A comprehensive study of perception regarding mutual funds

RAYAT COLLEGE OF EDUCATION, RAILMAJRA
Subject :- The Learner : Nature and development.
Topic:- Children with special needs.(Gifted, Backward, and Deliquent)
Submitted To: Submitted By:
Mrs. Shweta Passi Amrit Kaur
B.ed Sec-D
Roll No-100

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

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

Table of Content
Title Page No.
Declaration 2
Acknowledgement 3
Chapter 1. Introduction 8-19
Chapter 2. Review of Literature 20-24
Chapter 3. Objective & Methodology 25-31
Chapter 4. Data & Interpretation 32-74
Chapter 5. Summary & Conclusion 75-82
Bibliography 83
Annexure 84-87

LIST OF TABLES
Table
No
Table Name Page
No.
4.1 Table representing number of respondents on the basis of gender 17
4.2 Table representing number of respondents on the basis of age group 18
4.3 Table representing number of respondents on the basis of marital status 19
4.4 Table representing number of dependents in respondents family 20
4.5 Table representing occupation of the respondents 21
4.6 Table representing income level per annum of the respondents 22
4.7 Table representing saving of the respondents-gender wise 23
4.8 Table representing savings mode of the respondents-gender wise 24
4.9 Table representing current value of investment per annum of the respondents-
Income level per annum
25
4.10 Table representing current investment portfolio of the respondents-Gender wise 26
4.11 Table representing investment objective of the respondents Gender wise 27
4.12 Table representing investment term period of the respondents 28
4.13 Table representing factor to be consider most important before choosing an
investment by the respondents
29
4.14 Table representing most preferred form of investment by the respondents-age
group
30-31
4.15 Table representing reason for most preferred form of investment by the
respondents
32
4.16 Table representing type of Mutual Fund aware of by the respondents 33-34
4.17 Table representing ranking of respondents on the source of information while
investing in Mutual Fund -age group
35
4.18 Table representing aware of the various schemed offered by the Asset
Management companies (AMC) by the respondents- age group
35
4.19 Table representing way of known about Mutual Fund by the respondents 36
4.20 Table representing number of respondents on the basis of Mutual Fund schemes
they prefer to invest-gender wise
37
4.21 Table representing number of respondents on primary investment focus 38
4.22 Table representing consult while making an investment choice by the
respondents
39
4.23 Table representing on the basis of making investment decision and execute them 40
4.24 Table representing number of respondents like to invest more in future 41

LIST OF CHARTS AND TABLES
Chart &
Table
No.
Chart & Table Name Page No.
4.1 Chart showing number of respondents on the basis of age 17
4.2 Chart showing number of respondents on the basis of gender 18
4.3 Chart showing number of respondents on the basis of marital status 19
4.4 Chart showing number of respondents on the basis of no. of dependents in
the family
20
4.5 Chart showing number of respondents on the basis of occupation 21
4.6 Chart showing number of respondents on the basis of income level per
annum
22
4.7 Table showing number of respondents on the basis of savings 23
4.8 Table showing number of respondents on the basis of mode of savings 24
4.9 Table showing number of respondents on the basis of current value
investment
25
4.10 Table showing number of respondents on the basis of current investment
portfolio
26
4.11 Table showing number of respondents on the basis of objective of
investment
27
4.12 Chart showing number of respondents
on the basis of term of investment
28
on the basis of consider most important factor before choosing an
investment
29
4.14 Table showing number of respondents on the basis of most preferred form
of investment
30-31
on the basis of reason in most preferred form of investment
32
4.16 Table showing number of respondents on the basis of aware of type of
Mutual Fund
33
4.17 Chart showing ranking of respondents on the source of information while
investing in Mutual Fund
34
4.18 Table showing number of respondents on the basis of aware of various
schemes offered by AMC
35

on the basis of know about Mutual fund
36
4.20 Table showing number of respondents on the basis of prefer to invest in
Mutual Fund schemes
37
on the basis of primary investment focus
38
on the basis of consult while making an investment choice40
39
4.23 Chart showing number of respondents 41
on the basis of making investment decision and execute them
40
4.24 Chart showing number of respondents on the basis of Basis of like to
invest in future
41
4.7 Mean & ANOVA table of savings –Gender wise 42
4.8 Mean & ANOVA table of mode of savings –Gender wise 43-44
4.9 Mean & ANOVA table of current value of investment-income level 45-46
4.10 Mean & ANOVA table of current investment portfolio-Gender wise 47-48
4.11 Mean & ANOVA table of investment objective – Gender wise 49-50
4.14 Mean & ANOVA table of form of investment – age group wise 51-52
4.16 Mean & ANOVA table of aware of type of Mutual Fund 53-54
4.18 Mean & ANOVA table of various schemes offered by AMC –Age group 55-56
4.20 Mean & ANOVA table of schemes to invest – gender wise 57-58

INTRODUCTION
The origin of mutual fund industry in India is with the introduction of the concept of mutual fund
by UTI in the year 1963. Though the growth was slow, but it accelerated from the year 1987
when non-UTI players entered the industry
In the past decade, Indian mutual fund industry had seen dramatic improvements, both quality wise
as well as quantity wise. Before, the monopoly of the market had seen an ending phase; the
Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund family
raised the AUM to Rs. 470 bn in March 1993 and till April 2004; it reached the height of 1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is less than
the deposits of SBI alone, constitute less than 11% of the total deposits held by the Indian
banking industry
The main reason of its poor growth is that the mutual fund industry in India is new in the country.
Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it is the
prime responsibility of all mutual fund companies, to market the product correctly abreast of
selling.

PHASES
The mutual fund industry can be broadly put into four phases according to the development of the
sector. Each phase is briefly described as under.
First Phase - 1964-87
. Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The
first scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had
Rs.6,700crores of assets under management
Second Phase - 1987-1993 (Entry of Public Sector Funds)
Entry of non-UTI mutual funds, SBI Mutual Fund was the first followed by Canbank Mutual
Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov
89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC in 1989 and GIC in
1990. The end of 1993 marked Rs.47,004 as assets under management.
Third Phase-1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in
which the first Mutual Fund Regulations came into being, under which all mutual funds, except
UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged with
Franklin Templeton) was the first private sector mutual fund registered in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI (Mutual
fund) Regulation 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds setting
up funds in India and also the industry has witnessed several mergers and acquisitions. As at the
end of January 2003, there were 33 mutual funds with total assets of Rs. 1,21,805crores. The Unit
Trust of India with Rs.44,541crores of assets under management was way ahead of other Mutual
Funds
Fourth Phase - since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate entities. One is the
Specified Undertaking of the Unit Trust of India with AUM of Rs.29,835crores (as on January
2003). The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the preview of the
Mutual Fund regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is registered
with SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the
erstwhile UTI which had in March 2000 more than Rs.76,000crores of AUM and with the setting
up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and with recent
mergers taking place among different private sector funds, the mutual fund industry has entered
its current phase of consolidation and growth. As at the end of September, 2004, there were 29
funds, which manage assets of Rs 153108 crores under 421 schemes.

The major players in the Indian Mutual Fund Industry are:
GROWTH IN ASSETS UNDER MANAGEMENT

Mutual Funds: Definition
A mutual fund is nothing more than a collection of stocks and/or bonds. We can think of a mutual
fund as a company that brings together a group of people and invests their money in stocks,
bonds, and other securities. Each investor owns shares, which represent a portion of the holdings
of the fund.
Mutual Fund can make money in three ways:
• Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly
all of the income it receives over the year to fund owners in the form of a distribution.
• If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
• If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price then mutual fund can be sell shares for making profit.
Funds will also usually give you a choice either to receive a check for distributions or to
reinvest the earnings and get more shares.
Advantages of Mutual Funds
• Professional Management - The primary advantage of funds (at least theoretically) is the
professional management of money. Investors purchase funds because they do not have the time
or the expertise to manage their own portfolios. A mutual fund is a relatively inexpensive way for
a small investor to get a full-time manager to make and monitor investments.
• Diversification - By owning shares in a mutual fund instead of owning individual stocks or
bonds, the risk will spread out. The idea behind diversification is to invest in a large number of
assets so that a loss in any particular investment is minimized by gains in others. Large mutual
funds typically own hundreds of different stocks in many different industries. It would not be
possible for an investor to build this kind of a portfolio with a small amount of money.

• Economies of Scale - Because a mutual fund buys and sells large amounts of securities at a
time, its transaction costs are lower than what an individual would pay for securities transactions.
• Liquidity - Just like an individual stock, a mutual fund allows you to request that your shares
be converted into cash at any time.
• Simplicity - Buying a mutual fund is easy! Pretty well, any bank has its own line of mutual
funds, and the minimum investment is small. Most companies also have automatic purchase plans
whereby as little as $100 can be invested on a monthly basis.
Disadvantages of Mutual Funds:
• Professional Management - Many investors debate whether the so-called professionals are any
better than at picking stocks. Management is by no means infallible, and, even if the fund loses
money, the manager still takes cut.
• Costs - Mutual funds do not exist solely to make life easier - all funds are in it for a profit. The
mutual fund industry is masterful at burying costs under layers of jargon. These costs are so
complicated that in this tutorial devoted an entire section to the subject.
• Dilution - It's possible to have too much diversification. Because funds have smallholdings in
so many different companies, high returns from a few investments often don't make much
difference on the overall return. Dilution is also the result of a successful fund getting too big.
When money pours into funds that have had strong success, the manager often has trouble
finding a good investment for all the new money.

• Taxes - When making decisions about money, fund managers do not consider personal tax
situation. For example, when a fund manager sells a security, a capital gains tax is triggered,
which affects how profitable the individual is from the sale. It might have been more
advantageous for the individual to defer the capital gains liability.
Different Types of Mutual Funds
. At the fundamental level, there are three varieties of mutual funds:
1) Equity funds (stocks)
2) Fixed-income funds (bonds)
3) Money market funds
All mutual funds are variations of these three asset classes.
Money Market Funds
The money market consists of short-term debt instruments, mostly Treasury bills this is a safe
place to park the money. It will not get great returns A typical return is twice the amount earn in a
regular checking/savings account and a little less than the average certificate of deposit (CD).
Bond/Income Funds
The money market consists of short-term debt instruments, mostly Treasury bills this is a safe
place to park the money. It will not get great returns A typical return is twice the amount earn in a
regular checking/savings account and a little less than the average certificate of deposit (CD).
Income funds are named appropriately: their purpose is to provide current income on a steady
basis. When referring to mutual funds, the terms "fixed-income," "bond," and "income" are
synonymous. These terms denote funds that invest primarily in government and corporate debt.
While fund holdings may appreciate, the primary objective of these funds is to provide a steady
cash flow to investors. As such, the audience for these funds consists of conservative investors
and retires. Bond funds are likely to pay higher returns than certificates of deposit and money

market investments, but bond funds are not without risk. Because there are many different types
of bonds, bond funds can vary dramatically depending on where they invest Furthermore, nearly
all bond funds are subject to interest rate risk, which means that if rates go up the value of the
funds goes down
Balanced Funds
The objective of these funds is to provide a balanced mixture of safety, income and capital
appreciation. The strategy of balanced funds is to invest in a combination of fixed income and
equities. A typical balanced fund might have a weighting of 60% equity and 40% fixed income.
The weighting might also be restricted to a specified maximum or minimum for each asset class.
A similar type of fund is known as an asset allocation fund. Objectives are similar to those of a
balanced fund, but these kinds of funds typically do not have to hold a specified percentage of
any asset class. The portfolio manager is therefore given freedom to switch the ratio of asset
classes as the economy moves through the business cycle.
Equity Funds
Funds that invest in stocks represent the largest category of mutual funds. Generally, the
investment objective of this class of funds is long-term capital growth with some income. There
are, however, many different types of equity funds because there are many different types of
equities.
Global/International Funds
An international fund (or foreign fund) invests only outside your home country. Global funds
invest anywhere around the world, including the home country.
It is tough to classify these funds as either riskier or safer than domestic investments. They do
tend to be more volatile and have unique country and/or political risks. However, on the other
side, they can, as part of a well-balanced portfolio, actually reduce risk by increasing
diversification. Although the world's economies are becoming more inter-related, it is likely that
another economy somewhere is outperforming the economy of the home country.

Specialty Funds
This classification of mutual funds is more of an all-encompassing category that consists of funds
that have proved to be popular but don't necessarily belong to the categories we've described so
far. This type of mutual fund forgoes broad diversification to concentrate on a certain segment of
the economy
Sector funds are extremely volatile. Regional funds make it easier to focus on a specific
area of the world. This may mean focusing on a region (say Latin America) or an individual
country (for example, only Brazil). An advantage of these funds is that they make it easier to buy
stock in foreign countries, which is otherwise difficult and expensive. Just like for sector funds,
we have to accept the high risk of loss, which occurs if the region goes into a bad recession.
Socially responsible funds (or ethical funds) invest only in companies that meet the criteria of
certain guidelines or beliefs. Most socially responsible funds don't invest in industries such as
tobacco, alcoholic beverages, weapons or nuclear power. The idea is to get a competitive
performance while still maintaining a healthy conscience.
Index Funds
This type of mutual fund replicates the performance of a broad market index such as the S & P
500 or Dow Jones Industrial Average (DJIA) An investor in an index fund figures that most
managers can't beat the market. An index fund merely replicates the market return and benefits
investors in the form of low fees.

Types of mutual fund
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.
Open-ended Fund
An open-ended Mutual fund is one that is available for subscription and repurchase on
a continuous basis. These Funds do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV)related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.
Close-ended Fund
A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.
Consumer perception

A lot many factors are available that are considered by the investors before investing in mutual
funds. These factors are like consistency, ability, stability etc.
Returns from the funds have a great impact on the mind setup of the investors. It is found from
the study that majority of respondents believes that the past performance (47.44%) of the scheme
is considered as an important element while choosing right type of mutual fund scheme. After
past performance the investors give importance to stability (29.59%), consistency (17.34%) and
ability (5.63%). From table 6 it is clear that all the demographic factors like qualification, age,
occupation and annual family income have no impact on the factors considered by the investors
before choosing the right kind of fund at 5% level of significance.
CRITERIA FOR EVALUATING THE PERFORMANCE OF MUTUAL FUNDS
Most of the investors evaluate the performance of mutual funds before making investment in
them. For evaluating the performance of different mutual fund schemes, a number of methods are
available. As per the study, majority of the respondents prefer absolute returns of the funds
(42.10%) and funds return to returns on other similar schemes (22.10%) as a criteria for
evaluating the performance of mutual funds schemes.

Chapter – 2
Review of Literature

REVIEW OF LITERATURE
William fung and David a. hsieh (1991) explored the investment styles in mutual fund hedge
funds. The results indicated that there were 39 dominants mutual fund styles that were mixes or
specialized subsets of 9 broadly define user classes. There was little evidence of market timing
of asset class rotation in these dominants mutual fund styles. Thus, a 12 factor model with 9 asset
classes and three dynamic trading strategies provided a good first step in a unified approach for
performance attributions and style analysis of mutual funds and hedge funds.
Jaidev (1999) evaluated the performance of two growth oriented mutual funds (master gain and
magnum express) on the basis of monthly returns compared in benchmark returns. For that
purpose, risk adjusted performance measures suggested by jenson, treynor and hsarpe were
employed. It was found that, Mastergain had performed better according to jenson and treynor
measures and on the basis of Sharpe ratio it’s performance was not upto the benchmark. The
performance of Magnum Express was poor on the basis of all these three measures. However,
Magnum Express was well diversified and had reduced it’s unique risk where as Master gain did
not. It can be concluded that, the two growth oriented funds had not performed better in terms of
total risk and the funds were not offering advantages of diversification and professionalism to the
investors.
HanumanthaRao and Vijay Kr. Mishra found mutual funds have emerged as an important
segment of financial market of India, especially as a result of the initiatives taken by the govt. of
India for resolving problems relating to UTP’s US-64 and to liberalized tax liabilities on the
incomes earned by the mutual funds. They now play a very significant role in channelizing the
savings of millions of individuals into the investment in equity and debt instruments. This paper
aims at making a critical study of the role performed by mutual funds as a financial service in
Indian financial market.
11

Sotiris Zontos, Skiadas Christos and Yiannis Valvis developed strategies that enabled
portfolio managers to improve market timing by learning to recognize leading indications of
forthcoming changes. They aimed to test, in a Mutual fund series, of the predicting ability of a
long term moving averages were made, for the same time series for different values of short term
and long term moving averages and the profitability of this method was calculated. The method
was proved profitable if no buy and sell cost was counted.
Mark Grinblatt (1992) empirically examined the Jensen Measures, the positive period
weighting measures, developed in Grinblatt and titman (1990a), measures developed from the
TreynorMazuy (1969) quadratic regression on a sample 179 mutual funds, using a variety of
benchmark portfolios. They found that the measures generally yield similar inference when using
the same benchmark and those inferences could vary, even from the same measures, when using
different benchmarks. Several benchmark, developed there, appeared in improve upon traditional
benchmark for assessment of fund performance. This superior benchmark consisted of sets of
portfolio formed on the basis of securities characteristics. Tests of fund performance that
employed fund characteristics, such as ne asset value, load, expenses, portfolio turnover,
management fee, and past performance were also reported. Those potentially more powerful tests
suggested that past performance and turnover were positively related to fund performance.
The Week, March 18th
2010: Money…The route to take; Best options in a changing market.
A study conducted on various investment options and its importance.
Major findings of the study are as follows:
Bank deposit: the demand for credit has led to an increase in different for deposits to banks.
With the demand for deposits increasing, internet rates are not expected to come down in the
nearer future. Banks are given better returns than post office deposits to stem any flow there, too.
12

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

Lubos Pastor and Robert F. Stambaugh (2003) developed and applied a framework in which
believed about pricing models and managerial skill play roles in both performance evaluation and
investment decisions. They analyzed non- benchmark passive assets provides additional
information about mutual funds’ performance measures and expected returns and in additions,
non benchmark assets help account for common variation in fund returns, making the investment
problem feasible with a large universe of funds. A mutual fund’s performance measures, alpha,
was defined relative to a set of passive benchmarks.
Kozup, John C., Elizabeth Howlett and Michael Pagano (2011), choosing how to best invest
for retirement is one of the most important decisions a consumer can make. Unfortunately, this
can be an especially challenging task given the current financial information disclosure
environment. The objective of this research is to explore whether a single page supplemental
information disclosure impacts investors’ fund evaluations and investment intentions. Results
indicate that while investors continue to place too much emphasis on prior performance, the
provision of supplemental information, particularly in a graphical format, interacts with
performance and investment knowledge to influence perceptions and evaluations of mutual
funds.

Chapter – 3
Objectives & Methodology

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

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

ANOVA:
Analysis of variance (ANOVA) is a collection of statistical models used to analyze the
differences between group means and their associated procedures (such as "variation" among and
between groups), developed by R.A. Fisher. In the ANOVA setting, the observed variance in a
particular variable is partitioned into components attributable to different sources of variation. In
its simplest form, ANOVA provides a statistical test of whether or not the means of several
groups are equal, and therefore generalizes the t-test to more than two groups. Doing multiple
two-sample t-tests would result in an increased chance of committing a type I error. For this
reason, ANOVAs are useful in comparing (testing) three or more means (groups or variables) for
statistical significance.
Ranking
ANOVA on ranks means that a standard analysis of variance is calculated on the rank-
transformed data. Conducting factorial ANOVA on the ranks of original scores has also been
suggested. However, Monte Carlo studies, and subsequent asymptotic studies found that the rank
transformation is inappropriate for testing interaction effects in a 4x3 and a 2x2x2 factorial
design. As the number of effects (i.e., main, interaction) become non-null, and as the magnitude
of the non-null effects increase, there is an increase in Type I error, resulting in a complete failure
of the statistic with as high as a 100% probability of making a false positive decision. Similarly, it
was found that the rank transformation increasingly fails in the two dependent samples layout as
the correlation between pretest and posttest scores increase. It was also discovered that the Type I
error rate problem was exacerbated in the context of Analysis of Covariance, particularly as the
correlation between the covariate and the dependent variable increased.

Mean values in probability and statistics, mean and expected value are used synonymously to
refer to one measure of the central tendency either of a probability distribution or of the random
variable characterized by that distribution. In the case of a discrete probability distribution of a
random variable X, the mean is equal to the sum over every possible value weighted by the
probability of that value; that is, it is computed by taking the product of each possible value x of
X and its probability P(x), and then adding all these products together, giving .
[2]
An analogous formula applies to the case of a continuous probability distribution. Not every
probability distribution has a defined mean; see the Cauchy distribution for an example.
Moreover, for some distributions the mean is infinite: for example, when the probability of the
value is for n = 1, 2, 3, ....
For a data set, the terms arithmetic mean, mathematical expectation, and sometimes average are
used synonymously to refer to a central value of a discrete set of numbers: specifically, the sum
of the values divided by the number of values. The arithmetic mean of a set of numbers x1, x2, ...,
xn is typically denoted by , pronounced "x bar". If the data set were based on a series of
observations obtained by sampling from a statistical population, the arithmetic mean is termed
the sample mean (denoted ) to distinguish it from the population mean (denoted or ).
For a finite population, the population mean of a property is equal to the arithmetic mean of the
given property while considering every member of the population. For example, the population
mean height is equal to the sum of the heights of every individual divided by the total number of
individuals. The sample mean may differ from the population mean, especially for small samples.
The law of large numbers dictates that the larger the size of the sample, the more likely it is that
the sample mean will be close to the population mean.
Percentage method
The percentage method is generally used by employers that have automated payroll systems or
payroll service providers. Although this method involves more complicated calculations, it is
more flexible than the wage bracket method because it can be applied to payroll periods, such as

quarterly, semiannual, and annual, and to wage amounts that exceed those in the wage bracket
tables.
Method of analysis
Comparative Mean study is done here. It includes surveys of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present. The problem
identified was “The study on Consumer Perception on Investment in Mutual Funds.”
SAMPLING TECHNIQUES
The sample population for research was the investors who have invested in Mutual Fund through
different financial Mutual Fund companies in PUNJAB, HIMACHAL PRADESH, HARYANA
Sample size is 100.
Data has been presented with the help of bar graph, pie charts, etc.
RESEARCH INSTRUMENTS
 Questionnaire method is used. The structured and straight forward questionnaire was used
so that valid and accurate data can be collected.
 SPSS software package were used for graphical representation and analysis of data.
 Simple percentage, Ranking, Mean values (scores) and Analysis of Variance (ANOVA)
method were used to interpret various data collected through questionnaire.
DURATION OF THE STUDY
The study was carried out for a period of three months, from 1st
January 2014 to 31st
March 2014

DATA SOURCE
Primary Data- Primary data was collected through questionnaire giving directly to respondents
and also through by mail.
Secondary Data- Secondary data was collected from various websites, reports, brochure and
articles from various journals, newspapers and magazines, etc.
LIMITATIONS OF THE STUDY
 The study was restricted to Punjab , Haryana, Himachal pradesh only.
 The Mutual fund industry is unpredictable and keeps on varying from time to time it is
difficult to collect accurate data.
 Some respondents were reluctant to divulge personal information which can affect the
validity of all responses.
 Sample size was limited to 100 educated investors in urban and semi urban areas only.

Chapter – 4
Data Analysis & Interpretation

Table No.4.1- TABLE REPRESENTING NUMBER OF RESPONDENTS ON
THE BASIS OF GENDER
INTERPRETATION
. The table shows that 59% of the respondents are male and 41% of the respondents
are female from the total population of 100.
Figure No.4.1 – CHART SHOWING NUMBER OF RESPONDENTS ON
THE BASIS OF GENDER
Gender Number of Respondents Percentage (%)
Male 59 59
Female 41 41
Total 100 100

THE BASIS OF AGE GROUP
INTERPRETATION
The table indicates that 35% of the respondents belong to the age group 31-45 and 5% of the
respondents belong to the age group of above 66.
Figure No.4.2 – CHART SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF
AGE GROUP
Age group Number of Respondents Percentage (%)
18-30 28 28
31-45 35 35
46-65 32 32
Above 66 5 5
Total 100 100

THE BASIS OF MARITAL STATUS
INTERPRETATION
The above table shows that 64% of the respondents are married and 36% of the
respondents are unmarried.
Marital Status Number of Respondents Percentage (%)
Married 59 64
Unmarried 36 36
Total 100 100

Figure No.4.3 – CHART SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF
MARITAL STATUS
THE BASIS OF NUMBER OF DEPENDENTS
INTERPRETATION
The above table shows that 61% of the respondents have 0-3 no. of dependents in their family
and 7% of the respondents have above 5 no. of dependents.
No. of Dependents Number of Respondents Percentage (%)
0-3 61 61
3-5 32 32
Above 5 7 7
Total 100 100

Figure 4.4 CHART SHOWING NUMBER OF DEPENDENTS
THE BASIS OF OCCUPATION
Occupation Number of Respondents Percentage (%)
Salaried 54 54
Non salaried 46 46
Total 100 100
INTERPRETATION
The table shows that 54% of the respondents are salaried and 46% of the respondents are
non salaried.

Figure No.4.5 – CHART SHOWING NUMBER OF RESPONDENTS ON THE
BASIS OF OCCUPATION
Table No.4.6 - TABLE REPRESENTING NUMBER OF RESPONDENTS ON
THE BASIS OF INCOME LEVEL
INTERPRETATION
The table shows that 52% of the respondents belong to the income level of 3 lacs – 5 lacs
and 15% of the respondents belong to the income level of above 5 lacs.
Income Level Number of Respondents Percentage (%)
Below 3 Lacs 33 33
3 Lacs – 5 Lacs 52 52
Above 5 lacs 15 15
Total 100 100

Figure No.4.6 – CHART SHOWING NUMBER OF RESPONDENTS ON THE
BASIS OF INCOME LEVEL
Table 4.7 TABLE REPRESENTING SAVINGS BY GENDER WISE
Savings Gender No of respondents
Yes Male 57
Female 39
Total 96
No Male 2
Female 2
Total 4
Total Male 59
Female 41
Total 100

INTERPRETATION
The above table interpret that 57 of the Male respondents and 39 of the respondents female do
savings
Table 4.8 TABLE REPRESENTING MODE OF SAVINGS BY GENDER WISE
Mode of savings Gender No of respondents
Fixed deposits Male 24
Female 13
Total 37
Investment Male 20
Female 16
Total 36
Others Male 15
Female 12
Total 27
Total Male 59
Female 41
Total 100
INTERPRETATION
The above table shows that 24 of Male the respondents’ mode of savings is Fixed Deposits and
16 of the Female respondents’ mode of savings is investment.
Table 4.9 TABLE REPRESENTING CURRENT VALUE OF INVESTMENT BY

INCOME LEVEL WISE
Current value of investment Income level per annum No of respondents
10000-30000 Below 300000 20
300000-500000 20
Above 500000 4
Total 44
30000-50000 Below 300000 6
300000-500000 23
Above 500000 5
Total 34
Above 50000 Below 300000 7
300000-500000 9
Above 500000 6
Total 22
Total Below300000 33
300000-500000 52
Above 500000 15
Total 100
INTERPRETATION
The above table shows that the income level of below 300000(20) respondents’current
investment is 10000-30000, the income level of 300000-500000 respondents’ (23) current
investment is 30000+50000 and the income level of above 500000 respondents’(6) current
investment is above 50000.
Table 4.10 TABLE REPRESENTINGCURRENT INBESTMENT PORTFOLIO BY

GENDER WISE
Current investment portfolio Gender No of respondents
Mutual fund Male 17
Female 10
Total 27
Equity trading Male 7
Female 3
Total 10
Fixed deposits/Bank savings Male 18
Female 7
Total 25
Investment (UL/IP) Male 5
Female 10
Total 15
Post office savings Male 12
Female 11
Total 23
Total Male 59
Female 41
Total 100
INTERPRETATION
The above table shows that current investment portfolio of Male respondents’ (18) and female
respondents’ (11) is Fixed Deposits and Post office Savings respectively.
Table 4.11 TABLE REPRESENTING OCJECTIVE OF INVESTMENT BY GENDER

WISE
Objective of investment Gender
No of
respondents
To build a corpus of retirement Male 5
Female 4
Total 9
To save for children
education/marriage
Male 10
Female 7
Total 17
To provide medical emergencies Male 13
Female 7
Total 20
To provide for family financial
security
Male 13
Female 12
Total 25
All of the above Male 18
Female 11
Total 29
Total Male 59
Female 41
Total 100
INTERPRETATION

The above table shows that investment of Male respondents (18) is all of the above and Female
respondents (12) investment objective is to provide financial security to family.
Table No 4.12 TABLE REPRESENTING NUMBER OF RESPONDENTS ON THE BASIS
OF TERM OF INVESTMENT
Term of Investment Number of respondents Percentage (%)
Under 2 yrs 24 24
2-5 yrs 37 37
6-10 yrs 21 21
11-15 yrs 18 18
total 100 100
INTERPRETATION
The table shows that 37% of the respondents wants to invest 2-5 yrs and 18% of the respondents
term of investment is 11-15 yrs.
Figure 4.12 CHART SHOWING NUMNBER OF REPRESENTING ON THE BASIS OF
TERM OF INVESTMENT

Table No 4.13 TABLE REPRESENITNG NUMBER OF RESPONDENTS ON THE BASIS
OF IMPORTANT FACTOR CONSIDER BEFORE CHOOSING AN INVEATMENT
Important factor Number of respondents Percentage (%)
Quickly increase wealth 16 16
Steady growth 32 32
Monthly income 21 21
Safety of investment principal 31 31
total 100 100
INTERPRETATION
The table shows that 32% of the respondents consider steady growth an important factor and 16
% of the respondents consider increasing wealth quickly as important before choosing as
investment.
Figure 4.13 CHART SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF
IMPORTANT FACTOR CONSIDER BEFORE CHOOSING AN INVEATMENT

Table 4.14TABLE REPRESENTING FORM OF INVESTMENT BY AGE WISE

FORM OF
INVESTMENT AGE Mean N Std. Deviation
UL/IP 18-30 1.60 5 .548
31-45 1.50 6 .548
46-65 1.75 4 .500
Total 1.60 15 .507
MUTUAL FUND 18-30 1.30 10 .483
31-45 1.15 13 .376
46-65 1.09 11 .302
ABOVE 66 1.00 2 .000
Total 1.17 36 .378
EQUITY TRADING 18-30 2.00 2 .000
31-45 1.50 2 .707
46-65 1.33 6 .516
Total 1.50 10 .527
FIXED DEPOSITS 18-30 1.50 6 .548
31-45 1.43 7 .535
46-65 1.00 5 .000
ABOVE 66 2.00 3 .000
Total 1.43 21 .507
BANK SAVINGS 18-30 1.80 5 .447
31-45 1.57 7 .535
46-65 1.67 6 .516
Total 1.67 18 .485
Total 18-30 1.54 28 .508
31-45 1.37 35 .490
46-65 1.31 32 .471
ABOVE 66 1.60 5 .548
Total 1.41 100 .494
INTERPRETATION

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

Table no 4.15 TABLE REPRESENTING REASON FOR MOST PREFERRED FORM OF
INVESTMENT
INTERPRETATION
The table shows that 36% of the respondents preferred investment to save tax and 31% of the
respondents preferred investment for other future emergencies.
Figure no 4.15 CHART SHOWING REASON FOR MOST PREFFERD FORM OF
INVESTMENT
Reasons Number of respondents Percentage (%)
Tax Savings 36 36
To create wealth 33 33
Other future emergencies 31 31
Total 100 100

Table No 4.16 TABLE REPRESENTING AWARE OF TYPE OF MUTUTAL FUND BY
AGE GROUP WISE
Aware of type of Mutual Fund Age Number of respondents
Growth Fund 18-30 6
31-45 9
46-65 8
Total 23
Money Market 18-30 10
31-45 11
46-65 8
ABOVE 66 2
Total 31
Equity Fund 18-30 11
31-45 13
46-65 10
ABOVE 66 1
Total 35
Other 18-30 1
31-45 2
46-65 6
ABOVE 66 2
Total 11
Total 18-30 28
31-45 35
46-65 32
ABOVE 66 5
Total 100

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

Table No 4.18TABLE REPRESENTING NUMBER OF RESPONDENTS AWARE OF
VARIOUS SCHEMES OFFERED BY THE AMC
Various schemes offered by
AMC Age Number of respondents
Most 18-30 6
31-45 9
46-65 9
Above 66 2
Total 26
Some 18-30 14
31-45 15
46-65 7
Above 66 2
Total 38
Few 18-30 8
31-45 11
46-65 16
Above 66 1
Total 36
Total 18-30 28
31-45 35
46-65 32
Above 66 5
Total 100
INTERPRETATION
The above table shows that age group of 46-65 (16) respondents aware of few schemes offered
by AMC, age group of 18-30 respondents (14), age group of 31-45 respondents (15) and age
group of above 66 (2) respondents aware of some schemes offered by AMC and age group of
above 66 (2) respondents aware of most of the schemes offered by AMC.

Table No 4.19TABLE REPRESENITNG KNOWN ABOUT MUTUAL FUND
Way of know Number of respondents Percentage (%)
Advertisement 40 40
friends 30 30
Brokers 14 14
Other 16 16
Total 100 100
INTERPRETATION
The table shows that 40% of the respondents know about Mutual Fund through advertisement
and 14% of the respondents came to know about Mutual Fund through brokers.
Figure No 4.19CHART SHOWING NUMBER OF RESPONDENTS KNOW ABOUT
MUTUAL FUND

Table No. 4.20 TABLE REPRESENITNG SCHEMES TO INVEST BY GENDER WISE
Schemes to invest Gender Number of respondents
Open Ended Male 31
Female 20
Total 51
Close Ended Male 19
Female 16
Total 35
Interval Male 9
Female 5
Total 14
Total Male 59
Female 41
Total 100
INTERPRETATION
The table shows that 31 male respondents and 20 of the female respondents prefer to invest in
open ended schemes.

Table No 4.21TABLE REPRESENTING NUMBER OF RESPONDENTS PRIMARY
INVESTMENT FOCUS.
Investment focus Number of respondents Percentage (%)
Retirement 19 19
Wealth generation 33 33
Capital preservation 14 14
Income generation 34 34
Total 100 100
INTERPRETATION
The table shows that 34% of the respondents primary investment focus is to generate income and
14% of the respondents primary investment focus is to preserve capital
Figure No 4.21 FIGURE SHOWING NUMBER OF RESPONDENTS PRIMARY
INVESTMENT FOCUS.

Table No 4.22 TABLE REPRESENTING NUMBER OF RESPONDENTS ON THE BASIS
OF CONSULT WHLE MAKING AN INVESTMENT CHOICE.
INTERPRETATION
The table shows that 35% of the respondents consult every time while making an investment
choice and 7% of the respondents never consult while making an investment choice.
Figure No 4.22FIGURE SHOWING NUMBER OF RESPONDENTS ON THE BASIS
OF CONSULT WHLE MAKING AN INVESTMENT CHOICE
Choice Number of respondents Percentage (%)
Every time 34 34
Often 35 35
Sometimes 24 24
Never 7 7
Total 100 100

Table no 4.23 TABLE REPRESENTING NUMBER OF RESPONDENTS ON THE BASIS
OF MAKING INVESTMENT DECISION AND EXECUTE THEM.
INTERPRETATION
The table shows that the 32% of the respondents once in 3 months making investment decision
and execute them and 18% of the respondents making investment decision and execute them in
once in a 6 months.
Figure No 4.23FIGURE SHOWING NUMBER OF RESPONDENTS ON THE BASIS
OF MAKING INVESTMENT DECISION AND EXECUTE THEM.
Period Number of respondents Percentage (%)
Once a month 23 23
Once in 3 month 32 32
Once in 6 month 18 18
Once a year 27 27
Total 100 100

Table no 4.24YABLE SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF
INVEST MORE IN FUTURE
INTERPRETATION
The table shows that the 73% of the respondents want s to invest in future and 27% of the
respondents don’t want to invest in future.
Figure No. 4.FIGURE SHOWING NUMBER OF RESPONDENTS ON THE BASIS OF
INVEST MORE IN FUTURE.
Option Number of respondents Percentage (%)
Yes 73 73
No 27 27
Total 100 100

Table 4.7 MEAN VALUE OF SAVIGS - GENDER WISE
SAVINGS GENDER Mean N Std. Deviation
YES MALE 1.28 57 .453
FEMALE 1.41 39 .498
Total 1.33 96 .474
NO MALE 2.00 2 .000
FEMALE 2.00 2 .000
Total 2.00 4 .000
Total MALE 1.31 59 .464
FEMALE 1.44 41 .502
Total 1.36 100 .482
ANOVA Table
Source of
variance
Sum of
Squares df
Mean
Square F Sig.
Between
groups
(combined)
1.707 1 1.707 7.840 .006
Within Groups 21.333 98 .218
Total 23.040 99
Level of significance = 0.05
INFERENCE
The level of significance is more thus it is concluded that there is a relationship between savings
of male and female.
Table 4.8 MEAN VALUE OF MODE OF SAVINGS – GENDER WISE

MODE OF SAVINGS GENDER Mean N Std. Deviation
FIXED DEPOSIT MALE 2.12 24 .741
FEMALE 2.46 13 .967
Total 2.24 37 .830
INVESTMENT MALE 2.25 20 .910
FEMALE 1.56 16 .727
Total 1.94 36 .893
OTHERS MALE 2.33 15 .900
FEMALE 2.17 12 1.030
Total 2.26 27 .944
Total MALE 2.22 59 .832
FEMALE 2.02 41 .961
Total 2.14 100 .888

ANOVA Table
Source of
variance
Sum of
Squares df
Mean
Square F Sig.
Between
Group
(Combined)
2.155 2 1.078 1.377 .257
Total 78.040 99
Level of significance =0.05
INFERENCE
The level of significance is less thus it is concluded that there is no relationship between modes
of saving in male and female.

Table 4.9 MEAN VALUE OF CURRENT VALUE OF INVESTMENT – INCOME LEVEL
PER ANNUM
CURRENT
VALUE OF
INVESTMENT
PER ANNUM
INCOME LEVEL
PER ANNUM Mean N Std. Deviation
10000-30000 BELOW 300000 2.10 20 1.021
300000-500000 2.30 20 .733
ABOVE 500000 2.25 4 .957
Total 2.20 44 .878
30000-50000 BELOW 300000 2.33 6 1.211
300000-500000 1.91 23 .793
ABOVE 500000 1.80 5 1.095
Total 1.97 34 .904
ABOVE 50000 BELOW 300000 2.43 7 .787
300000-500000 2.11 9 .782
ABOVE 500000 2.33 6 1.211
Total 2.27 22 .883
Total BELOW 300000 2.21 33 .992
300000-500000 2.10 52 .774
ABOVE 500000 2.13 15 1.060
Total 2.14 100 .888

ANOVA Table
Source of
variance
Sum of
Squares df
Mean
Square F Sig.
Between
Groups
(combined)
1.547 2 .773 .981 .379
Total 78.040 99
INFERENCE
The level of significance is less thus it is concluded that there is a difference between income
level and current investment value of the respondents.

Table 4.10 MEAN VALUE OF CURRENT INVESTMEN PORTFOLIO - GENDER
CURRENT INVESTMENT
PORTFOLIO GENDER Mean N Std. Deviation
MUTUAL FUND MALE 1.24 17 .437
FEMALE 1.40 10 .516
Total 1.30 27 .465
EQUITY TRADING MALE 1.43 7 .535
FEMALE 1.67 3 .577
Total 1.50 10 .527
FIXED DEPOSITS/BANK
SAVINGS
MALE 1.17 18 .383
FEMALE 1.57 7 .535
Total 1.28 25 .458
INVESTMENTS (UL/IP) MALE 1.20 5 .447
FEMALE 1.40 10 .516
Total 1.33 15 .488
POST OFFICE SAVINGS MALE 1.58 12 .515
FEMALE 1.36 11 .505
Total 1.48 23 .511
Total MALE 1.31 59 .464
FEMALE 1.44 41 .502
Total 1.36 100 .482
ANOVA Table
Source of variance Sum of
Squares df
Mean
Square F Sig.
BetweenGro
ups
(combined)
.798 4 .199 .852 .496
Total 23.040 99

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

Table 4.11 MEAN VALUE OF INVESTMENT OBJECTIVE – GENDER WISE
OBJECTIVE OF
INVESTMENT GENDER Mean N Std. Deviation
TO BUILD A CORPUS FOR
RETIREMENT
MALE 1.20 5 .447
FEMALE 1.25 4 .500
Total 1.22 9 .441
TO SAVE FOR CHILDREN
EDUCATION/MARRIAGE
MALE 1.00 10 .000
FEMALE 1.14 7 .378
Total 1.06 17 .243
TO PROVIDE MEDICAL
EMERGENCIES
MALE 1.38 13 .506
FEMALE 1.71 7 .488
Total 1.50 20 .513
TO PROVIDE FOR FAMILY
FINANCIAL SECURITY
MALE 1.23 13 .439
FEMALE 1.50 12 .522
Total 1.36 25 .490
ALL OF THE ABOVE MALE 1.50 18 .514
FEMALE 1.45 11 .522
Total 1.48 29 .509
Total MALE 1.31 59 .464
FEMALE 1.44 41 .502
Total 1.36 100 .482
ANOVA Table
Squares df
Mean
Square F Sig.
Between
Groups
(Combined)
2.542 4 .635 2.945 .024
Total 23.040 99

INFERENCE
The level of significance is more thus it is concluded that there is a relationship between
investment objectives of male and female.
Table 4.14 MEAN VALUE OF FORM OF INVESTMENT – AGE GROUP

FORM OF
INVESTMENT AGE Mean N Std. Deviation
UL/IP 18-30 1.60 5 .548
31-45 1.50 6 .548
46-65 1.75 4 .500
Total 1.60 15 .507
MUTUAL FUND 18-30 1.30 10 .483
31-45 1.15 13 .376
46-65 1.09 11 .302
ABOVE 66 1.00 2 .000
Total 1.17 36 .378
EQUITY TRADING 18-30 2.00 2 .000
31-45 1.50 2 .707
46-65 1.33 6 .516
Total 1.50 10 .527
FIXED DEPOSITS 18-30 1.50 6 .548
31-45 1.43 7 .535
46-65 1.00 5 .000
ABOVE 66 2.00 3 .000
Total 1.43 21 .507
BANK SAVINGS 18-30 1.80 5 .447
31-45 1.57 7 .535
46-65 1.67 6 .516
Total 1.67 18 .485
Total 18-30 1.54 28 .508
31-45 1.37 35 .490
46-65 1.31 32 .471
ABOVE 66 1.60 5 .548
Total 1.41 100 .494

ANOVA Table
Squares df
Mean
Square F Sig.
Between
Groups
(Combined)
3.947 4 .987 4.631 .002
Total 24.190 99
INFERENCE
The level of significance is more thus it is concluded that the most preferred form of investment
among different age group of peoples is different.
Table 4.16 MEAN VALUE OF AWARE OF TYPE OF MUTUAL FUND – AGE GROUP

WISE
MUTUAL FUND
AWARENESS AGE Mean N Std. Deviation
GROWTH FUND 18-30 1.67 6 .516
31-45 1.44 9 .527
46-65 1.38 8 .518
Total 1.48 23 .511
MONEY MARKET 18-30 1.50 10 .527
31-45 1.45 11 .522
46-65 1.12 8 .354
ABOVE 66 1.00 2 .000
Total 1.35 31 .486
EQUITY FUND 18-30 1.55 11 .522
31-45 1.31 13 .480
46-65 1.30 10 .483
ABOVE 66 2.00 1 .
Total 1.40 35 .497
OTHER 18-30 1.00 1 .
31-45 1.00 2 .000
46-65 1.50 6 .548
ABOVE 66 2.00 2 .000
Total 1.45 11 .522
Total 18-30 1.54 28 .508
31-45 1.37 35 .490
46-65 1.31 32 .471
ABOVE 66 1.60 5 .548
Total 1.41 100 .494

ANOVA Table
Squares df
Mean
Square F Sig.
Between
Groups
(Combined
)
.227 3 .076 .303 .823
Total 24.190 99
INFERENCE
The level of significance is less thus it is concluded that the different age group of people is not
aware of different type of Mutual Fund.
Table 4.18 –MEAN VALUE OF VARIOUS SCHEMES OFFERED BY AMC – AGE
GROUP

VARIOUS
SCHEME
OFFERED
BY AMC AGE Mean N Std. Deviation
MOST 18-30 1.83 6 .408
31-45 1.33 9 .500
46-65 1.22 9 .441
ABOVE 66 2.00 2 .000
Total 1.46 26 .508
SOME 18-30 1.50 14 .519
31-45 1.47 15 .516
46-65 1.57 7 .535
ABOVE 66 1.00 2 .000
Total 1.47 38 .506
FEW 18-30 1.38 8 .518
31-45 1.27 11 .467
46-65 1.25 16 .447
ABOVE 66 2.00 1 .
Total 1.31 36 .467
Total 18-30 1.54 28 .508
31-45 1.37 35 .490
46-65 1.31 32 .471
ABOVE 66 1.60 5 .548
Total 1.41 100 .494

ANOVA Table
Squares df
Mean
Square F Sig.
Between
Groups
(Combined)
.616 2 .308 1.267 .286
Total 24.190 99
Level of significance =0.05
INFERENCE
The level of significance is less thus it is concluded that the different age group of respondents
not aware of the various schemes offered by AMC

Table 4.20MEAN VALUE OF SCHEMES TO INVEST – GENDER WISE
SCHEMES TO
INVEST GENDER Mean N Std. Deviation
OPEN ENDED MALE 2.13 31 .846
FEMALE 1.90 20 1.021
Total 2.04 51 .916
CLOSE ENDED MALE 2.11 19 .809
FEMALE 2.00 16 .816
Total 2.06 35 .802
INTERVAL MALE 2.78 9 .667
FEMALE 2.60 5 1.140
Total 2.71 14 .825
Total MALE 2.22 59 .832
FEMALE 2.02 41 .961
Total 2.14 100 .888

ANOVA Table
Squares df
Mean
Square F Sig.
Between
Groups
(Combined
)
5.376 2 2.688 3.588 .031
Total 78.040 99
INFERENCE
The level of significance is more thus it is concluded that the male and female preferred to invest
more in open ended mutual fund schemes.

Chapter - 5
Summary & Conclusion
SUMMARY
Introduction:

A mutual fund is nothing more than a collection of stocks and/or bonds as a company that brings
together a group of people and invests their money in stocks, bonds, and other securities. Each
investor owns shares, which represent a portion of the holdings of the fund.
Mutual fund can make money in three ways:
1) Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly all of
the income it receives over the year to fund owners in the form of a distribution.
2) If the fund sells securities that have increased in price, the fund has a capital gain. Most funds
also pass on these gains to investors in a distribution.
3) If fund holdings increase in price but are not sold by the fund manager, the fund's
sharesincrease in price then it can be sell for a profit
.
Types of mutual fund
Schemes according to Maturity Period:
A mutual fund scheme can be classified into open-ended scheme or close-ended scheme
depending on its maturity period.
Open-ended Fund

An open-ended Mutual fund is one that is available for subscription and repurchase on
a continuous basis. These Funds do not have a fixed maturity period. Investors can conveniently
buy and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end schemes is liquidity.
Close-ended Fund
A close-ended Mutual fund has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an exit
route to the investors, some close-ended funds give an option of selling back the units to the
mutual fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that
at least one of the two exit routes is provided to the investor i.e. either repurchase facility or
through listing on stock exchanges. These mutual funds schemes disclose NAV generally on
weekly basis.
The objective of the study is to
• Explore the recent development process in Mutual Fund in India.
• To find out the reason for investment in Mutual Funds.
• To find out the investment perception of individual.
• To find out what steps to be taken to boost Mutual Fund industry.
• To recommend and promote best business practices and code of conduct to be followed
by members and other engaged in the activities of Mutual Fund agencies involved in the
field of capital markets and financial services.
FINDINGS OF THE STUDY:

• Most of the respondents (35%) are from the age group of 31-45.
• Most of the respondents (59%) are male and (41%) are female.
• Around (59%) of the respondents married and (36%) are unmarried.
• Among the respondents 54% are salaried and 46% are non salaried.
• From the study it is found that 52% are belong to 3 lacs-5 lacs of income level.
• From the study it is found that 96% of the respondents are savings.
• As per the study the 37% of the respondents’ investment is the mode of savings.
• The study shows that the 44% of the respondents invests around 10000 to 30000.
• Nearly (27%) of the respondent’s current investment portfolio is Mutual Fund.
• The study reveals that the 29% of the respondent’s investment objective is to build corpus
for retirement, save for children education /marriage, for medical emergencies and family
financial security.
• The study shows that term of investment period of 37% is 2-5 yrs.
• As per the study 32% has consider opportunity for steady growth is important before
choosing an investment.
• According to the study 36% investors preferred to invest in Mutual Fund than other form
of investment.
• Study shows that about 36% of Mutual Fund investors investing to save tax.
• According to the study investors preferred equity fund type of Mutual Fund (35%) than
other type of Mutual Fund.
• Study reveals that safety is extremely important at70% other than the sources of
information.

• Being a Mutual Fund investor 38% are aware of some various schemes offered by AMC.
• From the study it is found that Advertisement introduces Mutual Fund (40%) other than
friends and brokers.
• Study shows that 51% of Mutual Fund investors prefer open ended schemes.
• About 34% of the respondent’s primary investment focuses on to generate income.
• Around 35% of investor’s consult while making an investment choice.
• From the study it is found that 32% of the investors often make investment decisions and
execute them.
• The Mutual Fund industry influences Mutual Fund investors at 73% in such that investors
like to invest more in future.

SUGGESTIONS:
• As lack of awareness and Choice of other alternatives stand s the main reasons for not
taking a Mutual Fund Schemes, companies should concentrate more on creating
awareness among the public about the benefits of Mutual fund schemes.
• As reliability stand as the main reason for selecting Mutual Funds, the companies should
promote Mutual Funds as a reliable investment alternative.
• As investors are unaware of Mutual Funds as tax savings instrument, the AMC’s should
highlight “Mutual Funds as a tax savings instrument”.
• As many investors feel lack of security on investing in Mutual Funds companies should
make the customer aware about the existence of SEBI as a safety regulation to safeguard
the interests of investors through effective public relations.
• In the present scenario success without brand awareness among investors is found to be
very sensitive, they always look for safe investments. For effective brand building the
AMC’s should position the company as a safe investment vehicle. This will help the sales
force to a great extent.
• The mutual Fund companies should offer documents more comprehensive by making
disclosures more simple and easy to understand and fund structure more distinctive to the
common man.
• The disclosures regarding the Mutual Fund expenses more transparent especially
distributor expenses which form a major chunk of entry loads.
• The fund managers should be accountable to unit holders. This can be done by organizing
Annual General Meetings of unit holders where performance of the fund can be reviewed.
• As the regulator of financial services in the country, SEBI should initiate programs that
give investor knowledge about financial products in the country. Further investors should
be able to make decisions after knowing how Mutual Funds can be used for financial

planning. This could be done in association with AMC’s AMFI and others participants in
financial sectors.
• The survey reveals that the investors are basically influenced by the intrinsic qualities of
the product flowed by efficiency fund management and general image of the fund/scheme
in their selection of fund schemes. Hence it is suggested that AMC’s should design
products consciously to meet the investor’s needs and should be alert to capture the
changing ,market moods and sentiments can be innovative. Continuous product
development and introduction of innovative products are a must to attract and retain this
market segment.
• The parameters which need to be kept in mind before taking as investments decision are
1) return of competing funs 2) object of the fund 3) promoters brand name and image 4)
total return given by the fund on different schemes.
• By analyzing the current scenario it can be concluded that the mutual fund industry in
India has a very bright future. Thus the study in “consumer Perception on investment in
Mutual Fund “ shows that there is a lot of scope exits for making Mutual Fund as a
effective investment tools.

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

BIBLOGRAPHY
Journals
• Magazine- Charted Financial Analyst July 2012
• Journal- Financial of India
• Journal- Marketing Funds
Books:
• Association of Mutual Fund in India “AMFI work book” Mumbai 2006.
• Fredman Albert j & Wiles Russ, “How Mutual Fund work”, Prentice Hall of India, New
Delhi, 1997
• Kothari, C.R. “Research Methodology, Methods &Techniques”,New Age Second
edition ,page no
WEBSITES:
www.amfiindia.com
www.mutualfundsinindia.com
www.scribd.com
www.managementparadise.com
www.utimutualfund.com
www.icicidirect.com

QUESTIONNAIRE:
1. Age
i) 18-30 ii) 30-40 iii) 45-65 iv) Above 65
2. Gender
i) Male ii) Female
3. Marital Status
i) Married ii) Unmarried iii) others
4. No. of Dependents
i) 1-3 ii) 3-5 iii) Above 5
5. Occupation
i) Salaried ii) Non-salaried iii) others (Specify)
6. Income level Per Annum
I) Below 100000 ii) 100000-500000 iii) Above 500000
7. Do you save?
i) Yes ii) No
8. Specify your mode of saving.
i) Fixed Deposit ii) Investment iii) others (Specify)
9. Current Value of your investment Per annum
i) 10000-30000 ii) 30000-50000 iii) Above 50000
10. Current investment portfolio
i) Mutual Fund ii) Equity Trading iii) Fixed Deposit, Post Office savings
iv) Investment (UL/IP) v) Bank Savings
11. Objective of your investment
a. To build a corpus for retirement
b. To save for children education/ marriage
c. To provide for medical emergencies
d. To provide for family financial security
e. All of the above

12. Specify your term of investment.
i) under 2 yrs ii) 2-5 yrs iii) 6-10 yrs iv) 11-15 yrs
13. What factor would you consider most important before choosing an investment?
a. How quickly I will be able to increase my wealth.
b. The opportunity for steady growth
c. The amount of monthly income the investment will generate
d. The safety of my investment principle
14. Most preferred form of investment.
i) UL/IP ii) Mutual Fund iii) Equity Trading
iv) Fixed Deposit/ Post Office v) Bank Savings
15. And, why?
i) Tax savings ii) To create wealth iii) Others future emergencies
16. Which type of Mutual Fund you are aware?
i) Growth Fund ii) Money Market fund iii) Equity Fund
iv) Other (specify)
17. Do you view following factors sources of information while investing in Mutual Fund?
Rank (1. Extremely Important 2.Important 3.Neutral 4. Unimportant)
 Safety
 Liquidity
 Returned Earned
 Tax Savings
 Performance of Past Schemes
 Rating of Mutual Fund by Agencies
 Advertisements

 Recommendations of friends & Relatives
18. Being a Mutual fund Investor, are you aware of the various scheme offered by the asset
management companies (AMC)?
i) Most ii) Some iii) Very few
19. How did you know about Mutual Fund?
i) Advertisements ii) Friends iii) Brokers iv) Other (specify)
20. In which Mutual Fund scheme you prefer to invest.
i) Open Ended ii) Close Ended iii) interval
21. What is your primary investment focus?
i) Retirement ii) Wealth generation iii) Capital preservation
iv) Income Generation
22. Do you consult while making an investment choice?
i) Every time ii) Often iii) Sometimes iv) Never
23. How often do you make investment decisions and execute them?
i) Once a month ii) Once in 3 months iii) Once in 6 month iv) Once a year
24. Would you like to invest more in future?
i) Yes ii) No
25. Any Suggestion about investing in Mutual Fund?
Thank you

A comprehensive study of perception regarding mutual funds

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