade by NAAC I 12B Status by UGC I Approved by AICTE
Jeppiaar Nagar, Rajiv Gandhi Salai, Chennai – 600 119
www.sathyabama.ac.in

SCHOOL OF BUSINESS ADMINISTRATION

BONAFIDE CERTIFICATE

This is to certify that this Project Report is the bonafide work of PASUPULETI

NIKHILESH 39410142 who have done the Project work entitled “A study on

investor’s perception towards mutual funds through SIP” under my supervision

from January 2021 to March 2021.

Dr. Y. AYSHA FATHIMA

Internal Guide

Dr. BHUVANESWARI G.
Dean – School of Business Administration

Submitted for Viva voce Examination held on _______________.

Internal Examiner External Examiner

 DECLARATION

I PASUPULETI NIKHILESH 39410142 hereby declare that the Project Report

entitled “A study on investor’s perception towards mutual funds through SIP”

done by me under the guidance of Dr. Y. AYSHA FATHIMA at SATHYABAMA

INSTITUTE OF SCIENCE AND TECHNOLOGY, CHENNAI is submitted in partial

fulfillment of the requirements for the award of Master of Business Administration

degree.

DATE:

PLACE: PASUPULETI NIKHILESH

 ACKNOWLEDGEMENT

I am pleased to acknowledge my sincere thanks to Board of Management of

SATHYABAMA for their kind encouragement in doing this project and for

completing it successfully. I am grateful to them.

I convey my sincere thanks to Dr. BHUVANESWARI G., Dean, School of Business

Administration and Dr. PALANI A., Head, School of Business Administration for

providing me necessary support and details at the right time during the progressive

reviews.

I would like to express my sincere and deep sense of gratitude to my Project Guide

Dr. Y. AYSHA FATHIMA for her valuable guidance, suggestions and constant

encouragement paved way for the successful completion of my project work.

I wish to express my thanks to all Teaching and Non-teaching staff members of the

School of Business Administration who were helpful in many ways for the

completion of the project.

PASUPULETI NIKHILESH
 ABSTRACT

In India Mutual funds plays a vital role in mobilizing funds for capital and financial
markets. Mutual Funds are one in all the most effective investment choice out there
to the small investors. A Mutual funds is a type of investment platform where it
manages to collect investment from a lot investors to buy securities like stock,
money market instrument, bonds and other assets because the investment firm
sector had developed, there’s been a growing acceptance by most policy holders
that the assured come era may be a factor of the past. Mutual Fund are operated
by professional money managers, who is allocated the funds asset and to attempt
to produce capital gains or income for the fund’s investors. Now days all types of
investors investing in Mutual Funds. The Primary objective of the study is to assess
investor’s perception towards Mutual Funds through SIP and to identify the reasons
for investment in mutual funds through SIP. This study also aims to measure the
returns for investment made in Mutual Fund and to evaluate the risk tolerance level
of investors.

This study contains with a sample of 130 different kinds of investors and their
diversification of investment plan. The data was collected from the investors through
circulated questionnaire Google forms in Chennai city. By this study it founded that
most of the investors has a positive knowledge about SIP in Mutual Fund. Based on
the findings and analysis it concluded that most of the investors are satisfied with
the returns and performance of Mutual fund through Systematic investment Plan
and it also found that tax-benefits, diversification and reduction in risk as more
impact on the investor’s perception for investing in mutual fund.

Key words: SIP (systematic investment Plan), Mutual funds, perception

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 TABLE OF CONTENTS

CHAPTER TITLE PAGE

NO. NO
ABSTRACT i
LIST OF TABLES iii
LIST OF CHARTS v
INTRODUCTION 1
1.1 Introduction about the study 1
1
1.2 Industry profile 11
1.3 Need for the Study
Study 16
1.4 Scope of the Study 16
1.5 Objectives of the Study 17
1.6 Limitations of the Study 17

2 REVIEW OF LITERATURE 18
RESEARCH METHODOLOGY 27
3.1 Research Design 27
3.2 Sampling Technique 27
3.3 Sources of Data 27
3
3.4 Structure of Questionnaire 28
3.5 Sample Size 28
3.6 Period of Study 28
3.7 Hypothesis test 28
3.8 Analytical test 29
DATA ANALYSIS AND INTERPRETATION 30

4.1 Percentage Analysis 30

4
4.2 Chi-square 60
4.3 Correlation 62
4.4 ANOVA 64
5.1 Findings 65
5 5.2 Suggestions 67
5.3 Conclusion 68
REFERENCES 69
APPENDIX – I (Questionnaire)
APPENDIX – II (Article)

ii
 LIST OF TABLES

TABLE NO PARTICULARS PAGE NO

4.1 Respondents based on the age 30

4.2 Respondents based on the Gender 31
4.3 Respondents based on the Education Qualification 32
4.4 Respondents based on the Occupation 33
4.5 Respondents based on the Annual- income 34
4.6 Respondents based on the savings from earnings 35
4.7 Respondents based on the Investment objective 36
4.8 Respondents based on the Investment period 37
4.9 Respondents based on the awareness on SIP 38
(Systematic Investment Plan)
4.10 Respondents based on the better returns from 39
Systematic Investment Plan
4.11 Respondents based on the influenced to invest in 40
mutual fund through SIP
4.12 Respondents based on the investment in Systematic 41
Investment Plan
4.13 Respondents based on the schemes/funds of 42
Systematic Investment Plan investors invested
4.14 Respondents based on the Systematic Investment Plan 43
whether fulfil the objective of maximizing the return from
the investment
4.15 Respondents based on the primary reason to invest in 44
mutual fund through SIP (Systematic Investment Plan)
4.16 Respondents based on the need and convinces to 45
invest or withdraw in Mutual Funds
4.17 Respondents based on the Mutual funds generates the 46
best return for its investors

4.18 Respondents’ opinion as whether Mutual Funds has 47

well-diversified portfolio securities
4.19 Respondents based on the Mutual Funds has met the 48
objectives for which it is established
4.20 Respondents based on the majority of the schemes of 49
Mutual Funds have outperformed the market returns

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4.21 Respondents based on the Mutual fund has been 50
helpful in the development of Indian capital markets
4.22 Respondents based on the Mutual fund are less risky 51
way to invest as compared to directly invest in stock
market:
4.23 Respondents’ mutual fund good to respond to market 52
volatility
4.24 Respondents based on the money invested in mutual 53
fund is very secure:
4.25 Respondents based on whether mutual fund discloses 54
all the relevant information to its investor
4.26 Respondents based on the opinion on security of mutual 55
fund
4.27 Respondents based on the facing any problem while 56
investing in mutual fund
4.28 Respondents based on the level of satisfaction in mutual 57
fund through SIP
4.29 Respondents based on the choose the best returns 58
scheme/company
4.30 Respondents based on the recommend others to invest 59
in mutual fund through systematic investment plan
4.31 Relationship between investment objective and 60
investment object.
4.32 Relationship between education qualification and 61
mutual fund generates best return for its investors
4.33 Relationship between annual-income and mutual fund 63
have outperformed the market returns
4.34 Relationship between respondence opinion on security 64
of mutual fund and whether mutual fund discloses all the
relevant information to its investor

iv
 LIST OF CHARTS

CHART NO PARTICULARS PAGE NO

4.1 Age of the respondents 30

4.2 Gender of the respondents 31
4.3 Education Qualification of the respondents 32
4.4 Occupation of the respondents 33

4.5 Annual-income of the respondents 34

4.6 Savings from earnings of the respondents 35
4.7 Investment objective of the respondents 36
4.8 Investment period of the respondents 37
4.9 Awareness on SIP of the respondents 38

4.10 Better returns from sip of the respondents 39

4.11 Influenced to invest in sip of the respondents 40
4.12 Investment in sip of the respondents 41
4.13 Schemes/funds of sip investors invested 42
4.14 SIP schemes whether fulfil objective of maximizing the 43
return from the investment

4.15 Primary reason to invest in mutual funds through sip 44

4.16 Need and convinces to invest or withdraw in mutual 45
fund of the respondents
4.17 Mutual funds generate best returns of the respondents 46
4.18 Mutual fund has Well-Diversified Portfolio Securities of 47
the respondents

4.19 Mutual funds have met the objectives for which it is 48

established

4.20 Mutual Fund have outperformed the market returns of 49

the respondents
4.21 Mutual fund has been helpful in the development of 50
Indian capital markets of the respondents

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4.22 Mutual fund is less risky way to invest as compared to 51
directly invest in stock market
4.23 Mutual fund good respond market volatility 52
4.24 Money invested in mutual fund is very secure 53
4.25 Mutual fund discloses all the relevant information to its 54
investor
4.26 Investors opinion on security of mutual fund 55
4.27 Facing any problem while investing in mutual fund 56
4.28 level of satisfaction of the respondents 57

4.29 Choice on best return company 58

4.30 Recommend others to invest in mutual fund through SIP 59
of the respondents

vi
 CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

A Mutual fund is a financial mediator which collect the money from the investors who
are willing to take a position of their savings in Primary and secondary securities,
like money market instruments, govt and corporate bonds, equity shares of joint
stock companies. A Mutual fund is a trust that pools the savings of numbers of
investors who share a common financial goal. The Mutual fund is a best instrument
for the common man who want to invest his savings. Mutual funds help to his
investors who don’t seem to be ready to invest their savings in an exceeding right
direction or right securities and mutual funds play a significant role for the investors.
Now days Mutual funds are one amongst the fastest growing sectors in Indian
economy and have awesome potential for supportable future growth. From the last
decade, Mutual funds and its various instrument like Systematic Investment Plan,
equity fund, debt and hybrid funds instruments attract the most of the investors to
invest and also given lots of economic growth to the industry.

The main concept of lot of investors to take a position in open-ended investment

company to realize most advantages from Mutual funds such as reduction in risk,
diversified portfolio, liquidity of investment especially they create advantage of tax
benefit and professional management. Mutual funds are governed or regulated by
SEBI (Securities and Exchange Board of India). SEBI has the authority to issue the
all style of guidelines and to supervise the working of mutual funds through Mutual
funds Regulations, 1993 had been modified from time to time.

Mutual funds are a trust at law: it a special type of financial service company that
sell the shares, units, stock to the public for investing their savings in that. Mutual
funds is a vehicle for retailor investors and for institutional investors to benefits from
the markets. There are different types of Mutual funds schemes which magnetize to
varied types of investors, retail companies and institutions. Mutual funds are just
one short cut method for the investors to invest their savings to grow their wealth.

1
1.1.1 CHARACTERSTICS OF MUTUAL FUNDS

1. Mutual funds are managed by the investment professionals and other services
providers, who help the investors to get their returns and they take fee for their
services from the fund.

2. Investor’s purchase shares in the mutual fund from the fund itself, or through a
broker of the fund. And investors cannot purchase the shares from other investors
on a secondary market, such as New York stock Exchange or other type stock
companies.

3. The price that investor pay for mutual fund shares is the fund’s current net asset
value (NAV) per share plus any fees that the fund may charge at purchase, such as
sales charge or loads.

4. Mutual funds generally sell and buy their shares for continuous basis, although
some funds will stop selling when, they certain level of assets under management.

5. Mutual funds shares are ‘redeemable that means -when investors want to sell
their shares, they can sell them back to the fund or to a broker acting for the fund.

6. The investment portfolios of mutual funds typically are managed by separate

entities known as investment advisers this because investment advisers are
registered with the SEC (Securities and Exchange Commission). Mutual funds are
registered with the SEC and subject to SEC regulations.

1.1.2 Advantages of Mutual Funds

Diversification: In mutual fund, funds manager will help the investor by investing in
more than one asset class such as equities, debts, money market instruments etc
to spread the risk. It is called portfolio diversification because when one asset class
doesn’t perform, the other asset can compensate with higher returns to avoid the
loss for investors.

Convenience and Fair pricing Mutual funds are easy to buy and easy to
understand, unless investor opt for close-ended mutual funds. Investor can sell their
units at any point (when the market is high). Investors they typically have low
minimum investments and they traded only once per day at closing Net Asset Value

2
(NAV). This eliminates price flotation throughout the day and various arbitrage
opportunities that day traders’ practice.

Professional Management Professional management mutual funds help the

investor by offering expertise suggestions and also help to managing the investor
funds. They make research and analysis to bring the benefits to the investors and
process-driven approach of investing

The main advantage in mutual fund that the investor who investing in mutual fund
are protected and they are Governed by the Securities & Exchange Board of
India (SEBI), under the regulation of 1996, which show wide disclosures and fair
business practices.

The mutual funds also encourage the investors to choose their schemes such
as Systematic Investment Plan or Systematic Withdrawal Plan.

Suit for Investor financial goal: Now days most of the investors love to invest their
savings in mutual funds the reason behind is to achieve their financial goals. There
a several types of mutual funds available in India catering to investors from all walks
of life. In mutual fund there is no matter with income of investors it just makes
investors to gain with the returns. It is easy to find a mutual fund that matches the
investors income, expenditure, investment goals and risk hungriness.

Tax-efficiency Mutual funds help in reduction of tax. This may attract from lot of
investors. The mutual fund can help full to the people who are struggling with the
tax. They can invest in mutual fund.

1.1.3 Disadvantage of Mutual Fund:

Locked in period

There many mutual funds which have long-term lock in periods, ranging from five to
fifteen years. Existing such funds before maturity can be expensive affair. A specific
portion of the funds in the cash to pay out an investor who wants to exit the fund.
This specific portion cannot be earning the interest for investors.

3
No direct control over the cost

Generally, Investors in mutual fund participate in the pools of funds, on the basis of
proportion they had invested. Cost incurred for the managing the schemes are
shared by all the Unit-holder in proportion to the holding of Units in the scheme.
Therefore, no investors have a no direct control over the cost in a scheme. Securities
& Exchange Board of India have imposed certain limits on the expenses that can be
charged to any scheme.

Mutual funds offer too many products this may lead choice overload

In mutual funds there are so many products for its investors, making a choice among
many funds become very difficult to choose, in mutual funds so many variants of
same products are available in the market. Commonly mutual fud tries to differ their
products, even there if slightly this is because to provide a choice to its investors. If
there similar in objective and performance, investors may find it is hard to
differentiate the product and they make right choice of their needs

Dilution: Dilution is the direct result of diversification while diversification averages

investors risk of loss, it can also dilute investor profit. Since investor who spread
their money across different assets the high returns earned does not make much of
a difference. Hence, the investor should not to invest in more than 7 to 9 mutual
funds at a time.

1.1.3 Structures of Mutual Funds

Mutual funds were set in the form of trust which they are few participants namely as
sponsors, transfer register agent, Asset Management Company, trustee and
custodian. The trust is recognized by sponsor or more than one sponsor. The trustee
of mutual funds holds its property for the benefit of the unit holder. Asset
Management company acts as invest manager of the Trust under the Board
Supervision and direction of the Trustee. Asset Management Company has
approved and registered with SEBI (Securities & Exchange and Board of India).
Custodian who is registered with SEBI. Custodian should hold the securities of
various schemes of the fund in its custody. The trustee is conferred with the general
power of superintendence and direction over AMC (Asset Management Company).

4
The task to monitor the performance and compliance of SEBI Regulations by the
mutual fund.

SEBI (Securities & Exchange and Board of India) necessity that at least two thirds
of directors of trustee company must be independent because they should nor be
associated with the sponsors. In AMC (Asset Management company) 50% of the
directors should be independent and also it required that all mutual funds to be
registered with Securities & Exchange and Board of India before they launch any
schemes.

The following are structures of Mutual funds:

Asset Management Company

1)The Asset Management Company are colloquially referring to as a money

manager. The Asset Management Company is responsible for the functioning
features of mutual fund. AMC holds an investment management agreement with
trustees.

2) In Asset Management Company at least there should be 50% of the directors to

be independent and it should not have any other business interest structured as a
private limited company.

3) Asset Management Company is a SEBI registered entity, minimum of ten crores

of net worth to be maintained at all times.

SEBI (Securities & Exchange and Board of India)

1)In 1992, SEBI act was passed, the main objective of SEBI to protect the interest
of investors in securities and to help to develop and to regulate the securities market.

2)SEBI formulates strategies and controls the mutual fund to defend the interest of
the investors. SEBI started controlling mutual funds from 1993.

3) All mutual funds whether sponsored by private sectors or public sectors or foreign
entities are controlled by same set of rules or regulations.

4) Mutual funds are monitoring and inspections by SEBI.

Sponsor:

1)Sponsor are promotor of the mutual funds.

5
2) The sponsor also responsible for appointing the AMC (Asset Management
Company) and Custodian.

3)The sponsor makes an application for the registration of mutual funds and they
contribute at least 40% of the net worth of the Asset Management Company)

4)The sponsor could be bank, corporate company or financial institution and the
sponsor must need to have 5(five) years of track record in financial services
business and should have made profit for at least 3 Years.

Trustees:

1) The Board of Trustees or Trustee companies are appointed by Sponsor with SEBI
approval.

2) There should be at least 4 Trustee and 2/3 should be independent persons shall
not be associated with the sponsors and right to seek regular information and
corrective actions.

3) The trustee holds the interest of unit holders and it also have the right to dismiss
the AMC (Asset Management Company)

Custodian:

1) Custodian is registered with SEBI (Securities & Exchange and Board of Directors)

2) Custodian is responsible for the safe keeping of investments of the funds and
receipt of all benefits due to the funds. Custodian participates in clearing system.

3) Custodian should be independent of the sponsors.

Register & Transfer Agent:

1) The responsible of transfer agent for updating the investors records and
transactions.

2) A transfer agent’s principal functions are to issue and reject certificates to reflect
changes in ownership.

6
1.1.4 Types of Mutual fund

Mutual funds schemes based on Maturity Period

Open-ended funds- An open-ended funds allows investors to buy or sell the shares
at any point of time. These do not have a fixed maturity time and is one that available
for subscription all through the year. Investors can accessibly buy and sell units at
Net Asset Value (NAV) related price.

Benefits of Open-ended funds:

i) Convenience:

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

ii) Liquidity:

One of the key features of open-ended schemes, in this investor can redeem all or
part of any units any time of their wish. There are few schemes do have a lock-
period where an investor cannot return the units until the completion of such a lock-
in period.

iii) Flexibility:

Now days Mutual funds offering multiple schemes to allow investors to switch easily
between various schemes. By this flexibility investor get a convenient a way to
change the mix of his selection over time.

iv) Transparency:

In open ended funds shares have to buy and sell directly from the funds company.
This confirms greater transparency as there are no mediator involved. The investors
are in know of the quality of the portfolio that has been constructed by the investment
manager.

Closed-ended Funds

A close-ended funds has a stipulated maturity period which generally ranging from
3-15 years. Some close ended schemes will give investor an additional option of

7
selling investor units directly to the mutual funds through periodic repurchase at NAV
(Net Asset Value) related price. Investors can invest their savings in the schemes
at time of initial public issue and then they can purchase or sell the units of the
schemes on the stocks of exchange where they listed.

Interval Funds:

Interval funds operates combination of open and closed ended fund. Means interval
funds combine the features or advantages of open-ended and close-ended
schemes. Investors may have a choice on traded, they may be traded on the stock-
exchange or they may even be open for sale or redemption during pre-determined
intervals at NAV related prices.

Mutual Funds based on Investment Objective

Equity Oriented Fund:

Equity funds is to provide capital appreciation over the medium to long-term. Equity
funds are those that invest predominately in fairness of shares in companies. In
these schemes normally investor invest a major part of their savings in equity. Such
funds have comparatively high risk. There are various types of equity funds; such
as Growth funds, Specialty funds, Sector funds, Index fund, value funds, Diversified
equity fund and Equity Linked Saving Scheme (ELSS).

Income Oriented Fund

The main objective of the Income Oriented Fund is to provide regular and steady
income to the investors. Generally, these schemes invest in fixed income securities
such as bonds, corporate debentures, Government securities and money market
instruments like Treasury bill, Commercial paper, Certificate of deposits etc. These
funds are less risky compared to equity schemes. Basically, these funds are not
affected due to fluctuations in equity market. The Net Asset Value of such funds are
affected because of change in interest rate in the country. There are various types
of Income Oriented Funds such as Liquid or money market funds, Glit funds,
Diversified debt funds, Focused debt fund, High yield debt funds and Assured return
funds.

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Balanced Oriented Funds

The main aim of balanced funds is to provide both growing & systematic or regular
income from the funds as such schemes invest both in equities & fixed income
securities in the proportion indicated in their offer document. These are suitable for
investors looking for reasonable growth. They generally invest 40-60% in equities &
debt instruments

Net Asset Value (NAV)

Net Asset value is the market value is the market value of the securities seized by
the schemes. The performance of any particular schemes of a mutual fund is
signified by the Net Asset Value (NAVNAV schemes also varies on day-to-day
basis. The mutual funds invest the money collected from the investors in securities
markets. NAV calculation

NAV=Total asset – Total Liabilities

No. of units outstanding

Total Assets = Market value of the investment + Current assets + Accrued income

Total Labilities = Current Liabilities + Accrued expenses

1.1.5 Benefits of SIP (Systematic Investment Plan)

Systematic Investment Plan is the monthly installment plan which can attract lot of
small type of investors. SIP is a weapon to build up the wealth of the investors. SIP
better than Lump sum plan, in sip investors has got a chance to invest minimum
amount of Rs. 500 this would be attracting lot of investors and returns would be
better. SIP is the low risky scheme in mutual fund where lump sum is higher risky
scheme. Now days sip attracts the lot of youth people to invest their savings in
mutual funds. Youth want to increase their earnings in the form of sip. There are
huge companies who offering sip schemes, and large amount of people invested in
sip compare to other investment option such as Chit funds, Postal savings and
Banking deposits. SIP is a long run investing which appeals to investor. SIP shows
a direction people who are confused where you to invest their savings in SIP or
Lumpsum schemes. Systematic Investment Plan will be an upcoming brand for

9
mutual funds. It helps to increase the mutual funds industries. There are few
advantages in Sip such as

1) Investors can stop investing in systematic investment plan.

2) Investors can skip the systematic investment plan.

3) Investors can start a new systematic investment plan if they have more money

4) Investors can become more disciplined in his savings.

5) Investors can Invest very small amount compare to other schemes.

6) Investors do not need to worry about timing in the market.

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1.2 INDUSTRY PROFILE

The first company of Mutual funds was the Unit Trust of India. It had been launched
by venture of the Reserve Bank of India and the govt of India in 1963. The foremost
concept of UTI was to guide small and uniformed investors who wanted to buy for
shares and financial products in large organizations. Until 1987, UTI enjoyed
monopoly in the Indian Mutual fund market at that point Mutual fund industry has
acquired its own identity with the general public. From 1987, many public sectors
banks had instigated the govt. for starting their own Mutual fund financial
companies.

A feature of mutual fund scheme it the low minimum investment amount-as low as
Rs 1,000 for more schemes. This makes more investors to require a footing. The
expense ratio which is incredibly low it’s not quite 2.5% in many schemes, especially
in liquid and index funds are below than 0.05% and few schemes, there are lower
compared to other schemes which will also help in making mutual fund an excellent
instrument for build the investors wealth over the long-term plans.

Mutual fund is closely regulated by the (SEBI) Securities & Exchange Board of India.
The regulation of Mutual fund is 1996, which is applicable in SEBI. Under this
regulation Board of Trustee plays a really significant role in defending the interest of
the investors in mutual fund schemes. Another defending feature is to test and
balances in mutual fund system. For instance, while the Asset Management
company handles the investment handle management activity, the particular
custody of the investments is with an independent custodian. The investors records
are normally maintained by the register and transfer agents (RTA), who offers their
service to multiple mutual funds. In some cases, AMC itself maintains the investors
records.

1.2.1 Emergence of Mutual Fund

Mutual Funds now signify the most appropriate investment opportunity for most
investors; as financial market became more cultured and complex; investors need
a financial intermediary who provides the required knowledge and specialized
expertise on successful invest.

11
The birth place of Mutual fund -United States of America, the Mutual fund industry
has already overtaken the banking industry, more funds were invested in mutual
funds management than deposited with bank.

The Indian Mutual funds industry already started opening up many of the existing
investment opportunities to Indian Investors. In India it is also find out that most of
the investors using mutual fund instrument as an Investment tool.

Despite the expected continuing growth industry, Mutual funds are still a new
financial intermediary(broker) in India.

Hence, it is important that the investors of mutual funds should be influenced by

agent/distributors of mutual funds, as agents have acquired better information of
what mutual funds are, how can they help for investors and how they cannot. In
simple term agents show right direction and right safety for investors. The
Association of mutual fund in India has commissioned this workbook as the basic
complication of the minimum knowledge required by both the fund distributors and
the employees. The course book will also serve as guide to AMFI Testing
Programmed for distributor and human resources.

1.2.3 HISTROY OF MUTUAL FUNDS

The Mutual Funds industry was established in 1963 with formation of Unit Trust of
India with help of the Government of Indian Reserve Bank. The main objective to
start Mutual funds in India to attract the small investors and uninformed investors
who wants to buy shares and other financial quality products. The Mutual funds
industry in India can be broadly classified into four different phases.

Phase 1 of Inception (1964-1987)

This phase was marked by the setting up of the Unit Trust of India it was established
by Art of Parliament and given a monopoly. Though it was collaboration between
the Reserve Bank of India and the Indian government (IDBI), the latter was soon
delinked from the day-to-day operations of the Unit Trust of India. The first scheme
and one of the main schemes launched by Unit Trust of India was Unit scheme
1964.

In 1971 UTI started innovating and offering different schemes to suit the needs of
different types of investors. In 1971 UTI launched the Unit Linked Insurance Plan
12
(ULIP) and UTI introduced several plans until 1986, the schemes like children’s Glit
Growth fund (1986) and Master share (1987) were introduced. And Master scheme
could be termed at the first delivery equity asset schemes in India. UTI played a very
big role in introducing the concept of mutual funds in India. When UTI was set up
several years ago, the idea was to not just introduce the concept of mutual funds in
India, a suggestion idea was to set up a corpus for national – building as well. The
concept to encourage the small Indian investor, the govt built in several income- tax
rebates in the UTI schemes. At end of this phase, not unpredictably, the investable
corpus of UTI increased form 600 crores in 1984 to 6,700 crores in 1988.

Phase 2 (1987-1993) Entry of Public Sector:

By the end of 1988, the mutual fund industry had acquired its own identity. In 1987
marked the entry of non-UTI, many publics sector banks had begun persuade the
govt for starting their own mutual fund industries. More mutual funds companies
made competitions among them, with the opening up of the economy, many public
sectors banks are allowed to establish Mutual funds industry. In November 1987,
the first non-UTI Asset Management fund was set up by the State Bank of India.
After set up by the State Bank of India the Asset Management companies was
quickly followed by the creation of other Asset Management companies by banks
like Indian Bank, Canara Bank, Life Insurance Corporation, General Insurance
Corporation and Punjab National Bank. The opening up Mutual funds companies
help to increase the investor community and the investible fund and it has also
delivered that desired results. In 1993 the swelling corpus of all the AMCs went up
with up to howling Rs 44,000 crores. This phase was observed, not only increased
the base of the industry and it also encouraged investors to spend to their higher
percentage of their savings in mutual funds. It was noticeable that mutual fund
industry in India was dignified for higher growth.

Phase 3 (1993-1996) (Entry of Private Sector)

In the period 1991-1996, the Government of India realized importance of

liberalization of the Indian economy. A new era the Mutual fund industry began with
the permission granted for the entry of private division funds in 1993. In this phase
they find out that financial sector reforms were the need of the hour. And India
needed private sectors participation for the re-building of the economy, so they

13
granted private sectors to enter in mutual funds. These private sectors had brought
the latest product innovations, investment management techniques and investor
serving technology that makes India Mutual fund industry today vibrant and growing
financial intermediary. In this period some private companies’ players had
collaborated with foreign entities and launched their Asset Management Funds.
ICICI Prudential it is joint venture between ICICI Bank of India, HDFC was launched
in 1990s and HDFC mutual funds manages 800 above different kind of funds. Kotak
Mahindra Mutual funds it is a joint venture of kotak financial services and the
Mahindra group. During 1993-94 more than 4 private sector mutual fund companies
launched their schemes followed by six others in 1994 -95. As the mutual funds
industry grown up further in 1990’s, Asset Management companies and the
government thought this is a time to regulate and to introduce some control over
mutual funds. To protect the investors from scams etc. This is because the India
Mutual fund industry was suffered a lot of bank scams and it was real threat that
investors might lose their money. And the Government introduced the SEBI
(Securities & Exchange of Board of India) Regulations Act 1996 which made up a
set of fair and clear rules for all the stakeholders. In 1999, the India government
declared all the mutual funds dividends would be exempt from income tax. The
reason behind this result was to spur for further growth in the mutual funds industry.
In this phase mutual fund industry also realized that the importance of self-
regulations.

Phase 4: Since February 2003

In February 2003, following the repeal of the original UTI Act of 1963 UTI was
bifurcated into two separate entities were the UTI Mutual funds (which is under the
SEBI regulations for mutual funds) and specified Undertaking of the Unit Trust of
India, functioning under an administrator and under the rules framed by Government
of India does not come under the purview of the Mutual fund regulations. The next
is the UTI Mutual fund ltd, was sponsored by State bank of India, Punjab National
Bank, Bank of Baroda and Life Insurance corporation and it is registered with SEBI
and functions under the Mutual fund regulations. Following bifurcation of the
erstwhile UTI which had in March 2000 more than 76,000 crores of assets under
management and with setting up of a UTI Mutual fund, conforming to the Securities
& Exchange Board of India regulations and UTI and occurrence numerous mergers

14
among different private sector entities, the mutual fund industry took a step towards
the phase of consideration.

1.2.4 SIP (SYSTEMATIC INVESTEMNT PLAN):

Systematic Investment Plan commonly known as SIP; it is a method of investing

platform in Mutual funds. SIP allows investors to invest a small sum regularly in
investors preferred mutual fund schemes. By activating an SIP, a fixed amount is
deducted from investors bank account every month in a chosen date, which get
invested in the mutual fund of their own choices. Systematic investment plan helps
the small investors who want to save smaller amount of money while benefiting from
the long-term advantages of rupee cost averaging. The most of brokerages and
mutual funds companies offers Systematic Investment Plan.

Systematic Investment Plan offers more schemes compare to Lump-sum

investment. Many of the investors choose SIP for more returns with small amount
of money. The main motive of SIP is easy way to accumulate assets and the
advantage of Rupee cost averaging means buying more share when price pulls
down by allocating pre-determined periodic speculation into mutual funds.

Systematic Investment Plan is only scheme which available in mutual fund, to attract
the small term investors. SIP generates more returns compare to other investment
options such as postal savings and bank deposits and generally in SIP investors
can make their payments on monthly bases this option will gives more benefits to
the investors.

Systematic Investment Plan do not assure an income and do not protect against a
loss in declining market. Since systematic investment plan (SIP) investing involves
permeant participation in the market regardless of performance price level of
securities, investor should consider his financial ability to continue your purchases
through periods of low-price levels.

Why Systematic Investment Plan?

i) The systematic investment plan option is accessible with all type’s funds such as;
equity fund, income fund etc.

ii) An investor will have a choice on SIP by giving monthly post- dated cheques Rs.
500 or more than rs.500 in step with the fund’s policy.
15
iii) If an investor desires to place over Rs. 500 or Rs. 1000 or above during any given
method he can have to be compelled to fill a new kind of systematic investment plan
intimating that he’s changing his systematic investment plan. And an investor
allowable to modify the systematic investment plan only within the multiples of the
SIP amount.

iv) If an investor investing in two different schemes of the identical fund, he can fill
in an exceedingly common systematic investment plan. However, if the primary
holder in those schemes is different than they need to fill different systematic
investment plan forms, because the first proprietor must check in the shape.

v) The investor has a choice of get out of the fund he can turn his units any time no
matter whether or not he completed his least amount speculation in these schemes.
In such a case his post-dated cheques are come back to him.

1.3 NEED FOR THE STUDY

A Mutual fund is a financial mediator which collect the money from the investors who
are willing to take a position of their savings in Primary and secondary securities,
like money market instruments, govt and corporate bonds, equity shares of joint
stock companies. As the mutual funds sectors has developed, there’s been a
growing acceptance by most policy holders that the assured return era is a thing of
the past.

This study would help in explaining the investor’s perception on Mutual fund through
Systematic Investment Plan and their risk and returns of their investments. This
study also to know the expectations of individual from their investment in systematic
investment plan.

1.4 SCOPE OF THE STUDY:

➢ The scope of the study is to analyse and interpret the investor’s perception
towards the Mutual fund and perception towards Systematic Investment
Plan.
➢ The research record around a general awareness on the Mutual fund and
precautions towards Systematic Investment.
➢ To measure the experience of the investors in Mutual fund through
Systematic Investment Plan.

16
 ➢ Analyse and interpret the factors affecting the choice of Mutual fund and
investors preference on the Systematic Investment Plan in Mutual fund.

1.5 OBJECTIVE OF THE STUDY:

1.5.1 Primary objectives

➢ To study the investor’s perception towards Mutual fund through Systematic

Investment Plan.

1.5.2 Secondary objectives

➢ To identify the reasons for investment in mutual funds through systematic

investment plan.
➢ To measure the returns for the investment made in mutual funds.
➢ To evaluate the risk tolerance level of the investors.

1.6 LIMITATIONS OF THE STUDY

➢ The analysis of the present study has been carried out based on the
information has collected directly from the respondents.

➢ The study is an opinion survey caution may have to be exercised while

extending the result to other areas.

➢ Due to time constrict only 130 numbers of respondents were considered.

➢ The result fully depends on the information given by the respondents which
may be based.

➢ This study has taken limited dependent variables like investment period,
investment objectives and risk and return perception.

17
 CHAPTER 2

REVIEW OF LITERATURE

Senthil. K and Maruthamutu. K (2010) This study has made an attempt to

understand financial behaviour of mutual funds investors towards mutual fund
investment. The study was basically focused on the investor’s awareness and
preferences on various mutual fund’s schemes and what are the factors which
influence them to invest in mutual fund schemes and to know the level of satisfaction
obtained by them from the mutual fund it was done with the help of the survey
conducted in Dharmapuri. The authors conclude while make investing decision the
investors should seek advice from expert and consultants including agents and
distributor of mutual fund schemes. The investors should compare the risks and
expected yields after adjustment of tax on various instrument while investment
decision. To make investors aware of mutual fund an attempt to be made by
providing information in question answer format which may help the investors in
taking in investment decisions.

Ramesh. M and Geetha. N (2011) the study was to observe the perceptions and
behaviour of the small investors located in the town of Chidambaram, Tamil Nadu,
South India towards the mutual fund, and also analyses the relationship between
motivating factors and reasons for making investment in mutual funds. In this
research they founded that many facts which would be inevitable for mutual fund
companies to alter or modify their present strategies in order to sustain the existing
pace, and the sustainability and acceleration of growth pace of mutual fund
investment depends how far the mutual fund organization design, alter or modify
their policies, schemes and market strategies according to the perception of the
investors.

Manoj Sharma et.al. (2012): The study was conducted to know the customer’s
perception and level of satisfaction towards mutual fund companies. In this study
the researchers also want to know expectations of customers towards mutual fund
companies. For this purpose, they use SERVQUAL model to identify the gaps
between expectations and satisfaction level of customers. This study was conducted
in Chhattisgarh. The research concludes that the relationship between customer
satisfaction service quality is controversial. Service quality and customer

18
satisfaction have been abstracted as a distinct. However, they also found that there
is no important relationship between customer stratification and tangible aspect of
service environment. The final statement made by researchers should improve
mutual fund services to increase quality in India.

Dimple Batra (2012): The main concept of this research paper to make comparison
of SIP (systematic investment plan) with lumpsum investment with the help of data
environment analysis this will be very useful for the policy maker and fund manager
for designing policies for future implications. The results conclude that many of
people do not invested in SIP due to the lack of awareness although they have
sufficient money to invest and the many investor prefer only to invest in their
traditional investment options such as fixed deposits, postal savings because they
think mutual funds risky then compare to other investment options. And they
concluded that mutual funds organization should target more and more young
investors as well as the person who want to highlight their career.

Punita.S and Iram Khan (2012) The objective of the study to understand the
perception on mutual fund sip and to compare sip with other type of investment
avenues. It resulted that lot of investors more aware of systematic investment plan
compare to other type of investment avenue, this is because more numbers of
investors chosen mutual fund systematic investment plan has a monthly based
investment plan through which an individual investor can fixed amount into mutual
funds every month at pre-given dates. Monthly instalment plan can attract the small
investors who wish to invest a small amount regularly to build wealth for a long term.

Annapoorna. M.S and Pradeep K. Gupta (2013) The main aim of the study to
evaluate the performance of the mutual fund schemes which is ranked by 1 CRISIL
is an Indian analytical company and compare with these returns with the SBI
company. By this research done to fulfil the belief of huge number of investors. The
results obtained from the study clearly contempt that in most of the cases mutual
fund have failed to give the returns of SBI domestic term deposits. It was concluded
mutual funds as risky as compared to other investment platform, the investors
should make good investment decision while investing.

Sindhu K.P and kumar (2014): The main aim of the objective of the research was to
study the relationship between risk perception of investors in Kerala and what is

19
their investment decision in mutual funds. The investors decisions of the investment
in mutual fund were influenced by risk perception. The authors analysed that
investors have an idea of the principle that higher the risk the higher the returns and
they also revealed that investors have more aware that diversification reduce risk.

Rupeet Kaur (2014): The study was conducted to examine the performance open-
ended debt mutual fund in India. The researcher has taken selected a sample of 23
schemes on the basis of weekly returns compared to benchmark returns and tools
are used for the research are statistical tools average, standard deviation, beta and
co-efficient of determination. The study was concluded that open-ended debt funds
are not performed better the benchmark indicators and average return of the
schemes are less than the market index. The funds are found to be poor in earning
better return.

Ramakrishna Mishra (2015): The study was conducted to explore different aspects
affecting the perception of investors investing in mutual fund and to discover aspects
of other investments, the difference of perception in large and small caps of mutual
fund investment is examined. The study was done in Bhubaneswar city of Odisha
with a sample of 136 investors. The analysis concluded that risk and returns are the
most important characteristic which is affecting investor’s perception.

Bharti Wadhwa et.al (2015) This study was revealed that comparison with other
financial instruments such as fixed deposits in banking, postal savings, real-estates
etc, investment in mutual fund are safer and more profits on portfolio investments.
Study also reveals that the investors basically invest their earnings by seeing the
review and rating of the market stock. Data analysis reveals that financial knowledge
is more important for making investments decision in mutual funds. At last, they
conclude that mutual fund organizations should formulate the more strategies to
attract the investors and also to fulfilling the investors exception on returns.

Hemendra gupta (2015) “A study on performance of Sensex and evaluation of

Investing Lump sum or Monthly regular Investment in equity on risk and returns for
Investors” this study focuses how investors making their investment decisions while
investing in systematic investment plan or in lump sum and the research tries to
estimate whether there any significant difference in volatility and return while in
systematic investment plan. They concluded that investors who are investing in

20
systematic investment plan or doing monthly investment has not shown any huge
difference in returns neither in reducing risk, however they also conclude that
investors who are investing in SIP it will a better option compare to lumpsum
investment.

Mukesh. H.V (2015) the research has done to know the perception level of mutual
funds and to know which variables has attract them while investing in mutual fund,
and also want to know investors behaviour towards the mutual fund for returns, tax
benefits and etc. It resulted that lot of respondents are low aware of systematic
investment plan they were attracted only for lump-sum investment. Hence, it was
concluded that mutual funds companies should create more awareness among the
investors through conducting workshops on financial markets which can helps the
investors to know more about the returns and risk.

Srilakshmi. S and Sekar. B (2016) “A study on Investors Perception towards Mutual

Funds” the research was conducted in the cities of Hyderabad and Secunderabad.
The study was to know the factors considered by the investors which attract or
influence them while investing in mutual fund and to know the level of awareness
towards the types of mutual funds. After the survey the authors concluded that the
investors are mainly investing in mutual fund for the purpose of availing tax
deduction and also, they concluded that lot of investors not fully aware about the
numerous schemes offer by Mutual funds houses.

Ujjwal M and Vinod Peerapur (2016): The study was conducted to investigate the
performance of funds of each AMC (Asset Management company) in a different
category. The funds for this research taken are only of open-ended schemes,
regular plan and growth option. Risk management tools are used to analyses the
performance of selected schemes. This study was based own Birla Sun life mutual
funds schemes and other asset management company’s schemes. In this research
they found that only Birla fund company as more value than other asset
management company.

Rajan. B and Sushil (2017) “A Study of Investor’s Preference towards Mutual funds
in Kathmandu Metropolitan City, Nepal” the objective of this research is to find out
the investor’s preference towards in Kathmandu metropolitan city. The research was
done by using in structured questionnaire, descriptive statistical tools. From the

21
analysis, research has found that lot of investors are not feeling confidence to invest
in mutual funds this is because they think mutual

funds are unsecure and it is related to more risk. And the most preference of the
investors love to invest in bank deposit because they think this investment platform
are more secure and fair returns compare to mutual fund.

Aruna K M. Senthamil Selvi (2017) this study was done to help the Mutual funds
broking houses to understand the behaviour plan of individual while investing in
Systematic Investment Plan schemes and to know the expectation and satisfaction
level of individuals from their investment in Systematic Investment Plan. The authors
explained that how systematic investment plan can be protects the investors from
market volatility and derives maximum benefits as the investment is done at regular
basis irrespective of market condition. This research concluded that there are only
few people aware with systematic investment plan and there are people who are
aware about Systematic Investment Plan but people are fear to invest in SIP. The
investors should make their investment in such way that should match the inflation
and this study reveals that investing in mutual fund especially in systematic
investment plan definitely the investors will get good returns. And SIP will be a best
option for small investor who wish to invest small amount regularly to build their
wealth for future needs.

Subbalakshmi and Balachandar. R (2017) “A study on investor’s Attitude towards

Mutual funds as an Investment Option”. The authors conducted a primary research
on 100 respondents in Tamil Nadu and founded that many people have started
investing in mutual funds instead of the conventional investment options. But still
there are many people who unsure to invest in same due to their lack of knowledge
about the benefits

Monty Kanodia and kiran khinchi (2017): The study was conducted to analysis
varied mutual funds schemes and the way it’ll facilitate to investors to judge which
mutual fund scheme is healthier. The study also wants to examine the risk and return
in mutual fund. The study was concluded that performance and comparison of
mutual fund in India, should be provided to create a powerful study and a degree
of correlation is extremely vital between funds and market return and the impact of
funds specific characteristics on the mutual fund performance. This correlation

22
should have to develop so as to have better idea to investors on how parameter can
affect the other.

Khan AH and Agarwal SK (2017) The study was conducted in Delhi and Meerut
areas in different public sector and private sectors to know the investors perception
towards in mutual fund with help of close- ended and open-ended questions. In this
research Khan and Agarwal observed that despite being a lot of continues
advertising by mutual funds houses still the investors of Meerut area are not
believing on private mutual fund but in case of metro cities Delhi are more aware
than tier two cities and in Delhi city people are more eager to invest in private and
public sector of mutual funds. They founded that the few investors are not electing
or feel confident to invest in mutual fund because they think that mutual funds are
risky than other investment options and the awareness level of mutual funds among
the investors are very low because of only having less knowledge about the mutual
fund, there are few less educated people who knows lot about mutual funds but at
end of the day they are not willing or ready to put their hard earn money in mutual
fund to avoid risk bearing factors and danger of great loss. They observed that there
are few people with more income but they are in confusion in absence of awareness.

Rajesh Trivedi et.al. (2017) state that Indian financial market is becoming more
competitive and the supply of various financial instruments to be in stability to the
demand perspective of the investors. The prime drive of every investors to get
maximum return with a minimum risk, the same advantage can be seen in mutual
funds. The research provides all types of risk which exist in mutual fund scheme.
The research focused on the relationship between investment decision and different
factors like financial awareness, and demography. The data was collected from
investors as well as non-mutual fund investors of the industry. It was founded that
mutual fund industry has more struggle to gain more investors. It was also founded
that low-risk funds and liquidity of funds scheme are more having impact on
investors perception for investing in mutual fund

Jyothi Ainapur (2018) conducted study on the awareness on mutual funds. In this
research paper it was founded that awareness of mutual fund is less among the
people. Mutual funds having more advantages compare to other investment
platform like; comparatively higher Return of Investment, Tax benefit and Liquidity,

23
Ease of investing and monitoring, Diversification and Systematic Withdrawal Plan in
spite of all these advantages still investors are not interested investing in mutual
fund, may be because of lack of awareness. Only 24% of 36-45 age group are
invested in mutual fund through brokers, 36% people are willing to invest through
SIP and 69% of the respondents are not at all willing to recommend others to invest
in mutual fund. So, to motivate people to invest in mutual funds broking houses to
be organize to get more awareness among the people.

Mazhar et.al. (2018) “A Study on Mutual Fund Performance and Factors Affecting
Mutual Fund Investments by Retail Investors in Eastern (UP)” the purpose of the
research was conducted to regulate behaviour of the investors and investment
preferences in eastern part U.P. Investors with different personality have different
way of the investments, investors with different needs having the different objective
of investments. To also analysis association between investment objective and
investment attitude of the respondents and to know various factors that may affect
selection of mutual fund schemes directly or indirectly. After analysis based on the
respondents, they concluded that investors with different categories (gambling,
cautious and rational) have different optimal of investment objective while making
investment in mutual funds. So, when investors investing in mutual fund, they have
their own behaviour and it depend on their attitude.

J K Raju et.al. (2018) The study aims at finding out the behaviour and perception of
the investors in mutual fund in Devanagari city. The study shows that high income
investors, invested their money in mutual fund and low-income investors have
invested their money in systematic investment plan with their savings motive and
the low-income investors not at all investment their money in mutual funds due to
lack of knowledge in mutual fund and the study also reveals most of the respondents
fear to invest in mutual fund due to unsecure and fear to invest in mutual fund.

Vipin Kumar & Preeti Bansa (2018) This research paper has focused more attention
on various factors that highlights investor’s perception on mutual funds. It was
studied that the schemes of mutual fund investment were not all aware to many of
the investors, who are following their own traditional pattern of the investment such
as bank deposit and investment in postal savings. As in this study most of mutual
fund investors used to invest in mutual fund for not more than 3 (three) years and

24
they automatically used to quit from the mutual funds because as they were not
satisfying from the returns. It was also founded that the maximum investors of the
mutual fund should depend upon their brokers and agent to invest in mutual fund.

Sridevi (2019): The study was conducted to examine the investors behaviour
towards mutual fund investment. The study was conducted in Kerala, with a sample
of 150 individual investors has been selected. The study was concluded that the
Indian mutual fund industry is growing at good pace and it also concluded that there
are people who are outside the umbrella of the mutual fund industry.

Jayalakshmi and Saraswathy (2019) In this research authors want to know the investors
attitude towards Systematic Investment Plan in mutual funds and to study the various
factors which motivate the investors to in mutual fund through SIP (Systematic Investment
Plan). The study was conducted in Kozhikode city in Kerala city with the help of 160
investors by sampling method. The result of the study concludes in a positive manner that
means most of the respondents made positive behavioural towards systematic investment
plan in mutual funds. And also find out the factors which influence them to invest in mutual
fund (reduction in risk, monthly investment facility and portfolio diversification and etc.,

Jaison David et.al. (2019) The research paper was made to help taxpayers’
investors to get good returns for their investment and those investors who want to
invest in SIP or Lumpsum. The research paper compares between five equity linked
mutual fund schemes invested in 3 different way by the investors and also compares
the return these investment after lock in period. The authors used secondary data
for this research and after survey they concluded that systematic investment plan
will be best option to the investors second option will be value averaging and the
third option comes lump-sum method for the investments with the smallest possible
returns.

Pragya Gupta (2019) The purpose of study was based on Systematic Investment
Plan which has become an alternative investment plan for large numbers of
investors and to know the motivating factors which attract the investors to invest in
SIP. The study concluded that mutual fund sip is monthly basis investment plan
where every investor is willing to invest in sip to make high returns with less-risk
taking it also concluded that this type of investment made people to make more
savings and become more simple, available and reasonable. The sip as lot of

25
benefits includes such as liquidity, diversification, monthly instalments, convenience
etc which will better than other type of investment platform.

Alpesh Gajera et.al. (2020) The research was undertaken to compare the risk and
return of the investment in mutual fund through SIP or Lump sum investment. The
small investors also have more doubts regarding whether where to invest their funds
in lumpsum or sip. The analysis given a very clear cut that lumpsum investment is
better than compared to sip investment as far risk and return conditions. The
lumpsum investment is always controversial point and also of great attraction for
individual or retail investors. Commonly every investor makes more conditions while
investing their funds such as flexibility, secure of funds and liquidity etc.

Ankit Kumar et.al. (2020) In this study researches want to know what are the various
factor that attract the investors to invest in mutual fund. The researchers also
explained how the Mutual funds shaping their strategies to attract the investors to
invest more in market platform. From the analysis researches concluded that mutual
funds new advantage for the beginners and investors from each selected sector
such as semi-urban, urban and rural almost all are in same perception rural areas
investors more interest in dividend variable whereas same condition in case of
capital appreciation and semi-urban area people are influenced for liquidity.

26
 CHAPTER 3

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problems. It

may be understood as a science of studying how research is done scientifically. It
includes the overall research design, the sampling procedure, data collection
method and analysis procedure

3.Research Design:

A research design is considered as the framework or plan for a study that guides as
well as helps the data collection and analysis of data. The study design selected for
this learning for both open research design and premise testing research design.

3.1 Descriptive Research Design

The reason taking descriptive research design is to get the features of individual an
objective or the variable of attention in a situation. A descriptive research design is
one that simply describes something such as descriptive something such as
demographic characteristics of group or customers of products.

3.2 Sampling Technique:

3.2.1 Convenience sampling method:

A Convenience sample is one of the main types of non-probability sampling
methods. A convenience sample is made up of people who are easy to reach.

3.3 SOURCES OF DATA

3.3.1 Primary data

Primary data, by contrast, are collected by the investigator conducting the research.
Primary data refer to demographic and socio-economic characteristics of the
investors, behaviour and opinion of investors, their awareness and knowledge.

3.3.2 Secondary data

Secondary data has collected been collected from journals, Books, Websites and
magazines.

27
3.3.3 Questionnaire

The questionnaire tried to capture the responses of the customers mainly from the
Mutual fund investors and their key deliverables, derived from the survey conducted,
and a few questions have been included to gauge the level of satisfaction and to
gain insight into customer expectations.

3.4 STRUCTURE OF QUESTIONNARIE:

There are three broad types of questions are used in this study are open ended
questions, closed ended questions and Likert scale method. Open questions enable
respondents to answer as they wish. Closed questions provide respondents with a
list of options from which they choose. Likert scale provide respondents agree to
particular statement.

3.5 SAMPLE SIZE:

A sample size is a component of population which is cautiously selected to signify

the population. The study was conducted with the sample size of 130 investors.

3.6 PERIOD OF STUDY:

The period of study from January 2021 To March 2021 which is three months of
study

3.7 HYPOTHESIS TEST

HYPOTHESIS: 1

Chi-square

Null Hypothesis (H0): There is no association between investment objective and

investment period.

HYPOTHESIS: 2

ANOVA

Null Hypothesis (H0): There is no significant difference between education

qualification and opinion on mutual funds generate best returns for its investors.

Null Hypothesis (H0): There is no significant difference between annual-income

and mutual fund have outperformed the market returns.

28
HYPOTHESIS: 3
Correlations
Null Hypothesis (H0): There is no correlation between respondence opinion on
security of mutual fund and whether mutual fund discloses all the relevant
information to its investors.

3.8 ANAYLTICAL TOOLS:

The analytical tools used are SPSS for testing the One-way ANOVA test, chi-square
test in SPSS tool and correlation in SPSS tool.

29
 CHAPTER 4

DATA ANALYSIS AND INTERPERATATION

Table 4.1 Respondents based on the age.

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Below 20 Years 06 4.6

21-30 Years 54 41.5
31-40 Years 29 22.3
41-50 Years 24 18.5
Above 50 Years 17 13.1
TOTAL 130 100
Source: Primary data

AGE
50
40
41.5
30
20
22.3
18.5
10
4.6 13.1
0

Below 20 Years 21-30 Years 31-40 Years 41-50 Years Above 50 Years

Chart 4.1 Age of the respondents

INTERPRETATION:
From the above table it is interpreted that 4.6% of the respondents are the age below
of 20 years, 41.5% of the respondents are in the age group of between 21-30, 22.3%
of the respondents are in the age group of 31-40 years ,18.5% of the respondents
are in the age group of between 41-50 years, there are 13.1% of the respondents
are the age above 50 years.

30
Table 4.2 Respondents based on the Gender.

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

MALE 72 55.4
FEMALE 58 44.6
TOTAL 130 100
Source: Primary data

GENDER

44.6 Male
55.4 Female

Chart 4.2 Gender of the respondents

INTERPRETATION:

From the above table it is interpreted that the total respondents are 130 from which
55.4% of the respondents are Male and 44.6 %respondents are women.

31
 Table 4.3 Respondents based on the Education Qualification:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

HSC/SSLC 20 15.4
Under Graduate 35 26.9
Post Graduate 46 35.4
Professional 22 16.9
Others 07 5.4
TOTAL 130 100
Source: Primary data

Education Qualfication
40

35

30

25

20

15

10

0
HSC/SSLC Under Graduate Post Gradaute Professional Others

Education Qualfication

Chart 4.3 Education Qualification of the respondents

INTERPRETATION:

From the above table it can be interpreted that 15.4% of the respondents are
HSC/SSLC, 26.9% of the respondents are under graduate, 35.4% of the
respondents are post graduate, 16.9% of the respondents are professional and
5.4% of the respondents are others.

32
Table 4.4 Respondents based on the Occupation:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Government employee 30 23.1

Private employee 53 40.8
Business 25 19.2
Self-employed
12 9.2
Professional
Others 10 7.7
TOTAL 130 100
Source: Primary data

Occupation
OTHERS 7.7

SELF EMPLOYED PROFESSIONAL 9.2

BUSINESS 19.2

PRIVATE EMPLOYEE 40.8

GOVERNMENT EMPLOYEE 23.1

0 5 10 15 20 25 30 35 40 45

Occupation

Chart 4.4 Occupation of the respondents

INTERPRETATION:

From the above table it is interpreted that 23.1% of the respondents are Government
employee, 40.8% of the respondents are private employee, 19.2% of the
respondents are Own business, 9.2%of the respondents are self-employed
professional and 7.7% of the respondents are others occupation.

33
Table 4.5 Respondents based on the annual- income:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Less than 2,50,000 41 31.5

2,50,000-5,00,000 53 40.8
5,00,000-10,00,00 23 17.7
Above 10,00,000 13 10
TOTAL 130 100
Source: Primary data

ANNUAL INCOME
50

40
40.8
30
31.5
20
17.7
10
10
0

Less than 2,50,000 2,50,000-5,00,000 5,00,000-10,00,000 Above 10,00,000

Chart 4.5 Shows annual-income of the respondents

INTERPRETATION:

From the above table it is interpreted that 31.5% of the respondents annual-income
is less than 2,50,000, 40.8% of the respondents annual -income is between
2,50,000-5,00,000, 17.7% of the respondents annual- income is between 5,00,000-
10,00,000, 10% of the respondents annual-income is above 10,00,000.

34
Table 4.6 Respondents based on the savings from earnings:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Less than 2000 31 23.8

2,001-5,000 48 36.9
5,001-10,000 24 18.5
10,001-20,000 17 13.1
Above 20,001 10 7.7
TOTAL 130 100
Source: Primary data

Savings from earnings

7.7
13.1 23.8

18.5
36.9

Less than 2000 2,001-5,000 5,001-10,000 10,001-20,000 Above 20,001

Chart 4.6 Savings from earnings of the respondents.

INTERPRETATION:

From the above table it is interpreted that 23.8% of the respondents are saving less
than 2000rs, 36.9% of the respondents are saving between 2,001-5000rs, 18.5% of
the respondents are savings between 5,001-10,000rs, 13.1% of the respondents
are savings between 10,001-20,000rs, 7.7% of the respondents are saving above
20,001 rupees.

35
Table 4.7 Respondents based on the Investment objective:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Diversification 12 9.2
Better return & safety 46 35.4
Reduction in risk and cost 30 23.1
Regular income 27 20.8
Tax benefit 15 11.5
TOTAL 130 100
Source: Primary data

INVESTMENT OBJECTIVE
35.4
40
23.1 20.8
30
20 9.2 11.5
10
0
Diversfication Better return Reduction Regular Tax benefit
& safety risk & cost income

INVESTMENT OBJECTIVE

Chart 4.7 Investment objective of the respondents

INTERPRETATION:

From the above table it is interpreted that 9.2% of the respondents that investment
objective is diversification, 35.4% of the respondents investment objective is better
return and safety, 23.1% of the respondents investment objective is reduction in risk
and cost, 20.8% of the respondents investment objective is for regular income and
11.5% of the respondents investment objective is for tax benefit.

36
Table 4.8 Respondents based on investment period:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

5-10 Years 46 35.4

11-15 Years 43 33.1
16-20 Years 23 17.7
Above 21 Years 18 13.8
TOTAL 130 100
Source: Primary data

INVESTMENT PERIOD
5-10 Years 11-15 Years 16-20 Years Above 21 Years
35.4

33.1

17.7

13.8
5-10 YEARS 11-15 YEARS 16-20 YEARS ABOVE 21 YEARS

Chart 4.8 Investment period of the respondents:

INTERPRETATION:

From the above table it is interpreted that 35.4% of the respondents are investment
period is 5-10 Years, 33.1% of the respondent’s investment period is 11-15 Years,
17.7% of the respondent’s investment period is 16-20 Years and 13.8 % of the
respondent’s investment period is above 21 Years.

37
Table 4.9 Respondents based on the awareness on SIP (Systematic
Investment Plan):

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Extremely aware 46 35.4

Very aware 33 25.4
Moderately aware 25 19.2
Slightly aware 19 14.6
Not at all aware 07 5.4
TOTAL 130 100
Source: Primary data

Awareness about SIP

40

30

20
35.4
25.4
10 19.2
14.6
5.4
0

Extremely aware Very aware Moderately aware Slightly aware Not at all aware

Chart 4.9 Shows awareness on SIP of the respondents

INTERPRETATION:

From the above table it is interpreted that 35.4% of the respondents are extremely
aware about the Systematic Investment Plan (SIP), 25.4% of the respondents are
very aware, 19.2% of the respondents are moderately aware. 14.6% of the
respondents are slightly aware and 5.4% of the respondents are not at all aware
about the Systematic Investment Plan (SIP).

38
Table 4.10 Respondents based on their return from Systematic Investment
Plan:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Equity 36 27.7
Income fund 49 37.7
Glit fund 31 23.8
Balanced fund 14 10.8
TOTAL 130 100
Source: Primary data

Better returns from SIP

10.8
27.7 Equity fund

23.8 Income fund

Glit fund
Balance fund
37.7

Chart 4.10 Better returns from sip of the respondents

INTERPRETATION:

From the above table it is interpreted that 27.7% of the respondents say equity fund
gives better return from Systematic investment plan, 37.7% of the respondents say
that income fund gives better return from systematic investment plan, 23.8% of the
respondents say that glit funds gives better return from systematic investment plan
and 10.8% of the respondents say that balance funds give better return from
systematic investment plan.

39
Table 4.11 Respondents based on the influenced to invest in mutual fund
through SIP:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Friends 43 33.1
Relative 26 20
Media 31 23.8
Brokers 21 16.2
Others 09 6.9
TOTAL 130 100
Source: Primary Data

Influenced to invest in SIP

Influenced to invest in SIP

Others 6.9
Brokers 16.2
Media 23.8
Relatives 20
Friends 33.1

0 5 10 15 20 25 30 35

chart 4.11 Influenced to invest in sip of the respondents

INTERPRETATION:

From the above table it is interpreted that 33.1% of the respondents are influenced
by friends to invest in mutual funds through SIP, 20% of the respondents are
influenced by relatives, 23.8% of the respondents are influenced by media, 16.2%
of the respondents are influenced by brokers and 6.9% of the respondents are got
influenced by others.

40
Table 4.12 Respondents based on the investment in SIP:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Less than 10,000 32 24.6

10,000 to 25,000 55 42.3
25,000 to 50,000 19 14.6
Above 50,000 17 13.1
Not invested 07 5.4
TOTAL 130 100
Source: Primary data

Investment in SIP
45 42.3
40
35
30
24.6
25
20
14.6 13.1
15
10 5.4
5
0
Less than 10,000 10,000 to 25,000 25,000 to 50,000 Above 50,000 Not invsted

Investment in SIP

Chart 4.12 Investment in sip of the respondents

INTERPRETATION:

From the above the table it is interpreted that 24.6% of the respondents had invested
less than 10,000 in Systematic Investment Plan, 42.3% of the respondents had
invested 10,000 to 25,000, 14.6% of the respondents had invested 25,000 to
50,000, 13.1% of the respondents had invested above 50,000 and 5.4% of the
respondents are not at all invested in Systematic Investment Plan.

41
Table 4.13 Respondents based on the schemes/funds of Systematic
Investment Plan in invested.

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

Equity oriented 42 32.3

Debt oriented 54 41.5
Balanced fund 34 26.2
TOTAL 130 100
Source: Primary data

SCHEMES/FUNDS OF SIP INVESTORS

INVESTED
Schemes/funds of SIP investors invested

50
40
30
41.5
20 32.3 26.2
10
0
Equity oriented Debt oriented Balanced oriented

Chart 4.13 Schemes/funds of sip investors invested

INTERPRETATION:

From the above table it is interpreted that 32.3% of the respondents invested in
equity-oriented schemes/fund of systematic investment plan, 41.5% of the
respondents invested in debt-oriented schemes/funds of systematic investment
plan, 26.2% of the respondents invested in balance-oriented schemes/funds of
systematic investment plan.

42
Table 4.14 Respondents based on the Systematic Investment Plan whether
fulfil the objective of maximizing the return from the investment:

PARTICULARS NO OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
Strongly agree 59 45.4
Agree 44 33.8
Neither agree nor disagree 14 10.8
Disagree 07 5.4
Strongly disagree 06 4.6
TOTAL 130 100
Source: Primary data

SIP schemes whether fulfil the objective of

maximizing the return from the
investment
45.4
50 33.8
10.8 5.4 4.6
0
Strongly agree Agree Neither agree nor disagree Disagree Strongly disgaree

SIP IN MUTUAL FUND SCHEME WHETHER FULFIL OBJECTIVE OF MAXIMIXING THE RETURN FROM THE
INVESTMENT DO YOU AGREE

Chart 4.14 SIP schemes whether fulfil objective of maximizing the return from
the investment do you agree.

INTERPRETATION:

From the above table it is interpreted that 45.4% of the respondents strongly agree
that the systematic investment plan schemes fulfil the objective of maximizing the
returns from the investment, 33.8% of the respondents agree, 10.8% of the
respondents neither agree nor disagree, 5.4% of the respondents disagree and
4.6% of the respondents strongly disagree with the systematic investment plan
schemes fulfil the objectives of maximizing the returns from the investment they
made.

43
Table 4.15 Respondents based on the primary reason to invest in mutual fund
through SIP:

PARTICULARS NO OF PERCENTAGE OF
RESPONDENTS RESPONDENTS

Easy to invest 51 39.2

Portfolio diversification 27 20.8
Professional management service 20 15.4
Risk prediction 14 10.8
Monthly investment- (small
18 13.8
amount to investment)
TOTAL 130 100
Source: Primary data

Primary reason to invest in mutual funds

through SIP
Easy to invest

13.8 Portfolio diversifiaction

10.8 39.2
15.4 Professional mangement service

20.8
Risk prediction

Chart 4.15 Primary reason to invest in mutual funds through sip

INTERPRETATION: From the above table it is interpreted that 39.2% of the

respondents say that easy to invest is the primary reason to invest in mutual funds
through SIP, 20.8% of the respondents say portfolio, 15.4% of the respondents say
that professional management service, 10.8% of the respondents say that risk
prediction and 13.8% say that monthly investment is the primary reason to invest in
mutual funds through SIP.

44
Table 4.16 Respondents based on the need and convinces to invest or
withdraw in mutual Funds

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 30 23.1
Agree 46 35.4
Neither agree nor disagree 25 19.2
Disagree 18 13.8
Strongly disagree 11 8.5
TOTAL 130 100
Source: Primary data

Need and convinces to invest

or withdraw in mutual funds
NEEDS AND CONVINES TO INVEST OR WITHDRAW IN MUTUAL FUND

35.4

23.1
19.2
13.8
8.5

Strongly agree Agree Neither agree nor Disagree Strongly disagree

disagree

chart 4.16 Need and convinces to invest or withdraw in mutual fund of the
respondents

INTERPRETATION:

From the above table it is interpreted that 23.1% of the respondents strongly agree
that the needs and convinces to invest or withdraw in mutual funds, 35.4% of the
respondents agree, 19.2% of the respondents neither agree nor disagree, 13.8% of
the respondents disagree and 8.5% of the respondents strongly disagree that the
investor withdraw in mutual funds.

45
Table 4.17 Respondents based on the mutual funds generates the best return:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 35 26.9
Agree 50 38.5
Neither agree nor disagree 22 16.9
Disagree 15 11.5
Strongly disagree 08 6.2
TOTAL 130 100
Source: Primary data

Mutual Funds generates the best returns

45
40
35 38.5
30
25
26.9
20
15
16.9
10
11.5
5 6.2
0
Strongly agree Agree Neither agree nor Disagree Strongly disagree
disagree

Mutual Funds generates best returns

Chart 4.17 Mutual funds generate best returns of the respondents

INTERPRETATION:

From the above table it is interpreted that 26.9% of the respondents strongly agree
that the mutual funds generate best returns, 38.5% of the respondents agree, 16.9%
of the respondents neither agree nor disagree, 11.5% of the respondents disagree
and 6.2% of the respondents strongly disagree with the mutual funds generates best
returns.

46
Table 4.18 Respondents opinion as whether mutual funds has well-diversified
portfolio securities:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 38 29.2
Agree 42 32.3
Neither agree nor disagree 24 18.5
Disagree 19 14.6
Strongly disagree 07 5.4
TOTAL 130 100
Source: Primary data

Mutual funds has well-diversified portfolio of securities

5.4%

14.6% 29.2%

18.5%
32.3%

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

Chart 4.18 Mutual fund has well-diversified Portfolio Securities of the

respondents

INTERPRETATION:

From the above table it is interpreted that 29.2% of the respondents strongly agree
that mutual funds has well-diversified portfolio of securities, 32.3% of the
respondents agree, 18.5% of the respondents neither agree nor disagree,14.6% of
the respondents disagree and only 5.4% of the respondents told that they strongly
disagree with mutual funds has well-diversified portfolio securities.

47
Table 4.19 Respondents based on the mutual funds has met the objectives for
which it is established:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 39 30
Agree 46 35.4
Neither agree nor disagree 29 22.3
Disagree 10 7.7
Strongly disagree 06 4.6
TOTAL 130 100
Source: Primary data

Mutual Funds has met the objectivies for

which it is established
Strongly disagree Disagree Neither agree nor disagree Agree Strongly agree

Strongly agree 30
Agree 35.4
Neither agree nor disagree 22.3
Disagree 7.7
Strongly disagree 4.6

0 5 10 15 20 25 30 35 40

Chart 4.19 Mutual funds has met the objectives for which it is established:

INTERPRETATION: From the above table it is interpreted that 30% of the

respondents strongly agree that mutual fund has met the objectives for which it is
established, 35.4% of the respondents agree, 22.3% of the respondents neither
agree nor disagree, 7.7% of the respondents and 4.6% of the respondents strongly
disagree that mutual fund has met the objectives for which it is established.

48
Table 4.20 Respondents based on whether mutual funds have outperformed
the market returns:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 34 26.2
Agree 53 40.8
Neither agree nor disagree 22 16.9
Disagree 15 11.5
Strongly disagree 06 4.6
TOTAL 130 100
Source: Primary data

Mutual Funds have outperformed the market

Strongly agree Agree
returns
Neither agree nor disagree Disagree Strongly disagree

40.8
26.2
16.9
11.5
4.6

Strongly agree Agree Neither agree Disagree Strongly

nor disagree disagree

Chart 4.20 Mutual funds have outperformed the market returns of the
respondents:

INTERPRETATION:

From the above table it is interpreted that 26.2% of the respondents strongly agree
that mutual funds have outperformed the market returns, 40.8% of the respondents
agreed, 16.9% of the respondents neither agree nor disagree, 11.5% of the
respondents disagree and 4.6% of the respondents strongly disagree that mutual
fund have outperformed the market returns.

49
Table 4.21 Respondents based on the mutual fund has been helpful in the
development of Indian capital markets:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 25 19.2
Agree 37 28.5
Neither agree nor disagree 23 17.7
Disagree 33 25.4
Strongly disagree 12 9.2
TOTAL 130 100
Source: Primary data

Mutual fund has been helpful in the

development of Indian capital markets
Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

30 28.5
25.4
25

19.2
20 17.7

15

9.2
10

0
Strongly agree Agree Neither agree nor Disagree Strongly disagree
disagree

Chart 4.21 Mutual fund has been helpful in the development of Indian capital
markets of the respondents

INTERPRETATION:

From the above table it is interpreted that 19.2% of the respondents strongly agree
that mutual fund has been helpful in the development of Indian capital market,
28.5% of the respondents agree, 17.7% of the respondents neither agree nor
disagree, 25.4% of the respondents disagree and 9.2% of the respondents strongly
disagree.

50
Table 4.22 Respondents based on the mutual funds are less risky way to
invest:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 32 24.6
Agree 40 30.8
Neither agree nor disagree 26 20
Disagree 18 13.8
Strongly disagree 14 10.8
TOTAL 130 100
Source: Primary data

Mutual fund are less risky way to invest as compared to directly invest in
stock market

10.8%
24.6% Strongly agree
13.8%
Agree
Neither agree nor disagree
20%
30.8% Disagree
Strongly disagree

Chart 4.22 Mutual fund are less risky way to invest as compared to directly
invest in stock market

INTERPRETATION:

From the above table it is interpreted that 24.6% of the respondent strongly agree
that the mutual funds are less risky way to invest compared to directly invest in stock
market, 30.8% of the respondents agree, 20% of the respondents neither agree nor
disagree,13.8% of the respondents and 10.8% of the respondents strongly disagree
that the mutual funds are less risky way to invest compared to directly invest in stock
market.

51
Table 4.23 Respondents based on the mutual funds is good to respond to
market volatility:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 36 27.7
Agree 44 33.8
Neither agree nor disagree 23 17.7
Disagree 19 14.6
Strongly disagree 08 6.2
TOTAL 130 100
Source: Primary data

Mutual fund are good to respond market

volatility
Mutual fund

40

30 33.8
20 27.7

10 17.7
14.6
6.2
0
Strongly agree Agree Neither agree nor Disagree Strongly disagree
disagree

Chart 4.23 Mutual funds are good respond to market volatility

INTERPRETATION:

From the above table it is interpreted 27.7% of the respondents strongly agree that
the mutual fund is good to respond to market volatility, 33.8% of the respondents
agree, 17.7% of the respondents neither agree nor disagree, 14.6% of the
respondents are disagree and 6.2% of the respondents are strongly disagree with
the statement.

52
Table 4.24 Respondents based on the money invested in mutual fund is very
secure:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 24 18.5
Agree 55 42.3
Neither agree nor disagree 28 21.5
Disagree 16 12.3
Strongly disagree 07 5.4
TOTAL 130 100
Source: Primary data

Money invested in mutual fund is very secure

50

40

30
42.3
20
18.5 21.5
10 12.3
5.4
0

Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree

Chart 4.24 Money invested in mutual fund is very secure

INTERPRETATION:
From the above table it is interpreted that 18.5% of the respondents are strongly
agree that the money invested in mutual fund is very secure, 42.3% of the
respondents agree, 21.5% of the respondents neither agree nor disagree,12.3% of
the respondents disagree and 5.4% of the respondents are strongly disagree with
the statement.

53
Table 4.25 Respondents based on whether mutual fund discloses all the
relevant information to its investors.

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 39 30
Agree 51 39.2
Neither agree nor disagree 21 16.2
Disagree 10 7.7
Strongly disagree 09 6.9
TOTAL 130 100
Source: Primary data

Mutual fund discloses all the relevant information

to its investor from time to time
40
20
0
STROMGLY AGREE AGREE NEITHER AGREE NOR DISAGREE STRONGLY
DISAGREE DISAGREE

Mutual fund discloses all the relevant information to its investor from time to time

Chart 4.25 Mutual fund discloses all the relevant information to its investor
from time to time of the respondents:

INTERPRETATION:

From the above table it is interpreted that 30% of the respondents are strongly agree
with the statement that mutual fund discloses all the relevant information to its
investors from time to time, 39% of the respondents agree, 16.2% of the
respondents neither agree nor disagree, 7.7% of the respondents are disagree and
6.9% of the respondents are strongly disagree with statement that mutual fund
discloses all the relevant information to its investors from time to time.

54
Table 4.26 Respondents based on the opinion on security of mutual fund.

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Strongly agree 36 27.7
Agree 44 33.8
Neither agree nor disagree 30 23.1
Disagree 14 10.8
Strongly disagree 06 4.6
TOTAL 130 100
Source: Primary data

Opinion on security of mutual fund

4.6%

10.8%
27.7% Strongly agree
Agree
Neither agree nor disagree
23.1%
Disagree
Strongly disagree
33.8%

Chart 4.26 Investor’s opinion on security of mutual fund

INTERPRETATION:

From the above table it is interpreted that 27.7% of the respondents strongly agreed
when market goes down investors tend to sell some of risker investment and put
their money in safer side. 33.8% of the respondents are agreed, 23.1% of the
respondents are neither agree nor disagree, 10.8% of the respondents disagreed
and 4.6% of the respondents are strongly disagreed with the statement.

55
Table 4.27 Respondents based on the facing any problem while investing in
mutual fund:

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Always 17 13.1
Often 12 9.2
Rarely 36 7.7
Sometimes 10 27.7
Never 55 42.3
TOTAL 130 100
Source: Primary data

Facing any problem while investing in mutual fund

Never 42.3

Sometimes 27.7

Rarely 7.7

Often 9.2

Always 13.1

0 5 10 15 20 25 30 35 40 45

Always Often Rarely Sometimes Never

Chart 4.27 Facing any problem while investing in mutual fund:

INTERPRETATION:

From the above table it is interpreted that 13.1% of the respondents are always
facing a problem while investing in mutual funds, 9.2% of the respondents are often
facing a problem while investing in mutual fund, 7.7% of the respondents are rarely
facing a problem while investing in mutual fund, 27.7% of the respondents are
sometimes face a problem while investing in mutual fund and 42.3% of the
respondents are never face a problem while investing in mutual fund.

56
Table 4.28 Respondents based on the level of satisfaction

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS
Highly satisfied 28 21.5
Satisfied 43 33.1
Neutral 32 24.6
Dissatisfied 17 13.1
Highly satisfied 10 7.7
TOTAL 130 100
Source: Primary data

Level of satisfaction

7.7%
21.5%
13.1%

24.6%
33.1%

Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Chart 4.28 Level of satisfaction of the respondents:

INTERPRETATION:

From the above table it is interpreted that 21.5% of the respondents say highly
satisfied from their returns in mutual fund through sip, 33.1% of the respondents say
that they satisfied from their returns in mutual fund through sip, 24.6% of the
respondents say that they neither satisfied or dissatisfied from their returns in mutual
fund through sip, 13.1% of the respondents say that they dissatisfied after seeing
their returns in mutual fund through sip and 7.7% of the respondents are highly
dissatisfied from their returns in mutual fund through sip.

57
Table4.29 Respondents based on the choose the best returns
scheme/company.

PARTICULARS NO OF PERCENTAGE OF
RESPONDENTS RESPONDENTS
Systematic Investment Plan Income
40 30.8
fund
Grind lays super save 09 6.9
Chole Triple ace 04 3.1
IDBI prime income fund 23 17.7
Prudential ICICI flexible income plan 29 22.3
Templeton India Income builder 10 7.7
Others 15 11.5
TOTAL 130 100
Source: Primary data

Choice on best copany

Systematic Investment Plan Grindlays super saver

Chole Triple ace IDBI prime income fund
Prudential ICICI flexible income plan Templeton India Income builder
Others

Chart 4.29 Choice on best return company

INTERPRETATION:

From the above table it is interpreted that 30.8% of the respondents are satisfied
with the returns from systematic investment plan income fund, 6.9% of the
respondents are grindlays company, 3.1% of the respondents chola triple ace
company, 17.7% of the respondents IDBI prime income fund, 22.3% of the
respondents ICICI prudential flexible income fund, 7.7% of the respondents are
Templeton Indian income plan and 11.5% of the respondents are satisfied with the
returns from other companies.

58
Table 4.30 Respondents based on the recommend others to invest in mutual
fund through systematic investment plan:

PARTICULARS NO OF PERCENTAGE OF
RESPONDENTS RESPONDENTS

Yes 98 75.4
No 32 24.6
TOTAL 130 100
Source: Primary data

Recommend others to invest in mutual fund

through SIP
No
24.6%

Yes
74.6%

Yes No

Chart 4.30 Recommend others to invest in mutual fund through SIP of the
respondents.

INTERPRETATION:

From the above table it is interpreted that 74.6% of the respondents are interest to
recommend others to invest in mutual fund through sip and 24.4% of the
respondents are not interest to others to invest in mutual fund through sip.

59
 4.31 CHI-SQUARE TEST:

Table 4.31 The table showing the relationship between investment objective
and investment period.
Null hypothesis (Ho):
There is no association between investment objectives and investment period.
Alternate hypothesis (H1)
There is association between investment objective and investment period.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Investment objective *
130 99.2% 1 0.8% 131 100.0%
Investment period

INVESTMENT INVESTMENT PERIOD TOTAL

OBJECTIVE

5-10 Years 11-15 Years 16-20 Years Above 21 Years

Diversification Count 12 0 0 0 12
Better return & safety Count 34 12 0 0 46
Regular income Count 0 1 23 3 27
Tax benefit Count 0 0 0 15 15
Total Count 46 43 23 18 130

Chi-square Test

Value df Asymp. Sig. (2-

sided)

Pearson Chi-Square 296.689a 12 .000

Likelihood Ratio 261.619 12 .000
Linear-by-Linear Association 113.013 1 .000
N of Valid Cases 130
a. 10 cells (50.0%) have expected count less than 5. The minimum
expected count is 1.66.

60
RESULTS: A chi-square test of independent was performed to examine the
association between investment objective and investment period.

Results of the Chi-square test of independence showed that the calculated value is
greater than the tabulated value, we accept the alternate hypothesis and hence
there is a significant association between investment objective and investment
period. Hence, the Alternative hypothesis [H1] is accepted

61
4.32 The tables showing the relationship between education qualification
and Mutual funds generate best return for its investors.
Null Hypothesis (H0): There is no significant difference between education
qualification and opinion on mutual funds generate best returns for its investors.
Alternate Hypothesis (H1): There is significant difference between education
qualification and opinion on mutual fund generate best returns for its investors.

Descriptives**
EDUCATION QUALIFICATION
95% Confidence Interval
for Mean
Std. Std. Lower Upper
N Mean Deviation Error Bound Bound Minimum Maximum
Agree 48 3.48 1.185 .171 3.14 3.82 1 5
Disagree 15 3.53 1.246 .322 2.84 4.22 1 5
Neither agree nor 29 2.97 1.451 .269 2.41 3.52 1 5
disagree
Strongly agree 31 3.35 1.473 .265 2.81 3.90 1 5
Strongly disagree 7 3.57 1.618 .612 2.07 5.07 1 5
Total 130 3.35 1.345 .118 3.11 3.58 1 5

ANOVA
EDUCATION QUALIFICATION

Sum of Squares df Mean Square F Sig.

Between Groups 5.934 4 1.483 .815 .518
Within Groups 227.489 125 1.820

Total 233.423 129

RESULTS:
ANOVA was performed to examine the difference among education qualification
and opinion mutual funds best return for its investors.
Results of ANOVA shows that significant value is higher than 0.05, we accept null
hypothesis and reject alternate hypothesis. Therefore, there is no significant
difference between education qualification and opinion on mutual fund generate
best return for its investors. Hence, the null hypothesis is accepted (H0).

62
Table 4.33 The table showing the relationship between annual-income and
mutual fund have outperformed the market returns:
Null Hypothesis (H0): There is no significant difference between annual-income
and mutual fund have outperformed the market returns.
Alternate Hypothesis (H1): There is significant difference between annual-
income and mutual fund have outperformed the market returns.

Descriptives**
ANNUAL INCOME
95% Confidence Interval
for Mean
Std. Std. Lower Upper
N Mean Deviation Error Bound Bound Minimum Maximum
Agree 53 2.32 1.283 .176 1.97 2.67 1 4
Disagree 15 1.80 1.265 .327 1.10 2.50 1 4
Neither agree nor 22 2.55 1.299 .277 1.97 3.12 1 4
disagree
Strongly agree 34 2.38 1.326 .227 1.92 2.85 1 4
Strongly disagree 6 2.50 1.378 .563 1.05 3.95 1 4
Total 130 2.32 1.295 .114 2.10 2.55 1 4

ANOVA
ANNUAL INCOME

Sum of Squares df Mean Square F Sig.

Between Groups 5.500 4 1.375 .815 .518
Within Groups 210.931 125 1.687

Total 216.431 129

RESULTS:

Results of ANOVA shows that significant value is greater than 0.05, we

accept the null hypothesis(H0) and reject alternate hypothesis (H1).
Therefore, there is no significant difference between annual-income and
mutual fund have outperformed the market returns. Hence, the null
hypothesis is accepted.

63
Table 4.34 The table showing relationship between respondent’s opinion on
security of mutual fund and whether mutual fund discloses all the relevant
information to its investor
Null Hypothesis(H0): There is no correlation between respondent’s opinion on
security of mutual fund and whether mutual fund discloses all the relevant
information to its investors.
Alternate Hypothesis (H1): There is correlation between respondent’s opinion on
security of mutual fund and whether mutual fund discloses all the relevant
information to its investors.

Correlations
Correlations
Whether mutual Funds
Respondent’s opinion on discloses all the relevant
security of mutual fund information to its investor
Money Invested in mutual fund is Pearson 1 .109
very secure Correlation
Sig. (2-tailed) .219

N 130 130
Mutual Funds discloses all the Pearson .109 1
relevant information to its investor Correlation
from time to time Sig. (2-tailed) .219

N 130 130

RESULTS:
The results from table 4.34 indicates that respondent’s opinion on security of
mutual fund and whether mutual fund discloses all the relevant information to its
investors are positively and significantly correlated with each other. The corelation
value is 0.109. hence the two variables are low corelation.

64
 CHAPTER 5

5.1 FINDINGS:

1) Most (41.5%) of the Investors are in the age group between 21-30 years.

2) Majority (55.4%) of investors are male.

3) Most (35.4%) of the investors are post graduate.

4) Most (40.8%) of the investors are private employee.

5) Most (40.8%) of the investors Annual income is between 2,50,000-5,00,000.

6) Most (36.9%) of the investors are saving between 2,001-5,000 rupees from
earnings.

7) Most (35.4%) of the investors of Investment objective is better return & safety.

8) Most (35.4%) of the investors Investment period is 5-10 years.

9) Most (35.4%) of the investors are extremely aware about the systematic
investment plan.

10) Most (37.7%) of the investors say that income fund gives better return from
systematic investment plan.

11) Most (33.1%) of the investors are influenced via friends to invest in mutual fund
through sip.

12) Most (42.3%) of the investors are invest between 10,000 to 25,000 in systematic
investment plan.

13) Most (41.5%) of the investors are invested in debt-oriented schemes/funds of

systematic investment plan.

14) Most (45.4%) of the investors are strongly agree that the systematic investment
plan in mutual fund schemes fulfil the objective of maximizing the return from the
investment.

15) Most (39.2%) of the investors say that easy to invest is a primary reason to
invest in mutual fund through sip.

65
16) Most (35.4%) of the investors are agree that the need and convinces to invest
or withdraw in mutual fund.

17) Most (38.5%) of the investors are agree that the best returns in mutual fund.

18) Most (32.3%) of the investors are agree that the mutual fund has a well-
diversified portfolio of securities

19) Most (35.4%) of the investors are agree that the mutual fund has met the
objectives for which it is established.

20) Most (40.8%) of the investors are agree that mutual fund have outperformed the
market returns.

21) Most (28.5%) of the investors are agree that mutual fund has been helpful in the
development of Indian capital market.

22) Most (30.8%) of the investors are agree that the mutual fund is less risky way to
invest as compared to directly invest in stock market.

23) Most (33.8%) of the investors are agree that mutual funds are good to respond
to market volatility

24) Most (42.3%) of the investors are agree with that money invested in mutual fund
is very secure.

25) Most (39.2%) of the investors are agree that the mutual funds disclose all time
relevant information to its investor from time to time.

26) Most (33.8%) of the investors agree that when market goes down, investors
tend to sell some of risk investment and put their money in safer side.

27) Most (42.3%) of the investors had never faced any problem while investing in
mutual fund.

28) Most (33.1%) of the investors satisfied with the investment in mutual fund
through SIP after seeing their returns.

29) Most (22.3%) of the investors choose systematic investment plan income fund
which is the best income fund based on the satisfaction available from their returns.

66
30) Majority (74.6%) of the investors said that they will recommend others to invest
in mutual fund through SIP.

31) There is association between investment objective and investment period.

Hence, the alternative hypothesis is accepted (H1)

32) There is no significant difference between education qualification and opinion

on mutual fund generate best return for its investors. Hence, the null hypothesis is
accepted (H0).

33)There is no significant difference between annual-income and whether mutual

fund performed the market returns. Hence, the null hypothesis is accepted (H0).

34) Pearson correlation coefficient indicates that respondent’s opinion on security

of mutual fund and whether mutual fund discloses all the relevant information to its
investors are positively and significantly correlated with each other. Hence the two
variables are low corelation.

5.2 SUGGESTIONS

➢ Mutual funds companies should bring an innovative scheme which would

help the investors to invest their savings in the Mutual funds. And the Mutual
fund companies should attract more youngster investors as well as investor
who want height of their carrier. which will lead to develop the mutual fund
industries in future.
➢ Mutual funds companies should bring more awareness among the investors
and schemes which they had. There are few people who still invest their
savings in traditional investment options such as bank deposits, postal
savings etc, they think that mutual funds are more risky compare to their
traditional investment options.
➢ Systematic Investment plans give more better returns compare other
investment options. Systematic investment plan main concept is benefit of
rupee cost averaging. SIP should attract more small term investors who want
to invest their savings on basis of monthly. Tax discount should be providing
to the investors for investing in mutual fund this will help them encourage to
invest in Systematic Investment plan apart from Equity Linked Saving
Schemes.

67
 ➢ Systematic Investment Plan gives more returns to investors compare to
Lump sum plan systematic investment plan helps to the investors to increase
their wealth growth.
➢ For achieving heights in financial sector, the mutual fund companies should
express in such a way that helps in fulfilling the investor’s expectation.
➢ Mutual fund industries need to take more advantage of modern technology
like social networking and telecommunication to render service to investors.
➢ Growth of Mutual funds tends to increase the shareholdings in good
companies give rise the fear of threatening among industrial group, hence
introduction of nonvoting shares and lowering the debt-equity ratio helps to
remove these worries.
➢ Mutual funds companies as to create more and more impact on investors to
increase their wealth for future needs.

5.3 Conclusion:

The study on investors perception towards mutual funds through systematic

investment plan this enables that the most of the respondents has positive attitude
towards mutual fund through systematic investment plan. Most of the respondents
are invested their savings in mutual fund through systematic investment plan and
by findings it is conclude that factors which encourage them to invest in mutual fund
through systematic investment plan are Easy to invest facility is most encouraged
factors followed by portfolio diversification and professional management services.
The risk tolerance is very low for the investors. It is also concluded that most of
respondents are satisfied with mutual funds and got better returns from systematic
investment plan in mutual fund.

68
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71
 APPENDIX- 1 (QUESTIONNARIE)
Demographical

1) Age

o Below 20 Years
o 21-30 Years
o 31-40 Years
o 41-50 Years
o Above 50 Years

2) Gender

o Male
o Female

3) Education Qualification

o HSC/SSLC
o Under Graduate
o Post Graduate
o Professional
o Others

4) Occupation

o Government employee
o Private employee
o Self-employed professional
o Business
o Others

5) Annual-income

o Less than 2,50,000

o 2,50,000-5,00,000
o 5,00,000-10,00,00
o Above 10,00,000
6)How much do you save from your earnings

o Less than 2000

o 2001-5000
o 5001-10,000
o 10,001-20,000
o Above 20,001

VARIABLES

7) What is your Investment objective?

o Diversification
o Better return & safety
o Reduction in risk and cost
o Regular Income
o Tax benefit

8) What is your investment Period?

o 5-10 Years
o 11-15 Years
o 16-20 Years
o Above 21 Years

9) Your awareness about Systematic Investment Plan is

o Extremely aware
o Very aware
o Moderately aware
o Slightly aware
o Not at all aware

10) Which of the following gives you better return from Systematic Investment
Plan?

o Equity
o Income fund
o Gilt fund
o Balanced fund
11) Who influenced you to invest in Systematic Investment Plan?

o Friends
o Relatives
o Media
o Brokers
o Others

12) Your Investment in Systematic Investment Plan so far is ?

o Less than 10,000

o 10,000 to 25,000
o 25,000 to 50,000
o Above 50,000
o Not invested

13) Which the following schemes/ funds of systematic investment plan you
have invested?

o Equity oriented
o Debt oriented
o Balanced oriented

14) The Systematic Investment Plan in mutual fund schemes whether fulfil
your objective of maximizing the return from the investment. Do you agree?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

15) What is the primary reason you to invest in mutual funds through
systematic investment plan.

o Easy to invest
o Portfolio diversification
o Professional Management service
o Risk Prediction
 o Monthly Investment -small amount to investments

16) One can invest or withdraw Funds according to its needs and convince in
Mutual Fund? Do you agree

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

17)Mutual Fund generates the best return for its investors?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

18) Whether Mutual Fund has a well-diversified portfolio of Securities Do you

agree?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

19) Mutual Fund has met the objectives for which it is established?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree
20) Majority of the schemes of Mutual Fund have outperformed the market
returns?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

21) Mutual Fund has been helpful in the development of Indian capital market?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

22) Mutual Funds good to respond to market volatility?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

23)Mutual Fund are less risky way to invest as compared to directly invest in
stock market? Do you agree

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

24) Money Invested in mutual fund is very secure?

o Strongly agree
o Agree
o Neither agree nor disagree
 o Disagree
o Strongly disagree

25) Mutual Funds discloses all the relevant information to its investor? Do you
agree

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

26) When the market goes down, I tend to sell some of my riskier investment
and put the money in safer investment?

o Strongly agree
o Agree
o Neither agree nor disagree
o Disagree
o Strongly disagree

27) Do you face any problem while investing in Mutual Fund?

o Never
o Always
o Often
o Sometimes
o Rarely

28) What is the level of satisfaction towards investment in mutual fund

through SIP after seeing your returns?

o Highly Satisfied
o Satisfied
o Neutral
o Dissatisfied
o Highly Dissatisfied
29) choose the best company for income fund based on the satisfaction
available from their return:

o Systematic Investment Plan Income Fund

o Grin lays super saver
o Chole Triple ace
o IDBI prime income fund
o Prudential ICICI flexible income plan
o Templeton India Income builder
o Others

30) Will you recommend others to invest in Mutual fund through SIP?

o Yes
o No
© 2021 JETIR April 2021, Volume 8, Issue 4 www.jetir.org (ISSN-2349-5162)

A STUDY ON INVESTOR’S PERCEPTION

TOWARDS MUTUAL FUND THROUGH SIP
1
PASUPULETI NIKHILESH, 2 AYSHA FATHIMA.Y
1
MBA, 2Asst.Professor
1,2
Dept. of Management studies,
1,2,3
Sathyabama Institute of Science and Technology, Chennai.,Tamilnadu, India.

Abstract: In India Mutual funds plays a vital role in mobilizing funds for capital and financial markets. Mutual Funds are one in
all the most effective investment choice out there to the small investors. A Mutual funds is a type of investment platform where it
manages to collect investment from a lot investors to buy securities like stock, money market instrument, bonds and other assets
because the investment firm sector had developed, there’s been a growing acceptance by most policy holders that the assured come
era may be a factor of the past. Mutual Fund are operated by professional money managers, who is allocated the funds asset and to
attempt to produce capital gains or income for the fund’s investors. Now days all types of investors investing in Mutual Funds. The
Primary objective of the study is to assess investor’s perception towards Mutual Funds through SIP and to identify the reasons for
investment in mutual funds through SIP. This study also aims to measure the returns for investment made in Mutual Fund and to
evaluate the risk tolerance level of investors.
This study contains with a sample of 130 different kinds of investors and their diversification of investment plan. The data was
collected from the investors through circulated questionnaire Google forms in Chennai city. By this study it founded that most of
the investors has a positive knowledge about SIP in Mutual Fund. Based on the findings and analysis it concluded that most of the
investors are satisfied with the returns and performance of Mutual fund through Systematic investment Plan and it also found that
tax-benefits, diversification and reduction in risk as more impact on the investor’s perception for investing in mutual fund.

Index Terms— SIP (systematic investment Plan), Mutual funds, perception.

1. INTRODUCTION
The concept of Mutual fund emerged in India in 1963, when Government of India launched the unit trust of India (UTI).
UTI has launched few schemes for investors one of scheme was UTI plan scheme. Until 1987 the growth rate was very slow and
UTI was the only Mutual fund company enjoyed a monopoly in India mutual fund market. The entry of public sectors after few
years of establishing UTI the growth was accelerated further in succeeding decade. After few years, in 1993 private sectors has
started in Indian mutual fund industry and that was the year where government has brought a new regulation under which all mutual
funds industry and Unit Trust of India has to be registered and governed. In 1993, SEBI (Securities and Exchange Board of India)
regulations were substituted by a more complete and revised Mutual fund regulations in 1996. Now Mutual funds are one amongst
the fastest growing sectors in Indian economy and have awesome potential for supportable future growth. From the last decade,
Mutual funds and its various instrument like Systematic Investment Plan, equity fund, debt and hybrid funds instruments attract the
most of the investors to invest and also given lots of economic growth to the industry. Mutual funds are just one short cut method
for the investors to invest their savings to grow their wealth.
Systematic Investment Plan commonly known as SIP; it is a method of investing platform in Mutual funds. SIP allows investors to
invest a small sum regularly in investors preferred mutual fund schemes. By activating an SIP, a fixed amount is deducted from
investors bank account every month in a chosen date, which get invested in the mutual fund of their own choices. Systematic
investment plan helps the small investors who want to save smaller amount of money while benefiting from the long-term
advantages of rupee cost averaging. The most of brokerages and mutual funds companies offers Systematic Investment Plan.
Systematic Investment Plan offers more schemes compare to Lump-sum investment. Many of the investors choose SIP for more
returns with small amount of money. The main motive of SIP is easy way to accumulate assets and the advantage of Rupee cost
averaging means buying more share when price pulls down by allocating pre-determined periodic speculation into mutual funds.
Systematic Investment Plan is only scheme which available in mutual fund, to attract the small term investors. SIP generates more
returns compare to other investment options such as postal savings and bank deposits and generally in SIP investors can make their
payments on monthly bases this option will gives more benefits to the investors.
Systematic Investment Plan do not assure an income and do not protect against a loss in declining market. Since systematic
investment plan (SIP) investing involves permeant participation in the market regardless of performance price level of securities,
investor should consider his financial ability to continue your purchases through periods of low-price levels.
1.1 OBJECTIVE OF THE STUDY:
Primary objective:
 To study the investor’s perception towards mutual fund through Systematic Investment Plan.
Secondary Objective:
 To identify the reasons for investment in mutual funds through SIP
 To measure the returns for the investment made in mutual fund
 To evaluate the risk tolerance level of the investors.

II. REVIEW OF LITERATURE

Senthil. K and Maruthamutu. K (2010) This study has made an attempt to understand financial behaviour of mutual funds
investors towards mutual fund investment. The study was basically focused on the investor’s awareness and preferences on various
mutual fund’s schemes and what are the factors which influence them to invest in mutual fund schemes and to know the level of
JETIR2104031 Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 225
© 2021 JETIR April 2021, Volume 8, Issue 4 www.jetir.org (ISSN-2349-5162)
satisfaction obtained by them from the mutual fund it was done with the help of the survey conducted in Dharmapuri. The authors
conclude while make investing decision the investors should seek advice from expert and consultants including agents and
distributor of mutual fund schemes. The investors should compare the risks and expected yields after tuning of tax on various
instrument while investment decision. To make investors aware of mutual fund an attempt to be made by providing information in
question answer format which may help the investors in taking in investment decisions.
Ujjwal M and Vinod Peerapur (2016): The study was conducted to investigate the performance of funds of each AMC
(Asset Management company) in a different category. The funds for this research taken are only of open-ended schemes, regular
plan and growth option. Risk management tools are used to analyses the performance of selected schemes. This study was based
own Birla Sun life mutual funds schemes and other asset management company’s schemes. In this research they found that only
Birla fund company as more value than other asset management company.
Dimple Batra (2012): The main concept of this research paper to make comparison of SIP (systematic investment plan)
with lumpsum investment with the help of data environment analysis this will be very useful for the policy maker and fund manager
for designing policies for future implications. The results conclude that many of people do not invested in SIP due to the lack of
awareness although they have sufficient money to invest and the many investor prefer only to invest in their traditional investment
options such as fixed deposits, postal savings because they think mutual funds risky then compare to other investment options. And
they concluded that mutual funds organization should target more and more young investors as well as the person who want to
highlight their career.
Punita.S and Iram Khan (2012) The objective of the study to understand the perception on mutual fund sip and to compare
sip with other type of investment avenues. It resulted that lot of investors more aware of systematic investment plan compare to
other type of investment avenue, this is because more numbers of investors chosen mutual fund systematic investment plan has a
monthly based investment plan through which an individual investor can fixed amount into mutual funds every month at pre-given
dates. Monthly instalment plan can attract the small investors who wish to invest a small amount regularly to build wealth for a
long term.
Mukesh. H.V (2015) the research has done to know the perception level of mutual funds and to know which variables has
attract them while investing in mutual fund, and also want to know investors behaviour towards the mutual fund for returns, tax
benefits and etc. It resulted that lot of respondents are low aware of systematic investment plan they were attracted only for lump-
sum investment. Hence, it was concluded that mutual funds companies should create more awareness among the investors through
conducting workshops on financial markets which can helps the investors to know more about the returns and risk.
Monty Kanodia and kiran khinchi (2017): The study was conducted to analysis varied mutual funds schemes and the way
it’ll facilitate to investors to judge which mutual fund scheme is healthier. The study also wants to examine the risk and return in
mutual fund. The study was concluded that performance and comparison of mutual fund in India, should be provided to create a
powerful study and a degree of correlation is extremely vital between funds and market return and the impact of funds specific
characteristics on the mutual fund performance. This correlation should have to develop so as to have better idea to investors on
how parameter can affect the other.
III. RESEARCH METHODOLOGY:
3.1 Population and sample size:
The population size of the investors in the Chennai city is indefinite. The sample size is confined to 130 respondents. The research
uses Convenience sampling method.
3.2 Primary and Secondary data:
The study was based on the primary data. Primary data for the study is collected through questionnaire which was circulated through
Google forms. The study uses Secondary data has collected from journals, Books, Websites and magazines.
3.3 Questionnaire
The structured questionnaire are three broad types of questions are used in this study are open ended questions, closed ended
questions and Likert scale method. Open questions allow respondents to answer as they wish. Closed questions provide respondents
with a list of options from which they choose. Likert scale provide respondents agree to particular statement.
The perception on mutual fund was measured with the help of 5-point Liker scale namely (strongly agree, Agree, neither agree nor
disagree, Disagree, strongly disagree)
3.4 Research Hypothesis:
H0 1: There is no association between investment objective and investment period.
H0 2: There is no correlation between respondence opinion on security of mutual fund and whether mutual fund discloses all the
relevant information to its investors.

IV. DATA ANALYSIS AND INTERPRETATION

In Demographic Profile:
4.1 Percentage analysis of Demographic factors
FACTORS DIMENSIONS NO. OF
PERCENTAGE
RESPONDENTS
AGE Below 20 Years 06 4.6
21 to 30 Years 54 41.5
31 to 40 Years 29 22.3
41 to 50 Years 24 18.5
Above 50 Years 17 13.1
Gender Male 72 55.4
Female 58 44.6
HSC/SSLC
20 15.4
Education
Qualification Under Graduate 35 26.9
Post Graduate 46 35.4
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Professional 22 16.9
Others 07 5.4
Government employee 30 23.1
Occupation Private employee 53 40.8
Business 25 19.2
Self- employed Professionals
12 9.2

Others 10 7.7
Less than 2,50,000 41 31.5
Annual Income 2,50,000-5,00,000 53 40.8
5,00,000-10,0000 23 17.7
Above 10,00,000 13 10
In table 4.1 shows the demographic profile of the investors such as age, gender, education qualification, occupation and their income
this will be helpful to know the investment plan for their future plan and it is felt that important to know whether the investment
objective and investment period would have a direct influence over their investment decisions. For this purpose, the data have
processed and presented in table.
It is observed that from table 4.1 that most of the investors are from the age group of 21-30 years (41.5%) and followed by age
group of 31-40 years (22.3%). By this concept it clearly reveals that Mutual funds more attracted investors of age group of 21-30
years. Respondents based on the gender shows more investors are male (55.4%) and followed by female (44.6%), the concept
reveals that now days female are also investing in mutual fund. It explains the fact that the maximum number of investors are post
graduate (35.4%), followed by under graduate (26.9%) and investors with professional education are (16.9%). Hence this study
reveals that some time education qualifications play a vital role in mutual fund. Respondents based on investors occupations (40.8%)
of total investors comes under private employee category, followed by government employee (23.1%) and the own business
investors constitute of (19.2%). This shows that private employee and government employee investor are more aware about mutual
fund. The different skills and knowledge have influenced their investment decision. Respondents based on Annual income (40.8%)
of investors comes under 2,50,000-5,00,000, followed by less than 2,50,000 (31.5%) and (17.7%) of the investors annual-income
of 5,00,000-10,00,000.
4.2 Investors respondents based on Investment objective
PARTICULARS NO OF RESPONDENTS PERCENTAGE OF
RESPONDENTS

Diversification
12 9.2
Better return & safety
46 35.4
Reduction in risk and cost
30 23.1
Regular income
27 20.8
Tax benefit
15 11.5
TOTAL
130 100
Source: Primary data

INVESTMENT OBJECTIVE
35.4
40
23.1 20.8
30
20 9.2 11.5
10
0
Diversfication Better return Reduction Regular Tax benefit
& safety risk & cost income

INVESTMENT OBJECTIVE

Chart 4.2 Investment objective of the respondents

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INTERPRETATION:
From the above table it is interpreted that 9.2% of the respondents that investment objective is diversification, 35.4% of the
respondent’s investment objective is better return and safety, 23.1% of the respondent’s investment objective is reduction in risk
and cost, 20.8% of the respondent’s investment objective is for regular income and 11.5% of the respondent’s investment objective
is for tax benefit.

PARTICULARS NO OF RESPONDENTS PERCENTAGE OF

RESPONDENTS

5-10 Years 46 35.4

11-15 Years 43 33.1
16-20 Years 23 17.7
Above 21 Years 18 13.8
TOTAL 130 100
Table 4.3 Respondents based on investment period:

Source: Primary data

INVESTMENT PERIOD
5-10 Years 11-15 Years 16-20 Years Above 21 Years
35.4

33.1

17.7

13.8
5-10 YEARS 11-15 YEARS 16-20 YEARS ABOVE 21 YEARS

Chart 4.3 Investment period of the respondents:

INTERPRETATION:
From the above table it is interpreted that 35.4% of the respondents are investment period is 5-10 Years, 33.1% of the respondent’s
investment period is 11-15 Years, 17.7% of the respondent’s investment period is 16-20 Years and 13.8 % of the respondent’s
investment period is above 21 Years.

V. HPOTHESIS TESTING
The HYPOTHESIS 1
Relationship between investment objective and investment period:
Null Hypothesis (H0): There is no association between investment objective and investment period.
Alternate Hypothesis(H1): There is association between investment objective and investment period.

Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Investment objective *
130 99.2% 1 0.8% 131 100.0%
Investment period

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INVESTMENT INVESTMENT PERIOD TOTAL

OBJECTIVE

5-10 11-15 16-20 Above Twenty-one (21)

Years Years Years Years
Diversification Count
12 0 0 0 12
Better return & safety Count
34 12 0 0 46
Regular income Count
0 1 23 3 27
Tax benefit Count
0 0 0 15 15
Total Count
46 43 23 18 130
Table chi-square Test
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 296.689a 12 .000
Likelihood Ratio 261.619 12 .000
Linear-by-Linear
113.013 1 .000
Association
N of Valid Cases 130
RESULTS: Since H1 is accepted, there is association between the investment period and investment period.
HYPOTHESIS 2
Pearson correlation coefficient between respondence opinion respondence opinion on security of mutual fund and whether mutual
fund discloses all the relevant information to its investors.
Null Hypothesis(H0): There is no correlation between respondent’s opinion on security of mutual fund and whether mutual fund
discloses all the relevant information to its investors.
Alternate Hypothesis (H1): There is correlation between respondent’s opinion on security of mutual fund and whether mutual
fund discloses all the relevant information to its investors.

Correlations
Respondent’s opinion on Mutual Funds discloses all the
security of mutual fund relevant information to its investor
Money Invested in mutual fund is very Pearson 1 .109
secure Correlation
Sig. (2-tailed) .219
N 130 130
Mutual Funds discloses all the relevant Pearson .109 1
information to its investor from time to Correlation
time Sig. (2-tailed) .219
N 130 130
RESULTS: Since the values of Pearson Correlation 0.109, this indicates that respondent’s opinion on security of mutual fund and
whether mutual fund discloses all the relevant information to its investors are positively and significantly correlated with each other.
Hence the two variables are low corelation.
VI. FINDINGS:
1) Most (41.5%) of the Investors are in the age group between 21-30 years.
2) Majority (55.4%) of investors are male.
3) Most (35.4%) of the investors are post graduate.
4) Most (40.8%) of the investors are private employee.
5) Most (40.8%) of the investors Annual income is between 2,50,000-5,00,000.
6) There is association between investment objective and investment period. Hence, the alternative hypothesis.
7) Pearson correlation value is 0.109 which is below 0.05 therefore, there is a correlation between respondent’s opinion on security
of mutual fund and whether mutual fund discloses all the relevant information to its investors.

VII: SUGGESTIONS:
 Mutual funds companies should bring an innovative scheme which would help the investors to invest their savings in the
Mutual funds. And the Mutual fund companies should attract more youngster investors as well as investor who want height
of their carrier. which will lead to develop the mutual fund industries in future.

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 Mutual funds companies should bring more awareness among the investors and schemes which they had. There are few
people who still invest their savings in traditional investment options such as bank deposits, postal savings etc, they think
that mutual funds are more risky compare to their traditional investment options.
 Systematic Investment plans give more better returns compare other investment options. Systematic investment plan main
concept is benefit of rupee cost averaging. SIP should attract more small term investors who want to invest their savings
on basis of monthly. Tax discount should be providing to the investors for investing in mutual fund this will help them
encourage to invest in Systematic Investment plan apart from Equity Linked Saving Schemes

VIII. CONCLUSION:
A study on investors perception towards mutual fund through SIP as help us to understand better about the investor’s investment
objective, investment period, risk tolerance and returns for the investment made in mutual fund. From the research it enables that
the most of the respondents has a positive attitude towards mutual fund through systematic investment plan. Most of the respondents
invest in their savings in systematic investment plan. There were independent variables as demographic variables such as education
qualification, annual-income, age, occupation and gender.
The conclusion for this research that factors which encourage them to invest in mutual fund through systematic investment plan are
Easy to invest facility is most encouraged factors followed by portfolio diversification, monthly investment, professional
management services. It is also concluded that most of respondents are satisfied with mutual funds and got better returns fro m
systematic investment plan in mutual fund.

IX.REFERENCE:
 Senthilkumar.K and Maruthamuthu.K (2010), “Investors Perception Towards Mutual Funds Investment” International Journal of
Commence and Business Management, Vol No: 3, Issue 2: pp-190-194
 Dimple Batra and Gunjan Batra (2012),” A DEA Comparison of Systematic and Lump sum Investment in Mutual Fund,” International
Journal of Computing and Business Research (IJCBR) Vol No: 3, Issue no: 2,
 Mukesh. H.V (2015),” Investors Perception towards Mutual funds, an Indian Perspective”, Global Journal for Research Analysis, Vol
no: 4, Issue no: 4.
 Ujjwal M M and Vinod Peerapur (2016),” Comparative Analysis of Birla Sun Life Mutual Fund Schemes with other Asset Management
Company’s Scheme”, Indian Journals of Engineering and Management Research, vol no: 6, Issue no:1.
 Punita. S and Iram Khan (2012),” Systematic Investment Plan v/s Other Investment Avenues in Individual Portfolio Management”,
International Journal in Multidisciplinary and Academic Research (SSIJMAR), Vol no: 1, Issue no: 3
 Monty Konodia and Kiran Khinci (2017),” Performance Evaluation of Mutual Funds in India,” Account and Financial Management
Journal, Vol no: 02, Issue no: 09, pp-898-908

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