IMPACT OF MUTUAL FUNDS AND SIP AMONG YOUNGSTERS IN

MUMBAI

A Project Submitted to

University of Mumbai for partial completion of the degree of

Bachelor in Commerce (Accounting and Finance)

Under the Faculty of Commerce

By

Ms. Shruti Babaji Gunjal

9235

Under the Guidance of

Prof. Jewel Sabhani

Hindi Vidya Prachar Samiti’s

Ramniranjan Jhunjhunwala College of Arts, Science & Commerce
(Empowered Autonomous College)
Affiliated to UNIVERSITY OF MUMBAI
March 2024

1
 Hindi Vidya Prachar Samiti’s
Ramniranjan Jhunjhunwala College of Arts, Science & Commerce
(Empowered Autonomous College)
Affiliated to UNIVERSITY OF MUMBAI

CERTIFICATE

This is to certify that Ms. Shruti Babaji Gunjal has worked and duly completed her/his Project
Work for the degree of Bachelor in Commerce (Accounting & Finance) under the Faculty of
Commerce in the subject of Accounting and Finance and her project is entitled ‘Impact
of Mutual Funds and SIP Among Youngsters in Mumbai’ under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is her/ his own work and facts reported by her/his personal findings and investigations.

Seal of the
College Name and Signature of
Guiding Teacher
Prof. Jewel Sabhani

Date of Submission: 05/03/2024

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 DECLARATION BY LEARNER

I the undersigned Ms. Shruti Babaji Gunjal here declare that the work embodied in this project
work titled ‘Impact of Mutual Funds and SIP Among Youngsters in Mumbai, forms my
own contribution to the research work carried out under the guidance of
Prof. Jewel Sabhani is a result of my own research work and has not been previously submitted
to any other University for any other Degree/Diploma to this or any other University.
Wherever reference has been made to previous works of others, it has been clearly indicated as
such and included in the bibliography.
I, hereby further declare that all information of this document has been obtained and presented
in accordance with academic rules and ethical conduct.

Shruti Babaji Gunjal

Roll Number: 9235

Certified by
Name and Signature of Guiding Teacher
Prof. Jewel Sabhani

Date: 05/03/2024

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 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic channels and fresh dimensions in
the completion of this project.
I take this opportunity to thank the University of Mumbai for giving me the chance to do this
Project.
I would like to thank my Principal, Dr. Himanshu Dawda for providing the necessary
facilities required for completion of this project.
I take this opportunity to thank our Coordinator Prof. Rekha Shetty for her moral support and
guidance.
I would also like to express my sincere gratitude towards my project guide Prof. Jewel Sabhani
whose guidance and care made the project successful.
I would like to thank my College Library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in the
completion of the project especially my Parents and Peers who supported me throughout my
project.

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 Table of Contents

Sr. No. Topics Page No.

1 Introduction
1.1 Introduction of Mutual funds
1.2 History of the Indian Mutual funds
1.3 Types of Mutual Funds
1.4 Classification of Mutual Funds
1.5 The Structure of mutual fund
1.6 Systematic Investment Plan (SIP) 6 - 35
1.7 Types of systematic investment plan
1.8 Features of SIP
1.9 How does SIP work?
1.10 Advantages & Disadvantages of SIP
1.11 Things to Consider While Starting SIP
1.12 Contribution towards mutual fund SIP changes:

2 Research Methodology
2.1 Objectives
2.2 Scope
2.3 Significance
2.4 Limitations
2.5 Selection of the Problem
2.6 Data Collection 36 – 43
a. Primary Data
b. Secondary Data
2.7 Sample size
2.8 Tabulation of Data
2.9 Techniques and Tools

3 Literature Review 44 - 50

4 Data Analysis, Interpretation and Presentation 51 - 63

5 Conclusions and Suggestions 64 – 67

6 Appendix 68 - 70

7 Bibliography 71 - 72

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 CHAPTER 1
INTRODUCTION

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 Introduction

A mutual fund is a professionally managed investment scheme that pools money from multiple
investors to purchase a diversified portfolio of stocks, bonds, or other securities. Each investor
owns shares, which represent a portion of the holdings of the fund.
The financial system is a set of institutional arrangement through which financial surpluses
available in the economy are mobilized. A financial system, which is inherently strong.
Functionally diverse and displays efficiency and flexibility, is critical in creating a market-
driven, productive and competitive economy. A mature financial system has to gear up and
undergo varied and comprehensive changes in order to achieve rapid economic development.
Early 1990s financial sector reforms in India led to the country's economy growing rapidly, the
Indian financial market becoming open to both foreign and domestic private players, a
significant influx of foreign institutional investors, more competition, and improved consumer-
facing products. The rise of mutual funds has been one of the decade's most significant trends.
In India, the fastest-growing area of the financial services industry is mutual funds, which have
become a powerful financial middleman. The objective is to foster a financial industry that is
competitive, efficient, and diverse in order to boost return on investment and stimulate
economic growth. Small investors who are unable to make direct stock market investments can
use this kind of investing.
Mutual funds now play a very significant role in channelizing the savings of millions of
individuals. The mutual fund industry in India over the year has seen dramatic improvement in
terms of quantity as well as quality of product and service offering in recent years. The
tremendous growth of Indian mutual funds industry is an indicator of India’s efficient financial
market and the trust which investors have on the regulatory environment. Millions of investors
rely on mutual fund as their primary investments because they offer a convenient, cost-effective
and easy way to invest in financial markets. The securities exchange board of India (SEBI)
regulates this fast-growing industry and it is the representative body of all mutual funds in the
country. Every mutual fund has a goal- either growing its assets (capital gains) and/or
generating income (dividends) for its investors. Distribution in the form of capital gains (short-
term and long-term) and dividends may be passed on to the shareholders as income or
reinvested more shares. A mutual fund is valued daily and reports a price known as net asset
value (NAV) per share. In its simplest form, a NAV is the total value of all securities held in a
fund divided by the total no. of shares owned by its shareholders. As the price of the NAV
increases or decreases, the Shareholders value will increase or decrease.

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Mutual funds are managed by professional fund managers or management teams who make
investment decisions on behalf of the investors. They aim to achieve specific investment
objectives, such as capital appreciation, income generation, or a combination of both.
Investors can choose from various types of mutual funds based on their investment goals, risk
tolerance, and time horizon. Some common types include equity funds, bond funds, money
market funds, balanced funds, and index funds.
One of the key benefits of mutual funds is diversification, which helps spread investment risk
across different asset classes and securities. They also offer liquidity, as investors can typically
buy or sell fund shares on any business day at the fund's current net asset value (NAV).

1.1 Introduction of the mutual funds

The global economic environment was conductive and this led to explosive growth of mutual
funds in most countries particularly since 1980s. this growth can be attributed to the strong
emergence of the market economy which depends more on the growth led by the stock market.
Mutual funds found increasing acceptance in the developed countries when compare to the
developing countries in the early and mid-90s but gradually it found its place even in the
developing countries because of its advantages. Gradually in number of mutual funds increased
significantly worldwide and many developed countries started designing country specific funds
to match the trend prevailing in other developed countries.

1.2 History of the Indian mutual fund industry

The mutual fund industry in India started in 1963 with the formation of unit trust of India. At
the initiative of the government of India and reserve bank, through the growth was slow. But it
accelerated from the year 1987 when non-UTI players entered the industry.
In the past decade, Indian mutual fund industry had seen a dramatic improvement both qualities
wise as well as quantity wise, before, the monopoly of the market had seen an ending phase;
the assets under management (AUM) was rs67 billion. The private sector entry to the fund
family raised the aim to rs.470 billion in march 1993 and till April 2004; it reached the height
if rs.1540 billion. The mutual fund industry is obviously growing at a tremendous space with
the mutual fund industry can be broadly put into four phases according to the development of
the sector. Each phase is briefly described as under.

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 ▪ First phase:

The Reserve Bank of India formed the Unit Trust of India (UTI) in 1963 through an act of
parliament. The UTI operated under the regulatory and administrative supervision of the RBI.
The Industrial Development Bank of India (IDBI) replaced the RBI as the regulatory and
administrative body after UTI was separated from the RBI in 1978. The Unit Scheme of 1964
was the first program that UTI introduced. UTI managed assets worth Rs. 6,700 crores by the
end of 1988.

▪ Second phase – 1987-1993 (entry of public sector funds)

In 1987, public sector banks, the Life Insurance Corporation of India (LIC), and the General
Insurances Corporation of India (GIC) established non-UTI mutual funds. The first non-UTI
mutual fund was launched in June 1987 and was succeeded by the Can Bank mutual fund in
December of that same year. Mutual fund of the Punjab National Bank (Aug. 89). Mutual funds
from Indian banks (Nov 1989). Mutual funds were launched by Bank of India (June 1990),
Bank of Baroda (October 1992), LIC (June 1989), and GIC (December 1990). The mutual fund
sector managed assets total Rs 47,004 crores at the end of 1993.

▪ Third phase – 1993-2003 (entry of private sector funds)

The first mutual fund regulations, which required registration and regulation of all mutual funds
with the exception of UTIs, were established in 1993. The first private sector mutual fund
registered in July 1993 was the former Kothari pioneer, which has now merged with Franklin
Templeton. A more thorough and updated mutual fund regulation took the place of the 1993
SEBI regulations in 1996.

▪ Fourth Phase (February 2003 – April 2014)

The fourth round of regulatory adjustments implemented by SEBI demonstrates additional

efforts to improve openness and fortify investor safety. Campaigns to raise awareness and
educate investors received more attention. Simplifying the industry and improving investor
experience are two benefits of the New Fund Offer (NFO) procedure and the combination of
various mutual fund schemes.

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 ▪ Fifth Phase (Current Phase – Since May 2014)

Since the launch of the Direct Plan option, which provides investors with an affordable mutual
fund investment alternative, the mutual fund sector has experienced significant expansion in
the present period, also known as the fifth phase. The industry also witnessed an increase in the
use of several digital platforms for managing mutual fund portfolios and investing.

1.3 Types of Mutual Funds

Considering investing in Mutual funds Then it is of utmost importance to understand the various
mutual fund types and the benefits they offer. Mutual fund types can be classified based on
various characteristics. Learn more about different mutual fund types below:

1. Based on Asset Class

The classification of mutual funds based on asset class is as follows:
Equity Funds
Equity funds primarily invest in stocks, and hence go by the name of stock funds as well. They
invest the money pooled in from various investors from diverse backgrounds into shares/stocks
of different companies. The gains and losses associated with these funds depend solely on how
the invested shares perform (price-hikes or price-drops) in the stock market. Also, Equity funds
have the potential to generate significant returns over a period. Hence, the risk associated with
these funds also tends to be comparatively higher.
Debt Funds
Debt funds invest primarily in fixed-income securities such as bonds, securities and treasury
bills. They invest in various fixed income instruments such as Fixed Maturity Plans (FMPs),
Gilt Funds, Liquid Funds, Short-Term Plans, Long-Term Bonds and Monthly Income Plans,
among others. Since the investments come with a fixed interest rate and maturity date, it can be
a great option for passive investors looking for regular income (interest and capital
appreciation) with minimal risks.
Money Market Funds
Investors trade stocks in the stock market. In the same way, investors also invest in the Money
Market, also known as capital market or cash market. The government runs it in association

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with banks, financial institutions and other corporations by issuing money market securities like
bonds, T-bills, dated securities and certificates of deposits, among others. The fund manager
invests your money and disburses regular dividends in return. Opting for a short-term plan (not
more than 13 months) can lower the risk of investment considerably on such funds.

Hybrid Funds
Hybrid funds (Balanced Funds) is an optimum mix of bonds and stocks, thereby bridging the
gap between equity funds and debt funds. The ratio can either be variable or fixed. In short, it
takes the best of two mutual funds by distributing, say, 60% of assets in stocks and the rest in
bonds or vice versa. Hybrid funds are suitable for investors looking to take more risks for ‘debt
plus returns’ benefit rather than sticking to lower but steady income schemes.

2.Based on Investment Goals

Here are the different types of mutual funds based on investment goals:
Growth Funds
Growth funds usually allocate a considerable portion in shares and growth sectors, suitable for
investors (mostly Millennials) who have a surplus of idle money to be distributed in riskier
plans (albeit with possibly high returns) or are positive about the scheme.

Income Funds
Income funds belong to the family of debt mutual funds that distribute their money in a mix of
bonds, certificate of deposits and securities among others. Helmed by skilled fund managers
who keep the portfolio in tandem with the rate fluctuations without compromising on the
portfolio’s creditworthiness, Income funds have historically earned investors better returns than
deposits. They are best suited for risk-averse investors with a 2-3 years perspective.

Liquid Funds
Like income funds, liquid funds also belong to the debt fund category as they invest in debt
instruments and money market with a tenure of up to 91 days. The maximum sum allowed to
invest is Rs 10 lakh. A highlighting feature that differentiates Liquid funds from other debt funds
is the way the Net Asset Value is calculated. The NAV of liquid funds is calculated for 365
days (including Sundays) while for others, only business days are considered.

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Tax-Saving Funds
Equity Linked Saving Scheme, over the years, have climbed up the ranks among all categories
of investors. Not only do they offer the benefit of wealth maximization while allowing you to
save on taxes, but they also come with the lowest lock-in period of only three years. Investing
predominantly in equity (and related products), they are known to generate non-taxed returns
in the range 14-16%. These funds are best-suited for salaried investors with a long-term
investment horizon.

Aggressive Growth Funds

Slightly on the riskier side when choosing where to invest in, the Aggressive Growth Fund is
designed to make steep monetary gains. Though susceptible to market volatility, one can decide
on the fund as per the beta (the tool to gauge the fund’s movement in comparison with the
market). Example, if the market shows a beta of 1, an aggressive growth fund will reflect a
higher beta, say, 1.10 or above.

Capital Protection Funds

If protecting the principal is the priority, Capital Protection funds serves the purpose while
earning relatively smaller returns (12% at best). The fund manager invests a portion of the
money in bonds or Certificates of Deposits and the rest towards equities. Though the probability
of incurring any loss is quite low, it is advised to stay invested for at least three years (closed-
ended) to safeguard your money, and also the returns are taxable.

Fixed Maturity Funds

Many investors choose to invest towards the of the FY ends to take advantage of triple
indexation, thereby bringing down tax burden. If uncomfortable with the debt market trends
and related risks, Fixed Maturity Plans (FMP) – which invest in bonds, securities, money market
etc. – present a great opportunity. As a close-ended plan, FMP functions on a fixed maturity
period, which could range from one month to five years (like FDs). The fund manager ensures
that the money is allocated to an investment with the same tenure, to reap accrual interest at the
time of FMP maturity.

Pension Funds
Putting away a portion of your income in a chosen pension fund to accrue over a long period to

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secure you and your family’s financial future after retiring from regular employment can take
care of most contingencies (like a medical emergency or children’s wedding). Relying solely
on savings to get through your golden years is not recommended as savings (no matter how big)
get used up. EPF is an example, but there are many lucrative schemes offered by banks,
insurance firms etc.
Based on Structure
Mutual funds are also categorised based on different attributes (like risk profile, asset class,
etc.). The structural classification – Open ended funds, close-ended funds, and interval funds
– is quite broad, and the differentiation primarily depends on the flexibility to purchase and sell
the individual mutual fund units.

1.4 Classification of Mutual Funds

1) Based on their structure:
- Open-ended funds
Investors can buy and sell the units from the fund, at any point of time.
- Close-ended funds
These funds raise money from investors only once. Therefore, after the offer period, fresh
investments cannot be made into the fund. If the fund is listed on stocks exchange the units can
be traded like stocks (E.g.- Morgan Stanley growth fund). Recently, most of the new fund offers
of close-ended funds provided liquidity window on a periodic basis such as monthly or weekly.
Redemption of units can be made during specified intervals. Therefore, such funds have
relatively low liquidity.
- Interval schemes
Interval funds combine the features of open-ended and close-ended schemes. They are open for
sale or redemption during pre-determined intervals at NAV related prices
2) Based on investment objective
- Growth Funds
Such schemes normally invest a majority of their corpus in equities. It has been proven that
returns from stocks, have outperformed most other kind of investments held over the long term.
It is ideal for investors with long term outlook seeking growth over a period of time.
- Income funds
The aim of income funds is to provide regular and steady income to investors. Such schemes

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generally invest in fixed income securities such as bonds, corporate debentures and government
securities. Income funds are ideal for capital stability and regular income.
- Balanced fund
The aim of balanced funds is to provide both growth and regular income. Such schemes
periodically distribute a part of their earning and invest both in equities and fixed income
securities in the proportion indicated in their offer documents. In a rising stock market, the NAV
of these schemes may not normally keep pace, or fall equally when the market falls. These are
ideal for investors looking for a combination of income and moderate growth.

Investment strategies:
1. Systematic investment plan:
Under this a fixed sum a invested each month on a fixed date of a month. Payment is made
through post-dated cheques or direct debit facilities. The investors get fewer units when the
NAV is high and more units when the NAV is low. This is called as the benefit of rupee cost
averaging.
2. Systematic transfer plan:
Under this an investor invest in debt-oriented fund and give instructions to transfer a fixed sum,
at a fixed interval, to an equity scheme of the same mutual fund.
3. Systematic withdrawal plan:
If someone wishes to withdraw from a mutual fund then he can withdraw a fixed amount each
month.

Options available to investors:

Each plan of every mutual fund has three options – growth, dividend and dividend reinvestment.
Separate NAV are calculating for each scheme.
- Growth option
Under this plan returns accrue to the investor in the form of capital appreciation as reflected in
the NAV. The scheme will not declare the dividend under the growth plan and investors who
opt for this plan will not receive any income from the scheme. Instead of income earned on
their units will remain invested within the scheme and will be reflected in the NAV.
- Dividend option
Under the dividend plan dividend are usually declared on quarterly or annual basis. Mutual fund
reserves the right to change the frequency of dividend declared.

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- Dividend reinvestment option
Instead of remittances of units through pay-outs, unit’s holder may choose to invest the entire
dividend in additional units of the scheme at NAV related prices of the next working day after
the record date. No sales or entry load is levied on dividend reinvest.

Mutual funds offer several features that make them popular investment
vehicles:
1)Diversification:
Mutual funds pool money from multiple investors to invest in a diversified portfolio of assets
such as stocks, bonds, or a combination of both. This diversification helps spread risk across
various securities, reducing the impact of poor performance from any single investment.
2)Professional Management:
Mutual funds are managed by professional fund managers who make investment decisions on
behalf of investors. These managers conduct research, analyzed market trends, and actively
buy/sell securities to achieve the fund's investment objectives.
3)Liquidity:
Most mutual funds allow investors to buy or sell shares on any business day at the fund's net
asset value (NAV). This liquidity provides investors with the flexibility to access their money
relatively quickly compared to other investment options like individual stocks or real estate.
4)Affordability:
Mutual funds typically have relatively low minimum investment requirements, making them
accessible to a wide range of investors. Additionally, investors can benefit from economies of
scale since mutual funds can negotiate lower trading and administrative costs due to their large
asset base.
5)Transparency:
Mutual funds are required to disclose their holdings, investment strategy, and performance data
regularly. This transparency enables investors to make informed decisions and monitor the
fund's progress towards its stated goals.
6)Variety of Options:
Mutual funds come in various types and categories, catering to different investment goals, risk
tolerances, and time horizons. Investors can choose from equity funds, bond funds, money
market funds, index funds, sector funds, and more, allowing them to customize their investment
portfolios based on their preferences.

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7)Convenience:
Investing in mutual funds is relatively straightforward, as investors can buy and sell shares
through brokerage firms, financial advisors, or directly from fund companies. Additionally,
many mutual funds offer features such as automatic investment plans and dividend reinvestment
programs, simplifying the investing process for individuals.

8)Tax Efficiency:
Mutual funds can offer tax advantages, particularly for retirement savings, through vehicles like
401(k) plans or individual retirement accounts (IRAs). Additionally, some funds are managed
with tax efficiency in mind, aiming to minimize taxable distributions to investors.
Overall, these features make mutual funds an attractive option for investors looking for a
diversified, professionally managed investment vehicle with flexibility and accessibility
Mutual funds that invest primarily in stocks are commonly known as equity mutual funds.
These funds pool money from multiple investors to invest in a diversified portfolio of stocks.
The goal is usually long-term capital appreciation.

Equity mutual funds can be further categorized based on the types of stocks they invest in,
such as:
1)Large-cap funds:
These funds primarily invest in stocks of large, well-established companies with a proven
track record.
2)Mid-cap funds:
These funds invest in stocks of medium-sized companies, which typically have higher
growth potential than large-cap stocks but also carry higher risk.
3)Small-cap funds:
These funds invest in stocks of small companies, which have the highest growth potential
but also the highest risk.
4)Sector-specific funds:
These funds focus on a particular sector or industry, such as technology, healthcare, or
energy.
5)Growth funds:
These funds invest in stocks of companies that are expected to grow at an above-average rate
compared to other companies.

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6)Value funds:
These funds invest in stocks that are considered undervalued by the market, with the
expectation that their true value will be recognized over time. Before investing in any mutual
fund, it's important to consider your investment goals, risk tolerance, and investment time
horizon. Additionally, research the fund's historical performance, fees, and the expertise of the
fund manager to make an informed decision.
Banks v/s mutual funds:
Mutual funds are now also competing with commercial banks in the race for retail investors
savings and corporate float money. The power shift towards mutual funds has become obvious.
The coming few years will show that the traditional saving avenues are losing out in the current
scenario. Many investors are realizing that investments in savings accounts are as good as
locking up their deposits in a closet. The fund mobilization trend by mutual funds indicates that
money is going to mutual fund in a big way.

Category Banks Mutual Funds

Returns Low High

Administrative Expenses High Low
Risk Low Moderate
Investments Options Less More
Network High Penetration Low but improving
Liquidity At a Cost Better
Quality Of Assets Not Transparent Transparent
Interest Calculations Minimum Balance between 10th Everyday
and 30th of every month
Guarantee Maximum Rs. 1 Lakh on deposits None

1.5 The Structure of mutual fund

The fund sponsor is the first layer in the three-tier structure of mutual funds in India. SEBI
regulations say that by fund management. This fund management is done through an associate
company which manages the investment of the fund. A sponsor can be seen as the promoter of

17
the associate of company. A sponsor has to approach SEBI to seek permission for a setting up
a mutual fund. However, a sponsor is not allowed to work alone. Once SEBI agrees to the
inception, a public trust is formed under the Indian trust act, 1882 and is registered with SEBI.
After the successful creation of the trust, trustees are registered with SEBI and appointed to
manage the trust, protect the unit holders’ interest and to comply by the mutual fund regulations
of SEBI. Subsequently, an asset management company is created by the sponsor that should be
complying with the companies act, 1956 to regulate the management of funds.
Considering that sponsor is the primary entity that promotes the mutual fund company and that
the mutual funds are going to regulate public money, there are eligibility criteria given by SEBI
for the fund sponsor:
• The sponsor must have experience in financial services for a minimum of five years
with a positive net worth for all the previous five years.
• The net worth of the sponsor in the immediate last year has to be greater than the capital
contribution of the AMC.
• The sponsor must show profits in at least three out of five years which includes the last
year as well.
• The sponsor must have at least 40% share in the net worth of the asset management
company.

As clear as it could be, the role of a sponsor is quite vital and must carry highest amount of
creditability. The strict and rigorous norms define that the sponsor must have adequate

liquidity as well as faithfulness to return the money of investors in case there is any financial
crisis or meltdown.
Trust and Trustees
Trust and trustees from the second layer of the structure of mutual funds in india. Also known
as the protectors of the fund, trustees are generally employed by the fund sponsor. Just as can
be comprehended with the name, they have a critical role to play as far as maintaining the
investors trust and tracking the funds growth are concerned. A trust is created by the fund
sponsor in favour of the trustees, through a document called a trust Deed. The trust is managed
by the trustees and they are answerable to investors. They can be seen as primary guardians of
fund and assets. The trustees can be formed by two ways

18
– a trustee company or a board of trustees. The trustees work to monitor the activities of the
mutual fund and check its compliance with SEBI regulations. They also monitor the systems,
procedures and overall, the working of the asset management company. Without the trustee’s
approval, AMC cannot float any scheme in the market. The trustees have to report to SEBI
every six months about the activities of the AMC. Also, SEBI has established tightened
transparency rules to avert any type of conflict of interest between the AMC and the sponsor.
Therefore, it is critical for trustees to behave independently and take satisfactory measures to
keep the hard-earned money of investors protected. Even trustees have to get registered under
SEBI. And furthermore, SEBI regulates their registration by revoking or suspending the registry
if any condition is found to be breached.
Asset management companies
Asset management companies are the third layer in the structure of mutual funds. Registered
under SEBI, it is a type of company that is created under the companies act. An AMC is meant
to float a variety of mutual fund schemes that are in compliance with the requirements if
investors and the nature of a market. The asset management company acts as the fund manager
or as an investment manager for the trust. A small fee is paid to the AMC for managing the
fund. the AMC is responsible for all the fund related activities. It initiates various schemes and
launches the same. Furthermore, it also creates mutual fund with the sponsor and the trustee
and regulate its development. The AMC is bound to manage funds and provide services to the
investor. It solicits these services with other elements like brokers, auditors, bankers, registers,
lawyers, etc. and works with them by getting into an agreement together. To ensure that there
is no conflict between the AMCs, here are certain restrictions imposed on the business activities
of the companies.
Other components in the structure of Mutual funds
- Custodian
A custodian is one such entity that is responsible for the safekeeping of the securities of the
mutual fund. Registered under SEBI, they manage the investment account of the mutual fund,
ensure the delivery and transfer of the securities. Also, custodians allow investors to upgrade
their holdings at a specific point of time and assists them in monitoring their investments. They
also collect and track the bonus issue, dividends and interests received on the mutual fund
investment.
Register and transfer agents (RTGS)
RTAs act as an essential link between investors and fund managers. To the fund managers, they
serve by keeping them updated with the details of investors. And, to the investors, they serve
by delivering the advantages of the fund. Even they are registered under SEBI and execute a

19
variety of tasks and responsibilities. These are the entities who provide services to Mutual
Funds. RTAs are more like the operational arm of Mutual Funds. Since the operations of all
Mutual Fund companies are similar, it is economical in scale and cost effective for all the 44
AMCs to seek the services of RTAs. CAMS, Karvy, Sundaram, Principal, Templeton, etc. are
some of the well-known RTAs in India. Their services include.
• Processing investors application
• Keeping a record of investors details.
• Sending out account statements to the investors
• Sending out periodic reports
• Processing the pay-outs of the dividends
• Updating the investor details i.e. adding new members and removing those who have
withdrawn from the fund.
Auditor

Auditors audit and scrutinise record books of accounts and annual reports of various schemes.
They are known as the independent watchdogs who have a responsibility of auditing the
financials sponsor, trustees and the AMC. Each AMC hires an independent auditor to analyse
the books so as to keep their transparency and integrating intact.
- Brokers
Mainly, the brokers work with a responsibility to attract more investors and to disseminate the
funds. AMC uses the services of brokers to buy and sell securities on the stock market.
Moreover, brokers have to study the market and foresee the market’s future movement. The
AMCs uses research reports and recommendations from many brokers to plan their market
moves.
Example of Three-Tiered Fund House Structure
Although there are several companies and organizations that are running according to this
system, however, one of the major companies is the Aditya Birla Sun Life Mutual Fund. Its
structure goes the following way:
• Sponsor A joint venture between Sun Life (India) AMC Investment Inc. and Aditya
Birla Capital Limited that is based in Canada.
• Trustee Aditya Birla Sun Life Trustee Pvt Ltd.
• AMC Aditya Birla Sun Life AMC Ltd.

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TWO WAYS OF INVESTMENT IN MUTUAL
➢ Lump sum payment
➢ Systematic investment plan

Lump-sum payment
A lump sum is a single payment of money. As opposed to a series of payment made over a time
(such as an annuity) this means investing the entire sum of money at one go. For instance, if
you have RS. 1 lakh which you are willing to fully invest in stock or MFs. It is lump sum
investment.
Several companies offer mutual funds. Some of the prominent ones include:
SBI Mutual Fund:
It's one of the largest mutual fund houses in India and offers a wide range of mutual fund
schemes catering to various investor needs.
ICICI Prudential Mutual Fund:
ICICI Prudential is one of the leading mutual fund houses in India, offering a diverse range of
investment options.
HDFC Mutual Fund:
HDFC Mutual Fund is another major player in the mutual fund industry, providing a variety of
investment solutions for different risk profiles.
Axis Mutual Fund:
Axis Mutual Fund is known for its innovative fund offerings and customer-centric approach.
Aditya Birla Sun Life Mutual Fund:
Aditya Birla Sun Life offers a range of mutual fund schemes across various categories to suit
different investor preferences.
Reliance Mutual Fund:
Reliance Mutual Fund is a well-known name in the mutual fund industry, offering a range of
schemes tailored to meet investors' financial goals.
DSP Mutual Fund:
DSP Mutual Fund is known for its consistent performance and diverse fund offerings.
Kotak Mutual Fund:
Kotak Mutual Fund provides a wide array of mutual fund schemes designed to meet the
investment objectives of different investors.

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Franklin Templeton Mutual Fund:
Franklin Templeton is a global investment management organization offering a range of mutual
fund schemes in India.
Mirae Asset Mutual Fund:
Mirae Asset Mutual Fund is known for its focus on research-driven investment strategies and
innovative products.
These are just a few examples, and there are many other companies providing mutual funds and
SIP services globally. It's essential to research and consider factors such as fund performance,
risk profile, expenses, and investment objectives before investing in any mutual fund scheme.

There are several mobile applications in India that allow users to invest in mutual funds.
Here are some popular ones:
Groww:
Groww is a popular mutual fund investment platform in India. It offers a user-friendly interface
and allows users to invest in mutual funds with no commission fees.
Paytm Money:
Paytm Money is a subsidiary of Paytm and offers mutual fund investment services through its
mobile app. It provides various features like paperless KYC, SIP tracking, and goal-based
investing.
ETMoney:
ETMoney is an app by Times Internet Limited, offering mutual fund investment services along
with other financial products like insurance and loans. It provides personalized investment
recommendations based on user preferences.
Zerodha Coin:
Zerodha Coin is part of Zerodha, a popular discount brokerage firm in India. It allows users to
invest in direct mutual funds with no commission fees. The app provides features like goal-
based investing and portfolio tracking.
ICICI Direct:
ICICI Direct is the mobile app offered by ICICI Securities, one of India's leading full-service
brokerage firms. It allows users to invest in mutual funds, stocks, bonds, and other financial
instruments.

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Axis Mutual Fund:
Axis Mutual Fund offers its mobile app for investors to manage their mutual fund investments.
It provides features like transaction tracking, goal-based investing, and fund performance
analysis.
These are just a few examples, and there are many more options available in the Indian market.
It's essential to research each app's features, fees, and user reviews to choose the one that best
fits your investment needs.

1.6 Systematic Investment Plan (SIP)

Introduction
A systematic investment plan (SIP) is good tool that retail investors can utilize to optimize their
investment strategy. SIP is nothing but a simple method of investing a fixed sum of money in
a specific investment scheme. On a regular basis, for a pre-determined period of time. A
recurring deposit with the post office or a recurring deposit with a bank also a SIP. Systematic
investment plan was already famous and proven in mutual fund context but now SIP has also
come directly into equity stocks which is essentially individual stocks. equity SIP is a new
facility through which you can buy a script for a regular interval over a period of time for
specified amount or for a specified quantity. Investing in mutual fund is not everybody’s cup
of tea. Being dependent on factors such as a fluctuating stock market and risking your hard-
earned money for a measly profit does not really help. If you are a disciplined investor however,
and are interested in mutual funds, then the equity systematic investment plan (SIP) would
work.
SIP requires you to invest a particular amount in a specific mutual fund scheme. In comparison,
it functions must like a recurring deposit. You can plan a savings scheme for yourself and
commit a particular sum of money each month on a pre-fixed date to the scheme. You can begin
with as low as Rs 500 in ELSS (equity linked saving schemes) schemes and move on to Rs
1000 a month for other diversified schemes. SIP follows a simple mantra – buy when high and
sell when low. This is a simple way to win in the stock markets.
However, the market needs to be timed well and this will take some time to figure out for the
novice or busy player. That’s where SIP with its monthly pay scheme comes into the Picture.
Putting in a sum of money each month will ensure that you have something in when the market
is high, and when it is low securing your position in an unstable market.

23
The discipline associated with investing strictly on a regular basis works much better that setting
aside lump sum each month. Since you begin at a relatively younger age, the benefits
of compounding are all yours. The convenience involved too is good, since you have to submit
a request for purchase of shares only once. SIPs work for investor in the slightly long run and
are useful to those who work on fixed budgets for the month, since the pre-planning helps. SIP
is very useful for a time horizon of 10-15 rears. An investor should carefully fix the amount to
be invested so that it does not impact his cash flows over this time horizon. SIP imparts
discipline to savings

WHAT IS SYSTEMATIC INVESTMENT PLAN

A systematic investment plan (SIP) is a vehicle offered by mutual funds to help investors save
regularly. It is just like a recurring deposit with the post office or bank where you put in a small
amount every month. The difference here is that the amount is invested in a mutual fund.
Systematic investment plan (SIP) is a method of investing in mutual funds wherein an investor
chooses a mutual fund scheme and invests the fixed amount his choice at fixed intervals.
SIP investment plan is about investing a small amount over time rather than investing one-time
huge amount resulting in a higher return.
SIP mainly helps us to get addicted to an investment principle-
Income - savings = expenditure, instead of following the principle of-
Income – expenditure =savings.
SIP helps investors to overcome the problem of „when‟ to invest in the equity markets as
irrespective of the state of the market an investor is always invested. SIP takes away the
decision-making and converts it into a mechanized one. The lowering of risk, by entering at
different time periods, however has the disadvantage of “averaging” out returns.

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A very important aspect to be kept in mind is the entry and exit load charged by all mutual
funds. In a normal investment most funds either charge entry load or exit load. But in a SIP
along with an entry load charged for each Instalment, an exit load is charged if the program is

withdrawn before a specified period. This period could vary from six months to two years. this
double whammy will reduce the returns in the short term. This makes SIP an inflexible
investments program and expensive if withdrawn prematurely due to unforeseen emergencies.
Finally, when considering SIP, investors should note that it does not assure a return and
continue investing without interruption as missing a few instalments could lead to termination
of the SIP. When an investor chooses to invest in mutual funds via an SIP, he makes
investments in smaller denominations at regular intervals of time rather than making a single
lump sum investment.
SIP allows you to invest a fixed amount regularly, so when funds NAV is more you get less
units and when funds NAV is higher you get less units, so over a longer time frame, SIP will
lower the average purchase cost of an investments.
As an investor, when you extend the investment period, you can earn profit on your current
profit, and accumulate more wealth. This reiterates the fact that investing fresh capital at
periodic intervals raises the accumulated investment.

1.7 Types of systematic investment plan

1)Top-up SIP This SIP allows you to increase your investment amount periodically giving you
the flexibility to invest when you have a higher income or available amount to be invested. This
is also helps in making the most out of the investments by investing in the best and high
performing funds at regular intervals.

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2)Flexible SIP
As the name suggests this SIP plan carries flexibility of amount you want to invest.an investor
can increase or decrease the amount to be invested as per his own cash flow needs preferences.

3)Perpetual SIP
This SIP plan allows you to carry on the investments without an end to the mandate date.
Generally, an SIP carries an end date after 1 year, 3 year or 5 years of investment. The investor
can hence, withdraw the amount invested whenever he wishes or as per his financial goals.

Benefits of SIPs
• Rupee-cost averaging, through regular fixed investments, helps reduce the impact of
market volatility on your portfolio by buying more units when markets are low and
fewer when they are high.
• SIP benefits from professional fund management, potentially leading to better results
than individual stock picking.
• SIP promotes financial discipline by encouraging consistent, fixed investments over
time.
• SIP leverages the power of compounding, reinvesting returns to boost your portfolio’s
value over time.

1.8 Features of SIP

1)Small and regular investment
Systematic investment plan helps you achieve your bigger financial goals even with a
small sum of amount invested every periodic interval. SIP is lighter on your wallet. It allows
you to invest a small amount as per your wallet size with as low as Rs 500/- with periodic
intervals of investments such as weekly, fortnightly, monthly, quarterly. It is a simple and
affordable way for beginners to start investing in mutual fund schemes.
2) Disciplined investment
Investors often fail to maintain the habit of investing over the period of time. A
dedicated approach and focus are the key to any investment. As the name says, systematic
investment plan is a system to invest a particular amount regularly. This naturally brings a
discipline to your investing habits. Inculcating a habit of investing with a regular investment of
a small sum is practically much easier than investing lumpsum amount every year. It is
recommended to start an SIP if you haven’t yet inculcated the discipline of investing.

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3)Ease of Investing
SIP can be implemented in two ways; online and offline SIP. Traditionally, you can
invest in SIP by filling up a mandate, however, in the current digital wave, you can invest in
SIP via invest online platforms. Invest online portal avails you a paperless transaction with
quicker transactions and hassle-free procedures. You can opt to link your portfolio to your bank
account, so that you can enable uninterrupted automatic investments. Usually, salaried
employees choose to map their SIP accounts to their salary accounts so that the process
continues to be regular and linear. This rectifies the issues of regularity failures. You need to
be a KYC complaint to start investing.
4)Power of compounding
The biggest force that drives investments ahead is the power of compounding.
Although, systematic investments are smaller, investors can benefit higher with the power of
compounding. Starting to invest early can build opportunities of higher returns. Simply, the
small amounts that you invest every month generate returns over the invested period and
similarly the returns upon the previous investment gets added to your new investments.

Mr. A Mr. B
• Age: 25 Years • Age: 25 Years
• Start: Today • Start: At age 40
• Invest: 5 Years • Invest: 20 Years
• Amount: Rs. 1 Lakh p.a. • Amount: Rs. 1 Lakh P.a.
• Redemption on Retirement • Redemption on Retirement
(Age 60) (Age 60)

5)Rupee cost averaging

Nobody can time the market, not even half of the times. However, SIP does not require you to
time the market. Rupee cost averaging is an automatic market timing mechanism. Since the
investments in SIP are made at regular intervals, more units are bought in declining market and
hence when the markets head upwards, the value of your investments grows in sync. As the SIP
thrives on volatility, the divergence in returns between SIP and lump sum widens.
Systematic Investment Plans (SIPs) are a popular investment tool in India, allowing investors
to regularly invest a fixed amount in mutual funds. Many mutual fund companies and financial
institutions offer mobile applications to facilitate SIP investments. These apps typically provide
features like:

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1)Easy SIP Setup:
Users can easily set up SIPs by choosing their preferred mutual fund schemes and specifying
the investment amount and frequency.
2)Fund Selection:
Investors can browse through various mutual fund schemes, analyse their performance, and
select the ones that align with their investment goals and risk appetite.
3)Transaction History:
The app allows users to track their SIP investments and view transaction history, including
details like investment amount, dates, and NAV (Net Asset Value).
4)Payment Options:
Users can link their bank accounts to the app for seamless payments towards SIP investments.
Some apps also offer the option to set up auto-debit instructions for recurring payments.
5)NAV Updates:
Real-time NAV updates enable investors to stay informed about the current value of their
investments.
6)Portfolio Monitoring:
Investors can monitor their mutual fund portfolio, track performance, and make informed
decisions about portfolio rebalancing or fund switches.
7)Goal Planning:
Some apps provide goal-based investing features, helping users set financial goals and
suggesting suitable investment strategies to achieve them through SIPs.
Popular mutual fund investment apps in India include those offered by major financial
institutions like HDFC, ICICI, SBI, and platforms like Groww, Paytm Money, and Zerodha
Coin. Each app may have its own unique features and user interface, so it's advisable to
explore and compare them based on your specific investment needs and preferences.
1.9 How does SIP work?
Before getting to how to start SIP investment, it is essential to understand the inner workings
of SIP. Under the SIP investment method, individuals choose a mutual fund scheme according
to their financial needs and regularly invest a fixed amount in these schemes. The periodicity
of these investments can be anything: daily, weekly, monthly, quarterly, semi-annually, or
annually.

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Let’s understand how SIP works with the help of an illustrative example:
• Assume your monthly salary is Rs60,000 p.m. and you set aside 10% for your monthly
SIP mutual fund investment.

Now, you first started investing Rs6,000 p.m. in XYZ fund in April 2010. Under this
investment, Rs6,000 will be automatically invested in XYZ fund each month. One of the major
advantages of SIP investments is the power of compounding it offers. The Rs6,000 that you
systematically invest in mutual funds online accumulates over the years to form a sizeable
corpus. Between April 2010 and April 2020, you would have made 120 investments of Rs6,000
each into the fund. Today, the total capital invested would be Rs7.2 lakh (120*Rs6,000).
If you hypothetically calculate the return on this at 12%, the investment would have grown to
Rs13.9 lakh, almost twice your original investment.
Even if you adjust this against an expected inflation rate of 6%, your wealth would grow to
Rs9.9 lakh in this period, i.e. approximately 50% appreciation of the principal invested.

How to invest in SIP (Systematic Investment Plan)?

If you are wondering how to start investing in SIP, follow these simple steps:
1. Know the investment objective and your risk appetite
You should first understand your risk tolerance before investing in mutual funds. After you
have assessed your risk appetite, it is vital to understand why you want to invest and define
your financial goals. It is essential to determine the objective of your investment to fetch an
ideal portfolio mix of debt and equity.
2. Choose the appropriate mutual fund
There are many types of mutual fund schemes available, the selection of your mutual fund
should be aligned with your financial goals, risk appetite, and investment horizon. While
picking the fund, you should also take its past performance into account. Once you have zeroed
in on the mutual fund company you wish to invest in, follow these steps:
a) Online Process
In case of a new investor create a new account or login with existing account credentials. Duly
fill the KYC (know your customer) details Make payment online
b) Offline/physical Process (In case you want to submit paper form)
Duly fill the application form and KYC (know your customer) form (currently paused)
If you plan to opt for the offline mode, fill-up a cancelled cheque along with ADF(auto debit
form). However, if you opt for the online method, fill up the ADF(auto debit form) and submit

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at the nearest branch to be provided to bank or opt for bill pay / e-mandate payment mode.
Provide requisite identity proofs like address proof, utility bills, etc.
3. Select the date of your SIP investment
You can choose a date as per your convenience. You can also opt for multiple dates for several
SIP investments in a month. Investing in SIP is one of the most appropriate ways to fulfil your
financial objectives. You can also consider using an SIP calculator to estimate the returns on
your mutual fund investments.
SIP (Systematic Investment Plan) is a method of investing a fixed sum regularly in mutual
funds. Many financial institutions and mutual fund companies offer SIP services. Some well-
known companies providing SIP services include:
• Vanguard
• Fidelity Investments
• Charles Schwab
• BlackRock
• T. Rowe Price
• Franklin Templeton Investments
• American Funds
• JP Morgan Asset Management
• AXA Investment Managers
• HDFC Mutual Fund (for India-specific SIPs)

These companies offer a variety of mutual fund options across different asset classes, risk
profiles, and investment objectives, allowing investors to choose the SIP that aligns best with
their financial goals.

Things To Consider While Investing In Lumpsum Funds

Investing a lump sum of money is a significant financial decision as you invest a large portion
of your savings in one go. Hence, evaluating your lumpsum investment based on multiple
factors is crucial to making informed decisions.
Here are the key factors to consider before investing a lump sum amount in a mutual fund
scheme:
Performance of the fund:
Before investing in any mutual fund scheme, it is important to consider the fund’s performance.
Here, you can check a fund’s past performance and compare it with the benchmark

30
performance. While past performance does not guarantee that future performance will also be
better, it can provide valuable insights about how the fund has performed during different
market conditions.
Expense Ratio:
It is the cost charged by the fund houses for managing the funds and covers other operational
expenses. Before investing in a mutual fund, you should check the expense ratio of the fund, as
a higher expense ratio can deteriorate your return in the long term.
Exit Load:
The fee charged by the fund houses when you redeem your mutual fund investment within a
specified time frame. Hence, you should consider this while making an investment decision, as
a small fraction of the exit load can affect your total return.
Market Predictions:
To invest via lumpsum mode, you must time the market, as investing at the correct timing can
help you yield more return. So, you should be aware of the market’s ups and downs.
Financial Goals:
You should also consider your investing goal and estimate whether the future proceeds will be
sufficient to achieve your goal. For example, if making an investment for a down payment on
a car, you should check whether the investment will help you achieve this goal.

1.10 Advantages of SIP

➢ SIP can be started with a minimum investment of Rs 500/- per month or RS 1000/- per
month.
➢ It is good and effective way of creating wealth for long term. - ECs facility is available
in case of investment through SIP.
➢ A small withdrawal from the account doesn’t affect the bank balance of an individual as
compared to a hefty withdrawal.
➢ It can be for a year, two years, three years etc. if a person at any point of time couldn’t
be able to continue its SIP. He may give instructions at least 25 days before to the fund
house. His SIP be discontinued.
➢ All type of funds except liquid funds, cash funds and other funds who invest in very short
fixed return investment offers the facility of SIP.
➢ Capital gains, if applicable, are taxed on a first-in-first-out basis.

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 ➢ As the investment made through SIP are not at one time. Some units bought at high price
and some at low price. So, chances of making gain through SIP is higher than the one-
time investment.

Disadvantages of SIP
1)No downside protection
Investors should remember that despite of all the advantages that SIPs have, they are subject to
market risks and do not protect investors from making a loss or ensure them profits in falling
markets.
2)Ideal profile of investors
Investors opting to invest through an SIP option should: have a long-term investment horizon,
be willing to invest regularly, keep patience; and who cannot invest enough amount at one go
before opting for SIPs.
3)Determining the investment surpluses
Investors should estimate the amount that they can afford to invest on a periodical basis.
Investors should be conservative while making this estimate as an over estimated periodical
investment amount may turn out to be a burden for investors.
4)Time frame for mutual fund SIP
Theoretically doing a mutual fund SIP for long term will work for investors. But for practical
reasons we need to commit a mutual fund SIP for short term. That is we need to break that long
term into many 6 months or 1 year periods and commit your mutual fund SIP for first 6 month
or 1 year. Them at the end of 6 month or 1 year renew your mutual fund SIP for another 6
month or 1 year. You need to renew like this till you complete your predetermined long-term
period.

1.11 Things to Consider While Starting SIP

Before you start your first SIP, there are a few things you should consider the following things:
Investment goals
It’s best not to begin investing by calling “growing wealth” your goal. Tie your investments to
important milestones of your life that may require a large amount of money — for instance, a
bigger home, your child’s college, or your retirement. This will help you keep tabs on your
objectives, and performance of how each of your investments is performing, and make it easier
to take corrective action when required.
Time horizon
Once you have a goal in mind, you know how many years you’d want to achieve it. If you have

32
a long time horizon, you could take on more risk than if you had a short time horizon. If you’re
closer to retirement and don’t want to take on many risks, you could stick to short-term mutual
fund investments.
Risk appetite
Another aspect to consider is how much risk you are willing to take. Assess the risk linked with
the mutual fund by examining the volatility of its returns. It’s important to verify that the fund’s
risk profile matches your personal risk tolerance. By considering your risk tolerance, you can
select SIP options that match your financial goals.
Mutual fund category
Selecting a mutual fund category requires careful consideration of your time horizon and risk
tolerance. For those with a long-term outlook and higher risk tolerance, categories like focused
funds or small-cap funds offer the potential for greater returns. Conversely, debt funds are
suitable if you lean towards lower risk or have a shorter time horizon. Hybrid funds might be
ideal for those seeking a balanced approach.
Profile of Mutual Funds and SIPs for Young Investors:
In recent years, there has been a surge in interest among young investors towards mutual funds
and SIPs as viable investment avenues. This study aims to delve into the investment behaviour
of youngsters in these financial instruments, exploring their motivations, decision-making
processes, and the effectiveness of SIPs in wealth accumulation over time.
Mutual Funds:
These are investment vehicles that pool money from multiple investors to invest in a diversified
portfolio of stocks, bonds, or other assets. For young investors, mutual funds offer a convenient
way to gain exposure to the financial markets with relatively lower capital requirements and
professional fund management.

Systematic Investment Plan (SIP):

SIP is a disciplined approach to investing in mutual funds, wherein investors contribute a fixed
amount at regular intervals (monthly or quarterly). SIPs help in rupee cost averaging and instil
financial discipline among young investors by promoting regular savings and long-term wealth
accumulation.
As young investors play an increasingly significant role in the financial markets, understanding
their behavior and preferences towards mutual funds and SIPs becomes crucial for financial
institutions and policymakers. By employing robust research methodologies, this study aims to

33
provide valuable insights that can inform investment strategies and promote financial inclusion
among the youth population.

1.12 Contribution towards mutual fund SIP changes:

How much you are contributing towards mutual fund SIP changes over a period of time.
- At the beginning of a career a person will be able to commit mutual fund SIP for small sum
of amount. As he progresses in his career. He or she will be able to increase his contribution
towards mutual fund SIP. - Similarly, when someone reaches a stage where he need to spend
more on kids higher education, daughters wedding, buying a house or meeting a major financial
commitment, it is difficult for him to continue the same amount of mutual fund SIP
contribution. - So whenever you renew your mutual fund SIP at the end of 6 month or 1 year,
you can look at your cash flow position and based on that you can renew the mutual fund SIP
for the increased amount or the same amount or the reduced amount.
Good reasons to invest in SIPs.
1)Small investment amount
With SIPs, most mutual fund schemes allow you to start investing with as little as Rs 500 per
month this investments amount is considerably lower than the most popular investment option.
2) Adjust the SIP amount the way you want
SIPs are highly flexible. For instance, if you start a Rs 1000 SIP in a mutual fund scheme of
your choice, there is no necessity to keep on investing only Rs 1000 If your savings increase in
the future, you have the option to increase the SIP amount or even start a new SIP in the same
mutual fund scheme or any other scheme of your choice.
3)Stop or skip the SIP
Moreover, there is no need to compulsorily make the SIP investment every month for any fixed
duration. You can skip the SIP for a few months or even stop the investment as and when you
like. So, in case of an emergency, if you do not have adequate funds to invest, you can skip SIP
payments for a few months.
4) Makes you disciplined investor
The next important reason why SIP is best is its ability to make you a disciplined investor.
Most investors start investing but fail when it comes to investing regularly. Regular investment
are necessary to get closer to your financial objectives. The very nature of SIPs is as such, that
it adds more discipline to your investment journey. An amount fixed by you automatically gets
invested in the scheme of your choice, eliminating the need for you to make the monthly
investments yourself.

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5) Timing the market- what is that
It is almost impossible to time the markets on a consistent basis accurately. But SIPs don’t
require you to time the markets in any way. You keep on investing a fixed amount month after
month irrespective of the market conditions. you will get more fund units if the market is down
and fewer units if the markets are high.
6) Reduces the average cost of mutual funds units
Continuing from the point above, SIPs also help in reducing the average cost at which you buy
the mutual fund units. The NAV of the fund is low when the markets are falling and high when
the markets outperform. So, in the long run, when you keep investing a fixed amount through
SIP, the average cost of purchasing the units tend to be on the lower side as compared to making
a lump sum investment when the markets are running high.
7) Power of compounding
If you select the growth option at the time of starting your SIP, the returns that your investment
generates would then be added again to your investment amount. This results in the
compounding effect, which could generate excellent returns in the long run. So, if you have
long-term financial goals, starting a SIP in any scheme of your choice and selecting the growth
option can prove rewarding.
8) No emotional investing
It can be challenging for an investor not to get swayed by the ups and downs of the market. The
volatility of the market often encourages people to make emotional investment decisions that
generally fail to deliver expected results. But the working of SIPs protecs the investors from
making such mistakes. All you need to do is to keep investing a fixed amount every month
without worrying about the short-term market volatility.
9) Complete transparency
The mutual fund industry has grown by leaps and bounds in India in the last few years. To
protect the interest of the investors, AMFI and SEBI have introduced several stringent measures
that every mutual fund scheme and AMC no needs to follow. This is made the mutual fund
industry transparent and safe for Investors who are just starting their investment journey
through SIPs.

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 CHAPTER 2
RESEARCH METHODOLOGY

36
2.1 Objectives

• This facilitates the development of a disciplined saving habit among Mumbai investors.
SIPs can be very helpful for people in Mumbai, where there is a thriving economy and
a growing population with a variety of financial goals.
• SIPs offer a disciplined approach to wealth creation that is well-aligned with long-term
financial goals, whether the aim is saving for retirement, paying for their children's
school, or buying a home.
• Promoting the concept of goal-based investing among youngsters, where they invest in
mutual funds through SIPs with specific financial objectives in mind, such as building
an emergency fund, saving for a vacation, or buying a car.
• Educating youngsters about the basics of investing, including the role of mutual funds
and SIPs, to enhance their financial literacy and empower them to make informed
investment decisions.
• This objective seeks to understand the behavior and perception of investors towards
mutual funds SIPs in Mumbai through surveys, interviews, or focus group discussions.
• Collect demographic information, including age, gender, occupation, and income level,
in order to categorize the responses and spot any trends based on these variables.
• By organizing Google Form according to these goals, I can obtain important information
about the influence and efficacy of SIP for mutual funds among Mumbai's youth.

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2.2 Scope
Using a Google Form to conduct a study on the effects of mutual funds and SIPs (Systematic
Investment Plans) among young people in Mumbai can provide important information on their
investment choices, behaviours, and financial literacy. The following are some possible study
scopes:

Awareness and Knowledge

Examine Mumbai's youth's awareness and knowledge of mutual funds and systematic
investment plans (SIPs), taking into account how well they grasp ideas like risk, returns, and
diversification.

Investment Behavior
Recognize how young people in Mumbai view mutual funds and systematic investment plans
(SIPs) in contrast to more conventional approaches like fixed deposits or savings accounts.

Perceived Benefits and Challenges

Examine how young people in Mumbai view the advantages and disadvantages of investing in
mutual funds and SIPs, taking into account factors including market volatility, possible returns,
convenience of use, and transparency.

Investment Patterns
Examine how young people in Mumbai are investing in mutual funds and systematic
investments plans (SIPs), taking into account factors like frequency of investing, quantity
invested, and preferred mutual fund categories and SIP duration.

Impact of Financial Goals

Analyse the degree to which mutual funds and SIPs help young people in Mumbai achieve their
financial objectives, including asset development, retirement planning, and goal-based
investments like travel or education.

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Behavioral Financial Aspects
Examine behavioral finance factors such as risk perception, loss aversion, herd mentality, and
emotional biases in relation to young people's investment decisions in Mumbai. examine the
differences in investment behaviors, awareness, and preferences among various demographic
variables, including age, gender, education, income, and occupation.

Future Outlook and Recommendations

Provide an analysis of the prospects for mutual funds and systematic investment plans (SIPs)
among Mumbai's youth and make recommendations for financial institutions, legislators, and
educators to improve investment literacy and promote wise investment choices.

By examining these areas, the study can provide thorough insights into how mutual funds and
SIPs affect young people in Mumbai, which can help with the creation of focused initiatives to
encourage ethical and knowledgeable investing behavior.

2.3 Significance

Researching the impact of mutual funds and SIPs (Systematic Investment Plans) among
youngsters in Mumbai holds significant importance for several reasons:

Economic Growth
Young people's financial actions have an impact on the economy as a whole. Researchers can
assess mutual funds and SIPs potential impact on capital market participation, investment-led
economic growth, and the development of India's financial environment by looking at how
young people in Mumbai use and adopt them.

Socioeconomic Impact
Studying the effects of SIPs and mutual funds on young people can also reveal socioeconomic
differences in financial market access, knowledge, and involvement. In order to close the gap
and encourage financial inclusion among marginalized youth sectors, inclusive policies and
activities can be better informed by an understanding of these discrepancies.

39
Long Term financial Planning
SIPs and mutual funds play a crucial role in long-term financial planning and goal attainment.
It can determine the degree to which young people in Mumbai are practicing responsible
financial planning and establishing realistic financial objectives for the future by examining
their usage habits.

Risk Management
SIPs and mutual funds offer instruments for risk control and diversification. Examining how
young people in Mumbai view and handle investment risks through various channels can
provide information on their attitude toward taking on risk, their level of risk tolerance, and
their early financial risk mitigation techniques.

Financial Literacy
The perceptions and usage of mutual funds and SIPs by young people in Mumbai can provide
insight into their financial literacy. This understanding can guide educational programs meant
to help young people become more financially literate and capable decision makers.

Investor Behavior
Examining how young people invest in mutual funds and systematic investments plans (SIPs)
might provide insight on their attitudes, inclinations, and patterns toward building long-term
wealth. Financial institutions and legislators can use this knowledge to help them create
investment products and regulatory frameworks that cater to the requirements and preferences
of the younger generation.
Wealth Accumulation
SIPs and mutual funds provide a methodical way to build wealth over time. Examining their
influence on children can evaluate how well they work to encourage a savings culture and help
the younger generation build money, both of which are essential for their future financial
security.
It is important to look into how mutual funds and SIPs affect young people in Mumbai in order
to improve their financial literacy, comprehend how people invest, build wealth, propel
economic growth, manage their financial risks, encourage socioeconomic inclusion, and
motivate long-term financial planning.

40
2.4 Limitations:
When it comes to comprehending, relying on, and efficiently using mutual funds and SIPs
(Systematic Investment Plans), children in Mumbai may face many obstacles.
Lack of Awareness
Some few youngsters in Mumbai may not be aware of the concept of mutual funds or SIPs.
They might not understand how these investment vehicles work or the potential benefits they
offer for long-term wealth accumulation. leading to a lack of interest in participating in the
survey.
Privacy Concerns:
Some individuals might be hesitant to provide personal financial information, such as
investment preferences or income levels, due to privacy concerns, especially on an online
platform like Google Forms. Some people may not trust the source of the survey or feel
uncertain about the intentions behind collecting the data.
Time Constraints:
May have hectic schedules that interfere with their ability to participate in surveys or research
projects due to employment, school, and social obligation. without any incentives or rewards
for participating in the survey, individuals may not see the value in taking the time to fill it out.
Complexity of the Topic:
Mutual funds and SIPs can be complex financial instruments, and some respondents might find
the survey questions too technical or difficult to understand. Some individuals may doubt the
usefulness or impact of the survey, leading them to ignore or avoid filling it out altogether.

2.5 Selection of the Sample

Because convenience sampling is accessible and affordable, it is used to find participants for
this research. A varied collection of young people from Mumbai location is the target audience
for participant recruitment, which is done through a variety of internet and social media
channels. Convenience sampling makes data gathering quick and simple, but it also opens the
door to biases like lack of representativeness and self-selection bias. An attempt is made to
guarantee a large and varied sample of participants in order to lessen these biases.

41
2.6 Data Collection

a) Primary Data

Develop a set of questions to gather insights from youngsters in Mumbai about their
knowledge, attitudes, and behaviors regarding mutual funds and SIPs. Decide on target
sample size and demographics (age range, education level, income level, etc.) Use various
methods to distribute the survey, such as social media, Google Form Gather responses either
through online platforms like Google Forms. Once I collected responses, analyze the data
to identify trends, preferences, and attitudes of youngsters towards mutual funds and SIPs.

b) Secondary Data

Conduct a thorough review of existing research, articles, reports, and statistics related to mutual
funds, SIPs, and their impact on youngsters. gather information from reputable sources such as
academic journals, financial publications, government reports, and industry studies. Analyze
the secondary data to complement and support the findings from the primary data collection.
Create a Google Form with relevant questions addressing your research objectives. Ensure the
form is user-friendly and easily accessible to your target audience. Include a mix of multiple-
choice questions, rating scales, and open-ended questions to gather diverse insights. Ensure that
respondents privacy and anonymity are protected. Obtain informed consent from participants
before collecting any data.
Once I have collected both primary and secondary data, analyse the findings to draw
conclusions. Prepare a comprehensive report summarizing research methodology, key findings,
and implications for the impact of mutual funds and SIPs among youngsters in Mumbai.

By following these steps, can effectively gather and analyse data to explore the impacts of
mutual funds and SIPs among youngsters in Mumbai.
2.7 Sample Size
The study sample of 100 respondents is the selected from who are involved with mutual fund
under SIP in Mumbai. A study was conducted based on the primary data were collected through
questionnaire. The Age of the Respondents is 18 to 30 years. The data Collected area is
Youngsters in Mumbai.

42
2.8 Tabulation of Data
Creating a tabulation of data requires some specific information. Here's a simple tabulation
template to get you started:

Age Group No. of Youngsters Impact of Mutual Funds &

SIP
18-21 87% Positive
22-25 6% Positive
26-30 7% Neutral

To understand and assess the impact of mutual funds and SIPs (Systematic Investment Plans)
among young investors in Mumbai, you can utilize various

2.9 Techniques and Tools

Surveys and Questionnaires:

Design surveys or questionnaires to gather quantitative data about young investors' awareness,
understanding, and usage of mutual funds and SIPs. This can help gauge their level of
knowledge and the impact these investment tools have had on their financial habits.

Data Analysis:
Analyze market data and trends related to mutual fund investments and SIPs among young
investors in Mumbai. This can include analyzing investment patterns, fund performance,
demographic factors, and investor behavior.

Online Surveys and Polls:

Utilize online survey tools and platforms to reach a wider audience of young investors beyond
Mumbai. This can provide insights into the broader impact of mutual funds and SIPs among
the younger demographic.
By employing these techniques and tools, you can gain comprehensive insights into the impact
of mutual funds and SIPs among young investors in Mumbai, helping to inform strategies for
financial education and outreach.

43
 CHAPTER: 3
LITERATURE REVIEW

44
Any research on a specific subject builds upon earlier research on the same subject. Reviewing
and analyzing prior research on the topic in the current context is the aim of the literature
review, which aims to build a useful understanding.

Arnold L. Redman (2000)

Looked at five international mutual fund portfolios' worth of performance for both global and
international mutual funds. For the study, two benchmarks were used: domestic mutual funds
(a portfolio of funds that invest only in U.S. stocks) and the Vanguard Index 500 mutual fund.
Using Treynor's index, Jensen's Alpha, and Sharpe's index, the risk-adjusted returns were
computed. The world, foreign, European, Pacific, and international portfolios were the five
categories.

Gauri Prabhu (2000)

Identified the elements influencing investors' perceptions of investing in funds for monthly
income plans. He investigated the significance of several variables influencing Pune mutual
fund holders' investing decisions. The variables are reputation of the company, increased return,
and liquidity. A pre-tested questionnaire was used to survey a sample of 150 investors. He came
to the conclusion that the majority of investors were aware of the many mutual fund investment
alternatives. Additionally, he came to the conclusion that the majority of investors are aware of
SIP funds and that they invest in them because of the consistent returns they provide.

Bijan Roy (2001)

Conducted an empirical study on conditional performance of Indian mutual funds. This paper
uses a technique called conditional performance evaluation on a sample of eighty-nine Indian
mutual fund schemes. This paper measures the performance of various mutual funds with both
unconditional and conditional form of CAPM, Treynor- Mazuy model and Henriksson-Merton
model. The effect of incorporating lagged information variables into the evaluation of mutual
fund managers’ performance is examined in the Indian context. The results suggest that the use
of conditioning aged information variables improves the performance of mutual fund schemes,
causing alphas to shift towards right and reducing the number of negative timing coefficients.

45
Kshama Fernandes (2003)
Evaluated index fund implementation in India. In this paper, tracking error of index funds in
India is measured. The consistency and level of tracking errors obtained by some well-run index
fund suggests that it is possible to attain low levels of tracking error under Indian conditions.
At the same time, there do seem to be periods where certain index funds appear to depart from
the discipline of indexation.

S. Narayan Rao (2004)

Evaluated performance of Indian mutual funds in a bear market through relative performance
index, risk-return analysis, Treynor’s ratio, Sharpe’s ratio, Sharpe’s measure Jensen’s measure,
and Fama’s measure. The study used 269 open-ended schemes (out of total schemes of 433) for
computing relative performance index. Then after excluding funds whose returns are less than
risk-free returns, 58 schemes are finally used for further analysis. There results of performance
measures suggest that most of mutual fund schemes in the sample of 58were able to satisfy
investor’s expectations by giving excess returns over expected returns based on both premium
for systematic risk and total risk.

Mehru (2004)
In his analysis, Mehru (2004) looked into a number of problems, including financial backers'
lack of mindfulness, subpar deal administration, shared assets' non-revelation of the portfolio,
asset conspirators' transfer of assets, and the lack of professional asset managers. The author
suggested that shared asset conspiracies could become more well-known and appealing to
financial supporters in India with greater notable transparency, increased developments,
improved financial backer administration, liquidity, and higher yields.

Saputra (2009)
Studied about different performances of sharia and conventional mutual funds, in equity, fixed
income and balanced fund. From the 12 companies analysed, sharia mutual funds have better
performance than the conventional one.

Debalina Roy and Koushik Ghosh (JAN 2011)

“The Scenario of Investment in Systematic Investment Plan (SIP) among the Retail Customers”
Global journal of finance and economic management. In the present work they have studied
how the investment in mutual funds through Systematic Investment Plan (SIP) can gain

46
momentum and increase percentage of income. Investigations are also performed to find out
what percentage of bank customers invest in mutual funds especially through SIP with specific
reference to HDFC Bank, Shyambazar Branch, and Kolkata, India. Sample study also suggests
that young investors are tending towards mutual fund investments and preferring SIPs more
than the aged investors.

Binod Kumar (2012)

The research paper "A study on Investors attitude towards mutual funds as on investment
option" examines the operation, structure, and comparison of bank and mutual fund
investments, as well as the computation of net asset value. etc., and research has been done on
how different demographic characteristics affect investor perceptions of mutual funds. The

percentage, chi-square test, and rank method were used to analyse the data. According to the
study, the majority of participants were still unsure about mutual funds and had no opinion
about them as an investment option. It has been shown that the majority of respondents were
ignorant of the many purposes of mutual funds. Investors attitudes on mutual funds have not
been influenced by demographic criteria such as age or occupation.

Y Prabhavathi and N T Krishna Kishore (2013)

“Investor’s preferences towards Mutual Fund and Future Investments: A Case study of India”,
international journal of scientific and research publications. The advent of Mutual Funds
changed the way the world invested their money. The start of Mutual Funds gave an opportunity
to the common man to hope of high returns from their investments when compared to other
traditional sources of investment. The main focus of the study is to understand the attitude,
awareness and preferences of mutual fund investors.

Bhaskar Biswas (2013)

The performance of diversified equity fund schemes in the Indian mutual fund industry was
examined by Bhaskar Biswas (2013). For a three-year period (2009–2012), he had invested in
ten diversified stock mutual funds with the best and ten with the poorest performance. Statistical
and mathematical methods, such as the Sharpe ratio, beta, alpha, percentage, standard deviation,
and mathematical mean, were used in the analysis. In his opinion, diversified equity funds

47
attempted to invest solely in stocks, without concentrating on a single or small number of
industries.

Gauri Prabhu& Dr. N.M. Vechalekar (2014)

They come up to a conclusion that Mutual Funds provide a platform for a common investor to
participate in the Indian capital market with professional fund management irrespective of the
amount invested in the portfolio. The Indian mutual fund industry is growing rapidly and this
is reflected in the increase in Assets under management of various fund houses. Mutual fund
investment is less risky than directly investing in stocks and is therefore a safer option for risk
averse investors. This paper makes an attempt to identify various factors affecting perception
of investors regarding investment in Mutual fund.

Rajesh Chakrabarti, Sarat Malik Sudhakar Khairnar Aadhaar Verma SEBI report
(2014)
They encoded that lack of penetration in mutual funds in India can be due to several major
reasons: (a) Low demand of mutual funds from the public outside the major (T-15) cities. This
low demand has been be caused by low levels of financial literacy, cultural attitudes towards
savings and investments etc. (b) Low supply of mutual funds from AMCs outside the major
cities. The low supply could be due to perceived lack demand from the general retail investor
or due to lack of available manpower in these areas. (c) The study first documents how Assets
under Management (AUM) are unevenly distributed across the country and then proceeded to
scrutinize the reasons behind this uneven penetration. (d) A survey of fund houses was carried
out to gain a better understanding of the causes holding them back from expanding beyond T-
15 cities.

Rekha Sharma (2015)

The study has been conducted by taking a sample of 200 mutual fund investors belonging to
Faridabad city and Mumbai city. Hundred respondents are from each city. The study concludes
that the main motive behind investment in mutual funds is good return, safety and tax benefit.
The research also suggested that the growth schemes and balanced schemes are most preferred
in comparison to other open ended and close ended schemes.

48
Dr. JK Raju (2015)
A review of the mutual fund industry and investors' perceptions of risk and return were
investigated by Dr. JK Raju et al. (2015). Mutual fund schemes geared toward growth that had

been in operation for the previous ten years and had seen all of the market's ups and downs
were selected for examination. According to the study's findings, mutual funds have a higher
rate of return than other investing options, making them a superior option for investors looking
to balance risk and return.

Poonam Gautam (2016)

The research presents the characteristics of the mutual fund industry in India as well as its
growth prospects in the article "The Development of Mutual Fund Industry in India." It also
offers some recommendations for safe investment and appropriate return. According to the
report, the mutual fund business in India is predicted to develop rapidly over the next several
years. The mutual fund sector in India needs to focus on steady growth and long-term profit
rather than rapid expansion as mutual funds are still not regarded as the best investments by
investor groups.

Seema Sharma (2016)

Investigated the value of mutual funds for novice investors as well as strategies for mutual fund
businesses to gain a sizable market share. They came to the conclusion that mutual funds may
grow significantly. Mutual fund penetration can be raised through investor education, offering
value-added services with an investor focus, and creative distribution methods. Increasing
internet usage and creating alternative channels, like financial advisors, can also be very
important in gaining market share.

Rishab Telukunta (2017)

The concept of mutual funds and the many fund kinds are illustrated in the research article
"Mutual Funds and Systematic Investment plans with their best performing funds." According
to the report, there is discussion of a number of mutual funds that are doing well in India. The
Indian mutual fund business has undergone significant transformation, which calls for
assessment. By taking historical data and fusing it with contemporary patterns, it is possible to
draw the conclusion that mutual funds in India have a bright future ahead of them for their

49
investors. The mutual fund business has performed admirably in the past and continues to do
so.

Joshi and Agarwal (2018)

Assert that this strategy ensures that investors purchase a greater number of units during times
of low price and a lesser number during times of high price. SIPs offer a less risky entry point
for investors, making mutual funds more accessible to those who are concerned about market
volatility.

Baliyan (2022)
Presentations from Indian endowment funds were evaluated by Baliyan et al. (2022). A brief
survey was conducted regarding HDFC Mutual Fund, Reliance Mutual Fund, ICICI Prudential
Fund, Birla Sun Life Fund, UTI Fund, and SBI Fund. Similar in concept, obligation funds are
sometimes known as value-based funds.

50
 CHAPTER: 4
DATA ANALYSIS, INTERPRETATION
AND PRESENTATION

51
No. of Responses:- 100

Following are the Questions for Google form

• Gmail
• Name

• Gender

Figure no. 01

The Highest Response is from Females and it is 62% and 38% Respondent are Males.

52
 • Age

Figure no. 02

The 87% respondent Age is between 18-21 years, Only 6% respondent age is between 22-25
and the 7% respondent age is 26-30 years.

• Education

Education No. of Responses

HSC 6

Undergraduate 66

Graduate 10

BE 5

MBA 3

Post Graduate 10

53
 • Have you heard about Mutual funds & SIP?

Figure no. 03

The 96% respondent are known about the Mutual funds and SIP

• Where do you usually get Information about Mutual funds & SIP?

Figure no. 04

There are 51% respondent get Information from Social Media. There are 35% respondent get
Information from his/her Family and Friends and only 7% Information from Financial advisors
and 7% Information from News Articles.

54
 • What is your Primary goal for Considering Mutual funds & SIP?

Figure no. 05

There are 54% respondent Primary goal is to Create Wealth. There are 19% respondent goal
is Retirement Planning. 14% respondent for Emergency fund and 12% Youngsters for
Education fund.

55
 • How would you rate your knowledge about Mutual funds & SIP?

Figure no. 06

There are 46% respondent very Knowledgeable about Mutual funds and SIP. 29% respondent
somewhat knowledgeable about mutual funds and SIP. Thare are 19% are not that much
knowledgeable and only 6% respondent not have knowledge about mutual funds and SIP.

56
 • How would you describe your risk tolerance when it comes to Investments?

o High Risk
o Low Risk
o No Risk

Figure no. 07

67% respondent thought there is Low risk for Investing Mutual funds & SIP. 24% respondent
thought there is High risk in Investment and only 9% respondent there is No risk for Investment.

57
 • When did you start Investing in the Mutual funds & SIP ?

Figure no. 08

There are 41% respondent Currently Investing In Mutual funds & Sip. 53% respondent Never
Invested in Mutual funds & SIP and 6% respondent are Invested but stopped Investing in
current time.

58
 • How do you think Mutual funds can Impact your Financial goals?

Figure no. 09

There are 66% respondent think Mutual funds can Positively impact financial goals and there
are 34% respondent think Mutual funds Neutral impact in financial goals.

59
 • What is your attitude towards SIP as an Investment strategy?

Figure no. 10

There are among 68% respondent have Positive attitude towards Investment strategy. There are
29% respondent have Neutral attitude towards Investment strategy and 3% respondent have
Negative attitude towards Investment strategy.

60
 • What factors are most Important for you when choosing a Mutual funds or SIP?

Figure no. 11

There are 66% are respondent choosing Past Performance for Investing in Mutual funds &
SIP. 31% respondent are choosing Expense Ratio for Investing in Mutual funds & SIP. There
are 71% respondent are choosing Investment Duration for Investing in Mutual funds & SIP
and there are 25% respondent are choosing Fund manager reputation for investing in Mutual
funds & SIP.

61
 • Do u believe that Investing in Mutual funds & SIP is more Suitable for long term
Financial goals?

Figure no. 12

There are 92% respondent believe that Investing in Mutual funds & Sip is more suitable for
Long term financial goal and 8% respondent not believe that Investing in Mutual funds & Sip
is more suitable for Long term financial goal.

62
 • How much have you approximately Invested in Mutual & SIP?

Figure no. 13

There are total 62% respondent Invested in Mutual funds & Sip and 38% respondent Not
invested ion Mutual funds & SIP.

63
 CHAPTER: 5
CONCLUSIONS AND SUGGESTIONS

64
 Findings

➢ Understanding the impact of mutual funds and SIP (Systematic Investment Plan) among
youngsters in Mumbai requires exploring various factors such as investment behavior,
financial literacy, market trends etc.

➢ There has been a noticeable increase in the interest of youngsters in Mumbai towards
mutual funds and SIPs. This is attributed to the ease of investment and increased
awareness through digital platforms and financial education initiatives.

➢ SIPs have gained popularity among youngsters due to their disciplined approach to
investing and ability to invest small amounts regularly. This strategy appeals to those
with limited disposable income but a desire to build long-term wealth.

➢ Young investors in Mumbai are using mutual funds and SIPs to achieve various financial
goals such as wealth creation, retirement planning, purchasing a home, or funding
higher education. The flexibility offered by mutual funds allows them to align
investments with their specific objectives.

➢ Mumbai's youngsters are tech-savvy and prefer online platforms for investing in mutual
funds. They rely on mobile apps and online portals for research, comparison, and
investment transactions. This digital adoption has facilitated easy access to investment
opportunities and information.

These findings suggest a positive impact of mutual funds and SIPs among youngsters in
Mumbai, driven by increased awareness, technological advancements, and a growing culture
of financial prudence and goal-oriented investing. However, individual experiences and
preferences may vary based on personal financial circumstances and risk profiles.

65
 Conclusion

Majority Female people are Invest in mutual fund. Majority Undergraduate (Third Year)
students are Invest in mutual fund & SIP. Many people have a regular invest in mutual fund.
Most People have a knowledge of a mutual fund by sources of a social media & News Articles.
Mutual funds & SIP Suitable for Long term financial goals. Less people are Invest in interval
scheme and major people are invest in income scheme. Major people are invested the Mutual
funds & SIP. In study of this project each factors are different score, different dimension and
different meanings. Investing is Convenient option for the Investor. Young investors in
Mumbai are adopting a long-term investment approach through SIPs, understanding the power
of compounding and the important of consistent investing over time. mutual funds and SIPs
are increasingly becoming integral parts of the investment portfolios of youngsters in Mumbai.
This trend underscores a growing financial maturity and a proactive approach towards building
wealth and securing future financial well-being. Mutual funds and SIPs have seen a significant
increase in participation among youngsters in Mumbai. This demographic is increasingly
recognizing the benefit of these investment avenues for wealth creation and achieving financial
goals. Mutual funds and SIPs have had a significant positive impact on investors by providing
them with convenient, accessible, and professionally managed investment options. However,
investors should always conduct thorough research and consider their investment goals, risk
tolerance, and time horizon before investing in any mutual fund or SIP.

66
 Suggestions

Based on our findings, we propose the following suggestions to further enhance the adoption
and effectiveness of mutual funds and SIPs among youngsters in Mumbai:

• Simplified Investment Platforms is to make investing in mutual funds and SIPs easier,
fintech businesses and financial institutions should provide mobile applications and
user-friendly platforms. These platforms can draw in more young investors and facilitate
their first investment by utilizing technology and providing user-friendly interfaces.
• Here are some suggestions for impact mutual funds and SIPs that align with the values
and goals of many young investors:

1. Axis ESG Equity Fund:

2. SBI Magnum Equity ESG Fund:
3. Mirae Asset Emerging Bluechip Fund:
4. ICICI Prudential Bluechip Fund:
5. HDFC Mid-Cap Opportunities Fund:

• Wealth managers and financial advisors must to customize their offerings to meet the
unique requirements and tastes of millennial investors. Advisors can help young people
match their investment strategies with their financial goals and risk tolerance by
providing individualized investment solutions and guidance. This helps build young
people's confidence and trust in mutual funds and SIPs.

67
CHAPTER: 6
APPENDIX

68
• Have you heard about Mutual funds & SIP ?
1. Yes
2. No

• Where do you usually get Information about Mutual funds & SIP ?
1. Social Media
2. Family & Friends
3. Financial Advisors
4. News Articles
5. Other______

• What is your Primary goal for Considering Mutual funds & SIP ?
1. Wealth Creation
2. Retirement Planning
3. Emergency Fund
4. Education Fund
5. Other______

• How would you rate your knowledge about Mutual funds & SIP ?
1. Somewhat Knowledge
2. Very Knowledgeable
3. Not Knowledgeable at all
4. Neutral

• How would you describe your risk tolerance when it comes to Investments?
1. High Risk
2. Low Risk
3. No Risk

• When did you start Investing in the Mutual funds & SIP ?
1. Yes, Currently Investing
2. No, Never Invested
3. Yes, But Stopped

69
• How do you think Mutual funds can Impact your Financial goals?
1. Positively
2. Neutral
3. Negatively

• What is your attitude towards SIP as an Investment strategy?

1. Positive
2. Neutral
3. Negative

• What factors are most Important for you when choosing a Mutual funds or SIP?
1. Past Performance
2. Expense Ratio
3. Investment Duration
4. Fund Manager Reputation
5. Other_____

• Do u believe that Investing in Mutual funds & SIP is more Suitable for long term
Financial goals?
1. Yes
2. No

• How much have you approximately Invested in Mutual & SIP?

1. Not Invested
2. Less than 1000
3. 1000 to 5000
4. 5000 to 10000
5. Above 10000
6. Up to 1000

70
 CHAPTER: 7
BIBLIOGRAPHY

71
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