TABLE OF CONTENTS

CHAPTER NO TITLE PAGE NO

ABSTRACT i
LIST OF TABLES ii
LIST OF CHARTS iii
1 INTRODUCTION 1
1.1 Mutual Fund 1
1.2 Opportunity 4
1.3 Challenges & Facing Mutual Fund 10
1.4 History of Mutual Fund 11
1.5 Advantage of Mutual Fund 12
1.6 Need of the Study 15
1.7 Scope of the study 15
1.8 Objective of the Study 15
1.9 Limitation of the Study 15
2 REVIEW OF LITERATURE 16
2.1 Review of Literature 16
3 RESEARCH AND METHODOLGY 35
3.1 Research Design 35
3.2 Sampling Techniques 35
3.3 Sources of Data 35
3.4 Structure of Questionnaires 36
3.5 Sample Size 36
3.6 Period of Study 36
3.7 Analytical Tools 36
4 DATA ANALYSIS AND INTERPRETATION 37
4.1 Percentage Analysis 37
4.2 Chi Square Analysis 58
4.3 Anova Analysis 59
5 FINDINGS SUGGESTIONS AND CONCLUSION 60
5.1 Findings 60
5.2 Suggestions 61
5.3 Conclusions 62
REFERENCES 63
APPENDIX-I (Questionnaire) 68
APPENDIX-II (Article) 73

i
 CHAPTER-1

INTRODUCTION

1.1 MUTUAL FUND

Mutual funds refer to funds which collect money from investors and put
this money in stocks, bonds and other securities to gain financial profit.
Persons whose money is used by the mutual fund manager to buy stocks,
bonds and other securities, get a percentage of the profit earned by the
mutual fund in return of their investments. In this way, the mutual fund offers
benefit to both parties. A mutual fund is a trust that pools the savings of a
number of investors who share a common financial goal. The money thus
collected is then invested in capital market instruments such as shares,
debentures and other securities. The income earned through these
investments and the capital appreciation realized is shared by its unit holders
in proportion to the number of units owned by them. Thus, a mutual fund is
the most suitable investment for the common man as it offers an opportunity
to invest in a diversified, professionally managed basket of securities at a
relatively low cost. The flow chart below describes broadly the working of a
mutual fund.

A mutual fund is a professionally managed type of collective investment

scheme that pools money from many investors and invests it in stocks,
bonds, short-term money market instruments, and/or other securities. The
mutual fund will have a fund manager that trades the pooled money on a
regular basis. Currently, the worldwide value of all mutual funds totals more
than $26 trillion.

The mutual fund organization earns profit by using people's money for
investment and the persons who invest in mutual fund acquire financial
profit without going into intensive analysis and research on bonds and
stocks. The work of stock and bond market analysis, market research and
market speculation is done by the mutual fund managers. The people who
invest in mutual funds are generally exposed to much lower risk compared to
those who directly invest in bonds and stocks. Mutual fund investment

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involves lower risk as the investment is diversified in to different bonds and
stocks. So, if at any time market value of one particular bond or value of the
stocks of any particular company drops, then the loss incurred by the mutual
fund can be offset by the market gain of any other bond or stocks.

Investment is a commitment of funds in real assets or financial assets.

Investment involves risk and gain. In the present dynamic global environment,
exploring investment avenues are of great relevance. Investment skills
developed over a period of time are considerably influenced by experience
and spadework carried out to arrive at conclusions. The success of an
investment activity depends on the knowledge and ability of investors to
invest, the right amount, in the right type of investment, at the right time. Real
assets, being tangible material things, are less liquid than financial assets.
Compared to financial assets, returns on real assets are more difficult to
measure accurately due to the absence of broad, ready, and active market.

Financial assets available to individual investors are manifold, having different

concomitant benefits to choose from. All financial investments are risky but
the degree of risk and return differ from each other. An investor has to use his
discretion, which is an art acquired by learning and practical experience. The
knowledge of financial investment and the art of its management are the basic
requirements for a successful investor. Investment also lies in its liquidity,
apart from risk and return on investment. Liquidity through easy marketability
of investments demands the existence of a well organized government
regulated financial system.

Financial system comprises of financial institutions, services, markets and

instruments, which are closely related and work in conjunction with each
other. The litany of new financial institutions and instruments developed in
recent years, with the ostensible objective of modernizing the financial sector,
is impressively long; mutual funds, discount and finance house of india,
money market mutual funds, certificate of deposit, commercial paper,
factoring and treasury bills.

Financial services through the network of elements (institutions, markets and

instruments) serve the needs of individuals, institutions and companies. It is

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through these elements, the functioning of the financial system is facilitated.
Financial services comprise of various functions and services that are
provided by financial institutions. Financial services are offered by both asset
management companies, which include leasing companies, mutual funds,
merchant bankers, issue managers, portfolio managers and liability
management companies comprising of bill discounting houses and
acceptance houses. Financial services lend a big hand in raising the required
funds and ensure its efficient deployment. Over the years, the financial
services in india have undergone revolutionary changes and had become
more sophisticated, in response to the varied needs of the economy.

The process of financial sector reforms, economic liberalization and

globalization of indian capital market had generated and augmented the
interest of the investors in equity. But, due to inadequate knowledge of the
capital market and lack of professional expertise, the common investors are
still hesitant to invest their hard earned money in the corporate securities. The
advent of mutual funds has helped in garnering the investible funds of this
category of investors in a significant way. As professional experts manage
mutual funds, investment in them relieves investors from the emotional stress
involved in buying and selling of securities.

Systematic Investment Plan:

Systematic investment plan is an approach to investing within managed

investments which involves investing a set of amount at regular intervals
rather than investing a larger lump sum amount in one shot. By investing this
way you are not attempting to capture the highs and lows of the market but
rather the cost of your investment is averaged over a period of time. The
essence of sips is that when the markets fall investors automatically acquire
more units. Likewise they acquire lesser units when the market rises. This
means that you buy less when the price is high whereas you buy more the
price is low. Hence the average cost per unit drops down over a period of
time. Mutual funds that invest in stock market related instruments cannot be
termed risk-free or safe as investment in shares are inherently risky by nature,
whereas funds that invest in fixed-income instruments are relatively safe and

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those that invest only in government securities are the safest. Systematic
investment plan (sip) is a smart financial planning tool that helps you to create
wealth, by investing small sums of money every month, over a period of time.
Systematic investment plan (sip) is a planned approach to investments and an
investment technique that allows you to provide for the future by investing
small amounts of money in mutual fund schemes of your choice

Types of mutual fund scheme

Mutual fund schemes can be classified into different categories depends on

their investment goals or their maturity time.mutual fund schemes can be
classified into three categories based on their maturity periods.

Open-ended funds:

An open-ended fund or scheme is one that is available for subscriptions and

redemptions on a continuous basis. Investors can willingly sell and buy units
at net asset value (nav) related prices which are declared on weekly bases.

Close-ended funds:

A close-ended fund or scheme has a variable maturity period which can range
from a few months to a few years, e.g., 6 months, 6 years or 10 years. I.e.,
fund is open for subscription only during a specified period at the time of
launch of the scheme.

1.2 OPPORTUNITY OF MUTUAL FUND

Opportunities of mutual funds are tremendous especially when investment is

concerned. For any individual who intends to allocate his assets into proper
forms of investment and want to diversify his investment portfolio as well as
the risks, mutual funds can be proved as the biggest opportunity. Investors
get a lot of advantages with the mutual fund investment. Firstly, they
are not required to carry on intensive research and detailed analysis on
stock market and bond market. This work is done by the fund managers of
the investment management company on behalf of the investors. In fact, the
professional fund managers who handle the mutual funds of any particular
company are able to speculate the market trend more correctly than any

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common individual.good speculation about the trends of stock prices and
bond prices leads to right allocation of funds in the right stocks and bonds
resulting in good rate of returns.

Investors also get the advantage of high liquidity of the mutual funds.
This means the investors can enjoy easy access to the funds invested
in the mutual funds whenever they require the money. When the investors
invest in any mutual fund, they are given some equity position in that fund.
The investors can any time sell their mutual fund shares to get back the
money invested in mutual funds. The only thing is that the rate of return that
they will get may not be favorable as the return depends on the present
market condition. The greatest opportunity that the mutual funds offer is the
opportunity of diversifying their investments.investment diversification actually
diversifies the risk associated with investment.this is because, if at a time, if
prices of some stocks are declining, decreasing the value of investment,
prices of some other stocks and bonds may tend to rise and in this way the
loss of the mutual fund is offset by the strength of the stocks whose prices are
raising. As all the mutual funds diversify their investments in various common
stocks, preferred stocks and different bonds, the risk to be borne by the
investors are well diversified and in other terms lowered.

1.2.1 MUTUAL FUND CONSTITUENTS:-

Sponsors:

The sponsors initiate the idea to set up a mutual fund. It could be a registered
company, scheduled bank or financial institution. A sponsor has to satisfy
certain conditions, such as capital, record (at least five years’ operation in
financial services), and de-fault free dealings and general reputation of
fairness. The sponsors appoint the trustee, amc and custodian. Once the amc
is formed, the sponsor is just a stakeholder.

Trust/ Board of Trustees:

Trustees hold a fiduciary responsibility towards unit holders by protecting their

interests.Trustee floated and market schemes, and secure necessary
approvals. They check if the AMC’s investments are within well-defined limits,

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whether the fund’s assets are protected, and also ensure that unit holders get
their due returns. They also review any due diligence by the AMC. For major
decisions concerning the fund, they have to take the unit holder’s consent.
They submit reports every six months to

SEBI: Investors get an annual report. Trustees are paid annually out of the
fund’s assets -0.5 percent of the weekly net asset value.

Fund Managers/ AMC:

They are the ones who manage money of the investors. An AMC takes
decisions, compensates investors through dividends, maintains proper
accounting and information for pricing of units, calculates the NAV, and
provides information on listed schemes. It also exercises due diligence on
investments, and submits quarterly reports to the trustees. A fund’s AMC can
neither act for any other fund nor undertake any business other than asset
management. Its net worth should not fall below Rs. 10 crore. And, its fee
should not exceed 1.25 percent if collections are below Rs. 100 crore and 1
percent if collections are above Rs. 100 crore. SEBI can pull up an AMC if it
deviates from its prescribed role.

Custodian:

Often an independent organization, it takes custody of securities and other

assets of mutual fund. Its responsibilities include receipt and delivery of
securities, collecting income distributing dividends, safekeeping of the units
and segregating assets and settlements between schemes. Their charges
range between 0.15-0.2 percent of the net value of the holding. Custodians
can service more than one fund.

1.2.2 MARKETING STRATEGIES ADOPTED BY THE MUTUAL FUNDS

The present marketing strategies of mutual funds can be divided into three
main headings:

 Direct marketing

 Selling through intermediaries.

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  Joint Calls

Direct Marketing:

This constitutes 20 percent of the total sales of mutual funds. Some of the
important tools used in this type of selling are:

Personal Selling:

In this case the customer support officer or Relationship Manager of the fund
at a particular branch takes appointment from the potential prospect. Once the
appointment is fixed, the branch officer also called Business Development
Associate (BDA) in some funds then meets the prospect and gives him all
details about the various schemes being offered by his fund. The conversion
rate in this mode of selling is in between 30% - 40%.

Telemarketing:

In this case the emphasis is to inform the people about the fund. The names
and phone numbers of the people are picked at random from telephone
directory. Some fund houses have their database of investors and they cross
sell their other products. Sometimes people belonging to a particular
profession are also contacted through phone and are then informed about the
fund. Generally the conversion rate in this form of marketing is 15% - 20%.

Direct mail:

This one of the most common method followed by all mutual funds.
Addresses of people are picked at random from telephone directory, business
directory, professional directory etc. The customer support officer (cso) then
mails the literature of the schemes offered by the fund. The follow up starts
after 3 to 4 days of mailing the literature. The cso calls on the people to whom
the literature was mailed. Answers their queries and is generally successful in
taking appointments with those people. It is then the job of bda to try his best
to convert that prospect into a customer.

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Advertisements in newspapers and magazines:

The funds regularly advertise in business newspapers and magazines

besides in leading national dailies. the purpose to keep investors aware about
the schemes offered by the fund and their performance in recent past.
Advertisement in tv/fm channel: the funds are aggressively giving their
advertisements in tv and fm channels to promote their funds.

Hoardings and Banners:

In this case the hoardings and banners of the fund are put at important
locations of the city where the movement of the people is very high. The
hoarding and banner generally contain information either about one particular
scheme or brief information about all schemes of fund.

Selling through intermediaries:

Intermediaries contribute towards 80% of the total sales of mutual funds.

These are the people/ distributors who are in direct touch with the investors.
They perform an important role in attracting new customers. Most of these
intermediaries are also involved in selling shares and other investment
instruments. They do a commendable job in convincing investors to invest in
mutual funds. A lot depends on the after-sale services offered by the
intermediary to the customer. Customers prefer to work with those
intermediaries who give them right information about the fund and keep them
abreast with the latest changes taking place in the market especially if they
have any bearing on the fund in which they have invested.

Regular Meetings with distributors:

Most of the funds conduct monthly/bi-monthly meetings with their distributors.

The objective is to hear their complaints regarding service aspects from funds
side and other queries related to the market situation. Sometimes, special
training programmers are also conducted for the new agents/ distributors.
Training involves giving details about the products of the fund, their present
performance in the market, what the competitors are doing and what they can
do to increase the sales of the fund

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Joint Calls:

This is generally done when the prospect seems to be a highnetworth

investor. The BDA and the agent (who is located close to the residence or
area of operation) together visit the prospect and brief him about the fund.
The conversion rate is very high in this situation, generally, around 60%. Both
the fund and the agent provide even after sale services in this particular case.

The most important trend in the mutual fund industry is the aggressive
explosion of the foreign owned mutual funds companies and the decline of the
companies floated by nationalized banks and small private sector players.
Many nationalized banks got into the mutual funds business in the early
nineties and got off to a good start due to the stock market boom prevailing
then.

These banks did not really understand the mutual funds business and they
viewed it as another kind of banking activity. Few hired specialized staff and
generally chose to transfer staff from parent organizations. The performance
of most of the schemes floated by these organizations was not good. Some
schemes had offered guaranteed returns and their parent organizations had
to bail out these AMC by paying large amount of money as the difference
between the guaranteed and actual returns. The service levels were also very
bad.

Most of these AMC have not been able to retain staff, float new schemes etc.
And it is doubtful whether, barring a few exceptions, they have serious plans
of continuing the activity in a major way. The experience of some of the AMC
floated by the private sector Indian companies was also very similar. They
quickly realized that the AMC business is a business, which makes money in
the long term and requires deep- pocketed support in the intermediate years.
Some have sold out to foreign owned companies; some have merged with
others and there is a general restructuring going on. The foreign owned
companies have deep pockets and have come here with the expectations of a
long haul. They can be credited with the introduction of many new practices
such as new product innovation, sharp improvement in the service standards
and disclosure, usage of technology, broker education and support etc. In

9
fact, they have forced the industry to upgrade itself and its service level of
organization.

1.3 CHALLENGES FACING MUTUAL FUND

People find mutual fund investment so much interesting because they think
they can gain high rate of return by diversifying their investment and risk. But,
in reality this scope of high rate of returns is just one side of the coin. On the
other side, there is the harsh reality of highly Fluctuating Rate of Returns.
Though there are other disadvantages also, this concern of fluctuating returns
is most possibly the greatest challenge faced by the mutual fund.

1.3.1 The Issue of Fluctuating Returns

In spite of being a diversified investment solution, mutual funds investment in

no way guarantees any return. If the market prices of major shares and bonds
fall, then the value of mutual fund shares are sure to go down, no matter how
diversified the mutual fund portfolio be. It can be said that mutual fund
investment is somewhat lower risky than Direct Investment in stocks. But,
every time a person invests in mutual fund, he unavoidably carries the risk of
losing money.

Diversification or Over Diversification

In order to diversify the investment, many times the mutual fund companies
get involved in over diversification. The risk of holding a single financial
security is removed by diversification. But, in case of over diversification,
investors diversify so much that many times they end up with investing in
funds that are highly related and thus the benefit of risk diversification is ruled
out.

Taxes

Every year, most of the mutual funds sell substantial amount of their holdings.
If they earn profit by this sell, then the investors receive the profit income. For
most of the mutual funds, the investors are bound to pay taxes on these
incomes, even if they reinvest the income.

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Costs

Most of the mutual funds charge shareholder fees and fund operating fees
from the investors. In the year, in which mutual fund fails to make profit and
the investors get no return, these fees only blow up the losses.

1.4 HISTORY OF MUTUAL FUND IN INDIA

First Phase-1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It

was set up by the Reserve Bank of India and functioned under the Regulatory
and administrative control of the Reserve Bank of India. In 1978 UTI was de-
linked from the RBI and the Industrial Development Bank of India (IDBI) took
over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6, 700 crores of assets under management.

Second Phase-1987-1993 (Entry of Public Sector Funds)

Entry of non-uti mutual funds. Sbi mutual fund was the first followed by can
bank mutual fund (dec 87), punjab national bank mutual fund (aug 89), indian
bank mutual fund (nov 89), bank of india (jun 90), bank of baroda mutual fund
(oct 92). Lic in 1989 and gic in 1990. The end of 1993 marked rs.47, 004 as
assets under management.

Third Phase-1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the indian
mutual fund industry, giving the indian investors a wider choice of fund
families. Also, 1993 was the year in which the first mutual fund regulations
came into being, under which all mutual funds, except uti were to be
registered and governed. The erstwhile kothari pioneer (now merged with
franklin templeton) was the first private sector mutual fund registered in july
1993.

The 1993 sebi (mutual fund) regulations were substituted by a more

comprehensive and revised mutual fund regulations in 1996. The industry

11
now functions under the sebi (mutual fund) regulations 1996. The number of
mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in india and also the industry has witnessed several mergers
and acquisitions. As at the end of january 2003, there were 33 mutual funds
with total assets of rs. 1, 21,805 crores. The unit trust of india with rs.44, 541
crores of assets under management was way ahead of other mutual funds.

Fourth Phase -since February 2003

In february 2003, following the repeal of the unit trust of india act 1963 uti was
bifurcated into two separate entities. One is the specified undertaking of the
unit trust of india with assets under management of rs.29, 835 crores as at the
end of january 2003, representing broadly, the assets of us 64 scheme,
assured return and certain other schemes. The specified undertaking of unit
trust of india, functioning under an administrator and under the rules framed
by government of india and does not come under the purview of the mutual
fund regulations.

The second is the uti mutual fund ltd, sponsored by sbi, pnb, bob and lic. It is
registered with sebi and functions under the mutual fund regulations. With the
bifurcation of the erstwhile uti which had in march 2000 more than rs.76, 000
crores of assets under management and with the setting up of a uti mutual
fund, conforming to the sebi mutual fund regulations, and with recent mergers
taking place among different private sector funds, the mutual fund industry
has entered its current phase of consolidation and growth. As at the end of
september 2004, there were 29 funds, which manage assets of rs.153108
crores under 421 schemes.

1.5 Advantages of Mutual Funds:-

Professional Management: the primary advantage of funds (at least

theoretically) is the professional management of money. Investors purchase
funds because they do not have the time or the expertise to manage their own
portfolio. A mutual fund is a relatively inexpensive way for a small investor to
get a full-time manager to make and monitor investments.

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Diversification: by owning shares in a mutual fund instead of owning
individual stocks or bonds, risk is spread out. The idea behind diversification
is to invest in a large number of assets so that a loss in any particular
investment is minimized by gains in others. In other words, the more stocks
and bonds an individual own, the less any one of them can hurt.

Economies of scale: because a mutual fund buys and sells large amounts of
securities at a time, its transaction costs are lower than as an individual would
pay.

Liquidity: just like an individual stock, a mutual fund allows in converting

shares into cash at any time.

Simplicity: buying a mutual fund is easy. When an investor invests in the

mutual fund then they need to take form, fill it according to required
instructions given and give the demand draft or cheque of amount whatever
they want to invest.

Reduced risk: as mutual funds invests in large number of companies and are
managed professionally, the risk factor of the investor is reduced. A small
investor, on the other hand, may not be in position to minimize the risk.

tax advan tage: there are certain schemes of mutual fund which provide tax
advantage under income tax act. Thus, tax liability of investor also reduced
when he invests in mutual fund schemes.

Low operating cost: mutual fund has large number of investible funds at
their disposal and thus can avail the large scale of economies. This reduces
their operating cost by way of brokerage, fees, commission etc. Thus, an
investor can also get the benefits of large scale of economies and low
operating cost.

1.5.1 DISADVANTAGES OF MUTUAL FUNDS:-

Professional management -many investors debate over whether or not the

so-called professionals are any better than an individual or others at picking
stocks. Management is by no means infallible, and, even if the fund loses
money, the manager still takes his/her cut.

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Costs: the mutual fund industry is masterful at burying costs under layers of
jargon. These costs are so complicated that in this tutorial we have devoted
an entire section to the subject.

Dilution: because funds have smallholdings in so many different companies,

high returns from a few investments. Often don't make much difference on the
overall return. Dilution is also the result of a successful fund getting too big.
When money pours into funds that have had strong success, the manager
often has trouble finding a good investment for all the new money.

1.5.2 ADVANTAGES OF INVESTING INTO A MUTUAL FUND: -

Flexibility: mutual fund investments also offer a lot of flexibility with features
such as systematic investment plans, systematic withdrawal plans & dividend
reinvestment.

Affordability: they are available in units so this makes it very affordable.

Because of the large corpus, even a small investor can benefit from its
investment strategy.

Liquidity: in open-ended schemes, there is an option of withdrawing or

redeeming money.

Diversification: risk is lowered with mutual funds as they invest across

different industries & stocks.

Professional management: expert fund managers of the mutual fund

analyze all options based on experience & research.

Potential of return: the fund managers who take care of mutual fund have
access to information and statistics from leading economists and analysts
around the world. Because of this, they are in a better position than individual
investors to identify opportunities for investments to flourish.

Low costs: the benefits of scale in brokerage, custodial and other fees
translate into lower costs for investors. Regulated for investor protection - the
mutual funds sector is regulated to safeguard the investor's interests

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1.6 NEED OF THE STUDY

 The main purpose of this study is to analyses the investors perception

towards mutual fund

 Further, the study also understand problem faced by the investor and
motivating factor to reinvest in mutual fund

1.7 SCOPE OF STUDY

 To get a better understanding of how investors feel about mutual funds

 Define and analyze the investor's shaping and motivating factors
 The analysis measure of the investor's experience
 Define and examine the investor's shaping and motivating factors

1.8 OBJECTIVES OF THE STUDY

 To study the investor perception towards mutual fund.

 To understand the factor influencing the investor while making

decision.

 To examine the level of satisfaction of the investor.

 To identify the problem faced by mutual fund investor.

1.9 LIMITATION OF THE STUDY

 The analysis of the present study has been carried out based on the
information given by the investor.

 The research was limited to Vellore district and due to time constrict
only 105 numbers of respondents were considered.

 The result fully depends on information given by the investor which

may be based.

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 CHAPTER-2

2.1 REVIWE OF LITERATURE

Dr. Nishi Sharma (2012) The concept of mutual fund emerged in Netherlands
in 18th century and introduced in India by unit trust of India in1960s. As the
mutual fund industry provides an option of diversified investment structure
with varying degree of risk, it was supposed to be the most lucrative market
for Indian investors. It was believed that it will surely tap the savings of
common man. But in practice it failed to become a primary choice for
investment to Indian investor. During almost six decades (1965-2011) the
value of assets under management of mutual fund industry experienced great
swings. As against the developed countries where almost every second
investor is a mutual unit holder, the product could not get much popularity in
India. In this reference, the present paper attempts to investigate the reasons
responsible for lesser recognition of mutual fund as a prime investment
option. It examines the investor’s perception with reference to distinct features
provided by mutual fund companies to attract them for investing in specific
funds/schemes. The study uses principal component analysis as a tool for
factor reduction. The paper explored three factors named as fund/scheme
related attributes, monetary benefits and sponsor’s related attributes (having
respectively six, four and four variables) which may be offered to investors for
securing their patronage. The results are expected to provide fruitful insight to
mutual fund companies for tailoring their offers suitable to cater the needs and
expectations of Indian investors.

Simran Saini; Dr.Bimalanju Anjum (2011) Indian mutual fund has gained a
lot of popularity from the past few years. Earlier only UTI enjoyed the
monopoly in this industry but with the passage of time many new players
entered the market, due to which the UTI monopoly breaks down and the
industry faces a severe competition. As the time passes this industry has
become a buzz word in the Indian financial system. So, it is very important to
know the investors’ perception about this industry. The present study
analyses the mutual fund investments in relation to investor’s behavior.
Investors’ opinion and perception has been studied relating to various issues

16
like type of mutual fund scheme, main objective behind investing in mutual
fund scheme, role of financial advisors and brokers, investors’ opinion relating
to factors that attract them to invest in mutual funds, sources of information,
deficiencies in the services provided by the mutual fund managers, challenges
before the Indian mutual fund industry etc.

Arathy B, Aswathy A Nair, Anju Sai P ,Pravitha N R (2015) 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. 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 adverse investors. This project aims at finding
out the factors affecting investment decision on mutual funds and its
preference over retail investors. This project also aims at finding about the
factors that prevent the people to invest in mutual funds. The findings will help
mutual fund companies to identify the areas required for improvement and
can also improve their marketing strategies. It will help the mf companies to
create new and innovative product according to the orientation of investors

Vipin Kumar, Preeti Bansal, India (2014) The mutual fund sectors are one
of the fastest growing sectors in Indian economy and have awesome potential
for sustained future growth. Mutual funds make saving and investing simple,
accessible,and affordable. The advantages of mutual funds include
professional management, diversification, variety, liquidity, affordability,
convenience, and ease of recordkeeping as well as strict government
regulation and full disclosure. Financial markets are becoming more extensive
with wide-ranging financial products trying innovations in designing mutual
funds portfolio but these changes need unification in correspondence with
investor’s expectations. Thus, it has become imperative to study mutual funds
from a different angle, which is to focus on investor’s perception and
expectations. This research paper focused attention on number of factors that
highlights investors’ perception about mutual funds. It was found that mutual
funds were not that much known to investors, still investor rely upon bank and
post office deposits, most of the investor used to invest in mutual fund for not

17
more than 3 years and they used to quit from the fund which were not giving
desired results. Equity option and sip mode of investment were on top priority
in investors’ list. It was also found that maximum number of investors did not
analyze risk in their investment and they were depending upon their broker
and agent for this work.

Inderjit Kaur, K.P. Kaushik (2016) Mutual funds in India have not been as
favorable investment alternatives as in developed countries, as assets under
management of mutual funds to gross domestic product in India have been 7-
8 per cent compared to 37 per cent globally. Further, investor base of mutual
funds has been narrow, as retail investors constitute 98 per cent of folios but
contributed only 58 per cent of investments in September 2014. To broaden
the investor base for mutual funds in India, it remains imperative to
understand the determinants of investment behavior of investors towards
mutual funds. This study aims to achieve this objective. The research
provided that investment behavior could be explained with awareness,
perception and socioeconomic characteristics of individual investors. Better
awareness related to various aspects of mutual funds will have a positive
effect on investment in mutual funds. Contrary to belief, risk perception for
mutual funds had no effect on the investment decision. Further,
socioeconomic characteristics such as age, gender, occupation, income and
education of investors had an impact on the awareness about mutual funds.

Sharma; Parihar (2013) the mutual fund industry is a fast-growing sector of

the Indian financial markets. They have become major vehicle for mobilization
of savings, especially from the small and household savers for investment in
the capital market. Mutual funds entered the Indian capital market in 1964
with a view to provide the retail investors the benefit of diversification of risk,
assured returns, and professional management. Every type of investment,
including mutual funds, involves risk. Risk refers to the possibility that
investors will lose money (both principal and any earnings) or fail to make
money on an investment.

G.Velmurugan, V. Selvam, N. Abdul Nazar (2015) The economic

liberalization and globalization have brought a fervent environment for the

18
common and small investors who are willing to participate in the various
investment avenues available in india. There are large number of small
investors, who have the ability to save and make an investment in share
market, gold, real estate, insurance and post office. In recent years, numerous
researches have been conducted on investors’ perception towards various
investments from various perspectives. From a survey on investment
literatures of equity, insurance, and mutual fund perspective, there are some
studies based on the investment on various avenues made by researchers.
However, the investors’ perception towards various investment avenues in
Vellore city, Tamil Nadu and India is yet to be explored.

Dr.V.Sridevi (2019) a mutual fund is an investment medium that pools funds

from various investors and invests the funds in stocks, bonds, short-term
money-market instruments, other securities or assets or some combination of
these investments. The primary goal behind investment in mutual fund is to
earn goods return with comparatively low risk. The main objective of the study
is to examine the investor’s behavior towards mutual fund investment. A
sample of 150 individual investors has been selected for this purpose.
Statistical tools like percentage analysis, chi-square test and garret ranking
technique were used to analysis the collected data. It can be concluded that
the Indian mutual fund industry is growing at a good pace

Martin Mysa (2020) a mutual fund is an investment instrument that brings

funds from different buyers and facilitates in investing the funds in bonds,
short-term money-market instruments, stocks and other securities or assets
are few combinations of investments. The primary goal behind investment in
mutual fund is to earn goods return with comparatively low risk. The main
objective of this research is to identify buyers’ preference towards mutual fund
in secunderabad metropolitan city. By using in structured questionnaire,
description statistical tools like chi-square test have been used for analyzing
the data. The findings from this research are that the most of the buyers are
doubtful to invest the new age investment like mutual funds.

Mr.K.Sasikumar, Dr.K.Krishnamurthy (2020) This research aims to study

retail investors’ preferences towards mutual funds. India is one of the fastest

19
growing economies in the world with rising incomes, but also savings and
investments. The main sector of emerging financial markets is investment in
mutual funds. The mutual fund sector plays a key role in the development of
financial markets, business sector and growth of financial intermediaries. The
regulatory measures to develop mutual fund industry and to protect the
interests of mf investors are also important. This study required to examine
theoretical aspects of indian mutual fund industry and retail investor’s
preferences towards investment.

Dr. Anita Raman, Mrs. N. Sakthi Selvarohin (2020) An efficient financial

sector mobilizes savings and allocates it to those investments which yield the
highest rate of return. Savings are the difference between income and
consumption of an individual. An increase in the volume of real domestic
savings means that resources that would have been used for consumption
are released for investment. India has high level of saving rate because of
high level of saving motives of individuals. Every individual seems to
understand the basic principle of investment. Investment means the purchase
made by an individual of a financial or real asset that produces a return
proportion to the risk assumed over some future investment period and for
achieving this investor decides on how and where to deploy his/her saving.
Saving motive is thus, a desire to reserve certain mixture of income for future.
The main objective of investor is to invest in different speculation avenues that
deliver expected returns and help to chance the risk in future. The investor
has some motive for making an investment. The salaried employee category
of investor however gives more importance to create more stand-in savings to
meet the risk in future. The present study aims to determine and identify
investor’s preference relating to making an investment in public and private
sector mutual funds. It further analyses the investor’s satisfaction level of an
investment in public and private sector mutual funds. Hence, the study
establishes the responsiveness of the investors towards investing in mutual
funds

L. Meena (2016) Mutual funds are the pooling of resources from larger small
investors and then making it a big corpus to invest in stock market by
professionals. In spite of umpteen efforts by regulators (sebi, amfi) and by

20
investment advisory firms, mutual funds have reached merely 5% of indian
population. Since there exist enormous untapped market, this paper brings
forth how rural investors perceive the various marketing strategies devised
and implemented by investment advisory firms. This paper determines the
rural investors in Madurai city towards the three broader marketing strategies
by mutual funds viz. Direct selling, selling through intermediaries and joint
calls. It was recommended that a new team of trained sales personnel need to
be deployed to the rural areas and the code of conduct for them are to be
tightened to prevent those misguiding illiterate rural investors for commission
motive.

Dr. Meenakshi Bindal, Dr. Bhuwan Gupta, Sweety Dubey (2019) This
examination on investor’s acknowledgment towards and late improvement
and headway of mutual fund premiums in Alwar city goes under the board an
area of organization publicizing. In the wide thought of organization
publicizing, it exclusively centers on the exhibiting of cash related organization
specifically basic resources. Well-ordered Indian budgetary market is getting
the chance to be engaged and the supply of various fiscal instruments ought
to be in parity to the premium perspectives of the monetary authorities. The
prime drive of any hypothesis is to get most extraordinary returned with a
base danger and normal resources allow to the budgetary masters.

Bhavik U. Swadias.M.Patel (2014) Dynamic liberalization of monetary

policies, there has been a quick development of capital business sector,
currency market and money related service industry including banking, renting
and funding. Steady with this development of the financial related sector, the
mutual fund industry has likewise come to involve a critical spot. To address
these needs of the populace new financials investment schemes like mutual
fund and organizations like asset Management Company are gone for
expanding the scope of venture streets. Investing in mutual fund is the most
suitable venture for the middle-income investor as it offers a chance to put
resources into a differentiated, professionally oversaw the bucket of securities
at a low cost of investment.

21
K.Alamelu, Dr.G.Indhumathi(2017) Mutual funds are most suitable
investment for a common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low
cost. The diversification of schemes provides variety of options to suit the
individual objectives according to their age, financial position, risk tolerance
and return expectations. In the past few years, we had seen a dramatic
growth of the indian mutual fund industry with many private players bringing
global expertise to the industry. Investment in mutual funds is affected by the
perception of the investors. The objectives of the study are to identify the
investor's perception on mutual funds and to analyze the factors affecting
investors' perception towards mutual funds by using 200 convenience
samples in madurai district, tamil nadu. The study found in madurai district is
that mostly the lower net worth individuals has positive approach towards
investing in mutual funds.

Dr. V.k. Punithavathi (2018) The mutual fund is a collective savings scheme.
Mutual funds played an important role in mobilizing the savings of small
investors and channelized the same for productive ventures in the indian
economy. This study has analyzed the perception of the investor towards the
mutual fund, the reason for preferring mutual fund investment.

Chaitras.B, Suman Chakra Borty (2020) Behavioral finance combines

psychology with financial theory to comprehend the associations between
markets, emotions, personality and reason. Nowadays the financial services
sector has turn out to be extremely diversified offering the investor with a
widespread variety of investment opportunities. Investors have dissimilar
outlook when they decide about investing in a specific avenue. With proper
investment strategies and financial planning investor can increase personal
wealth which will contribute to higher economic growth. Economic growth is
among the most vital factors affecting the quality of life that people lead in a
country. Three variables that measure the growth of an economy are income,
saving and investment. In this paper miscellaneous literature prevailing
worldwide has been investigated to diagnose the investor’s behavior.
Dr. Rajesh Kumar, Iinitin Goel (2014) It has become important to study
mutual funds from a different angle, which is to emphasis on investor’s

22
perception. This research paper attempts to focus attention on the influence of
various factors influencing investors’ perception towards mutual funds. A
survey was conducted and data was collected by applying convenience
method of sampling. Statistical tools like “chi-square test” and “correlation”
were applied to analyze the data. The results of chi-square test revealed an
association amongst the demographic variables like gender and monthly
income with factors like tax benefit and liquidity influencing the investment in
mutual funds. The correlation test also revealed that there is a significant
relationship amongst the various factors which influence the investor’s
perception towards performance of mutual fund.

S Sampath Kumar (2019) Mutual funds are most appropriate investment for
an investor as it offers a chance to invest in a diversified, professionally
managed basket of securities at a reasonably low cost. It has become
important to study mutual funds from a different angle, which is to emphasis
on investor’s perception. This research paper attempts to focus attention on
the influence of various factors influencing investors’ perception towards
mutual funds. A survey was conducted and data was collected by applying
convenience method of sampling. Statistical tools like “chi-square test” and
“correlation” were applied to analyze the data. The results of chi-square test
revealed an association amongst the demographic variables like gender and
monthly income with factors like tax benefit and liquidity influencing the
investment in mutual funds. The correlation test also revealed that there is a
significant relationship amongst the various factors which influence the
investor’s perception towards performance of mutual fund.

P.Tamilselvan and Dr.R.Mohanraj (2018) Financial markets are continually

becoming more efficient by providing more potential solutions to the investors.
Although mutual funds industry is vastly growing in the economy, they do face
difficulties in differentiating their products to sudden changes in the economy.
Thus, it becomes crucial to understand and analyze investor’s perception and
expectations, and disclose certain extremely valuable information to support
financial decision making of mutual funds. Financial markets are becoming
more exhaustive with financial products seeking new innovations and to some
extent innovations are also visible in designing mutual funds portfolio but

23
these changes need alignment in accordance with investor’s expectations.
Thus, it has become crucial to study mutual funds from a different angle, i.e.,
to focus on investor’s attitude towards mutual fund investment that account for
their dissatisfaction. Present research proposes to identify the investor
attitude towards mutual fund investment.

M.Samira (2018) In this paper an attempt was made understand the investor
preference towards mutual funds. The study has been conducted on the basis
of primary data and secondary data. Majority of respondents feel that mutual
fund they invested on the recommendations and advise of the financial
advisors and banks. Data was collected using questionnaire, the most
common tool to evaluate the customers‟ awareness. The sample unit of the
study is people living in the city of Salem.

Dr. S. Sudha Christy Joy and Dr. V. Ganeshkumar (2020) Mutual funds
play an important role in mobilizing savings of millions of investors across the
country. In mutual funds, savings of small investors are mobilized, invested
and returns are distributed in the same proportion to the unit holders. Now-a-
days bank rates have become very low so, keeping large amount of money in
bank does not give higher returns. People can invest in stock market. But a
common investor is not well informed about the complexities involved in stock
market movements. Here mutual funds play an important role in helping
common public to get higher returns. A small investor is not safe in share
market. In mutual industry there is no such risk. Mutual funds help to reduce
the risk of investing in stocks by spreading or diversifying investments. Small
investors enjoy the benefit of diversification

R. Ganapathi (2015) The mutual fund industry in India has registered

significant growth since the liberalization of Indian economy in 1991 and has
emerged as a significant financial intermediary. The growing importance of
Indian mutual funds may be noted in terms of the increased mobilization of
funds and the increasing number of schemes and investors in the industry.
Therefore, the investors have to consider the prevailing rate of risk-free
returns and to compare the fund returns with it. Based on this the selection of
schemes and the choice of investment avenues can be decided. Due to the

24
fund manager’s poor risk bearing capacity, timing skill, stock selection ability,
and imperfect diversification the schemes had suffered with low return. Hence
to increase the fund return the concerned fund managers have to improve all
these skills.

Dr. M. Raja, Jagadeeswaran B (2020) Mutual fund is a trust that pools the
small savings of a number of small and medium investors. The fund collected
through the various schemes is invested in different types of securities under
the supervision of expert fund manager. Small and medium investors are
participating in the capital market without assuming a very high degree of risk.
The findings of the study proved that the mutual fund companies should
disclose the important information’s like return performance of the scheme,
risk of the scheme, number of assets in the funds and reputation brand name
of the fund on their prospectors.

Raja Rehan, Saba Naz, Imran Umer, Omais Ahmed (2018) In today’s
volatile financial world mutual funds provide professionally managed, safe and
less risky option for investment to the investors, that’s why throughout the
world mutual funds are an attractive and most invested option of investment.
But in pakistan mutual funds are a relatively new market, less research and
less known option by the investors. Therefore, the main purpose of this
research project is to analyze different demographic factors that impact an
investor’s awareness level towards mutual funds and to analyze different
factors that shape the investor’s perception and their inclination of investment
in mutual funds.

Dr.E. Selvarathinam (2019) The objectives of the study are to identify the
investor’s attitude on mutual funds and to analyze the factors affecting
investor’s attitude towards mutual fund. The study aims at finding out the
attitude of the small investors towards investment in mutual funds in selected
study area, by adopting random sampling for 100 respondents, simple
statistical tools are used for analyzing the data whatsoever collected in this
study. The present investigation outlined that the investors have positive
approach towards investing in mutual funds. The investors opt mutual fund for
safety and investors collect the information from expert advisors then only

25
invest the money. Mainly investors select the income, growth and equity fund
for their investment in mutual fund.

M. Karthikeyan, S. Karthik & S. Muthupandi (2018) The mutual fund has

developed as an instrument for guaranteeing one's money related to
prosperity. The widespread information and awareness about mutual fund is
rising, an ever-increasing number of individuals are appreciating the
advantages of putting resources into mutual funds. This exploration presents
the customer perception on mutual funds, the type of scheme they inclined,
the plans they are picking, the explanations for such choices and furthermore,
this examination managed mutual funds, which individuals lean toward
alongside apart from mutual funds. As like as postal saving schemes, rd
(recurring deposits), bonds and shares. The findings from this study are that
the vast majority of the general population is reluctant in going for new age
investments like mutual funds and want to turn away investment risks by
putting resources into less risky choices recurring deposits and alike.

Mansi Yadav (2018) The mutual fund industry witnessed a boom and found
its place on the shelf of the retail financial products in the year 2017. Surge of
mutual fund inflows during the previous year was majorly attributable to the
massive campaign launched by the association of mutual funds in India .this
paper intends to study the investor perception with regards to mutual funds
with special reference to the city of Kanpur. The study will be based on
primary data which will be conducted through a survey in order to assess the
level of awareness of customers with regard to mutual funds, the reasons
behind investing in the same and their pattern of investments and the impact
of campaign on the investments of the investors.

Gaura Nautiyal (2017) India is one of the few countries in the world which,
according to the world bank, has a household savings rate that is greater than
30%. Despite this, investment options such as mutual funds and equity
instruments have a very low penetration rate, especially among rural
households. Although a rapid increase in mutual fund investments has been
witnessed over the last few years, with an increase of 38.47% from march
2016 to march 2017 having been declared by amfi, much can be done in this

26
area. Mutual funds can be a good way of initiating new investors to financial
investment securities and the capital market. The objective of this study is to
determine whether an association exists between gender and the various
attributes of perception towards mutual fund investments. Findings of this
study can help companies design better product offerings in order to improve
the penetration rate of mutual fund investments.

Mr.s.balamurugan, dr.k. Soundararajan (2020) the mutual fund sectors are

one of the fastest growing sectors in indian economy and have awesome
potential for sustained future growth. Mutual funds make saving and investing
simple, accessible and affordable. The advantages of mutual funds include
professional management, diversification, variety, liquidity, affordability,
convenience and ease of recordkeeping, as well as strict government
regulation and full disclosure. Financial markets are becoming more extensive
with wide-ranging financial products trying innovations in designing mutual
funds portfolio but these changes need unification in correspondence with
investor’s expectations. Thus, it has become imperative to study mutual funds
from a different angle, which is to focus on investor’s perception and
expectations.

Rakesh Kumar C. Patel, Dr. Rekha Samar, Dr. Mahendra Meisuriya (2020)
In India, there are various investment avenues available for investors to invest
and earn profitable return. Among the others financial products, investment in
mutual fund ensures the minimum risks and maximum return to the investors.
The need and scope of the mutual fund operation has increased as the
emphasis is being made on increase in domestic savings and improvement in
diversification of investments. Thus it became important to study the mutual
fund industry and the performance of the mutual funds. This study aims to
evaluate the performance of a few selected mutual fund schemes of India on
the basis of their daily net asset value for the period of five years from 2015-
2019.
Nilesh, Dipshdhanda (2015) Mutual funds offer benefit of diversification of
risk to investors. Individual investors may not have the time and professional
competence for analyzing risk and return across sectors and companies.
Diversification involves the mixing of investments within a portfolio to manage

27
risk. Investing and liquidating investment process is quite easy in case of
mutual funds. Funds collected through different schemes by fund managers
are invested in equity and debt market for the corporate sector which leads to
pooling of investment and capital formation in the country. Mutual funds are
considered as an investment option benefiting the investors and the economy
as a whole. The present article has been written to describe the growth of
mutual funds in india in terms of number of schemes and the net assets under
management of mutual fund managers.

Komal B. Sharma (2020) Mutual funds playing a key role in the development
of india's debt market and have emerged as a key source of funding. Mutual
funds considered as one of the best investment options as compared to other
alternatives, as low cost is the common feature of the mutual fund. Mutual
fund schemes also provide diversified portfolio management and reducing risk
and maximizing returns. Mutual fund scheme is the most ideal investment for
the common man as it provides a professionally managed stock market and
low risk with maximum returns. The basic need and objectives of this study
are to evaluate the performance of selected debt mutual fund schemes in
india and to examine the risk and return component among these mutual
funds. The present study is based on secondary data of five debt mutual
funds launched by the different private sector companies between the period
of January 2017 to December 2019.

Amitsundaram (2020) The outbreak of the covid-19 pandemic caused

widespread panic among people around the world. Many countries enforced a
fierce lockdown to curb the spread of the virus. But the lockdown had other
plans for businesses as many of them were forced to shut shop leading to
highly volatile market conditions and bearish economic conditions in most
countries. But was this, the perception of the investors as well? This paper
aims to find out the sentiment of investors on mutual funds in the Indian
market with assets under management, a predominant performance gradient
for mutual funds, as a proxy to analyze the impact of news articles related to
the mutual fund industry amid the covid-19 outbreak. The paper also goes on
to establish a significant mathematical relationship between sentiment scores

28
and aum and to using regression to generate a forecasting model that could
be used to forecast future aum given a sentiment score.

Dr.Anupamkarmakar (2020) A mutual fund is just the connecting bridge or a

financial intermediary that allows a group of investors to pool their money
together with a predetermined investment objective. The mutual fund is
managed by a fund manager who is responsible for investing the gathered
money into specific securities (stocks or bonds). Mutual funds mobilize funds
by selling their own shares also known as units. When an investor owns a unit
in mutual funds, he owns a proportional share of the securities portfolio held
by a mutual fund. Mutual fund industry now becomes more attractive to the
institutional investors due to professional management, well regulated,
flexibility, low cost, tax benefits, wider selection of funds, increasing risk
appetite, diversification etc. But the recent pandemic due to covid-19 has
created disruptions across the economy and businesses which makes the
institutional investors to look for alternative of mutual fund investments. This
paper is an attempt to study monthly log returns of selected mutual fund
schemes with nifty 50 in order to show the trend in returns during pre and post
covid-19 period and to assess the impact of the pandemic and lockdown on
the mutual fund industry.

Nidhi Walia, Dr. Mrs. Ravi Kiran (2009) Financial markets are constantly
becoming more efficient by providing more promising solutions to the
investors. Being a part of financial markets although mutual funds industry is
responding very fast by understanding the dynamics of investor’s perception
towards rewards, still they are continuously following this race in their
endeavor to differentiate their products responding to sudden changes in the
economy. Thus, it is high time to understand and analyze investor’s
perception and expectations, and unveil some extremely valuable information
to support financial decision making of mutual funds.

Dr. S. Sudha Christy Joy, Dr. V. Ganeshkuma (2020) Mutual funds play an
important role in mobilizing savings of millions of investors across the country.
In mutual funds, savings of small investors are mobilized, invested and
returns are distributed in the same proportion to the unit holders. Now-a-days

29
bank rates have become very low so, keeping large amount of money in bank
does not give higher returns. People can invest in stock market. But a
common investor is not well informed about the complexities involved in stock
market movements. Here mutual funds play an important role in helping
common public to get higher returns. A small investor is not safe in share
market. In mutual industry there is no such risk. Mutual funds help to reduce
the risk of investing in stocks by spreading or diversifying investments. Small
investors enjoy the benefit of diversification.

Nepal Rajan Bilas Bajracharya (2017) Mutual fund is an investment tool

which assembles the savings of millions of small investors into huge capital
formation. The primary goal behind investment in mutual fund is to earn goods
return with comparatively low risk. The main purpose of doing this research is
to find out a relationship between selected demographic and socioeconomic
characteristics and investors’ attitude towards mutual. Another purpose of this
research was to rank different sources investors use to make investment
decision on the basis on their preference. By using liker scale (0 to 1) and
three levels (positive, neutral, negative) in structured questionnaire,
researchers have measured the level of attitude towards mutual fund and
levels of preference of sources are to investment decision. It is found that, the
investors attitude is not independent towards mutual fund on the basis of
demographic and socio-economic variable (age, gender, monthly income,
investment level, educational qualification). Also, among selected sources,
investors provide their highest preference to brokers/agents to make
investment. The study has suggested some important policy measures such
as regulatory change, creating investors awareness, encouraging the private
companies to raise fund through mutual fund.
Ganga Bhavani & Khyati Shetty (2017) The primary purpose of this study is
to investigate how investment choice gets affected by the demographics and
perceptions of the investor. Investor’s behavior is influenced by many factors
at the time of investment decision making. Demographic profile and
perceptions play an important role to select a particular choice of investment.
However, the results of this research show that the most investors have little
knowledge on the investment avenues for their investments. Mann whitney ‘u’

30
test, kruskal- wallis has been conducted to test the hypotheses with the help
of spss. Logistic regression results of this study prove that investors’ age,
gender, education and occupation significantly influence the selection of
investment avenues. Wealth management professionals emphasizes that
customer behavior and psychology play a vital role in successfully building
and sustaining a wealth management relationship. Behavioral finance is new
emerging science which focuses on understanding the psychology effects on
investment decision.

Deepa Anandan Joseph, Jey Anand Selvaraj (2020) The present paper
measures the preference of the investors for investment in mutual fund.
Mutual funds have a mutual investment forum to engage in qualified asset
management in the Indian stock market independent of the amount invested.
The Indian mutual fund market expands fast and this is evidenced by the
growth in investments under the control of different investment firms. Trading
in mutual funds is less costly than investing in bonds, and thus better for risk-
averse buyers. A mutual fund is an investment mechanism that collects and
invests funds from different investors into commodities, share, short -term
monetary instrument, other instruments, and reserves. The primary objective
of mutual fund is to earn a relatively low risk return of goods. This work is
primarily aimed to define investor interest for the mutual fund in chennai.

Elena Kusuma Devi R. A. Rahadi (2020) Mutual funds is an alternative

investment designed as a means to raise funds from people who have capital
and have the desire to invest, but only have limited time and knowledge. In
addition, mutual funds are also expected to increase the role of local investors
to invest in the capital market. To encourage an increase in the number of
investors, the first online mutual fund investment platform was launched in
indonesia in 2016. Over time, similar platforms began to appear. The theory of
technology adoption is implemented in this study to analyze how technology
adoption of online mutual fund investment with millennials as the main object
of research. Based on various literacy’s, there are several factors that
influence a person to adopt online mutual fund investment, namely
performance expectancy, effort expectancy, social influence, facilitating

31
conditions, hedonic motivation, price value, habits, content design quality,
user interface and perceived trust.

S.Srilakshmi, Dr. B.Sekar (2016) Mutual funds are still and would continue to
be the unique financial tool in the country. One has to appreciate the fact that
every aspect of life as its periods of high and lows. This has been the case
with the stock markets. Why not apply the same logic to mutual funds? Mutual
funds have not failed in any country where they worked with regulatory frame
work. Their future is bright. The poor performance of many mutual funds
schemes may be mostly attributed to the quality of personal involved and their
matter of fund management.

Mr.K.Sasikumar, Dr.K.Krishnamurthy(2020) This research aims to study

retail investors’ preferences towards mutual funds. India is one of the fastest
growing economies in the world with rising incomes, but also savings and
investments. The main sector of emerging financial markets is investment in
mutual funds. The mutual fund sector plays a key role in the development of
financial markets, business sector and growth of financial intermediaries. The
regulatory measures to develop mutual fund industry and to protect the
interests of mf investors are also important. This study required to examine
theoretical aspects of indian mutual fund industry and retail investor’s
preferences towards investment.

Dr.S.Naresh, Dr.K.Alamelu (2020) Investing is an important aspect of an

individual’s life. Although majority of India’s population is the youth, there is a
lack of awareness regarding Investment Avenue and its importance.
Moreover, in march2020, India was hit by the covid19 pandemic. Impact
across the globe and every sector was affected due to the same. The basic
aim of this research is to analyze the impact of covid19 on the investment
preferences of retail investors and also on the investment industry in india.
The returns up to july31st, 2020 are taken for the study. Some of the
financially aware investors have also grabbed this opportunity of the dip in the
market and invested during the pandemic. The stock market has shown 70%
recovery till the end of july 2020 from the dip in march 2020.to conclude, covid
19 has a drastic effect not only on the investment industry in india but also on

32
all the other aspects of human life. The indian markets have shown good
recovery in short span of time and will hopefully go back to normal soon.

Komal B. Sharma (2020) mutual funds playing a key role in the development
of India’s debt market and have emerged as a key source of funding. Mutual
funds considered as one of the best investment options as compared to other
alternatives, as low cost is the common feature of the mutual fund. Mutual
fund schemes also provide diversified portfolio management and reducing risk
and maximizing returns. Mutual fund scheme is the most ideal investment for
the common man as it provides a professionally managed stock market and
low risk with maximum returns. The basic need and objectives of this study
are to evaluate the performance of selected debt mutual fund schemes in
India and to examine the risk and return component among these mutual
funds.

Dr. Umesh Maiya (2014) A mutual fund is a trust that pools the savings of a
number of investors who share a common financial goal. 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 of India. A mutual fund
is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. The primary objective of this paper is to
study the risk perception of mutual fund investors of udupi district.

K. Karthikeyan, S. Bharath, K. Ranjith Kumar (2012) Financial markets are

constantly becoming more efficient by providing more promising solutions to
the investors. Thus, it is high time to understand and analyze investor’s
perception and expectations and unveil some extremely valuable information
to support financial decision making of mutual funds (mf). The main objective
of this study was to find out the response of customers towards provision of
mutual fund products by banks. This will help in devising further strategies for
the tier-ii cities in India to cross sell mutual fund products through the branch
network of banks. This article examines the investors’ perception towards
mutual fund products through banks.

33
Dr. Rupeet Kaur (2014) This study aims to examine the performance of
open-ended debt mutual funds in India. To evaluate the performance a
sample of 23 schemes have been selected on the basis of weekly returns
compared to benchmark returns. For this purpose, statistical tools average,
standard deviation, beta, co-efficient of determination, the return analysis
reveals that most of the schemes could not perform better as compared to the
benchmark.Whereas the variability in return of market is more than the
variability in return of schemes.

Dr. N. Renuka (2017) India’s mutual fund market has witnessed phenomenal
growth over the last decade. The consistency in the performance of mutual
funds has been a major factor that has attracted many investors. Mutual fund
is one of the most effective instruments for the small & medium investors for
investment and offers opportunity to them to participate in capital market with
low level of risk. The performance of mutual fund schemes is dependent on
the right strategy adopted by the fund managers in designing the portfolio.

Dr.B.Nimalathasan;Mr.R.Kumar Gandhi (2012) This article focused on the

financial performance analysis of mutual fund schemes (equity diversified
schemes and equity mid-cap schemes) of selected banks (state bank of India,
canara bank- public bank, icici bank, hdfc bank-private bank).the results of the
research work concern among the open ended tax saving schemes, Canara
robeco equity diversified is the preferred and ranked top most, at the same
time among the open ended-midcap schemes, hdfc capital builder is the
preferred and ranked top through various tools. these research findings useful
to the investors in terms of understanding the financial performance of the
mutual fund schemes. Also this research finding is useful to the mutual fund
company in terms of behavioral aspects of mutual fund.

34
 CHAPTER-3

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

A research design is considered as the framework or plan for a study that

guides as well as helps the data collection and analysis of data.

3.1.1 Descriptive Research Design

Descriptive research is a study designed to depict the participants in an

accurate way. More simply put, descriptive research is all about describing
people who take part in the study.

3.2 SAMPLING TECHNIQUES

3.2.1 Data collection

The data was collected using questionnaire from professionals/ common man
like those who wants invest in mutual funds and other investment option.

3.2.2 Convenience sampling method

A convenience sample is one of the main types of non-probability sampling

methods. A convenience sample is made up of people who are easy to reach.

3.3 SOURCES OF DATA

3.3.1 Primary Data sources:

Primary data are those which are fresh and are collected for the first time, and
thus happen to be original in character. The primary data was collected
through direct personal interviews (open ended and close ended
questionnaires)

3.3.2 Secondary Data sources:

Secondary data refers to data that was collected by someone other than the
user. Common sources of secondary data for journal and websites, data that
was originally collected for other research purposes.

35
3.4 STRUCTURE OF QUESTIONNAIRE:

Direct personal interviews and open-ended and closed-ended questionnaires

were used to collect the primary data.

3.5 SAMPLE SIZE:

A total of 105 people were chosen. Investors, neighborhoods, and workplaces

were used to create the study. The respondents were chosen using simple
random sampling.

3.6 PERIOD OF STUDY:

The period of study is from January 2021 to April 2021 which is four months of
study

3.7 ANALYTICAL TOOLS:

The analytical tools used are spss for testing the hypothesis, Chi Square test
in spss tool and ANOVA in spss tool.

36
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

4.1 PERCENTAGE ANALYSIS

Table: 4 .1.1Age group of the Respondents

Age Group No. of Respondents Percentage

Less than 20 0 0

20-30 26 25%

30-40 66 63%

50 and above 13 12%

Total 105 100

Source: Primary data.

12% 0%
25%
Less than 20
20-30
30-40
63% 50 and above

Chart: 4.1.1 Age group of the Respondents

Interpretation

From the above table it is interpreted that the 63% respondents are fall in the
age category of 30-40 years, 25% in 20-30 years and 2% in 50 and above.

Inference

Majority (63%) of the respondents are 30- 40 age group.

37
Table: 4.1.2 Gender of the Respondents

Gender No. of Respondents Percentage

Male 74 70%

Female 31 30%

Total 105 100

Source: Primary data.

30%

MALE
FEMALE
70%

Chart: 4.1.2 Gender of the Respondents

Interpretation

From the above table it is interpreted that the 70% respondents are male and
30% respondents are female

Inference

Majority (70%) of the respondents are male.

38
Table: 4.1.3 Occupation of the Respondents

Occupation No. of Respondents Percentage

Government employee 13 13%

Private employee 36 34%

Business 43 43%

Other (retired, agriculture 13 12%

etc.)
Total 105 100

Source: Primary data.

13%
12%

Government employee

Private employee
41%
Business

34% Other(retired,agricultur
e etc.)

Chart: 4.1.3 Occupation of the Respondents

Interpretation

From the above table it is interpreted that the 41% respondents are says
business, 34% in private employee, 13% in government employee and 12% in
other (retried, agriculture etc.)

Inference

Majority (41%) of the respondents are says business.

39
Table: 4.1.4Monthly income of the Respondents

Monthly Income No. of Respondents Percentage

Less than Rs.50000 51 49%

Rs.50000-Rs.100000 42 40%

More than Rs.1 lakh 12 11%

Total 105 100

Source: Primary data.

11%

49%

40%

Less than Rs.50000 Rs.50000-Rs.100000

More than Rs.1 lakh

Chart: 4.1.4 Monthly income of the Respondents

Interpretation

From the above table it is interpreted that the 49%of the respondents are falls
in monthly income category of less than Rs.50000, 40% in Rs.50000-
Rs.100000 and 11% in more than Rs.1 lakh.

Inference

Majority (49%) of the respondents are falls in monthly income category of less
than Rs.50000.

40
Table: 4.1.5 Annual savings of the Respondents

Annual Savings No. of Respondents Percentage

Less than Rs.50000 58 55%

Rs.50000-Rs.100000 36 36%

More than Rs.1 lakh 09 9%

Total 105 100

Source: Primary data.

9%

55%
36%

Less than Rs.50000 Rs.50000-Rs.100000

More than Rs.1 lakh

Chart: 4.1.5 Annual savings of the Respondents

Interpretation

From the above table it is interpreted that the 55%of the respondents are says
annual saving less than rs.50000, 36% in rs.50000-rs.100000 and 9% in more
than rs.1 lakh

Inference

Majority (55%) of the respondents are says annual saying is less than
Rs.50000.

41
Table: 4.1.6 Source of awareness of the Respondents

Source of Awareness No. of Respondents Percentage

News paper& magazine 17 18%

Internet 41 43%

Television 16 17%

Relatives and friend 21 22%

Total 105 100

Source: Primary data.

22% News paper&

18%
magazine
Internet

Television
17%

43%

Chart: 4.1.6 Source of awareness of Mutual Funds

Interpretation

From the above table it is interpreted that the 43% of the respondents are
aware of the mutual fund investment through internet, 22% in relatives and
friends, 18% in newspaper& magazine and 17% in television.

Inference

Majority (43%) of the respondents are aware of the mutual fund investments
through internet

42
Table: 4.1.7 Factors influencing investment in Mutual Fund

Influence Most Less Not at all

Important Neutral
Factor Important Important Important Total

High risk 36 46 19 4 0 105

Tax saving 32 45 26 2 0 105

Liquidity of
24 49 29 2 1
fund 105

Safety and
23 52 25 4 1
security 105

Regular
19 52 24 8 2
income 105

Regular
19 49 29 6 2
saving 105

Risk involved 17 52 26 3 7 105

Diversification 17 52 24 12 0 105

Easy payment 20 46 23 12 4 105

Source: Primary data.

43
 10% 17% High risk

8% Tax saving
Liquidity of fund
8% Safety and security
16% Regular income
Regular saving
9%
Risk involved
Diversification
12%
9% Easy payment
11%

Chart: 4.1.7 Factors influencing investment in Mutual Fund

Interpretation

From the above table it is interpreted that the 17% of the respondents are
influencing for high risk, 16% in Tax saving, 12% in liquidity of fund, 11% in
safety and security, 10% in easy payment, 9% in regular saving, 9% in regular
income risk, 8% in risk involved and 8% in diversification.

Inference

Majority (17%) of the respondents are influencing for high risk.

44
Table: 4.1.8 Investor satisfaction levels of various motivating factors

Influence Highly Satisfied Neutral Dissatisfi Highly Total

factor satisfied ed dissatisfi
ed

High risk 24 36 38 7 0 105

Tax saving 26 48 27 2 2 105

Liquidity of
33 39 25 6 2
fund 105

Safety and
37 35 23 7 3
security 105

Regular
23 42 33 7 0
income 105

Regular
17 48 27 4 9
saving 105

Risk
17 45 38 4 1
involved 105

Diversificati
13 38 46 4 4
on 105

Easy
17 42 39 6 1
payment 105

Source: Primary data.

45
 8% 12%
6% High risk

8% 13% Tax saving

Liquidity of fund
8%
16% Safety and
security
Regular income
11%
Regular saving
18%

Chart: 4.1.8 Investor satisfaction levels of various motivating factors

Interpretation

From the above table it is interpreted that the 18% of the respondents are
influencing factor for safety and security, 16% in liquidity of fund, 13% in tax
saving, 12% in high risk, 11% in regular income, 8% in regular saving.8% in
risk involved, 8% in easy payment and 6% in diversification.

Inference

Majority (18%) of the respondents motivating factor is safety and security.

46
Table: 4.1.9 Method of purchase Mutual Fund unit

Purchase No. of Respondents Percentage

Direct purchase 64 61%

Through brokers 41 39%

Total 105 100

Source: Primary data.

39%

61%
Direct Purchase
Through brokers

Chart: 4.1.9 Method of purchase Mutual Fund unit

Interpretation

From the above table it is interpreted that the 61% of the respondents are
purchase the mutual fund units directly and 39% in through brokers.

Inference

Majority (61%) respondents are purchase the mutual fund units directly.

47
Table: 4.1.10 Aware of risk involved in Mutual Fund investment

Aware of Risk No. of Respondents Percentage

Yes 92 88%

No 12 12%

Total 105 100

Source: Primary data.

12%

YES NO

88%

Chart: 4.1.10 Aware of risk involved in Mutual Fund investment

Interpretation

From the above table it is interpreted that the 88% of the respondents are
aware of the risk involved in the mutual fund investment, and remaining 12%
of the respondents are not aware of the risk involved in mutual fund.

Inference

Majority (88%) of the respondents are aware of the risk involved in the mutual
fund investment.

48
Table: 4.1.11 Problems faced by investors in Mutual Fund

Problem Faced No. of Respondents Percentage

Low income 13 15%

Unable to aware market 17 19%

Delay in selling unit 20 22%

Fees and commission 18 20%

Poor service of broker 9 10%

Poor service of mutual fund 7 7%

company
Non availability of branch 5 5%
Total 105 100

Source: Primary data.

6%
8% 15% Low income

Unable to aware market

19%
10% Delay in selling unit

Fees and commission

Poor service of broker

20%
Poor service of mutual
fund company
22% Non availability of
branch

Chart: 4.1.11 Problems faced by investors in Mutual Fund

49
Interpretation

From the above table it is interpreted that the 22% of the respondent’s
problem is delay in selling unit, 20% in fees and commission, 19% in unable
to aware of market.15% in low income, 10% in poor service of broker, 8% in
poor service of mutual fund company and 6% in non-availability of branch,

Inference

Majority (22%) of the respondent’s problem is delay in selling unit.

50
Table: 4.1.12 Mode of investment

Mode of Investment No. of Respondents Percentage

One time investment 46 44%

Systemic investment plan 59 56%

Total 105 100

Source: Primary data.

One time investment

44%
Systemic investment
56% plan

Chart: 4.1.12 Mode of investment

Interpretation

From the above table it is interpreted that the 56% of the respondents are
invest in mutual fund systematically, and 44% in one-time investors.

Inference

Majority (56%) of the respondents are investing in mutual fund systematically.

51
Table: 4.1.13 Investment experience in Mutual Fund

Experience No. of Respondents Percentage

Less than 2 years 55 52%

2 years to 6 years 36 34%

6 years to 10 years 12 12%

Above 10 years 02 2%

Total 105 100

Source: Primary data.

2%
12%
Less than 2 years

52% 2 years to 6 years

6 years to 10 years
34%
Above 10 years

Chart: 4.1.13 Investment experience in Mutual Fund

Interpretation

From the above table it is interpreted that the 52% respondents are less than
2 years’ experience, 36% in years to 6 years’ experience, 12% in 6 years to
10 years’ experience and 2% in above 10 years’ experience.

Inference

Majority (52%) of the respondents are less than 2 years’ experience.

52
Table: 4.1.14 Duration of time preferred by Respondents

Duration of Time No. of Respondents Percentage

Up to 1 year to 2 year 45 43%

1 year to 3 years 31 29%

3 years to 5 years 23 22%

Above 10 years 6 6%

Total 105 100

Source: Primary data.

6%

43% Up to 1 year 2
22%
1 year to 3 years

3 years to 5 years
29% More than 5 years

Chart: 4.1.14 Duration of time preferred by Respondents

Interpretation

From the above table it is interpreted that the 43% of the respondents are
duration of investment is up to 1 year to 2 years, 29% in 1 year to 3 years,
22% in 3years to 5 years and 6% in above 10 years,

Inference

Majority (43%) of the respondents are duration of investment is up to 1 year to

2 years.

53
Table: 4.1.15 The respondent’s preference of schemes

schemes No. of Respondents Percentage

Close ended 47 45%

Open ended 58 55%

Total 105 100

Source: Primary data.

45%
Close ended
55% Open ended

Chart: 4.1.15 The respondent’s preference of schemes

Interpretation

From the above table it is interpreted that the 55% of the respondents are
prefer to invest in open ended invest, and 45% in close ended invest.

Inference

Majority (55%) of the respondents are preferred to invest in open ended

investment.

54
Table: 4.1.16 The respondents prefer to reinvest in Mutual Fund

Prefer to Reinvest No. of Respondents Percentage

Yes 76 72%

No 29 28%

Total 105 100

Source: Primary data.

28%

YES NO

72%

Chart: 4.1.16 The respondents prefer to reinvest in Mutual Fund

Interpretation

From the above table it is interpreted that the 72% of the respondents are
prefer reinvest in mutual funds, and 28% of the respondents are not prefer
invest in mutual fund.

Inference

Majority (72%) of the respondents are preferred reinvesting in mutual funds.

55
Table: 4.1.17 The respondents think good options to invest in Mutual
Fund

Good Option to Invest No. of Respondents Percentage

Strongly agree 23 22%

Agree 37 35%

Neutral 41 39%

Disagree 04 4%

Strongly disagree 0 0

Total 105 100

Source: Primary data.

0%4%
Strongly agree
22%
Agree
Neutral
39% Disagree
35% Strongly disagree

Chart: 4.1.17 The respondents think good options to invest in Mutual

Fund

Interpretation

From the above table it is interpreted that the 39% of the respondents are
says neutral good option to invest mutual fund is, 35% in agree, 22% in
strongly agree and 4% in disagree.

Inference

Majority (39%) of the respondents are says good option to invest mutual fund.

56
Table: 4.1.18 Prefer friend and relatives to invest in Mutual Fund

Prefer anyone to Invest No. of Respondents Percentage

Yes 85 81%

No 20 19%

Total 105 100

Source: Primary data.

19%

YES

NO
81%

Chart: 4.1.18 Prefer friend and relatives to invest in Mutual Fund

Interpretation

From the above table it is interpreted that the81% of the respondents are
prefer friend and relatives to invest in mutual fund, and remaining 19% of the
respondents are not prefer friend and relatives to invest in mutual fund.

Inference

Majority (81%) of the respondents are preferred friend and relatives to invest
in mutual fund.

57
4.2 CHI-SQUARE

Table 4.2.1: Table showing the association between the problems faced
by investor in mutual fund and good opinion to invest in mutual fund

Null hypothesis (H0) -There is no association between the problems faced by

investor in mutual fund and good opinion to invest in mutual fund

Alternative hypothesis (H1) - There is association between the problems faced

by investor in mutual fund and good opinion to invest in mutual fund.

Cross Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

problem faced by investor * 105 100.0% 0 0.0% 105 100.0%

good opinion to invest in mutual
fund

Value df Asymp. Sig.(2-sided)

Pearson Chi-Square 16.308a 18 .571

Likelihood Ratio 19.275 18 .375

N of Valid Cases 105

a. 20 cells (71.4%) have expected count less than 5. The minimum expected
count is .14.

Source: Primary data.

Since p value is higher than 0.05, we accept null hypothesis and reject the
alternative. There is no significance difference between the problem faced by
investor in mutual fund and good opinion to invest in mutual fund

58
4.3 ANOVA ANALYSIS

Table 4.3.1: Table showing the association between the age and monthly
income

Null hypothesis (H0) - There is no association between Age Group and

Monthly Income.

Alternative hypothesis (H1) - There is association between Age Group and

Monthly Income.

Sum of df Mean F Sig.

squares square
Between .793 3 .397 .499 .609
groups
Within 81.168 102 .769
groups
Total 81.962 105

Source: Primary data.

Since p value is higher than 0.05, we accept null hypothesis and reject the
alternative. There is no significance difference between age group and
Monthly income

59
 CHAPTER-5

FINDING, SUGGESTION AND CONCLUSION

5.1 Findings:

 63% of the respondents are fall in the age category of 30- 40 years.
 70%of the respondents are male.
 41% of the respondents say business.
 49% of the respondents are falls in monthly income category of less
than rs.50000.
 55% of the respondents are says annual saving is less than 50000.
 43% of the respondents are aware of the mutual fund investment
through internet.
 61% of the respondents are purchase the mutual fund unit directly.
 88%of the respondents are aware of the risk involved in the mutual
fund investment.
 22%of the respondent’s problem is delay on selling unit.
 56% of the respondents are investing in mutual fund systematically.
 52% of the respondents are less than 2 years experience.
 43% of the respondents are duration of investment is up to 1 year to
2 years.
 55% of the respondents are preferred to invest in open ended
investment.
 72% of the respondents are preferred reinvest in mutual funds.
 39% of the respondents are says good option to invest mutual fund.
 81% of the respondents are preferred friend and relatives to invest
in mutual fund.

Findings of Chi-Square:

 There is no significance difference between the problem faced by

investor in mutual fund and good opinion to invest in mutual fund.

60
Findings of Anova:

 There is no significance difference between age group and monthly

income.

5.2 Suggestion

 The investor should keep an eye on the performance of scheme

and other good schemes which are available in the market.
 Efforts should be made to encourage or enhance online dealing of
mutual funds. This will save time and cost. They can effortlessly sell
or purchase any number of funds whenever they want.
 The mutual fund industry must also help people in mobilizing their
savings in such a way that they can get maximum benefits out of
them.
 Once they invested in mutual fund, they need returns and if is not
giving proper returns to then again it is affecting the interest of the
investors to invest in mutual fund.
 They should provide more information about their investment
product and services mean they should also concentrate on
promotion of their schemes.
 Some investors suggested that the fund values of the mutual fund
investment should be informed to the investors through sms on
fortnightly basis. This will help the investors in keeping themselves
up to date with the latest information of different funds.

61
5.3 Conclusion

The minds of the investing public look for investments are safe and that it will
earn good returns. This study conducted was regarding the factors influencing
the investor’s perception towards mutual fund investment. It is highlighted that
investors of middle-income level agrees that regular income and liquidity of
the investment plays a vital role. It can be perceived that high risk leads to
high returns in the investment. The flexibility in the investment would lead to
good performance of the funds. There’s a scope where investors belonging to
different age groups seek for many other factors that can attract them to
invest in the mutual fund industry than just the ones considered for the study.
Measures should be taken to increase the confidence and morale of the
investors. This can be done through proper communication and by educating
investors to invest in mutual funds. Sensible and right information should be
given to them by various communication modes so that they get to know
about the latest trends in the market. Mutual funds are still and would carry on
to be the unique financial instrument in the country.

62
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preference of mutual funds of investors in chennai city,3,8,2020,178-
184.
 International journal of research in management & business studies,
Dr. Rajesh kumar, iinitin goe, An empirical study on investors’
perception towards mutual funds, Issn : 2348-6503, Vol. 1, Issue
4,2014, 49-52
 International journal of research publication and
reviews,Pratyashitamuly, samareshnandy,Investors behavior and
mutual funds,Volume 11,Issue 10,2020,617-625
 International journal of research publication and reviews. Martin mysa,
A study of consumer behaviour towards mutual funds with special
reference to secunderabad metropolitan city, Issn : 2347-
7180,10,01,2020, 48-55
 International journal of scientific and research publications, Arathy b,
aswathy a nair, anjusaip,pravitha n r, A study on factors affecting
investment on mutual funds and its preference of retail investors, Issn
2250-3153, Volume 5, Issue 8,2011, 430-782.
 Iup journal of management research, Parihar, b b s; sharma,
rajeev; parihar, deepikasingh, Analyzing investors' attitude towards
mutual funds as an investment option, Vol. 8,Issn. 7, 2009, 56-64
 Journal of exclusive management science,s.srilakshmi,dr. B. Sekar,A
study on investor perception towards mutual funds,Issn 2277-
5684,5,4,2016,1-6.
 Journal of Indian business research, Inderjit kaur, k.p. Kaushik,
Determinants of investment behavior of investors towards mutual
funds, Issn: 1755-4195,Volume 8,Issue 1, 2016
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Rajanbilasbajracharya, A study of investors’ awareness towards mutual
funds in kathmandu metropolitan city, Nepal, Issn: 2349
2589,5,1,2016,92-97.

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 Mediterranean journal of social sciences,G.velmuruganv. Selvam,N.
Abdul nazar, An empirical analysis on perception of investors’ towards
various investment avenues,2039-9340,6,4,427-435
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Investor perception towards mutual fund investment, Vol. 10,
No.2,2017, 37-48
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investor behaviour in systematic investment plan of mutual fund, Issn
no : 2347-3150, Volume ix, Issue v,2020, 744-750.
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Dr.s.naresh,Dr.k.alamelu, Investors’ preference towards investments
(with special Reference to march 2020 October 2020 during pandemic
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67
 APPENDIX-I (Questionnaire)

1. Name:

2. Age group:

a) Less than 20

b) 20-30

c) 30-40

d) 50 and above

3. Gender:

a) Male

b) Female

4. Occupation:

a) Government employee

b) Private employee

c) Business

d) Student

e) Other (retired, agriculture etc.)

5. Monthly income:

a) Less than rs. 50000

b) Rs.50000-rs.100000

c) More than rs.1 lakh

6. Annual savings

a) Less than rs.50000

b) Rs.50000- rs.100000

c) More than rs.1 lakh

68
7. Source of awareness about mutual fund

a) News paper& magazine

b) Internet

c) Television

d) Relatives and friend

e) Agent

8. Investor opinion about the factors influencing investment in mutual fund

Influence Most Important Neutral Less Not at all

factor important important important

High risk

Tax saving

Liquidity of
fund

Safety and
security

Regular
income

Regular
saving

Risk involved

Diversification

Easy
payment

69
9. Investor satisfaction level of various motivating factors

Influence Highly Satisfied Neutral Dissatisfied Highly

factor satisfied dissatisfied

High risk

Tax saving

Liquidity of
fund

Safety and
security

Regular
income

Regular
saving

Risk involved

Diversification

Easy
payment

10. Method of purchasing mutual fund investment

a) Direct purchase

b) Through brokers

11. Aware of risk involved in mutual fund investment

a) Yes

b) No

12. Problem faced by investors in mutual fund

a) Low income

b) Unable to aware market

c) Delay in selling unit

d) Fees and commission

70
 e) Poor service of broker

f) Poor service of mutual fund company

g) Non availability of branch

13. When you invest in mutual fund which mode of investment will you prefer?

a) One time investment

b) Systemic investment plan

14. Investment experience in mutual fund?

a) Less than 2 years

b) 2 years to 6 years

c) 6 years to 10 years

d) Above 10 years

15. Duration of time preferred by respondent?

a) Up to 1 year to 2 year

b) 1 year to 3 years

c) 3 years to 5 years

d) More than 5 years

16. Which type of schemes do you prefer to invest?

a) Close ended

b) Open ended

17. Do you have plans to reinvest in mutual fund?

a) Yes

b) No

18. Do you think good option to invest in mutual fund?

a) Strongly agree

b) Agree

c) Neural

d) Disagree

71
 e) Strongly disagree

19. Do you prefer friends and relatives to invest in mutual fund?

a) Yes

b) No

72
 APPENDIX-II (Article)

International Research Journal of Modernization in

Engineering Technology and Science

A STUDY ON INVESTOR’S PERCEPTION TOWARDS MUTUAL

FUND FOCUS ON VELLORE DISTRICT
Roshini Pranjana NV,

Master of business administration, Sathyabama Institute of

Science and Technology, Chennai, Tamil Nadu, India.

Dr. Palani. A

Head, School of Business Administration, Sathyabama Institute

of Science and Technology, Chennai, Tamil Nadu, India

ABSTRACT-Mutual funds are the best investment for the

average person because they allow them to invest in a
diversified, professionally managed basket of securities at a low
cost. According to their age, financial situation, risk tolerance,
and return expectations, diversification of schemes offers a
variety of options to suit their individual goals. Investing in
mutual funds is a great way to diversify your portfolio. Investors'
perceptions have an impact. The purpose of this study is to
identify investors' perceptions of mutual funds and to investigate
the factors that influence investors' perceptions of mutual funds.
The survey was conducted in the Vellore district, and data was
collected using the convenience sampling method. To analyses
the data, statistical methods such as "Chi-square" and "ANOVA"
were used, The ANOVA test revealed an association between
age group and monthly income, while the chi-square test
revealed an association between the issue faced by mutual fund
investors and a good mutual fund investment option

73
Keywords: investment, Mutual fund, schemes, problem faced, investor.

I.INTRODUCTION

Mutual Funds refer to funds which collect money from investors and put this
money in stocks, bonds and other securities to gain financial profit. In
exchange for their investments, people whose money is used by the Mutual
Fund Manager to buy stocks, bonds, and other securities receive a
percentage of the mutual fund's profit. Both parties benefit from the mutual
fund in this manner. A mutual fund is a trust that pools the savings of a group
of investors with similar financial goals. The money raised is then put to good
use. Shares, debentures, and other securities are capital market instruments.
Unit holders share the revenue and capital appreciation generated by these
investments in proportion to the number of units they own. Thus, a mutual
fund is the best investment for the average person because it allows them to
invest in a diversified, professionally managed portfolio of securities at a low
cost. Shares, debentures, and other securities are examples of capital market
instruments. The income generated by these investments, as well as the
capital gains realized, are distributed to the unit holders in proportion to the
number of units they own. A mutual fund's operation is depicted in the flow
chart below. A mutual fund is a type of professionally managed collective
investment scheme that pools money from multiple investors and invests it in
stocks, bonds, short-term money market instruments, and/or other securities.
A fund manager can trade the pooled money on a regular basis for the mutual
fund. At the moment, the global value of the total value of all mutual funds
exceeds $26 trillion. The mutual fund company makes money by investing
other people's money, and the people who invest in the mutual fund make
money without having to go to work. Into intensive Bond and stock valuation
and research. Mutual fund managers are in charge of stock and bond market
analysis, market research, and market speculation. Those who invest in
mutual funds are typically exposed to a variety of risks. Too those who invest
directly in bonds and stocks face a much higher risk. Because mutual funds
are invested in a variety of bonds and stocks, they have a lower risk profile.
As a result, if the market value of one bond or the value of a company's stock

74
falls at any time, the mutual fund's loss can be offset by the market gain of
another bond or stock.

OBJECTIVES OF THE STUDY

 The purpose of this research is to look at how investors think about

mutual funds.

 To understand the factor influencing the investor while making

decision.

 To examine the level of satisfaction of the investor.

 To identify the problem faced by mutual fund investor.

NEED OF THE STUDY

The primary goal of this primary goal of this research is to look at how investor
feels about mutual funds. The study also identifies the investor’s problem and
what motivates them to reinvest in mutual funds.

RESEARCH DESIGN

A research design is considered as the framework or plan for a study that

guides as well as helps the data collection and analysis of data.

Descriptive Research Design

Descriptive research is a type of study that aims to accurately portray the

participants. Simply put, descriptive research is concerned with identifying the
participants in a study.

SCOPE OF STUDY

 To gain a better understanding of how investors feel about mutual

funds.

 Define and identify the investor's influence and motivating factors.

 The research measure of the experience of the investor

 To understanding the problem faced by the investor

75
SOURCES OF DATA

Primary Data sources:

Primary data are those that are new and were gathered for the first time, and
therefore are unique in nature. Direct personal interviews were used to gather
the primary data (open-ended and close ended questionnaires)

Secondary Data sources

The term "secondary data" refers to information gathered by someone other

than the user. Data that was originally gathered for other research purposes is
a common source of secondary data for journals and websites

SAMPLING TECHNIQUES

Data collection

The data was collected using questionnaire from professionals/ common man
like those who wants to put money into mutual funds and other types of
investments. Method of convenience sampling

Convenience sampling method

A convenience sample is one of the main types of non-probability sampling

methods. A convenience sample is made up of people who are easy to reach.

PERIOD OF STUDY

The period of study is from January 2021 to March 2021 which is three
months of study

LIMITATION OF THE STUDY

The information provided by the investor was used to conduct the current
study's analysis. The study was limited to the Vellore District, and only 105
people were considered due to time constraints. The outcome is entirely
dependent on the information provided by the investor, which could be based
on a variety of sources.

76
TOOLS USED

The analytical tools used are SPSS for testing the hypothesis, Chi Square test
in SPSS tool and ANOVA in SPSS tool.

II.MODELING AND ANALYSIS

Table-1: Age group of the Respondents

Age Group No. of Respondents Percentage

Less than 20 0 0

20-30 26 25%

30-40 66 63%

50 and above 13 12%

Total 105 100

Interpretation

From the above table it is interpreted that the 63% of respondents are fall in
the age category of 30-40 years, 25% in 20-30 years and 2% in 50 and
above.

Inference

Majority (63%) of the respondents are 30- 40 age group.

Table-2: Gender of the Respondents

Gender No. of Respondents Percentage

Male 74 70%

Female 31 30%

77
 Total 105 100

Interpretation

From the above table it is interpreted that the 70% respondents are male and
30% respondents are female

Inference

Majority (70%) of the respondents are male.

Table-3: Occupation of the Respondents

Occupation No. of Respondents Percentage

Government Employee 13 13%

Private Employee 36 34%

Business 43 43%

Other (retired, agriculture 13 12%

etc.)

Total 105 100

Interpretation

From the above table it is interpreted that the 41% respondents are says
business, 34% in private employee, 13% in government employee and 12% in
other (retried, agriculture etc.)

Inference

Majority (41%) of the respondents are says business.

78
Table-4: Monthly income of the Respondents

Monthly Income No. of Respondents Percentage

Less Than Rs.50000 51 49%

Rs.50000-Rs.100000 42 40%

More Than Rs.1 Lakh 12 11%

Total 105 100

Interpretation

From the above table it is interpreted that the respondents are falls in monthly
income category of less than Rs.50000, 40% in Rs.50000-Rs.100000 and
11% in more than Rs.1 lakh.

Inference

Majority (49%) of the respondents are falls in monthly income category of less
than Rs.50000.

Table-5: Annual savings of the Respondents

Annual Savings No. of Respondents Percentage

Less Than Rs.50000 58 55%

Rs.50000-Rs.100000 36 36%

More Than Rs.1 Lakh 09 9%

Total 105 100

79
Interpretation

From the above table it is interpreted that the respondents are says annual
saving less than Rs.50000, 36% in Rs.50000-Rs.100000 and 9% in more than
Rs.1 lakh

Inference

Majority (55%) of the respondents are says annual saying is less than
Rs.50000.

Table-6: Source of awareness of the Respondents

Source of Awareness No. of Respondents Percentage

Newspapers Magazine 17 18%

Internet 41 43%

Television 16 17%

Relatives and Friend 21 22%

Total 105 100

Interpretation

From the above table it is interpreted that the 43% of the respondents are
aware of the mutual fund investment through internet, 22% in relatives and
friends, 18% in newspaper magazine and 17% in television.

Inference

Majority (43%) of the respondents are aware of the mutual fund investments
through internet

80
Table-7: Factors influencing investment in Mutual Fund

Most Less Not at all

Important Important Important
Influence Factor Important Neutral Total

High Risk 36 46 19 4 0 105

Tax Saving 32 45 26 2 0 105

Liquidity of 24 49 29 2 1 105
Fund

Safety and 23 52 25 4 1 105

Security

Regular Income 19 52 24 8 2 105

Regular Saving 19 49 29 6 2 105

Risk Involved 17 52 26 3 7 105

Diversification 17 52 24 12 0 105

Easy Payment 20 46 23 12 4 105

Interpretation

From the above table it is interpreted that the 17% of the respondents are
influencing for high risk, 16% in tax saving, 12% in liquidity of fund, 11% in
safety and security, 10% in easy payment, 9% in regular saving, 9% in regular
income risk, 8% in risk involved and 8% in diversification.

Inference

The Majority (17%) of the respondents are influencing for high risk.

81
Table-8: Investor satisfaction levels of various motivating factors

Influence Highly Satisfied Neutral Dissatisfi Highly Total

factor satisfied ed dissatisfi
ed

High risk 24 36 38 7 0 105

Tax saving 26 48 27 2 2 105

Liquidity of
33 39 25 6 2
fund 105

Safety and
37 35 23 7 3
security 105

Regular
23 42 33 7 0
income 105

Regular
17 48 27 4 9
saving 105

Risk
17 45 38 4 1
involved 105

Diversificati
13 38 46 4 4
on 105

Easy
17 42 39 6 1
payment 105

Interpretation

From the above table it is interpreted that the 18% of the respondents are
influencing factor for safety and security, 16% in liquidity of fund, 13% in tax

82
saving, 12% in high risk, 11% in regular income, 8% in regular saving.8% in
risk involved, 8% in easy payment and 6% in diversification.

Inference

The Majority (18%) of the respondents motivating factor is safety and security.

Table-9: Method of purchase Mutual Fund unit

Purchase No. of Respondents Percentage

Direct Purchase 64 61%

Through Brokers 41 39%

Total 105 100

Interpretation

From the above table it is interpreted that the 61% of the respondents are to
purchase the mutual fund units directly and 39% in through brokers.

Inference

Majority (61%) respondents are purchase the mutual fund units directly.

Table-10: Aware of risk involved in Mutual Fund investment

Aware of Risk No. of Respondents Percentage

Yes 92 88%

No 12 12%

Total 105 100

Interpretation

From the above table it is interpreted that the 88% of the respondents are
aware of the risk involved in the mutual fund investment, and the remaining
12% of the respondents are not aware of the risk involved in the mutual fund.

83
Inference

The Majority (88%) of the respondents are aware of the risk involved in the
mutual fund investment.

Table-11: Problems faced by investors in Mutual Fund

Problem Faced No. of Respondents Percentage

Low Income 13 15%

Unable to Aware Market 17 19%

Delay in Selling Unit 20 22%

Fees and Commission 18 20%

Poor Service of Broker 9 10%

Poor Service of Mutual Fund 7 7%

Company

Non Availability of Branch 5 5%

Total 105 100

Interpretation

From the above table it is interpreted that the 22% of the respondent’s
problem is delay in selling unit, 20% in fees and commission, 19% in unable
to aware of market.15% in low income, 10% in poor service of broker, 8% in
poor service of mutual fund company and 6% in non-availability of branch,

Inference

Majority (22%) of the respondent’s problem is delay in selling unit

84
Table-12: Mode of investment

Mode of Investment No. of Respondents Percentage

One Time Investment 46 44%

Systemic Investment Plan 59 56%

Total 105 100

Interpretation

From the above table it is interpreted that the 56% of the respondents are to
invest in mutual fund systematically, and 44% in one-time investors.

Inference

Majority (56%) of the respondents are investing in mutual fund systematically

Table-13: Investment experience in Mutual Fund

Experience No. of Respondents Percentage

Less than 2 Years 55 52%

2 Years to 6 Years 36 34%

6 Years to 10 Years 12 12%

Above 10 Years 02 2%

Total 105 100

Interpretation

From the above table it is interpreted that the 52% of respondents are less
than 2 years’ experience, 36% in years to 6 years’ experience, 12% in 6 years
to 10 years’ experience and 2% in above 10 years’ experience.

85
Inference

Majority (52%) of the respondents are less than 2 years’ experience.

Table-14: Duration of time preferred by Respondents

Duration of Time No. of Respondents Percentage

Up to 1 Year to 2 Year 45 43%

1 Year to 3 Years 31 29%

3 Years to 5 Years 23 22%

Above 10 Years 6 6%

Total 105 100

Interpretation

From the above table it is interpreted that the 43% of the respondents are
duration of investment is up to 1 year to 2 years, 29% in 1 year to 3 years,
22% in 3years to 5 years and 6% in above 10 years,

Inference

Majority (43%) of the respondents are duration of investment is up to 1 year to

2 years.

Table-15: The respondent ‘preference of schemes

schemes No. of Respondents Percentage

Close Ended 47 45%

Open Ended 58 55%

Total 105 100

86
Interpretation

From the above table it is interpreted that the 55% of the respondents are
preferred to invest in open-ended invest, and 45% in close ended invest.

Inference

The Majority (55%) of the respondents are preferred to invest in open-ended

investment.

Table-16: The respondents prefer to reinvest in Mutual Fund

Prefer to Reinvest No. of Respondents Percentage

Yes 76 72%

No 29 28%

Total 105 100

Interpretation

From the above table it is interpreted that the 72% of the respondents are
preferred to reinvest in mutual funds, and 28% of the respondents are not
preferred to invest in mutual fund.

Inference

Majority (72%) of the respondents are preferred to reinvesting in mutual

funds.

Table-17: The respondents think good options to invest in Mutual Fund

Good Option to Invest No. of Respondents Percentage

Strongly Agree 23 22%

Agree 37 35%

Neutral 41 39%

Disagree 04 4%

87
 Strongly Disagree 0 0

Total 105 100

Interpretation

From the above table it is interpreted that the 39% of the respondents are
says neutral good option to invest mutual fund is, 35% to agree, 22% to
strongly agree and 4% to disagree.

Inference

Majority (39%) of the respondents are says good option to invest mutual fund.

Table-18: Prefer friend and relatives to invest in Mutual Fund

Prefer anyone to Invest No. of Respondents Percentage

Yes 85 81%

No 20 19%

Total 105 100

Interpretation

From the above table it is interpreted that the81% of the respondents are
preferred friend and relatives to invest in mutual fund, and the remaining 19%
of the respondents are not preferred friend and relatives to invest in mutual
fund.

Inference

Majority (81%) of the respondents are preferred friend and relatives to invest
in mutual fund.

88
CHI-SQUARE

Table showing the association between the problems faced by investor

in mutual fund and good opinion to invest in mutual fund

Null hypothesis (H0) -There is no association between the problems faced by

investor in mutual fund and good opinion to invest in mutual fund

Alternative hypothesis (H1) - There is association between the problems

faced by investor in mutual fund and good opinion to invest in mutual fund.

Cross Processing Summary

Cases

Total

Valid Missing

N PercentNPercent N Percent

problem faced by investor * good opinion to 105 100.0% 0 0.0% 105 100.0%
invest in mutual fund

Value df Asymp. Sig.(2-sided)

Pearson Chi-Square 16.308a

Likelihood Ratio N of 19.275 18 .571

Valid Cases
105 18 .375

a. 20 cells (71.4%) have expected count less than 5. The minimum expected
count is .14.

Since p value is higher than 0.05, we accept null hypothesis and reject the
alternative. There is no significance difference between the problem faced by
investor in mutual fund and good opinion to invest in mutual fund

89
ANOVA ANALYSIS

Table showing the association between the Age and Monthly Income

Null hypothesis (H0) - There is no association between Age Group and

Monthly Income. Alternative hypothesis (H1) - There is association between
Age Group and Monthly Income.

Sum of df Mean F Sig.

Squares Square

Between .793 3 .397 .499 .609

Groups

Within 81.168 102 .769

Groups

Total 81.962 105

Since p value is higher than 0.05, we accept null hypothesis and reject the
alternative. There is no significance difference between age group and
Monthly income

90
 III.FINDING AND SUGGESTION

Findings:

 The majority of the respondents 63% are between the ages of 30 and
40.

 Males account for 70% of the respondents.

 Business is mentioned by 41% of those polled.

 A total of 49% of the respondents have a monthly income of less than

Rs.50000.

 According to the survey, 55% of respondents save less than $50,000

per year.

 43 percent of those polled are aware that they can invest in mutual
funds through the internet.

 Yes, said 61 percent of those polled. 88 percent of those polled are

aware of the dangers of investing in mutual funds.

 Delay in selling a unit is a problem for 22% of respondents.

 Sixty-six percent of respondents 56% invest in mutual funds on a

regular basis.

 The majority of the respondents 52% have less than two years of
experience.

 For 43 percent of respondents, the average investment time is between

one and two years. The majority of respondents 55% prefer to invest in
open-ended funds.

 Reinvesting in mutual funds is preferred by 72 percent of respondents.

 According to 39% of respondents, mutual funds are a good choice for

investing. Friends and families are favored by 81 percent of
respondents to invest in mutual funds.

91
Findings of Chi-Square:

 There is no significance difference between the problem faced by

investor in mutual fund and good opinion investing in a mutual fund is a
great way to diversify your portfolio.

Findings of ANOVA:

 There is no significance difference between age group and Monthly

income.

Suggestion:

Efforts should be made to promote or improve mutual fund online trading. This
will save you both time and money. They can easily sell or buy any amount of
money whenever they want. The mutual fund industry must also assist
individuals in mobilizing their savings so that they can maximize their returns.
They need returns after they've invested in a mutual fund, and if it isn't
providing them, they'll be disappointed. Proper returns to them again it is
affecting the interest of the Investors should put their money into a mutual
fund. They should provide more information about their investment products
and services, which implies that they should focus on marketing their
schemes. Some investors suggested that the fund values of mutual fund
investments be communicated to investors via SMS every two weeks. This
will assist investors in staying current with the latest developments.

92
 VI.CONCLUSION

The minds of the investing public are on the lookout for investments that are
both safe and profitable. The purpose of this study was to determine the
factors that influence an investor's perception of mutual fund investment. It
should be noted that middle-income investors agree that consistent income
and investment liquidity are critical. It's easy to believe that high risk equals
high reward a high rate of return on investment The funds' performance will be
enhanced by their versatility in investment. There is a possibility that investors
of various ages will look for factors other than those considered in the study to
entice them to invest in the mutual fund industry. It is necessary to take steps
to boost investor trust and morale. This can be accomplished through
effective communication and investor education about mutual funds. Sensible
and accurate information should be communicated to them via different
communication channels so that they are aware of current market trends.
Mutual funds are now and will continue to be the country's only financial
instrument.

93
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