What is Systematic Investment Plan?

Systematic Investment Plan (SIP) is a smart financial planning tool that helps
you to create wealth, by investing small sums of money every month, over a
period of time. Systematic Investment Plan (SIP) is a planned approach to
investments and an investment technique that allows you to provide for the
future by investing small amounts of money in Mutual Fund schemes of your
choice.
State Bank of India is one of the largest banking institutions in India. It is not
only reliable but investing money is also safe with a guarantee that great
returns can be obtained from here. Currently, investment in the mutual funds
and in the SIP schemes of the mutual funds has become quite common. There
are many companies that offer the opportunity of investment in the SIP. SBI is
also one of them.
A SIP is a method of investing in mutual funds, by investing a fixed sum at a
regular frequency, to buy units of a mutual fund schemes. It is quite similar to
a recurring deposit of a bank or post office. For the convenience, an investor
could start a SIP with as low as Rs 500; however this amount may differ from
one fund house to other. The SIP provides them a way to invest in the fund of
their choice in installments. Here is an illustration using hypothetical
figures indicating how the SIP can work for investors: Suppose an investor
would like to invest Rs.4,000 under the Systematic Investment Plan on
quarterly basis.
Research Methodology
Title of the study
„Systematic Investment Plan

(The Better Way to Invest In Mutual Funds)‟

Duration of the Project

The duration of the project is 45 days

Objective of the study

The purpose of choosing the project is to know:

Investor‟s option for entry into mutual fund

Lump sum

SIP

Comparative analysis between Lump Sum and SIP Investors Delight when investment is through SIP
Procedure for investment in SIP

Research Type

Conclusive and explorative approach has been adopted in the study. As here the topic of research
problem has been explored so that hidden facts can come into the light and then the maximum
allocation criteria in SIP are Rs. 1000-3000 i.e. the final conclusion is given 45%

SAMPLE SIZE

A sample size of 50 investors was chosen to meet the earlier mentioned objectives. The selection of
sample was based on the following criteria: -

People belonging to different state of society.

Servicemen working in government organization & private organization. Professionals who includes
doctors, lawyers, teachers etc
Research Type

Conclusive and explorative approach has been adopted in the study. As here the topic of research
problem has been explored so that hidden facts can come into the light and then the maximum
allocation criteria in SIP are Rs. 1000-3000 i.e. the final conclusion is given 45%

SAMPLE SIZE

A sample size of 50 investors was chosen to meet the earlier mentioned objectives. The selection of
sample was based on the following criteria: -

People belonging to different state of society.

Servicemen working in government organization & private organization. Professionals who includes
doctors, lawyers, teachers etc

Research Design

This research is Explorative and conclusive in nature because it aims to collect the data about the
behavior of investors in which way they invest in Mutual Funds. The research approach used is
survey based and the analysis is largely based on the primary data.

Research Instrument

Structured questionnaire: open- ended and close- ended.

Contact Method

Personal interview

Research Approach

Any methodology includes the overall research design, the sampling procedure and data collection
method. The methodology adopted by me for purpose of finding the investment behavior of
investors was DIRECT SURVEY METHOD