RAYAT COLLEGE OF EDUCATION, RAILMAJRA

Subject :- The Learner : Nature and development.

Topic:-

Children with special needs.(Gifted, Backward, and

Deliquent)
Submitted To:
Submitted By:
Mrs. Shweta Passi
Kaur

Amrit
B.ed Sec-D
Roll No-100

DECLARATION

This is certify that the project work entitled Comprehensive study of perception regarding
mutual funds" submitted by Miss.Parul Sood in partial fulfillment for the post graduate degree
in Master of Business Administration during 2012-2014 under the guidance of Assist.Prof.Mrs.
Rita Sharma, Management Department, Rayat College Rail Majra.

Signature of Faculty

ACKNOWLEDGEMENT

With regard to my Project with Mutual Fund I would like to thank each and every one who
offered help, guideline and support whenever required.
First and foremost I would like to express gratitude to Assistant Professor Mrs. Rita Sharma for
their support and guidance in the Project work. I am extremely grateful to my guide, Assistant
Professor Mrs. Simran Jawandha for their valuable guidance and timely suggestions. I would like
to thank all faculty members of department of Management for the valuable guidance & support.
I am also thankful to my parents and friends for providing me with the conceptual base and
secondary data and for their timely and valuable suggestion.

(Parul Sood)

Table of Content
Title

Page No.

Declaration

Acknowledgement

Chapter 1. Introduction

8-19

Chapter 2. Review of Literature

20-24

Chapter 3. Objective & Methodology

25-31

Chapter 4. Data & Interpretation

32-74

Chapter 5. Summary & Conclusion

75-82

Bibliography

83

Annexure

84-87

LIST OF TABLES
Table
No

Table Name

4.1

Table representing number of respondents on the basis of gender

Page
No.
17

4.2

Table representing number of respondents on the basis of age group

18

4.3

Table representing number of respondents on the basis of marital status

19

4.4

Table representing number of dependents in respondents family

20

4.5

Table representing occupation of the respondents

21

4.6

Table representing income level per annum of the respondents

22

4.7

Table representing saving of the respondents-gender wise

23

4.8

Table representing savings mode of the respondents-gender wise

24

4.9

25

4.10

Table representing current value of investment per annum of the respondentsIncome level per annum
Table representing current investment portfolio of the respondents-Gender wise

4.11

Table representing investment objective of the respondents Gender wise

27

4.12

Table representing investment term period of the respondents

28

4.13

Table representing factor to be consider most important before choosing an

investment by the respondents
Table representing most preferred form of investment by the respondents-age
group
Table representing reason for most preferred form of investment by the
respondents
Table representing type of Mutual Fund aware of by the respondents

29

Table representing ranking of respondents on the source of information while

investing in Mutual Fund -age group
Table representing aware of the various schemed offered by the Asset
Management companies (AMC) by the respondents- age group
Table representing way of known about Mutual Fund by the respondents

35

Table representing number of respondents on the basis of Mutual Fund schemes

they prefer to invest-gender wise
Table representing number of respondents on primary investment focus

37

4.14
4.15
4.16
4.17
4.18
4.19
4.20
4.21
4.22
4.23
4.24

26

30-31
32
33-34

35
36

38

Table representing consult while making an investment choice by the

39
respondents
Table representing on the basis of making investment decision and execute them 40
Table representing number of respondents like to invest more in future
41

LIST OF CHARTS AND TABLES

Chart & Chart & Table Name

Page No.

Table
No.
4.1
4.2
4.3
4.4

Chart showing number of respondents on the basis of age

Chart showing number of respondents on the basis of gender
Chart showing number of respondents on the basis of marital status
Chart showing number of respondents on the basis of no. of dependents in

17
18
19
20

4.5
4.6

the family
Chart showing number of respondents on the basis of occupation
Chart showing number of respondents on the basis of income level per

21
22

4.7
4.8
4.9

annum
Table showing number of respondents on the basis of savings
Table showing number of respondents on the basis of mode of savings
Table showing number of respondents on the basis of current value

23
24
25

4.10

investment
Table showing number of respondents on the basis of current investment

26

4.11

portfolio
Table showing number of respondents on the basis of objective of

27

4.12

investment
Chart showing number of respondents

28

4.13

on the basis of term of investment

Chart showing number of respondents

29

on the basis of consider most important factor before choosing an

4.14

investment
Table showing number of respondents on the basis of most preferred form

30-31

4.15

of investment
Chart showing number of respondents

32

4.16

on the basis of reason in most preferred form of investment

Table showing number of respondents on the basis of aware of type of

33

4.17

Mutual Fund
Chart showing ranking of respondents on the source of information while

34

4.18

investing in Mutual Fund

Table showing number of respondents on the basis of aware of various

35

schemes offered by AMC

4.19

Chart showing number of respondents

36

4.20

on the basis of know about Mutual fund

Table showing number of respondents on the basis of prefer to invest in

37

4.21

Mutual Fund schemes

Chart showing number of respondents

38

4.22

on the basis of primary investment focus

Chart showing number of respondents

39

4.23

on the basis of consult while making an investment choice40

Chart showing number of respondents 41

40

on the basis of making investment decision and execute them

4.24

Chart showing number of respondents on the basis of Basis of like to

41

4.7
4.8
4.9
4.10
4.11
4.14
4.16
4.18
4.20

invest in future
Mean & ANOVA table of savings Gender wise
Mean & ANOVA table of mode of savings Gender wise
Mean & ANOVA table of current value of investment-income level
Mean & ANOVA table of current investment portfolio-Gender wise
Mean & ANOVA table of investment objective Gender wise
Mean & ANOVA table of form of investment age group wise
Mean & ANOVA table of aware of type of Mutual Fund
Mean & ANOVA table of various schemes offered by AMC Age group
Mean & ANOVA table of schemes to invest gender wise

42
43-44
45-46
47-48
49-50
51-52
53-54
55-56
57-58

Chapter -1
Introduction

INTRODUCTION
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund
by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987
when non-UTI players entered the industry
In the past decade, Indian mutual fund industry had seen dramatic improvements, both quality wise
as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the
Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family
raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn.

Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian
banking industry
The main reason of its poor growth is that the mutual fund industry in India is new in the country.
Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the
prime responsibility of all mutual fund companies, to market the product correctly abreast of
selling.

PHASES
The mutual fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.

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.6,700crores
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 Canbank 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 now functions under the SEBI (Mutual
fund) Regulation 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. 1,21,805crores. The Unit
Trust of India with Rs.44,541crores of assets under management was way ahead of other Mutual
Funds
Fourth Phase - since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the
Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835crores (as on January
2003). 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 preview 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.76,000crores of AUM 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.

The major players in the Indian Mutual Fund Industry are:

GROWTH IN ASSETS UNDER MANAGEMENT

Mutual Funds: Definition

A mutual fund is nothing more than a collection of stocks and/or bonds. We can think of a mutual
fund as a company that brings together a group of people and invests their money in stocks,
bonds, and other securities. Each investor owns shares, which represent a portion of the holdings
of the fund.
Mutual Fund can make money in three ways:

Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly
all of the income it receives over the year to fund owners in the form of a distribution.

If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.

If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price then mutual fund can be sell shares for making profit.
Funds will also usually give you a choice either to receive a check for distributions or to
reinvest the earnings and get more shares.

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 portfolios. A mutual fund is a relatively inexpensive way for
a small investor to get a full-time manager to make and monitor investments.
Diversification - By owning shares in a mutual fund instead of owning individual stocks or
bonds, the risk will 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. Large mutual
funds typically own hundreds of different stocks in many different industries. It would not be
possible for an investor to build this kind of a portfolio with a small amount of money.

 Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a
time, its transaction costs are lower than what an individual would pay for securities transactions.

Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares
be converted into cash at any time.

Simplicity - Buying a mutual fund is easy! Pretty well, any bank has its own line of mutual
funds, and the minimum investment is small. Most companies also have automatic purchase plans
whereby as little as $100 can be invested on a monthly basis.

Disadvantages of Mutual Funds:

Professional Management - Many investors debate whether the so-called professionals are any
better than at picking stocks. Management is by no means infallible, and, even if the fund loses
money, the manager still takes cut.

Costs - Mutual funds do not exist solely to make life easier - all funds are in it for a profit. The
mutual fund industry is masterful at burying costs under layers of jargon. These costs are so
complicated

that

in

this

tutorial

devoted

an

entire

section

to

the

subject.

Dilution - It's possible to have too much diversification. 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.

 Taxes - When making decisions about money, fund managers do not consider personal tax
situation. For example, when a fund manager sells a security, a capital gains tax is triggered,
which affects how profitable the individual is from the sale. It might have been more
advantageous for the individual to defer the capital gains liability.

Different Types of Mutual Funds

. At the fundamental level, there are three varieties of mutual funds:
1) Equity funds (stocks)
2) Fixed-income funds (bonds)
3) Money market funds

All mutual funds are variations of these three asset classes.

Money Market Funds
The money market consists of short-term debt instruments, mostly Treasury bills this is a safe
place to park the money. It will not get great returns A typical return is twice the amount earn in a
regular checking/savings account and a little less than the average certificate of deposit (CD).

Bond/Income Funds
The money market consists of short-term debt instruments, mostly Treasury bills this is a safe
place to park the money. It will not get great returns A typical return is twice the amount earn in a
regular checking/savings account and a little less than the average certificate of deposit (CD).
Income funds are named appropriately: their purpose is to provide current income on a steady
basis. When referring to mutual funds, the terms "fixed-income," "bond," and "income" are
synonymous. These terms denote funds that invest primarily in government and corporate debt.
While fund holdings may appreciate, the primary objective of these funds is to provide a steady
cash flow to investors. As such, the audience for these funds consists of conservative investors
and retires. Bond funds are likely to pay higher returns than certificates of deposit and money

market investments, but bond funds are not without risk. Because there are many different types
of bonds, bond funds can vary dramatically depending on where they invest Furthermore, nearly
all bond funds are subject to interest rate risk, which means that if rates go up the value of the
funds goes down
Balanced Funds
The objective of these funds is to provide a balanced mixture of safety, income and capital
appreciation. The strategy of balanced funds is to invest in a combination of fixed income and
equities. A typical balanced fund might have a weighting of 60% equity and 40% fixed income.
The weighting might also be restricted to a specified maximum or minimum for each asset class.
A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a
balanced fund, but these kinds of funds typically do not have to hold a specified percentage of
any asset class. The portfolio manager is therefore given freedom to switch the ratio of asset
classes as the economy moves through the business cycle.

Equity Funds
Funds that invest in stocks represent the largest category of mutual funds. Generally, the
investment objective of this class of funds is long-term capital growth with some income. There
are, however, many different types of equity funds because there are many different types of
equities.

Global/International Funds
An international fund (or foreign fund) invests only outside your home country. Global funds
invest

anywhere

around

the

world,

including

the

home

country.

It is tough to classify these funds as either riskier or safer than domestic investments. They do
tend to be more volatile and have unique country and/or political risks. However, on the other
side, they can, as part of a well-balanced portfolio, actually reduce risk by increasing
diversification. Although the world's economies are becoming more inter-related, it is likely that
another economy somewhere is outperforming the economy of the home country.

Specialty Funds
This classification of mutual funds is more of an all-encompassing category that consists of funds
that have proved to be popular but don't necessarily belong to the categories we've described so
far. This type of mutual fund forgoes broad diversification to concentrate on a certain segment of
the

economy

Sector funds are

extremely volatile. Regional funds make it easier to focus on a specific

area of the world. This may mean focusing on a region (say Latin America) or an individual
country (for example, only Brazil). An advantage of these funds is that they make it easier to buy
stock in foreign countries, which is otherwise difficult and expensive. Just like for sector funds,
we have to accept the high risk of loss, which occurs if the region goes into a bad recession.
Socially responsible funds (or ethical funds) invest only in companies that meet the criteria of
certain guidelines or beliefs. Most socially responsible funds don't invest in industries such as
tobacco, alcoholic beverages, weapons or nuclear power. The idea is to get a competitive
performance while still maintaining a healthy conscience.
Index Funds
This type of mutual fund replicates the performance of a broad market index such as the S & P
500 or Dow Jones Industrial Average (DJIA)

An investor in an index fund figures that most

managers can't beat the market. An index fund merely replicates the market return and benefits
investors in the form of low fees.

Types of mutual fund

Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-ended Fund
An open-ended Mutual fund is one that is available for subscription and repurchase on
a continuous basis. These Funds do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV)related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.

Close-ended Fund
A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.

Consumer perception

A lot many factors are available that are considered by the investors before investing in mutual
funds. These factors are like consistency, ability, stability etc.
Returns from the funds have a great impact on the mind setup of the investors. It is found from
the study that majority of respondents believes that the past performance (47.44%) of the scheme
is considered as an important element while choosing right type of mutual fund scheme. After
past performance the investors give importance to stability (29.59%), consistency (17.34%) and
ability (5.63%). From table 6 it is clear that all the demographic factors like qualification, age,
occupation and annual family income have no impact on the factors considered by the investors
before choosing the right kind of fund at 5% level of significance.

CRITERIA FOR EVALUATING THE PERFORMANCE OF MUTUAL FUNDS

Most of the investors evaluate the performance of mutual funds before making investment in
them. For evaluating the performance of different mutual fund schemes, a number of methods are
available. As per the study, majority of the respondents prefer absolute returns of the funds
(42.10%) and funds return to returns on other similar schemes (22.10%) as a criteria for
evaluating the performance of mutual funds schemes.

Chapter 2
Review of Literature

REVIEW OF LITERATURE

William fung and David a. hsieh (1991) explored the investment styles in mutual fund hedge
funds. The results indicated that there were 39 dominants mutual fund styles that were mixes or
specialized subsets of 9 broadly define user classes. There was little evidence of market timing
of asset class rotation in these dominants mutual fund styles. Thus, a 12 factor model with 9 asset
classes and three dynamic trading strategies provided a good first step in a unified approach for
performance attributions and style analysis of mutual funds and hedge funds.

Jaidev (1999) evaluated the performance of two growth oriented mutual funds (master gain and
magnum express) on the basis of monthly returns compared in benchmark returns. For that
purpose, risk adjusted performance measures suggested by jenson, treynor and hsarpe were
employed. It was found that, Mastergain had performed better according to jenson and treynor
measures and on the basis of Sharpe ratio its performance was not upto the benchmark. The
performance of Magnum Express was poor on the basis of all these three measures. However,
Magnum Express was well diversified and had reduced its unique risk where as Master gain did
not. It can be concluded that, the two growth oriented funds had not performed better in terms of
total risk and the funds were not offering advantages of diversification and professionalism to the
investors.

HanumanthaRao and Vijay Kr. Mishra found mutual funds have emerged as an important
segment of financial market of India, especially as a result of the initiatives taken by the govt. of
India for resolving problems relating to UTPs US-64 and to liberalized tax liabilities on the
incomes earned by the mutual funds. They now play a very significant role in channelizing the
savings of millions of individuals into the investment in equity and debt instruments. This paper
aims at making a critical study of the role performed by mutual funds as a financial service in
Indian financial market.
11

Sotiris Zontos, Skiadas Christos and Yiannis Valvis developed strategies that enabled portfolio
managers to improve market timing by learning to recognize leading indications of forthcoming
changes. They aimed to test, in a Mutual fund series, of the predicting ability of a long term
moving averages were made, for the same time series for different values of short term and long
term moving averages and the profitability of this method was calculated. The method was
proved profitable if no buy and sell cost was counted.

Mark Grinblatt (1992) empirically examined the Jensen Measures, the positive period
weighting measures, developed in Grinblatt and titman (1990a), measures developed from the
TreynorMazuy (1969) quadratic regression on a sample 179 mutual funds, using a variety of
benchmark portfolios. They found that the measures generally yield similar inference when using
the same benchmark and those inferences could vary, even from the same measures, when using
different benchmarks. Several benchmark, developed there, appeared in improve upon traditional
benchmark for assessment of fund performance. This superior benchmark consisted of sets of
portfolio formed on the basis of securities characteristics. Tests of fund performance that
employed fund characteristics, such as ne asset value, load, expenses, portfolio turnover,
management fee, and past performance were also reported. Those potentially more powerful tests
suggested that past performance and turnover were positively related to fund performance.

The Week, March 18th 2010: MoneyThe route to take; Best options in a changing market.
A study conducted on various investment options and its importance.
Major findings of the study are as follows:
Bank deposit: the demand for credit has led to an increase in different for deposits to banks.
With the demand for deposits increasing, internet rates are not expected to come down in the
nearer future. Banks are given better returns than post office deposits to stem any flow there, too.

12

Real estate: An increase in interest rates by banks has made investment in real estate dearer for
the common man. There will be 17 million new households needing a residual space of 16 billion
sq. ft. by 2013.
Debt market: debt market is all set to come out of their cocoon because of the international
turmoil. The year 2010 has been cited as the year of debt.
Gold: it has greater stability than any other asset. Though the prices are on a correction mode,
prices will increase by 20-30 percent in 2010. Short term investment is not recommended.
Equity market: volatility in the stock prices will continue. The expectation is that a healthy
corporate earnings of 15-20 percent on the back of an 8-9 percent GDP will reinforce the faith in
the market.
Mutual funds: equity oriented funds remain the favorites. Debt funds are making a comeback.
After the budget, liquid funds or fixed maturity plans are also in demand.
Insurance: The budget (2010) raised the tax exempted limit on medical insurance premium to
rs.15000 and Rs. 20000 to senior citizens. This will motivate individuals to purchase health care
products at a younger age. With public spending on health care limited and health care cost
increasing this will also help older people.
Michael C. Jensen (1971) developed an absolute measure based upon the capital asset pricing
model in his classic study. The performance of mutual funds in the period 1945-1964 and
reported that mutual funds did not appear in achieve abnormal performance when transaction
costs were taken into account. It estimated how much a manager forecasting ability contributes to
the funds returns. The measure was based on the theory of the pricing of capital assets by Sharpe
(1967), Lintner (1968) and Treynor (Undated). It applied the measures to estimate the predictive
ability of 115 mutual funds managers in the period 1948-1967.

Lubos Pastor and Robert F. Stambaugh (2003) developed and applied a framework in which
believed about pricing models and managerial skill play roles in both performance evaluation and
investment decisions. They analyzed non- benchmark passive assets provides additional
information about mutual funds performance measures and expected returns and in additions,
non benchmark assets help account for common variation in fund returns, making the investment
problem feasible with a large universe of funds. A mutual funds performance measures, alpha,
was defined relative to a set of passive benchmarks.

Kozup, John C., Elizabeth Howlett and Michael Pagano (2011), choosing how to best invest
for retirement is one of the most important decisions a consumer can make. Unfortunately, this
can be an especially challenging task given the current financial information disclosure
environment. The objective of this research is to explore whether a single page supplemental
information disclosure impacts investors fund evaluations and investment intentions. Results
indicate that while investors continue to place too much emphasis on prior performance, the
provision of supplemental information, particularly in a graphical format, interacts with
performance and investment knowledge to influence perceptions and evaluations of mutual
funds.

Chapter 3
Objectives & Methodology

OBJECTIVES AND METHODOLOGY

The objective of the study is to

To study the importance of mutual funds.

To find out the reason to investment in Mutual Funds.

Factors influencing consumer perception regarding mutual funds.

.

MEHTODOLOGY OF THE STUDY(Kothari)

Descriptive study Descriptive research is used to describe characteristics of a population or
phenomenon being studied. It does not answer questions about how/when/why the characteristics
occurred. Rather it addresses the "what" question (What are the characteristics of the population
or situation being studied?) The characteristics used to describe the situation or population are
usually some kind of categorical scheme also known as descriptive categories. For example, the
periodic table categorizes the elements. Scientists use knowledge about the nature of electrons,
protons and neutrons to devise this categorical scheme. We now take for granted the periodic
table, yet it took descriptive research to devise it. Descriptive research generally precedes
explanatory research. For example, over time the periodic tables description of the elements
allowed scientists to explain chemical reaction and make sound prediction when elements were
combined.
Hence, research cannot describe what caused a situation. Thus, Descriptive research cannot be
used to as the basis of a causal relationship, where one variable affects another. In other words,
descriptive research can be said to have a low requirement for internal validity.
The description is used for frequencies, averages and other statistical calculations. Often the best
approach, prior to writing descriptive research, is to conduct a survey investigation. Qualitative
research often has the aim of description and researchers may follow-up with examinations of
why the observations exist and what the implications of the findings are.

Descriptive Studies
Types of Descriptive Studies
I.

Cross Sectional Studies.

II.

Longitudinal Studies.

I) Cross Sectional Studies:

-Are based on a single examination of a cross
-section of population at one point in time.
-Results can be projected on the whole population provided the sampling has been done
Randomly.
-A series of cross sectional studies done at several points in time is known as serial
Survey design.
-Cross sectional studies are relatively fast and inexpensive and form only design to give
prevalence of disease.
II) Longitudinal Studies:
Observations are repeated in the same population over a prolonged period of time by means of
follow up examinations.
Useful to study
1Natural h/o disease and its future outcome.
2For identifying risk factors of disease.
3For finding out incidence rate

ANOVA:
Analysis of variance (ANOVA) is a collection of statistical models used to analyze the
differences between group means and their associated procedures (such as "variation" among and
between groups), developed by R.A. Fisher. In the ANOVA setting, the observed variance in a
particular variable is partitioned into components attributable to different sources of variation. In
its simplest form, ANOVA provides a statistical test of whether or not the means of several
groups are equal, and therefore generalizes the t-test to more than two groups. Doing multiple
two-sample t-tests would result in an increased chance of committing a type I error. For this
reason, ANOVAs are useful in comparing (testing) three or more means (groups or variables) for
statistical significance.

Ranking
ANOVA on ranks means that a standard analysis of variance is calculated on the ranktransformed data. Conducting factorial ANOVA on the ranks of original scores has also been
suggested. However, Monte Carlo studies, and subsequent asymptotic studies found that the rank
transformation is inappropriate for testing interaction effects in a 4x3 and a 2x2x2 factorial
design. As the number of effects (i.e., main, interaction) become non-null, and as the magnitude
of the non-null effects increase, there is an increase in Type I error, resulting in a complete failure
of the statistic with as high as a 100% probability of making a false positive decision. Similarly, it
was found that the rank transformation increasingly fails in the two dependent samples layout as
the correlation between pretest and posttest scores increase. It was also discovered that the Type I
error rate problem was exacerbated in the context of Analysis of Covariance, particularly as the
correlation between the covariate and the dependent variable increased.

Mean values in probability and statistics, mean and expected value are used synonymously to
refer to one measure of the central tendency either of a probability distribution or of the random
variable characterized by that distribution. In the case of a discrete probability distribution of a
random variable X, the mean is equal to the sum over every possible value weighted by the
probability of that value; that is, it is computed by taking the product of each possible value x of
.[2]

X and its probability P(x), and then adding all these products together, giving

An analogous formula applies to the case of a continuous probability distribution. Not every
probability distribution has a defined mean; see the Cauchy distribution for an example.
Moreover, for some distributions the mean is infinite: for example, when the probability of the
value

is

for n = 1, 2, 3, ....

For a data set, the terms arithmetic mean, mathematical expectation, and sometimes average are
used synonymously to refer to a central value of a discrete set of numbers: specifically, the sum
of the values divided by the number of values. The arithmetic mean of a set of numbers x1, x2, ...,
xn is typically denoted by

, pronounced "x bar". If the data set were based on a series of

observations obtained by sampling from a statistical population, the arithmetic mean is termed
the sample mean (denoted ) to distinguish it from the population mean (denoted

or

).

For a finite population, the population mean of a property is equal to the arithmetic mean of the
given property while considering every member of the population. For example, the population
mean height is equal to the sum of the heights of every individual divided by the total number of
individuals. The sample mean may differ from the population mean, especially for small samples.
The law of large numbers dictates that the larger the size of the sample, the more likely it is that
the sample mean will be close to the population mean.

Percentage method
The percentage method is generally used by employers that have automated payroll systems or
payroll service providers. Although this method involves more complicated calculations, it is
more flexible than the wage bracket method because it can be applied to payroll periods, such as

quarterly, semiannual, and annual, and to wage amounts that exceed those in the wage bracket
tables.

Method of analysis
Comparative Mean study is done here. It includes surveys of different kinds. The major purpose of

descriptive research is description of the state of affairs as it exists at present. The problem
identified was The study on Consumer Perception on Investment in Mutual Funds.

SAMPLING TECHNIQUES
The sample population for research was the investors who have invested in Mutual Fund through
different financial Mutual Fund companies in PUNJAB, HIMACHAL PRADESH, HARYANA
Sample size is 100.
Data has been presented with the help of bar graph, pie charts, etc.

RESEARCH INSTRUMENTS
Questionnaire method is used. The structured and straight forward questionnaire was used
so that valid and accurate data can be collected.
SPSS software package were used for graphical representation and analysis of data.
Simple percentage, Ranking, Mean values (scores) and Analysis of Variance (ANOVA)
method were used to interpret various data collected through questionnaire.

DURATION OF THE STUDY

The study was carried out for a period of three months, from 1st January 2014 to 31st March 2014

DATA SOURCE
Primary Data- Primary data was collected through questionnaire giving directly to respondents
and also through by mail.
Secondary Data- Secondary data was collected from various websites, reports, brochure and
articles from various journals, newspapers and magazines, etc.

LIMITATIONS OF THE STUDY

The study was restricted to Punjab , Haryana, Himachal pradesh only.
The Mutual fund industry is unpredictable and keeps on varying from time to time it is
difficult to collect accurate data.
Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.
Sample size was limited to 100 educated investors in urban and semi urban areas only.

Chapter 4
Data Analysis & Interpretation

Table No.4.1- TABLE REPRESENTING NUMBER OF RESPONDENTS ON

THE BASIS OF GENDER
Gender

Number of Respondents

Percentage (%)

Male

59

59

Female

41

41

Total

100

100

INTERPRETATION

The table shows that 59% of the respondents are male and 41% of the respondents

are female from the total population of 100.

Figure No.4.1 CHART SHOWING NUMBER OF RESPONDENTS ON

THE BASIS OF GENDER

Table No.4.2- TABLE REPRESENTING NUMBER OF RESPONDENTS ON

THE BASIS OF AGE GROUP
Age group

Number of Respondents

Percentage (%)

18-30

28

28

31-45

35

35

46-65

32

32

Above 66

Total

100

100

INTERPRETATION
The table indicates that 35% of the respondents belong to the age group 31-45 and 5% of the
respondents belong to the age group of above 66.

Figure No.4.2 CHART SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF

AGE GROUP

Table No.4.3- TABLE REPRESENTING NUMBER OF RESPONDENTS ON

THE BASIS OF MARITAL STATUS
Marital Status

Number of Respondents

Percentage (%)

Married

59

64

Unmarried

36

36

Total

100

100

INTERPRETATION
The above table shows that 64% of the respondents are married and 36% of the
respondents are unmarried.

Figure No.4.3 CHART SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF

MARITAL STATUS

Table No.4.4- TABLE REPRESENTING NUMBER OF RESPONDENTS ON

THE BASIS OF NUMBER OF DEPENDENTS
No. of Dependents

Number of Respondents

Percentage (%)

0-3

61

61

3-5

32

32

Above 5

Total

100

100

INTERPRETATION
The above table shows that 61% of the respondents have 0-3 no. of dependents in their family
and 7% of the respondents have above 5 no. of dependents.

Figure 4.4 CHART SHOWING NUMBER OF DEPENDENTS

Table No.4.5- TABLE REPRESENTING NUMBER OF RESPONDENTS ON

THE BASIS OF OCCUPATION

Occupation

Number of Respondents

Percentage (%)

Salaried

54

54

Non salaried

46

46

Total

100

100

INTERPRETATION
The table shows that 54% of the respondents are salaried and 46% of the respondents are
non salaried.

Figure No.4.5 CHART SHOWING NUMBER OF RESPONDENTS ON THE

BASIS OF OCCUPATION

Table No.4.6 - TABLE REPRESENTING NUMBER OF RESPONDENTS ON

THE BASIS OF INCOME LEVEL
Income Level

Number of Respondents

Percentage (%)

Below 3 Lacs

33

33

3 Lacs 5 Lacs

52

52

Above 5 lacs

15

15

Total

100

100

INTERPRETATION
The table shows that 52% of the respondents belong to the income level of 3 lacs 5 lacs
and 15% of the respondents belong to the income level of above 5 lacs.

Figure No.4.6 CHART SHOWING NUMBER OF RESPONDENTS ON THE

BASIS OF INCOME LEVEL

Table 4.7 TABLE REPRESENTING SAVINGS BY GENDER WISE

Savings

Gender

No of respondents

Yes

Male

57

Female

39

Total

96

Male

Female

Total

Male

59

Female

41

Total

100

No

Total

INTERPRETATION
The above table interpret that 57 of the Male respondents and 39 of the respondents female do
savings

Table 4.8 TABLE REPRESENTING MODE OF SAVINGS BY GENDER WISE

Mode of savings

Gender

No of respondents

Fixed deposits

Male

24

Female

13

Total

37

Male

20

Female

16

Total

36

Male

15

Female

12

Total

27

Male

59

Female

41

Total

100

Investment

Others

Total

INTERPRETATION
The above table shows that 24 of Male the respondents mode of savings is Fixed Deposits and
16 of the Female respondents mode of savings is investment.

Table 4.9 TABLE REPRESENTING CURRENT VALUE OF INVESTMENT BY

INCOME LEVEL WISE

Current value of investment

Income level per annum

No of respondents

10000-30000

Below 300000

20

300000-500000

20

Above 500000

Total

44

Below 300000

300000-500000

23

Above 500000

Total

34

Below 300000

300000-500000

Above 500000

Total

22

Below300000

33

300000-500000

52

Above 500000

15

Total

100

30000-50000

Above 50000

Total

INTERPRETATION
The above table shows that the income level of below 300000(20) respondentscurrent
investment is 10000-30000, the income level of 300000-500000 respondents (23) current
investment is 30000+50000 and the income level of above 500000 respondents(6) current
investment is above 50000.

Table 4.10 TABLE REPRESENTINGCURRENT INBESTMENT PORTFOLIO BY

GENDER WISE

Current investment portfolio

Gender

No of respondents

Mutual fund

Male

17

Female

10

Total

27

Male

Female

Total

10

Male

18

Female

Total

25

Male

Female

10

Total

15

Male

12

Female

11

Total

23

Male

59

Female

41

Total

100

Equity trading

Fixed deposits/Bank savings

Investment (UL/IP)

Post office savings

Total

INTERPRETATION
The above table shows that current investment portfolio of Male respondents (18) and female
respondents (11) is Fixed Deposits and Post office Savings respectively.

Table 4.11 TABLE REPRESENTING OCJECTIVE OF INVESTMENT BY GENDER

WISE

Objective of investment

Gender

No of
respondents

To build a corpus of retirement

Male

Female

Total

Male

10

Female

Total

17

Male

13

Female

Total

20

Male

13

Female

12

Total

25

Male

18

Female

11

Total

29

Male

59

Female

41

Total

100

To save for children

education/marriage

To provide medical emergencies

To provide for family financial

security

All of the above

Total

INTERPRETATION

The above table shows that investment of Male respondents (18) is all of the above and Female
respondents (12) investment objective is to provide financial security to family.

Table No 4.12 TABLE REPRESENTING NUMBER OF RESPONDENTS ON THE BASIS

OF TERM OF INVESTMENT
Term of Investment

Number of respondents

Percentage (%)

Under 2 yrs

24

24

2-5 yrs

37

37

6-10 yrs

21

21

11-15 yrs

18

18

total

100

100

INTERPRETATION
The table shows that 37% of the respondents wants to invest 2-5 yrs and 18% of the respondents
term of investment is 11-15 yrs.

Figure 4.12 CHART SHOWING NUMNBER OF REPRESENTING ON THE BASIS OF

TERM OF INVESTMENT

Table No 4.13 TABLE REPRESENITNG NUMBER OF RESPONDENTS ON THE BASIS

OF IMPORTANT FACTOR CONSIDER BEFORE CHOOSING AN INVEATMENT
Important factor

Number of respondents

Percentage (%)

Quickly increase wealth

16

16

Steady growth

32

32

Monthly income

21

21

Safety of investment principal

31

31

total

100

100

INTERPRETATION
The table shows that 32% of the respondents consider steady growth an important factor and 16
% of the respondents consider increasing wealth quickly as important before choosing as
investment.

Figure 4.13 CHART SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF

IMPORTANT FACTOR CONSIDER BEFORE CHOOSING AN INVEATMENT

Table 4.14TABLE REPRESENTING FORM OF INVESTMENT BY AGE WISE

FORM OF
INVESTMENT

AGE

UL/IP

18-30

1.60

.548

31-45

1.50

.548

46-65

1.75

.500

Total

1.60

15

.507

18-30

1.30

10

.483

31-45

1.15

13

.376

46-65

1.09

11

.302

ABOVE 66

1.00

.000

Total

1.17

36

.378

18-30

2.00

.000

31-45

1.50

.707

46-65

1.33

.516

Total

1.50

10

.527

18-30

1.50

.548

31-45

1.43

.535

46-65

1.00

.000

ABOVE 66

2.00

.000

Total

1.43

21

.507

18-30

1.80

.447

31-45

1.57

.535

46-65

1.67

.516

Total

1.67

18

.485

18-30

1.54

28

.508

31-45

1.37

35

.490

46-65

1.31

32

.471

ABOVE 66

1.60

.548

Total

1.41

100

.494

MUTUAL FUND

EQUITY TRADING

FIXED DEPOSITS

BANK SAVINGS

Total

INTERPRETATION

Mean

Std. Deviation

The above table shows that age group of 18-30 (10), age group of 31-45 (13) and age group of
46-65 (11) respondents preferred Mutual Fund for investment and age group of above 66 (3)
respondents Fixed Deposits as most preferred form of investment.

Table no 4.15 TABLE REPRESENTING REASON FOR MOST PREFERRED FORM OF

INVESTMENT
Reasons

Number of respondents

Percentage (%)

Tax Savings

36

36

To create wealth

33

33

Other future emergencies

31

31

Total

100

100

INTERPRETATION
The table shows that 36% of the respondents preferred investment to save tax and 31% of the
respondents preferred investment for other future emergencies.
Figure no 4.15 CHART SHOWING REASON FOR MOST PREFFERD FORM OF
INVESTMENT

Table No 4.16 TABLE REPRESENTING AWARE OF TYPE OF MUTUTAL FUND BY

AGE GROUP WISE

Aware of type of Mutual Fund

Age

Number of respondents

Growth Fund

18-30

31-45

46-65

Total

23

18-30

10

31-45

11

46-65

ABOVE 66

Total

31

18-30

11

31-45

13

46-65

10

ABOVE 66

Total

35

18-30

31-45

46-65

ABOVE 66

Total

11

18-30

28

31-45

35

46-65

32

ABOVE 66

Total

100

Money Market

Equity Fund

Other

Total

INTERPRETATION
The above shows that age group of 18-30 (11) respondents, age group of 31-45 (13) respondents
and age group of 46-65 (10) are aware of Growth Fund type of Mutual fund and age group of
above 66 (2) respondents aware of other type of Mutual fund.

Table No 4.18TABLE REPRESENTING NUMBER OF RESPONDENTS AWARE OF

VARIOUS SCHEMES OFFERED BY THE AMC

Various schemes offered by

AMC
Most

Some

Few

Total

Age

Number of respondents

18-30

31-45

46-65

Above 66

Total

26

18-30

14

31-45

15

46-65

Above 66

Total

38

18-30

31-45

11

46-65

16

Above 66

Total

36

18-30

28

31-45

35

46-65

32

Above 66

Total

100

INTERPRETATION
The above table shows that age group of 46-65 (16) respondents aware of few schemes offered
by AMC, age group of 18-30 respondents (14), age group of 31-45 respondents (15) and age
group of above 66 (2) respondents aware of some schemes offered by AMC and age group of
above 66 (2) respondents aware of most of the schemes offered by AMC.

Table No 4.19TABLE REPRESENITNG KNOWN ABOUT MUTUAL FUND

Way of know
Advertisement
friends
Brokers
Other

Number of respondents
40
30
14
16

Percentage (%)
40
30
14
16

Total

100

100

INTERPRETATION
The table shows that 40% of the respondents know about Mutual Fund through advertisement
and 14% of the respondents came to know about Mutual Fund through brokers.
Figure No 4.19CHART SHOWING NUMBER OF RESPONDENTS KNOW ABOUT
MUTUAL FUND

Table No. 4.20 TABLE REPRESENITNG SCHEMES TO INVEST BY GENDER WISE

Schemes to invest

Gender

Number of respondents

Open Ended

Male

31

Female

20

Total

51

Male

19

Female

16

Total

35

Male

Female

Total

14

Male

59

Female

41

Total

100

Close Ended

Interval

Total

INTERPRETATION
The table shows that 31 male respondents and 20 of the female respondents prefer to invest in
open ended schemes.

Table No 4.21TABLE REPRESENTING NUMBER OF RESPONDENTS PRIMARY

INVESTMENT FOCUS.
Investment focus
Retirement

Number of respondents
19

Percentage (%)
19

Wealth generation

33

33

Capital preservation

14

14

Income generation

34

34

Total

100

100

INTERPRETATION
The table shows that 34% of the respondents primary investment focus is to generate income and
14% of the respondents primary investment focus is to preserve capital
Figure No 4.21 FIGURE SHOWING NUMBER OF RESPONDENTS PRIMARY
INVESTMENT FOCUS.

Table No 4.22 TABLE REPRESENTING NUMBER OF RESPONDENTS ON THE BASIS

OF CONSULT WHLE MAKING AN INVESTMENT CHOICE.
Choice

Number of respondents

Percentage (%)

Every time

34

34

Often

35

35

Sometimes

24

24

Never

Total

100

100

INTERPRETATION
The table shows that 35% of the respondents consult every time while making an investment
choice and 7% of the respondents never consult while making an investment choice.

Figure No 4.22FIGURE SHOWING NUMBER OF RESPONDENTS ON THE BASIS

OF CONSULT WHLE MAKING AN INVESTMENT CHOICE

Table no 4.23 TABLE REPRESENTING NUMBER OF RESPONDENTS ON THE BASIS

OF MAKING INVESTMENT DECISION AND EXECUTE THEM.
Period

Number of respondents

Percentage (%)

Once a month

23

23

Once in 3 month

32

32

Once in 6 month

18

18

Once a year

27

27

Total

100

100

INTERPRETATION
The table shows that the 32% of the respondents once in 3 months making investment decision
and execute them and 18% of the respondents making investment decision and execute them in
once in a 6 months.

Figure No 4.23FIGURE SHOWING NUMBER OF RESPONDENTS ON THE BASIS

OF MAKING INVESTMENT DECISION AND EXECUTE THEM.

Table no 4.24YABLE SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF

INVEST MORE IN FUTURE
Option

Number of respondents

Percentage (%)

Yes

73

73

No

27

27

Total

100

100

INTERPRETATION
The table shows that the 73% of the respondents want s to invest in future and 27% of the
respondents dont want to invest in future.

Figure No. 4.FIGURE SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF

INVEST MORE IN FUTURE.

Table 4.7 MEAN VALUE OF SAVIGS - GENDER WISE

SAVINGS GENDER

Mean

Std. Deviation

YES

MALE

1.28

57

.453

FEMALE

1.41

39

.498

Total
MALE
FEMALE
Total
MALE

1.33
2.00
2.00
2.00
1.31

96
2
2
4
59

.474
.000
.000
.000
.464

FEMALE

1.44

41

.502

Total

1.36

100

.482

NO

Total

ANOVA Table
Source of

Sum of

Mean

variance

Squares

df

Square

Sig.

1.707

1.707

7.840

.006

Within Groups

21.333

98

.218

Total

23.040

99

Between
groups
(combined)

Level of significance = 0.05

INFERENCE
The level of significance is more thus it is concluded that there is a relationship between savings
of male and female.
Table 4.8 MEAN VALUE OF MODE OF SAVINGS GENDER WISE

MODE OF SAVINGS

GENDER

Mean

Std. Deviation

FIXED DEPOSIT

MALE

2.12

24

.741

FEMALE

2.46

13

.967

Total
MALE
FEMALE
Total
MALE
FEMALE
Total
MALE

2.24
2.25
1.56
1.94
2.33
2.17
2.26
2.22

37
20
16
36
15
12
27
59

.830
.910
.727
.893
.900
1.030
.944
.832

FEMALE

2.02

41

.961

Total

2.14

100

.888

INVESTMENT

OTHERS

Total

ANOVA Table
Source of

Sum of

Mean

variance

Squares

df

Square

2.155

1.078

1.377 .257

Within Groups

75.885

97

.782

Total

78.040

99

Sig.

Between
Group
(Combined)

Level of significance =0.05

INFERENCE
The level of significance is less thus it is concluded that there is no relationship between modes
of saving in male and female.

Table 4.9 MEAN VALUE OF CURRENT VALUE OF INVESTMENT INCOME LEVEL

PER ANNUM

CURRENT
VALUE OF
INVESTMENT

INCOME LEVEL

PER ANNUM

PER ANNUM

Mean

Std. Deviation

10000-30000

BELOW 300000

2.10

20

1.021

300000-500000

2.30

20

.733

ABOVE 500000

2.25

.957

Total
BELOW 300000
300000-500000
ABOVE 500000
Total
BELOW 300000
300000-500000
ABOVE 500000
Total
BELOW 300000

2.20
2.33
1.91
1.80
1.97
2.43
2.11
2.33
2.27
2.21

44
6
23
5
34
7
9
6
22
33

.878
1.211
.793
1.095
.904
.787
.782
1.211
.883
.992

300000-500000

2.10

52

.774

ABOVE 500000

2.13

15

1.060

Total

2.14

100

.888

30000-50000

ABOVE 50000

Total

ANOVA Table
Source of

Sum of

Mean

variance

Squares

df

Square

Sig.

1.547

.773

.981

.379

Within Groups

76.493

97

.789

Total

78.040

99

Between
Groups
(combined)

Level of significance = 0.05

INFERENCE
The level of significance is less thus it is concluded that there is a difference between income
level and current investment value of the respondents.

Table 4.10 MEAN VALUE OF CURRENT INVESTMEN PORTFOLIO - GENDER

CURRENT INVESTMENT
PORTFOLIO

GENDER

Mean

Std. Deviation

MUTUAL FUND

MALE

1.24

17

.437

FEMALE

1.40

10

.516

Total
MALE
FEMALE
Total
MALE
FEMALE
Total
MALE
FEMALE
Total
MALE
FEMALE
Total
MALE

1.30
1.43
1.67
1.50
1.17
1.57
1.28
1.20
1.40
1.33
1.58
1.36
1.48
1.31

27
7
3
10
18
7
25
5
10
15
12
11
23
59

.465
.535
.577
.527
.383
.535
.458
.447
.516
.488
.515
.505
.511
.464

FEMALE

1.44

41

.502

Total

1.36

100

.482

EQUITY TRADING

FIXED DEPOSITS/BANK
SAVINGS
INVESTMENTS (UL/IP)

POST OFFICE SAVINGS

Total

ANOVA Table
Source of variance

Sum of

Mean

Squares

df

Square

Sig.

.798

.199

.852

.496

Within Groups

22.242

95

.234

Total

23.040

99

BetweenGro
ups
(combined)

Level of significance = 0.05

INFERENCE
The level of significance is less thus it is concluded that the current investment portfolio of male
and female is independent.

Table 4.11 MEAN VALUE OF INVESTMENT OBJECTIVE GENDER WISE

OBJECTIVE OF
INVESTMENT

GENDER

Mean

Std. Deviation

TO BUILD A CORPUS FOR

MALE

1.20

.447

RETIREMENT

FEMALE

1.25

.500

1.22

.441

TO SAVE FOR CHILDREN

Total
MALE

1.00

10

.000

FEMALE
Total
MALE

1.14
1.06

7
17

.378
.243

1.38

13

.506

FEMALE
Total
MALE

1.71
1.50

7
20

.488
.513

1.23

13

.439

1.50
1.36

12
25

.522
.490

ALL OF THE ABOVE

FEMALE
Total
MALE

1.50

18

.514

1.45
1.48

11
29

.522
.509

Total

FEMALE
Total
MALE

1.31

59

.464

FEMALE

1.44

41

.502

Total

1.36

100

.482

EDUCATION/MARRIAGE
TO PROVIDE MEDICAL
EMERGENCIES
TO PROVIDE FOR FAMILY
FINANCIAL SECURITY

ANOVA Table
Source of variance

Sum of

Mean

Squares

df

Square

Sig.

2.542

.635

2.945

.024

Within Groups

20.498

95

.216

Total

23.040

99

Between
Groups

(Combined)

Level of significance = 0.05

INFERENCE
The level of significance is more thus it is concluded that there is a relationship between
investment objectives of male and female.

Table 4.14 MEAN VALUE OF FORM OF INVESTMENT AGE GROUP

FORM OF
INVESTMENT

AGE

UL/IP

18-30

1.60

.548

31-45

1.50

.548

46-65

1.75

.500

Total

1.60

15

.507

18-30

1.30

10

.483

31-45

1.15

13

.376

46-65

1.09

11

.302

ABOVE 66

1.00

.000

Total

1.17

36

.378

18-30

2.00

.000

31-45

1.50

.707

46-65

1.33

.516

Total

1.50

10

.527

18-30

1.50

.548

31-45

1.43

.535

46-65

1.00

.000

ABOVE 66

2.00

.000

Total

1.43

21

.507

18-30

1.80

.447

31-45

1.57

.535

46-65

1.67

.516

Total

1.67

18

.485

18-30

1.54

28

.508

31-45

1.37

35

.490

46-65

1.31

32

.471

ABOVE 66

1.60

.548

Total

1.41

100

.494

MUTUAL FUND

EQUITY TRADING

FIXED DEPOSITS

BANK SAVINGS

Total

Mean

Std. Deviation

ANOVA Table
Source of variance

Sum of

Mean

Squares

df

Square

Sig.

3.947

.987

4.631

.002

Within Groups

20.243

95

.213

Total

24.190

99

Between

(Combined)

Groups

Level of significance = 0.05

INFERENCE
The level of significance is more thus it is concluded that the most preferred form of investment
among different age group of peoples is different.

Table 4.16 MEAN VALUE OF AWARE OF TYPE OF MUTUAL FUND AGE GROUP

WISE
MUTUAL FUND
AWARENESS

AGE

GROWTH FUND

18-30

1.67

.516

31-45

1.44

.527

46-65

1.38

.518

Total

1.48

23

.511

18-30

1.50

10

.527

31-45

1.45

11

.522

46-65

1.12

.354

ABOVE 66

1.00

.000

Total

1.35

31

.486

18-30

1.55

11

.522

31-45

1.31

13

.480

46-65

1.30

10

.483

ABOVE 66

2.00

Total

1.40

35

.497

18-30

1.00

31-45

1.00

.000

46-65

1.50

.548

ABOVE 66

2.00

.000

Total

1.45

11

.522

18-30

1.54

28

.508

31-45

1.37

35

.490

46-65

1.31

32

.471

ABOVE 66

1.60

.548

Total

1.41

100

.494

MONEY MARKET

EQUITY FUND

OTHER

Total

Mean

Std. Deviation

ANOVA Table
Source of variance

Sum of

Mean

Squares

df

Square

Sig.

.227

.076

.303

.823

Within Groups

23.963

96

.250

Total

24.190

99

Between

(Combined

Groups

Level of significance = 0.05

INFERENCE
The level of significance is less thus it is concluded that the different age group of people is not
aware of different type of Mutual Fund.

Table 4.18 MEAN VALUE OF VARIOUS SCHEMES OFFERED BY AMC AGE

GROUP

VARIOUS
SCHEME
OFFERED
BY AMC

AGE

MOST

18-30

1.83

.408

31-45

1.33

.500

46-65

1.22

.441

ABOVE 66

2.00

.000

Total

1.46

26

.508

18-30

1.50

14

.519

31-45

1.47

15

.516

46-65

1.57

.535

ABOVE 66

1.00

.000

Total

1.47

38

.506

18-30

1.38

.518

31-45

1.27

11

.467

46-65

1.25

16

.447

ABOVE 66

2.00

Total

1.31

36

.467

18-30

1.54

28

.508

31-45

1.37

35

.490

46-65

1.31

32

.471

ABOVE 66

1.60

.548

Total

1.41

100

.494

SOME

FEW

Total

Mean

Std. Deviation

ANOVA Table
Source of variance

Sum of

Mean

Squares

df

Square

Sig.

.616

.308

1.267

.286

Within Groups

23.574

97

.243

Total

24.190

99

Between

(Combined)

Groups

Level of significance =0.05

INFERENCE
The level of significance is less thus it is concluded that the different age group of respondents
not aware of the various schemes offered by AMC

Table 4.20MEAN VALUE OF SCHEMES TO INVEST GENDER WISE

SCHEMES TO
INVEST

GENDER

OPEN ENDED

MALE

2.13

31

.846

FEMALE

1.90

20

1.021

Total

2.04

51

.916

MALE

2.11

19

.809

FEMALE

2.00

16

.816

Total

2.06

35

.802

MALE

2.78

.667

FEMALE

2.60

1.140

Total

2.71

14

.825

MALE

2.22

59

.832

FEMALE

2.02

41

.961

Total

2.14

100

.888

CLOSE ENDED

INTERVAL

Total

Mean

Std. Deviation

ANOVA Table
Source of variance

Sum of

Mean

Squares

df

Square

Sig.

5.376

2.688

3.588

.031

Within Groups

72.664

97

.749

Total

78.040

99

Between

(Combined

Groups

Level of significance = 0.05

INFERENCE
The level of significance is more thus it is concluded that the male and female preferred to invest
more in open ended mutual fund schemes.

Chapter - 5
Summary & Conclusion

SUMMARY
Introduction:

A mutual fund is nothing more than a collection of stocks and/or bonds as a company that brings
together a group of people and invests their money in stocks, bonds, and other securities. Each
investor owns shares, which represent a portion of the holdings of the fund.

Mutual fund can make money in three ways:

1) Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of
the income it receives over the year to fund owners in the form of a distribution.

2) If the fund sells securities that have increased in price, the fund has a capital gain. Most funds
also pass on these gains to investors in a distribution.

3) If fund holdings increase in price but are not sold by the fund manager, the fund's
sharesincrease in price then it can be sell for a profit
.
Types of mutual fund
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.

Open-ended Fund

An open-ended Mutual fund is one that is available for subscription and repurchase on
a continuous basis. These Funds do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.

Close-ended Fund
A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.
The objective of the study is to

Explore the recent development process in Mutual Fund in India.

To find out the reason for investment in Mutual Funds.

To find out the investment perception of individual.

To find out what steps to be taken to boost Mutual Fund industry.

To recommend and promote best business practices and code of conduct to be followed
by members and other engaged in the activities of Mutual Fund agencies involved in the
field of capital markets and financial services.

FINDINGS OF THE STUDY:

Most of the respondents (35%) are from the age group of 31-45.

Most of the respondents (59%) are male and (41%) are female.

Around (59%) of the respondents married and (36%) are unmarried.

Among the respondents 54% are salaried and 46% are non salaried.

From the study it is found that 52% are belong to 3 lacs-5 lacs of income level.

From the study it is found that 96% of the respondents are savings.

As per the study the 37% of the respondents investment is the mode of savings.

The study shows that the 44% of the respondents invests around 10000 to 30000.

Nearly (27%) of the respondents current investment portfolio is Mutual Fund.

The study reveals that the 29% of the respondents investment objective is to build corpus
for retirement, save for children education /marriage, for medical emergencies and family
financial security.

The study shows that term of investment period of 37% is 2-5 yrs.

As per the study 32% has consider opportunity for steady growth is important before
choosing an investment.

According to the study 36% investors preferred to invest in Mutual Fund than other form
of investment.

Study shows that about 36% of Mutual Fund investors investing to save tax.

According to the study investors preferred equity fund type of Mutual Fund (35%) than
other type of Mutual Fund.

Study reveals that safety is extremely important at70% other than the sources of
information.

Being a Mutual Fund investor 38% are aware of some various schemes offered by AMC.

From the study it is found that Advertisement introduces Mutual Fund (40%) other than
friends and brokers.

Study shows that 51% of Mutual Fund investors prefer open ended schemes.

About 34% of the respondents primary investment focuses on to generate income.

Around 35% of investors consult while making an investment choice.

From the study it is found that 32% of the investors often make investment decisions and
execute them.

The Mutual Fund industry influences Mutual Fund investors at 73% in such that investors
like to invest more in future.

SUGGESTIONS:

As lack of awareness and Choice of other alternatives stand s the main reasons for not
taking a Mutual Fund Schemes, companies should concentrate more on creating
awareness among the public about the benefits of Mutual fund schemes.

As reliability stand as the main reason for selecting Mutual Funds, the companies should
promote Mutual Funds as a reliable investment alternative.

As investors are unaware of Mutual Funds as tax savings instrument, the AMCs should
highlight Mutual Funds as a tax savings instrument.

As many investors feel lack of security on investing in Mutual Funds companies should
make the customer aware about the existence of SEBI as a safety regulation to safeguard
the interests of investors through effective public relations.

In the present scenario success without brand awareness among investors is found to be
very sensitive, they always look for safe investments. For effective brand building the
AMCs should position the company as a safe investment vehicle. This will help the sales
force to a great extent.

The mutual Fund companies should offer documents more comprehensive by making
disclosures more simple and easy to understand and fund structure more distinctive to the
common man.

The disclosures regarding the Mutual Fund expenses more transparent especially
distributor expenses which form a major chunk of entry loads.

The fund managers should be accountable to unit holders. This can be done by organizing
Annual General Meetings of unit holders where performance of the fund can be reviewed.

As the regulator of financial services in the country, SEBI should initiate programs that
give investor knowledge about financial products in the country. Further investors should
be able to make decisions after knowing how Mutual Funds can be used for financial

planning. This could be done in association with AMCs AMFI and others participants in
financial sectors.

The survey reveals that the investors are basically influenced by the intrinsic qualities of
the product flowed by efficiency fund management and general image of the fund/scheme
in their selection of fund schemes. Hence it is suggested that AMCs should design
products consciously to meet the investors needs and should be alert to capture the
changing ,market moods and sentiments can be innovative. Continuous product
development and introduction of innovative products are a must to attract and retain this
market segment.

The parameters which need to be kept in mind before taking as investments decision are
1) return of competing funs 2) object of the fund 3) promoters brand name and image 4)
total return given by the fund on different schemes.

By analyzing the current scenario it can be concluded that the mutual fund industry in
India has a very bright future. Thus the study in consumer Perception on investment in
Mutual Fund shows that there is a lot of scope exits for making Mutual Fund as a
effective investment tools.

CONCLUSION:
With penetration levels at close to 7% great scope exists for the growth of mutual fund in India.
Mutual funds have to compete with insurance and bank deposits for a share of consumer savings.
This requires the regulator and the AMC in increase the creditability of Mutual Fund and develop
a trust among the average investors.
In order to make Mutual Funds more acceptable to the investor mutual fund industry has to
mature to offering comprehensive life cycle financial planning and not products alone. These
would include products catering to specific life cycle need like buying a house; funding college
admission etc. with increase in investor awareness many new products would be introduced.
As a savings of Indians increase and the range of financial products available to meet peoples
needs expand, the need for financial advice will increase. Mutual fund distribution-Advisors
should provide sound financial advice recording to investors risk profile and stage in life cycle.
Main merits by way of investing in mutual funds are 1) cheap access to expensive stocks 2) Many
baskets of assets diversifying the assets 3) a team of professional fund manages the funds from
in-depth research inputs from investment analysis. 4) MF industry has good bargaining power in
markets, MF have access to crucial corporate information which individuals, investors cannot
access.
A study of the previous financial year 2010-11 shows nearly 1 300% growth in the mutual fund
industry. Even recently when the share prices were down, mutual funds have escaped without
much loss. It surely states that mutual funds are regarded as a less risk investment. During 2010
around 40 NFOs were made. Almost 840 schemes were offered by the more than 32 companies
up to Dec 2010 even with foreign collaborations.

BIBLOGRAPHY
Journals

Magazine- Charted Financial Analyst July 2012

Journal- Financial of India

Journal- Marketing Funds

Books:

Association of Mutual Fund in India AMFI work book Mumbai 2006.

Fredman Albert j & Wiles Russ, How Mutual Fund work, Prentice Hall of India, New
Delhi, 1997

Kothari, C.R. Research Methodology, Methods &Techniques,New Age Second

edition ,page no

WEBSITES:
www.amfiindia.com
www.mutualfundsinindia.com
www.scribd.com
www.managementparadise.com
www.utimutualfund.com
www.icicidirect.com

Annexure

QUESTIONNAIRE:
1. Age
i) 18-30

ii) 30-40

2. Gender
i) Male

iii) 45-65

iv) Above 65

ii) Female

3. Marital Status
i) Married
ii) Unmarried
4. No. of Dependents
i) 1-3
ii) 3-5

iii) others
iii) Above 5

5. Occupation
i) Salaried

ii) Non-salaried

iii) others (Specify)

6. Income level Per Annum

I) Below 100000

ii) 100000-500000

iii) Above 500000

7. Do you save?
i) Yes

ii) No

8. Specify your mode of saving.

i) Fixed Deposit

ii) Investment

iii) others (Specify)

9. Current Value of your investment Per annum

i) 10000-30000

ii) 30000-50000

iii) Above 50000

10. Current investment portfolio

i) Mutual Fund

ii) Equity Trading

iv) Investment (UL/IP)

v) Bank Savings

11. Objective of your investment

a. To build a corpus for retirement
b. To save for children education/ marriage
c. To provide for medical emergencies
d. To provide for family financial security
e. All of the above

iii) Fixed Deposit, Post Office savings

12. Specify your term of investment.

i) under 2 yrs ii) 2-5 yrs

iii) 6-10 yrs

iv) 11-15 yrs

13. What factor would you consider most important before choosing an investment?
a. How quickly I will be able to increase my wealth.
b. The opportunity for steady growth
c. The amount of monthly income the investment will generate
d. The safety of my investment principle
14. Most preferred form of investment.
i) UL/IP

ii) Mutual Fund

iv) Fixed Deposit/ Post Office

iii) Equity Trading

v) Bank Savings

15. And, why?

i) Tax savings

ii) To create wealth

iii) Others future emergencies

16. Which type of Mutual Fund you are aware?

i)

Growth Fund

ii) Money Market fund iii) Equity Fund

iv) Other (specify)

17. Do you view following factors sources of information while

investing in Mutual Fund?

Rank (1. Extremely Important 2.Important 3.Neutral 4. Unimportant)

Safety
Liquidity
Returned Earned
Tax Savings
Performance of Past Schemes
Rating of Mutual Fund by Agencies
Advertisements

 Recommendations of friends & Relatives

18. Being a Mutual fund Investor, are you aware of the various scheme offered by the asset
management companies (AMC)?
i)

Most

ii) Some

iii) Very few

19. How did you know about Mutual Fund?

i) Advertisements

ii) Friends

iii) Brokers iv) Other (specify)

20. In which Mutual Fund scheme you prefer to invest.

i) Open Ended

ii) Close Ended iii) interval

21. What is your primary investment focus?

i) Retirement

ii) Wealth generation

iii) Capital preservation

iv) Income Generation

22. Do you consult while making an investment choice?
i) Every time

ii) Often

iii) Sometimes iv) Never

23. How often do you make investment decisions and execute them?
i) Once a month ii) Once in 3 months

iii) Once in 6 month iv) Once a year

24. Would you like to invest more in future?

i) Yes ii) No
25. Any Suggestion about investing in Mutual Fund?

Thank you