Professional Documents
Culture Documents
Name
Company
Designation
Contact No.
JAY VYAS
[ ] Yes [ ] No
2. Which are the investment tools your company invests in? [ ] Bank Fixed Deposit [ ] RBI Bonds [ ] Mutual Funds [ ] Equities [ ] others (Please specify) 3. Your company primarily invest for (Rank according to your preference) [ ] Tax Benefits [ ] Returns [ ] Liquidity [ ] Savings [ ] Any other (Please specify) 4. Rank the investments options according to your company's preference of investment [ ] Bank Fixed Deposit [ ] RBI Bonds [ ] Mutual Funds [ ] Equities . [ ] Any other (Please specify) 5. What is the frequency of your company's investments? [ ] Once in 15 Days [ ] Once in 3 Months [ ] Once a Month [ ] Once in 6 Months [ ] Once a Year [ ] Weekend Parking 6. What is average tenure of investment? Short-Term Long-Term 7. What is expected rate of return of your company from debt investments? [ ] 4%-5% [ ] 5% -6% [ ] 6%-7% [ ] >7% 8. What is expected rate of return of your company from equity investments? [ ] 5%-10% [ ] 10%-15% [ ] 15%-20% [ ] >20% 9. Does your company invest in Mutual Funds? [ ] Yes [ ] No 10. If the answer to question 9 is "Yes" a. Are you aware of the various schemes offered by Mutual Funds? [ ] Yes [ ] No [ ] Few b. Do you know that Mutual Funds offers Liquidity to your funds? [ ] Yes [ ] No [ ] Not Sure
c. Do you know that Mutual Funds offers steady returns? [ ] Yes [ ] No [ ] Not Sure d. Do you know that you can get Tax Advantages by investing in Mutual Funds? [ ] Yes [ ] No [ ] Not Sure e. On whose external advice do you invest? [ ] Bank [ ] Distributor [ ] Agents [ ] Direct investments
[ ] C.A.
f. Mutual Fund investment is what % of your company's total investment portfolio? g. Which types of Mutual Fund does your company invest in? [ ] Debt [ ] Equities [ ] Balanced Your company invests in Debt Mutual Fund because it offers, [ ] Steady Returns [ ] Liquidity [ ] Tax Benefits [ ] Less risk [ ] Any other (Please specify)
h.
i.
Your company invests in Equities Mutual Funds because it offers, [ ] Higher Returns [ ] Long Term Capital Gains [ ] Return > Inflation [ ] Wealth Creation [ ] Tax Advantage [ ] Any other (Please specify) j. Your company invests in Balanced Mutual Funds because it offers, [ ] Higher Returns than debt funds [ ] Return > Inflation Advantage [ ] Any other (Please specify) 11. a. i. ii. iii. iv. v. b. i. If the answer to question 9 is "No" Your company does not invest in Mutual Fund because of Bitter past experience [ ] Yes [ ] No [ ] May be Lack of Knowledge [ ] Yes [ ] No [ ] Maybe Lack of confidence in service being provided [ ] Yes [ ] No [ ] Maybe Difficulty in selection of schemes [ ] Yes [ ] No [ ] Maybe In-efficient investment advisors [ ] Yes [ ] No [ ] May be Would you invest in Mutual Funds for your company if it offered Greater Tax Benefits V/S others. 1 2 3
[ ] Tax
Strongly Disagree
ii.
Disagree Neutral
Agree
4 Agree
Strongly Agree
5 Strongly Agree 5 Strongly Agree
Investment for a shorter duration, even for one day. 1 2 3 4 Strongly Disagree Disagree Neutral Agree
iv.
3 Neutral
4 Agree
5 Strongly Agree
Net returns better than a Bank Fixed Deposit with high liquidity. 1 2 3 4 5 Strongly Disagree Disagree Neutral Agree Strongly Agree Diversification of portfolio. 1 2 Strongly Disagree Disagree
vi.
3 Neutral
4 Agree
5 Strongly Agree
vii.
3 Neutral
4 Agree
Strongly Agree
12. Are you aware that current account surpluses can also earn interest by parking in Mutual Funds even for one day? [ ] Yes [ ] No [ ] Maybe 13. If Mutual Fund offer you Steady Returns, Tax Benefits, Liquidity, Diversification of Portfolio, Lesser Risk would consider it as an investment option in the future for your company? [ ] Yes [ ] No [ ] May be
14. Would you be interested to know more about Mutual Funds? [ ] Yes [ ] No.
Analysis of Study
HOW MANY PEOPLE INVESTS?
This is very important to know that how many people do investments among all respondents. Some people not in position to do investment because of some reason, like they re-invest in their own unit, working on expansion plans, or they do not have enough surpluses for investment.
Table showing how many people invests No. of respondents Invest Does not Invest Total 158 52 210 Percentage 75.24 24.76 100
The following pie chart shows the pictorial view of the above statistical data:
Invset 75%
Here we can find that, maximum No. of respondents do investments (Approx 75%). Department of Management Studies. Administrative Management College. 5
And the people who do not invest have some reason. Lets see what the reasons for what they do not invest are.
Table showing why people do not invest? Reasons Working on Expansion Plan Re-invest in their own unit Do not have enough 20 38.46 16 30.77 No of Respondents 16 % Of the Respondents 30.77
The following pie chart shows the pictorial view of the above statistical data: Chart showing why People do not invests? Department of Management Studies. Administrative Management College. 6
From the above figure, we can say that 30.77% of the respondents are working on expansion plans. From the above figure, we can say that 30.77% of the respondents are reinvesting their surpluses in their own unit. From the above figure, we can say that 38.46% of the respondents do not have enough surplus to make an investment/
Investment Tool
% of Investors1
123
31.62
77.85
76
19.54
48.10
Mutual Fund
40
10.28
25.32
Equities Other3
118
30.33
74.68
32
08.23
20.25
Here we calculate % on the basis of total i.e. total of investor who invest in different tool eg. Bank FD has 123 investors so we calculate % 123/389. 2 Here we have 158 respondents who invest at present. 3 Consist of LIC, other insurance, Post saving schemes etc .
The following pie chart shows the pictorial view of the above statistical data: Chart showing Share of different Investment tools
Majority of the respondents invest their money in Bank Fixed Deposits. Following Bank Fixed Deposits 2nd is Equities in which people prefer to invest. RBI Bonds has average part in total. Small No. of investors invests in Mutual fund.
Here I used ranking for different factors. Respondent asked to give rank as per his/her choice i.e. 1st rank to which factor he/she consider most important and like this go further in ranking.
Rank given
Factor considered for investment Tax Benefit Return Liquidity Saving 68 66 14 10 68 30 29 31 22 50 30 50 0 12 70 61
The following chart shows the pictorial view of the above statistical data: Chart showing Factors Considered by the Investor for Investment
61 4 0 3 22 31 29 30 10 1 0 Rank 2 14 20 12 50 50
70
30
68
66 68 40 No. of Respondents 60 80
More of the people consider tax benefit as most important criteria for investment. As we can see that 68 people has ranked it as 1st and another 68 ranked it as 2nd. People while making an investment also take return into account. But return has relatively less important as compared to Tax Benefit. A SME person is also considered about liquidity. But here we see that liquidity is not given more importance. Department of Management Studies. Administrative Management College. 10
Ranks
1 2
36 35 6 59
3
18 54 28 21
4
12 12 56 6
5
0 2 2 2
81 15 4 52
The following chart shows the pictorial view of the above statistical data: Chart showing ranking for investments options
5 0 4 2 2 2
Equities
6 12 12 21 3 18 2 6 28
Mutual Funds
56
Rank
54 59 35 36 52
1 0
15 20 40 60 80
81 100
No. of Respondents
Table showing how many Investors Invests in Mutual Fund Invests in Mutual Fund? Yes No 42 116 No. Of Investors % Of Respondents Knowing the Scheme 26.58 73.42
The following pie chart shows the pictorial view of the above statistical data: Chart showing how many Investors Invests in Mutual Fund.
Yes 27%
No 73%
I asked to investors about the reasons for not investing in Mutual Fund. I given them some reason and asked them to give their opinion about those reasons. Following table shows us data related to this. There are 258 respondents because a person has more than one reason for not to invest in Mutual Fund.
Table showing reasons for not investing in Mutual Funds. Reasons No. of Respondent Bitter Past Experience Lack of Knowledge Lack of Confidence Difficult Scheme Selection In-efficient Adviser Total 02 98 70 45 43 258 00.78 37.98 27.13 17.44 16.67 100 % of Respondent
The following pie chart shows the pictorial view of the above statistical data:
27%
Lack of Confidence
Mostly people not investing in Mutual Funds because of lake of knowledge (37.98%) and lack of confidence (27.13%). Some investors have difficulty in selection of schemes. Some of them are not getting proper guidance from their advisers. Few no. of investors has bitter past experience so they decided that they do not invest in Mutual Funds in future.
The following pie chart shows the pictorial view of the above statistical data: Chart showing awareness of Different Schemes of Mutual Funds
33.33
61.91 4.76
Yes
No
Few
Majority of the respondents were aware of few Mutual Fund Schemes (61.91%). But there are respondents who know all schemes of Mutual Funds (33.33%).
Table showing will Mutual Fund be an Investment option for Investors in future?
Opinion of respondents Disagree Neither Disagree nor Agree Agree Highly Agree
Greater Tax Benefits Greater Liquidity Investment for Shorter Duration (for 1 day) Steady Returns Net Return > Bank FD Diversification of Portfolio Minimization of Risk
00 00 00
06 06 11
40 41 67
68 63 32
02 06 06
00 02
02 08
35 49
59 51
20 06
00
03
16
62
35
00
00
16
51
49
The following chart shows the pictorial view of the above statistical data:
Chart showing will Mutual Fund be an Investment option for Investors in future?
80 70 60 50 40 30 20 10 0 Highly Disagree Disagree Neither Disagree nor Agree Agree Highly Agree
Greater Tax Benefits Investment-Shorter Duration Net Return > Bank FD Minimisation of Risk
RESEARCH METHODOLOGY
MAIN OBJECTIVE To study Investment pattern of general public in Mutual Funds. SUB OBJECTIVES
To find out in which investment tool people invests most. To study the general investment criteria of people. To find out the awareness of Mutual Funds and its various schemes. To study the interest of people for further investment in Mutual Funds.
RESEARCH DESIGN
A research design is the master plan or model for the conduct of formal investigation and survey. It is a specification of methods and procedures for acquiring the information needs for solving the problem. It decides the source of information and methods for gathering the data. A questionnaire and other forms are tested to use the collection of data. A sampling design is to be selected. Good research design ensures that the information obtained is relevant to the research question and that it was collected by objectives. Since research design is simply the framework of plan for a study, it should be used as a guide in collecting and analyzing the data. It is a blueprint that is followed in completing the research study. Our approach to research is descriptive. The major objective of the descriptive research is to describe something usually market features or functions. It requires a clear specification of the who, what, when, where, why, & the way (the 6 Ws) of the research. Our 6 Ws are:
should
the
information
be
obtained
from
the
First of all direct approach to respondent and if they are busy then take appointment.
d) Where: Where should the respondents be contacted to obtain the required information?
1. At the business place of the respondent. 2. At the residence of the respondent.
f) Way: In what way we are going to obtain the information from the respondents?
Personal Interview Method.
SAMPLING
Sample size-210 Elements- General Public. Sampling Units- Business place. Extent- Bangalore City Research Instrument-Questionnaire Department of Management Studies. Administrative Management College. 19
RESPONSE RATE
The response rate was average. As we had a questionnaire asking for the financial information of the respondent, most of the people hesitated to provide the required information. Also the questionnaire contained some financial terms that were technical in nature, which resulted into reduced response rate. I have visited nearly 280 potential respondents, out of which only 200 gave proper response. Hence, Response Rate = 200/280 = 71.43%