Project Report

On
“Perception of Salaried Employees towards Systematic
Investment Plan”
At
Aditya Birla Sun Life Mutual Fund, Bhavnagar

Index
Chapter 1 Overview of Aditya Birla Sun Life Asset Management 3
1.1 Introduction to the Mutual Fund.......................................................................... 4
1.2 Types of Mutual Funds.........................................................................................6
1.3 Ways/modes of Mutual Fund Investment...........................................................10
1.4 Features & Benefits of Investing in Mutual Funds............................................ 11
1.5 Negative aspects of mutual funds.......................................................................13
1.6 Mutual Fund Functions...................................................................................... 14
1.7 Mutual Fund Objectives..................................................................................... 15
1.8 List of Largest Asset Management Companies in the World.............................16
1.9 List of Well Known Indian Asset Management Company.................................16
1.10 An Introduction and Overview of Aditya Birla Sun Life Asset Management. 17
Chapter 2 Overview of “Perception of Salaried Employees towards Systematic
Investment Plan” 23
2.1 Meaning Of Systematic Investment Plan........................................................... 24
2.2 How does SIP Work?..........................................................................................25
2.3 Benefits of Systematic Investment Plans........................................................... 27
2.4 Types of SIPs......................................................................................................31
2.5 Difference between SIP and Lump sum.............................................................33
2.6 Things the Salaried Employee must consider while starting SIP.......................34
2.7 Three things a salaried employee must check before selecting a Mutual Fund. 36
2.8 Why shall a salaried Employee invest in Aditya Birla Sun Life Mutual Funds?...
37
2.9 Funds offered by Aditya Birla Sun Life Mutual Fund....................................... 38
Chapter 3 Literature Review 43
3.1 Introduction to Literature................................................................................... 44
 3.2 Literature Reviews: -.......................................................................................... 44
Chapter 4 Research Methodology 45
Chapter 5 Data Analysis 45
Chapter 5 Findings & Conclusion 45
Bibliography 45
1.1 Introduction to the Mutual Fund.

WHAT ARE MUTUAL FUNDS?

● A mutual fund is a type of investment instrument that combines money from

investors to invest in a variety of assets, including stocks, bonds, gold, and
government securities. When a company is approved to launch a mutual fund, it
establishes Asset Management Companies (AMCs) or Fund Houses, which collect
investor funds, advertise mutual funds, oversee investments, and facilitate investor
transactions.

● Mutual funds are managed by reputable financial experts that specialize in

investment analysis and portfolio management, known as fund managers.
According to the investment goal of the fund, the money that mutual fund
managers receive from clients is invested in a variety of financial assets, including
stocks, bonds, and other assets. The fund managers oversee a wide range of duties,
including deciding where and when to invest.

● The expense ratio is the cost to the investor that the AMC charges for managing
the fund. It is not a set charge and varies from one mutual fund to another. The
maximum cost ratio that can be charged based on the fund's total assets has been
determined by SEBI.

HOW DO MUTUAL FUNDS WORK?

● Let's first comprehend the idea of NAV (Net Asset Value) in order to grasp how
mutual funds function. The price at which investors can purchase or redeem their
mutual fund investments is known as NAV per unit. Mutual fund investors receive
units in proportion to their investments, and this is determined based on the NAV.
For instance, you would receive 50 units of the mutual fund if you invested Rs 500
in one with a NAV of Rs 10, or (500/10).
● Due to the performance of the assets in which the mutual fund is invested, the NAV
of the fund now varies daily. The NAV of a mutual fund will change if it invests in
 a stock whose price increases tomorrow, and vice versa. Accordingly, in the
example above, if the mutual fund's NAV increases to Rs 20, your 50 units—which
before totalled Rs 500—will now equal Rs 1000 (500 units x Rs 20). As a result,
the underlying assets of the mutual fund, which are responsible for producing
investor returns, drive the fund's performance.

● Accordingly, you will receive Rs 1000 instead of the Rs 500 you initially paid
when you redeem your mutual fund units. A capital gain is this gain of Rs. 500. In
light of the fact that the market value of the mutual fund portfolio is not constant
but changes daily, NAV also tends to fluctuate daily based on the valuation of the
fund portfolio. As a result, depending on how the NAV fluctuates and the
performance of the underlying assets, this gain of Rs 500 might alternatively
represent a loss. The returns from investments in mutual funds are not guaranteed
and also have a dynamic nature because they are market-linked.

● Mutual fund returns (capital gains) are subject to tax, known as capital gains tax.
Capital gains tax will impact when you choose to redeem your investment; like in
the example above you will be liable to pay a tax on the Rs 500 you have earned.
However, keep in mind two things:
o The capital gains tax is applicable only if you redeem the investment and not
if you stay invested.
o The extent of capital gains tax will depend on the types of mutual funds and
your investment holding.
Mutual funds are subject to short-term capital gains tax (STCG) and long-term
capital gains tax (LTCG). The periods of short-term and long-term capital gains tax
are defined differently for mutual funds.
1.2 Types of Mutual Funds

● Mutual funds can be grouped in a number of different ways, such as according to

their structure, the types of securities they own, their investing strategy,
etc.Following are some of the mutual fund categories that the Securities and
Exchange Board of India (SEBI) has created based on the places in which they
invest. Here, we provide you a few well-known mutual funds to get you started
rather than an exhaustive list of mutual funds with many categories.

⮚ Types on the basis of the structure:

1. Open-ended funds are mutual funds that allow you to invest and redeem
investments at any time, i.e. they are perpetual in nature. They are liquid in nature
and don’t come with a specific investment period.

2. Close-ended schemes have a fixed maturity date. You can only invest at the
time of the new fund offer and redemption can only be done on maturity. You
cannot purchase the units of a close-ended mutual fund whenever you please.

⮚ Types on the basis of asset classes:

1. Equity Mutual Funds invest at least 65% of their assets in stocks of companies
listed on the stock exchange. They are more suitable as long-term investments (> 5
years) as stocks can be volatile in the short term. They have the potential to offer
higher returns but also come with high risk. Here are a few types of equity mutual
funds: -
o Large-cap Funds
Large-cap Funds invest at least 80% of their portfolio in stocks of large-cap
companies i.e. the companies that are ranked in the first 100 in the list of
stocks prepared by AMFI depending on market capitalization.
o Mid-cap Funds
Mid-cap Funds invest at least 65% of their portfolio in stocks of mid-cap
companies i.e. the companies that are ranked between the 101st and 250th
based on their market capitalization

o ELSS (Equity Linked Savings Scheme)

Equity Linked Savings Scheme is a tax-saving equity mutual fund. It
invests at least 80% of its portfolio in stocks. The investment made under
ELSS is eligible for tax deduction under section 80C, of the Income Tax
Act, 1961 up to Rs 1.5 Lakh per annum. ELSS also comes with a lock-in of
3 years from the date of investment.

o Multi-cap Funds
Multi-cap Funds invest in stocks of any companies across all market
capitalization, namely, large-cap, mid-cap, and small-cap stocks. There is
no investment limit defined by SEBI at the market capitalization level.

o International Funds
International Funds are schemes that invest equity of companies listed
outside India. The objective of these funds is to provide an element of
geographical diversification to investors and counter the volatility of Indian
markets as foreign markets do not necessarily move in sync with Indian
markets

o Index Funds
An Index Fund is a type of mutual fund that simply impersonates an
index.As a result, fund managers that manage index funds put your money
in the same corporations and to the same extent as the index they are
monitoring. For instance, an index fund that follows the SENSEX will
purchase all 30 of the companies that make up the index in the same ratio.
The index fund will also remove a stock from its holdings once it is
dropped from the SENSEX, Additionally, the fund will repeat the changes
in its portfolio if some new stocks are included in the SENSEX.
2. Debt Mutual Funds primarily invest in fixed-income instruments like
Government securities, corporate bonds, and other debt instruments. They are not
affected by stock market volatility and hence, can offer more stable returns
compared to equity mutual funds. The types of debt mutual funds are differentiated
on the basis of the maturity period of the securities they hold. Let’s look at a few
types of debt mutual funds-

o Liquid Funds
Liquid Funds invest in debt securities and higher-rated securities which
have a maturity period of fewer than 91 days. This makes them relatively
less risky than most other categories because a lower maturity mitigates any
interest rate volatility (which is the risk of loss resulting from a change in
interest rates). Liquid funds are a good avenue for parking emergency funds
alternative to bank savings accounts.

o Overnight Funds
Overnight Funds invest in securities with a maturity of one day. These
funds come with low risks safety again because of shorter maturity periods,
the interest rate risk is on the lower side. These are commonly used by
corporates to park their funds.

o Money Market Funds

Money Market Funds invest mainly in government securities (known as
treasury bills) and similar instruments, which are short-term with maturity
periods of less than one year. These funds are suitable for investors looking
for stable and non-volatile funds as interest risk is less.

o Banking & PSU Funds

Banking & PSU Funds invest at least 80% of their investment in debt
securities of banks, public sector undertakings, municipal bonds, public
financial institutions, etc. They can be better suited for investors looking for
short to medium-term investment tenure.
 o Glit Funds
Glit Funds invest a minimum of 80% in Government securities across
maturity periods. The nature of investment makes it more suitable for a
long-term investment as Government securities can be volatile in the short
term.

o Short Duration Funds

Short Duration Funds invest in debt and other money market securities such
that the average maturity of the portfolio is between 1-3 years. They are
more suited for investors looking at an investment time frame of 1-3 years
and moderate risk appetite.

3. Hybrid Mutual Funds invest in both equity and debt in varying proportions
depending on the investment objective of the fund. Thus, hybrid funds give you
diversified exposure to various asset classes. Hybrid funds are categorized on the
basis of their allocation to equity and debt. Let us look at a few categories-

o Aggressive Hybrid Funds

Aggressive Hybrid Funds are a type of hybrid fund that can invest 65-80%
of their portfolio in equity and 20-35% in debt instruments. As a result of a
greater allocation to equity, they prove to be riskier than the balanced
hybrid category.

o Conservative Hybrid Funds

Conservative Hybrid Funds invest at least 75-90% of their portfolio in debt
securities and the remaining 10-25% in equity securities. Because of this
allocation, they may prove to be relatively less risky than, say, an
aggressive hybrid fund.

o Balanced Advantage Funds

Balanced Advantage Funds, also known as dynamic asset allocation funds
keep their investments in equity and debt dynamic in nature. As per the
market movement, their allocation to both asset classes keeps changing so
as to maximize the gains and minimize the risks.
1.3 Ways/modes of Mutual Fund Investment

An investor can invest in mutual funds in the following ways:

1. Lumpsum

o When you wish to make a sizable one-time investment in a mutual fund.For

instance, if you had Rs. 1 lakh to invest, you might choose to make a lump sum
investment and put the full Rs. 1 lakh into the mutual fund of your choosing. The
units allocated to you will vary depending on the fund's NAV on that specific day.
You will receive 100 units of the mutual fund if the NAV is Rs 1000.

2. Systematic Investment Plan (SIP)

o Additionally, you have the choice of periodically making small investments. In the
aforementioned scenario, let's imagine that instead of having Rs. 1 lakh, you may
agree to invest Rs. 10,000 per month for ten months, and you can coordinate your
investments with your cash flows. Systematic Investment Plan (SIP) is the name
for this method of investing.

o SIP encourages regular investment of fixed amounts bi-monthly, monthly,

quarterly and so on, depending on your need and the options available with the
mutual fund.

o This approach to investing eliminates the need to wait for the ideal moment to buy
and instils a discipline around money management. Many investors attempt to
timing the market, which often takes a lot of effort and knowledge. Instead of
requiring the investor to time the market, a SIP simply averages out expenses.
Higher units are obtained when the NAV is low, and vice versa. Regularly using
SIPs over a lengthy period of time will help you increase the size of your mutual
fund investment corpus.
1.4 Features & Benefits of Investing in Mutual Funds

Now that we know what mutual funds are and how they work along with their types,
let us look at the benifits of investing in mutual funds.

o Diversification:
The saying ‘do not put all your eggs in one basket’ perfectly fits mutual funds as
spreading investment across multiple securities and asset categories lowers risk.
For example, compared to direct equity investing, where your funds are deployed
in individual company stocks, equity mutual funds invest in a basket of stocks
across sectors, thereby reducing risk.

o Professional management:
Mutual funds are managed by full-time, professional fund managers who have the
expertise, experience, and resources to actively buy, sell, and manage investments.
A fund manager continuously monitors investments and rebalances the portfolio
accordingly to meet the scheme’s objectives.

o Transparency:
Every mutual fund has a Scheme Information Document readily available on the
fund house’s website that can give you all the details about its holdings, fund
manager, etc. In addition, the portfolio investment value (NAV) is published daily
on the AMC site, and AMFI site for investors to track the portfolio of the mutual
fund.

o Liquidity:
You can redeem your investments on any business/working day at the NAV of the
day of your redemption. So, depending on the type of mutual fund you have
invested in, you would receive your invested funds in your bank account in 1-3
days.However, close-ended funds allow redemption only at the time of the
maturity of the mutual fund. Similarly, ELSS mutual funds have a lock-in period of
three years.
o Tax Savings:
Investment of up to Rs. 1,50,000 in ELSS mutual funds qualifies for tax benefit
under section 80C of the Income Tax Act, 1961. Mutual fund investments, when
held for a longer term, are tax-efficient.

o Choice:
There are many options to invest in mutual funds to meet your different needs. To
name a few- Liquid funds, is for investors looking to benefit from the safety of
debt and low-interest rate risk, flexi-cap funds, if you are looking for stock
diversification and solution-oriented mutual funds if you are looking to invest for a
particular goal like retirement or children’s education, etc.

o Cost-effective:
Mutual funds are a low-cost investment vehicle. The pooled investments from
several investors in a mutual fund enable the fund to invest in a basket of stocks
and debt securities which otherwise may be out of reach for the ordinary investor
or require a higher investment amount. Thus, these pooled investments provide
advantages of economies of scale. In return, lower costs to investors, such as
brokerage, etc., are addressed in the minor form of fund expenses.

o Returns:
Mutual fund returns are not assured by mutual funds and are subject to market
risks. But over the long term, equity mutual funds have the potential to deliver
double-digit returns annually. Debt funds can also offer higher returns as compared
to bank deposits.

o Well Regulated:
In India, the mutual fund industry is regulated by the capital market regulator
Securities and Exchange Board of India (SEBI). Therefore, mutual funds must
follow stringent rules and regulations, ensuring investor protection, risk mitigation,
liquidity, and fair valuation.
1.5 Negative aspects of mutual funds

Now, let us have a look at the negative aspects of investing in mutual funds: -

o Exit Load
When investors redeem their units within a predetermined time frame, such as one
year from the date of investment, mutual funds often charge an exit load (cost).
This prevents the investor from leaving the plan too soon, which would have an
adverse effect on both the performance of the fund and the investor's
goal-achievement. For example, there is no exit load when you invest directly in
stocks, which may appear like an additional cost in contrast. However, this has
been implemented for the benefit of the investors.

o High Cost
The maximum cost ratios that mutual fund companies are permitted to charge have
been established by SEBI and are based on the size of the mutual fund. The price
often decreases as size increases. An equity-oriented mutual fund may have a
maximum cost ratio of 2.25%. And regardless of the fund's performance, you are
still required to pay this fee. You can discover that the expense ratio is larger than
the brokerage you pay when compared to another investing strategy, like direct
stocks. You need to strike a balance because you are paying for the knowledge and
convenience.

o Over-diversification
You could invest in mutual funds, which own an extensive amount of equities and
can over-diversify your holdings, in an effort to diversify your investments. A
portfolio's equities won't all consistently provide strong returns. If you invest in
two mutual funds with comparable portfolios, you run the risk of over-diversifying
your portfolio..

o Risk
Mutual fund investments are subject to market risk. Diversification cannot lessen
the loss risk that all forms of assets experience in the financial markets. Numerous
macroeconomic and microeconomic variables might lead to market hazards.
1.6 Mutual Fund Functions

Let's examine the operations of mutual funds to better comprehend them.

o New fund offer (NFO) release

By announcing its NFO, an AMC can establish a mutual fund scheme. Before the
plan is launched, it develops and communicates the strategy. Then, investors may
choose whether and how much to invest. NFO units frequently have a cheap
sticker price, like Rs 10.

o Pooling money
After the NFO, fund houses receive funds from interested investors to purchase
shares in stocks, bonds, and other assets. Investors who didn’t participate in the
NFO can still buy the units of the fund after it gets operational.

o Investments in securities
How the fund manager will invest the money depends on the scheme's plan. Before
making an investment choice, the fund manager conducts a thorough analysis of
the economy, various industries, and various businesses. He then purchases the
securities that are most suitable for producing the best returns for unitholders.

o Return of funds
As mutual funds generate returns, the gains can be distributed among investors or
retained in the scheme for further growth. Investors receive pay-outs if they choose
the IDCW option (income distribution cum capital withdrawal). If they choose the
growth option, the gains are retained in the scheme and allowed to grow further.
1.7 Mutual Fund Objectives

Mutual funds seek to fulfil the following objectives for their unitholders:

o Diversification
It is typically suggested to avoid putting all of your eggs in one basket. Your risk
may be significantly increased if you do this. Mutual funds are by nature diverse.
They diversify across securities, resources, and even geographical areas. As a
result, they assist in reducing the danger.

o Capital protection
Some mutual funds, such as money-market funds and liquid funds, aim to protect
your capital. However, while they are relatively safer, they also have lower returns.

o Capital growth
Certain mutual funds, such as equity funds, focus on growth to protect your
investment against inflation. These funds invest in stocks and have higher returns
but also come with higher risks.

o Saving tax
A certain class of mutual funds, called equity-linked savings schemes (ELSS) or
tax-saving funds, also provide income-tax deductions up to Rs 1.5 lakh in a
financial year in the old income-tax regime.
1.8 List of Largest Asset Management Companies in the World

The following is a list of the top 10 asset managers in the world (as of 2022), ranked
by total assets under management (AUM)

AUM (in
Sr Billion
No. Company Country USD)
1 BlackRock United States 9,570
2 Vanguard Group United States 8,100
3 Fidelity Investments United States 4,283
4 UBS Switzerland 4,380
State Street Global
5 Advisors United States 4,020
6 Morgan Stanley United States 3,230
7 JPMorgan Chase United States 2,960
8 Crédit Agricole France 2,875
9 Allianz Germany 2,760
10 Capital Group United States 2,700

1.9 List of Well Known Indian Asset Management Company

The following is the list of few of the well-known Asset Management Companies in
India: -

o Axis Mutual Fund

o Aditya Birla Sun Life Asset Management
o ICICI Prudential Mutual Fund
o IDFC Project Equity
o Kotak Mutual Fund
o L&T Mutual Fund
o SBI Mutual Fund
o UTI Asset Management
1.10 An Introduction and Overview of Aditya Birla Sun Life Asset
Management

● Investment managing firm Aditya Birla Sun Life Asset Management firm Ltd.
(ABSLAMC), previously Birla Sun Life Asset Management Company Limited, is
registered with the Securities and Exchange Board of India. The Canadian Sun Life
Financial Inc. and the Indian Aditya Birla Capital are partners in the endeavour.

● The firm provides offshore funds, fund of fund schemes, hybrid and monthly
income funds, debt and treasury products, and equity schemes tailored to certain
industries.

⮚ Logo of Aditya Birla Sun Life Asset Management

⮚ Vision of the Company

"To be a leader and role model in a broad-based and integrated

financial services business."

The Vision of the Company is based on the following Four Pillars: -

1. To be a leader
The Company is committed to being a leader in all facets of our businesses, rather
than being just another participant in this race.

2. To be a role model
The Company will not become leaders by cutting corners or making compromises.
Whatever it does, they will strive to be the best in class. And if they are the best,
then their customer will have no reason to go elsewhere – therefore their leadership
is assured, on pure merit.

3.To be a broad-based player

The Company is committed to meeting all the felt and unfelt needs of their target
customer. And thereby, they can retain him or her across their needs and life-stages.

4. Aim to be an integrated player

They believe that this approach gives them a competitive edge through sharing of
best practices, deriving cross – business synergies & providing talent pool with
world of opportunity to grow.

⮚ Type Of Company Registered

Public Listed
⮚ A Brief History of Company

o A joint venture between the Aditya Birla Group (51%) and Sun Life Financial of
Canada (49%), Birla Sun Life Asset Management Company was founded in 1994.
For both private people and business clients, the organization provides a variety of
wealth creation and protection products and services.

o The umbrella brand for The Aditya Birla Group's financial services division is
called Aditya Birla Financial Services Group (ABFSG). With an AUM of almost
Rs 3 trillion as of 2021, ABFSG is ranked among the top five fund managers in
India (including LIC)

o The company has 14,000 employees and over 6 million customers, with 1,500
points of presence and about 130,000 agents/channel partners.

o Sun Life Financial, Inc. is a multinational financial services firm operating in India
through Aditya Birla Sun Life Asset Management. Birla Sun Life Asset
Management Company Ltd. (BSLAMC) was established in 1994 as a joint venture
between Aditya Birla Group and Sun Life Financial, and has since then served as
the investment manager for Birla Sun Life mutual fund.

o It provides a range of investment products and schemes, such as debt, treasury, and
equity plans; investments, such as fund of fund plans; wealth management
services; regular income plans; offshore funds; hybrid and monthly income funds;
wealth creation; tax-saving strategies; and it also pioneered research-based
investments.

o By 2020, it maintained a presence in several global markets including the United

Kingdom, United States, Canada, Japan, Indonesia, Philippines, Ireland, China,
Hong Kong, Bermuda, and India.
⮚ Services Provided by Aditya Birla Sun Life Asset Management

o Life insurance
o Health insurance
o Vehicle insurance
o Travel insurance
o Investment management
o Mutual fund

⮚ Financial Achievement as of March 31, 2023

o Aggregate Assets Under Management (AUM) – about Rs. 3,600 billion

o Consolidated Lending Book - over Rs. 943 billion
o Active Customer Base - approx. 38 million

⮚ Financial Achievement as of June 30, 2023

o Aggregate Assets Under Management (AUM) – about Rs. 3.9 lakh Crore
o Consolidated Lending Book - over Rs. 1 lakh Crore

⮚ Achievements of the Company in pursuit to Leadership Vision

o Among the Top 5 Private Diversified NBFCs in India

o One of the largest Private Life Insurance Companies in India
o One of the largest Asset Management Companies in India
o One of the largest General Insurance Brokers in the country
⮚ Other Sister Concerns of Aditya Birla Sun Life Asset Management

● Aditya Birla Sun Life Insurance Company Limited

● Aditya Birla Health Insurance Company Limited
● Aditya Birla Wellness Private Limited
● Aditya Birla Insurance Brokers Limited
● Aditya Birla Sun Life Mutual Fund
● Aditya Birla Sun Life Pension Management Limited
● Aditya Birla Money Limited
● Aditya Birla Finance Limited
● Aditya Birla Housing Finance Limited

⮚ List of Major Products Offered by ABSLAM

● Aditya Birla Sun Life Flexi Cap Funds

● Aditya Birla Sun Life Multicap Funds
● Aditya Birla Sun Life Frontline Equity Fund
● Aditya Birla Sun Life Digital India Fund
● Aditya Birla Sun Life Liquid Fund
● Aditya Birla Sun Life ELSS Tax Relief Fund
⮚ SWOT Analysis of ABSLAMC

Strength

o Has a nationwide network of 600 locations and advisers in 1500 Indian

towns, totalling more than 130,000 advisors.
o Backed by Aditya Birla Brand and Sun Life financial services.
o Emphasis on Customer Satisfaction through Transparent Functioning.
o Strong Capital Base.

Weaknesses

o Low Presence in Rural Market.

o Lesser advertising as compared to competitors

Opportunities

o Growing potential in the Rural Market.

o Alignment with Government Schemes.
o Better awareness amongst people for getting investments.

Threats

o Economic crisis and economic instability

o Entry of new AMCs in the sector
2.1 Meaning Of Systematic Investment Plan

We all dream of buying a car, dream house, gadgets, etc. This all can come to reality
if we have strong financial planning. One of the best options is to start investing in
mutual funds through a SIP (Systematic Investment Plan)

Investors who participate in a systematic investment plan (SIP) make regular, equal
contributions to a mutual fund, trading account, or retirement account.

The Systematic Investment Plan (SIP) is an investment option provided by Mutual

Funds that enables investors to invest a specified amount in a Mutual Fund scheme on
a regular basis, such as once per month or once every three months, as opposed to
doing so all at once. The instalment payment is akin to a recurring deposit and could
be as small as INR 500 per month. It's convenient since you may direct your bank to
automatically deduct the specified amount each month. SIP has grown in popularity
among Indian MF investors because it encourages disciplined investing without
concern for market volatility or market timing.
2.2 How does SIP Work?

Before you set up your SIP, there are a few essentials you need to know about how
SIP works.

There are five stages to investing in SIP from the beginning to the point where your
funds are invested in a mutual fund scheme:

1. Select a mutual fund program.

o The selection of a mutual fund plan is the first step in setting up your
SIP.
o Always do your homework and pick a strategy that fits your financial
objectives and risk appetite.
o There are many different kinds of mutual funds, each with their own
advantages and hazards, such as equity funds, debt funds, and balanced
funds.

2. Configure the SIP

o You can start up a SIP by completing a form and supplying the

necessary personal and financial information once you've decided on a
mutual fund program.
o In order to set up automatic deductions, you must also give the
information for your bank account.

3. Establish the frequency and size of the investment.

o The next step in your SIP investment journey is to choose an

investment frequency you feel comfortable with.
o The most common choice, especially among salaried investors, is a
monthly frequency since they receive their salary monthly.
o However, if you have reasons to select a different frequency, you may
choose to invest weekly, quarterly, semi-annually, or annually.
4. Start a portfolio

o As soon as you set up the SIP, the investment amount will be

automatically taken out of your bank account each month and placed in
the mutual fund plan of your choice.

5. Monitor your investment activity.

o By using your mutual fund account or the fund's website, you may
keep track of your investments and check on their performance.
o Adding to or subtracting from your SIP's investment amount, or even
stopping it altogether, are other modifications you can make.
2.3 Benefits of Systematic Investment Plans.

SIPs offer a broad basket of benefits to investors across age groups and risk profiles.
Following are some of the most prominent benefits of SIP plans:

1. Rupee Cost Averaging (Also Known As Dollar Cost Averaging)

o The concept of Dollar Cost Averaging, or DCA, served as the model for rupee
cost averaging. Benjamin Graham, the author of The Intelligent Investor, first
presented us with this strategy.
o By investing modest sums on a regular basis, rupee cost averaging enables you
to average out the expense of your investment over time.
o It is one of the most prominent benefits of SIPs because it eliminates the need
to time the market. Investors try to time the market by investing money based
on momentary market movements and due to a lack of expertise, can end up
losing money in the process
o SIPs take out the guesswork since it involves investing a fixed amount at
predetermined intervals, regardless of the market’s position.
o When the markets, and consequently a mutual fund’s NAV, are low, you’re
allotted a greater number of units for the amount you invest, on the other hand,
you’re allotted fewer units when the markets are at a peak.
o Over the long term, this reduces your average cost per allotted unit.
o Here's an illustration to help you understand:You invest Rs. 1000 in shares of
ABC Ltd., each of which was worth Rs. 100 and represented 10 shares.
However, the shares became more expensive as their price rose. As a result,
when you invested 1000 rupees the next month, you only managed to purchase
8 shares at the same price. You received 12 shares for the same price after the
price dropped the next month. Hence, when the markets were expensive, you
purchased fewer shares, whereas when they were inexpensive, you purchased
more shares at the lower price. This means that by merely adhering to a
disciplined method of investing the same amount each month, you were able
to average out the cost of your investment.
2. Investment Discipline

o By mandating you to set away a specific sum of money each month, SIPs
promote a disciplined approach to investing.
o For long-term financial success, it is essential that you develop a disciplined
saving and investing habit
o You don’t need to make an extra effort for monthly contributions either. The
money is automatically debited from your registered account each month
o The benefits of wealth compounding over decades are also more
advantageously realized with investing discipline than they would be with
lump sum investments.

3. Flexibility and Convenience

o For those who are busy or don't have the time to actively manage their
investments, SIPs are a practical choice
o Due to the lower investment amount and the spread out investment
management fees over a longer time frame, investing through SIPs is more
affordable and has a smaller negative influence on overall results.

4. No Market Dependency

o There are common market myths that say one shouldn't invest in the markets
while they are high because the returns will be low, but with a systematic
investment plan, you'll obtain full rupee cost averaging and superior control
over the investment process.
o As prices fall, more units will be bought, bringing the rupee cost value in the
market to an average when prices are high and low, respectively
o Therefore, you shouldn't let the timing of the market dictate how you fund
your SIPs, and you should start them as early as possible to reap the most
rewards in the long run.
5. Large Wealth Creation

o With just a little initial investment, these SIP investments allow you to easily
build substantial wealth over time.
o The key to building substantial money is compound interest; the longer you
give an investment to grow, the more you'll get back when it's fully developed.
o One should therefore concentrate on establishing their SIP as soon as feasible,
even with modest sums that can be increased later to provide further benefits
brought on by the force of compounding.
o A delay of 5–10 years can make a significant impact when it comes to the final
cost because this amount keeps on rising annually with significant margins.
6. Professional management

o Mutual funds are managed by experts that have a proven track experience as
portfolio managers.
o They also have a team of research analysts at their disposal that monitor the
markets and gauge investment opportunities.
o Since your SIP investments are investments in mutual funds, you benefit from
the fund manager’s expertise
o This is especially important for someone who doesn’t understand financial
jargon or the markets. Instead of risking your capital, let an expert manage
your money.
o In essence, SIPs allow you to outsource investment expertise to a fund
manager who manages the mutual fund’s assets to optimize the returns for its
investors. It’s a win-win.
2.4 Types of SIPs

Now that a lot of ground has been covered on what SIP is, how SIP works, and the
benefits of SIP, let’s talk about the types of SIPs you can opt for.

1. Regular SIP

o The most straightforward sort of investment strategy is a regular SIP. With this
SIP, the investor makes recurring, fixed-amount investments.
o It is possible for the SIP to occur monthly, bimonthly, quarterly, or half-yearly.
o Additionally, there are SIPs that are daily and weekly. These, however, are not
the ones we advise.
o Investors can specify the duration, frequency, and quantity of their SIPs when
making their selection.
o A standard SIP does not allow for adjustments to the investment amount
during the investment period.

2. Flexible SIP

o A flexible Systematic Investment Plan, sometimes known as a "flexi SIP," is

quite similar to a traditional SIP.
o The size of the investment is the sole factor that separates the two, though.
o In a flexible plan, you are always free to change or modify the contribution
you desire to make.
o Flexi SIPs provide you more control over your investments than a
conventional plan because you can modify the contribution amount.
3. Top Up SIP

o This kind of Systematic Investment Plan, also referred to as a step-up SIP,

enables you to raise your contributions at specific pre-set periods.
o With a top-up SIP, you may, for instance, begin by investing Rs. 5,000 each
month and direct the fund house to boost the contribution amount by Rs. 1,000
every six months until the end of the period.
o Therefore, for the first six months of the SIP, you will contribute Rs. 5,000
each month, and for the next six months, Rs. 6,000 each month. This continues
during the SIP tenure.

4. Perpetual SIP

o A perpetual SIP has absolutely no definite duration, as the name suggests. As

long as the person keeps making monthly contributions, the investing strategy
remains active.
o Only when the investor gives the fund house a stop instruction does it come to
an end. The distinction between a permanent SIP and a regular plan is limited
to this one point.

5. Trigger SIP

o Setting a trigger for your SIP investment is possible with the Trigger SIP. For
instance, you can specify that only in the event that the scheme's Net Asset
Value (NAV) falls to a specific level should the SIP amount be taken from
your bank account and used to buy units of the chosen scheme.
o Other trigger choices include certain dates and even index levels like the Nifty
or Sensex. Only seasoned investors with the expertise and experience to
arrange such triggers efficiently should choose this alternative, nevertheless.
2.5 Difference between SIP and Lump sum

o SIPs include making regular payments to a mutual fund scheme, whereas lump
sum investments are made in a mutual fund all at once.
o If you have 50,000 to invest, for instance, you have two options: either you
invest it all at once in a lump amount of 50,000 or you create a systematic
investment plan and invest 5,000 every month for the following 10 months.
o When choosing between SIPs and lump sums, most investors will often do
better with SIPs.
o This is because being able to time the market is key to generating better
returns from your lumpsum investment. If you make a lumpsum investment
when the markets have peaked, you could end up with negative returns.
However, with SIPs, you make contributions during the peak as well as when
markets hit rock bottom, which eliminates the need to time the market. There
are several other benefits to investing via SIPs as well.
2.6 Things the Salaried Employee must consider while starting SIP

Before you initiate your first SIP investment plan, there are a few things you should
consider about the mutual fund scheme you start the SIP for.

1. Investment goals

o It's wise not to declare "growing wealth" as your aim when you first start
investing.
o Establish a connection between your investments and significant life events
that might demand a sizable sum of money, such as a larger home, your child's
education expenses, or your retirement.
o This will make it simpler for you to take corrective action when necessary by
allowing you to monitor your goals and the performance of each of your
investments.

2. Time horizon and risk appetite

o You can determine the number of years it will take you to reach a goal if you
have one in mind.
o A longer time horizon allows you to potentially accept greater risk than a
shorter one would. Stick to short-term mutual fund investing if you're
approaching retirement and don't want to incur many risks.
o Along with the time horizon, your wealth and mental toughness are also
determinants of your risk tolerance.
o For instance, if your income is steady, you could be more willing to take risks
since you have a steady monthly cash flow.
o It might be challenging for some investors to stick onto their investments
during a sell-off. They risk losing money if they sell out of fear when the
markets fall. If you don't think you can take the turbulence of the stock
markets, think about staying with debt or arbitrage funds.
3. Mutual Fund Category

o Given the vast array of options available, this is a crucial factor to take into
account. When choosing a mutual fund category, you should take your time
horizon and risk tolerance into account.
o You may be able to invest in classes like specialized funds or small-cap funds
if you have a longer time horizon and are more willing to take on risk. Debt
funds are a good choice if you are at the opposite end of the risk spectrum or
have a limited time horizon. Perhaps hybrid funds might be a wise choice if
you fall squarely in the middle.

4. Do a trail run for your strategy

o After you've determined all the factors, attempt to use an internet calculator to
conduct a test investment throughout your time horizon to see how much you
will earn in returns and how much your maturity value will be. This will make
it easier for you to determine whether your chosen investment plan will truly
enable you to reach the objective you're trying to attain.
o You might use a SIP calculator to simulate your returns and determine how
much money you'll make based on your estimated rate of return and monthly
contribution amount. With respect to a certain time horizon, anticipated rate of
return, and inflation rate, you might use the tool to determine how much you
would need to invest each month.
2.7 Three things a salaried employee must check before selecting a
Mutual Fund

1. Downside Protection

o Checking the fund's downside protection is the first step in this process. Let's
say, for illustration, that a certain fund's returns are 25% in the first year.
However, its returns are -30% in the second year. As a result, this fund is
unsuitable for investing since it lacks downside protection.

2. Return consistency

o Second, examine the consistency of the fund's returns. For instance, a certain
fund's return in the first year was 9%. It drops to 9.5 percent in the second
year. The returns are 10% in the third year as well. A other fund, however, saw
first-year returns of 12 percent and second-year returns of 1 percent.
Additionally, it generated a 5.5 percent return for the third consecutive year.
o Because of its higher return constancy, the first fund outperforms the second.

3. Fund Manager

o Third, find out which fund manager is in charge of that specific fund.
o The worst-performing mutual fund may become the best-performing fund with
the help of a skilled fund manager.
o As the person in charge of selecting which stocks or securities to invest in and
how to distribute funds for a certain mutual fund, the fund manager is crucial
to the performance of your mutual fund.
o A good fund manager will ensure the success of that specific fund. The fund
could not do as well in the future, though, if the management is not very
effective.
 If you exercise these cautions while selecting a mutual fund, the funds that are the
right fit for you will be easier to select, and you call them the best mutual funds
for you.

2.8 Why shall a salaried Employee invest in Aditya Birla Sun Life
Mutual Funds?

o People seek ways to invest their hard-earned money in order to build a fortune
out of it.
o So following are the reasons why the salaried employee can invest their Hard
Earned Money in Aditya Birla Sun Life Mutual Funds.

1. Safety

o Birla Sun Life has a very strong track record and continuously works to keep
investor funds safe.
o As the Money Invested by the people is the savings from the hard earned money,
so it is the ethical responsibility to provide safety towards the money invested by
the people.

2. Consistent Income

o Birla Sun Life Mutual Fund provides a reliable source of income.

3. Building up Wealth

o It is a fantastic alternative for a long-term, gradual increase in wealth.

o Birla Sun Life Mutual Fund offers short-term investors the chance to invest and
receive a reliable monthly income.

4. Managed by well Qualified Professionals.

o At Aditya Birla Sun Life the funds are managed by the experts who have
experience and have been trained.
o The professionals currently at the end of June 2023 are managing asset of Rs.3.9
lakh Crore.

2.9 Funds offered by Aditya Birla Sun Life Mutual Fund

After considering why a salaried person should invest in Aditya Birla Sun Life
Mutual Fund, we must also have brief of different type of funds offered by Aditya
Birla Sun Life Mutual Fund.

Here is a briefing of the few of the funds offered Aditya Birla Sun Life Mutual Fund.

1. Aditya Birla Sun Life Infrastructure Fund.

o An Open-ended growth plan with the purpose to providing for medium to

long-term capital appreciation by investing largely in a diversified portfolio
of equities and equity related instruments of companies that are engaging in
the expansion and development of Infrastructure in India.

2. Aditya Birla Sun Life Small Cap Fund.

 o An Open ended Small and Mid-Cap Equity Scheme with an objective to
generate consistent long-term capital appreciation by investing predominantly
in equity and equity related securities of companies considered to be small and
midcap.
o The Scheme may also invest a certain portion of its corpus in fixed income
securities including money market instruments, in order to meet liquidity
requirements from time to time.
.
3. Aditya Birla Sun Life Midcap Fund.

o An Open ended Growth Scheme with the objective to achieve long term
growth of capital at controlled level of risk by investing primarily in
‘Mid-Cap’ Stocks.
o The level of risk is somewhat higher than a fund focused on large and liquid
stocks.
o Concomitantly, the aim is to generate higher returns than a fund focused on
large and liquid stocks.

4. Aditya Birla Sun Life Pure Value Funds.

o An Open ended Diversified Equity Scheme with the objective to generate

consistent long-term capital appreciation by investing predominantly in equity
and equity related securities by following value investing strategy.

5. Aditya Birla Sun Life Banking and Financial Services Fund.

o The primary investment objective of the Scheme is to generate long-term

capital appreciation to unit holders from a portfolio that is invested
predominantly in equity and equity related securities of companies engaged in
banking and financial services.

6. Aditya Birla Sun Life Digital India Fund

o A multi-sector open-ended growth scheme with the objective of long term
growth of capital, through a portfolio with a target allocation of 100% equity,
focusing on investing in technology and technology dependent companies,
hardware, peripherals and components, software, telecom, media, internet and
e-commerce and other technology enabled companies.
o The secondary objective is income generation and distribution of dividend.

7. Aditya Birla Sun Life Dividend Yield Fund

o An Open-ended growth scheme with the objective to provide capital growth

and income by investing primarily in a well-diversified portfolio of dividend
paying companies that have a relatively high dividend yield.
o It is a perfect option for the person who are preferring the regular dividend
rather than capital appreciation.

8. Aditya Birla Sun Life India GenNext Fund.

o An Open-ended growth scheme with the objective to target growth of capital

by investing in equity/equity related instruments of companies that are
expected to benefit from the rising consumption patterns in India, which in
turn is getting fuelled by high disposable incomes of the young generation
(Generation Next).
o The scheme will invest in companies that have the following characteristics:
1. Companies that seek growth in revenues arising out of demand from the
younger generation (GenNext) for their products or services.
2. They should be engaged in manufacturing of products or rendering of
services that go directly to the consumer.
3. The products and services should have distinct brand identity, thereby
enabling choice.

9. Aditya Birla Sun Life Equity Fund

o An Open-ended growth scheme with the objective of long term growth of
capital, through a portfolio with a target allocation of 90% equity and 10%
debt and money market securities.
10. Aditya Birla Sun Life Frontline Equity Fund

o An Open-ended growth scheme with the objective of long term growth of

capital, through a portfolio with a target allocation of 100% equity by aiming
at being as diversified across various industries and or sectors as its chosen
benchmark index, S&P BSE 200.
 So above is the list of few from the many mutual funds offered by Aditya Birla Sun
Life Mutual Fund.

Now, considering the list of above mentioned list of Mutual Funds, let us take an
example where a salaried person has invested Rs. 10,000 in the above funds on 31st
July, 2018.

So below is the table showing the value of Rs. 10,000 on 31st July, 2023 which were
invested by the salaried person on 31st July, 2018.

Means the table shows the Wealth Appreciation created by the Mutual Funds in last 5
years.

Value Value Value Value Value

Sr in ₹ on in ₹ on in ₹ on in ₹ on in ₹ on
No 31/7/1 31/7/2 31/7/2 31/7/2 31/7/2
. Name of Fund 9 0 1 2 3

1 Aditya Birla Sun Life Infrastructure Fund 8,738 7,390 14,208 13,946 19,752

2 Aditya Birla Sun Life Small Cap Fund 7,857 6,732 13,977 13,044 16,457

3 Aditya Birla Sun Life Midcap Fund 8,560 7,947 14,033 14,845 17,504

4 Aditya Birla Sun Life Pure Value Funds 7,969 7,114 12,206 12,158 15,396
Aditya Birla Sun Life Banking and
5 Financial Services Fund 9,246 7,403 12,179 12,361 15,649

6 Aditya Birla Sun Life Digital India Fund 10,135 12,291 23,302 22,436 25,302
Aditya Birla Sun Life Dividend Yield
7 Fund 8,606 9,002 14,130 14,312 18,049
Aditya Birla Sun Life India GenNext
8 Fund 9,652 10,000 15,060 16,714 19,509

9 Aditya Birla Sun Life Equity Fund 9,555 9,491 14,978 15,060 17,685
Aditya Birla Sun Life Frontline Equity
10 Fund 9,605 9,351 13,901 14,837 17,347

So the above table shows the capital appreciation which can be achieved through long
term holding of the investment.
3.1 Introduction to Literature

The term "literature" refers to books and other written works, particularly those of
enduring or creative worth. a body of writing known as literature. This term is
customarily applied to innovative poetry and prose that stands out for the purposes of
its creators and the perceived aesthetic excellence of its implementation.

A lasting expression of a concept, emotion, or idea about life and the universe may be
found in literature.

3.2 Literature Reviews: -

1. B.Thulasipriya (2015) in their study “A Study on the Investment

Preference of Government Employees on Various Investment
Avenues”had collected information by conducting asurvey by distributing a
questionnaire to 500 in CoimbatoreDistrict using Convenient Sampling
Technique. In the study it was found that Government employees belonging to
the age group of above 50 years have high level of preference for investment.
Government employees who are single have high level of preference for
investment. It was further found that the high level of preference towards
investment is observed to be high among the Government employees having a
monthly savings bracket of Rs.7,501/- to Rs.15,000/-. Regarding the
association between employee age and risk tolerance levels, this study
supports past findings. The current study has significant ramifications for
investment managers as a result of several intriguing findings about individual
investors. The employees continue to favor financial investments that offer
risk-free returns.
2. Dr. Bhawana Bhardwaj, Dr. Nisha Sharma and Dr. Dipanker
Sharma(2013) in their study “Saving And Investment Pattern Of
Employees Of Bhara University, Solan (HP)”according to a study of 50
randomly chosen employees from various departments (both teaching and
non-teaching).80 percent of the employees at Bhara University are aware of
industrial securities, but only 8 percent of them are investing in them. While
the majority of employees do not invest in industrial securities, some
employees have invested in equity shares and a very small number in
debentures. The majority of employees are aware that they may invest in
securities, but they choose not to do so since they believe it to be a risky
practice.

3. Dr. Govind M. Dhinaiya (2018) in his study “Investment Pattern of

Salaried Individuals” collected data sample of 200 salaried individual in the
city of Surat, Gujarat. From the study done it was found that Future Need,
Retirement and Wealth Creation are purposes of investmentand Capital
Appreciation and Risk are the most important factors considered by the
salaried individual.

4. Dr. Nishi Bhardwaj and Shivani Chouhan (2019) in their study “Saving
And Investment Pattern Of Salaried Employees At Chandigarh
University” had collected data of 80 respondents. The study was carried on by
Descriptive sampling technique.The research also showed that respondents are
aware of the criteria for choosing investments and favor those with high
returns on their investments. The majority of respondents make investments in
tax-efficient goods like life insurance. None of the staff are unhappy with
these investments. Employees are more likely to make bank deposits
investments than other types of investments, and they tend to do so primarily
for reasons of safety. It is advised that workers utilize their surplus in a variety
of ways to maximize their return.
5. Dr. Vijay Gondaliya and Luhar Hardik Tejendrakumar (2022) in their
study “To Study On Perception Level Of Investors Towards Systematic
Investment Plan (Sip) With Respect To Chikhli Region” had cpllected data
of 120 people and sampling techniques used in the study are non-probability
convenience sampling. For data analysis, statistical methods include basic
percentage analysis, frequency distribution tables, correlations, T-tests, and
normality tests have been employed using a variety of charts from MS Excel
and SPSS.This study reflects the goal of saving, perceptions, and variables
taken into account before making an investment, taking into account the
different types of Individual Investor people. This research focused on finding
the aspects taken into account by employed people before investing.
Individual investors' and entrepreneurs' attitudes toward different investment
avenues are identified depending on their jobs while choosing a particular
avenue.The current study has significant investment manager implications
since it has shown several intriguing aspects of the individual investor. The
average investor still favors financial products that offer risk-free returns. This
demonstrates that people, even those with great incomes, advanced degrees,
and independence, are conservative and prefer to be safe.

6. Geethu Gopi, D. Priyanka And R. Preetha (2018) in their study

“Investment is an activity confined to specific financial aims of
investors”This research makes an effort to comprehend the investing
preferences of salaried workers in the district of Ernakulam. The sample is
chosen using an easy random sampling technique. Utilizing several statistical
methods, including the T test, chi square analysis, correlation analysis, and
percentage analysis, the author analyzed the data that was gathered. The
study's findings indicated that most employee investments go toward their
own needs.
7. Mr. P. Kanagaraj and Pavithra. S (2015) in their study “A Study on
Investment Pattern towards Salaried Employees in Coimbatore City” had
collected a data from 120 people. The analysis in this study is done by using
Simple Percentage Analysis and Ranking Analysis. Based on the study's
findings, it can be said that employees have demonstrated that they are content
with their investing practices and that they are adhering to sound investment
policies. According to the study's findings, a number of factors, including
employee perception, have contributed to the investment's appreciation.
Similar investor group perceptions will improve the efficiency of investments.
Employees participate in a variety of investment opportunities, which helps to
expand the national economy in addition to the labor they provide to their
particular organizations. The economy as a whole will continue to develop as
a result, and employee investors in particular will get greater income in the
form of yield.

8. P. Arul Prasad and L. Vijayakumar (2017) in their study “ Pattern of

Savings and Investment of Teachers – A Study of Warangal District”
came to the conclusion that there is a connection between the factors that
influence saving and the pattern of saving and investing. Additionally, it is
concluded that because instructors are not familiar with stock market
activities, they are less likely to invest in the stock market. The majority of
instructors prioritize bank accounts, gold, and post office schemes. The shares
are given the least preference.This study shows that because they are not
interested in taking on high risk, elementary and secondary school instructors
opt for low risk, poor return investments. They choose for low-risk, low-return
savings options like bank deposits.Additionally, it has been shown that the
public's capacity for saving and investing has grown along with their
understanding of available investment options. If people can examine
risk-return portfolios, they will be able to increase their savings.
9. Puneet Bhushan (2014) in his study “Relationship between Financial
Literacy and Investment behaviour of salaried individuals” had collected
data 516 people in the state of Himachal Pradesh through questionare.
Respondents were divided into the "High Financial Literacy Group" and the
"Low Fi-nancial Literacy Group" in order to study how the financial literacy
level of salaried people influences their awareness of financial goods. The
findings indicate that, with the exception of post office savings, respondents in
the high financial literacy group have greater levels of awareness for all
financial products. For bank fixed deposits, savings accounts, public provident
funds, mutual funds, stock market investments, and bonds, statistically
significant differences in knowledge levels have been discovered.
Additionally, individuals with little financial literacy tend to invest more in
conventional and secure financial products and less in ones that are somewhat
riskier and provide greater returns.

10. R. SreePriya and P. Gurusamy (2013) in their study “Investment Pattern

of Salaried People – A Study in Coimbatore District” with a sample of 150
respondents and concluded that majority of the respondents are educated up to
college level and they are aware of the investment avenues. Additionally, it
was found that bank deposits were the most popular investment and that the
majority of respondents favoured long-term investments. They haven't had any
issues with their money. The survey also highlighted the strong correlation
between respondents' educational attainment and satisfaction levels.
● Introduction

Research Methodology intends to explain how the researcher plans to conduct the
research. It is a rational, methodical approach to resolving a research issue. To
guarantee accurate and valid results that meet the researcher's goals and objectives,
methodology describes the researcher's approach to study.

When the clear procedure, objectives, etc are being presented in the research
methodology it is considered as good research methodology.

● Meaning

A research methodology is a description of the steps used to conduct a certain type of

study. It outlines the methods or processes used to locate and evaluate data pertaining
to a certain research topic. The research methodology, then, concerns how a
researcher plans their study in a way that enables them to get accurate, trustworthy
data and accomplish their research goals.

1. Need of Study

The main purpose of the study is to study the perception of the salaried employees
towards systematic investments plans. Along with also studying their behaviours and
attitude towards investment through SIPs.

2. Rational of the study

The study shows what are the factors that affect the decision making process of
making investment through SIPs. Like the demographics of a salaried person also
affects his decisions in the above matter. Further the social surroundings and the
financial responsibilities of the salaried person affect his decision of investing. Further
there many different factors affecting the decision to invest in SIP. Hence the rationale
of this study is to understand the perception of salaried employee towards investing
through SIPs.
3. Statement on the Problem
A research problem titled “Perception of Salaried Employees towards Systematic
Investment Plan”.

4. Significance of Problem
Today where the middle class salaried employee earns the hard earned money after
much hard work, it would be a very difficult and important for him to decide that
where he would invest the money he has earned. This decision depends on many
factors such as the longevity of investment, the risk that he wants to carry with the
investment. As this are the hard earned money he had been saving for a purpose it
would be very important for him to invest in such a way that they are managed
properly.

5. Formulation of problem
So after considering the problem, the very suitable type of investment form for a
salaried employee to invest its saved money on a regular basis would be SIPs. So
investing through the SIPs many of the problems that the investor would avoid are
like doing portfolio management, timing the market, etc. The best advantage that the
investors would have is the SIP Funds are managed by highly qualified experts who
carry a large amount of experience.

6. Objective of Study

● To understand the behaviour of the salaried people towards ideology of

investing what they have saved.
● To understand the relation between the demographics and the amount of
investment made through SIP.
● To understand the motive of the salaried employee behind making the
investment through SIP.
 ● To understand the amount of investment done out of their total income in
reference to many factors.

7. Scope of Study

● The Study is restricted to the investors who are salaried employees.

● The Study is restricted to only SIP form of investment done.
● The study shows whether the investor are satisfies by their current investment
through SIP or not.
● The study deals with various demographic and social factors that impacts the
decision and quantum of investment through SIP.

8. Research Design

“Descriptive Design”

The framework created by a study design aids in resolving the issue at hand, which is
how to collect, quantify, and analyse.The research design used to collect the data in
this research is “Descriptive Design”.

So the research adopts the data such as demographics of the salaried employee, their
preferences in the investment, quantum of investment and the satisfaction from the
SIPs.

9. Source of Data

● The data is collected for conducting the research in two ways: -

Primary Data
Secondary Data
● Primary Data: - Questionnaire.
● Secondary Data: - Websites, Journals, Magazines, Articles, Books, Other
sources.
● Primary Data has been used in this research.
10. Sampling Plan

● Sample Plan
In the research done the complete population from whom the data is collected
would be included in the analysis done.

● Sample Size
Data from 100 salaried employees is collected through the questionnaire.

● Sampling method
In the current research Non Probability method has been used for data
collection from the population.

● Sample technique
The sampling technique used are percentage analysis, tabulation and graphical
representation.

● Sample Tool
The Sample Tools used in this research is Questionnaire.

● Data analysis tool

For tabular and graphical representation Microsoft Excel & MicrosoftWord are
used.

● Sampling Unit
The sampling units used in this research study are the salaried employees
making investment through SIPs.
11. Limitation of the study

● Limitations

o The below mentioned study and analysis is only related to the salaried
class of people investing through SIP, so any other people are not
qualified for providing responses through questionnaire.

o The questionnaire’s response are filed by the salaried employees based

on their independent opinions.

o This study doesn’t checks the trueness and fairness of the opinion
given by the people in the questionnaire.

o A Complete analysis cannot be done as the people would not share the
true data or correct data many times.

o Hence the below study is as per the data collected through

questionnaire.
1. Age

Table 1.

Responden
Particular t
Under 18 9
18-30 61
30-40 9
40-60 20
Above 60 years 1
Grand Total 100

Chart No. 1

Interpretation

According to the analysis most of the respondent belong to the age group of 18 to
30, amounting to 61% of total respondents. And the least response have been
received from age group of 60, amounting to 1% of total responses.
2. Gender

Table No. 2

Responden
Particular t
Female 49
Male 51
Grand Total 100

Chart No. 2

Interpretation

In the analysis done, 49% respondent are female whereas 51% of the respondents
are male.
3. Type of Employment

Table No. 3

Particular Respondents
Government employee 14
Private employee 86
Grand Total 100

Chart No. 3

Interpretation

In the analysis done for the perception of salaried employees towards SIP, out of
total respondents 14% of the respondent are engaged as government employees,
where else the remaining 86% of the respondent are engaged in private
employment.
4. Type of Investor: Regular or New

Table No. 4

Responden
Particular t
New investor 48
Regular 52
Grand Total 100

Chart No. 4

Interpretation

In the analysis done for the perception of salaried employees towards SIP, out of
total respondents 48% of the respondent are new investor and the remaining 52%
respondent are new investors.
5. Percentage of Income Invested

Table No. 5

Respondent
Particular s
1 - 10% 30
11 - 20% 42
21 - 30% 18
31 - 40% 7
Greater than 40% 3
Grand Total 100

Chart No. 5

Interpretation

In the analysis done, 30% of employees invest their 1% to 10% of income whereas
42% invest their 11% to 30% of the income. Only 3% of people invest more than
40% of their income.
6. Purpose of Investing

Table No. 6

Respondent
Particular Count ( as multiple
Option can be Percentag
selected) e
Tax Saving 25 18.80%
Post Retirement Life 43 32.33%
For any specific
expenditure 28 21.05%
Other Motive 37 27.82%
Total 133 100.00%

Chart No. 6

Interpretation

From the analysis, it can be found out that 43 respondent are investing for
Post-Retirement life, whereas 25 respondent are also investing for tax saving and
28 respondent are investing for any specific expenditure of future.
7. Types of Investment Opted

Table No. 7

Particular Respondent Count ( as multiple

Option can be selected)
Insurance 36
Mutual funds 72
Fixed deposit 33
Equities 41
PPF and Pension Schemes 28
Total 210

Chart No. 7

Interpretation

From the analysis it can be found that, 72 people are investing in mutual fund
whereas 36 in insurance, 33 in FDR, 41 in equities and 28 in PPF& Pension
schemes.
8. Tenure of Investment

Table No. 8

Responden
Particular t
Long Term 81
Short Term 19
Grand Total 100

Chart No. 8

Interpretation

As per the analysis, 81 respondent have invested their money for long term tenure
whereas remaining 19 respondent have preferred short term tenure.
9. Expectation of Return on Investment

Table No. 9

Respondent
Particular s
Fixed return: 5 - 8 % 23
Market based return: 10 -
15% 68
Others 9
Grand Total 100

Chart No. 9

Interpretation

As per the above analysis, 23 respondents are expecting fixed returns of 5% to 8%,
whereas the remaining 68 respondents are expecting market based return of 10% to
15%.
10. Preferred way of investment in mutual fund.

Table No. 10

Responden
Particular t
Lump sum 17
Systematic investment
plan 83
Grand Total 100

Chart No. 10

Interpretation

As per the analysis, 83 of the respondents prefer SIPs while investing in mutual
fund whereas the remaining 17 prefer investing Lump-sum amount.
11. Preference of Mutual Fund Scheme ( 1 is least and 4 is maximum)

Table No. 11

Equity Debt Balance Multi Asset

Particular based Based d Allocation
(Least) 1 20 17 15 17
2 10 22 27 24
3 30 47 38 30
(Maximum)4 40 14 20 29
Total 100 100 100 100

Chart No. 11

Interpretation

As per the analysis most priority i.e. No. 4 is given by the respondent to Equity
Based whereas the lowest most priority is given to balanced fund. The second
priority of most of the respondent is debt based or balanced mutual fund.
12. Preference of Mutual Fund Return based Scheme ( 1 is least and 5 is maximum)

Table No. 12

Mid/
Particula Growth Sector Small Dividend
ELSS
r fund Fund Cap fund
Fund
(Least)1 18 8 7 15 18
2 8 31 22 25 17
3 25 29 36 18 23
4 24 20 25 30 24
(Highest)5 25 12 10 12 18
Total 100 100 100 100 100

Chart No. 12

Interpretation

As per the analysis most priority i.e. No. 5 is given by the respondent to Growth
Fund whereas the lowest most priority is given to Mid Cap/ Small Cap Funds. The
second priority of most of the respondent is ELSS or Mid Cap/ Small Cap Funds.
13. Mutual Funds Invested

Table No. 13

Mutual Fund Respondent

Aditya birla sun life mutual
funds 38
HDFC 18
ICICI Prudential funds 9
Others 19
SBIMF 7
UTI 9
Grand Total 100

Chart No. 13

Interpretation

As per analysis, 38 respondent have invested in mutual fund schemes of Aditya

birla sun life mutual funds, whereas 18 have invested through HDFC, 9 through
ICICI Prudential Funds, 9 through UTI and 7 through SBI.
14. Whether satisfied with return from Mutual Funds.

Table No. 14

Respondent
Particular s
Yes 69
No 13
Maybe 18
Grand
Total 100

Chart No. 14

Interpretation

Out of 100 respondent, 69 respondents are completely satisfied from the

performance and return of their investment whereas 13 of them are not satisfied by
the performance and return of their investment.
The following are the findings, conclusion from the analysis done from
the above study: -

● As per the analysis, the youth of today at the age of 21 – 30 starts investing for
their post retirement life.

● Majority of the people invest in the mutual fund for long term wealth creation.

● The selection of mutual fund schemes depends on various factors.

● The employed sector investors prefer mutual fund over other investment options.

● Today’s investor also understand the concept of risk and returns goes hand in hand,
as they expect market rate of return as they invest in mutual fund rather than
guaranteed returns investment.
1. https://www.etmoney.com/learn/mutual-funds/what-is-mutual-fund/

2. https://en.wikipedia.org/wiki/List_of_asset_management_firms

3. https://mutualfund.adityabirlacapital.com/about-us/our-vision-and-values

4. https://en.wikipedia.org/wiki/Aditya_Birla_Sun_Life_Asset_Management

5.https://upload.wikimedia.org/wikipedia/commons/thumb/6/68/ABSL_Logo_Square.
png/600px-ABSL_Logo_Square.png

6.https://www.motilaloswalmf.com/investor-education/blog/systematic-investment-pl
an-advantages-meaning-types/

7.https://www.motilaloswalmf.com/investor-education/blog/systematic-investment-pl
an-advantages-meaning-types/