TITLE: A Study to Assess the Perception of Mutual Fund Investors
OBJECTIVES
To Analyze the Perception of investors towards mutual funds.
To know the preference of investor toward specific instrument.
To study the level of awareness of mutual funds.
To study the factors considered by the investors and those which
ultimately influence him while investing.
To determine the type of mutual fund investor prefers the most.
LITERATURE REVIEW
The study was all about the investor who were diversifying their risk and what the
attitude towards the investment on mutual fund is. The published relating to the
above topic is reviewed. The relevant literature is reviewed on the basis of
Newspaper, journals and some papers on Conference.
Devakumar.V.K (1987) reveals that earlier to 1985, there were very few investors
and they were knowledgeable. During the 1985 boom, thousands of new investors
invaded the market. The new investors suffered heavy losses compared to the
professionals. A good number of new investors have walked out of the stock
market to safer areas like UTI Units, NSC, etc. There is a mild shift of investment
preferences to mutual funds also.
Sikidar and Singh (1996), carried out a survey with an objective to understand the
behavioral aspects of the investors of the North Eastern Region towards Equity and
MF’s Investment Portfolio.
Shunmugham (2000) conducted a survey of 201 individual investors to study the
information sourcing by investors, their perceptions of various investment strategy
dimensions and the factors motivating share investment decisions and reports that
among the various factors, psychological and sociological factors dominated the
economic factors in share investment decisions.
Ms.T.R.Rajeshwari and V.E.Ramamoorthy under took a study on “Mutual’s
know them investors in the year 2001 with the main aim of measuring the level of
awareness among the retail investors about the concept and functioning of mutual
funds in Mumbai, Bangalore and Hyderabad. The study reveal that more and more
small investors with a great appetite for wealth are entering in to the industry,
expecting a dramatic change in their personal wealth and therefore it is essential to
educate them on the risks involved in mutual funds investment.
Desigan G, Lalaiselvi S and Anusuya L (2006) conducted a study on women
investors’ perception towards investment and found that women investors
generally hesitate in investing in mutual funds due to lack of their knowledge and
awareness regarding investment protection, procedure of making investment,
valuation of investment and redressal of grievances regarding their investment
related problems.
Dr. Neha Parashar (2009) presented a paper on factors affecting perception
towards mutual funds. For this purpose she collected the data from 300
respondents from different states and showed in the study that perception towards
mutual fund is differ from one state to another.
Singh and Jha (2009) conducted a study on awareness and acceptability of mutual
fund and found that consumers basically prefer mutual fund due to return potential,
liquidity and safety and they were not fully aware about the systematic investment
plan.
Parihar B B S, Sharma R and Parihar D.S (2009) also studied that respondent’s
age, gender and income are significantly associated with their attitude.
Sanjay Das (2011) presented a report on small investor’s perception on mutual
funds in Assam: An empirical analysis. For the purpose, he collected the data from
250 respondents belonged to five different commercial towns. This study analyze
that different demographic variables like investor’s age, gender, marital status,
occupation, income etc. has impact on the selection of investment. In the end this
study describes that majority number of small investors has positive approach
towards mutual investment.
K.Lakshman Rao (2011) surveyed in their paper that majority of investing
respondents were found to be in the age group of 31-50 years. People belonging to
the age group of more than 60 years and less than 20 years were found to be less
aware of different investment schemes and so their investments are comparatively
much less.
SimranSaini and BimalAnjum (2011) had analyses the mutual fund investments
in relation to investor’s behavior that attract them to invest in mutual funds.
Investor’s opinion and perception has been studied relating to various issues like
type of mutual fund scheme, main objective behind investing in mutual fund
scheme, level of satisfaction, role of financial advisors and brokers, sources of
information, deficiencies in the services provided by the mutual fund managers,
challenges before the mutual fund industry etc.
Binod Kumar Singh (2012) had studied the impact of various demographic
factors on investor’s attitude towards mutual fund for measuring and analyzing
various factors responsible for investment in mutual funds.
R. Vasudevan & Peermohaideen (2012) the study aimed to understand and
analyze investor’s perception of such risk and expectation associated with specific
mutual fund. The research also revealed that investors perceive risk as under
performance as risk and return in mutual fund investment are medium and not so
satisfactory.
D. Rajasekar (2013) the study was conducted with a sample size of 150
respondent by using the statistical tools like percentage analysis, chi square,
weighted average, with an objective to know about the investor’s perception on
their profile, income, savings pattern, investment patterns and their personality
criteria. The study was concluded by taking into consideration various parameters
involved in investors decision making keeping in mind investors perception
towards mutual fund investment.
Gaurav Agrawal, Dr. Mini Jain (2013) presented a paper on investor’s
preference towards mutual fund in comparison to other investment avenues. For
the purpose, they collected data from 300 investors within the Matura city. This
study showed the various kinds of investments are available in the market. It is
analyzed that preference of investors towards different avenues of investment are
dependent on return, tax planning, growth etc. in end it conclude that real estate is
mostly preferred by investors of Mathura.
In this respect V Rathnamani (2013) concluded in her research that many
investors prefer to invest in mutual fund in order to gain high gain at low level of
risk, safety and liquidity.
Sukhwinder Kaur, Dr. G. S. Batra, Dr. Bimal Anjum (2013) presented a paper
on investor’s perception towards selection of mutual funds rather than stock
market. For the purpose of study, they collected the data from 200 investors and
this study showed that investor prefers mutual fund rather than stock market.
Because mutual fund investment can be changed according to their requirement
where as investment in stock market is complex and risky.
Preeti Khitoliya (2014) examined through her research that majority of the
respondents in the age of 35-44 wish to invest in mutual fund having moderate risk
which ensures wealth maximization followed by balanced fund and income funds.
Similar results have been seen in the age group of 25-34. But a reverse trend were
seen in the age group of 45 above where majority is risk averse as they wish to
invest in mutual fund schemes which guarantees safety of principal amount
followed by balanced fund and growth fund.
Prof. Gauri Prabhu, Dr. N. H. Vechalekar (2014) conducted a study on
perception of Indian investors toward investment in mutual funds with special
reference to MIP (Monthly income plan) funds. For the purpose of study they
collected data from individual mutual fund investors. The study revealed that
awareness, age, income level of investors, return etc. has impact on the selection of
mutual funds. Investors are also aware about MIPs funds and here they invest only
on the basis of consistent return.
Subramanya PR (2015) the research has been studied on socio economic factors
like age, gender, education income and savings of investor’s perception towards
mutual fund is not encouraging but the age of investor’s and saving habit of the
respondent is closely correlated.
Mukesh. H.V. (2015) had studied investor’s perception on mutual fund for return,
tax benefit and capital appreciation, but most of the investors lack awareness about
mutual funds and their various schemes like, SIP (Systematic Investment Plan).
Hence, it becomes necessary to create awareness among the investors through
conducting seminars, workshops on financial market and published data like
newspaper, magazines and journals.
Priyanka Sharma, Payal Agrawal (2015) conducted a study on investor’s
perception towards mutual fund as an investment option. For the purpose of study,
they collected the data from 50 educated investors. This study revealed that various
factors has impact on the buying decision of investor for mutual fund investment
and it also showed that income, awareness etc. has also considered by investors
while making buying decision.
Rama Krishna Mishra (2015) presented a study on perceptions of investors
towards mutual funds: an analytical study in Odisha. For the purpose, hr collected
data from 136 respondents. This study revealed that return and future of mutual
fund has impact on the buying behavior of small and large investors.
Ms. M. Kalaiselvi, (2016) conducted a study on investor’s perception towards
mutual fund investment (with special reference to Pollachi Town). For this purpose
they collected data from 250 respondents and this study showed that investors
decisions effected by various schemes and their satisfactory level.
Priti Mane (2016) conducted a study on investor’s perception towards mutual
funds in the city of Aurangabad. For the purpose of study, she collected the data
from only 30 investors. On the basis of data collected, she concluded that
awareness level and non-awareness has impact on the buyer’s decision. It also
showed that investor see mutual funds as risky investment and avoids investing in
and preferring fixed deposits.
LITERATURE REVIEW
The study was all about the investor who were diversifying their risk and what the
attitude towards the investment on mutual fund is. The published relating to the
above topic is reviewed. The relevant literature is reviewed on the basis of
Newspaper, journals and some papers on Conference.
Devakumar.V.K (1987) reveals that earlier to 1985, there were very few investors
and they were knowledgeable. During the 1985 boom, thousands of new investors
invaded the market. The new investors suffered heavy losses compared to the
professionals. A good number of new investors have walked out of the stock
market to safer areas like UTI Units, NSC, etc. There is a mild shift of investment
preferences to mutual funds also.
Sikidar and Singh (1996), carried out a survey with an objective to understand the
behavioral aspects of the investors of the North Eastern Region towards Equity and
MF’s Investment Portfolio.
Shunmugham (2000) conducted a survey of 201 individual investors to study the
information sourcing by investors, their perceptions of various investment strategy
dimensions and the factors motivating share investment decisions and reports that
among the various factors, psychological and sociological factors dominated the
economic factors in share investment decisions.
Ms.T.R.Rajeshwari and V.E.Ramamoorthy under took a study on “Mutual’s
know them investors in the year 2001 with the main aim of measuring the level of
awareness among the retail investors about the concept and functioning of mutual
funds in Mumbai, Bangalore and Hyderabad. The study reveal that more and more
small investors with a great appetite for wealth are entering in to the industry,
expecting a dramatic change in their personal wealth and therefore it is essential to
educate them on the risks involved in mutual funds investment.
Desigan G, Lalaiselvi S and Anusuya L (2006) conducted a study on women
investors’ perception towards investment and found that women investors
generally hesitate in investing in mutual funds due to lack of their knowledge and
awareness regarding investment protection, procedure of making investment,
