Anda di halaman 1dari 47

CHAPTER 1

INTRODUCTION
A mutual fund is a type of professionally-managed collective investment vehicle that
pools money from many investors to purchase securities. As there is no legal definition of mutual
fund, the term is frequently applied only to those collective investments that are regulated,
available to the general public and open-ended in nature. Unit Trust of India is the first mutual
fund set up under a separate act, UTI Act in 1963, and started its operations in 1964 with the
issue of units under the scheme US-64. In India, mutual funds must be registered with Securities
Exchange Board of India (SEBI) is the regulatory body for all the mutual funds. The only
exception is the UTI, since it is a corporation formed under a separate Act of Parliament. Mutual
funds have both advantages and disadvantages compared to direct investing in individual
securities. Today they play an important role in household finances. The first mutual funds were
established in Europe in 1774. The first mutual fund outside the Netherlands was the Foreign &
Colonial Government Trust, which was established in London in 1868. Mutual funds were
introduced into the United States in the 1890s. They became popular during the 1920s. These
early funds were generally of the closed-end type with a fixed number of shares which often
traded at prices above the value of the portfolio. The first open-end mutual fund with redeemable
shares was established on March 21, 1924. MUTUAL FUNDS IN INDIA In India mutual funds
are divided in to balanced funds, Income fund, Growth funds, Sector funds, etc. Equity funds
mainly consist of common shares and stocks of companies listed in the stock exchanges. They
are considered risky but are likely to give higher return in the longer run. Fixed income funds:
Also known as low risk funds, these funds mainly invest in government and corporate securities
(debentures) with fixed amount of returns, which are generally moderate. Balanced funds are
basically a combination of both bonds and stocks, which involves moderate to little risk. Hybrid
funds include other investment classes in their portfolio like gold apart from equity and debt.
Since April 2011, the mutual fund industry clocked a 3% growth in its average Assets Under
Management (AUM) to touch Rs. 7.53 lakh cr in August (month-on-month) on the back of
higher inflows into liquid and income funds. (Crisil Report-September 2012). Mutual funds have
advantages compared to direct investing in individual securities. These include increased
diversification, daily liquidity, professional investment management, ability to participate in
investments that may be available only to larger investors, service and convenience, government
oversight and ease of comparison. Mutual funds have disadvantages as well, which include fees,
less control over timing of recognition of gains, less predictable income and no opportunity to
customize. Top 10 mutual funds in India are ICICI Prudential Top 100, Escorts Income Plan-
Gro, Reliance RSF – Balanced, DSP Black Rock MIP Fund, Escorts Liquid Plan – Gr, Reliance
Equity Linked S, MOSt Shares NASDAQ 100, Baroda Pioneer Gilt Fund, IDFC Nifty Fund –
Growth. SEBI Guidelines Pertaining to Mutual Funds: SEBI is the regulatory authority of MFs.
SEBI has the following broad guidelines pertaining to mutual funds: They are MFs should be
formed as a Trust under Indian Trust Act and should be operated by Asset Management
Companies (AMCs). MFs need to set up a Board of Trustees and Trustee Companies. They
should also have their Board of Directors. The net worth of the AMCs should be at least Rs. 5 cr.
AMCs and Trustees of a MF should be two separate and distinct legal entities. The AMC or any
of its companies cannot act as managers for any other fund. AMCs have to get the approval of
SEBI for its Articles and Memorandum of Association. All MF schemes should be registered
with SEBI. MFs should distribute minimum of 90% of their profits among the investors. There
are other guidelines also that govern investment strategy, disclosure norms and advertising code
for mutual funds.
STATEMENT OF THE PROBLEM

Mutual funds pool the funds of small investor and invest it in the securities. As the
investors do not know in which portfolio the fund managers will go investment, the performance
such as the risk and the return associated with each fund type will only affect the investor. Here
the risk associated with each type will vary, hence the return will also vary. Since the investors
are investing based on the scheme category such as private or public sector funds.

Costs are the biggest problems with mutual funds. These costs eat into our return and
they are the main reason why the majority of funds reason why the majority of funds end up with
sub par performance. Some cities of the industry say that mutual funds companies get away with
the fees they charges only the average investors does not understand what he/she is paying for:
fees can be broken allow into two categories.

1. On going yearly fees to keep is invested in the fund.


2. Transaction fees paid when we buy or sell shares in a fund.

Benefits of Investing in Mutual Funds:

Professional Management

When you invest in a mutual fund, your money is managed by finance professionals. Investors
who do not have the time or skill to manage their own portfolio can invest in mutual funds. By
investing in mutual funds, you can gain the services of professional fund managers, which would
otherwise be costly for an individual investor.

Diversification

Mutual funds provide the benefit of diversification across different sectors and companies.
Mutual funds widen investments across various industries and asset classes. Thus, by investing
in a mutual fund, you can gain from the benefits of diversification and asset allocation, without
investing a large amount of money that would be required to build an individual portfolio.
Liquidity

Mutual funds are usually very liquid investments. Unless they have a pre-specified lock-in
period, your money is available to you anytime you want subject to exit load, if any. Normally
funds take a couple of days for returning your money to you. Since they are well integrated with
the banking system, most funds can transfer the money directly to your bank account.

Flexibility

Investors can benefit from the convenience and flexibility offered by mutual funds to invest in a
wide range of schemes. The option of systematic (at regular intervals) investment and
withdrawal is also offered to investors in most open-ended schemes. Depending on one’s
inclinations and convenience one can invest or withdraw funds.

Low Transaction Cost

Due to economies of scale, mutual funds pay lower transaction costs. The benefits are passed on
to mutual fund investors, which may not be enjoyed by an individual who enters the market
directly.

Transparency Funds

provide investors with updated information pertaining to the markets and schemes through
factsheets; offer documents, annual reports etc.

Well Regulated

Mutual funds in India are regulated and monitored by the Securities and Exchange Board of
India (SEBI), which endeavors to protect the interests of investors. All funds are registered with
SEBI and complete transparency is enforced. Mutual funds are required to provide investors with
standard information about their investments, in addition to other disclosures like specific
investments made by the scheme and the quantity of investment in each asset class.
Risk Involved in Investing in Mutual Funds

 The biggest risk of investing in a mutual fund is one of underperformance. When an investor
decides to invest in a particular asset class, he typically expects to get the return that the
benchmark of the asset provides.

 For example, if someone is investing in large-cap equity stocks, he would expect to make at
least as much return (with similar risk) as a benchmark index, say Sensex or Nifty.

 Mutual funds try to maximize the returns on the funds invested through them -- but all of the
funds cannot succeed an outperforming each other or the benchmark. Hence, some of them
under-perform the benchmark.

 Similarly, the cost of investing in a mutual fund (discussed below), eats in the returns. In high
return years (like the last few years, where returns have been in the high 30% in equity, 2% costs
may not make a material impact: however, at more moderate or negative returns, costs can be a
big inch).

 The other risk with mutual funds is 'style drift.' If you invest in a large cap fund and it begins to
invest in mid cap stocks, or if you invest in a long term debt fund but it starts to invest a greater
proportion in cash instruments, you might not the type of risk return reward that you have been
expecting.

 Change of the fund manager can also introduce an element of risk into your portfolio. There is
a wide debate as to whether investing is a science or an art: most authorities concede that it is a
blend of the two. If so, the artist may contribute to the success of the returns

SCOPE OF THE STUDY

This study was undertaken with the existing mutual funds in the websites. This funds are
already used by the researcher for the analysis.

This study covers various schemes for analysis. They are HDFC mutual fund, Kotak
mutual fund, blue chip mutual fund.
OBJECTIVES

 To identify the preference level of investment in mutual fund.


 To examine the factors influencing while investing in mutual fund.
 To analyse the investor’s satisfaction with investment in mutual fund.
 To study the problems faced in investment of mutual fund.
LIMITATIONS OF THE STUDY
 Analysis and interpretation is only based on the open - end schemes.
 Dividend schemes were not taken into consideration in this study.
 This study considers the period between 2018-2019 and before and after this period
were not taken into consideration.
 The analysis and interpretation of the fund is based only on the past performance.
RESEARCH METHODOLOGY

Source of Data

The present study is based on primary data which was collected using questionnaire method.

Sample Size

The sample size is 150

Data Collection

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

Statistical Tools

Research design

For this study descriptive method is used for analyzing the performance of the funds.
Descriptive research study is concerned with describing the characteristics of particular
individual or of a group. In descriptive analysis the researcher must be able to define clearly,
what he wants to measure and must find adequate methods for measuring analysis.
CHAPTER 2

LITERATURE REVIEW

Dr. Ravi Vyas,

conducted study on mutual fund investor’s behavior and perception in Indore city 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 more than 3 years and
they used to quit from The fund which was 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.

Dr. Binod Kumar Singh

In this paper, structure of mutual fund, operations of mutual fund, comparison between
investment in mutual fund and bank and calculation of NAV etc. have been considered. In this
paper, the impacts of various demographic factors on investors’ attitude towards mutual fund
have been studied. For measuring various phenomena and analyzing the collected data
effectively and efficiently for drawing sound conclusions, Chi-square ( ) test has been used and
for analyzing the various factors responsible for investment in mutual funds, ranking was done
on the basis of weighted scores and scoring was also done on the basis of scale. The study shows
that most of respondents are still confused about the mutual funds and have not formed any
attitude towards the mutual fund for investment purpose. It has been observed that most of the
respondents having lack of awareness about the various function of mutual funds. Moreover, as
far as the demographic factors are concerned, gender, income and level of education have
significantly influence the investors’ ’ attitude towards mutual funds. On the other hand the other
two demographic factors like age and occupation have not been found influencing the attitude of
investors’ ’ towards mutual funds. As far as the benefits provided by mutual funds are
concerned, return potential and liquidity have been perceived to be most attractive by the
invertors’ followed by flexibility, transparency and affordability. Apart form the above, in India
there is a lot of scope for the growth of mutual fund International Journal of Research in
Management ISSN 2249-5908 Issue2, Vol. 2 (March-2012) Page 68 companies provided that the
funds satisfy everybody’s needs and sharp improvements in service standards and disclosure.

Prof Gauri Prabhu, Dr N.M. Vechalekar

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 averse investors. Monthly Income Plan funds
offer monthly returns and invest majorly in debt oriented instruments with little exposure to
equity. However it has been observed that most of the investors are not aware of the benefits of
investment in mutual funds. This is reflected from the study conducted in this research paper.
This paper makes an attempt to identify various factors affecting perception of investors
regarding investment in Mutual funds. The findings will help mutual fund companies to identify
the areas required for improvement in order to create greater awareness among investors
regarding investment in mutual funds.

Dr. Shantanu Mehta, Charmi Shah

The survey is undertaken of 100 educated investors of Ahmedabad and Baroda city and the
major findings reveal the major factors that influence buying behavior mutual funds investors,
sources that investor rely more while making investment and preferable mode to invest in mutual
funds market. The study will be immensely useful to the AMC';s, Brokers, distributors and to the
other potential investors and last but not least to academician as well.

Gaurav Agrawal & Dr. Mini Jain

In today’s competitive environment, different kinds of investment avenues are available to the
investors. All investment modes have advantages & disadvantages. An investor tries to balance
these benefits and shortcomings of different investment modes before investing in them. Among
various investment modes, Mutual Fund is the most suitable investment mode for the common
man, as it offers an opportunity to invest in a diversified and professionally managed portfolio at
a relatively low cost. In this paper, an attempt is made to study mainly the investment avenue
preferred by the investors of Mathura, and we have tried to analyze the investor’s preference
towards investment in mutual funds when other investment avenues are also available in the
market.

R Padmaja

A mutual fund is a type of professionally-managed collective investment vehicle that pools


money from many investors to purchase securities. As there is no legal definition of mutual fund,
the term is frequently applied only to those collective investments that are regulated, available to
the general public and open-ended in nature. Mutual funds have both advantages and
disadvantages compared to direct investing in individual securities. Today they play an important
role in household finances. So the present study aims at consumer behavior towards mutual
funds with special reference to ICICI Prudential Mutual Funds Limited, Vijayawada. Data was
collected through primary and secondary sources. Primary data was collected through structured
questionnaire. Convenience sampling method was used to collect the data and entire study was
conducted in Vijayawada City. The study explains about investors’ awareness towards mutual
funds, investor perceptions, their preferences and the extent of satisfaction towards mutual funds.
Some suggestions were also made to increase the awareness towards mutual funds and measures
to select appropriate mutual funds to maximize the returns .

Dr. D. Rajasekar

A Study on Investor’s preference of mutual funds with reference to reliance private limited‖ a
project which is mainly carried out to know about the investor’s perception with regard to their
profile, income, savings pattern, investment patterns and their personality traits. In order to
understand the level of investor’s preference, a survey was conducted taking in to consideration
various parameters involved in investors decision making. For the purpose of evaluation, a
questionnaire survey method was selected keeping in mind objectives of the study. The data was
collected from primary and secondary sources. The primary sources were collected from the
investors who invested in various avenues. The secondary sources are from books, journals and
internet. Since the investor population is vast a sample size of 150 was taken for the project. The
data was analyzed using the statistical tools like percentage analysis, chi square, weighted
average. The report was concluded with findings and suggestions and summary. From the
findings, it was inferred overall that the investor are highly concerned about safety and growth
and liquidity of investments. Most of the respondents are highly satisfied with the benefits and
the service rendered by the reliance mutual funds.

Dr. Geeta Kesavaraj

The researcher carried out the study with the aim to measure the ―Customer Perception towards
various types of Mutual Funds". It focuses its attention towards the possibilities of measuring the
expectations and satisfaction level of more mutual fund products. It also aims to suggest
techniques to improve the present level of perception. The study will help the firm in
understanding the expectations, future needs and requirements and complaints of the consumers.
The study had been dedicated mainly towards the promotion of product or concept in the
Chennai Market. The researcher used the Descriptive type of research design in her study. The
researcher used the Primary data collection method in her study by framing a structured
Questionnaire. The researcher went with convenient type of sampling method in her study. The
sample is taken as 204 by the researcher. For the purpose of Analysis and Interpretation the
researcher used the following statistical tools namely Simple Percentage Analysis, Chi-Square
Test, Karl Pearson's Correlation and One way Anova. Based on the Analysis and Interpretation
the researcher arrived out with the major findings in her study and Suggestions are given in such
a way so that the customers can attain the wealth maximization.

Y. Prabhavathi, N.T. Krishna Kishore

The advent of Mutual Funds changed the way the world invested their money. The start of
Mutual Funds gave an opportunity to the common man to hope of high returns from their
investments when compared to other traditional sources of investment .The main focus of the
study is to understand the attitude, awareness and preferences of mutual fund investors. Most of
the respondents prefer systematic investment plans and got their source of information primarily
from banks and financial advisors. Investors preferred mutual funds mainly for professional fund
management and better returns and assessed funds mainly through Net Asset Values and past
performance.
Pritam P. Kothari & Shivganga C. Mindargi

This study analyzes the impact of different demographic variables on the attitude of investors
towards mutual funds. Apart from this, it also focuses on the benefits delivered by mutual funds
to investors. To this end, 200 respondents of Solapur City, having different demographic profiles
were surveyed. The study reveals that the majority of investors have still not formed any attitude
towards mutual fund investments.

Dhimen Jagdishbhai Jani,

Bhautik Alpeshkumar Patel & Rajeev V. Jain This study focused on the consumer’s perception
towards mutual fund as an investment option in Valsad city from Gujarat. They revealed that
Consumers perception were positive toward investment in mutual funds.
CHAPTER 3

INDUSTRY PROFILE

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 are 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
ORGANIZATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizatio
nal set up of a mutual fund

ADVANTAGES OF MUTUAL FUNDS

 Professional Management
 Diversification
 Convenient Administration
 Return Potential
 Low Costs
 Liquidity
 Transparency
 Flexibility
 Choice of schemes
 Tax benefits
 Well regulated
TYPES OF MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exist to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview into the
existing types of schemes in the Industry.

TERMS USED IN MUTUAL FUND

Net Asset Value (NAV)

Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per
unit NAV is the net asset value of the scheme divided by the number of units outstanding on the
Valuation Date.

Sale Price

Is the price we pay when we invest in a scheme. Also called Offer Price. It may include
a sales load.
Repurchase Price

Is the price at which a close-ended scheme repurchases its units and it may include a
back-end load. This is also called Bid Price.

Redemption Price

Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. Such prices are NAV related.

Sales Load

Is a charge collected by a scheme when it sells the units. Also called, ‘Front-end’ load.
Schemes that do not charge a load are called ‘No Load’ schemes.

Repurchase or ‘Back-end’ Load

Is a charge collected by a scheme when it buys back the units from the unit holders.
DATA ANALYSIS AND INTERPRETATION

Frequency Table

Respondents of age

Cumulative
Frequency Percent Valid Percent Percent

Valid below30years 71 35.5 35.5 35.5

30-40years 75 37.5 37.5 73.0

40-50years 34 17.0 17.0 90.0

above 50years 20 10.0 10.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Most of 37 Percent of the respondents age is 30-40years, 35 percent


respondents age group is below30, 17 percent of the respondents age is 40-50
years and least 10 percent of the respondents age is above 50.
Respondance of marital status

Cumulative
Frequency Percent Valid Percent Percent

Valid single 74 37.0 37.0 37.0

married 126 63.0 63.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Majority of 63 percent of the respondents are married and rest of 37 percent respondents
is single
Respondents of family type

Cumulative
Frequency Percent Valid Percent Percent

Valid nuclear 90 45.0 45.0 45.0

joint 110 55.0 55.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 55 percent of the respondents from joint family and another 45 percent is nuclear family.
Respondents of gender

Cumulative
Frequency Percent Valid Percent Percent

Valid male 117 58.5 58.5 58.5

female 83 41.5 41.5 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Most of the 58 percent respondents are male and 41 percent is female.


Respondance of occupation status

Cumulative
Frequency Percent Valid Percent Percent

Valid private job 102 51.0 51.0 51.0

govt job 63 31.5 31.5 82.5

business 35 17.5 17.5 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 There are 51 percent people are from private job, 31 percent respondents are having govt
job and the balance 17 percent of the respondents are doing business.
Respondance of monthly income

Cumulative
Frequency Percent Valid Percent Percent

Valid below rs,50,000 49 24.5 24.5 24.5

rs.50,000-rs.1,00,000 40 20.0 20.0 44.5

rs.1,00,000-rs.1,50,000 39 19.5 19.5 64.0

Above rs.1,50,000 72 36.0 36.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Most of the 36 percent respondents salary is above 1,50,000, 24 percent respondents are
below 50,000, 20 percent of respondents are 50,000 – 1,00,000 and the rest of 19 percent
respondents are 1,00,000 – 1,50,000.
Respondents of what do you look before investing in particular investment?

Cumulative
Frequency Percent Valid Percent Percent

Valid returns 103 51.5 51.5 51.5

locking period 32 16.0 16.0 67.5

locking period 30 15.0 15.0 82.5

risk 19 9.5 9.5 92.0

type of investment option 16 8.0 8.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Majority of 51 percent respondents are look before investment is returns,16 percent of


respondent is for minimum level of investment,45 percent of respondents is locking
period,9 percent of people looking risk, and the least 8 percent respondents is looking
type of investment option.
Respondance of sources of knowledge about mutual fund investment?

Cumulative
Frequency Percent Valid Percent Percent

Valid Television 37 18.5 18.5 18.5

Internet 69 34.5 34.5 53.0

Newspaper/Journals 43 21.5 21.5 74.5

Friends and Relatives 34 17.0 17.0 91.5

Sales representative 17 8.5 8.5 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Majority of 34 percent of respondents is getting news from internet, 21 percent


respondents from newspapers, 18 percent of respondents from television, 17 percent
respondents from friends and relatives, and balance 8 percent respondents from sales
representatives.
Respondance of to which period you prefer to invest in mutual fund?

Cumulative
Frequency Percent Valid Percent Percent

Valid Less than 1year 36 18.0 18.0 18.0

1-3year 90 45.0 45.0 63.0

3-5year 74 37.0 37.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Majority of 45 percent of people investing for 1 – 3 years, 37 percent people for 3 – 5


years, rest of 18 percent people for less than 1year.
Respondance of to which types of investment schemes you prefer to investin mutual
fund

Cumulative
Frequency Percent Valid Percent Percent

Valid Equity 35 17.5 17.5 17.5

Debit 18 9.0 9.0 26.5

Hybrid 53 26.5 26.5 53.0

Gilt fund 19 9.5 9.5 62.5

Growth schemes 22 11.0 11.0 73.5

Income schemes 17 8.5 8.5 82.0

Balanced schemes 22 11.0 11.0 93.0

Liquid schemes 14 7.0 7.0 100.0

Total 200 100.0 100.0

No. of consumers surveyed: 200


Source : primary data (Questionnaire)

 Majority of 26 percent respondents investment scheme is hybrid, 17 percent respondents


is for equity, 11 percent of the people is selected growth scheme and balanced scheme,
9percent of the respondents selected debit and gilt fund, 8 percent of the respondents
selected income scheme, and least 7 percent of the respondents is for liquid scheme.
Pie Chart
ANOVA
Descriptives

AVGFIM

95% Confidence Interval for


Mean
Std.
N Mean Deviation Std. Error Lower Bound Upper Bound Minimum Maximum

below30years 71 2.3052 .19311 .02292 2.2595 2.3509 1.92 2.75

30-40years 75 2.2867 .21101 .02437 2.2381 2.3352 1.92 3.00

40-50years 34 2.3064 .19648 .03370 2.2378 2.3749 1.92 2.75

above 50years 20 2.3792 .21370 .04779 2.2792 2.4792 2.00 2.67

Total 200 2.3058 .20277 .01434 2.2776 2.3341 1.92 3.00

Source : Computed
The highest mean value 2.3792 is found among the age group between above 50 years the
respondents. Hence it is inferred that those respondents have high opinion towards the mutual
fund investment when compared to other age group of the respondents.

ANOVA

AVGFIM

Sum of Squares df Mean Square F Sig.

Between Groups .135 3 .045 1.097 .351

Within Groups 8.047 196 .041

Total 8.182 199

NS- Not significant at 5% level of significant


The ANOVA result shows that the significant value is .351which is greater than the 5% level of
significance. Since it is inferred that the opinion towards mutual fund is no significantly differ
among the age group of the respondents.

Hence, the null hypothesis is accepted.


Descriptives

AVGFIM

95% Confidence Interval for


Mean
Std.
N Mean Deviation Std. Error Lower Bound Upper Bound Minimum Maximum

below rs,50,000 49 2.3656 .18774 .02682 2.3117 2.4196 1.92 3.00

rs.50,000-rs.1,00,000 40 2.3312 .20280 .03207 2.2664 2.3961 2.00 2.75

rs.1,00,000-rs.1,50,000 39 2.3355 .19354 .03099 2.2727 2.3982 2.00 2.75

Above rs.1,50,000 72 2.2350 .20090 .02368 2.1877 2.2822 1.92 2.75

Total 200 2.3058 .20277 .01434 2.2776 2.3341 1.92 3.00

Source : Computed
The highest mean value 2.3656 is found among the family monthly income of below
50,000 of the respondents. Hence it is inferred that income of below 50,000 have high opinion
towards mutual funds when compared to other family monthly income group of the respondents.

ANOVA

AVGFIM

Sum of Squares df Mean Square F Sig.

Between Groups .597 3 .199 5.143 .002

Within Groups 7.585 196 .039

Total 8.182 199


NS- Not significant at 5% level of significant
The ANOVA result shows that the significant value is .002 which is less than the 5% level of
significance. Since it is inferred that the opinion towards mutual fund is does no differ
significantly among the family monthly income of the respondents.
Hence, the null hypothesis is Rejected.
Descriptives

AVGFIM

95% Confidence Interval for


Mean
Std.
N Mean Deviation Std. Error Lower Bound Upper Bound Minimum Maximum

returns 103 2.2824 .21076 .02077 2.2412 2.3236 1.92 3.00

locking period 32 2.3698 .13543 .02394 2.3210 2.4186 2.00 2.58

locking period 30 2.2917 .19908 .03635 2.2173 2.3660 1.92 2.67

risk 19 2.3509 .21798 .05001 2.2458 2.4559 1.92 2.75

type of investment
16 2.3021 .23741 .05935 2.1756 2.4286 1.92 2.75
option

Total 200 2.3058 .20277 .01434 2.2776 2.3341 1.92 3.00

Source : Computed
The highest mean value 2.3509 is found among the preference of risk . Hence it is
inferred risk have high opinion towards mutual funds when compared to other optin group of the
respondents.

ANOVA

AVGFIM

Sum of Squares df Mean Square F Sig.

Between Groups .232 4 .058 1.425 .227

Within Groups 7.950 195 .041

Total 8.182 199


NS- Not significant at 5% level of significant
The ANOVA result shows that the significant value is .227 which is greater than the 5% level of
significance. Since it is inferred that the opinion towards risk is does no differ significantly
among the other factors of the respondents.
Hence, the null hypothesis is accepted.
Descriptives

AVGFIM

95% Confidence Interval for


Mean

N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum

Television 37 2.3694 .20837 .03426 2.2999 2.4388 1.92 3.00

Internet 69 2.3309 .19279 .02321 2.2846 2.3772 2.00 2.75

Newspaper/Journals 43 2.2849 .21611 .03296 2.2184 2.3514 1.92 2.75

Friends and Relatives 34 2.2426 .19285 .03307 2.1754 2.3099 1.92 2.58

Sales representative 17 2.2451 .17547 .04256 2.1549 2.3353 1.92 2.50

Total 200 2.3058 .20277 .01434 2.2776 2.3341 1.92 3.00

Source : Computed
The highest mean value 2.3694 is found among the awareness of the mutual funds. .
Hence it is inferred television have high opinion towards the awreness when compared to other
option group of the respondents.

ANOVA

AVGFIM

Sum of Squares df Mean Square F Sig.

Between Groups .410 4 .103 2.572 .039

Within Groups 7.772 195 .040

Total 8.182 199


NS- Not significant at 5% level of significant
The ANOVA result shows that the significant value is .039 which is greater than the 5% level of
significance. Since it is inferred that the opinion towards awareness is does no differ significantly
among the other factors of the respondents.
Hence, the null hypothesis is accepted.
Descriptives

AVGFIM

95% Confidence Interval for


Mean

N Mean Std. Deviation Std. Error Lower Bound Upper Bound Minimum Maximum

Equity 35 2.3286 .22772 .03849 2.2503 2.4068 1.92 3.00

Debit 18 2.3287 .23824 .05615 2.2102 2.4472 2.00 2.75

Hybrid 53 2.3019 .18215 .02502 2.2517 2.3521 1.92 2.67

Gilt fund 19 2.3202 .19693 .04518 2.2253 2.4151 2.08 2.67

Growth schemes 22 2.3447 .18238 .03888 2.2638 2.4256 1.92 2.58

Income schemes 17 2.3284 .20512 .04975 2.2230 2.4339 1.92 2.67

Balanced schemes 22 2.2159 .17378 .03705 2.1389 2.2930 1.92 2.50

Liquid schemes 14 2.2679 .24059 .06430 2.1289 2.4068 1.92 2.75

Total 200 2.3058 .20277 .01434 2.2776 2.3341 1.92 3.00

Source : Computed
The highest mean value 2.3286 is found among the equity of the mutual funds. . Hence it
is inferred equity have high opinion towards the which the respondents are seeing for when
compared to other option group of the respondents.

ANOVA

AVGFIM

Sum of Squares df Mean Square F Sig.

Between Groups .272 7 .039 .944 .474

Within Groups 7.910 192 .041

Total 8.182 199


NS- Not significant at 5% level of significant
The ANOVA result shows that the significant value is .474 which is greater than the 5% level of
significance. Since it is inferred that the opinion towards equity is does no differ significantly
among the other factors of the respondents.
Hence, the null hypothesis is accepted.
Ranking
“Ranking” refers to the data transformation in which numerical or ordinal values are replaced by
their rank when data are sorted. Ranks are assigned to the values in ascending order (in some
other cases, descending ranks are used). Ranks are related to the indexed list of order statistics,
which consist of the original data set rearranged into ascending order.

Ranks

Mean Rank

TMC 3.92

LTI 4.28

LUO 4.28

LIA 4.22

LII 4.66

NCD 4.80

IAB 5.08

RF 4.78

Test Statisticsa

N 200

Chi-Square 34.672

df 7

Asymp. Sig. .000

From the above table, it is clearly shown that the Insufficient agent and brokers has the
highest mean value (5.08) is ranked higher by the respondents, No clear data mean value (4.80)
is ranked the second highest value and Too Much Choice mean value (3.92) is ranked the least
by the respondents. The ranking as per the above table is valid as the chi square table values
(34.672, p<0.000) are statistically significant.
It is clear that most of the mutual fund risk are caused due to Insufficient agent and
brokers so it is better to increase the agent and brokers which is the result of the analysis done
above.
T-TEST
Group Statistics

Responda
nce of
marital
status N Mean Std. Deviation Std. Error Mean

AVGFIM single 74 2.2646 .20148 .02342

married 126 2.3300 .20039 .01785


Source: computed
From the above table, the highest mean value is found among unmarried (2.3300), hence it is clear
that the respondents who are married are using mutual funds more when compared to single
respondents.

Independent Samples Test

Levene's Test for


Equality of
Variances t-test for Equality of Means

95% Confidence

Mean Std. Error Interval of the

Sig. (2- Differenc Differenc Difference

F Sig. t df tailed) e e Lower Upper

AVG Equal variances


.158 .691 -2.223 198 .027 -.06539 .02941 -.12338 -.00739
FIM assumed

Equal variances 152.4


-2.220 .028 -.06539 .02945 -.12357 -.00721
not assumed 17

The t-test was applied to find whether the mean attitude scores differ significantly between male
and female respondents. The t-test value is greater than the 5% level of significant value. Since it
is inferred that the mutual is differ significantly between married and unmarried respondents.
Hence the null hypothesis is accepted.
Group Statistics

Responde
nts of
family
type N Mean Std. Deviation Std. Error Mean

AVGFIM nuclear 90 2.3222 .18068 .01905

joint 110 2.2924 .21910 .02089


Source: computed
From the above table, the highest mean value is found among Nuclear (2.3222), hence it is clear
that the respondents who are nuclear family are using mutual funds more when compared to joint
family respondents.

Independent Samples Test

Levene's Test for


Equality of
Variances t-test for Equality of Means

95% Confidence

Mean Std. Error Interval of the

Sig. (2- Differenc Differenc Difference

F Sig. t df tailed) e e Lower Upper

AVGF Equal variances


5.908 .016 1.034 198 .302 .02980 .02882 -.02703 .08662
IM assumed

Equal variances 197.9


1.054 .293 .02980 .02827 -.02595 .08555
not assumed 84
The t-test was applied to find whether the mean attitude scores differ significantly
between male and female respondents. The t-test value is greater than the 5% level of significant
value. Since it is inferred that the mutual fund is differ significantly between joint and nuclear
family respondents.
Hence the null hypothesis is accepted.
Group Statistics

Respond
ents of
gender N Mean Std. Deviation Std. Error Mean

AVGFIM male 117 2.2885 .19803 .01831

female 83 2.3303 .20801 .02283


Source: computed
From the above table, the highest mean value is found among Female (2.3303), hence it is clear
that the female respondents are using mutual funds more when compared to male respondents.

Independent Samples Test

Levene's Test for


Equality of
Variances t-test for Equality of Means

95% Confidence

Mean Std. Error Interval of the

Sig. (2- Differenc Differenc Difference

F Sig. t df tailed) e e Lower Upper

AVG Equal variances


.000 .998 -1.442 198 .151 -.04186 .02902 -.09909 .01537
FIM assumed

Equal variances 171.2


-1.430 .154 -.04186 .02927 -.09963 .01591
not assumed 92
The t-test was applied to find whether the mean attitude scores differ significantly
between male and female respondents. The t-test value is greater than the 5% level of significant
value. Since it is inferred that the mutual fund is differ significantly between male and female
respondents.
Hence the null hypothesis is accepted.