1

CHAPTER 1 INTRODUCTION

1.1

INDUSTRY PROFILE
The main components of capital market are securities market and

financial intermediaries. A formal capital market was present in our country from early 1900s.But remained very inactive at that time. The inactiveness of capital market has continued even after independence. The growth of capital market has acquired momentum only from mid eighties. Till then debt instruments were more popular and the investors have not shown much interest in direct investment. Besides the Governments policy towards promotion of capital market was also not much encouraging. Concentration was given to the growth of agricultural sector. The plan for industry-centered growth had been mainly encouraged only for eighties. During mid eighties the foreign collaboration policy of the Government has inspired the industries towards the channel of growth and development. It has been further strengthened by the liberation and privatization measures instituted by the Government as a part of new economic policy. This coupled with the excellent performance of the private sector has made the capital market more active.

The radical changes in the policies of the Government and the development of industrial sector have attracted many investors into the capital market. Investor satisfaction, motivation and the promotion of investment cult among the investors are given more emphasis. SEBI guidelines of investor protection, foreign equity participation and the permission of global issues etc. have given further contributed towards the growth of our capital market. The

2 growth of Indian economy, at present is virtually depends upon the growth of the capital market.

The Indian capital market has made substantial progress during the post-independence period. However, the amount of capital raised in the form of equity and preference shares and debentures by the corporate sector has not been large over a number of years. There has been a raising trend since 1975 but the increase was not all that large. The Indian capital market has grown so sharply in the 80s that the decade itself has been christened as a decade of the capital market. More particularly, during the later part of the eighties, the primary and the secondary markets have grown by leaps and bounds. It is evident from the fact that against an annual average amount of just Rs.90 crores raised from the new issues market in the 70s about Rs.27, 344 crores are being raised during 1992-93. The total capital issues of both the private and public sectors during the years ended 31st March 1991, 1992 and 1993 were Rs.9,683 crores Rs.13,450 crores and Rs.Rs.27,344 crores respectively. The number of public issues has also increased year by year and the total number of public issues of securities for the years ending as on 31st March 1991, 1992 and 1993 aggregate to 335,572 and 1,036 respectively. All these issues were subscribed to by the individual and institutional investors, non-resident Indians, foreign institutional investors and mutual funds, and the public participation was overwhelming and the issues were always over subscribed a number of times.

In tune with the growth in the new issues market during the eighties, the secondary market also expanded fast during this period. The number of stock exchanges has increased from 8 in 1980 to total of 21 in 1993. The membership of the stock exchanges has also increased substantially to around 3,000in 1993 from about 1,200 a decade ago. The listed companies of all stock exchanges stood to above 6,500 in 1993, which were only 2,733 in 1980. The market capitalisation has also shown a substantial increase in the eighties. The volume of daily turnover of trade has also increased more than

3 ten-fold over the decade to Rs.250 crores in 1992. On Bombay stock Exchange, the number of dealings per hour put through was as high as 40,000. The paid-up share capital of listed companies in 1980 was Rs.3, 143 crores, while in 1990; the figure was more than Rs.12, 000 crores. The market value of the capital of these limited companies stood at around Rs.3 lack crores in 1992.Besides, the number of joint stock companies at work has increased significantly to 2, 75, 664 with the paid-up capital of Rs.90, 962.2 crores as on 31st March 1993, which was only 56, 493 with the paid-up capital of Rs.14, 607 crores up to 31st March 1980.

Investor population has increased from 2 millions in 1980s and reached beyond 10,000 and the number of stock exchanges are 21.In addition to these stock exchanges the NSEIL and OTCEI have been set-up for solving the problem arising in out of the structural weaknesses of our market and provide more transparency in deals and a nationwide network of trade.

1.2

COMPANY PROFILE
In 1982, a group of Hyderabad based practicing Chartered

Accountants started KARVY CONSULTANTS LIMITED with a capital of Rs.1, 50,000 offering auditing and taxation services initially. Later, if forayed in to the registrar and share transfer activities and subsequently into financial services. All along, Karvys strong work ethic and professional background leveraged with information technology enabled it to deliver the quality to the individual. A decade of commitment, professional integrity and vision helped Karvy achieve a leadership position in its field when it handled the largest number of issues ever handled in the history of the Indian stock market in a year. Thereafter Karvy made inroads in to a host of capital market services,corporate and retail which proved to be a sound business strategy. Today, Karvy has access to millions of Indian share holders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has evolved as a veritable link between industry, finance and people. In January 1998, Karvy became the first depository participant in Andhra Pradesh. An ISO 9002 company, Karvys commitment to quality and retail reach has made it an integrated financial service company. A SEBI Category 1 Registrar, So far, Karvy has handled over 675 ISSUES as registrars to public issues, processed over 52 million applications and is servicing over 16 million investors from various locations spread over 205 clients. Range Of Services: The range of services offered by Karvy group of companies are issue servicing, corporate shareholder services, mutual fund investor servicing, asset financing, merchant banking & underwriting services, loan syndication and project financing products, Karvy depository services and investor services.Karvy also taken dealership of the OCTIE.

5 Achievements: Largest mobilize of funds as per PRIME DATABASE First ISO-9002 Certified Registrar in India A category 1 Merchant banker, Registrar to public Issue Ranked as The most admired registrar by MARG Handled the largest ever public issue- IDBI Handled over 500 Public issue as registrars Handling the reliance account which accounts nearly 10 million account holders.

KARVY GROUP OF COMPANIES

Karvy Consultants Limited: Transfer agency service for corporate and mutual funds Registrar for IPO/Book building Depository participant services Registered with both NSDL/CDSL IT enabled services-MT/Call center/data classification Karvy .com a comprehensive financial advisory site Karvy Investor Services Limited: Merchant banking and corporate financing Distribution of fixed income and other financial products Karvy Securities Limited: Distribution of equity and other financial products Karvy Stock Broking Limited: Secondary market trading Member National Stock Exchange(NSE) Trading through BSE

MILESTONES 1979- Like minded team of financial services professionals 1982- Technology to change service delivery process 1985- Entry as registrars 1990- Entry in to retail stock broking 1992- Set up investor service centers 1993- Financial product distribution 1994- Entry in to mutual fund services 1995- Corporate finance and investment banking 1996- Investment by jar dine Fleming 1997- Electronic study 1999- Global IT services (Medical Transcription, etc ;) 2000-E-Biz: Web initiatives 2002- Call centers. KARVY NETWORK Branches 65 ISCS 14 Karvy investor points 5500 Sub-Broker/agent Network MISSION STATEMENT Our mission is to be a leading, preferred service provider to our customer, and we aim to achieve this leadership position by building an innovative, enterprising and technology driven organization which will set the highest standards of service and business ethics. QUALITY POLICY

7 To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, Karvy will strive to exceed customers expectations.

CHAPTER 2 AIM OF THE PROJECT

2.1 OBJECTIVES OF THE STUDY OBJECTIVES: 1. To find out : The preference of investor towards various investment avenues. The most popular investment avenues recalled. The purpose of investment and frequency of investment. The investors risk profile. The approximate percentage of Investing and approximate percentage of savings in mutual funds. The objective of investment and preference of advice while investing. The public awareness on mutual funds. The preference towards the mutual fund sector. The mostly preferred mutual fund schemes. The factors considered while making a mutual fund investment.

8 To find out the satisfaction level of services provided by mutual funds agents. 2. To probe the influence of demographic factors such as Income, Age, Gender, Education, Occupation on Investment Avenues.

2.2 SCOPE OF THE STUDY

The project work titled A Study on Investment Pattern and Preference of Retail Investors in Chennai City with Special Reference to Mutual Funds for Karvy Consultants limited ,Chennai.

The scope of the study is to analyze and interpret the investment pattern and preference of various Investment avenues, and finding the relationship between the personal profile and financial profile (e.g.: Any Association between the Annual income and The Purpose of Investment).

Analyze and interpret the factors affecting the choice of Mutual Fund, and investor preference towards the various Mutual Fund schemes and preference of Mutual Fund Sector.

The Scope of the study involves collecting the data from the investors regarding the: 1. Current Investment Avenue 2. Risk Profile of investors 3. Objective of Investment 4. Purpose of Investment 5. Objective of Investment and 6. Preference of Advice of Investors.

2.3 LIMITATIONS OF THE STUDY

Every project has its own limitations and some of those encountered during this study are listed below:

Time limit restricted detailed survey work and Opinion collection. This study was conducted in Chennai City based on this result it is very difficult to generalize the result for the whole Individuals Investment pattern and Preference Some respondents were reluctant to give their actual Annual Income and Approximate percentage of Income Invest in various Investment Avenues. Cost factor was also serious limiting constraint.

10

2.4 RESEARCH METHODOLOGY

Research Design

Descriptive Research The Population of the project consists of the entire

Population

population of Chennai city excluding the student community.

3 4 5 6 7

Sample Technique Sample Size Sampling Unit Data Collection Data Collection Tools

Cluster Simple Random Sampling 240 Salaried, Business Man, Professional, Retired and Others like House wifes etc Primary and Secondary Data Collection Questionnaire

2.4.1 RESEARCH DESIGN:

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Descriptive research includes surveys and fact-findings and enquiries of different kinds. The Major purpose of descriptive research is the description of the state of affairs, as it exists at present. The main characteristic of this type of research is that the researcher has no control over the variables. He can only report what has happened and what is happening.

11

2.4.2 SAMPLING DESIGN:

2.4.2.1 Sampling Size: The sample size for this analysis is 240, which includes software professionals, BPO Executives, Retired People, Government people and Businessmen in Chennai.

2.4.2.2 Sampling Technique: The sampling method is adopted in this project is Cluster Simple Random Sampling. In Cluster Sampling, the entire Chennai city was divided into 4 clusters or groups namely north, east, west and south. From the each cluster 15 important meeting places selected and then a sample of 6 places were taken randomly from the selected 15 meeting places. And 10 respondents from the each meeting place were selected randomly for the study.

2.4.2.3 DATA COLLECTION: PRIMARY DATA COLLECTION: (Field work done) Primary Data are collected by using questionnaire SECONDARY DATA COLLECTION : Company Journals and Reports Magazines and Website (www.Karvy.com)

12 2.4.2.4 TOOLS USED: Simple Percentage Analysis Chi-Square Test Ranking Method

CHAPTER 3 3.1 ANALYSIS AND INTERPRETATION

3.1.1 General Profile of Investors: Marital Status, Age and Gender Age Gender Single Male Marital Status Total Single Female Marital Status Total Grand Total Interpretation: Married Married < 30 48 11 59 24 7 31 90 31-40 7 44 51 2 15 17 68 41-50 8 30 38 1 4 5 43 > 50 3 33 36 0 3 3 39 Total 66 118 184 27 29 56 240

13 Majority of the male respondents is under the category of less then 30 ages are unmarried, and next majority of the 31-40, 41-50 and above 50 age category are married. Majority of the female respondents is under the category of less then 30 ages are unmarried, and next majority of the 31-40, 41-50 and above 50 age category are married. 3.1.2 GENERAL PROFILE OF INVESTORS

Annual Income, Gender and Employment Annual Income Gender Salaried Professional Male Employment Details Business Retired Total Salaried Professional Female Employment Details Business Retired Total Grand Total 1-2 2-4 4-8 >8 < 1lakh lakhs lakhs lakhs lakhs 21 3 5 6 35 4 1 2 0 7 42 49 4 8 4 65 18 0 5 0 23 88 40 6 4 2 52 16 0 0 0 16 68 11 4 7 0 22 2 2 3 0 7 29 5 4 0 1 10 1 1 0 1 3 13 Total 126 21 24 13 184 41 4 10 1 56 240

14

Interpretation: Majority of male respondents are salaried people and majority of the male respondents are under the category of 1-2 lakhs. Majority of female respondents are salaried people and majority of the female respondents are under the category of 1-2 lakhs. 3.1.3 DETAILS REGARDING THE CURRENT INVESTMENT AVENUE OF INVESTORS Current Investment Avenues Investment Avenues No of Respondents Tradable Financial Instruments 16 Non Tradable Financial Instruments 42 Real Assets 7 Tradable and Non Tradable Financial 113 Instruments Tradable, Non-Tradable Financial 34 Instruments and Real Assets Tradable Instruments and Real Assets 14 Non Tradable and Real Assets 14 Total 240 FIG. 3.1.1

Percentage 6.67 17.50 2.92 47.08 14.17 5.83 5.83 100.00

15

CURRENT INVESTM ENT A VENUES

T radable Financial Instruments 120 100 80 RE SPONDE NTS 60 40 16 20 0 Frequency INVE STME AVE NT NUE S 7 14 14 T radable,Non T radable and Real Assets T radable Financial Instruments and Real Assets Non T radable Financial Instruments and Real Assets 42 113 Non T radable Financial Instruments Real Assets

34

T radable and Non Tradable Financial Instruments

Inference: Majority of respondents prefer Tradable and Non Tradable Financial Instruments then Real Assets. 3.1.4 DETAILS REGARDING THE VARIOUS INVESTMENT AVENUES S.No. 1 2 3 4 5 6 7 8 9 Current Investment Avenues Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office Scheme Public Provident Fund No of Respondents 92 151 48 32 73 142 25 82 35 Percentage 38.33 62.92 20.00 13.33 30.42 59.17 10.42 34.17 14.58

16

FIG. 3.1.2

Details Regarding Current Investment Avenues Shares

62.92 Mutual Funds 59.17 Golds Bonds 38.33 30.42 34.17 Fixed Deposit Insurance 13 10 14.58 Real Estate Post Office Scheme Public Provident Fund

Percentage

20

Investment Avenues

Inference: Out of 240 respondents more than half of them are Multi-Investors; mostly preferable Investment Avenues are Mutual Funds and next is Insurance: Majority of the respondents having more than 2 policies. 3.1.5 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND PURPOSE OF INVESTMENT Annual Purpose of Investment Total

17 Education & Marriage 19 23 17 7 66 Wealth Creation 6 23 16 17 62 Future Plans 6 36 24 12 78 42 88 68 41 240

Income <1 lakh 1-2 lakhs 2-4 lakhs >4 lakhs Total

Building 11 6 11 6 34

1. Hypothesis Null Hypothesis (H0) : There is no association between the annual income and purpose of investment. Alternate Hypothesis (H1) : There is an association between the annual income and purpose of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value 2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the annual income and purpose of investment. 3.1.6 FINDING THE ASSOCIATION BETWEEN THE GENDER AND PURPOSE OF INVESTMENT Gender Purpose Of Investment Total : Chi-Square Test of Independence : 0.05 :9 : 27.17 : 16.92 at 5% Level of Significance with 9 Degrees of Freedom

18 Education & Marriage Male Female Total 52 14 66 Wealth Creation 52 10 62

Building 21 13 34

Future Plans 59 19 78 184 56 240

1. Hypothesis: Null Hypothesis (H0) : There is no association between the gender and purpose of investment. Alternate Hypothesis (H1) : There is an association between the gender and purpose of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value : Chi-Square Test of Independence : 0.05 :3 : 6.23 : 7.81 at 5% Level of Significance with 3 Degrees of Freedom. 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is a no association between the gender and purpose of investment. 3.1.7 FINDING THE ASSOCIATION BETWEEN THE FREQUENCY OF INVESTMENT AND PURPOSE OF INVESTMENT Frequency of Investment Purpose of Investment Total

19 Education & Marriage Monthly And Quarterly Half yearly And Annually Total 36 30 66 Wealth Creation 42 20 62 Future Plans 42 36 78 148 92 240

Building 28 6 34

1. Hypothesis: Null Hypothesis (H0) : There is no association between the frequency of investment and purpose of investment. Alternate Hypothesis (H1): There is an association between the frequency of investment and purpose of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the frequency of investment and purpose of investment. : Chi-Square as a Test of Independence : 0.05 : 3 : 10.56 : 7.82 at 5% Level of Significance with 3 Degrees of Freedom.

3.1.8 FINDING THE ASSOCIATION BETWEEN THE AGE AND FREQUENCY OF INVESTMENT AGE Frequency Of Investment Total

20 Monthly & < 30 31-40 41-50 >50 Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and frequency of investment. Alternate Hypothesis (H1) : There is an association between the age and frequency of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value : Chi-Square Test of Independence : 0.05 :3 : 3.39 : 7.82 at 5% Level of Significance with 3 Degrees of Freedom. 7. Interpretation: Since the calculated value is less than tabulated Value, the Null Hypothesis is accepted. Therefore, there is no association between the age and frequency of investment. 3.1.9 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND FREQUENCY OF INVESTMENT Quarterly 59 45 23 21 148 Half yearly & Annually 31 23 20 18 92 90 68 43 39 240

21

Frequency Of Investment Annual Income Monthly & Quarterly <1 lakh 1-2 lakhs 2-4 lakhs >4 lakhs Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and frequency of investment. Alternate Hypothesis (H1) : There is an association between the annual income and frequency of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is a no association between the annual income and frequency of Investment. 3.1.10 FINDING THE ASSOCIATION BETWEEN THE EDUCATIONAL QUALIFICATION AND FREQUENCY OF INVESTMENT : Chi-Square Test of Independence : 0.05 :3 : 4.97 : 7.82 at 5% Level of Significance with 3 Degrees of Freedom 24 48 46 30 148 Half Yearly & Annually 18 40 22 12 92 42 88 68 42 240 Total

22

Educational Qualification Under Graduate & Others Post Graduate & Professional Total

Frequency of Investment Monthly 36 43 79 Quarterly 37 32 69 Half Yearly 18 18 36 Total Annually 30 26 56 121 119 240

1. Hypothesis: Null Hypothesis (H0) : There is no association between the educational qualification and frequency of investment. Alternate Hypothesis (H1) : There is association between the educational qualification and frequency of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is a no association between the educational qualification and frequency of investment. 3.1.11 FINDING THE ASSOCIATION BETWEEN THE FREQUENCY OF INVESTMENT AND RISK PROFILE OF INVESTORS : Chi-Square Test of Independence : 0.05 :3 : 1.25 : 7.81 at 5% Level of Significance with 3 Degrees of Freedom.

23

Frequency of investment

Risk Profile of investors Regular Return 36 41 77 Moderate Return 59 41 100 Total High Return 53 10 63 148 92 240

Monthly & Quarterly Half yearly & Annually Total

1. Hypothesis: Null Hypothesis (H0) : There is no association between the frequency of investment and risk profile of investors. Alternate Hypothesis (H1) : There is an association between the frequency of investment and risk profile of investors. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 5. Critical Value Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the frequency of investment and risk profile of investors. 3.1.12 FINDING THE ASSOCIATION BETWEEN THE FREQUENCIES OF INVESTMENT AND INVESTORS OF MUTUAL FUND : Chi-Square Test of Independence : 0.05 :4 : 21 : 5.99 at 5% Level of Significance with 4 Degrees of Freedom.

24

Investors of Mutual Fund Frequency Invested In Mutual Fund Monthly Quarterly Half Yearly Annually Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the frequency of investment and investors of mutual fund. Alternate Hypothesis (H1) : There is association between the frequency of investment and investors of mutual fund. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the frequency of investment and investors of mutual fund. 3.1.13 FINDING THE ASSOCIATION BETWEEN THE GENDER AND RISK PROFILE OF INVESTORS : Chi-Square Test of Independence : 0.05 :3 : 14.26 : 7.81 at 5% Level of Significance with 3 Degrees of Freedom. 64 43 18 32 157 Not Invested In Mutual Fund 15 26 18 24 83 79 69 36 56 240 Total

25

Risk Profile of investors Gender Regular Return Male Female Total 66 11 77 Moderate Return 73 27 100 High Return 45 18 63 184 56 240 Total

1. Hypothesis: Null Hypothesis (H0) : There is no association between the gender and risk profile of investors. Alternate Hypothesis (H1) : There is an association between the gender and risk profile of investors. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is No association between the gender and risk profile of investors. : Chi-Square Test of Independence : 0.05 :2 : 5.24 : 5.99 at 5% Level of Significance with 2 Degrees of Freedom.

3.1.14 FINDING THE ASSOCIATION BETWEEN THE AGE AND RISK PROFILE OF INVESTORS

26

Risk Profile of Investors Age Regular Return < 30 31-40 41-50 > 50 Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and risk profile of investors. Alternate Hypothesis (H1) : There is an association between the age and risk profile of investors. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation : Chi-Square Test of Independence : 0 .05 :6 : 7.93 : 12.5 at 5% Level of Significance with 6 Degrees of Freedom. : 22 24 17 14 77 Moderate Return 42 23 20 15 100 High Return 26 21 6 10 63 90 68 43 39 240 Total

Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is No association between the age and risk profile of investors. 3.1.15 FINDING THE ASSOCIATION BETWEEN THE EDUCATIONAL QUALIFICATION AND RISK PROFILE OF INVESTORS

27

Educational Qualification Under Graduate & Others Post Graduate & Professional Total

Risk Profile of Investors Regular Return 42 35 77 Moderate Return 47 53 100 High Return 32 31 63 Total

121 119 240

1. Hypothesis: Null Hypothesis (H0) : There is no association between the educational qualification and risk profile of investors. Alternate Hypothesis (H1) : There is an association between the educational qualification and risk profile of investors. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is an association between the educational qualification and risk profile of investors. 3.1.16 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND RISK PROFILE OF INVESTORS : Chi-Square Test of Independence : 0.05 :2 :1 : 5.99 at 5% Level of Significance with 2 Degrees of Freedom.

28

Risk Profile of Investors Annual Income Regular Return <1 lakh 1-2 lakhs 2-4 lakhs >4 lakhs Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and risk profile of investors. Alternate Hypothesis (H1) : There is an association between the annual income and risk profile of investors. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated Value, the Null Hypothesis is rejected Therefore, there is an association between the annual income and risk profile of investors. 3.1.17 FINDING THE ASSOCIATION BETWEEN THE RISK PROFILE AND PREFERENCE OF MUTUAL FUND SECTOR : Chi-Square Test of Independence : 0.05 :6 : 45.5 : 12.6 at 5% Level of Significance with 6 Degrees of Freedom. 24 37 9 7 77 Moderate Return 13 40 32 15 100 High Return 5 11 27 20 63 42 88 68 42 240 Total

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Preference of Mutual Fund Sector Risk profile Public Sector Regular Return Moderate return High Return Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the risk profile and preference of mutual fund sector. Alternate Hypothesis (H1) : There is an association between the risk profile and preference of mutual fund sector. 2. Statistical Test 3. Level of Significance 4. Degree of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the risk profile and preference of mutual fund sector. 3.1.18 FINDING THE ASSOCIATION BETWEEN THE RISK PROFILE AND PREFERENCE OF MUTUAL FUND SCHEMES : Chi-Square Test of Independence : 0.05 :4 : 26.59 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom. 21 23 5 49 Private Sector 19 27 12 58 Both The Sectors 6 18 26 50 46 68 43 157 Total

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Preference of Mutual fund Schemes Risk Profile Debt Regular Return Moderate Return High Return Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the risk profile and preference of mutual fund scheme. Alternate Hypothesis (H1) : There is an association between the risk profile and preference of mutual fund scheme. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the risk profile and preference of mutual fund scheme. 3.1.19 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND APPROXIMATE PERCENTAGE OF INVESTING : Chi-Square Test of Independence : 0.05 :4 : 21.46 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom. 13 13 9 35 Equity 28 46 15 89 Balanced & Others 5 9 19 33 46 68 43 157 Total

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Approximate Percentage of investing Annual income <10% < 2 lakhs 2 - 4 lakhs > 4 lakhs Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and approximate percentage of investing. Alternate Hypothesis (H1) : There is an association between the annual income and approximate percentage of investing. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value : Chi-Square Test of Independence : 0 .05 :6 : 56 : 12.59 at 5% Level of Significance with 6 Degrees of Freedom. 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the annual income and approximate percentage of investing. 3.1.20 FINDING THE ASSOCIATION BETWEEN THE APPROXIMATE PERCENTAGE OF INVESTING AND FREQUENCY OF INVESTMENT 45 8 5 58 10-20% 40 11 8 59 20-30% 37 23 8 68 >30% 8 26 21 55 130 68 42 240 Total

32

Approximate percentage Of Investment

Frequency of Investment Monthly & Quarterly Half yearly & Annually 33 29 30 92 58 59 123 240 Total

5 % To 10 % 10 % To 20% 20 And Above Total 1. Hypothesis: Null Hypothesis (H0)

25 30 93 148

: There is no association between the approximate percentage investment. of investment and frequency of

Alternate Hypothesis (H1) : There is an association between the approximate percentage investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is No association between the approximate percentage of investment and frequency of investment. 3.1.21 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND APPROXIMATE PERCENTAGE OF SAVINGS IN MUTUAL FUND : Chi-Square Test of Independence : 0.05 :2 : 21.46 : 5.99 at 5% Level of Significance with 2 Degrees of Freedom. of investment and frequency of

33 Approximate Percentage of Annual Income Savings In Mutual Fund < 10% < 2 lakhs 2 - 4 lakhs > 4 lakhs Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and approximate percentage of savings in mutual fund. Alternate Hypothesis (H1) : There is an association between the annual income and approximate percentage of savings in mutual fund. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated Value, the Null Hypothesis is rejected. Therefore, there is an association between the annual income and approximate percentage of savings in mutual fund. 3.1.22 FINDING THE ASSOCIATION BETWEEN THE APPROXIMATE PERCENTAGE OF INVESTMENT AND APPROXIMATE PERCENTAGE OF SAVINGS IN MUTUAL FUND : Chi-Square Test of Independence. : 0 .05 :2 : 11.21 : 5.99 at 5% Level of Significance with 2 Degrees of Freedom. 64 33 20 117 >10% 10 19 12 41 74 51 32 157 Total

34

Approximate Percentage of Approximate % of Investment 5% To 10% 10 To 20% >20% Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the approximate percentage of investment and approximate percentage of savings in mutual fund. Alternate Hypothesis (H1) : There is an association between the approximate percentages 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is No association between the approximate percentage of income and approximate percentage of savings in mutual fund. 3.1.23 FINDING THE ASSOCIATION BETWEEN THE GENDER AND OBJECTIVE OF INVESTMENT of investment and approximate percentage of savings in mutual fund. : Chi-Square as a Test of Independence : 0 .05 :2 : 5.01 : 5.99 at 5% Level of Significance with 2 Degrees of Freedom. Savings in Mutual Fund 10% and 5 % T0 10% Above 28 29 59 117 5 7 29 41 Total

33 36 88 157

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Objective of Investment Gender Capital Appreciatio n Male Female Total 38.33 11.67 50 Regular Income 35.27 10.73 46 Total Safety Liquidity Tax Benefits

41.40 12.60 54

29.13 8.87 38

39.87 12.13 52

184 56 240

1. Hypothesis: Null Hypothesis (H0) : There is no association between the gender and objective of investment Alternate Hypothesis (H1) : There is association between the gender and objective of investment 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value : Chi-Square Test of Independence : 0 .05 :4 : 10.67 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom. 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the gender and objective of investment. 3.1.24 FINDING THE ASSOCIATION BETWEEN THE AGE AND OBJECTIVE OF INVESTMENT

36

Objective of Investment Age Capital Appreciation < 30 31- 40 >40 Total 20 18 12 50 Regular Income 17 6 23 46 Safety 19 14 21 54 Liquidity 13 17 8 38 Tax Benefits 21 13 18 52 90 68 82 240 Total

1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and objective of investment Alternate Hypothesis (H1) : There is an association between the age and objective of investment 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the age and objective of investment. 3.1.25 FINDING THE ASSOCIATION BETWEEN THE EDUCATIONAL QUALIFICATION AND OBJECTIVE OF INVESTMENT : Chi-Square Test of Independence : 0 .05 :4 : 21.93 : 21.02 at 5% Level of Significance with 4 Degrees of Freedom.

37

Objective of Investment Educational Qualification Capital Appreciatio n 15 35 50 Total Regular Income 21 25 46 Safety 31 23 54 Liquidity 24 14 38 Tax Benefits 30 22 52 121 119 240

Under Graduate & Others Post Graduate & professional Total 1. Hypothesis:

Null Hypothesis (H0)

: There is no association between the educational qualification and objective of investment.

Alternate Hypothesis (H1) : There is association between the educational qualification and objective of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value : Chi-Square Test of Independence : 0 .05 :4 : 13.38 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom. 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is No association between the educational qualification and objective of investment. 3.1.26 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND OBJECTIVE OF INVESTMENT

38

Objective of Investment Annual Income Capital Appreciatio n < 2lakh 2- 4 lakhs Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and objective of investment. Alternate Hypothesis (H1) : There is an association between the annual income and objective of investment. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value : Chi-Square Test of Independence : 0 .05 :4 : 11.67 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom. 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the annual income and objective of investment. 3.1.27 FINDING THE ASSOCIATION BETWEEN THE 21 29 50 Regular Income 31 15 46 Tax Benefits 24 28 52 130 110 240 Total

Safety

Liquidity

36 18 54

18 20 38

39 ANNUAL INCOME AND ADVICE PREFERRED BY INVESTORS Educational Qualificatio n <1 lakh 1-2 lakhs 2-4 lakhs > 4 lakhs Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and advice preferred by investors. Alternate Hypothesis (H1) : There is an association between the annual income and advice preferred by investors. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is No association between the annual income and advice preferred by investors. 3.1.28 FINDING THE ASSOCIATION BETWEEN THE : Chi-Square as a Test of Independence : 0 .05 :6 : 12.28 : 12.59 at 5% Level of Significance with 6 Degrees of Freedom. Advice Preferred By Investors Family Member & Friends 26 41 26 13 106 Auditors & Financial Consultants 8 22 22 10 62 Total By Self 8 25 20 19 72 42 88 68 42 240

40 AGE AND INVESTORS OF MUTUAL FUND. Invested In Mutual Funds Age Invested In Mutual Fund < 30 31-40 41-50 > 50 Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and investors of mutual fund. Alternate Hypothesis (H1) : There is association between the age and investors of mutual fund. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is a No Association between the age and investors of mutual fund. 3.1.29 FINDING THE ASSOCIATION BETWEEN : Chi-Square Test of Independence : 0.05 : 3 : 5.23 : 7.82 at 5% Level of Significance with 3 Degrees of Freedom. 59 51 24 23 157 Not Invested In Mutual Fund 31 17 19 16 83 90 68 43 39 240 Total

41 THE AGE AND PREFERENCE OF MUTUAL FUND SECTOR

Preference Of Mutual Fund Sector AGE Public < 30 31-40 41-50 Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and preference of mutual fund sector. Alternate Hypothesis (H1) : There is an association between the age and preference of mutual fund sector. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is less than tabulated value, the Null Hypothesis is accepted. Therefore, there is a No association between the age and preference of mutual fund sector. 3.1.30 FINDING THE ASSOCIATION BETWEEN THE : Chi-Square Test of Independence : 0 .05 :4 : 5.58 : 9.45 at 5% Level of Significance with 4 Degrees of Freedom. 18 14 17 49 Private 23 15 20 58 Public & Private 18 22 10 50 59 51 47 157 Total

42 AGE AND PREFERENCE OF MUTUAL FUND SCHEMES Preference of Mutual Fund Schemes Age Debt <30 31-40 >40 Total 1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and preference of mutual fund schemes. Alternate Hypothesis (H1) : There is an association between the age and preference of mutual fund schemes. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Calculated Value2 6. Critical Value 7. Interpretation: Since the calculated value is greater than tabulated value, the Null Hypothesis is rejected. Therefore, there is an association between the age and type of mutual fund scheme. : Chi-Square Test of Independence : 0 .05 :4 : 20.39 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom. 15 16 4 35 Equity 30 20 39 89 Balanced &Others 14 15 4 33 59 51 47 157 Total

3.1.31 FACTORS AFFECTING IN CHOICE OF MUTUAL FUNDS

43

Total S.No. 1 2 3 4 5 6 7 8 9 Factors Capital Appreciation Better Annual Dividends High Return Compared To Other Investments Previous year Performance Better Portfolio Management Popularity Schemes Most Suitable For Your Needs Advertisement Friends- Suggestion Score 1016 1176 971 836 924 511 810 432 392 Rank 2 1 3 5 4 7 6 8 9

Interpretation: From the above we found that Investors Preference about Factors affecting in Choice of Mutual funds, Among the 9 factors Maximum Number of Investors preference is Better Annual Dividends FIG. 3.1.3
Factors Affetting In Choice of Mutual Funds 8 6 9

10 5 Ranks 5 0 2 3 1 4

Capital Appreciation Better Annual Dividents High Return Compared To Other Investments Previous year Performance Better Portfolio Management Popularity Schemes Most Suitable For Your Needs Advertisement Friends- Suggestion

3.1.32 SATISFACTION LEVELS OF SERVICES PROVIDED BY MUTUAL FUNDS AGENTS Standard Table:

44 Factor Excellent Satisfactory Poor Sample Size 157 157 157 Scale Value 3 2 1 Total 471 314 157

1. Services: Guidance and Advice Guidance & Advice No of Scale Value Respondents 77 3 71 9 2 1 Calculated value

Factor Excellent Satisfactory Poor

Total 231 142 9 382

Inference: The figure in above table shows that the calculated value 382, from the above Standard tables it is inferred that the Guidance and Advice are Excellent. 2. Services: Notification of New Schemes

45 Notification of New Schemes No of Scale Value Respondents 86 3 66 5 2 1 Calculated value

Factor Excellent Satisfactory Poor

Total 258 132 5 395

Inference: The figure in above table shows that the calculated value 395, from the above Standard tables it is inferred that the Notification of New Schemes is Excellent. 3. Services: Supplying and Collecting Forms Supplying And Collecting Forms No of Scale Value Respondents 70 3 80 7 2 1 Calculated value

Factor Excellent Satisfactory Poor

Total 210 160 7 377

46 Inference: Inference: The figure in above table shows that the calculated value 377, from the above tables it is inferred that the Supplying and collecting forms are Excellent 4. Services: Integrity Integrity Factor Excellent Satisfactory Poor No of Respondents 98 57 2 Scale Value 3 2 1 Calculated value Total 294 114 2 410

Inference: Inference: The figure in above table shows that the calculated value falls near 410.So from the above table it is inferred that the Integrity is Excellent. 5. Services: Solving Problem or Complaint with Mutual Funds Solving Problem No of Scale Value Respondents 15 3 110 32 2 1 Calculated value

Factor Excellent Satisfactory Poor

Total 45 220 32 297

47

Inference: Inference: The figure in above table shows that the calculated value falls near 297 from the above table it is inferred that the Solving Problem or Complaint with Mutual Funds is Excellent Agent Services Provided by Mutual Funds in Respect of: Services Provided By Mutual Funds Guidance And Advice Notification of New Schemes Supplying And Collecting Forms Integrity Solving Problem or Complaint With Mutual Fund

Excellent 77 86 70 98

Satisfactory 71 66 80 51

Poor 9 5 7 2

15

110

32

FIG. 3.1.4

48

Services Provided By Mutual Funds

Respondents

77

86 71 66 70

98 80 51

110

32 9 5 7 15 2
Integrity Solving Problemor Com plaint W Mutual ith Fund

Guidance Notification Supply ing And Advice of New And Schem es Collecting Form s

Services

Excellent

Satisfactory

Poor

3.1.33 FINDING THE ASSOCIATION BETWEEN THE AGE AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate. 8. Post Office Scheme, 9. Public Provident Fund. 1. Hypothesis: Null Hypothesis (H0) : There is no association between the age and current investment avenues. Alternate Hypothesis (H1) : There is an association between the age and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 : Chi-Square Test of Independence : 0.05 :3 : 7.81at 5% Level of Significance with 3 Degrees of Freedom :

49 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF CV 3.80 8.16 3.80 3.38 9.00 18.6 6.5 12.63 17.23 INTERPRETATION Accept the Null Hypothesis Reject the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Reject Reject Reject Reject the Null Hypothesis the Null Hypothesis the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.1.34 FINDING THE ASSOCIATION BETWEEN THE EDUCATION QUALIFICATION AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate. 8. Post Office Scheme, 9. Public Provident Fund. Setting Of Hypothesis:

50 Null Hypothesis (H0) : There is no association between the education qualification and current investment avenues. Alternate Hypothesis (H1) : There is an association between the education qualification and current investment avenues. Statistical Test Level of Significance Degrees of Freedom Critical Value Calculated Value 2 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF : Chi-Square Test of Independence : 0.05 :3 : 7.81 at 5% Level of Significance with 4 Degrees of Freedom : CV 22.17 21.51 4.61 4.88 .621 9.41 10.11 8.63 .553 INTERPRETATION Reject Reject the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Reject Reject Reject the Null Hypothesis the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis

51

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.1.35 FINDING THE ASSOCIATION BETWEEN THE EMPLOYMENT DETAILS AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate. 8. Post Office Scheme, 9. Public Provident Fund. 1. Hypothesis: Null Hypothesis (H0) : There is no association between the employment details and current investment avenues. Alternate Hypothesis (H1) : There is an association between the employment details and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 : Chi-Square Test of Independence : 0.05 :3 : 7.81 at 5% Level of Significance with 3 Degrees of Freedom :

INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF

CV 4.43 5.07 5.01 7.58 12.08 23.29 6.45 5.81 1.31

INTERPRETATION Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Reject Reject the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

52

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.1.36 FINDING THE ASSOCIATION BETWEEN THE ANNUAL INCOME AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate.8.Post Office Scheme, 9. Public Provident Fund. 1. Hypothesis: Null Hypothesis (H0) : There is no association between the annual income and current investment avenues. Alternate Hypothesis (H1) : There is no association between the annual income and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 : Chi-Square Test of Independence : 0.05 :4 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom :

53 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF CV 33.37 10.74 5.91 22.71 1.97 2.89 27.27 4.82 3.59 INTERPRETATION Reject Reject Reject the Null Hypothesis the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Reject the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.1.37 FINDING THE ASSOCIATION BETWEEN THE OBJECTIVE OF INVESTMENT AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate.8. Post Office Scheme, 9. Public Provident Fund. 1. Hypothesis: Null Hypothesis (H0) : There is no association between the objective of investment and current investment avenues.

54 Alternate Hypothesis (H1): There is an association between the objective of investment and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF : Chi-Square as a Test of Independence : 0.05 :4 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom : CV 15.14 12.22 2.29 3.53 9.67 4.03 4.03 .304 2.67 INTERPRETATION Reject Reject the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Reject the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

55

3.1.38 FINDING THE ASSOCIATION BETWEEN THE PURPOSE OF INVESTMENT AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate.8. Post Office Scheme, 9. Public Provident Fund. Setting Of Hypothesis: Null Hypothesis (H0) : There is no association between the purpose of investment and current investment avenues. Alternate Hypothesis (H1) : There is an association between the purpose of investment and current investment avenues. Statistical Test Level of Significance Degrees of Freedom Critical Value Calculated Value 2 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF : Chi-Square Test of Independence : 0.05 :5 : 11.07 at 5% Level of Significance with 5 Degrees of Freedom : CV 15.73 18.84 1.33 16.10 3.85 16.42 7.8 10.49 10.94 INTERPRETATION Reject Reject Reject Reject the Null Hypothesis the Null Hypothesis the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

56

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.1.39 FINDING THE ASSOCIATION BETWEEN THE FREQUENCY OF INVESTMENT AND CURRENT INVESTMENT AVENUES Current Investment Avenues: 1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate. 8. Post Office Scheme, 9. Public Provident Fund. 1. Hypothesis: Null Hypothesis (H0) : There is no association between the frequency of investment and current investment avenues. Alternate Hypothesis (H1) : There is an association between the frequency of investment and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 : Chi-Square Test of Independence : 0.05 :3 : 7.81 at 5% Level of Significance with 3 Degrees of Freedom :

57 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF CV 22.46 18.97 12.39 4.14 .470 1.311 5.18 3.30 1.01 INTERPRETATION Reject Reject Reject the Null Hypothesis the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.1.40 FINDING THE ASSOCIATION BETWEEN THE PREFERENCES OF ADVICE AND CURRENT INVESTMENT AVENUES

Current Investment Avenues:

1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate.8. Post Office Scheme, 9. Public Provident Fund.

1. Hypothesis:

58 Null Hypothesis (H0) : There is no association between the preferences of advice and current investment avenues. Alternate Hypothesis (H1) : There is an association between the preferences of advice and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF : Chi-Square Test of Independence : 0.05 :4 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom : CV 14.16 12.58 11.80 2.93 9.96 4.03 7.09 3.99 7.97 INTERPRETATION Reject Reject Reject Reject the Null Hypothesis the Null Hypothesis the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

59
* CV - Calculated Value *INV-AVENUES - INVESTMENT AVENUES

3.1.41 FINDING THE ASSOCIATION BETWEEN THE APPROXIMATE PERCENTAGES OF INVESTING & CURRENT INVESTMENT AVENUES

Current Investment Avenues:

1.Shares, 2.Mutual Funds, 3. Gold, 4. Bonds, 5. Fixed Deposit, 6.Insurance, 7.Real Estate.8. Post Office Scheme, 9. Public Provident Fund.

1. Hypothesis: Null Hypothesis (H0) : There is no association between the approximate percentages of investing and current investment avenues. Alternate Hypothesis (H1) : There is an association between the approximate percentages of investing and current investment avenues. 2. Statistical Test 3. Level of Significance 4. Degrees of Freedom 5. Critical Value 6. Calculated Value 2 INV-AVENUES Shares Mutual Funds Golds Bonds Fixed Deposit Insurance Real Estate Post Office PPF : Chi-Square Test of Independence : 0.05 :4 : 9.48 at 5% Level of Significance with 4 Degrees of Freedom : CV 28.31 13.48 7.34 0.80 2.77 8.86 12.00 2.05 3.67 INTERPRETATION Reject Reject the Null Hypothesis the Null Hypothesis

Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis Reject the Null Hypothesis Accept the Null Hypothesis Accept the Null Hypothesis

60

* CV - Calculated Value

*INV-AVENUES - INVESTMENT AVENUES

3.2 FINDINGS
ANALYSIS BASED ON PERSONAL PROFILE AND FINANCIAL PROFILE
Financial Profile Purpose of Investment Frequency of Investment Risk Profile App. Percentage of Investing App. Percentage of Savings MF Objectives of Investment Preference of Advice ASS NAS ASS NAS ASS NAS ASS NAS ASS NAS ASS NAS ASS NAS ASS PERSONAL PROFILE GEN NAS ASS AGE NAS NAS ASS EDU NAS NAS ASS AI ASS NAS ASS ASS ASS ASS NAS APP. NAS FREQ ASS ASS FINANCIAL PROFILE RISK ASS MF ASS SEC ASS SCH ASS -

61
Investors of MF Preference of MF Sector Preference of MF Scheme NAS ASS NAS ASS NAS NAS NAS ASS GEN EDU AI FREQ MF SEC SCH APP

Note: * ASS: ASSOCIATION * NAS: NOT ASSOCIATION

: GENDER : EDUCATIONAL QUALIFICATION : ANNUAL INCOME : FREQUENCY OF INVESTMENT : INVESTORS OF MUTUAL FUND : PREFERENCE OF MUTUAL FUND SECTOR : PREFERECNE OF MUTUAL FUND SCHEME : APP. PERCENTAGE OF INVESTING

Statistical evidence (Chi-Square test) has revealed the following findings Analysis based on personal profile and financial profile: Gender, age and education have a significant relationship with the objective of the investment. The frequency of investment in mutual fund has a significant relation ship with risk profile & investors in mutual funds. The risk profile of the respondents has a significant association with preference for mutual fund sector and mutual fund schemes. There is a significant association between age and preference for mutual fund scheme. There is a significant relationship between annual income and purpose of investment, risk profile and approximate percentage of investing. Analysis based on current investment avenues and Personal & financial profile: There is a significant association between the following: Investment in shares and education, annual income, objectives of investment ,purpose of investment, frequency of investment, preference for advice and approximate percentage of investing. Investment in mutual fund and age, education, annual income , objectives of investment ,purpose of investment, frequency of

62 investment, preference for advice and approximate percentage of investing. Investment in gold and frequency of investment, preference of advice. Investment in bond and annual income, purpose of investment. Investment in fixed deposit and age, employment, objective of investment and preference for advice. Investment in insurance and age, education, employment, objective of investment and preference of advice. Investment in post office schemes and age & education. Investment in public provident fund and age. To Sum up all : Investment in mutual funds, shares, fixed deposit & insurance are dependent on large number of factors. ANALYSIS BASED ON CURRENT INVESTMENT AVENUES AND PERSONAL & FINANCIAL PROFILE
CURRENT INVESTMENT AVENUES SHR NAS ASS NAS ASS NAS ASS NAS ASS NAS ASS NAS ASS NAS NAS ASS NAS ASS ASS ASS MF ASS ASS NAS ASS ASS ASS GOLD NAS NAS NAS NAS NAS NAS BOND NAS NAS NAS ASS NAS ASS NAS FD ASS NAS ASS INS ASS ASS ASS R.EST NAS ASS NAS ASS NAS NAS NAS POFF ASS ASS NAS NAS NAS NAS NAS PPF ASS NAS NAS NAS NAS NAS NAS

P&F PROF AGE

EDU

EMP

AI

NAS NAS ASS NAS NAS ASS

OBJ

PUR FREQ

NAS NAS

63
ASS ADV NAS ASS NAS ASS ASS ASS ASS ASS ASS ASS ASS ASS NAS NAS NAS ASS NAS NAS ASS NAS NAS NAS NAS -

APP.

NAS NAS -

Note: * ASS: ASSOCIATION

* NSS: NOT ASSOCIATION

*P & F: PERSONAL & FINANCIAL PROFILE. EDU EMP AI OBJ PUR FRE ADV APP. : EDUCATION : EMPLOYMENT : ANNUAL INCOME : OBJECTIVE : PURPOSE OF INVESTMENT : FREQUENCY OF INVESTMENT : PREFERENCE OF ADVICE : APPROXIMATE PERCENTAGE OF INVESTING SHR MF FD INS R.EST POFF : SHARES : MUTUAL FUNDS : FIXED DEPOSIT : INSURANCE : REAL ESTATE : POST OFFICE

GENERAL FINDINGS: The main reason why people invest were future plans (32.5%) and wealth creation (26%) Most of the respondents claimed that they invested on a monthly basis (62%), 29% of the respondents invest 20-30% of their income and 24% of the respondents invest 10-20% of their income. The main objectives claimed by the respondents for investing are tax benefits (22%) and safety (23%). Most of the respondents (42%) preferred taking a moderate risk. 45% preferred to get advice from family members and friends, 26% from auditors & consultants. Around 87% were aware of mutual funds and 65% among them have invested in mutual funds.

64 75% of them those who invested in mutual funds invest 5-10% of their savings. 37% prefer private mutual funds, 32% public mutual funds and 32% prefer both public & private sector mutual funds. 57% of those who have invested in mutual funds have opted for equity scheme. When asked to rank the factors in the choice of mutual funds the rank obtained were as follows: Better annual dividends -1, Capital Appreciation -2, High return compared to other investment -3 Better portfolio management -4, Previous year performance -5. More than 90% of the respondents were satisfied with the all kinds of service provided by mutual fund agents.

3.3 SUGGESTIONS AND RECOMMENDATIONS

1) Since safety is the factor, which influence the investors mostly by while making a Particular investment decision, Karvy Consultants Ltd shall project this aspect and shift towards financial products which offer maximum safety. Company shall make the investors aware about all the latest Investment opportunities available, which are less risky. 2) Investor those who invested in post office, fixed Deposit and insurance most of them have not invested in shares, mutual funds and bonds and other investment avenues, the main reason is that investors are not much aware about the latest investment avenues. So Company shall make the investors aware about all investment avenues. 3) The main factors affecting the choice of investment were found to be better annual returns, where as mutual funds are more risk averse and

65 diversified these 2 attributes can project during initial public offering on mutual funds. 4) Through the existing database, based on the income level, new financial products and schemes could be targeted at a particular income category which the company seems suitable.

3.4 CONCLUSION
The various factors identified in the study provide some valuable input regarding the investors pattern, their preference and Priorities this will guide the organization in designing financial products for the various segments of investors.

The buying intent of mutual fund product by a small investor can be due to multiple reasons depending upon the risk return trade off. Due to the reduction in the bank interest rates and high degree of volatility in Indian Stock market, investors are looking at an alternative for their investments, which will provide them higher, returns and also safety to their investments.

66 text : chart w. text : 1-13,16-41,43,44,46-60 14,15,42,45