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GT - India watch issue 15 - Indian companies listed on the London MarketsGrant Thornton
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financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
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There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
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Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
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Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
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Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
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What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
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Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
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As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
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The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
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The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
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While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
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Customer+orientation factor analysis
1. Customer Orientation in Designing Mutual Fund Products
-An Analytical Approach to Indian Market Preferences
Dr Tapan K Panda
Faculty Member
Indian Institute of Management, Lucknow
Dr Nalini Prava Tripathy
Post Doctoral Research Scholar
Regional College of Management, Bhubaneswar
ABSTRACT
The significant outcome of the government policy of liberalisation in industrial
and financial sector has been the development of new financial instruments. These new
instruments are expected to impart greater competitiveness flexibility and efficiency to
the financial sector. Growth and development of various mutual fund products in Indian
capital market has proved to be one of the most catalytic instruments in generating
momentous investment growth in the capital market. There is a substantial growth in the
mutual fund market due to a high level of precision in the design and marketing of variety
of mutual fund products by banks and other financial institution providing growth,
liquidity and return.
In this context, prioritization, preference building and close monitoring of
mutual funds are essentials for fund managers to make this the strongest and most
preferred instrument in Indian capital market for the coming years. With the decline in
the bank interest rates, frequent fluctuations in the secondary market and the inherent
attitude of Indian small investors to avoid risk, it is important on the part of fund
managers and mutual fund product designers to combine various elements of liquidity,
return and security in making mutual fund products the best possible alternative for the
small investors in Indian market.
Researchers have attempted to study various need expectations of small investors
from different types of mutual funds available in Indian market and identify the risk
return perception with the purchase of mutual funds. Various sophisticated multivariate
techniques are applied to identify important characteristics being considered by the
2. Indian investors in the purchase decision The paper also suggests a product design of an
optimum mutual fund and track the positioning gap available in Indian mutual fund
market. SPSS version 10 is used for data analysis.
INTRODUCTION
The reform process has sent signals to a wave of changes in savings and
investment behavior adding a new dimension to the growth of financial sector. The
Indian financial system in general and the mutual fund industry in particular continue to
take turn around from early 1990s. During this period mutual funds have pooled huge
investments for the corporate sector. The investment habit of the small investors
particularly has undergone a sea change. Increasing number of players from public as
well as private sectors has entered in to the market with innovative schemes to cater to
the requirements of the investors in India and abroad. For all investors, particularly the
small investors, mutual funds have provided a better alternative to obtain benefits of
expertise- based equity investments to all types of investors.
RECENT TRENDS IN MUTUAL FUND MARKETING
The mutual fund industry in India has evolved little over three decades but the
real impetus has come after the changes in the mutual fund regulations in early 80s.
Private and foreign mutual funds are operating in the Indian market and constitute a
substantial portion of the mutual fund industry. Today the industry consists of Unit Trust
of India, mutual funds sponsored by public sector banks and insurance corporations,
private and foreign mutual funds. Investors are constantly being bombarded by questions
concerning their risk profile. Either a money market or guilt fund is targeted for the risk
averse or a low graded company offering a high return on its fixed deposits. Banks like
3. Citibank , ANZ Grindlays, Deutsche bank, Hongkong bank, Commerze bank, Banque
nationale de Paris and HDFC bank are not only aggressively marketing funds many are
also planning to launch their own. The list of potential entrants includes ABN Amro,
ANZ Grindlays, Hongkong bank and Jammu and Kashmir bank.
The Reserve Bank’s Currency and Finance report 1997-1998 shows that the
investors’ appetite for risk has diminished considerably. As much as 46% of the financial
savings of the household sector found its way back to bank deposits; 12% went in to
Government savings plans and 18% in to provident funds. Only a miniscule 2% wound
up in the capital market and 4% in company deposits. The mutual fund product designers
have identified a strategic gap in the product offering in the capital market and now are
fighting a loosing battle with government savings plans, bank deposits and provident
funds. They are providing cheque facility on money market mutual funds to make them
more enticing and guilt funds for the risk averse.
Product innovations and new product combinations have started rolling in to the
Indian market. GIC mutual fund has launched an open-ended scheme named as GIC
D’MAT in which 71 demat scripts having a weight of nearly seventy- percent in the
sensex and the Nifty are being marked for trading. The specialty of this new product is
that investors will have an opportunity to exchange their holdings of scrips, which are
available for dematerialization with units of this scheme. There are 252 mutual fund
schemes (as on 31st March 2001) and are likely to go higher in the future. The reason for
launching of these large number of mutual fund products is the distributed pattern of
investment behavior of Indian small investor .The purchase decision of a mutual fund is
largely dependant upon investors level of savings, investment pattern and the risk profile.
4. Many managers are now taking interest in designing mutual fund products with
multi feature options for investors. Customers are often benefited from the improvements
that are offered by new features, for example by enhanced quality products [Garvin
(1984)]. These additions of features also offer advantages to others in the value chain.
For the mutual fund agents new features provide new sales arguments in seller buyer
interaction. New features do not only infuse single products but also entire product
categories periodically with new lease of life [Broadbent (1980), Dowdy W.L. (1986)].
Based on the literature [Kotler (2000), Nicholas, (1992), Sen. (1996), Starr(1992)] a
product feature is defined as each identifiable aspect of the total offering that a critical
reference group perceives and evaluates as an “extra” to a known standard among
comparable products. The success of a mutual fund and its capacity largely depends on
its ability to mobilize funds. The total funds mobilized by the different mutual funds for
the period 1987-88 to 1999-2000 is depicted in the Table –I
Table- I
Gross Mobilization by Mutual Funds
(Rs. Crore)
Year UTI Public Sector Private Sector Total
1987-88 1763 258 N/A 2021
1988-89 3483 301 N/A 3784
1989-90 5504 1204 N/A 6708
1990-91 3182 2967 N/A 6149
1991-92 8686 2580 N/A 11266
1992-93 11051 1978 N/A 13029
5. 1993-94 9288 387 1548 11223
1994-95 8686 1333 1333 11352
1995-96 5891 301 301 6493
1996-97 9589 172 344 10105
1997-98 9116 344 1978 11395
1998-99 13201 1677 7826 22704
1999-2000 9159 1548 19178 29842
Source: Web Document at AMFI
On the total 252 mutual fund schemes are now available to the buyers out of
which 103 are income schemes and 94 are growth schemes. The rest are hybrids. The
total assets under all mutual funds are Rs. 90,685.25 crores (as on 31st March 2000) . The
share of Unit Trust of India continues to be stagnant at 71 percent (64,637.37 crore).
Private players now command assets of 17041.34 crore (19%). Public sector funds are
holding the least (10%) with Rs. 9006.54 crore assets. The Government owned banks and
UTI have 32 assured return schemes where as no private sector mutual funds offer
assured returns.
The securities scam, unprecedented boom and the slow down in the economy saw
the Indian stock market enters through a prolonged phase of instability. Therefore
investor’s preferences shift from equity funds to fixed income and debt instruments. In
(Jan-March) 2001 Quarter the sensex oscillated between a low of 3436.75 and a high of
4462.11. The investment in Debt funds during this time has gone up. Due to the reduction
in the interest rate in USA the Indian bond market rallied in expectation of a similar cut,
debt funds staged a come back. Investors realize that an interest rate cut reduces the
6. market yield and hence, increases the demand for long term debt papers bearing high
coupon rates (Refer Table-II). The average annualized return for the quarter in debt
funds was 14.64 which were much higher than the returns posted by any other debt based
investment instruments on a post tax basis.
Table-II
Changing Fund Preferences
(Assets in Percentages)
Assets 1990 1993 1996 1999
Equity Funds 21.9 43.88 18.02 21.92
Debt funds 54.17 29.91 39.67 48.37
Mixed (Equity + 24.7 26.2 39.91 25.29
Debt) funds
Money Market/ 0 0 0 2.17
Liquid funds
Source: The Economic Times, January 3, 1999
The new mutual fund product launches had seen many of the equity based funds
in the market during this period, primarily to attract investors who would like to take
advantage of the low prices in the stock market but majority of the funds launched were
debt funds. The budget has also supported the cause of debt fund rather than equity due to
a lower dividend distribution tax. The investors hesitate to invest in the equity fund when
the market is down but the marketing and distribution cost of these incurred during this
period does not reflect a rise in the investors’ choice. As a product manager one is ought
7. to design mutual fund products, which shall combine an optimal mix of return, risk
liquidity and safety for the small investors.
OBJECTIVE OF THE STUDY
The investors do not evaluate all possible product attributes while making a
choice, but the marketer’s search is for identification of “The key buying criteria” or
“The key choice criteria” or “determinant attributes’ which are defined as certain features
of a product offering that are closely associated with preferences. This study aims at
tracking investor’s preferences and priorities towards different types of mutual fund
products and for identifying key features of a mutual fund for deciphering sustainable
marketing variables in the design of a new mutual fund product. Taking a lead from this,
an attempt is also made to find out the important mutual fund product attributes that are
essential in influencing the purchase decision of the investors.
METHODOLOGY
The study is based on a survey of 350 respondents through a questionnaire
covering different groups of investors but the researcher could collect 328 complete
questionnaire from investors out of which 300 were taken as an effective sample.
The data obtained from the study were analyzed by using Factor Analysis for
identification of the key features preferred by the respondents in a mutual fund product.
Factor analysis identifies common dimensions of factors from the observed variables that
have a high correlation with the observed and seemingly unrelated variables but no
correlation among the factors. Principal Component Analysis is the commonly used
method for grouping the variables under few unrelated factors. However the researcher
8. thought it proper to run the data under varimax rotation to reduce, if there was any chance
of co -linearity among these factors.
Variables with a factor loading of higher than .5 are grouped under a factor. A
factor loading is the correlation between the original variable with the specified factor
and the key to understanding the nature of that particular factor. When developing new
products marketers would like to be able to judge the consumer’s response to their offer
before it is introduced. One way to deal with the situation is to perform concept tests.
Here the customer is presented with a description for a new product and is asked about
the likelihood of purchase. The various attributes of a mutual fund product are broken
down in to levels. Once the utilities of the attribute levels are known, it is possible to
specify a new product that should have a maximum desirability.
RESULTS AND DISCUSSIONS
An investor takes into account various factors while deciding about buying of a
mutual fund. These ranges of factors begin with investor perception, the promised return
and to the attractiveness of the offer. So from informal discussions with mutual fund
agents and from references to earlier studies, all the relevant variables in the purchase of
a mutual fund were included in the study. Twenty-four statements were generated for
measuring respondent’s opinion on a 7-point scale on the purchase preference for mutual
funds. Factor matrix and their corresponding factor loading after the varimax rotation are
presented in Table-III for further interpretation.
9. Table- III
Loading of Selected Variables on Key Factors
(Loading Criteria>. 5)
Key Product Variables F1 F2 F3 F4 F5
01. Awareness of Product 66128
02. Sponsor reputation 53726
03. Service Behaviour 68273
04. Performance of the MF 60561
05. Advertisement 66589
06. Capital Appreciation 59018
07. Product Feature 65534
08. Safety of Fund 59053
09. Performance Guarantee 55141
10. Broker/ Agents Recommendation 62964
11. Friend/ Relatives Suggestions 60444
12. Problem Freeness/Convenience 59261
13. Exclusively for Small Investor 57321
14. Liquidity 57860
15. Delivery Schedule 65013
16. Public Sector/Private Sector 56929
Ownership
17. Regular Income 51759
10. 18. Technology 55032
19. Tax Benefit 50991
20. Lock in Period 52771
21. Transparency 50419
22. Emergency need Fulfillment 56580
23. Assured Return 50495
24. Brand Name 50872
The grouping of variables with a factor coefficient >. 05 are shown in Table-IV.
The researcher thought it proper to build a comprehensive idea about the loading of
various variables on key factors and then to derive a key attribute for the design of a new
mutual fund product.
Table IV
(Grouping of Factor-Loading for Identifying Key Product Features)
No. Attributes F1 F2 F3 F4 F5
01. Awareness of Product . 66128
07. Product Features . 65534
12. Problem Free / .59261
Convenience
13. Exclusive for Small . 57321
Investor
16. Public Sector/ . 56929
Private Sector
11. Ownership
18. Technology . 55032
20. Lock in Period . 52771
24. Brand Name . 50872
04. Performance of the . 60561
Mutual Fund
08. Safety . 59053
14. Liquidity . 57860
17. Regular Income . 51759
19. Tax Benefit . 50991
22. Emergency need Fulfillment . 56580
03. Service Behaviour . 68273
15. Delivery schedule . 65013
21. Transparency . 50419
02. Sponsor Reputation . 53726
05. Advertisement . 66598
10. Broker/Agents . 62964
Recommendation
11. Friend/ Relative Suggestion . 60444
06. Capital Appreciation . 59018
09. Performance Guarantee . 55141
23. Assured Return . 50495
{SPSS for MS Windows Release 6 PC extracted 5 factors. Extractions done at .5000 or above
level}
12. The following factors (Refer Table-V) are named after grouping the key
variables and looking at the commonality of the variables in explaining a typical attribute
of a mutual fund product.
Table V
Key Factors of a Mutual Fund Product
F1 F2 F3 F4 F5
The Core Product Investors Service Persuasive Investor
Expectation Behavior Promotion Confidence
Awareness Performance of Service Sponsor Capital
The mutual fund Behaviour Reputation Appreciation
Product features Safety Delivery Advertisement Performance
Schedule guarantee
Problem freeness Liquidity transparency Broker/Agent Assured return
Recommendation
Exclusive for small Regular Income Friend/relative
Investor suggestion
Public sector/ Tax benefit
Private sector
Ownership
Technology Emergency
Need fulfillment
13. Lock in period
Brand Name
It is evident from the analysis that the changing preferences of the investor create
many new needs, which may be controlled by key determinants. Table- V depicts that the
first factor identified with product features are awareness of attribute of the product,
hassle free trading, exclusivity for small investors, ownership of the product, technology,
lock in period and brand name. These attributes can be grouped under Factor- 1 and
termed as Core Product. These are the core part of a mutual fund product, which are
common expectation of any customer while making a purchase decision.
The second factor is designated Performance Factor on the basis of the loaded
variables. The data set of the Factor-2 loading indicates that among various product
feature variables, performance of the fund, safety, liquidity, regular income, tax benefit,
emergency need fulfillment attributes are found to be important by customers for making
a brand choice. This is an indicator that by sheer name of the company no mutual fund
product is going to survive and grow in the market. This is supported by the recent series
of poor performances of UTI in the Indian Market. People are no more looking in to the
name for making decision. The market has moved purely from a market of single choice
to a competitive choice.
This kind of consumer orientation is good for the Indian market. It not only offers
a basket of products to choose from but also makes the fund managers to think and take
14. prudent decision regarding the investment and market capitalization. Unless the fund
provides growth equipped with assured return and high liquidity the market response is
going to be poor. While designing a mutual fund product the product manager has to be
concerned about offering a mix of combination in risk return and liquidity. Thus
performance factor of the fund expressed in its NAV details is an influential variable in
the purchase decision of the investor making it the most tangible component visible to
the investor in the offering.
Factor- 3 shows significance for transparency, service behaviors and delivery
schedule. This factor suggests that the process of delivery should be prompt and on time.
An investor’s service expectation statement should be the vision for the organization to
aspire for. This component of service augmentation or “Augment Part” of the product
makes it mandatory on the part of the fund manager to provide services in a continuos
basis so that the customer stays loyal and happy with the fund and responds to changing
need of the customers
Factor-4 includes attributes such as sponsor reputation, advertisements,
Broker/Agents recommendations, friend/ relative suggestion. This element is more
important in a competitive market where most of the product offerings are similar and the
customer finds it difficult to take a decision. In an advanced and matured market like that
of urban India what needs to be done for the success of a mutual fund is a high degree of
persuasive communication than the current practice. Present communication and
promotions about various mutual fund products in India are informative only. As the
market has advanced to a higher level what needs to be done is to promote own brands
than promoting the category only for attracting investors of mutual fund. The concept of
15. brand image and market goodwill generated out of past performance of mutual fund is
explained by the term sponsor reputation.
Factor- 5 clearly indicates the combination of three attributes such as performance
guarantee, assured return and degree of capital appreciation. This factor is termed as
investor’s confidence factor, which is built over a period of time due to consistency in
performance and transparency in market behavior.
The five factors explained above are the proposed product combinations of a
mutual fund offering to the investors. If the product designers will be careful about these
key issues while designing a brand of mutual fund then only the brand will see a higher
customer response and enjoy market success.
F5
F4
F3
F2
F3F2
F1
Core Product
Augmented PartF
F2
Tangible Product
F1
Core Product
DIGRAM – 1 (The Whole Mutual Fund Product)
Where F1: -Core Expectations
16. F2: -Tangible Product (Market Performance)
F3: -Augment Product (Service Behavior)
F4: -Persuasive Communication
F5: - Confidence Factor
CONCLUDING OBSERVATIONS
The present study looks at customer expectation levels in a mutual fund product.
This kind of customer orientation is necessary in a market like India where the market is
turning competitive due to large number of players with varied financial muscle powers
and expertise of reinvestment. 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. Due to the reduction in the bank interest
rates and high degree of volatility in Indian stock market, investors are looking for an
alternative for their small time investments which will provide them a higher return and
also safety to their investments. The bond market is also passing through a recession due
to its interest parity with bank instruments. So mutual funds offer the best alternative to
the small investors in India. A prudent product design by adding the features expected by
investors and spelt out in this research will make the new mutual fund products attractive
for the Indian investors. The factors identified in the study provide key information inputs
regarding investor’s preferences and priorities that will guide future mutual fund product
managers in designing attractive mutual fund products for the Indian market.
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