Perception Of People Regarding Mutual Funds In India

1
MUKESH PATEL SCHOOL OF TECHNOLOGY MANAGEMENT AND
ENGINEERING
SVKM’S NMIMS
Perception Of People Regarding Mutual
Funds In India
A Research Project submitted in partial fulfilment
Of the requirements for the degree of
MBA (Tech)
By
Akash Patil K-074
Under Supervision
Of
Prof Dr. Malati Hoskote
Year of graduation 2017

2
DECLARATION
I hereby declare that the research projecttitled, “Perceptionof People
regarding Mutual Funds in India”, submitted by me is based on original work
carried out by all the group members. I certify that it has not been submitted
anywhereelse. I further declare that Mukesh Patel School of Technology
Management and Engineering NMIMS (deemed-to-be-university) willhavethe
copyrighton the project reportsubmitted by me to the college (MPSTME)
Thanking You
(Akash Patil)

3
ACKNOWLEDGEMENT
Research Project is a golden opportunity for learning and self-development.
We consider ourselves very lucky and honoured to haveso many wonderful
people who lead us through these 12 weeks of work. Weare grateful to Prof
Dr.Malati Hoskote (Mentor) who, in spite of being extraordinarily busy with
her duties, took time out to hear, guide and keep us on the correctpath.
Last but not the least we would like to thank all our teachers and friends who
took the effort to teach us everything and sharevaluable information with a
bright smile. Our experience here was a great one and weare looking forward
to go out in the real world and implement whatever wehave learnt in the past
couple of months. Without their supportthis projectwouldn’thave been
possible.

4
TABLE OF CONTENTS
1. Introduction:……………………………………………………………………………………….……… 6
2.Literature Review:.......................................................................................7
3. Research Methodology.............................................................................15
3.1) Theoretical Framework ......................................................................15
3.2) Hypothesis........................................................................................16
3.3) Sources of Data.......................................................................................17
3.4) Sampling Procedures..........................................................................17
3.5) Methods of data Analysis ...................................................................17
4) Analysis...................................................................................................18
1. Frequency Table..........................................................................................18
2. Correlation Analysis ............................................................................21
3. Regression Analysis:............................................................................22
4. Multiple responseanalysis........................................................................24
5) Results.................................…………………………................………………………….…29
5.1) Correlation Matrix....................................................................................29
5.2) Regression analysis...................................................................................29
5.3) Multiple responseanalysis.......................................................................30
6) Conclusions...............……………………………………………………………………………......32
7) Suggestions....................................................................................................33

5
8) References.....................................................................................................34
ABSTRACT
Mutual funds have opened new vistas to millions of small investors by virtually
taking investment to their doorstep. In India, a small investor generally goes
for such kind of information, which do not providehedge againstinflation and
often have negative real returns. He finds himself to be an odd man out in the
investment game. Mutual funds havecome, as a much needed help to these
investors. Thus the success of MFs is essentially the result of the combined
efforts of competent fund managers and alert investors. A competent fund
manager should analyzeinvestor behaviour and understand their needs and
expectations, to gear up the performanceto meet investor requirements.
Therefore, in this current scenario it is very important to identify needs of
mutual funds investors, their preference for mutual funds schemes and its
performanceevaluation. In this research paper, researcher has an objective
To know preference of mutual funds investors and performanceevaluation of
the preferred schemes by the investors. Thesurvey is undertaken of 100
educated investors of Ahmadabad and Baroda city and the major findings
reveal the major factors that influence buying behaviour mutual funds
investors, sources thatinvestor rely more while making investment and
preferable mode to invest in mutual funds market. The study will be
immensely usefulto the AMC'; s, Brokers, distributors and to the other
potential investors and last but not least to academician as well.

6
1. Introduction:
Purpose of study (ProblemStatement): To understand how the financial
performanceof Mutual Funds havechanged in the last few years and to find
out what is the perception of people about Mutual Funds in India.
Objectives of the Study
• To know the preference of investors and their needs regarding mutual funds
investment.
• To analysefactors that influence mostwhile buying mutual funds.
• To evaluate performanceof mutual fund schemes preferred by investors on
the basis of return parameters.
Consumer behaviour fromthe marketing world and financial economics have
come together to bring to surfacean exciting area for study and research in
the formof BehaviouralFinance and it has been gaining importance over the
recent years. With reforms in financial sector and the developments in the
Indian financial markets, Mutual Funds (MFs) haveemerged to be an
important investment avenue for retail (small) investors. Theinvestment habit
of the small investors particularly has undergonea sea change. Increasing
Number of players frompublic as well as private sectors has entered in to the
market with innovativeschemes to cater to the requirements of the investors
in India and abroad. For all investors, particularly thesmall investors, mutual
funds haveprovided a better alternative to obtain benefits of expertise- based
equity investments to all types of investors. So in this scenario where many
schemes are flooded in to market, it is important to analyseneeds of
consumers and to find out which factors affects consumers'needs the most.

7
2. Review of related literature:
Literature Review
1. Performance Evaluationof Mutual funds in India – A Comparative Study of
Public and Private Sector Mutual Funds.
Vinay Kandpal, AssistantProfessor AmrapaliInstitureof Management
Mutual Funds are the investment vehicles where people with similar
investment objective come together to pool their money and then invest
accordingly. With emphasis on increase in domestic savings and improvement
in deployment of investment through markets, the need and scope for mutual
fund operation has increased tremendously. But about 75% people are still
investing in Postoffice, MIS and bank deposit. Onemajor reason behind it is
lack of awareness in ruralareas. There is, therefore, a strong need for
improving the awareness in a big way. Itis important to study about the
returns given by AMC Mutual Funds and perform a comparativeanalysis.
The major objectives of this study were as follows:
 To find out the financial performanceof Mutual Funds Scheme.
 To appraise the investment performance of mutual Funds with Risk
adjustments the theoretical parameters as suggested by Sharpe,
Treynor and Jensen.
Secondary data was collected for the purpose of the Research work the
Equity diversified schemes of following Public Sector and Private Sector
Mutual Fund houses was selected based on the most evident investor profiles
in the Indian Mutual Fund market:
 Public Sector Mutual Fund: SBI, UTI and CANBANK
 Private Sector Mutual Fund: Franklin Templeton, HDFC and Reliance

8
The research concluded that The Private Sector Mutual Funds have
recorded much better performance as compared to the Public sector
Mutual Funds and the reasons were better Funds allocation, Management
and efficient performanceof the Portfolio Manager. The Sharpe, Treynor,
beta and Jensen ratio were used in this method.
2. Characteristics &Performance Evaluationof SelectedMutual Funds In
India
SharadPanwarB-Tech (U.P.), PGDIT(I.I.TKharagpur) and Dr. R. Madhumathi
In this paper the differences in characteristics of assets held, portfolio
diversification, and variableeffects of diversification on investment
performanceof public-sector sponsored & private-sector sponsored mutual
funds of varied net assets for the period May, 2002 to May,2005.
The main objectives of this study were:-
• To identify differences in characteristics of public-sector sponsored &
private-sector sponsored mutualfunds
• To find the extent of diversification in the portfolio of securities of public-
sector sponsored and private-sector sponsored mutualfunds
• To comparethe performanceof public-sector sponsored and private-sector
sponsored mutualfunds using traditional investment measures
After the research it was found that public-sector sponsored funds don'tvary
much fromprivate-sector sponsored funds in terms of mean returns
percentage(%).Buta significant difference between public-sector sponsored
mutual funds and private-sector sponsored mutualfunds in terms of average
standard deviation, average varianceand averagecoefficient of
variation(COV)wasfound.
And according to the research there is a statistical difference between
sponsorship classesin terms of e SDARas a performancemeasure. When
residualvariance (RV) is used as the measure of mutual fund portfolio
diversification characteristic, there is a statistical difference between public-
sector sponsored mutualfunds and private-sector sponsored mutual.
And RV has a direct impact on Sharpefund performancemeasure.

9
3. A Comparative Analysis Of Mutual FundSchemes inIndia
Dr.SaritaBahl,AssociateProfessor, P.G Departmentof Commerce and
Management and MeenakshiRani Research Scholar, Department of
Commerce, Kurukshetra University
This paper represents the performanceof 29 open-ended, growth-oriented
equity schemes for the period from April 2005 to March 2011 (sixyears) of
transition economy. Returns from the fund schemes were calculated using
Monthly NAV Of different schemes. For marketportfolio BSE SENSEX was used.
Sharpe, Treynor, and Jensen’s measurewere used to evaluate the historical
performanceof the selected schemes whoseresults can be usefulfor investors
for taking better investment decisions in the future.
In the paper its stated that 14/29 i.e(48.28%) samplemutualfund schemes had
outperformed the benchmark return. The results also showed that some of the
schemes had underperformed, and the main problem with these schemes was
diversification. The Sharperatio was positivefor all schemes which showed
that funds were providing returns greater than risk free rate. Results of Jensen
measurerevealed that 19/29 i.e(65.52%) schemes showed positivealpha
which indicated superior performanceof the schemes.
4. The Relationship Between Fund Performance and Fund Characteristics
in India
N Vijayakumar and S. Muruganandan
Mutual funds have gained popularity among the investors seeking investment
opportunities in financial markets. Mutual funds facilitate greater
diversification through professionalmanagement at substantially lower cost..
Generally, the investors do not have sufficient knowledge, time, cost and

10
information about mutual funds. In order to overcomethese problems, a new
category of mutual funds is being introduced, i.e., Fund of Funds (FoF).
The first Fund of Mutual Funds is 'FT India Dynamic PE Ratio FoFs'launched by
Franklin Templeton Mutual Fund during October 2003 Theperformanceof
funds challenges the skills of the fund managers in ensuring extreme returns to
the given size, management fees, fund age, etc.
The performancetechniques used were relative performanceindex, risk-return
analysis, Treynor's ratio, Sharpe's ratio, Sharpe's measure, Jensen's measure,
and Fama's measureevaluated the Indian mutual fund managers'performance
using conditional and non-conditional parameters.
When the fund is at high risk, the performanceof the fund usually remains
below average; therefore, the fund will be considered undesirable and vice
versa and the researchers expect linear relationship between fund returns and
the risk.
The positive relationship between fund performanceand expenses ratio in this
paper denotes that fund manager lacks in making efficient use of resources to
offsettheir expenses in acquiring and acting on new information which is also
confirmed with insignificant relationship between income ratio and fund
performanceThis significantly negative coefficient of turnover ratio with fund
performanceindicates that the fund managers still requiresuperior knowledge
to involve in active buying and selling of funds with lower transaction costs for
higher return and high turnover of funds.
The resultwas that the fund managers arenot aggressive, even if they react to
new information and the fund managers are likely to be motivated to perform
well in the given market conditions.
5. A Comparative Performance Evaluationof PrivateSectorandPublic Sector
Equity Funds of India

11
Kshama Agarwaland PrernaPatwa
This Paper gave a comparative study of the performance of equity funds
focusing on the growth of public sector mutual funds and private sector mutual
funds. It aims to evaluate the performance of equity funds by analyzing a
sample of four companies each from both the sectors and five schemes of
similar nature. It basically evaluates the risk-return profile of the funds.
Testing the hypotheses was done using Mann-Whitney U-test, and the study
reveals that there is a significant difference between the performances of
private and public sector mutual funds and that the private sector has
performed better than the public sector.
The study revealed that the stock prices could not be forecasted accurately
with the help of mutual funds. Considering any single type of fund and ignoring
the other funds does not depict the true picture of the mutual fund market.
Performanceevaluation of differenttypes of funds would give a morereal
picture of the mutual fund industry. Therefore, Kathaian (2012) conducted a
study to analyze the performanceof different types of mutual funds in India.
He analyzed and evaluated the performanceof mutual funds under categories
like equity funds and income funds, and concluded that equity funds
outperformed income funds.
The performanceof Indian mutual funds through relative performanceindex,
risk return analysis, Treynor’s ratio, Sharp’s ratio, Jensen’s measure, and
Fama’s measure. The results of performancemeasures suggested that mostof
the mutual funds had given positive return during the period of the study. This
study was conducted for a very shortperiod. The small time duration does not
authenticate the final results of the study. The public sectors funds are not
able to performat par with the private sector funds.They arefar behind in
generating returns as compared to the private sector funds. Similarly, in the
case of risk, both the sectors are not at par and face different level of total risk.
The private sector funds areless risky as compared to the public sector funds.
Fromthe aboveanalysis, it can be concluded that there is a significant
difference between the performances of privateand public sector mutual
funds. The private sector funds haveperformed better than the public sector

12
funds as they have been able to generate better returns than the public sector
funds during the period of study.
6. Comparative Study Of Performance EvaluationOf Mutual Fund Schemes Of
Indian
Prof.Kalpesh P Prajapatiand Prof. Mahesh K Patel
The performanceevaluation of Indian mutual funds is carried out through
relative performanceindex, risk-return analysis, Treynor's ratio, Sharp's ratio,
Sharp's measure, Jensen's measure, and Fama's measure. The data used is
daily closing NAVs.
The main objectives of the Study were:
 To evaluate and compare the performanceof equity diversified
MFschemes of selected companies
 To compare the performanceof equity diversified mutual fund schemes
of selected companies.
Main Observations in this paper:
 Treynor Ratio: Beta is less than one to all selected mutual fund
companies which means the funds areless volatile than the Index
 Sharpe’s Ratio: Itis an excess returns earned over risk free return (Rf)
per unit of risk i.e. per unit of Standard Deviation. Positivevalue of
schemes indicates better performance
 Jensen Ratio(Alpha): It is the regression of excess return of the scheme
(dependent variable) with excess return of the market(independent
variable). Higher Alpha value indicates better performance.
The Paper concludes that the Private sector mutual fund schemes are
performing better than Public sector mutual fund schemes.

13
7. A Study Of Performance EvaluationOf Mutual Fund and Reliance Mutual
Fund
Alka SolankiResearch Scholar, Saurashtra University, Rajkot, India
In this paper the researcher tried to evaluate the performanceof Reliance
open-ended equity schemes with growth option. The period of the study spans
from1stApril 2007 to 31stMarch 2016.To evaluatethe performanceof the
selected mutual fund schemes, monthly returns arecompared with Benchmark
BSE National 100 and SENSEX returns.
Main Objectives of the were:-
1. To Evaluate the Performanceof sample schemes.
2. To compareschemes return and risk with benchmark i.e. BSE 100. To
compareschemes return and risk with benchmark i.e. SENSEX.
The main resultwas that out of the total schemes studied, all schemes showed
an averagereturn higher than in comparison to the market return i.e. BSE 100
and SENSEX except one i.e. Reliance Focused LargeCap Fund.
8. Performance Evaluationof Mutual Funds:A Study of SelectedDiversified
Equity Mutual Funds in India
DrVikasChoudhary,and PreetiSehgalChawla
The mutual fund industry in India was started in the year 1963 with the
formation of Unit Trustof India. This industry was privatized in the year 1993.
The wide variety of schemes floated by these mutual fund companies gave
wide investment choice for the investors. Among widevariety of funds equity
diversified fund is considered as substitute for direct stock market investment.
In this research paper an attempt is made to analyze the performanceof the
growth oriented equity diversified schemes on the basis of return and risk
evaluation. The analysis was achieved by assessing various financialtests like
AverageReturn, Sharpe Ratio, Treynor Ratio, Standard Deviation, Beta and
Coefficient of Determination (R2 ). The data has been taken from various
websites of mutual fund schemes and from amfiindia.com. The analysis depicts
that majority of funds selected for study

14
Main objectives of the study:-
 To study the performanceof Selected Diversified Equity Mutual Funds in
India.
 To compare the performanceof Selected Diversified Equity Mutual
Funds in India.
The secondary data had been used and collected from the fact sheets,
newspapers, journals, books and periodicals. Thedata were also collected from
various websites of AMCs, AMFI, moneycontrol.cometc. The NAVs of the
sample mutual fund schemes have been collected on monthly basis over a
period of eight years. BSE Sensexhad been used as a benchmark for
performanceevaluation of different schemes and provides the time series data
over a fairly long period of time
The study has compared the various equity diversified mutual funds. Summary
of results is presented in different tables. In India, innumerablemutual fund
schemes are available to general investors which generally confound them to
pick the best out of them. This study provides someinsights on mutual fund
performanceso as to assistthe common investors in taking the rational
investment decisions for allocating their resources in correctmutual fund
scheme. The data employed in the study consisted of monthly NAVs for the
open-ended schemes. The study utilized benchmark portfolios according to the
scheme objective such as BSE Sensex for all growth/equity schemes. In this
paper the performanceof samplemutual fund schemes has been evaluated in
terms of return and risk analysis, and risk adjusted performancemeasures such
as Sharpe ratio and Treynor ratio.

15
3) Research Methodology
We are opting for a Questionnairetype methodology as the topic is consumer
oriented and the best way to gather data is with the help of asking questions
to the people.
Identificationof respondents:
The respondents we haveselected are from the age group of 20-25 and
consists of students, part-time workers and full-time employees of different
backgrounds.
Questionnaire:
The questions for the questionnaire havebeen prepared by the team members
related to the topic based on understanding from research papers with similar
research objectives.
3.1) Theoretical Framework
Firstand foremostthe independent variables and the dependent variable were
set as follows -
Independent variables
1. Gender
2. While investing your money, which factor do you prefer the most.
3. Where do you find yourself as a mutual fund investor?
4. In which kind of mutual you would like to invest?
5. How did you come to know about Mutual Fund?
6. Why didn’t you invest in Mutual Fund?
7. Which feature of the mutual funds attracts you most?

16
8. When you invest in Mutual Funds which mode of investment will you
prefer?
9. In which type of mutual fund schemes haveyou invested?
10. How would you like to receive the returns every year?
Dependent Variable
1. Have you ever invested your money in mutual fund?
2. Performanceof mutual funds.
3.2) Hypothesis
1. Gender is relevant while making investment in mutual funds
a) H0: Males invests more in Mutual Funds than females
b) H1: Males do not invest more in Mutual funds than females
2. Factor that is most preferred as the reason of investment in mutual funds
a) H0: High return is the mostpreferred reason
b) H1: High return is not the most preferred reason
3. Kind i.e. Public or Private mutual funds arerelevant.
a) H0: People investmore in private mutual funds than public mutual funds
b) H1: People do not investmore in private mutual funds than public
mutual funds
4. Feature that attracts the most customers
a) H0: Better return and safety is the most attractive feature of mutual
funds
b) H1: Better return and safety is not the most attractive feature of mutual
funds
5. Mode of investment of mutual funds
a) H0: People prefer SIP as a mode of investment for mutual funds
b) H1: People do not prefer SIP as a mode of investment for mutual funds

17
6. Type of mutual fund schemes – Debt schemes and Equity based schemes
a) H0: People prefer equity based schemes over debt based schemes
b) H1: People do not prefer equity based schemes over debt based scheme
7. Returns of mutual funds
a) H0: Growth in NAV is the most preferred return from mutual funds
b) H1: Growth in NAV is not the mostpreferred return from mutual funds
3.3) Sources of Data
In the present study the researcher would like to use both type of data e.g. (i)
Primary data, and (ii) Secondary data.
For Primary data, we would like to constructa Questionnaireand would like to
administer on selected sample. For Secondary data, we had considered the
already published information like newspapers, magazines, reports of different
organization, research papers, thesis, etc. In addition to these different related
web-sites has also been searched.
3.4) Sampling Procedures
i. Population: target population waspeoplebetween age group 22-55yrs
who have idea about investments.
ii. Sampling design: probability sampling was chosen from population data
iii. Sample size: Around 40 samples werechosen out of population to avoid
variability in population data and considering the time constraints with
95% of confidence interval.
3.5) Methods of data Analysis
With the help of IBMSPSS statistic softwaredata were analysed
i. Frequency Table was constructed

18
ii. Correlation between different variables were found
iii. Regression analysis was doneto establish relation with different
variables and find their strength level.
iv. Finally hypothesis weretested
v. Multiple responseanalysis was done
4) Analysis
1. Frequency Table –
The 7 different hypotheses wereset from the results of frequency table i.e.
these results were used to select the mostvoted variable as the variable of the
hypothesis.
Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid Female 12 30.0 30.0 30.0
Male 28 70.0 70.0 100.0
Total 40 100.0 100.0
While investing your money, which factor do you prefer the most.
Cumulative
Percent
Valid Liquidity 6 15.0 15.0 15.0
Low Risk 13 32.5 32.5 47.5
High Return 20 50.0 50.0 97.5
CompanyReputation 1 2.5 2.5 100.0
Total 40 100.0 100.0
Have you ever invested your money in mutual fund?
Cumulative
Percent
Valid no 17 42.5 42.5 42.5
yes 23 57.5 57.5 100.0

19
Total 40 100.0 100.0
If yes, Where do you find yourself as a mutual fund investor?
Cumulative
Percent
Valid Partial Knowlede of Mutual
Funds
5 12.5 21.7 21.7
Aware only of any specific
schemes in which you
invested
7 17.5 30.4 52.2
Fully aware 11 27.5 47.8 100.0
Total 23 57.5 100.0
Missing System 17 42.5
Total 40 100.0
If yes,In which kind of mutual you would like to invest?
Cumulative
Percent
Valid Public 10 25.0 43.5 43.5
Private 13 32.5 56.5 100.0
Total 23 57.5 100.0
Total 40 100.0
If no, why didn’t you invest in Mutual Fund?
Cumulative
Percent
Valid Not aware of MF 9 22.5 52.9 52.9
Higher risk 2 5.0 11.8 64.7
Not any specific reason 6 15.0 35.3 100.0
Total 17 42.5 100.0
Total 40 100.0
Which feature of the mutual funds attract you most?

20
Cumulative
Percent
Valid Diversification 11 27.5 30.6 30.6
Better return and safety 22 55.0 61.1 91.7
Regular Income 1 2.5 2.8 94.4
Tax Benifit 2 5.0 5.6 100.0
Total 36 90.0 100.0
Total 40 100.0
When you invest in Mutual Funds which mode of investment will you prefer?
Cumulative
Percent
Valid One Time Investment(Lump
sum)
3 7.5 8.1 8.1
Systematic Investment Plan
(SIP)
18 45.0 48.6 56.8
Both 16 40.0 43.2 100.0
Total 37 92.5 100.0
Total 40 100.0
In which type of mutual fund schemes have you invested ?
Cumulative
Percent
Valid Debt Schemes 3 7.5 14.3 14.3
Equity based Schemes 6 15.0 28.6 42.9
Both 12 30.0 57.1 100.0
Total 21 52.5 100.0
Total 40 100.0
How would you like to receive the returns every year?
Cumulative
Percent
Valid Dividend payout 12 30.0 34.3 34.3

21
Dividend re-investment 7 17.5 20.0 54.3
Growth in NAV 16 40.0 45.7 100.0
Total 35 87.5 100.0
Total 40 100.0

22
2. Correlationanalysis -
The result of the Correlation analysis was a squarematrix but since we were
required to find the correlation between the dependent variable “Haveyou ever
invested your money in mutual fund?” with ten independent variables, only the
values in dark blue colour were significant.
Itwas found that five variables weresignificant as their p-valuewas more than
0.05.
The rest five variables were excluded from the regression analysis.
Have you ever invested
your money in mutual
fund?
Gender Pearson Correlation .210
Sig. (2-tailed) .194
N 40
While investing your money,which factor do
you prefer the most.
Pearson Correlation .250
N 40
Have you ever invested your money in mutual
fund?
Pearson Correlation 1
Sig. (2-tailed)
N 40
If yes, Where do you find yourself as a mutual
fund investor?
Pearson Correlation .b
N 23
If yes,In which kind of mutual you would like to
invest?
N 23
If yes, how did you come to know about Mutual
Fund?
N 23
If no, why didn’tyou invest in Mutual Fund? Pearson Correlation .b
N 17
Which feature of the mutual funds attracts you
most?
Pearson Correlation .050
N 36

23
When you invest in
Mutual Funds which
mode of investmentwill
you prefer?
Pearson
Correlation
.082
N 37
In which type of mutual
fund schemes have
you invested?
Pearson
Correlation
.b
N 21
How would you like to
receive the returns
every year?
Pearson
Correlation
.566**
N 35
3. Regression Analysis –
Fromthe regression analysis, thesignificancelevel of the variables was found
fromhighest to lowest as:-
prefer?
2. Which feature of the mutual funds attracts you most?
3. While investing your money, which factor do you prefer the most?
4. How would you like to receive the returns every year?
 Gender was also found to be relevant.
Model Summary
Model R R Square
Adjusted R
Square
Std. Error of the
Estimate
1 .916a
.753 .719 .35891
a. Predictors:(Constant),How would you like to receive the returns
every year?, While investing your money, which factor do you prefer the
most.,Which feature of the mutual funds attract you most?,When you
invest in Mutual Funds which mode ofinvestmentwill you prefer?,
Gender

24
ANOVAa
Model Sum of Squares Df Mean Square F Sig.
1 Regression 3.526 5 .705 5.474 .001b
Residual 3.349 26 .129
Total 6.875 31
a. DependentVariable:Have you ever invested your moneyin mutual fund?
b. Predictors:(Constant),How would you like to receive the returns every year?, While investing
your money, which factor do you prefer the most.,Which feature of the mutual funds attractyou
most?,When you investin Mutual Funds which mode ofinvestmentwill you prefer?, Gender
Coefficientsa
Model
Unstandardized Coefficients
Standardized
Coefficients
t Sig.B Std. Error Beta
1 (Constant) -.290 .461 -.629 .535
Gender .122 .167 .118 .731 .471
While investing your money,
which factor do you prefer
the most.
.117 .098 .176 1.194 .243
Which feature of the mutual
funds attract you most?
.088 .075 .189 1.176 .250
When you invest in Mutual
Funds which mode of
investmentwill you prefer?
-.119 .116 -.153 -1.019 .318
How would you like to
receive the returns every
year?
.344 .075 .679 4.572 .000
a. DependentVariable:Have you ever invested your moneyin mutual fund?

25
4. Multiple ResponseAnalysis-
There was multiple choice questions in the questionnaire set as to find the
perception of the mutual fund investors and areas where they have actually
invested.
Hence the questions enlightened us about the –
1. Kind of investment
(a) Saving account (b) Fixed deposits (c) Insurance(d) MutualFund (e) Post
Office-NSC,etc (f) Shares/Debentures (g) Gold/ Silver (h) Real Estate (I) PPF
(j)PF
2. Mutual Fund Scheme
(a) Open-ended (b) Close-ended (c) Liquid fund (d) Mid- Cap (e) Growth fund
(f)Regular Incomefund (g) Long-Cap (h) Sector fund
3. Mutual Fund
(a) SBIMF (b) UTI (c) HDFC (d) Reliance (e) ICICI prudentialfunds (f) JMmutual
fund (g) Other
4. Asset Management Company
(a) SBIMF (b) UTI (c) Reliance (d) HDFC (e) Kotak (f) ICICI (g) JMfinance
5. Mutual fund sector
(a) General 1st(b) Oil and petroleum (c) Gold fund (d) Diversified equity fund
(e) Power sector (f) Debt fund (g) Banking fund (h) Real estate fund
6. Importantparameters
(a) Returns (b) Lower Risk Factor (c) Credit Rating (d) Inflation (e) Company (f)
Lock in Period
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
$KOIa
40 100.0% 0 0.0% 40 100.0%
$MFSchemea
21 52.5% 19 47.5% 40 100.0%

26
$MFa
20 50.0% 20 50.0% 40 100.0%
$AMCa
34 85.0% 6 15.0% 40 100.0%
$MFSectora
22 55.0% 18 45.0% 40 100.0%
$IPa
37 92.5% 3 7.5% 40 100.0%
a. Dichotomygroup tabulated at value 1.
$KOI Frequencies
Responses
Percent of
CasesN Percent
What kind of investments you
prefer ?a
Kind of Investment
Saving account
20 18.0% 50.0%
Kind of Investment
Fixed deposits
20 18.0% 50.0%
Kind of Investment
Insurance
10 9.0% 25.0%
Kind of Investment
Mutual Fund
22 19.8% 55.0%
Kind of Investment
PostOffice-NSC,etc
3 2.7% 7.5%
Kind of Investment
Shares/Debentures
16 14.4% 40.0%
Kind of Investment
Gold/ Silver
11 9.9% 27.5%
Kind of Investment
Real Estate
9 8.1% 22.5%
Total 111 100.0% 277.5%
$MFScheme Frequencies
Responses
Percent of
CasesN Percent
Which mutual fund scheme
have you used? a
Mutual fund scheme
Open-ended
10 14.5% 47.6%

27
Mutual fund scheme
Close-ended
3 4.3% 14.3%
Mutual fund scheme
Liquid fund
11 15.9% 52.4%
Mutual fund scheme
Mid- Cap
13 18.8% 61.9%
Mutual fund scheme
Growth fund
17 24.6% 81.0%
Mutual fund scheme
Regular Income fund
4 5.8% 19.0%
Mutual fund scheme
Long-Cap
6 8.7% 28.6%
Mutual fund scheme
Sector fund
5 7.2% 23.8%
Total 69 100.0% 328.6%
$MF Frequencies
Responses
Percent of
CasesN Percent
In which Mutual Fund you
have invested? a
Mutual Fund
SBIMF
8 15.1% 40.0%
Mutual Fund
UTI
10 18.9% 50.0%
Mutual Fund
HDFC
8 15.1% 40.0%
Mutual Fund
Reliance
7 13.2% 35.0%
Mutual Fund
ICICI
prudential
funds
11 20.8% 55.0%
Mutual Fund
JM mutual
fund
2 3.8% 10.0%

28
Mutual Fund
Other
7 13.2% 35.0%
Total 53 100.0% 265.0%
$AMC Frequencies
Responses
Percent of
CasesN Percent
Which AssetManagement
Companywill youa
AssetManagement
Company
SBIMF
19 23.5% 55.9%
AssetManagement
Company
UTI
11 13.6% 32.4%
AssetManagement
Company
Reliance
9 11.1% 26.5%
AssetManagement
Company
HDFC
12 14.8% 35.3%
AssetManagement
Company
Kotak
12 14.8% 35.3%
AssetManagement
Company
ICICI
14 17.3% 41.2%
AssetManagement
Company
JM finance
4 4.9% 11.8%
Total 81 100.0% 238.2%
$MFSector Frequencies
Responses
Percent of
CasesN Percent
Which sector are you
investing in mutuala
Mutual Fund Sector
General 1st
3 7.1% 13.6%
Mutual Fund Sector
Oil and petroleum
3 7.1% 13.6%

29
Mutual Fund Sector
Gold fund
2 4.8% 9.1%
Mutual Fund Sector
Diversified equity fund
16 38.1% 72.7%
Mutual Fund Sector
Debt fund
7 16.7% 31.8%
Mutual Fund Sector
Banking fund
8 19.0% 36.4%
Mutual Fund Sector
Real estate fund
3 7.1% 13.6%
Total 42 100.0% 190.9%
$IP Frequencies
Responses
Percent of
CasesN Percent
What do you consider the
mostimp.paraa
ImportantParameter
Returns
32 40.5% 86.5%
ImportantParameter
Lower Risk Factor
14 17.7% 37.8%
ImportantParameter
CreditRating
10 12.7% 27.0%
ImportantParameter
Inflation
8 10.1% 21.6%
ImportantParameter
Company
10 12.7% 27.0%
ImportantParameter
Lock in Period
5 6.3% 13.5%
Total 79 100.0% 213.5%

30
5. Results
5.1 Correlation analysis –
Itwas found the people who invested in the mutual funds had a high level of
correlation significancewith –
1. Gender (p-value= .210)
2. While investing your money, which factor do you prefer the most. (p-
value = .250)
3. Which feature of the mutual funds attracts you most? (p-value= .050)
prefer? (p-value= .082)
5. How would you like to receive the returns every year? (p-value = .566)
Whereas they did not correlate significantly with –
1. Where do you find yourself as a mutual fund investor?
2. In which kind of mutual you would like to invest?
3. How did you come to know about Mutual Fund?
4. Why didn’t you invest in Mutual Fund?
5. In which type of mutual fund schemes haveyou invested?
5.2 Regression analysis –
1. Gender is relevant while making investment in mutual funds
a) H0: Males invests more in Mutual Funds than females - ACCEPTED
b) H1: Males do not invest more in Mutual funds than females - REJECTED
2. Factor that is most preferred as the reason of investment in mutual funds
a) H0: High return is the most preferred reason - ACCEPTED

31
b) H1: High return is not the most preferred reason - REJECTED
3. Kind i.e. Public or Private mutual funds arerelevant.
a) H0: People investmore in private mutual funds than public mutual funds
- REJECTED
b) H1: People do not investmore in private mutual funds than public
mutual funds - ACCEPTED
4. Feature that attracts the most customers
a) H0: Better return and safety is the most attractive feature of mutual
funds - ACCEPTED
b) H1: Better return and safety is not the most attractive feature of mutual
funds - REJECTED
5. Mode of investment of mutual funds
a) H0: People prefer SIP as a mode of investment for mutual funds -
ACCEPTED
b) H1: People do not prefer SIP as a mode of investment for mutual funds -
REJECTED
6. Type of mutual fund schemes – Debt schemes and Equity based schemes
a) H0: People prefer equity based schemes over debt based schemes -
REJECTED
b) H1: People do not prefer equity based schemes over debt based scheme
- ACCEPTED
7. Returns of mutual funds
a) H0: Growth in NAV is the most preferred return from mutual funds -
ACCEPTED
b) H1: Growth in NAV is not the mostpreferred return from mutual funds –
REJECTED

32
5.3 Multi responseanalysis –
1. Kind of investment –
Mutual Fund > Saving Account = Fixed Account > Shares and Debentures >
Gold/Silver > Insurance>Real Estate >Post OfficeNsc etc.
2. Mutual Fund Scheme –
Growth Fund > Mid-Cap > Liquid-fund > Open-ended > Regular income fund >
Close-ended
3. Mutual Fund –
ICICI Prudentialfunds >UTI > SBI = HDFC > JM mutual fund
4. Asset Management Company –
SBI > ICICI >HDFC = Kotak > UTI > Reliance > JM Finance
5. Mutual fund sector –
Diversified equity fund > Banking fund > Debt fund > Real Estate = General 1st
= Oil and Petroleum > Gold fund
6. ImportantParameters –
Returns > Low risk Factor > Credit Rating = Company > Inflation > Lock in Period

33
6. Conclusions
1. Males invest morein Mutual Funds than females.
2. High return is the mostpreferred reason for the people investing in
mutual funds.
3. Better return and safety is the mostattractive feature of mutual funds.
4. People prefer SIP as a mode of investment for mutual funds.
5. Growth in NAV is the most preferred mode of return for mutual funds.
6. People invest in mutual funds morethan shares/debentures and real
estate
7. Growth fund is the better mutual fund scheme than mid-cap and liquid
fund.
8. ICICI prudentialfunds arethe mostcommonly known mutual fund.
9. SBI is the most trusted assetmanagement company.
10. Diversified equity fund was selected by the people as the better mutual
fund sector.
11. Returns seemed to be the mostimportant parameter for the people
investing in mutual funds.

34
Suggestions
• Oneshould diversify the investments between a few funds (the actual
number depends entirely on the amountof investment). This strategy ensures
that the portfolio is not dependent on the performanceof one single fund.
However, oneneeds to avoid over-diversification as that would achieve
nothing.
• Investor can also plan like one mutual fund of diversified equity plan, second
mutual fund of balanced type and third one you can plan of debt type etc. In
this manner the money will get diversified, risk is reduced and the investor will
get excellent profit. For Example: Rs 20,000 per month, it would be wise to opt
for a maximum of three funds. Consider well rated large-cap funds, midcap
funds and a balanced fund. The latter would providethe debt component and
reduce the portfolio's downsiderisk.
• Don'tjustjudge a fund by its NAV only.
• Never judge a fund on the basis of its NAV. Alsohavea look at the Standard
Deviation, Sharperatio, Treynor Ratio, Beta, Correlation, P/E Ratio, P/B Ratio
and Expense Ratio & also its performance in the bear and the bull phase, and
then invest in it. Only judging a fund by its NAV, is irrelevant while selecting the
fund as it is the percentage gain or loss that matters.
• Also look for past returns, dividend etc. the mutual fund has declared. If the
investor has chosen equity or stock market related mutual fund, then he may
go for SIP (Systematic InvestmentPlan) method. A risk adverseinvestor should
avoid investing in theSectoral funds.
• AMC's use NFOs to create excitement and push their funds. Theseschemes
are launched becausethey are easy avenues to capture management fees and
increase the fund house's assetbase. These schemes are usually justclones of
existing schemes, but with new peppy names flaunted to attract investors.
• Itis importantfor investors to understand that NFOs are merely marketing
devices. There are a number of existing funds that have proved their mettle
and investors should optfor them because they havea track record.

35
References
1) https://www.researchgate.net/publication/270512559_Performance_Evalu
ation_of_Mutual_funds_in_India_-
_A_Comparative_Study_of_Public_and_Private_Sector_Mutual_Funds
2) http://dx.doi.org/10.15242/ICEHM.ED1014025
3) http://indianresearchjournals.com/pdf/IJMFSMR/2012/July/6.pdf
4) http://www.amfiindia.com
5) http://www.sebi.gov.in
6) http://www.mutualfundsindia.com
7) www.mutualfundindia.com
8) www.amfiindia.com
9) www.bseindia.com
10) www.sebi.org
11) www.businessstandard.com
12) www.rbi.org.com

Perception Of People Regarding Mutual Funds In India

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Similar to Perception Of People Regarding Mutual Funds In India

Similar to Perception Of People Regarding Mutual Funds In India (20)

Recently uploaded

Recently uploaded (20)

Perception Of People Regarding Mutual Funds In India