mba project

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A study on investors perception about investing in mutual funds.
St. Vincent Pallotti College
Affiliated to Pt. Ravishankar Shukla University Raipur (CG).
In partial fulfillment of award of degree of bachelor of business administration
session 2020-21.
Mentored by Guided by
Dr. Prachi Singh Mr. Dhaneshwar yadav
Submitted by
Kamya Wadhwani
BBA 6th
semester

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DECLARATION
I, Kamya Wadhwani, of BBA 6th
Semester of St. Vincent Pallotti College hereby declare that the project
report entitled “Investors perception about investment in mutual funds” is record of
original work done by me and the matter enclosed has not been submitted for the award of any other
degree or diploma in the university or elsewhere.
Date:
Place:
Kamya Wadhwani
BBA 6th
semester

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Acknowledgement
I would like to express appreciation and gratitude to various people who shared their valuable time and
experience to make this project a success.
Its my profound privilege and pleasure to express overwhelming sense of gratitude and regards to our
principal Dr. Kuldeep Dubey, for their support throughout the course.
I am sincerely thankful to our mentor Dr. Prachi Singh, HOD of management department, for her
valuable time and guidance throughout the project.
I express my thank to my guide Mr. Dhaneshwar Yadav for his able guidance and cooperation during
the completion of this project.
I would also like to thank other faculty members, all the respondent, my family and friends, for their
support and help.
Kamya Wadhwani.

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INDEX
CHAPTER PARTICULARS PAGE NO.
1 INTRODUCTION 5-14
2 OBJECTIVES 15-16
3 RESEARCH METHODOLOGY 17-21
4 DATA ANALYSIS & INTERPRETATION 22-32
5 FINDINGS, SUGGESTIONS, LIMITATIONS 33-36
6 CONCLUSION 37-38
7 APPENDICES
I. BIBLIOGRAPHY
II. QUESTIONNAIRE
39-43

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CHAPTER - 1
“INTRODUCTION”

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“Introduction of Mutual Fund”
Mutual fund now represents perhaps the most appropriate investment opportunity for most
small investors. A mutual fund uses the money collected from investors to buy those assets
which are specifically permitted by its stated investment objective.
In INDIA mutual fund is constituted as a Trust and the investor that subscribes
units issued by the fund, hence the term unit trust comes into the picture.
Mutual fund, form of a Management investment company that combines the money of its
shareholder and invests those funds in a wide variety of stocks, bonds, and securities and
money market instruments. The latter include short term investment such as United States
Treasury bills and other federal securities, commercial paper, and bank certificate of
deposits. Mutual funds provide the investor with professional management of funds and
diversification of investment among the securities offered by leading corporations, federal
and state governments, and other entities.
What Is Mutual Fund?
In a mutual fund, many investors contribute to form a common pool of money. This pool
of money is invested in accordance with a stated invested objective. The
ownership of the fund is thus joint or mutual i.e: the fund belongs to all investors. A single
investor‘s ownership of the fund is in the same proportion as the amount of the
contribution made by him bears to the total amount of the fund.
When a person buys shares of a joint stock company, the purchase makes the investors a
part owner of the company and its assets. In the same way, when an investor subscribes to
a mutual fund, he becomes part owner of fund assets. In fact, in U.S.A., a mutual is
constituted as an investment company and an investor ―buy into the fund, meaning he
buys the share of the fund. In India, a mutual a mutual fund is constituted as a Trust and
the investor subscribes to the units of a scheme launched by the fund, which is where the
term Unit Trust comes from. However, whether the investor gets fund shares or units is
only a matter of legal distinction. In any case, a mutual fund shareholder or units-holder is

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a part owner of the fund‘s assets. The term unit-holder includes investors in both the open-
end and the closed end schemes.
THE HISTORY OF MUTUAL FUNDS IN INDIA
The mutual fund industry in India began with the setting up of the Unit Trust in India (UTI) in 1964 by
the government of India. During the last 36 years, UTI has grown to be a dominant player in industry
with asset of over Rs. 45,899 crores as of December 31, 2002. The UTI is governed by a special
legislation, the Unit Trust of India Act, 1963. In 1987 public sector banks and insurance companies were
permitted to set up mutual funds and accordingly since 1987, 6 public sector banks have set up mutual
funds. Also the two insurance companies LIC and GIC established mutual funds. Securities exchange
board of India (SEBI) formulated the mutual fund (regulation) 1993, which for the first time established
a comprehensive regulatory framework for mutual fund industry. Since then several mutual funds have
been set up by the private and joint sectors. 1987 marked the entry of other public sector mutual funds.
With the opening up of the Economy, many public sector banks and financial institutions were allowed
to establish mutual funds. SBI established the first non-UTI mutual fund-SBI Mutual fund-in November
1987. This was followed by Can bank Mutual fund, LIC Mutual fund, Indian Bank mutual Fund, and
PNB Mutual Fund. These funds helped in enlarging the investor community and the investable funds.
Organization of mutual fund industry:
The organization of mutual fund operation in India envisages a six tier establishment
namely:
1. A sponsor institution to promote the fund.
2. A term of trusties to oversee the operations and to proved checks for efficient, 3. 3.
Profitable. and transparent
4. An Asset Management company (AMC) to actually deal with the fund.
5. A custodian (care taker).
6. A transfer agent.
7. A trusty company

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“SBI Funds Management Private Limited”
Key Information
SBI Mutual Fund
Mutual Fund
Setup Date
Jun-29-1987
Incorporation Date
Feb-07-1992
Sponsor State Bank of India
Trustee
SBI Mutual Fund Trustee Company Private
Limited
Chairman
Ms.Arundhati Bhattcharya
CEO / MD
Mr. Deepak Kumar Chatterjee
CIO
Mr. Navneet Munot
Compliance
Officer
Ms. Vinaya Datar

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Investor Service Mr. C A Santosh
Officer

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Rs. 47874.46 crore (Jun-30-2012)
Assets Managed
Other Details
Haribhakti & Co / M/S. Chandabhoy & Jassoobhoy
Auditors
Bank of Nova Scotia / City Bank / HDFC Bank / Stock
Custodians Holding Corporation of India
Registrars
Computer Age Management Services Pvt. Ltd,
Computronics Financial Services (I) Ltd, Datamatics
Financial Software Services Ltd
Address 191 Maker Tower E, Cuffe Parade, Mumbai - 400005.
022
Fax Nos. – 22189663
partnerforlife@sbimf.com
E-mail
“FACILITIES OF STATE BANK OF INDIA”
Telephone Nos. 022 - 22180221-27

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At-Home services Use our At-Home services to make your Utility Bill payments like
electricity, telephone, mobile phone bills etc. You can also get your documents
picked up from your business place. This facility is available at select cities
absolutely free of cost!
Free investment account Use the Net Banking facility to purchase/redeem mutual
funds online while directly debiting / crediting your bank account. Further, you get a
free investment account for tracking your investments with the Bank. This account
provides you a consolidated view of all your mutual fund investments across
schemes with updated returns status, latest NAV information and research reports.
Transfer money to any VISA credit/debit card in India
An experienced Free research team to analyze and research the Mutual Funds
available in the market
Portfolio assistance
Efficient depository services that allow you to hold your shares in convenient
"demat" formats.
Leverage opportunities in the stock-market when you spot them.
Carefully selected insurance policies to suit your needs.
Experts to help you analyze your insurance needs and develop the solution that
works best for you.
24 carat pure gold coins and bars carrying a 99.99% Assay Certification
Unique number on every credit card, with records maintained in Switzerland.
“MAJOR COMPETITORS”
HDFC MUTUAL FUND
TATA MUTUAL FUND

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REALIENCE MUTUAL FUND
DSP Blade Rock MUTUAL FUND
KOTAK MUTUAL FUND
PRINCIPAL MULUAL FUND
Sundram BNP Paribus MUTUAL FUND
Franklin Templeton MUTUAL FUND
Birla Sun Life MUTUAL FUND
I like to introduce my project as “Study of Mutual Fund Schemes”
A Mutual Fund is a type of Professionally managed investment fund that pools money
from many investors to purchase Securities. While there is no Legal definition of the
term mutual Fund.
It is most commonly applied only to those collective investment vehicles that are regulated
and sold to the general Public They are sometimes referred to as ―Investment

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Companies‖.
In this project, first part is the study of Mutual Fund Investment products available for the
customers of SBI in present context 2014-15 is based on secondary data; second part is the
analysis of the behavior pattern of the customers towards the mutual Fund investment, which is
fully based on primary data. Here I also tried to analyze the attitude of the investors towards SBI.
I have also prepared one questionnaire for getting more result that is appropriate and tried to
provide some solutions and suggestion. I have also mentioned limitations of my project work. I
have also prepared a swot analysis chart to find out the position of State Bank of India.
“SCOPE”
• To tap the future market.
• To know about the future competition by understanding their unit wise sales.
• To know about the sales potential.
• To find out the expectations of the consumers about the products.
• To study the factors affecting on SBI mutual fund services.
• To retain the existing user and to convert the new prospects into buyers.
“IMPORTANCE”
If mutual fund is emerging as the favorite investment vehicle, it is because of many
importance it has over the forms and avenues of investing, particularly for the
investor who has limited resources available in terms of capital and ability to carry

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out detailed research and market monitoring. The following are major importance
offered by mutual funds to all investors.
Portfolio Diversification: Mutual Funds normally invest in a well-diversified
portfolio of securities. Each investor in a mutual fund is a part owner of all of the
fund‘s assets. This enables him to hold a diversified investment portfolio even with a
small amount of investment, which would otherwise require big capital.
Professional Management: Even if an investor has a big amount of capital available
to him, he benefits from the professional management skills brought in by the fund in
the management of investors portfolio.
Reduction / Diversification of Risk: An investor in a mutual fund acquires. A
diversified portfolio, no matter how small his investment. Diversification reduces the
risk of loss as compared to investing directly in one or two shares or debentures or
other instruments.
Reduction of Transaction Costs: What is true of risk is also true of the transaction
costs. A direct investor bears all the costs of investing such as brokerage or custody
of securities.

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Liquidity: Often, investors hold shares or bonds they cannot directly, easily and
quickly sell. Investment in a mutual fund, on the other hand, is more liquid.
Convenience and flexibility: Mutual fund management companies offer many
investors cannot get.

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“chapter-2”
“OBJECTIVES”
Page |

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“OBJECTIVE OF THE STUDY”
To find out & analyze the need/requirement of investors/customers.
To analyze whether customers are aware of & utilizing the product and services provided by SBI.
To access whether the investment account of SBI is beneficial and helping the customers to
increase their wealth.
To properly track the wealth creation products & being advised to the correct target
segment/audience.
To find whether customers are satisfied with SBI as an investments.
To know about the mutual fund.
To Study the various schemes offered by SBI mutual fund.
To study in which schemes the investor invests the most.
To study what are the factors affecting Mutual fund choice of Investor.

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CHAPTER- 3
“RESEARCH METHODOLOGY”

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RESEARCH METHODOLOGY
Meaning of Research
Research is "creative and systematic work undertaken to increase the stock of knowledge".[1]
It involves the
collection, organization, and analysis of information to increase understanding of a topic or issue. A research
project may be an expansion on past work in the field. To test the validity of instruments, procedures, or
experiments, research may replicate elements of prior projects or the project as a whole.
The primary purposes of basic research (as opposed to applied research) are documentation, discovery, interpretation, and
the research and development (R&D) of methods and systems for the advancement of human knowledge. Approaches to
research depend on epistemologies, which vary considerably both within and between humanities and sciences. There are
several forms of research: scientific, humanities, artistic, economic, social, business, marketing, practitioner research,
life, technological, etc. The scientific study of research practices is known as meta-research.
DEFINATION OF RESEARCH
According to Redam and Morry "research is a process of steps used to collect and analyze information to
increase our understanding of a topic or issue". It consists of three steps: pose a question, collect data to answer
the question, and present an answer to the question.
RESEARCH DESIGN
Research Design is nothing but it is the blue print of what actual research as to be made so that different kind
of project or different kinds if work can be properly taken place. Research design has greater impact in
collection and evaluation of data as it tells as weather the information is collected as per requirement or not.

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TYPES OF RESEARCH DESIGN
Exploratory Research Design
Exploratory Research studies are also called formative research studies. The main object of such studies is to
formulate a problem for more precise investigation. Exploratory research is conducted for a problem that had
not been clearly defined. It often occurs before we known enough to make conceptual distinction about and
exploratory relationship. Exploratory research helps us to determine the best design, data collection methods
and selection of subjects.
Descriptive Research Design
The Descriptive Research studies determine the frequency with which something occurs. The studies show
certain variables are associated with diagnostic research studies. Most of the social research comes under this
category.
Experimental Research Design
The Experimental Research is a blue print of the procedure that enables the researchers to test his hypothesis
by reaching valid conclusions about relationship between independent and dependent variables. It refers to the
conceptual framework within which the experiment is conducted.
Again we consider that when researcher performs the research by using using experimental method, they only
observe the past events on circumstances. Therefore, the experimental research makes the classification of the
fact that if the change has been made in experimental variables having been controlled all types of related
variables of circumstances carefully, what result can be taken from this process.
For this project, I have used EXPLORATORY RESEARCH DESIGN.

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SOURCES OF DATA COLLECTION.
Primary Data
The data which is collected by research himself directly from the original source is called primary data.
Primary data is collected through the following methods ;
1. QUESTIONNAIRE
2. OBSERVATIONAL METHOD
3. PERSONAL METHOD
Secondary Data
The data which have been collected from some other purposes or by someone else for some specific purpose
for the interest of his research study is called secondary source of data collection. Secondary data is collected
through following methods ;
1. INTERNAL DATA
2. From BOOK
3. INTERNET
Primary data: The primary data was collected using a Questionnaire
Secondary data: The secondary data was collected from Subject Books, Research Papers, Internet etc.

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SAMPLING AND SAMPLING design
When you collect any sort of data specially quantitative data, whether observational, through surveys or from
secondary data you need to decide which data to collect and from whom. THIS IS CALLED SAMPLING.
Sampling method. Sampling method refers to the rules and procedures by which some elements of the
population are included in the sample. Some common sampling methods are simple random sampling,
stratified sampling, and cluster sampling.
Estimator. The estimation process for calculating sample statistics is called estimator. Different sampling
methods can use different estimators.
Sampling Types ;
Random sample. Here every member of the population is equally likely to be a member of the sample.
Members are chosen via random process.
Simple random sample. In this type of sample individuals are randomly obtained and so every individual is
equally likely to be chosen.
Voluntary response sample. Here subjects from the population determine whether they will be member of the
sample or not. This type of sample is not reliable to do meaningful statistical work.
Convinence sample. This type of sample is characterized by the selection of easy to obtain members from the
population.
Systematic sample. A systematic sample is chosen on the basis of an ordered system.
Cluster sample. A cluster sample involves using a simple random sample of evident groups that the
population contains.
Sample design:
• Sample technique: Random sampling
• Sampling unit: Individual
• Sample size: 150 respondents
• Sample area: Raipur city.

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Chapter:4
Data analysis

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Q1 what is your monthly family income approximately ?
Below 100000 48.5%
100000-500000 45.5%
500000-1000000 0%
Above 1000000 6.1%

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Q2 what kind of investment you have made so far ?
Fixed deposit 32.3%
Insurance 22.6%
Mutual funds 12.9%
Silver/gold 16.1%
State estate 6.8%
Share/debenture 9.7%

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Q3 while investing your money , which factor will you prefer ?
Liquidity 11.4%
Low risk 31.4%
High return 37.1%
Trust 20%

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Q4 Are you aware about mutual funds and there operations?
Yes 68.6%
No 14.3%
Maybe 17.1%

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Q5 How did you know about mutual funds ?
Advertisement 51.4%
Banks 14.3%
Financial advisor 20%
Others 14.3%

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Q6 Have you ever invested in mutual funds ?
Yes 42.9%
No 57.1%

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Q7 When you plan to invest your money in assets management co. which
A M C will you prefer ?
Assets managements 11.4%
SBI mutual funds 37.1%
Reliance 11.4%
Kotak 8.6%
HDFC 14.3%
ICICI 17.1%

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Q8 Which channel will you prefer while investing in mutual funds ?
Financial advisors 57.1%
Banks 42.9%

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Q9 When you invest in mutual funds which mode of investment will you
prefer ?
One time investment 31.4%
Systematic investment
plans
68.6%

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Q10 How would you like to receive the returns every year ?
Dividend payout 31.4%
Dividend re-investment 68.6%

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Chapter -5
Findings and suggestions

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1. Most of the people are invested in Mutual Funds.
2. Almost 41% people invest in Open ended fund, 18% people invest in Close ended fund, and 41%
invest in both.
3. Out of 50 people, 26 people are invested in Mutual Fund, 12 people are invested in Banks, 4
people in Share Market and 8 people in Post office.
4.70% of people agreed that they are getting good returns in their SBI Mutual Fund.
5 Out of 50 people, 29 people have invested in Mutual Funds in between 1-2 Years.
6. 53% of the people come to know about Mutual fund through Brokers.
7. While survey I found that people are satisfied with their investment and most of them do not want to
shift to other mutual fund

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“LIMITATIONS”
We have to face certain difficulties while carrying out the research work.
I know the limitations before hands which are controllable. Some important limitations faced
during the project are as follows:-
Sample Size:
The opinion of just 50 respondents cannot represent opinion of all investors.
Limitations of responses:-
The number of responses given by the respondents may not always 100% correct.
Also some respondents refuse to disclose data.
Accuracy of data:-
Though extensive efforts are made to collect accurate data but due to human touch
there may be some inaccuracy in them as it is possible that the data given by
respondents may carry some inaccuracy.

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“SUGGESTIONS”
1.Use no load funds .
2.Use index funds.
3.Dollar cost averaging .
4.Buy aggressive funds .
5.Bottom line .
6.Asset allocations .

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“CHAPTER -7”
“CONCLUSION”

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“ CONCLUSION”
IN conclusion it was found that well planned and organized agent training programs
of MUTUAL FUNDS are able to achieve correct need of customer or the needed
person and it will result into a great success for the company.It plays an essential
part in the growth of the company.
Through the accurate need assessment and by understanding the nature of training
required by understanding the individual employees need a company can achieve
a tremendous success

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“BIBLIOGRAPHY”
MAGAZINE
Punithavathy Pandian ,Security Analysis and Portfolio Management ,Vikas Publishing
House,2001
WEBSITES
http;//www.moneycontrol.com
http;//www.sbimutualfunds.com
www.amfiindia.com
BOOKS
SUNDAR SANKARAN Indian Mutual Funds Handbook
NORTHCUT The Mutual Fund
ESME FAERBERR All about value investing

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QUESTIONNAIRE
A study of preferences of the investors for investment in mutual funds.
1. Personal Details:
(a). Name:-
(b). Add: - Phone:-
(c). Age:-
(d). Qualification:-
Graduation/PG
Under Graduate
Others
(e). Occupation. Pl tick (√)
Govt. Sector
Pvt. Sector
Business
Agriculture
Others
(g). What is your monthly family income approximately? Pl tick (√).
Below 100,000 1
100,000-500,000
500,000-10,00,000
Above 10,00,000
2. What kind of investments you have made so far? Pl tick (√). All applicable.
Fixed Deposit
Insurance
Mutual Funds

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Post Office/NSE
Share/Debenture
Gold/Silver
Real Estate
3. While investing your money, which factor will you prefer?
.
Liquidity
Low Risk
High Return
Trust
4. Are you aware about Mutual Funds and their operations? Pl tick (√). Yes No
Aware
Not Aware
5. If yes, how did you know about Mutual Fund?
Advertisement
Peer Group
Banks
Financial Advisors
6. Have you ever invested in Mutual Fund? Pl tick (√). Yes No
Invested
Not Invested
7. If not invested in Mutual Fund then why?
Not Aware of Mutual funds
High Risk
Not any specific reason

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8. If yes, in which Mutual Fund you have invested? Pl. tick (√). All applicable.
SBI Mutual Funds
UTI
HDFC
Reliance
Kotak
Other
9. If invested in SBI MF, you do so because (Pl. tick (√), all applicable).
SBI MF is associated with State Bank of India.
They have a record of giving good returns year after year.
Agent‘ Advice
10. If NOT invested in SBIMF, you do so because (Pl. tick (√) all applicable).
You are not aware of SBI MF.
SBI MF gives less return compared to the others.
Agent‘ Advice
11. When you plan to invest your money in asset management co. which AMC will you prefer?
Assets Management Co.
SBI MF
UTI
Reliance
HDFC
Kotak
ICICI
12. Which Channel will you prefer while investing in Mutual Fund?
Financial Advisor
Banks
AMC

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13. When you invest in Mutual Funds which mode of investment will you prefer? Pl. tick (√).
One Time Investment
Systematic Investment Plan (SIP)

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