A Study of Investors Attitude Towards Mutual Funds in Delhi
A Study of Investors Attitude Towards Mutual Funds in Delhi
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Income Plan funds offer monthly returns and invest majorly in debt oriented instruments with
little exposure to equity. However it has been observed that most of the investors are not
aware of the benefits of investment in mutual funds. This is reflected from the study
conducted in this research paper. This paper makes an attempt to identify various factors
affecting perception of investors regarding investment in Mutual funds. The findings will help
mutual fund companies to identify the areas required for improvement in order to create
greater awareness among investors regarding investment in mutual funds. According to
Mehta and Shah, the survey is undertaken of 100 educated investors of Ahmedabad and
Baroda city and the major findings reveal the major factors that influence buying behavior
mutual funds investors, sources that investor rely more while making investment and
preferable mode to invest in mutual funds market. The study will be immensely useful to the
AMC'; s, Brokers, distributors and to the other potential investors and last but not least to
academician as well. In today’s competitive environment, different kinds of investment
avenues are available to the investors. All investment modes have advantages &
disadvantages. An investor tries to balance these benefits and shortcomings of different
investment modes before investing in them. Among various investment modes, Mutual Fund is
the most suitable investment mode for the common man, as it offers an opportunity to invest
in a diversified and professionally managed portfolio at a relatively low cost. In this paper, an
attempt is made to study mainly the investment avenue preferred by the investors of Mathura,
and we have tried to analyze the investor’s preference towards investment in mutual funds
when other investment avenues are also available in the market Agrawaland Jain. A mutual
fund is a type of professionally-managed collective investment vehicle that pools money from
many investors to purchase securities. As there is no legal definition of mutual fund, the term
is frequently applied only to those collective investments that are regulated, available to the
general public and open-ended in nature. Mutual funds have both advantages and
disadvantages compared to direct investing in individual securities. Today they play an
important role in household finances. So the present study aims at consumer behavior
towards mutual funds with special reference to ICICI Prudential Mutual Funds Limited,
Vijayawada. Data was collected through primary and secondary sources. Primary data was
collected through structured questionnaire. Convenience sampling method was used to collect
the data and entire study was conducted in Vijayawada City. The study explains about
investors’ awareness towards mutual funds, investor perceptions, their preferences and the
extent of satisfaction towards mutual funds. Some suggestions were also made to increase the
awareness towards mutual funds and measures to select appropriate mutual funds to
maximize the returns (Padmaja). Rajasekar in his study on Investor’s preference of mutual
funds with reference to reliance private limited‖ a project which is mainly carried out to know
about the investor’s perception with regard to their profile, income, savings pattern,
investment patterns and their personality traits. In order to understand the level of investor’s
preference, a survey was conducted taking in to consideration various parameters involved in
investors decision making. For the purpose of evaluation, a questionnaire survey method was
selected keeping in mind objectives of the study. The data was collected from primary and
secondary sources. The primary sources were collected from the investors who invested in
various avenues. The secondary sources are from books, journals and internet. Since the
investor population is vast a sample size of 150 was taken for the project. The data was
analyzed using the statistical tools like percentage analysis, chi square, weighted average. The
report was concluded with findings and suggestions and summary. From the findings, it was
inferred overall that the investor are highly concerned about safety and growth and liquidity of
investments. Most of the respondents are highly satisfied with the benefits and the service
rendered by the reliance mutual funds
Kesavaraj carried out the study with the aim to measure the ―Customer Perception towards
various types of Mutual Funds". It focuses its attention towards the possibilities of measuring
the expectations and satisfaction level of more mutual fund products. It also aims to suggest
techniques to improve the present level of perception. The study will help the firm in
understanding the expectations, future needs and requirements and complaints of the
consumers. The study had been dedicated mainly towards the promotion of product or
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AEIJMR – Vol 6 – Issue 08 – August 2018 ISSN - 2348 - 6724
concept in the Chennai Market. The researcher used the Descriptive type of research design in
her study. The researcher used the Primary data collection method in her study by framing a
structured Questionnaire. The researcher went with convenient type of sampling method in
her study. The sample is taken as 204 by the researcher. For the purpose of Analysis and
Interpretation the researcher used the following statistical tools namely Simple Percentage
Analysis, Chi-Square Test, Karl Pearson's Correlation and One way Anova. Based on the
Analysis and Interpretation the researcher arrived out with the major findings in her study
and Suggestions are given in such a way so that the customers can attain the wealth
maximization.
As per Prabhavathi and Kishore, 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. Most of the respondents prefer systematic investment
plans and got their source of information primarily from banks and financial advisors.
Investors preferred mutual funds mainly for professional fund management and better returns
and assessed funds mainly through Net Asset Values and past performance. Kothari and
Mindargi in their study analyzed the impact of different demographic variables on the
attitude of investors towards mutual funds. Apart from this, it also focuses on the benefits
delivered by mutual funds to investors. To this end, 200 respondents of Solapur City, having
different demographic profiles were surveyed. The study reveals that the majority of investors
have still not formed any attitude towards mutual fund investments. Dhimen et al in their
study focused on the consumer’s perception towards mutual fund as an investment option in
Valsad city from Gujarat. They revealed that Consumers perception were positive toward
investment in mutual funds. Singh and Jha conducted a study on awareness & acceptability
of mutual funds and found that consumers basically prefer mutual fund due to return
potential, liquidity and safety and they were not totally aware about the systematic investment
plan. The invertors’ will also consider various factors before investing in mutual fund.
Desiganet al conducted a study on women investors’ perception towards investment and
found that women investors’ basically are indecisive in investing in mutual funds due to
various reasons like lack of knowledge about the investment protection and their various
investment procedures, market fluctuations, various risks associated with investment,
assessment of investment and redressed of grievances regarding their various investment
related problems. Savings is a habit specially embodied into women. Even in the past, when
women mainly depended on their spouses’ income, they used to save to meet emergencies as
well as for future activities. In those days, women did not have any awareness about various
investment outlets. But as time passed, the scenario has totally changed. Ramamurthy and
Reddy conducted a study to analyze recent trends in the mutual fund industry and draw a
conclusion that the main benefits for small investors’ due to efficient management,
diversification of investment, easy administration, nice return potential, liquidity,
transparency, flexibility, affordability, wide range of choices and a proper regulation governed
by SEBI. The study also analyzed about recent trends in mutual fund industry like various
exit and entry policies of mutual fund companies, various schemes related to real estate,
commodity, bullion and precious metals, entering of banking sector in mutual fund, buying
and selling of mutual funds through online. Anand and Murugaiah had studied various
strategic issues related to the marketing of financial services. They found that recently this
type of industry requires new strategies to survive and for operation. For surviving they have
to adopt new marketing strategies and tactics that enable them to capture maximum
opportunities with the lowest risks in order to enable them to survive and meet the
competition from various market players globally.
VII. Data Analysis and Interpretation
As per investors point of view everyone wants their money should be safely invest by AMC
because of the saving which they have deposited are invested in various investment option
and most safest investment option they feel is the bank deposit because there is no fear of
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AEIJMR – Vol 6 – Issue 08 – August 2018 ISSN - 2348 - 6724
losing money at any point of time unless bank gets default and chances of it is very less so
most safest investment option investors feel are the bank deposit.
Table1: Option Selected by No. of Investors
Options No. of Investors
Mutual Fund 8
Stock Market 2
Bank Deposit 48
Others 2
Total 60
50
40
30
20
10
0
Mutual Fund Stock Market Bank Deposit Others
The Hypothesis was tested on 4 categories using chi 2 goodness of fit in IBM SPSS using
statistic software (See table 2).
Table 2: Chi-Square Test
Frequencies
Investment Preferences
Observed N Expected N Residual
Mutual Fund 8 15 -7
Stock
2
Market 15 -13
Bank
48
Deposits 15 33
Others 2 15 -13
60 15
Test Statistics
Investment Preference
Chi Square 98.4a
df 3
Asymp. Sig. 0
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As per this table we are rejecting the null hypothesis because of the expected frequencies less
than 0.05.
7.1. Null Hypothesis
As per the data collected most preferable AMC of investors are SBIMF because of the schemes
are good of SBIMF for getting investors to attract and invest in the scheme and next
preference is ICICI and could be the same reasons in choosing the AMC for the investment.
Table 3: AMC Selected by No. Investors
State that there is no significant difference in AMC preferences given by investors (See table 4)
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Table 4:
Investment Preference
Observed N Expected N Residual
SBIMF 24 10 14
UTI 2 10 -8
Reliance 8 10 -2
HDFC 6 10 -4
Kotak 6 10 -4
ICICI 14 10 4
Total 60
Investment Preference
Chi Square 31.2a
df 5
Asymp. Sig. 0.008
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 10.
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AEIJMR – Vol 6 – Issue 08 – August 2018 ISSN - 2348 - 6724
Figure 3: Awareness Level of No. of Investors
Partial knowledge
of mutual funds
43%
State that there is no significance level of difference in awareness among mutual fund
investors (see table 6).
Table 6:
Awareness
Observed N Expected N Residual
Totally ignorant 12 15 -3
Partial knowledge
of mutual funds 26 15 11
Aware only of any
specific scheme in
which you invested 12 15 -3
Fully aware 10 15 -5
60
Test Statistics
Investment Preference
Chi Square 10.93a
Df 3
Asymp. Sig. 0.141
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected
cell frequency is 15.
As per the test apply and result shown in the table we are accepting the null hypothesis
VIII. Conclusion
The objective which is set to study the investors view towards mutual fund as per the
sample size and test which is applied to the study. found that the investors are not choosing
or feeling confident in investing in mutual fund because they think that mutual fund is risky
than other investment option.
The awareness level of mutual fund among the investors are very low because of only
having the partial knowledge about the mutual fund which prevent them to invest in mutual
fund to avoid risk bearing factor and fear of losing money
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AEIJMR – Vol 6 – Issue 08 – August 2018 ISSN - 2348 - 6724
The most preference of the investors are the fixed deposit because they feel it is the safest
and returns are fixed and not having fear of losing the money
Apart from these found that there are investors facing various problems in selecting mutual
fund as an investment option because of share market uncertainties and risk associated with
it so investors avoid the investing in mutual fund
Mutual fund are link with share market and investors are not taking advice from expert
advisor to guide them for their investment in mutual fund so it creates the difficulty to select
the mutual fund scheme beneficial for them.
IX. Suggestions
There are some suggestions for better investing for investors that they should keep their
investment for long time keeping in mind the level of risk involves and saving pattern investors
first look over the risk factor because they are investing for the maximum returns. Once they
invested in mutual fund they need returns and if it is not giving proper returns to them again
it is affecting the interest of the investors to invest in MF.
To keep the interest of the investors in mutual fund the companies will play a vital role to
attract the investors to invest in mutual fund so for that companies should bring such plans
which is having very low risk
As per the study the investors wants safe returns on their investment and all investors
know the risk in share market and which is the main reason investors avoid to invest in
shares and equities or mutual fund because of the fear of losing the money
APPENDICES
QUESTIONNAIRE
NAME:-_________________________________________ DATE: - __________________
QUALIFICATION:-________________________________AGE: - ___________________
PROFESSION:-___________________________________ GENDER:-__________________
CONTACT NO._____________________________________
1. In this highly volatile market, do you think Mutual Funds are a destination for
Investments?
⃝ YES ⃝ NO
2. Are you interested in investing in Mutual fund?
⃝ YES ⃝ NO
3. Have you ever invested your money in mutual fund?
⃝ YES ⃝ NO
4. Are you satisfied with your Investment option?
⃝ YES ⃝ NO
5. While investing your money, which factor you prefer most? Any one
⃝Liquidity Low ⃝Risk High ⃝Return Company ⃝Reputation
6. Which investment do you feel more profitable?
⃝ Fixed deposit ⃝Mutual Fund ⃝Equities ⃝ others
7. Which among the following is the safest Investment option?
⃝ Mutual Funds ⃝ Stock Market ⃝ Bank Deposit ⃝Other
8. Which are the primary sources of your knowledge about Mutual Funds as an
investment option?
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Corresponding to your choices how would you rate their influence on your final Mutual
Fund purchase decision? 1 is the lowest and 5 is the highest rating
1 2 3 4 5
Television ⃝ ⃝ ⃝
Internet ⃝ ⃝ ⃝
Newspapers/Journals ⃝ ⃝ ⃝ ⃝
Friends/Relatives ⃝ ⃝ ⃝ ⃝
Sales Representative ⃝ ⃝ ⃝ ⃝
⃝Lack of Knowledge
⃝Others
10. How do you rate the risks associated with Mutual Funds?
⃝Brokers only
⃝Brokers/ sub-brokers
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⃝Other
12. Which AMC will you prefer to invest?
⃝SBIMF
⃝UTI
⃝Reliance
⃝HDFC
⃝Kotak
⃝ICICI
⃝JM Finance
⃝Other Specify
13. In which Mutual Fund you have invested?
⃝SBIMF
⃝UTI
⃝Reliance
⃝HDFC
⃝Kotak
⃝ICICI
⃝JM Finance
⃝Other Specify
14. Which mutual fund scheme have you used?
⃝Open-ended ⃝Close-ended
⃝Liquid fund ⃝ Mid-Cap
⃝Growth fund ⃝Regular Income fund
⃝Long Cap ⃝Sector fund
⃝Other
15. Which feature of the mutual funds allure you most?
⃝Diversification ⃝Better return and safety
⃝Reduction in risk and transaction cost
⃝Aware only of any specific scheme in which you invested
⃝Fully aware
⃝200000 to 500000
⃝500000 to 1000000
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AEIJMR – Vol 6 – Issue 08 – August 2018 ISSN - 2348 - 6724
⃝Above 1000000
18. What is your Total Investment Amount?
⃝20000 to 50000
⃝50001 to 100000
⃝100001 to 200000
⃝200001 to 400000
20. If Not Invested in Mutual Fund then Why? And where did you invest and why?
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
____________________________________________________________________________________________
__________________________________________________
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Pritam P. Kothari &Shivganga C. Mindargi (2013), ―A Study of Investors Attitude towards
Mutual Fund with special reference to Investors in Solapur City‖, International Journal of
Accounting and Financial Management Research (IJAFMR), Vol. 3, No. 2, Pp. 1–12.
DhimenJagdishbhaiJani, BhautikAlpeshkumar Patel & Rajeev V. Jain (2012), ―Consumer’s
Perception towards Mutual Funds as an Investment Option Specially Focused on Valsad City
Located in Gujarat‖, International Journal of Business Management & Research (IJBMR), Vol. 2,
No. 4, Pp. 59–66.
Singh, B. K., &Jha, A. K. (2009). An empirical study on awareness & acceptability of mutual
fund. 49-55, Regional Student’s Conference, ICWAI.
Desigan, G., Kalaiselvi, S., &Anusuya, L. (2006). Women Investors’ Perception Towards
Investment: An empirical Study.Indian Journal of Marketing. April.
Ramamurthy B. M., & Reddy, S. (2005). Recent Trends in Mutual Fund Industry. SCMS
Journal of Indian Management, 2, 69-76
Anand, S., &Murugaiah, V. (2004). Marketing of financial services: strategic issues. SCMS
Journal ofIndian Management, 18(2), 94-100
https://en.wikipedia.org/wiki/Mutual_funds_in_India
http://www.franklintempletonindia.com/en_IN/investor/investor-education/fund-
basics/how-mutual-funds-work
http://www.franklintempletonindia.com/en_IN/investor/investor-education/fund-
basics/mutual-fund-avantages
http://www.rediff.com/money/2007/apr/03mfseries.htm
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