Factors Affecting Choice of SIP vs RD Schemes

KARVY STOCK BROKINGLTD
GEN Societys
GLOBAL BUSINESS SCHOOL, HUBLI
(Approved by AICTE & Affiliated to Karnataka University)
Project Report On
A STUDY ON FACTORS AFFECTING CHOICE OF INVESTORS WITH RESPECT TO
SELLECTION OF SYSTEMATIC INVESTMENT PLAN V/S RECURRING DEPOSIT SCHEMES IN
BIJAPUR CITY
IN
KARVY STOCK BROKING LIMITED, BIJAPUR
A Report Submitted In Partial Fulfillment of the Award For the Degree

MASTER DEGREE IN BUSINESS ADMINISTRATION
2014-2015
Submitted By:
Mr. GURAPPA S ATHANI
REG. NO MBA14007022
MBA IISEM
INSTITUTE GUIDE:
COMPANY GUIDE:
PROF. MAHESH BENDIGERI
Mr. SAYED MEHBOOB QUDARI
Faculty OF GBS
(FINANCE)
(BRANCH MANAGER) OF
KARVY STOCK BROKING LTD,BIJAPUR
Submitted in partial fulfillment of the requirement for

MBA Degree Course of KARNATAK UNIVERSITY, DHARWAD
GLOBAL BUSINESS SCHOOL HUBLI -25 Page 1
GLOBAL BUSINESS SCHOOL,

HUBLI
Affiliated to Karnatak University Dharwad, Approved by
AICTE New Delhi
CERTIFICATE
This is to certify that the Summer Inplant Project 2015
entitled
A STUDY ON FACTORS AFFECTING CHOICE OF INVESTORS WITH
RESPECT TO SELLECTION OF SYSTEMATIC INVESTMENT PLAN V/S RECURRING

DEPOSIT SCHEMES IN BIJAPUR CITY
is the bonafide record of
research work done by Mr.GURAPPA.S.ATHANI US No:

MBA14007022 under my supervision, submitted to Karnatak
University, Dharwad for the partial fulfillment for the award of
the Degree of Master of Business Administration and that
the project has not previously formed the basis for the award of
any degree, diploma, Associateship, Fellowship or title.
Place: Hubli
Prof. Mahesh Bendigeri

Date:
Institution Guide
Declaration
I,Mr.GURAPPA S ATHANI hereby declare that the Project entitled A STUDY

ON FACTORS AFFECTING CHOICE OF INVESTORS WITH RESPECT TO
SELLECTION OF SYSTEMATIC INVESTMENT PLAN V/S RECURRING
DEPOSIT SCHEMES IN BIJAPUR CITY (KARVY STOCK BROKING LTD)
submitted by me in partial fulfillment of the requirement for the award of the

degree Master of Business Administration by Karnatak University,
Dharwad, is my original work and is not submitted elsewhere for the award of
any other degree or diploma.
Date:
Place: Hubli
Gurappa S Athani
M.B.A IISem
ACKNOWLEDGEMENT
No work is said to be completed without thanking the people who have helped
me in making this project successful. So this acknowledgement is for those who
have played their role in completion of this project. The project would not have
been completed without the kind co-operation, assistance & guidance of these
individuals.
At outset I would like to acknowledge my sincere gratitude & thanks to our
company guide Mr. Sayed M Qudari for grating me the permission to work in
their estimated organization & for his constant support & guidance, which was
an inspiring factor towards successful completion of my project.
I express my immense gratitude towards Dr. Uday lowate (Director), GBS for
being more supportive in the accomplishment of my project.
I express my heartfelt gratitude towards my internal guide Prof. Mahesh
Bendigeri for his continuous support, guidance, assistance through the project.
Without whom the project would never have been completed successfully. My
sincere gratitude to our placement.
Finally I thank my most beloved parents & brother who have been always a
moral support for boosting confidence.
TABLE OF CONTENTS
SL
NO
Contents
PAGE NO
Executive summary
1-3
Design of the study
4-5
Research Methodology
6-6
Findings & Suggestions
7-8
Company profile
9-11
Data Analysis &

Interpretation
12-31
Conclusions
32-32
Bibliography and
Annexure
33-34
EXECUTIVE SUMMARY:
This study was under taken at Karvy Stock Exchange Ltd. At Bijapur city. A
study on factors affecting choice of investors with respect to selection of
Systematic Investment Plan V/S Recurring Deposit Schemes in Bijapur city.
In order to undertake this study, statistical tools such as Bar chart, Tabular
data analysis, etc.., Secondary data provided by the firm and direct interaction
with the investors have been used. In this study majority of respondents
preference Fixed Deposit and Insurance, majority of respondents neglecting
Mutual Fund and PPF.
Primary data was collected through a set of structured Questionnaires, which
have been asked to the respondents. Various suggestions have been provided for
increasing the awareness and investment pattern. The firm should communicate
to the investors about the opportunities and benefits of investing in SIP in Mutual
Fund.
INTRODUCTION:
The project title is A STUDY ON FACTORS AFFECTING CHOICE OF
INVESTORS WITH RESPECT TO SELLECTION OF SYSTEMATIC
INVESTMENT PLAN V/S RECURRING DEPOSIT SCHEMES IN BIJAPUR
CITY at Karvy Stock Broking, Bijapur.
Financial market comprises variety of instruments hence its functioning
totally depends on instruments held. Karvy Stock Broking belies that the key to
build wealth lies in allocating assets across various markets, financial
instruments and industry sectors. To help investors to maximize returns and
maximize risks.
Karvy Stock Broking is a leading full services securities firm providing the
entire gamut of financial services. The firm was established in 1982 at
Hyderabad. The company wants to know where people to invest their earnings
and selection of systematic Investment Plan V/S Recurring Deposit Schemes.
This study will help the company to understand individual investment behavior
and the parameters they look in while investing in SIP & RD Schemes.
INTRODUCTION OF SYSTEMATIC INVESTMENT PLAN:

SIP is an investment concept offered by Mutual Funds to invest regularly.
SIP also offers the flexibility of choosing the investment amount, date and period
as per ones requirement.
SIP being a regular/ Periodic investment works on the Compounding and
Rupee cost Averaging which renders it the ability to deliver higher returns in a
Long term. This can be used as an apt and important retirement planning
instrument.
It is been discussed many times and we believe most understand how SIP
(Systematic Investment Plan) works. However, the concept and relevance of SIP
still makes it a good read. SIP is an excellent investment tool to plan money for
certain goals or as retirement planning without being too heavy on the pockets of
the investor.
The concept of SIP revolves around two very basic but effective principles:
1. Rupee Cost Averaging: Since the investment is staggered and spread across
the entire investment tenure at regular intervals, the cost of purchase of mutual
fund units is averaged. In the entire investment horizon, the markets may go up
down several times, and investor buys at all levels thus the net investment cost is
average of all the purchases.
2. Power of Compounding: The power of compounding is unleashed (visible) in
case of long term investment and thus it is important for one to start early. The
sooner one starts, the higher the amount one can get.
DESIGN OF THE STUDY

Title of the project:
A STUDY ON FACTORS AFFECTING CHOICE OF INVESTORS WITH
RESPECT TO SELLECTION OF SYSTEMATIC INVESTMENT PLAN V/S
RECURRING DEPOSIT SCHEMES IN BIJAPUR CITY.
Management Problem:
Company wants to know the profile of investors in Systematic Investment
Plan and Recurring Deposit Schemes. It wants to know where people prefer to
invest their savings and what they expect from their investment in SIP & RD
Schemes.
Research Problem:
To find out investment behavior of Systematic Investment Plan & Recurring
Deposit Schemes & to understand why people prefer to invest in SIP or RD by
understanding the working of Systematic Investment Plan & Recurring Deposit
Schemes.
Objective
1) To know the factors affecting choice of investment schemes.
2) To know the level of awareness with respective to SIP and RD schemes.
3) To know the extent to understanding on different features of SIP MF plan and
RD plan.
4) To know the reason for investing in SIP and Recurring Deposit schemes.
5) To know the preferred choices of investment.
6) To know the percentage of saving on monthly basis.
Scope of the study:

1) The study will help the company to understand the behavior of individual while
investing in Systematic Investment Plan & Recurring Deposit Schemes.
2) The study will help the company to know the expectation of individual from
their investment in Systematic Investment Plan & Recurring Deposit Schemes.
3) The study will help the company to make strategies to improve their services to
meet their investors expectations.
4) The scope of the study is restricted only to Bijapur city.
LIMITATIONS OF THE STUDY:

1) Time is only limited.
2) It is not an exact science, so we cannot expect 100% results, so only justified
solutions are given.
RESEARCH METHODOLOGY
Data Sources:
Primary data: Primary data was collected by questionnaire. It is systematic

collection of information directly from the respondents. The basic purpose of
collecting primary data is to know the investment preferences while investing.
Secondary data: Secondary datas are collected from Karvy Stock Broking
Website, Karvy Stock Broking news papers.
Sampling:
Sampling size
: 97convenient samples.
Area of research
: Bijapur city.
Research approach
: Survey method.
Research Instrument: Questionnaire.

Time
: 22th of May to 22th June 2015.
FINDINGS
1) 60% of the respondents were between the ages of 25-35years.
2) 58% of the respondents were working, 37% of the respondents were self
employed and 4% of the respondents were retired.
3) 48% of the respondents were Unmarried, 47% of the respondents were married,
2% of the respondents were Divorce and 1% of the respondents were
Windowed.
4) 78% of the respondents were Male and only 22% of the respondents were
Female.
5) 61% of the respondents were between the annual income of Rs 200000-300000
and 36% of the respondents were between the annual incomes of Rs 300000500000.
6) 48% of respondents monthly saving ranges from 10-20%.
7) 30% of respondents prefer to invest in Fixed Deposit.
8) 52% of respondents consider safety as top most important factor for investing in
given investment option.
9) 56% of respondents are partially aware of SIP Mutual fund Schemes and 21%
of respondents are not aware of SIP Mutual fund Schemes.
10) 48% of the respondents are aware of RD schemes in Banks/Post office.
11) 69% of respondents choose to invest in RD Scheme in Bank/Post office and
only 31% of them selected Systematic Investment Plan in Mutual Fund for
investment.
12) 52% of respondents feel that there is difference among two investments
suggested and 48% feel there is no difference between the schemes.
13) 17% of respondent agree that investment in SIP is risky and 15% of people feel
that compare to Recurring Deposit SIP gives higher rate of return.
14) 15% of respondents agree that investment is RD scheme is safe, rate of return is
fixed, and minimum amount to open account is Rs. 100 and payment can be
made through cash, cheque or auto debit.
15) 60% of the respondents have invested in RD for a period of 3years.
16) 40% of them said the reason for investment in SIP is to achieve short term
financial goal and 23% said to take advantage of income tax benefit.
17) 44% of respondent said the reason for investment in RD is to achieve short term
financial goal and 31% to pay annual insurance premium.
SUGGESTION
1) Since there is no strong relation between all the factors & overall
satisfaction. Company has to provide service regarding giving advice &
conducting seminar on SIP & RD Schemes for the investors who want to
in SIP & RD.
2) As there is no relation between age, annual income & investment
preference Company can introduce new schemes for all the age groups &
to different income people.
3) There is relation between occupation and savings of respondents
company has to introduce new schemes for all class of people.
4) As there is relation between expected rate of return & period of
investment the company has to introduce more schemes with limited
period & good rate of return.
5) There is relation between annual income and period of investment, so
company should target the income group between 5laks to 10laks.
6) Investors are expecting good service from the brokerage company, so
company has to suggest and advice them in making investment decision.
COMPANY PROFILE
Organization Profile:
The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks
among the top player in almost all the field it operates. Karvy computers shares
LTD is Indias largest Register and Transfer Agent with a client base of nearly
500 blue chips corporate managing over 2 core accounts. Karvy Stock Broking
Ltd, member of National Stock Exchange of India. With over 6,00,000 active
accounts, it ranks among the top 5 Depository Participated in India, registered
with NSD and CDSL Karvy COM trade, Member of NCDEX and MCX ranks
among the top 03 commodity brokers in the country. Karvy Insurance brokers are
registered as a Broker with IRDA and ranks among the top 05 insurance agent in
the country.
Karvy has 575 offices over 375 locations across India overseas at Dubai
and New York. Over 9,000 high qualified people staff Karvy.
Karvy Early Days:
Karvy the name comes from the names of the directors:
K - Mr. Krishna Prasad
A - Mr. Arun
R - Mr. Radha Krishna
V- Mr. Venkat Krishna
Y- Mr. Yogender
The birth last of Karvy was on a modest scale in 1979. It began with the
vision and enterprise of a small group of practicing Chartered Accounts who
founded the flagship company. Karvy started with consulting and financial
accounting and carved inroads into the fields of registry and share accounting by
1985. Since then, Karvy have utilized its experiences and superlative enterprise
to go from.

Strength to Strength .. To better its services, to provide new ones, to
innovative, diversity and the process, evolved Karvy as one of Indias premise
integrated financial services.
GROWTH AND DEVELEPMENT OF KARVY:

Over the last 23 years Karvy karvy has traveled the success route, towards
building a reputation as an integrated financial services provider, offering a wide
spectrum of services. And they have made the journey by taking the route of
quality services. Path breaking innovation in services, versatility in service and
finally totality in services.
Their highly qualified manpower, cutting-edge technology, comprehensive
infrastructure and total customer-focus has secured for us the position of an
emerging financial services giant enjoying the confidence and support of an
enviable clientele across divers field in the financial world.
With the experience of year of holistic financial behind us and years of complete
experience in the industry to look forward to, they have now emerged as a
premier integrated financial services provider.
And today, they can look with pride at the fruits of their mastery and
experience comprehensive financial services that are competently segregated to
service and manage a diverse range of customer requirements.
AT PRESENT STATUS OF KARVY:

Present Karvy is a member of National Stock Exchange(NSE), the Bombay
Stock Exchange(BSE), and the Hyderabad Stock Exchange(HSE). Market
analysis and market predictions are done by professional management team.
KARVY as covering the spectrum of financial services such as stock
broking services, Advisory Services, Stock broking , Depository Participants,
Distribution of financial products mutual funds, Fixed Deposits, Equities,
Insurance broking commodities broking, Personal Finance Advisory Services,
Merchant Banking and Corporate Finance, Placement Finance, Placement of
equity, IPOs, among other.
VISION OF KARVY:
To achieve and sustain market leadership, Karvy shall aim for complete
customer satisfaction, by combining its human and technological resources to
provide world class quality services. In the process Karvy shall strive to meet
and exceed customers satisfaction and set industry standards.
Their values and vision of attaining total competence in their servicing has
served building block for creating a great financial enterprise, which stands solid
on their fortresses of financial strength their various companies.
MISSION OF KARVY
Our mission is to be a leading and preferred services provider to our
customers, and we aim to achieve this leadership by building an innovative,
enterprising, and technology driven organization which will highest of services
and business ethics.
DATA ANALYSIS AND INTERPRETATION
Table 1 showing respondent age

Age
25-35yrs
35-45yrs
45-55yrs
Above 55yrs
Total
No. of Respondent
58
29
7
2
97
percentage
60%
30%
7%
2%
100%
Age
70%
60%
60%
50%
40%
30%
30%
20%
7%
10%
0%
25-35yrs
35-45yrs
45-55yrs
2%
Above 55yrs
percentage
Interpretation:
From the table it is found that 60% of the respondents are between the age 25-35years, 30%
of them are in the age group of 35-45yrs and a very low percentage about 2% of them are
above 55 years.
Table 2 showing Occupation of the respondents

Occupation
Self employed
Working
Retired
total
No. of
Respondent
36
56
4
97
percentag
e
37%
58%
4%
100%
70%
58%
60%
50%
40%
37%
30%
20%
10%
0%
4%
Self employed
Working
Retired
percentage
Interpretation:
It is found that 58% of respondents are working class, 37%of the respondents are Self
employed, and only 4% of respondents are Retired persons.
Table 3 showing marital status

Marital Status
Married
Unmarried
Divorce
Widowed
Total
No. of Respondent
46
47
2
1
97
percentage
47%
48%
2%
1%
100%
60%
50%
47%
48%
40%
30%
20%
10%
0%
Married
Unmarried
2%
1%
Divorce
Widowed
percentage
Interpretation:
It is found that 47% of the respondents are married, 48% of the respondents are Unmarried,
2% of the respondents are Divorce and 1% of the respondents are Widowed.
Table 4 showing Gender

Marital Status
Married
Unmarried
Divorce
Widowed
Total
No. of Respondent
46
47
2
1
97
percentage
47%
48%
2%
1%
100%
Gender
90%
80%
78%
70%
60%
50%
40%
30%
22%
20%
10%
0%
Male
Female
percentage
Interpretation:
78% of the respondents are Male and 22% of the respondents are Female.
Table 5 Showing Annual income

Annual Income
2-3Lakh p.a
3-5Lakh p.a
Above 5Lakh
p.a
Total
No. of Respondent
59
35
percentag
e
61%
36%
3
97
3%
100%
Annual Income
70%
60%
61%
50%
36%
40%
30%
20%
10%
0%
3%
2-3Lakh p.a
3-5Lakh p.a
Above 5Lakh p.a
percentage
Interpretation:
From the sample of 97, 61% of the respondents are between the annual income of Rs
200000-300000, 36% of the respondents are between the annual income of Rs 300000500000 and 3% the respondents are between the annual income of Above Rs 500000.
Table 6 Showing percentage of income saved on monthly basis.

Percentage of Saving
5-10%
10-20%
20-30%
above 40%
Table
No. of Respondent
36
47
13
1
97
Percentag
e
37%
48%
13%
1%
100%
Percentage of income
60%
48%
50%
40%
37%
30%
20%
13%
10%
1%
0%
5-10%
10-20%
20-30%
Percentage
Interpretation:
above 40%

From the sample of 97, there are 48% of respondents monthly saving ranges from 10-20% &
37% of respondents monthly saving range from 5-10% and only 1% of respondents are
saving above 40%. This shows that the saving habits of people are low.
Table 7 showing preferred choice of investment options

Questions
Fixed deposit
Recurring deposit
Gold scheme
Chit Funds
Mutual funds
Insurance
PPF
Total
No. of Respondent
54
15
24
15
14
53
7
182
percentage
30%
8%
13%
8%
8%
29%
4%
100%
Choice of investment options

35%
30%
30%
29%
25%
20%
13%
15%
10%
8%
8%
8%
4%
5%
0%
percentage

Interpretation:
From the sample of 97, 30% of respondents prefer to invest in Fixed Deposit, 29% of
respondents prefer to invest in Insurance, 13% of respondents prefer to invest in Gold
scheme, 8% of respondents prefer to invest in Recurring deposit, Chit Funds, Mutual funds,
and 4% of respondents prefer to invest in PPF.
Table 8 Table showing factors considered for selecting the investments options
Factors
Safety
Return
Risk
Total
No. of Respondent
50
34
13
97
percentage
52%
35%
13%
100%
Investments options
60%
52%
50%
40%
35%
30%
20%
13%
10%
0%
Safety
Return
percentage
Risk

Interpretation:
From the sample of 97, 52% of respondents consider safety as top most important factor for
investing in given investment option followed by 35% of respondents consider Return as
important factor for investment and 13% of respondents consider risk factor while selecting
investment option,
Table 9 showing awareness level of respondents towards Systematic Investment Plan in

Mutual fund Schemes
No. of
SIP in MF scheme
Respondent
percentage
Aware
23
24%
Partially Aware
54
56%
Unaware
20
21%
Total
97
100%
SIP in Mutual Fund Schemes
60%
56%
50%
40%
30%
24%
21%
20%
10%
0%
Aware
Partially Aware
percentage
Unaware

Interpretation:
From the sample of 97, 56% of respondents partially aware SIP in Mutual fund Schemes,
24% of respondents are fully aware of SIP in Mutual fund Schemes, and 21% of respondents
are not aware of SIP in Mutual fund Schemes.
Table10 showing 9 showing awareness level of respondents Recurring deposit schemes

in
Bank/Post office
No. of
RDS In Bank/PO
Respondent
percentage
Aware
47
48%
Partially Aware
32
33%
Unaware
18
19%
Total
97
100%
RD schemes in Banks/Post office
60%
50%
48%
40%
33%
30%
19%
20%
10%
0%
Aware
Partially Aware
percentage
Unaware

Interpretation:
From the sample of 97, 48% of the respondents are aware of RD schemes in Banks/Post
office, 33% of the respondents Partially Aware RD schemes in Banks/Post office and 19%
the respondents are not aware of RD schemes in Banks/Post office. By comparing between
both SIP MF schemes and RD the level of awareness with respect to RD schemes is more
compare to SIP MF schemes. As RD schemes were introduced much before SIP MF schemes
came into the market this could be one of the reason for being aware on RD schemes then
SIP MF scheme.
Table 11 among the two investment choice which one would you prefer for investment.
Prefer for investment
SIP in Mutual Fund
RDS in Bank/Post office
Total
No. of
Respondent
30
67
97
percentag
e
31%
69%
100%
Choice of Investments

80%
69%
70%
60%
50%
40%
31%
30%
20%
10%
0%
SIP in Mutual Fund
RDS in Bank/Post office

percentage
Interpretation:
From the sample of 97, 69% of respondents are RD Scheme in Bank/Post office and only
31% of Systematic Investment Plan in Mutual Fund.
Table 12 Do you feel any difference among the two investment choice suggested above?
Investment choice
Yes
No
Total
No. of Respondent
50
47
97
percentag
e
52%
48%
100%
Investment choice
percentage
percentage
52%
48%
Yes
No
Interpretation:
From the sample of 97, 52% of respondents feel that there is difference among two
investments suggested and 48% feel there is no difference between the schemes.
Table 13 Read the questions below and tick any one choice given in the choice.
Questions
Investment in SIP in Mutual
fund is risky
Rate of return is fixed in SIP
Investment can be made in
lump sum under SIP schemes
Agree
Partially
agree
Disagre
e
weighted
score
Percentage
60
11
16
66
17
15
229
180
17%
13%
24
39
28
178
13%

The minimum amount under
SIP starts with Rs. 500 per
month
We can withdrawn the amount
any time before the maturity
Investment in SIP can be done
through cash/cheque/auto
debit
Compare to Recurring Deposit
SIP gives higher rate of return
Total
120
100
80
60
40
20
0
17
16
60
32
34
28
192
14%
25
49
18
191
14%
26
31
35
175
13%
33
211
40
275
23
164
202
1347
15%
100%
15
28
28
18
66
39
34
49
31
11
24
32
25
26
Agree
Partially agree
35
23
40
33
Disagree
Interpretation:
The table shows 60 of respondent agree that investment in SIP is risky, 66 of respondent
Partially agree that investment Rate of return is fixed in SIP, 39 of respondent Investment can
be made in lump sum under SIP schemes, 34 of respondent The minimum amount under SIP
starts with Rs. 500 per month, 40 of respondent Compare to Recurring Deposit SIP gives
higher rate of return and 49 of respondent We can withdrawn the amount any time before the
maturity and 35 respondent disagree Investment in SIP can be done through cash/cheque/auto
debit.
18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
17%
13%
13%
14%
14%
13%
15%
Percentage
Interpretation:
The table shows that 17% of respondent agree that investment in SIP is risky, 15% of people
feel that compare to Recurring Deposit SIP gives higher rate of return, 14% of peoples agree
that the minimum amount under SIP starts with is Rs. 500 per month and also we can
withdrawn the amount any time before the maturity and 13% of peoples partially agree that
the Rate of return is fixed in SIP and Investment can be made in lump sum under SIP scheme
and the mode of payment can be through cash, cheque, auto debit.
Table 14 Read the questions below and tick any one choice given in the choice.
Agre
e
Partially
agree
Disagre
e
weighted
score
Percentag
e
42
32
15
205
15%
Rate of interest on RD is fixed

Investment can be made in
lump sum under RD schemes
The minimum amount under
RD starts with Rs. 100 per
month
We can withdrawn the amount
any time before the maturity
Investment in RD can be done
through cash/cheque/auto debit
Compare to SIP,RD gives
higher rate of return
29
48
15
198
15%
20
40
32
172
13%
38
37
19
207
15%
28
44
17
189
14%
30
43
21
197
15%
33
33
25
190
14%
Total
220
277
144
1358
100%
Questions
Investment in Recurring
Deposit scheme is safe

100
90
80
70
60
50
40
30
20
10
0
15
15
32
48
42
29
Agree
32
19
17
21
25
37
44
43
33
38
28
30
33
40
20
Partially agree
Disagree
Interpretation:
The table shows 42 of the respondents are Agree to Investment in Recurring Deposit scheme
is safe, 48 of the respondents are Partially agree to Rate of interest on RD is fixed and 32 of
respondent Disagree Investment can be made in lump sum under RD schemes.

18%
16%
14%
12%
10%
8%
6%
4%
2%
0%
15%
15%
15%
13%
14%
15%
14%
Percentage
Interpretation:
The table shows that 15% of respondents agree that investment is RD scheme is safe, rate of
return is fixed, and minimum amount to open account is Rs. 100 and payment can be made
through cash, cheque or auto debit and 14% feels that withdrawal can be done anytime in RD
and compare to SIP RD gives higher rate of return. 13% of respondent disagree that
investment in RD can be made in lump sum. This shows that investors are having more
knowledge and awareness with respect to RD schemes compare to SIP Schemes.
Table 15 showing period of investment in SIP/RD

Percentage
Period of investment
1year
2year
Investment in RD
08
10
12%
15%
Investment
in SIP
00
13
percentage
00%
43%

3year
Above 3yrs
Total
60%
13%
100%
40
09
67
12
05
30
40%
17%
100%
Period of investment
60%
54%
50%
40%
30%
24%
20%
10%
0%
13%
8%
1year
2year
3year
Above 3yrs
percentage
Interpretation:
From the sample size of 67, 60% of the respondents have invested in RD for a period of
3years, 15% of them for 2years, 13% of them invested above 3years and 12% of the
respondents invested for just 1year in RD schemes.
Whereas out of sample size of 30 respondents invested in SIP MF scheme: 43% of them have
invested for 2yrs period and 40% of them for 3yrs and balance 17% of them for above 3years
period.
Table 16 the reason for investing in systematic Investment Plan.

Questions
To achieve short term financial goal
No. of Respondent
66
percentag
e
40%

To pay annual insurance premium
To take advantage of income tax benefit
To earn higher rate of return
To have basket of financial assets in the
portfolio
Total
22
38
26
13%
23%
16%
11
163
7%
100%
Systematic Investment Plan

45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
40%
23%
13%
16%
7%
percentage
Interpretation:
From the above chart the reason for investing in Systematic Investment Plan of MF is , 40%
of them says to achieve short term financial goal, 23% to take advantage of income tax
benefit, 16% to earn higher rate of return, 13% to pay annual insurance premium and 7% to
have basket of financial assets in the portfolio.
Table 17 the reason for investing in Recurring Deposit Scheme

Questions
No. of Respondent
57
percentage
44%

To earn fixed rate of return
Total
40
33
130
31%
25%
100%
Systematic Investment Plan

50%
45%
44%
40%
35%
31%
30%
25%
25%
20%
15%
10%
5%
0%
percentage
Interpretation:
From the above chart it is found that the reason for investing in RD schemes is basically,
44% of them says to achieve short term financial goal, 31% to pay annual insurance premium
and 25% to earn fixed rate of return.
CONLUSTION
I had a great experience during my project, in this period I come to know about
The Investment Behavior of SIP & RD schemes investors in Bijapur city. I
studied about how the behavior of a particular investor will be how they make
their investment decisions.
Many investors are not aware of SIP & RD Schemes they will invest by taking
the advice of their friends & relatives, So many of them have suffered from
losses.

BIBLIOGRAPHY
Monthly magazine.
News papers.
WEBSITES VISITED
WWW.KARVY.COM
WWW.SIP.COM
WWW.MUTUALFUND.COM
A STUDY ON FACTORS AFFECTING CHOICE OF INVESTORS WITH RESPECT

TO SELECTION OF SYSTEMMATIC INVESTMENT PLAN V/S RECURRING
DEPOSIT SCHEME IN BIJAPUR CITY.

Investors Profile
a.
b.
c.
d.
e.
f.
Name : ____________________________________________
Age : 25-35yrs ( ) 35-45yrs (
)
45-55yrs (
) Above 55yrs (
)
Occupation: Self employed (
)
Working (
)
Retired(
)
Marital Status: Married (
) Unmarried(
)
Divorce (
)Widowed (
)
Gender: Male (
)
Female (
)
Annual Income : 2-3 lakh p.a. (
) 3-5 lakh p.a. (
)
Above 5 lakh p.a (
)
Research Questions
1.
2.
3.
4.
5.
6.
What percentage of your income do you save on monthly basis?

a. 5 10%( ) b. 10 20%( )
c. 20-30%(
)
d. Above 40%(
)
What are your preferred choice of investment options?
a. Fixed Deposit
(
)
b. Recurring Deposit ( )
c. Gold Scheme
(
)
d. Chit funds
(
)
e. Mutual funds
(
)
f. Insurance
(
)
g. PPF
(
)
What factors do you consider while selecting the investment options? Rate 1most important , 2 Important , 3 Less important
a. Safety
(
)
b. Return
(
)
c. Risk
(
)
Are you aware of Systematic Investment Plan in Mutual fund Schemes?
a. Yes ( ) b. Partially Aware ( )
c. No(
)
Are you aware of Recurring Deposit Schemes in Banks/Post office?
a. Yes ( ) b. Partially Aware ( )
c. No(
)
Among the two investment choice which one would you prefer for
investment?
a. Systematic Investment Plan in Mutual Fund
b. Recurring Deposit scheme in Bank/Post office
(
(

7.
Do you feel any difference among the two investment choice suggested
above?
a. Yes (
b. No(
8. Read the questions below and tick any one choice given in the column
Questions
Agree
Partially
Agree
Disagree
Investment in SIP in mutual fund is

risky
Rate of return is fixed in SIP
Investment can be made in lumpsum
under SIP schemes
The minimum amount under SIP start
with Rs. 500 per month
We can withdrawn the amount any
time before the maturity
Investment in SIP can be done
Compare to Recurring Deposit SIP
gives higher rate of return
9.
Read the questions below and tick any one choice given in the column
Questions
Agree
Investment in Recurring Deposit

Schemes is safe
Rate of Interest on RD is fixed
Investment can be made in lumpsum
under Recurring Deposit schemes
The minimum amount under RD start
with Rs. 100 per month
We can withdrawn the amount any
time before the maturity
Investment in RD can be done
Compare to SIP , RD gives higher
rate of return
Partially
Agree
Disagree
10.
a.
What is your time period of investment in SIP/RD?

1year (
) b. 2years(
)
c. 3 years (
)
d. Above 3 yrs (
11.
a.
b.
c.
d.
e.
What is the reason for investing in Systematic Investment Plan?

(
)
(
)
To take advantage of income tax benefit
(
)
To earn higher rate of return
(
)
To have basket of financial assets in the portfolio
(
)
12.
a.
b.
c.
What is the reason for investing in Systematic Investment Plan?

(
)
(
)
(
)
Thank You

Factors Affecting Choice of SIP vs RD Schemes

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KARVY STOCK BROKINGLTD

KARVY STOCK BROKING LIMITED, BIJAPUR

A Report Submitted In Partial Fulfillment of the Award For the Degree

PROF. MAHESH BENDIGERI

Mr. SAYED MEHBOOB QUDARI

Submitted in partial fulfillment of the requirement for

GLOBAL BUSINESS SCHOOL HUBLI -25 Page 1

KARVY STOCK BROKINGLTD

GLOBAL BUSINESS SCHOOL,

A STUDY ON FACTORS AFFECTING CHOICE OF INVESTORS WITH

RESPECT TO SELLECTION OF SYSTEMATIC INVESTMENT PLAN V/S RECURRING

is the bonafide record of

research work done by Mr.GURAPPA.S.ATHANI US No:

Prof. Mahesh Bendigeri

KARVY STOCK BROKINGLTD

I,Mr.GURAPPA S ATHANI hereby declare that the Project entitled A STUDY

submitted by me in partial fulfillment of the requirement for the award of the

GLOBAL BUSINESS SCHOOL HUBLI -25 Page 3

KARVY STOCK BROKINGLTD

GLOBAL BUSINESS SCHOOL HUBLI -25 Page 4

KARVY STOCK BROKINGLTD

Design of the study

Findings & Suggestions

Data Analysis &

GLOBAL BUSINESS SCHOOL HUBLI -25 Page 5

KARVY STOCK BROKINGLTD

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KARVY STOCK BROKINGLTD

INTRODUCTION OF SYSTEMATIC INVESTMENT PLAN:

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DESIGN OF THE STUDY

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Scope of the study:

LIMITATIONS OF THE STUDY:

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Primary data: Primary data was collected by questionnaire. It is systematic

Research Instrument: Questionnaire.

: 22th of May to 22th June 2015.

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GROWTH AND DEVELEPMENT OF KARVY:

AT PRESENT STATUS OF KARVY:

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DATA ANALYSIS AND INTERPRETATION

Table 1 showing respondent age

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Table 2 showing Occupation of the respondents