Understanding individual investors investment behavior in mutual funds

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  • 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 185 UNDERSTANDING INDIVIDUAL INVESTORS INVESTMENT BEHAVIOR IN MUTUAL FUNDS (A STUDY ON INVESTORS OF NORTH COASTAL ANDHRA PRADESH) Dr. K. Rakesh* Mr. V S M Srinivas** *Assistant Professor School of Management Studies MVGR College of Engineering Viziznagaram **Assistant Professor School of Management Studies MVGR College of Engineering Viziznagaram ABSTRACT After the Liberalization, Privatization & Globalization policy in India there was a drastic change in the market conditions and also there was changes observed in the behavioral and investment pattern of investor’s towards investments. After going through microscopic analysis it is found that the research was conducted in the space of financial risk adjusted returns, financial planning, investor’s behavior and so on. But there was no significant study was made to know the perceptions of the investor’s in making the investments in selected portfolios. Hence there exists a gap in the research. There must be a proper study to be conducted to find out behavioral elements of the investors to identify their attitude towards their investments. Hence, to fulfill the gap the following study has been initiated. Key Words: Behavioral, Investment pattern, Financial Planning, Perceptions, Attitude, Market conditions, Investor’s behavior INTERNATIONAL JOURNAL OF MANAGEMENT (IJM) ISSN 0976-6502 (Print) ISSN 0976-6510 (Online) Volume 4, Issue 3, (May - June 2013), pp. 185-198 © IAEME: www.iaeme.com/ijm.asp Journal Impact Factor (2013): 6.9071 (Calculated by GISI) www.jifactor.com IJM © I A E M E
  • 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 186 Executive summary: The study was presented in following sub headings • Introduction • Review of literature • Analysis & Discussions • Suggestions • Conclusion. Introduction includes, introduction to investment, objective of the study, methodology adopted and limitations of the study. Review of literature includes various studies made on behavior of investors on various investments also some literature was collected on study of perception levels of investors in portfolio investments. Analysis and discussions include the study of investors profile and their effective mobilization of the investments, it would be fruitful to examine and understand their socio-economic characteristics that influence, their behavior and performance in a large measure. Therefore, an attempt is made in this section to present the socio-economic profile of selected investors of several companies. Finally there were some suggestions which were made out of our study. INTRODUCTION Investment is a term with several closely-related meanings in business management, finance and economics, related to saving or deferring consumption. An asset is usually purchased, or equivalently a deposit is made in a bank, in hopes of getting a future return or interest from it. The basic meaning of the term being an asset held to have some recurring or capital gains. It is an asset that is expected to give returns without any work on the asset price. The term "investment" is used differently in economics and in finance. Economists refer to a real investment (such as a machine or a house), while financial economists refer to a financial asset, such as money that is put into a bank or the market, which may then be used to buy a real asset. • In finance, the purchase of a financial product or other item of value with an expectation of favorable future returns. In general terms, investment means the use money in the hope of making more money. • In business, the purchase by a producer of a physical good, such as durable equipment or inventory, in the hope of improving future business. Economics In economics, investment is the production per unit time of goods which are not consumed but are to be used for future production. Examples include tangibles (such as building a railroad or factory) and intangibles (such as a year of schooling or on-the-job training). In measures of national income and output, gross investment I is also a component of Gross domestic product (GDP), given in the formula GDP = C + I + G + NX, where C is consumption, G is government spending, and NX is net exports. Thus investment is everything that remains of production after consumption, government spending, and exports are subtracted. Finance In finance, investment equals to cost of capital, like buying securities or other monetary (financial) assets in the money markets or capital markets, or in fairly liquid real assets, such as gold, real estate, or collectibles. Types of financial investments include shares, other equity investment, and bonds (including bonds denominated in foreign currencies).
  • 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 187 These financial assets are then expected to provide income or positive future cash flows, and may increase or decrease in value giving the investor capital gains or losses. Trades in contingent claims or derivative securities do not necessarily have future positive expected cash flows, and so are not considered assets, or strictly speaking, securities or investments. Nevertheless, since their cash flows are closely related to (or derived from) those of specific securities, they are often studied as or treated as investments. Investments are often made indirectly through intermediaries, such as banks, mutual funds, pension funds, insurance companies, collective investment schemes, and investment clubs. Though their legal and procedural details differ, an intermediary generally makes an investment using money from many individuals, each of whom receives a claim on the intermediary Need for the study: During the last decade Indian financial sector has witnessed a lot of changes. As the financial markets is continuously becoming more efficient by providing more promising solutions to the investor. In this context investments relating to capital markets have made their mark. In a certain period, it crossed even bank savings also. It is mainly because of positive perception of investors towards investments viz., safety to their investments and appreciation to their capital. Despite of the glory with investments in the country, the investment pattern of Indian investors has been diluted. Due to turmoil of foreign banks followed by economic meltdown in USA, have negative influence on Indian Stock market coupled with failure of real estate market in the country. At the same time abnormal raise in the bullion prices also added fuel to the investment climate. All these factors have created a stage of stagnation to the investment trends in India. The Indian investor is in dilemma. He is hesitating to invest in any of the options that he have. Moreover some of them are trying to quit the present options also. In this juncture it is felt necessary to study and understand the investors’ perception and attitude towards investments. REVIEW OF LITERATURE Studies relating to Investors’ behavior in mutual fund investments Consumer behavior from the marketing world and financial economics has brought together to the surface as an exciting area for study and research: behavioral finance. The realization that this is a serious subject is, however, barely dawning. Analysts seem to treat financial markets as an aggregate of statistical observations, technical and fundamental analysis. A rich view of research waits this sophisticated understanding of how financial markets are also affected by the 'financial behavior' of investors. With the reforms of industrial policy, public sector, financial sector and the many developments in the Indian money market and capital market, Mutual Funds which has become an important portal for the small investors, is also influenced by their financial behavior. From the researchers and academicians point of view, such a study will help in developing and expanding knowledge in this field. A significant component of the capital market reforms in recent years has been the shift in focus from the individual to the institutional investor. With the current economic reforms and liberalization continuing, the investible resources of mutual funds are expected to grow rapidly. This study examines why mutual funds have prospered in the last few years, what is the extent of growth and whether the regulatory framework for their operation reflects the changing environment.
  • 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 188 The small investors purchase behavior does not have a high level of coherence due to the influence of different purchase factors. The buying intent of a mutual fund product by a small investor can be due to multiple reasons depending upon customers risk return trade off. Presently, more and more funds are entering the industry and their survival depends on strategic marketing choices of mutual fund companies, to survive and thrive in this highly promising industry, in the face of such cutthroat competition. Therefore, the mutual fund industry today needs to develop products to fulfill customer needs and help customers understand how its products cater to their Needs. A Mutual Fund is a trust that pools together the savings of a number of investors who share a common financial goal. All such investors buy units in a fund that best suit their needs - be it growth in capital, regular returns or safety of capital. Therefore, mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. For this study, among various mutual fund investors are identified in Coimbatore City. The study concludes that debt scheme are suitable for genuine investors as there exists a variety of investors needs depending on objective, expectations and risk taking abilities etc. It is good channel investing and turning it into an investment opportunity as well as for availing tax relief. There is no doubt that the determinant for investing in a mutual fund is the NAV factor. Mutual funds have to focus more on proper pricing, better investor servicing as well as offer handsome returns and to understand the psychology of investors. This study attempts to formalize the effect of demographic variables like marital status, gender, occupation and age on the source of investment advice which in turn affect the herd behavior of investors and probability of investment in near future. Further, postulations have been made for most preferred investment option and purpose of saving and source of investment. Impact of theoretical analysis on choice among investment alternatives has also been investigated. The analysis contributes to understanding the different investment choices made by households in India. The insights offered in the paper indirectly contribute in uncovering the various unexplained asset pricing puzzles. Studies relating to Investors’ perception levels SK Miglani (2007) in his study made an attempt to understand the Mutual Fund industry and its implications on the common investors on one hand and its returns and performance on the other. An analysis was made on the perceptual views of investors in “Investment Decision Making: P. Hnaumantha Rao and Vijay KR. Mishra (2007) in their article “Mutual Fund: A Resource Mobiliser in Financial Market” made a critical study of the role performed by Mutual Funds as a financial service in Indian Financial Market. “An empirical study of perceptual View of Investors” by Yesh Pal Davar and Suveera Gill (2007), The results of this study suggest that investor’s preferences are supposedly related to the actual performance of investments and the same is taken into account while forming an opinion about making future investment decision. The study entitled “A study on Investors perception towards Mutual Fund investments”, S. Sudalaimuthu and P. Senthil Kumar (2008) was concentrated on highlighting the investor awareness and preference in Mutual Fund schemes, factor that influences the investor in selecting Mutual Fund scheme, the level of satisfaction on the investment of Mutual Fund, problems faced by Mutual Fund investors and the investment objectives, preference among Fund types (balanced, growth, dividend etc.).
  • 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 189 An empirical study of “Indian Individual Investors Behavior” by Syed Tabassum Sultana (2010) was an attempt to know the profile of the investors and also to know their characteristics so as to know their preference with respect to their investments. The study also tried to unravel the influence of demographic factors like gender and age on risk tolerance level of the investors. The empirical results reported here reveal the fact that the mutual funds were not able to compensate the investors for the additional risk that they have taken by investing in the mutual funds. The study concludes that the influence of market factor was more severe during negative performance of the funds while the impact selectivity skills of fund managers was more than the other factors on the fund performance in times of generating positive return by the funds. It can also be observed from the study that selectivity, expected market risk and market return factors have shown closer correlation with the fund return. METHODOLOGY A sample of 400 Investors has been taken at stratified random sampling covering all categories viz. Executives, Non-Executives, etc., from the selected mutual fund companies among three regions viz. Srikakulam, Vizianagaram, and Visakhapatnam. The sample covers all the levels of the investors viz., small, medium and large. The details of sample size are presented in Table 1 Table 1: Showing the sample size of investors District No. of Investors Srikakulam 125 Vizianagaram 125 Visakhapatnam 150 TOTAL 400 DATA COLLECTION Data has been collected from both primary & secondary sources. The researcher personally visited the institutions and investing centers during February 2013 to May 2013. An administered close ended questionnaire was circulated to the selected investors in order to collect first-hand information. This has been followed by personal interviews of informal nature.
  • 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 190 Data was collected through the techniques of schedule, interview and observation. One comprehensive schedule meant for investors was designed and the same was administered after pre - testing in a pilot study. Interviews with the sample respondents took place at the times convenient to them. Convenient timings for the interviews have been fixed in advance mostly during early hours of the office or during lunch break and at times in the houses of respondents. Personal interviews were conducted with all the respondents. Secondary sources of data were also used and they include record files, brochures and other published and unpublished material of the institutions as well as outside stock broking agencies. The enquiry is essentially in the nature of a qualitative study. Though the study has not used any advanced quantitative methods, a few statistical techniques like the following were used wherever necessary to make the data more precision and systematization. ANALYSIS & DISCUSSIONS In view of the importance of the investors and their planning in mutual funds and for effective mobilization of the investments, it would be fruitful to examine and understand their socio-economic characteristics that influence, their behavior and performance in a large measure. Therefore, an attempt is made in this section to present the socio-economic profile of selected investors of several companies. Gender Traditionally most of the women in India are confined to kitchen and other domestic activities. Very recently, they are coming out of the kitchen burrows and are also seeking employment in order to supplement their family income. Still for obvious reasons, the investment pattern of women in the country is not encouraging. Marital status Marriage is an important event in one’s life. Marriage is treated as an important social institution in India. But its form and functions may vary according to the socio- cultural environment of the society. Marriage in India is considered as a religious sacrament in which a man and a woman are bound in permanent relationship for physical, social and spiritual purposes, sexual pleasure and procreation. It influences their style of living and also their attitude, disposition and commitment towards work. Sometimes, matters relating to their household also affect the state of mind of the employees at work. Size of the family The number of dependents will have a bearing on the economic conditions of the investor. It is natural that higher the number of dependents, higher would be financial burden on the family. It is pertinent to mention here that the observation of Morse study of white- collar workers, indicating that “more dependents one has, the less satisfaction he has with the job”. The annual income of the respondents is exhibited in the cross tabulation along with age and educational classification in the table 2 Distribution of age, income and education: Proportion of the sample data is presented in the table 1 given the distribution of age, income and education of the sample of 400 investors’.
  • 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 191 Table – 2 Distribution of age, income and educational Age * Educational * income Cross tabulation Income Educational Total SSC Inter/ Degree PG Professional less than 3 lakhs Age Less than 35 8 24 29 9 70 36-55 6 11 23 1 41 Above 55 3 6 7 3 19 Total 17 41 59 13 130 3.1-6 lakhs Age Less than 35 9 23 45 14 91 36-55 7 15 13 6 41 Above 55 2 7 16 4 29 Total 18 45 74 24 161 6 lakhs above Age Less than 35 6 15 28 8 57 36-55 3 9 15 3 30 Above 55 3 7 10 2 22 Total 12 31 53 13 109 Grand Total 400 Source: Data collected from survey From the above table it is to be observed that there are 3 income categories with less than 3 lakhs as one income group, 3.1 to 6 lakhs as another income group and 6 lakhs and above as another income group. Each income group is again divided into 3 different age groups as less than 35 with age as one age group, 36to55 with age as another age group and above 55 with age another age group. So, an individual can be in any of the above groups with a different Educational Qualification as SSC, Inter/Degree, PG and Professional. From, the above table it is clear that in the group of individuals with income less than 3 lakhs there are 17 individuals with SSC as educational qualification, 41 individuals with inter/degree as educational qualification, 59 individuals with post graduation as educational qualification and 13 are professionals. If the group of individuals with income ranging from 3.1 to 6 lakhs is considered it is to be noted that there are 18 individuals with SSC as educational qualification, 45 individuals with Inter/Degree as educational qualification,74 individuals with PG as educational qualification and 24 individuals as Professionals. Finally, when individuals with income more than 6 lakhs are considered there are 12 individuals with SSC as educational qualification,31 individuals with Inter/Degree as educational qualification, 53 individuals with post graduation as educational qualification and 13 professionals. Among all the income groups the group with 3.1 to 6 lakhs as income is large with 161 investors in which there are 91 in the age group less than 35, 41 individuals in the age group between 35 to 55 years and there are 29 members in the age group above 55 years.
  • 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 192 The group with income more than 6 lakhs is by far the smallest with 109 investors with 57 individuals in the age group less than 35, 30 individuals in the age group with the age 35 to 55 and 22 individuals in the age group above 55 years. After knowing the profile of the respondents it is necessary to know financial planning of the selected investors in the mutual funds. Its detailed information is presented in the following tables and later illustrated in the paragraphs that followed. Financial planning of investors’: In the process of study to know the investment pattern and the attitude towards investment in mutual fund of the investors, the following tables are drawn to show the perceptions of the respondents in regarding to mutual fund investments. Investors’ category of mutual fund investments against their age was shown in the table 3. Table 3 Showing category of mutual funds invested by investors in all three regions Age – Cross Tabulation Total Less than 35 35-55 Above 55 Bank Sponsored 96 56 33 185 Institutions 67 38 21 126 Private sector & Joint venture 55 18 16 89 Total 218 112 70 400 Source: Data collected from survey From the above table it is observed that out of 400 investors 185 investors are interested in investing in bank sponsored mutual funds because of security and 126 investors are interested in investing in institutions because of their returns, remaining 89 investors are interested in investing in private sector & joint venture to maximize their returns and to hedge against risk. Out of 185 investors 96 investors come from the group of individual with their age less than 35, 56 investors come from the group with age between 35 – 55 and remaining 33 come from the group with their age above 55 in this maximum number of investors fall in the group with age less than 35 who like to invest in bank sponsored mutual funds. Out of 126 investors’ 67 investors’ fall under<35 age group who would like to invest in institutions and 55 investors who fall<35 age group would like to invest in private sector & joint venture. If we observe the maximum number of investors fall in <35 age group investing in bank sponsored funds, institutions and in private sector & joint venture. After a brief review on investors’ perception on mutual fund investment it is necessary to know where and how the funds are invested its information is presented in the table no. 4
  • 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 193 Table 4 showing mutual fund schemes that are considered for investments. 1 - Open-ended; 2 - Growth fund; 3 - Closed-ended; 4 – Regular income fund; 5 - Liquid fund mid-cap; 6 - Long-cap sector fund Age – Cross Tabulation TotalLess than 35 35-55 Above 55 1;2 2 2 2 6 1;2;4;5 4 2 3 9 1;2;4 2 1 2 5 1;2;5 2 1 2 5 1;2;6 4 2 2 8 1;3 2 2 2 6 1;3;4;6 3 3 1 7 1;3;4 2 2 1 5 1;3;5 2 2 1 5 1;3;6 1 2 1 4 1;4;5 1 2 1 4 1;4;5;6 4 2 1 7 1;4;6 2 2 2 6 1;4 4 2 1 7 1;4 2 2 1 5 1;5 1 2 1 4 1;5 4 1 1 6 1;6 1 1 2 4 1;6 1 3 1 5 1 2 1 2 5 1;2;3 2 1 1 4 1;5 2 3 2 7 1;3;4 3 2 2 7 2;1 2 3 2 7 2;3 2 3 2 7 2;3;5;3 4 1 1 6 2;3;6 3 2 1 6 2;4;6 2 2 2 6 2;4;5 2 1 2 5 2;4;5 3 2 2 7 2;5 2 2 2 6 2;5;6;4 2 2 2 6
  • 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 194 2;5;6 2 3 1 6 2;5;3;4 3 2 2 7 2;5;3 2 2 1 5 2;6;4 1 1 1 3 2;3 2 2 2 6 2;1;6;3 4 3 1 8 2;6 2 2 2 6 3;4 2 2 2 6 3;4;5 2 3 2 7 3;4;6 2 3 1 6 3;4;6;1 2 3 1 6 3;5 2 2 2 6 3;5;1 2 2 1 5 3;5;2 2 3 2 7 3;6 1 2 1 4 3;6;2 2 2 2 6 3;6;2 3 2 2 7 3;1 1 2 2 5 3;1;2 2 2 2 6 3;2;1 4 1 2 7 3;5 2 2 2 6 4;3 2 3 2 7 4;5 2 1 2 5 4;5;6 3 2 2 7 4;6 2 2 2 6 1;2;4;6; 4 2 1 7 4;2 2 4 2 8 5;6;3 2 2 2 6 5;3 2 2 2 6 6;2 2 2 2 6 6;1;2;3 3 3 1 7 6;3 2 2 1 5 3;4 1 2 3 6 2;3 1 3 1 5 1;2;3; 2 3 2 7 150 140 110 400 Source: Data collected from survey
  • 11. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 195 From the above table we can observe that out of 400 respondents 150 investors fall under less than 35 age group, 140 investors fall under 35 – 55 and remaining 110 investors fall under above 55. Maximum number of investors prefers open – ended schemes because of the time it offers and they are interested in investing more than 3 funds. The individuals in age group <35 invest in more than 3 funds to maximize their returns and less number of investors are interested in Long-cap sector fund. After this brief review on investors’ preference of funds in mutual fund investment it is necessary to know what source encouraged them to invest, this was done with cross tabulation with age and information is presented in the table no. 5 Table 5 Showing sources of information have encouraged you to invest in mutual funds Age – Cross Tabulation Total Less than 35 35-55 Above 55 Friend suggestion 49 31 13 93 Broker or Agent 79 47 27 153 Advertisement 47 23 22 92 Self-decision 23 20 19 62 Total 198 121 81 400 Source: Data collected from survey From the above analysis we can observe that out of 153 investors 79 investors are depending on brokers or agents to get information and 49 investors are getting it from their friends, 47 investors are getting it from advertisement and 23 are depending on their own decision. Out of 400 investors 198 investors are less than 35 age group, 121 investors are between 35 – 55 age group and remaining 85 falls under age group above 55 in that 153 investors are getting information from broker or agent. After the brief review on investors’ source for encouraging them to invest in mutual fund, the mode of investment was also analyzed this was done with cross tabulation with age and information is presented in the table no.6 Table 6 Showing mode of investing in mutual funds Age – Cross Tabulation Total Less than 35 35-55 Above 55 Through agents 99 42 28 169 Through AMC 64 26 25 115 Through Banks 55 44 17 116 Total 218 112 70 400 Source: Data collected from survey
  • 12. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 196 From the above table we can observe that out of 400 investors 169 investors are investing through agents, 115 investors are investing through asset Management Companies and remaining 116 investors are investing through banks. Maximum number of investors are under age group less than 35 i.e. 218, while 112 investors come under 35 – 55 and remaining 70 fall under above 55. Investors are depending more on agents because they are authorized persons. After the brief review on investors’ mode of investment it is necessary to know what feature in mutual fund attracted them to invest, this was done with cross tabulation with age and the information is presented in the table no.7 Table 7 showing the feature of mutual funds that attracts the investors: 1-Diversification; 2-Better returns and safety; 3-Reduction in risk and transaction cost; 4-Tax benefit; 5-Regular income Age – Cross Tabulation TotalLess than 35 35-55 Above 55 1 6 3 3 12 1;2 18 8 6 32 1;2;3 3 1 0 4 1;3 34 14 10 58 1;4 17 14 6 37 1;4;5 2 1 0 3 1;5 0 4 2 6 2 9 4 2 15 2;3 5 4 3 12 2;4 3 0 0 3 2;4;5 76 41 22 139 2;5 0 2 3 5 3 13 3 1 17 3;2 4 3 2 9 3;4 12 4 7 23 3;5 2 0 0 2 4 13 6 3 22 5 1 0 0 1 Total 218 112 70 400 Source: Data collected from survey The above table clearly reveals that objective behind investment of funds. It is evident from the table that the investors in age group less than 35 years have a clear objective and many of them prefer to invest for better returns coupled with safety followed by minimization of risk with maximum tax benefits.
  • 13. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 197 SUGGESTIONS Some of the important suggestions drawn out of the study are mentioned below: Markets cover maximum schemes with equity share; hence it is suggested to have debt schemes, so that it can attract investors who expect better returns. Majority of the studies have gone on behavioral finance in the field of capital markets, scope of researching more on various schemes and investors’ attitude will lead to successful retaining of investors. Like banking, insurance and telecom, penetration of mutual fund schemes into market is more essential. Since investors will be of different age groups, it is to be advised for the agents to educate them in detail about various benefits, earnings etc. Also educational levels should be noted before explaining them about the details of the scheme. Organizations should improve proper infrastructural facilities to attract and retain the investors’ of all areas which help them providing best service to investors’. Monthly educational programs on mutual fund schemes at various levels should be conducted. Advice for the investors not to invest only by seeing the pattern of stock market blindly. It is advice that the investors have to deal only with/ through SEBI registered intermediaries Help desks are to be arranged at the investment centers. Language barrier should be overcome by the organizations in providing service for the investors. CONCLUSION Overall it can be understood that all age groups of investors are participating in mutual fund investments but more precisely that the investors belonging to the age group <35 years have a clear planning for investments and also prefer to take more risk to yield more returns. Hence it is a notable point for the organizations to concentrate on this particular age group to attract more investments through the mutual funds. REFERENCES 1. Avadhani, V.A: Investment and Securities Markets in India – Investment Management - Himalaya Publishing House, Mumbai, 1992. 2. Bhalla V K, Tuteja S K, “Investment Management (Securities Analysis and Portfolio Management)”, S Chand &Co.Ltd., New Delhi, 1995. 3. Bhole L M,”Financial Markets and Institutions”, Tata McGraw Hill, New Delhi, 1991. 4. D. Kandavel, Asst. Professor International Journal of Research in Commerce & Management, www.ijrcm.org.in, Volume No. 2 (2011), Issue No. 11 (November) ISSN 0976-2183. 5. Investment Pattern in Debt Scheme of Mutual Funds – An Analytical Study by A. Palanisamy, A. Sengottaiyan & G. Palaniappan International Journal of Management, IT and Engineering http://www.ijmra.us 285 March 2012 Volume 2 ISSN: 2249- 0558.
  • 14. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 - 6510(Online), Volume 4, Issue 3, May- June (2013) 198 6. Madhu S. Panigrahi, Economic and Political Weekly Vol. 31, No. 12 (Mar. 23, 1996), pp. 765+767+769-771+773+775 Published by: Economic and Political Weekly 7. P. Hanumantha Rao and Vijay KR. Mishra (2007), “Mutual Fund: A Resource Mobiliser in Financial Market”, VidyasagarUnversity Journal of Commerce, Vol.12, March . 8. Ranganathan, Kavitha, A Study of Fund Selection Behaviour of Individual Investors Towards Mutual Funds - with Reference to Mumbai City (2006). Indian Institute of Capital Markets 9th Capital Markets Conference Paper. Available at SSRN: http://ssrn.com/abstract=876874 or http://dx.doi.org/10.2139/ssrn.876874 9. S.K. Miglani (2007), (PhD Thesis-Abstract) “Performance Appraisal of Mutual Funds in India: Empirical Evaluation of Risk and Timings Performance”, Finance India, Vol. XXIV No.2, June 2010, pp. 549-552. 10. SaurabhAgarwal Dynamics of investor's behaviour: a survey-based study on Indian securities market, International Journal of Monetary Economics and Finance, Volume 4, Number 4/2011 11. Sudalaimuthu and P. Senthil Kumar (2008), “A study on Investors perception towards Mutual Fund Investments”, Journal of Management Trends, Vol. 5, No. 1, September 2007 – March 2008, pp. 106-117. 12. Syed Tabassum Sultana (2010), “An empirical study of Indian individual investor’s behaviour”, Global Journal of Finance and Management, Volume 2, Number 1, pp. 19-33. 13. Syed Tabassum Sultana (2010), “An empirical study of Indian individual investor’s behaviour”, Global Journal of Finance and Management, Volume 2, Number 1, pp. 19-33. 14. Yesh Pal Davar and Suveera Gill (2007), “Investment Decision Making: An empirical study of perceptual view of Investors”, Indian Institute of Management, Lucknow Journal, Vol. 6, No. 2, 2007, pp. 115-135. 15. Prof. Abdul Noor Basha and G.V.satya sekhar, “A Critical View of Undisclosed Facts of Disclosed Fact Sheets: A Case Study of Benchmarking of Mutual Funds”, International Journal of Management (IJM), Volume 1, Issue 2, 2010, pp. 44 - 52, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 16. Dr. Narayan Baser, Dr. Mamta Brahmbhatt, Jay Talati and Riddhi Sanghavi, “An Analytical Study on Investors’, Awareness and Perception Towards the Hedge Funds in Gujarat”, International Journal of Advanced Research in Management (IJARM), Volume 3, Issue 1, 2012, pp. 1 - 10”. ISSN Print: 0976 – 6324, ISSN Online: 0976 – 6332. 17. A.Vennila and Dr. R. Nandhagopal, “Study on Performance Evaluation of Mutual Fund Schemes in India During Pre-Recession, Recession and Post-Recession Period”, International Journal of Management (IJM), Volume 3, Issue 1, 2012, pp. 126 - 134, ISSN Print: 0976-6502, ISSN Online: 0976-6510. 18. www.indiainfoline.com 19. www.mutualfundsindia.com 20. www.sebi.gov.in 21. www.rbi.org