This document analyzes investors' perceptions towards mutual funds in India. It conducted a survey of 103 investors using convenience sampling. Statistical analysis found some associations between demographic factors and perceptions. Chi-square tests showed gender and monthly income were associated with perceptions of tax benefits and liquidity influencing investment decisions. Correlation tests also found a significant relationship between various factors influencing investors' perceptions of mutual fund performance. The study aims to better understand how different factors shape investors' views of mutual funds.
A Study of Behavioural Factors Affecting Individual Investment Decisionsijtsrd
Although finance has been studied for thousands of years, behavioral finance which considers the human behaviour in finance is a pretty new area. Behavioral finance theories, which might be based totally at the psychology, try to apprehend how feelings and cognitive mistakes impact man or woman traders' behaviour buyers referred to on this look at are referred to person traders .The primary goal of this have a look at is exploring the behavioral factors influencing person buyers' selections on the NSE and BSE Stock Exchange. Furthermore, the members of the family among these elements and funding overall performance also are tested. The have a look at begins with the present theories in behavioral finance, based totally on which, hypotheses are proposed. Then, those hypotheses are examined via the questionnaires dispensed to individual buyers on the Broking Firms, college students and professionals. The data collected from the Stock Broking firms, Students, Professionals through structured questionnaire were examined and data collected were analyzed using Cronbachs Alpha Reliability Test, based totally on which, hypotheses are proposed. The result indicates that there are 5 behavioral elements affecting the funding selections of person investors at the NSE and BSE Stock Exchange Herding, Market, Prospect, Overconfidence gamble's fallacy, and Anchoring ability bias. Most of these elements have mild impacts whereas Market element has high affect. This test also tries to discover the correlation among these behavioral factors and investment overall performance. Among the behavioral factors referred to above, best 3 elements are located to influence the Investment Performance Herding inclusive of shopping for and promoting choice of trading shares extent of buying and selling stocks velocity of herding , Prospect such as loss aversion, remorse aversion, and mental accounting , and Heuristic inclusive of overconfidence and gamble's fallacy . The heuristic behaviors are determined to have the highest advantageous impact at the investment overall performance while the herding behaviors are stated to persuade undoubtedly the investment overall performance on the lower degree. In assessment, the possibility behaviors provide the negative impact on the funding overall performance. Pawankumar S Hallale | Manjiri Gadekar "A Study of Behavioural Factors Affecting Individual Investment Decisions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd28100.pdf Paper URL: https://www.ijtsrd.com/management/business-economics/28100/a-study-of-behavioural-factors-affecting-individual-investment-decisions/pawankumar-s-hallale
Investment choices of individual investors in D.I.Khan, KPK province of PakistanIOSR Journals
The purpose of this study is to inquire the investment avenues of the people of D.I.Khan prefer to choose. Study showed that most of investors in the district prefer to deposit their savings at banks, post office savings & real estate. Investment choices are many & selection between them is based on investors’ objectives. Income is key factor affect risk tolerance of investor.
Factors Affecting Investment Decisions in the Stock ExchangeAyman Sadiq
Stock markets always play a crucial role in the growth and stability of a country's economy. The development of the stock market encourages capital accumulation, efficient use of resources and promotion of economic growth. The rise of stock market can increase opportunities for investment and expansion for industries, thus creating more jobs and increasing the purchasing capacity of the people. On the other hand, stock market crashes throughout history have caused economic slowdowns, recessions, unemployment, curbed consumer spending etc. In basic terms, when people choose to invest their savings into the stock market instead of keeping the money at home, the funds become an active part of the economy as they become available to industries for use in productive purposes. In Bangladesh, the total market capitalization or worth of all the companies listed on Dhaka Stock Exchange alone stands at an impressive $50 billion.
However, in Bangladesh experienced massive downturns in the stock exchange in 2010. The predominantly bullish market (characterized by large and powerful investors) turned bearish (characterized by loss of investor confidence and a consistent decline in the value of stocks). Millions of small investors lost millions in equity and it is popular belief that the whole incident was a scam and resulted from government negligence.
As such, the aim of this paper was to search for the factors that affect the buying behavior of investors and to see whether investor choices were grounded in fact or fiction. As such, the research was conducted on a sample of 80 investors covering different demographic avenues ranging from age, years of education, monthly income, marital status and some other characteristics. The research team identified 6 broad factors of investment choices further broken down into small variables of measurement.
An investor has different investment avenues to park his/her hard earned savings. Investment is the current commitment of money or other resources in the expectation of repairing future benefit. Investment is an economic action. This involves creation of assts or exchange of assets with profit motive. This survey analyse the investors favourite investments avenues and also analyse the before making investment decisions. Because sometimes fear and greed while making investment decisions play a vital role while making their investment decisions. The survey has been conducted among 350 investors in different parts of Salem. The collected data have been analysed with the help of chi-square test and percentages.
A Study of Behavioural Factors Affecting Individual Investment Decisionsijtsrd
Although finance has been studied for thousands of years, behavioral finance which considers the human behaviour in finance is a pretty new area. Behavioral finance theories, which might be based totally at the psychology, try to apprehend how feelings and cognitive mistakes impact man or woman traders' behaviour buyers referred to on this look at are referred to person traders .The primary goal of this have a look at is exploring the behavioral factors influencing person buyers' selections on the NSE and BSE Stock Exchange. Furthermore, the members of the family among these elements and funding overall performance also are tested. The have a look at begins with the present theories in behavioral finance, based totally on which, hypotheses are proposed. Then, those hypotheses are examined via the questionnaires dispensed to individual buyers on the Broking Firms, college students and professionals. The data collected from the Stock Broking firms, Students, Professionals through structured questionnaire were examined and data collected were analyzed using Cronbachs Alpha Reliability Test, based totally on which, hypotheses are proposed. The result indicates that there are 5 behavioral elements affecting the funding selections of person investors at the NSE and BSE Stock Exchange Herding, Market, Prospect, Overconfidence gamble's fallacy, and Anchoring ability bias. Most of these elements have mild impacts whereas Market element has high affect. This test also tries to discover the correlation among these behavioral factors and investment overall performance. Among the behavioral factors referred to above, best 3 elements are located to influence the Investment Performance Herding inclusive of shopping for and promoting choice of trading shares extent of buying and selling stocks velocity of herding , Prospect such as loss aversion, remorse aversion, and mental accounting , and Heuristic inclusive of overconfidence and gamble's fallacy . The heuristic behaviors are determined to have the highest advantageous impact at the investment overall performance while the herding behaviors are stated to persuade undoubtedly the investment overall performance on the lower degree. In assessment, the possibility behaviors provide the negative impact on the funding overall performance. Pawankumar S Hallale | Manjiri Gadekar "A Study of Behavioural Factors Affecting Individual Investment Decisions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-6 , October 2019, URL: https://www.ijtsrd.com/papers/ijtsrd28100.pdf Paper URL: https://www.ijtsrd.com/management/business-economics/28100/a-study-of-behavioural-factors-affecting-individual-investment-decisions/pawankumar-s-hallale
Investment choices of individual investors in D.I.Khan, KPK province of PakistanIOSR Journals
The purpose of this study is to inquire the investment avenues of the people of D.I.Khan prefer to choose. Study showed that most of investors in the district prefer to deposit their savings at banks, post office savings & real estate. Investment choices are many & selection between them is based on investors’ objectives. Income is key factor affect risk tolerance of investor.
Factors Affecting Investment Decisions in the Stock ExchangeAyman Sadiq
Stock markets always play a crucial role in the growth and stability of a country's economy. The development of the stock market encourages capital accumulation, efficient use of resources and promotion of economic growth. The rise of stock market can increase opportunities for investment and expansion for industries, thus creating more jobs and increasing the purchasing capacity of the people. On the other hand, stock market crashes throughout history have caused economic slowdowns, recessions, unemployment, curbed consumer spending etc. In basic terms, when people choose to invest their savings into the stock market instead of keeping the money at home, the funds become an active part of the economy as they become available to industries for use in productive purposes. In Bangladesh, the total market capitalization or worth of all the companies listed on Dhaka Stock Exchange alone stands at an impressive $50 billion.
However, in Bangladesh experienced massive downturns in the stock exchange in 2010. The predominantly bullish market (characterized by large and powerful investors) turned bearish (characterized by loss of investor confidence and a consistent decline in the value of stocks). Millions of small investors lost millions in equity and it is popular belief that the whole incident was a scam and resulted from government negligence.
As such, the aim of this paper was to search for the factors that affect the buying behavior of investors and to see whether investor choices were grounded in fact or fiction. As such, the research was conducted on a sample of 80 investors covering different demographic avenues ranging from age, years of education, monthly income, marital status and some other characteristics. The research team identified 6 broad factors of investment choices further broken down into small variables of measurement.
An investor has different investment avenues to park his/her hard earned savings. Investment is the current commitment of money or other resources in the expectation of repairing future benefit. Investment is an economic action. This involves creation of assts or exchange of assets with profit motive. This survey analyse the investors favourite investments avenues and also analyse the before making investment decisions. Because sometimes fear and greed while making investment decisions play a vital role while making their investment decisions. The survey has been conducted among 350 investors in different parts of Salem. The collected data have been analysed with the help of chi-square test and percentages.
This study aims to determine and analyze the impact of investment knowledge, perceived risk, and
perceivedbehavioral control of the Indonesian stock investment intention. The research data is the data collected
through questionnairesstarting from 12 April 2018 until 30 April 2018. The population in this study are all people
who have never invested shares, independent income, and located in the
Voluntary Disclosure, Ownership Structure, Information Asymmetry and Cost of ...iosrjce
The aim of this study is at examining the influence of voluntary disclosure, information asymmetry
and ownership structure towards the cost of capital method by employing WACC (Weighted Average Cost of
Capital) method. The analysis method used in this research is the pathway analysis. The sample selection using
purposive sampling generates 93 observations (31 companies *3 years) manufacturing company in 2011-
2013. The results show that the extent of disclosures concerning the company's information will build investor
confidence in the investment, so that the expected rate of return is low and as a result the company’s incurred
capital costs is low. The low rate of return is due to the disclosure of required information by the company’s
management which would establish investor confidence in the investment.
Investor behavior in the stock market – Rational and Irrational perspectivesRohit Bedi
This research involves the study of buying and selling behavior of the Indian investor from both rational and irrational perspectives. The research involves collection of primary data through a questionnaire. The questionnaire has general questions related to investors’ preferences regarding their investment decisions and questions related to the influence groups which affect their investment behavior.
Saving and Investment are two key variables which play a significant role in economic growth, control of inflation, stability and promotion of employment especially in the context of developing countries. In general, to invest is to distribute money in the expectation of some benefit in the future. Actually, the present study identifies about the preferred investment avenues among IT investors from backward areas using their own self-assessment test. This paper analyse and found that IT sector employees consider more safety as well as good return on investment rather than taking risk, when compared to urban IT sector employees.
A Study on Empirical Testing of Capital Asset Pricing ModelProjects Kart
A Study on Empirical Testing of Capital Asset Pricing Model is compared with many blue chip companies with the help of detailed questionnaire to understand the problem statement. Visit http://www.projectskart.com/p/contact-us.html for more information.
Influence of ADR on Underlying Stock PricesProjects Kart
Globalization has opened the door for the investors to avail various investment avenues across the globe. American Depository Receipt (ADR) is one such opportunity to the investing community. The ADR is a proxy for the Indian shares to enable them to be traded in the American stock exchanges. Various studies conducted on Depository Receipts (DRs) have shown that the trading on the DR sin the foreign market has its influence in the home country’s stock in terms of price, volatility and volume. This interested me and this project is concerned about studying “Whether the price fluctuations of ADR affect the corresponding Indian share prices?”
After the liberalization of the economy in 1991, the corporatist started sourcing their capital from both domestic and foreign markets. The Indian shares cannot be directly listed in the American stock exchanges. ADRs have been very helpful in this purpose. So a custodian bank receives the shares as deposit and issues receipt to the market. These receipts are issued in appropriate ratio to the shares deposited with the depository. The market players in the stock exchanges trade these receipts.
RISK AND RETURN OF SELECTED FMCG COMPANIES WITH SPECIAL REFERENCE TO KARVY ST...Bala Murugesh
The basis of the project is to identify the #RISK – #RETURN of selected FMCG Companies, Top 5 market capitalization company had been used for the study. Companies like ITC Limited, HUL Limited, Godrej Consumer Products Limited, Britannia Industries Limited & Dabur India Limited. This help to identify the total amount of the risk involved in Investment. The analysis used for the study is Descriptive statistics, Volatility (β), Compound annual growth rate (CAGR), Value at Risk(VaR), Correlation. Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy, Government has allowed 100 per cent Foreign Direct Investment (FDI) in food processing and single-brand retail and 51 per cent in multi-brand retail. Compound annual growth rate (CAGR) used to measure the return yielded for Y-O-Y (Year on Year), Volatility (β) and VaR (Value at Risk) is used to measure the risk of the stock. Correlation had been used to find out the relationship between NIFTY and the stocks this help to know the correlation between the stock. There is huge risk and return involved in equity find a good return stock and the risk-free stock is difficult this study will help the investor to find out a good stock.
A synopsis of Final research Report ON Investors' preference on various Investment Avenues in India.
A research report will be generated at the end of the final period evaluating the hypothesis of the reasearch
This study aims to determine and analyze the impact of investment knowledge, perceived risk, and
perceivedbehavioral control of the Indonesian stock investment intention. The research data is the data collected
through questionnairesstarting from 12 April 2018 until 30 April 2018. The population in this study are all people
who have never invested shares, independent income, and located in the
Voluntary Disclosure, Ownership Structure, Information Asymmetry and Cost of ...iosrjce
The aim of this study is at examining the influence of voluntary disclosure, information asymmetry
and ownership structure towards the cost of capital method by employing WACC (Weighted Average Cost of
Capital) method. The analysis method used in this research is the pathway analysis. The sample selection using
purposive sampling generates 93 observations (31 companies *3 years) manufacturing company in 2011-
2013. The results show that the extent of disclosures concerning the company's information will build investor
confidence in the investment, so that the expected rate of return is low and as a result the company’s incurred
capital costs is low. The low rate of return is due to the disclosure of required information by the company’s
management which would establish investor confidence in the investment.
Investor behavior in the stock market – Rational and Irrational perspectivesRohit Bedi
This research involves the study of buying and selling behavior of the Indian investor from both rational and irrational perspectives. The research involves collection of primary data through a questionnaire. The questionnaire has general questions related to investors’ preferences regarding their investment decisions and questions related to the influence groups which affect their investment behavior.
Saving and Investment are two key variables which play a significant role in economic growth, control of inflation, stability and promotion of employment especially in the context of developing countries. In general, to invest is to distribute money in the expectation of some benefit in the future. Actually, the present study identifies about the preferred investment avenues among IT investors from backward areas using their own self-assessment test. This paper analyse and found that IT sector employees consider more safety as well as good return on investment rather than taking risk, when compared to urban IT sector employees.
A Study on Empirical Testing of Capital Asset Pricing ModelProjects Kart
A Study on Empirical Testing of Capital Asset Pricing Model is compared with many blue chip companies with the help of detailed questionnaire to understand the problem statement. Visit http://www.projectskart.com/p/contact-us.html for more information.
Influence of ADR on Underlying Stock PricesProjects Kart
Globalization has opened the door for the investors to avail various investment avenues across the globe. American Depository Receipt (ADR) is one such opportunity to the investing community. The ADR is a proxy for the Indian shares to enable them to be traded in the American stock exchanges. Various studies conducted on Depository Receipts (DRs) have shown that the trading on the DR sin the foreign market has its influence in the home country’s stock in terms of price, volatility and volume. This interested me and this project is concerned about studying “Whether the price fluctuations of ADR affect the corresponding Indian share prices?”
After the liberalization of the economy in 1991, the corporatist started sourcing their capital from both domestic and foreign markets. The Indian shares cannot be directly listed in the American stock exchanges. ADRs have been very helpful in this purpose. So a custodian bank receives the shares as deposit and issues receipt to the market. These receipts are issued in appropriate ratio to the shares deposited with the depository. The market players in the stock exchanges trade these receipts.
RISK AND RETURN OF SELECTED FMCG COMPANIES WITH SPECIAL REFERENCE TO KARVY ST...Bala Murugesh
The basis of the project is to identify the #RISK – #RETURN of selected FMCG Companies, Top 5 market capitalization company had been used for the study. Companies like ITC Limited, HUL Limited, Godrej Consumer Products Limited, Britannia Industries Limited & Dabur India Limited. This help to identify the total amount of the risk involved in Investment. The analysis used for the study is Descriptive statistics, Volatility (β), Compound annual growth rate (CAGR), Value at Risk(VaR), Correlation. Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian economy, Government has allowed 100 per cent Foreign Direct Investment (FDI) in food processing and single-brand retail and 51 per cent in multi-brand retail. Compound annual growth rate (CAGR) used to measure the return yielded for Y-O-Y (Year on Year), Volatility (β) and VaR (Value at Risk) is used to measure the risk of the stock. Correlation had been used to find out the relationship between NIFTY and the stocks this help to know the correlation between the stock. There is huge risk and return involved in equity find a good return stock and the risk-free stock is difficult this study will help the investor to find out a good stock.
A synopsis of Final research Report ON Investors' preference on various Investment Avenues in India.
A research report will be generated at the end of the final period evaluating the hypothesis of the reasearch
A Study on Investors Perception towards Mutual Fund Investments (With Special...Dr. Amarjeet Singh
This examination on Investors acknowledgment
towards and late improvement and headway of Mutual Fund
premiums in Alwar city goes under the board an area of
organization publicizing. In the wide thought of organization
publicizing it exclusively centers around the exhibiting of cash
related organization specifically basic resources. Well ordered
Indian budgetary market is getting the chance to be engaged
and the supply of various fiscal instruments ought to be in
parity to the premium perspectives of the monetary
authorities. The prime drive of any hypothesis is to get most
extraordinary returned with a base danger and normal
resources allow to the budgetary masters. The examination
gives an information into the sorts of risks which exist in a
mutual save plan. The data was assembled from shared save
budgetary authorities similarly as non basic store examiners of
this industry. The investigation bases on the association
between theory decision and factors like liquidity, cash related
care, and demography. It was found commonly safe resources
and liquidity of store plot are having influence on the
budgetary authority's acumen for placing assets into the
mutual save. With the more broad thought of the distinctive
components of organization publicizing, thing care, mark
tendencies, and money related authority's satisfaction are the
specific regions of the examination. The other displaying limits
like thing progression publicize division, channels of
exhibiting, thing life cycle, scale headway procedures and their
impact of Marketing are completely disposed of from the audit
of this examination. So likewise the availability of substitute
aftereffect of normal hold units and their impact on this
organization thing it also rejected in the examination. In
reality, even in the normal store monetary authorities lead also
the researcher concentrate only the urban theorists and their
anxiety for this examination work. The rustic speculator's
perspectives are totally barred from the investigation.
A Study on Performance Evaluation of Equity Shares and Mutual FundsProjects Kart
In the current economic scenario interest rates are falling and fluctuation in the share market has put investors in confusion. One finds it difficult to take decision on investment. This is primarily, because of investments are risky in nature and investors have to consider various factors before investing in investment avenues.
These factors include risk, return, volatility of shares and liquidity. The main objective of comparing investment in equity shares with mutual fund schemes is to analyze the performance of mutual funds with their benchmark and comparing them with equities by using risk, return, beta and alpha as a parameter.
analysis project for mba, comparative analysis, between private and public sectors, review, literature, comparative analysis, findings, fund project, project report, comparative, fund returns and bank deposits, reliance, fund vs uti, fund
Impact of Financial Knowledge of Investors Investment Making Decisionsijtsrd
The objective of the study is to find the impact of financial knowledge of investors on their investment making decisions. Investors are said to rational but due to the human nature, biasness comes into picture while making investment decisions. Financial literacy and financial knowledge are taken as an imperative terms for regulating human nature of investors while making essential investment decisions The study was conducted on 150 investors in the city of PUNE. The data was collected through structured questionnaire and data so obtained was analyzed with the help of SPSS software. Sunil Deshpande | Dr. Sanjay Patankar "Impact of Financial Knowledge of Investors Investment Making Decisions" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-5 | Issue-4 , June 2021, URL: https://www.ijtsrd.compapers/ijtsrd42536.pdf Paper URL: https://www.ijtsrd.commanagement/accounting-and-finance/42536/impact-of-financial-knowledge-of-investors-investment-making-decisions/sunil-deshpande
AN ANALYSIS OF AWARENESS ON FINANCIAL INVESTMENT AVENUES AMONG AIRLINE EMPLOYEESIAEME Publication
In this paper, the main objective to know in which investment avenue the majority of airline employees were prefer to investing their funds such as equity, derivatives, Gold bonds, mutual funds, crypto currency, and government securities, and to find out the expectations from investment, amount of investment, the risk-bearing capacity, level of awareness among the employees with help of demographic factors. The study was conducted among airline employees from various airlines in chennai city of Tamilnadu with a sample size of 300 respondents. Descriptive research design was adopted for the study and the primary data was collected through schedule method with the help of a structured questionnaire and the sampling technique adopted was snow ball sampling technique. Data was analyzed and interpreted with the help of statistical tools like Chisquare test and percentage analysis by using SPSS software. So an attempt is made to study the different investment avenues available and the awareness level of various investment avenues among airline employees and their willingness towards investing in financial assets. The study concludes that preference of airline employees towards various investment avenues with the expectation of safety, liquidity and to secure their income generation.
Fiduciary or paper money is issued by the Central Bank on the basis of
computation of estimated demand for cash. Monetary policy guides the Central
Bank’s supply of money in order to achieve the objectives of price stability (or low
inflation rate), full employment, and growth in aggregate income.
Osisko Development - Investor Presentation - June 24
Ijrar issue 20543635
1. [ VOLUME 6 I ISSUE 2 I APRIL– JUNE 2019] E ISSN 2348 –1269, PRINT ISSN 2349-5138
852 IJRAR- International Journal of Research and Analytical Reviews Research Paper
AN ANALYTICAL STUDY ON INVESTORS PERCEPTION TOWARDS
MUTUAL FUNDS
Shilpa Sampath Kumar1 & Dr.Umamaheswari.S2 & Kusuma K Reddy3
Professor1, M.COM – IV Sem3
1,2,3Department of Commerce – PG Studies School of commerce, Jain (Deemed to be University)
District Fund Road, Behind Big Bazaar Jayanagar 9th Block, Bengaluru – 560069
Karnataka.
Received: January 31, 2019 Accepted: March 06, 2019
ABSTRACT: Mutual funds are most appropriate investment for an investor as it offers a chance to invest in
a diversified, professionally managed basket of securities at a reasonably low cost. It has become important
to study mutual funds from a different angle, which is to emphasis on investor’s perception. This research
paper attempts to focus attention on the influence of various factors influencing investors’ perception
towards mutual funds. A survey was conducted and data was collected by applying Convenience method of
sampling. Statistical tools like “Chi-Square Test” and “Correlation” were applied to analyze the data.The
results of Chi-Square test revealed an association amongst the demographic variables like gender and
monthly income with factors like tax benefit and liquidity influencing the investment in mutual funds.The
Correlation test also revealedthat there is a significant relationship amongst the various factors which
influence the Investor’s perception towards performance of mutual fund.
Key Words: Investors perception, mutual funds, performance, investment
1. INTRODUCTION
A mutual fund is an investment mode for investors who gather their savings for investing in diversified
portfolio of securities with the intention of attractive yields and increase in their value. The profit or loss is
shared by the investors in proportion to their investments. Factors affecting Mutual Fund investments are
risk factor, regular income factor, return factor, liquidity factor, flexibility factor and awareness factor. The
mutual funds generally come out with various numbers of schemes with different investment objectives,
which are propelled from time to time. Various types of Mutual Funds are Growth fund, income fund, money
market fund, equity fund, debt fund, open-ended fund, closed-ended fund, balanced fund, tax savings fund,
index fund and sector specific fund. Investor perception about an investment would mean how the investor
visualises or sees the different investment opportunities. Knowledge of investor perception is important
because the perception of investors can influence the investment pattern and his investment behaviour like
risk tolerance level, investment preference on the basis of age, gender, education, income, occupation etc.
2. REVIEW OF LITERATURE
Sharma & Agarwal (2015) attempted to understand the effect of demographic factors in mutual fund
investment decisions. The study tells that the investors’ perception is reliant on their demographic profile.
Investor’s age, marital status and profession has a direct impact on investor’s choice of investment. The
research also reveals that the liquidity and transparency are some factors which have a high impact on
investment decisions. On the contrary Subramanya (2015) identified that the socio economic factors like
age, gender, education, income and savings influence on investor’s perception towards mutual fund is not
encouraging but the investor’s age and saving habit of the respondent is closely correlated.
Kumar & Bansal (2014) focused attention on various parameters that highlights investor’s perception on
mutual funds. It was calculated that the scheme of mutual fund investment were not well-known to many of
the investors as still the investors trust upon the traditional form of investments like investment in banks
and postal savings. As most of the mutual fund investors used to invest in mutual fund for not more than
three years and used to quit from the fund as they were not giving anticipated result as specified in the
objective during inception of mutual fund scheme. It was also found from the research that extreme number
of mutual fund investor’s has to depend upon their brokers and agent to invest in mutual fund.
Rathnamani (2013) concluded in her research that many investors prefer to invest in mutual fund in order
to obtain high gain at low level of risk, safety and liquidity. However, Khitoliya (2014) examined through
her research that majority of the respondents in the age group of 35-44 years wish to invest in mutual fund
having moderate risk which guarantees wealth maximization followed by balanced and income funds.
2. [VOLUME 6 I ISSUE 2 I APRIL – JUNE 2019] e ISSN 2348 –1269, Print ISSN 2349-5138
http://ijrar.com/ Cosmos Impact Factor 4.236
Research Paper IJRAR- International Journal of Research and Analytical Reviews 853
Similar results have been seen in the age group of 25-34. But a reverse trend was seen in the age group of 45
years and above where majority are risk averse as they wish to invest in mutual fund schemes which
assures safety of principal amount followed by balanced fund and growth fund.
3. DESIGN OF THE STUDY
3.1. Statement of the Problem
There has been no comprehensive study establishing the perception of investors and factors or
characteristics influencing the investment in mutual fund. Hence, the main focus of the study is to
know the basis under which the mutual fund investment is done, whether it’s as per the factors,
schemes, nature or structure of the funds.
3.2. Need of the Study
The main purpose of this study is to analyse the investor’s perception towards mutual fund.
Further, the study also enables us to understand if the investor perception is dependent on the
demographics of the investor along with various other factors.
3.3. Objectives of the Study
To determine the association between the demographic profile of respondents and various
factors influencing the investment in mutual funds.
To know the significant relationship among the factors influencing Investor’s perception
towards performance of mutual fund.
3.4. Measurement of Scale: The study is primarily based upon primary data. For this study the
structured Questionnaire which consists of 5 point Likert scale was presented to the respondents
to collect their views.
3.5. Sampling: Sampling size- 103& Sampling technique- Convenience sampling.
3.6. Research Method: Descriptive research.
3.7. Research Instrument Used for Data Analysis: The collected data will be analysed through
statistical tools like correlation & chi-square test.
3.8. Limitations:
The size of the sample compared to the population is small and hence it might not indicate the ideas
of entire population.
The geographical area of this study is confined to the opinions expressed by the respondents of
Bengaluru city only.
A few respondents might have furnished the required information from their momentary memory
hence the collected data might be subject to bias.
Since the study covers the overview of investing in mutual fund, it cannot be generalized.
Few respondents do not agree to express their opinion and understandings on their investment and
have stated common view on investment practices.
4. DATA ANALYSIS AND INTERPRETATION
4.1. Reliability Statistics
Table 4.1: Reliability Statistics
Cronbach's Alpha N of Items
0.586 16
This statistical test measures the consistency between the survey scales. The study reliability score is 0.586.
It shows the goodness of fit of data.
4.2. Frequency Table
Table 4.2: Demographic profile of the respondents
Demographic Profile by Age
Age group No of respondents Percent
20 – 30 65 63.1
30 – 40 30 29.1
40 – 50 2 1.9
Above 50 6 5.8
Total 103 100.0
3. [ VOLUME 6 I ISSUE 2 I APRIL– JUNE 2019] E ISSN 2348 –1269, PRINT ISSN 2349-5138
854 IJRAR- International Journal of Research and Analytical Reviews Research Paper
Demographic Profile by Gender
Gender No of respondents Percent
Male 49 47.6
Female 54 52.4
Total 103 100.0
Demographic Profile by Education
Education No of respondents Percent
U.G 34 33.0
P.G 58 56.3
Others 11 10.7
Total 103 100.0
Demographic Profile by Occupation/profession
Occupation No of respondents Percent
Employed 32 31.1
Self-employed 12 11.7
Student 50 48.5
Others 9 8.7
Total 103 100.0
Demographic Profile by Monthly Income
Income No of respondents Percent
<50,000 70 68.0
50,000-1,00,000 19 18.4
1,00,000-2,00,000 5 4.9
>2,00,000 9 8.7
Total 103 100.0
Source: Primary data
4.3. Descriptive Statistics
Table 4.3: Descriptive Statistics
Influential factors
meanMe
Mean
Std.
Deviation
High return 3.28 .974
Risk 3.55 .894
Liquidity 3.57 .749
Regular income 3.57 .966
Tax benefit 3.70 .968
Flexibility 3.70 .802
Broker’s advice 3.16 .937
Performance of schemes 3.47 .958
4.4. Chi-Square Test
Hypothesis 1
H0-There is no association between the demographic variables and the various influential factors of mutual
fund investment.
H1- There is association between the demographic variables and the various influential factors of mutual
fund investment.
Table 4.4: Chi-square analysis on the association among demographics of respondents and factors
influencing investment in Mutual funds
Factors Age Gender Educational
qualification
Monthly
Income
Occupation
/Profession
High return on
investments
Chi-square 11.544 7.056 7.138 7.852 9.162
Sig. 0.483 0.1329 0.5217 0.7966 0.6890
Risk involved in
investment
Chi-square 20.430 6.447 12.649 7.094 17.505
Sig. 0.0593 0.1681 0.1245 0.8513 0.1315
Liquidity of the
company
Chi-square 11.755 2.846 4.012 30.043 8.820
Sig. 0.4655 0.5838 0.8560 0.0027 0.7181
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Research Paper IJRAR- International Journal of Research and Analytical Reviews 855
Regular income
from investment
Chi-square 15.252 3.468 6.904 18.043 8.831
Sig. 0.2279 0.4827 0.5470 0.1143 0.7172
Tax benefit from
investment
Chi-square 14.837 10.964 7.650 10.983 13.621
Sig. 0.2504 0.0269 0.4684 0.5303 0.3255
Flexibility of
investment
Chi-square 9.153 4.684 4.877 11.773 15.197
Sig. 0.6897 0.3212 0.7706 0.4641 0.2308
Broker’s advice Chi-square 5.565 4.820 7.692 6.614 7.164
Sig. 0.9364 0.3062 0.4640 0.8820 0.8466
Performance of
schemes of
investment
Chi-square 11.500 2.626 6.001 11.478 6.668
Sig. 0.4866 0.6222 0.6471 0.4884 0.8787
The significance value for the demographic variables such as gender and monthly income is less than 0.05.
Hence, we reject the null hypothesis and conclude that there is an association amongst the demographic
variables like gender with the tax benefit from investment in mutual funds and monthly income also has a
significant association with factors like liquidity of the company.
The significance level of all the other factors mentioned further is more than 0.05. Hence we accept the null
hypothesis and conclude that there is no association between the demographic variables and the various
influential factors of mutual fund investment. Demographic variables such as age, educational qualification
and occupation/profession has no significant association with the various influential factors like High return
on investments, Risk involved in investment, Liquidity of the company, Regular income from investment, Tax
benefit from investment, Flexibility of investment, Broker’s advice and Performance of schemes of
investment.
Correlation Test
Hypothesis 2
H0-There is no relationship amongst the factors which influence the Investor’s perception towards
performance of mutual fund.
H1-There is a relationship amongst the factors which influence the Investor’s perception towards
performance of mutual fund.
Table 4.5: Correlation analysis among the various factors influencing Investor’s perception towards
performance of mutual fund.
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The significance level of all the factors mentioned below is less than 0.01. Hence we reject the null hypothesis
and conclude that there is a relationship amongst the factors which influence the Investor’s perception
towards performance of mutual fund.
The factor High return on investment has a positive significant relationship with Risk involved in
investment, Liquidity of the company, Regular income from investment, Tax benefit from investment
and Performance of schemes of investment as they have sig. values 0.001, 0.050, 0.010 and 0.006
respectively;
The factor Performance of schemes of investment has a positive significant relationship with all the
influential factors as they all have 0.000 sig. values except for Risk involved in investment;
The factor Risk involved in investment has a positive significant relationship only with high return
on investment which has 0.001 significance value;
The factor Regular income from investment has a positive significant relationship with all the
influential factors except for Risk involved in investment;
The factor Liquidity of the company has a positive significant relationship with Performance of
schemes of investment, Regular income from investment and High return on investment as they
have sig. values 0.007, 0.008 and 0.050 respectively;
The factor Tax benefit from investment has a positive significant relationship with Performance of
schemes of investment, Flexibility of investment, High return on investments and Regular income
from investment as they have sig. values 0.000, 0.001, 0.006 and 0.001 respectively;
The factor Broker’s advice has a positive significant relationship with Regular income from
investment and Performance of schemes of investment as they have sig. values 0.002 and 0.000;
The factor Flexibility of investment has a positive significant relationship with Tax benefit from
investment and Performance of schemes of investment as they have sig. values 0.001 and 0.000
The significance level of all the factors mentioned below are less than 0.05 hence we reject the null
hypothesis and conclude that there is a relationship amongst the factors which influence the Investor’s
perception towards performance of mutual fund.
The factor Broker’s advicehas a positive significant relationship with Liquidity of the company and
Tax benefit from investment as they have sig. values 0.017 each;
The factor Regular income from investmenthas a positive significant relationship withFlexibility of
investment which has a sig. value 0.016.
5. FINDINGS, SUGGESTIONS & CONCLUSION
5.1. Findings
Majority of the respondents (52.4%) are female and a maximum of 63.1%of the respondents are of
the age group 20-30years.
Most of the respondents are students (50%) followed by employed (32%) with a post-graduation
(58%) and under graduation (34%) educational qualifications.
Most of the respondents (68%) are having a monthly income level below Rs. 50,000 followed by
respondents having income level Rs. 50,000-Rs. 100,000 (18.4%).
The Chi-Square test at 5% level of significance shows that the alternate hypothesis is being
accepted since:
There is an association amongst the demographic variables like gender and monthly income with
factors like tax benefit and liquidity influencing the investment in mutual funds.
Demographic variables such as age, educational qualification and occupation / profession has no
significant association with the various influential factors like High return on investments, Risk
involved in investment, Liquidity of the company, Regular income from investment, Tax benefit from
investment, Flexibility of investment, Broker’s advice and Performance of schemes of investment.
The Correlation test shows that:
The significance level of all the factors is less than 0.01 and 0.05. Hence we conclude that there is a
relationship amongst the factors which influence the Investor’s perception towards performance of
mutual fund.
5.2. Suggestions
The investor should keep an eye on the performance of scheme and other good schemes which are
available in the market for the closed comparison.
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Research Paper IJRAR- International Journal of Research and Analytical Reviews 857
Efforts should be made to encourage or enhance online dealing of mutual funds. This will save time
and cost. They can effortlessly sell or purchase any number of funds whenever they want.
The brokers should reduce the brokerage charges for the intraday and delivery based, so that the
investor can save more amount to generate extra investment for the investor himself as well as for
the mutual fund companies.
The mutual fund industry must also help people in mobilizing their savings in such a way that they
can get maximum benefits out of them. The companies must try to increase the investments in
moderate to high risk investments by highlighting the rewards and returns on such funds.
Some investors suggested that the fund values of the mutual fund investment should be informed to
the investors through SMS on fortnightly basis. This will help the investors in keeping themselves
up to date with the latest information of different funds.
5.3. Conclusion
The minds of the investing public look for investments are safe and that it will earn good returns. This study
conducted was regarding the factors influencing the investor’s perception towards mutual fund investment.
It is highlighted that investors’ of middle income level agrees that regular income and liquidity of the
investment plays a vital role. It can be perceived that high risk leads to high returns in the investment. The
flexibility in the investment would lead to good performance of the funds. There’s a scope where investors
belonging to different age groups seek for many other factors that can attract them to invest in the mutual
fund industry than just the ones considered for the study. Measures should be taken to increase the
confidence and morale of the investors. This can be done through proper communication and by educating
investors to invest in mutual funds. Sensible and right information should be given to them by various
communication modes so that they get to know about the latest trends in the market. Mutual funds are still
and would carry on to be the unique financial instrument in the country.
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