A

Study On

Investors Behavior Towards Mutual Funds in Surat City

Submitted By:
Chhabra Asmita Atul
Roll Number: 105
Specialization: Finance

Under The Guidance of:

Mr. Krunal Soni

Submitted To:
SDJ International College

Affiliated To:
Veer Narmad South Gujarat University, Surat
2018-19
CHAPTER-1 INTRODUCTION
1.1 INTRODUCTION

There are various avenues of investment in accordance with individual preferences.

Investments are made in different asset classes depending on individual’s risk and
return characteristics.

The concept of mutual fund emerged in Netherlands in 18th century and introduced
in India by Unit Trust of India in 1960s. As the mutual fund industry provides an
option of diversified investment structure with varying degree of risk, it was
supposed to be the most lucrative market for Indian investors. It was believed that
it will surely tap the savings of common man.

But in practice it failed to become a primary choice for investment to Indian

investor. During almost six decades (1965-2011) the value of assets under
management of mutual fund industry experienced great swings.

Mutual funds explain their investment style, strategy, philosophy in an objective

statement, which is distilled into a fund objective category such as growth, income
etc. investors, popular press, academics alike use these objectives as a basis of
comparison among funds. Fund objectives are used by investors as a basis of
comparison among funds. Fund objectives are used by investors to assess their
investing style and relative risk. When choosing mutual funds, investors first
delineate the specific objectives that suit their needs, and then choose fund(s) that
meet the desired objectives.

Indian mutual funds for the last 5 years have been increasingly attracting
investments from institutional as well as individual investors with the current total
AUM of about Rs. 17 Lakh Crores.

Mutual fund is presently growing industry in India. Mutual funds have their
weakness and may not be for everyone. No investment is risk free. If the entire
stock market declines in value, the value of mutual fund shares will go down as
well, no matter how balanced the portfolio is. Low risk preferred people only invest
in mutual funds especially balanced funds and money market funds than when they
buy and sell stocks on their own.

Essential structures of mutual funds include open-ended funds, close-ended funds

and unit venture trusts. Exchange-Traded Funds (ETFs) are open-ended funds that
trade on a listed exchange. Mutual funds are likewise characterized by their asset
classes as :

Money market funds

Bond or Fixed income funds
Stock or Equity funds
Hybrid funds (a mixture of debt and equity)
Other funds – Funds may invest in other investments or commodities like
arbitrage funds, pre IPO funds, gold ETFs, real estate funds, etc.

1.2 What is a Mutual Fund?

A mutual fund is a professionally overseen investment avenue that pools cash from
numerous financial specialists to buy securities such as stocks, bonds, money
market instruments and other assets. The essential preferences of mutual funds are
that they give a larger amount of liquidity, they provide with diversification, and
they are overseen by proficient investors. On the down-side, investors in a mutual
fund must pay various charges and costs.

Mutual funds are operated by professional money managers, who allocate the
fund's investments and attempt to produce capital gains and/or income for the
fund's investors. A mutual fund's portfolio is structured and maintained to match
the investment objectives stated in its prospectus.
1.3 Advantages of Mutual Funds:

1. Liquidity

Unless you opt for close-ended mutual funds, it is relatively easier to buy and
exit a scheme. You can sell your units at any point (when the market is high).

2. Diversification

Mutual funds have their own share of risks as their performance is based on the
market movement. Hence, the fund manager always invests in more than one
asset class (equities, debts, money market instruments etc.) to spread the risks.
It is called diversification. This way, when one asset class doesn’t perform, the
other can compensate with higher returns to avoid the loss for investors.

3. Expert Management
Mutual fund is favored because it doesn’t require the investors to do the
research and fund allocation. An asset manager takes care of it all and makes
decisions on what to do with your investment. He decides whether to invest in
equities or debts or to hold them and for how long.

4. Less cost for bulk transactions

You must have noticed how price drops with increased volume, when you buy
any product. For instance, if a 100g toothpaste costs Rs. 10, you might get a
500g pack for, say, Rs. 40. The same logic applies to mutual fund units as well.
If you buy multiple units at a time, the processing fees and other commission
charges will be less compared to when you buy one unit.

5. Invest in smaller denominations

By investing in smaller denominations (SIP), you get exposure to the entire

stock (or any other asset class). This reduces the average transactional expenses
– you benefit from the market lows and highs. Regular (monthly or quarterly)
investments as opposed to lump sum investments give you the benefit of rupee-
cost averaging.

6. Suit your financial goals

There are several types of mutual funds available in India catering to investors
from all walks of life. No matter what your income is, you must make it a habit
to set aside some amount (however small) towards investments. It is easy to
find a mutual fund that matches your income, expenditures, investment goals
and risk appetite.
7. Cost-efficiency

You have the option to pick zero-load mutual funds with less expense ratios.
You can check the expense ratio of different mutual funds and choose one that
fits in your budget and financial goals. Expense ratios is the fee for managing
your fund. It is a useful tool to assess a mutual fund’s performance.

8. Quick & painless process

You can start with one mutual fund and slowly diversify. These days it is easier
to identify and handpick fund(s) most suitable for you. Maintaining and
regulating the funds too will take no extra effort from your side. The fund
manager with the help of his team of will decide when, where and how to invest.
In short, their job is to consistently beat the benchmark and deliver you
maximum returns.

9. Automated payments

It is common to forget or delay SIPs or prompt lump sum investments due to

any given reason. You can opt for paperless automation with your fund house
or agent. Timely email and SMS notifications help to counter this kind of
negligence.

10. Safety

Fund houses are strictly under the purview of statutory government bodies
like SEBI and AMFI. One can easily verify the credentials of the fund house
and the asset manager from SEBI. They also have an impartial grievance redress
platform that work in the interest of investors.
1.4 Disadvantages of Mutual Funds

1. Cost

One downside to mutual funds is that they have a high cost associated with them
in relation to the returns they produce. Depending on the fund, commission
charges can be significant.

2. Unpredictable

Although expected returns will be quoted, it is impossible to find a mutual fund

with a guaranteed return. This is because all assets carry some degree of risk.
However, some mutual funds will carry a higher level of risk than others
depending on how well it is diversified.

3. No Control Over Portfolio

If you invest in a fund, you give up all control of your portfolio to the mutual
fund money managers who run it.

4. Cost of Management of Mutual Funds

The salary of the market analysts and fund manager basically comes from the
investors. Total fund management charge is one of the main parameters to
consider when choosing a mutual fund. Greater management fees do not
guarantee better fund performance.

5. No Guarantee

Mutual funds do not offer fixed guaranteed returns in that so investor has to be
prepared for any eventuality including depreciation in the value of the mutual
fund.
1.4 FOUR MAJOR TYPES OF FUNDS (BASED ON ASSET
CLASS)

MONEY MARKET FUNDS

Money market funds put the resources into money market instruments that have
high credit quality or a low default risk, and give a fixed income. People generally
invest in money market funds as an alternative for bank savings accounts.

In India, money market funds sold to individual investors and those investing in
government securities may fetch a stable and fixed return of an upwards of 6
percent post-tax. There are some other funds that invest into similar avenues but for
longer time periods called as – Ultra Short Term Debt Funds.

The Money Market includes certificates of deposit, repos, treasury bills, call money
to commercial paper, forward rate agreements and most recently interest rate swaps.

BOND FUNDS

Bond funds invest in debt or fixed income securities. Bond funds can be sub-
classified according to:

 The of bonds in the portfolio (i.e. investment-grade corporate bonds, high-

yield or junk bonds, municipal bonds or government bonds)

 The maturity period – short, intermediate or long-term)

 Based on the Country

 And depending on the taxability.

Debt is one of the largest source of FIIs and FPIs in India.

STOCK FUNDS

These are Equity Funds that invest in the shares of government, private or public
companies. Equity funds may concentrate on a specific area of the stock market,
such as

 Investing in a certain industry

 Investing in a specified country or region

 Investing in companies experiencing strong growth

 Investing when the portfolio managers deem to be a good value relative to

the value of the company’s business

 Investing in shares fetching high dividends that provide income

 Investing in companies within a certain market capitalization range

India has two major Stock Exchanges – NSE and the BSE.

HYBRID FUNDS

Hybrid funds invest in both Equity and debt instruments. Balanced funds, target
date or target risk fund, asset allocation funds, and lifecycle or lifestyle funds are
all types of hybrid funds.

Hybrid funds may be depicted as funds of funds, implying that they invest by
putting money into other mutual funds that invest in securities. A lot of funds of
funds invest in affiliated funds (i.e. mutual funds managed by the same fund house),
although some put money in unaffiliated funds (managed by other fund houses) or
some combination of the two.
OTHER FUNDS

Funds may invest in other investments or commodities like Arbitrage funds, Pre-
IPO funds, Gold ETFs, Real Estate Funds, Etc.

1.5 THE MAGIC OF SIP, STP AND SWP

Systematic investment plan (SIP), systematic transfer plan (STP) and systematic
withdrawal plan (SWP) are methods of systematic investing and withdrawal. They
serve different purposes, as discussed below

Systematic investment plan (SIP)

An SIP allows you to invest small amounts of money over time to build a corpus.
By spreading out investments over a period of time, they help investors average
their purchase cost. This prevents you from committing all your money at a market
peak and hence maximizes returns. SIPs also bring discipline to investing and make
investing a habit.

The frequency of SIPs can vary; you can do a monthly, weekly or daily SIP. Also,
there are various ‘types’ of SIPs. For instance, a value SIP changes your SIP amount
as per the expensiveness of the market. Though this option sounds good, tinkering
with the basic idea of SIPs only makes it complex. You are better off sticking to an
ordinary SIP, preferably on a monthly basis.

SIPs have limited use in debt schemes as they are not as volatile or risky as equity
schemes.

Systematic transfer plan (STP)

Generally, one starts with an STP when there is a lump sum to invest. An STP helps
spread investments over a period of time to average the purchase cost and rule out
the risk of getting into the market at its peak. With an STP, an investor can invest
a lump sum in one scheme (mostly a debt scheme) and transfer a fixed amount
regularly to another scheme (mostly an equity scheme).
The basic idea behind an STP is to earn a little extra on the lump sum while it is
being deployed in equity. Debt funds excel over the normal savings bank account.

Depending on the lump-sum amount, the investor can decide the period over which
he wants to deploy the money in the market. Typically, the larger the amount, the
longer the time period.

An STP can be done from an equity fund to a debt fund as well. If you are saving
for some important goal, like your child’s education, buying a home or retirement
and you are nearing your goal, don’t wait till the target date. Begin moving your
money from equity to debt well before the time when you need the money.

Systematic withdrawal plan (SWP)

An SWP allows you to withdraw a designated sum of money from a fund at regular
intervals. Such a system is particularly suited to retirees, who are looking for a fixed
flow of income.

SWPs provide the investor a certain level of protection from market instability and
help avoid timing the market.

Major Mutual Fund Houses in India

1. HDFC Asset Management Company

2. ICICI Prudential Asset Management Company
3. Reliance Asset Management Company
4. Birla Sun Life Asset Management Company
5. SBI Asset Management Company
6. UTI Asset Management Company
7. Franklin Templeton Asset Management Company
8. Kotak Mahindra Asset Management Company
9. IDFC Asset Management Company
10. DSP BlackRock Asset Management Company
11. Axis Asset Management Company
12. Tata Asset Management Company
13. DHFL Pramerica Asset Management Company
14. L&T Asset Management Company
15. Sundaram Asset Management Company
16. Religare Global Asset Management Company
17. JM Financial Asset Management
CHAPTER 2- LITERATURE REVIEW
2.1 Literature Review

(Singh, 2011) , “A study on investor’s attitude towards mutual funds as an

investment option” his study shows that most of respondents are still confused
about the mutual funds and have not formed any attitude towards the mutual funds
for investment purpose. It has been observed that most of the respondents having
lack of awareness about the various function of mutual funds. Moreover, as far as
the demographic factors are concerned, gender, income and level of education have
significantly influenced the investors attitude towards mutual funds. On the other
hand the other two demographic factors like age and occupation have not been
found influencing the attitude of investors towards mutual funds. Return potential
and liquidity have been perceived to be most attractive by the investors.

(LENARD ET., 2003), “He empirically investigated investor’s attitude towards

mutual funds”. The results indicate that the decision to switch funds within a fund
family is affected by investor’s attitude towards risk, current asset allocation,
investment losses, investment mix, capital base of the fund age, initial fund
performance, fund and portfolio diversification. The study reported that these
factors are crucial to be considered before switching funds regardless of whether
they invest in non-employer plans or in both employer and non-employer plans.

(POOL, 2006) in a sample of socially screened equity mutual funds and compared
the relation between annual fund flows and lagged performance in SR funds to the
same relation in a matched sample of conventional funds. The result revealed that
the extra-financial SR attribute serves to dampen the rate at which SR investors
trade mutual funds. The study noted that the differences between SR funds and their
conventional counterparts are robust over time and persist as funds age. The study
found that the preferences of SR investors may be represented by conditional multi
attribute utility function (especially when SR funds deliver positive returns). The
study remarked that mutual fund companies can expect SR Investors to be more
loyal than investors in ordinary funds.
(N Walia, 2009),This was a study regarding investor's risk and return perception
towards mutual funds. The study examined investor’s perception towards risk
involved in mutual funds, return from mutual funds in comparison to other financial
avenues, transparency and disclosure practices. The study investigated problems of
investors encountered with due to unprofessional services of mutual funds. The
study found that majority of individual investors doesn’t consider mutual funds as
highly risky investment. In fact on a ranking scale it is considered to be on higher
side when compared with other financial avenues. The study also reported that
significant relationship of interdependence exists between income level of investors
and their perception for investment returns from mutual funds investment.

(SAINI, 2011) “He analyzed investor’s behavior, investor’s opinion and perception
relating to various issues like type of mutual fund scheme” , its objective, role of
financial advisors/ brokers, sources of information, deficiencies in the provision of
services, investor's opinion relating yo factors that attract them to invest in mutual
and challenges before the Indian mutual fund industry etc. The study found that
investors seek for liquidity, simplicity in offer documents, online trading, regular
updates through SMS and stringent follow up of provisions laid by AMFI.

(SHAH, 2012), He analyzed that 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 provide hedge
against inflation and often have negative real returns. He finds himself to be an odd
man out in the investment game. Mutual funds have come, as a much needed help
to these investors.

(RAVIVYAS, 2012), Mutual fund companies should come forward with full
support for the investors in terms of advisory services, participation of investor in
portfolio design, ensure full disclosure of related information to investor, proper
consultancy should be given by mutual fund companies to the investors in
understanding terms and conditions of different mutual fund schemes, such type of
fund designing should be promoted that will ensure to satisfy needs of investors,
mutual fund information should be published in investor friendly language and
style, proper system to educate investors should be developed by mutual fund
companies to analyze risk in investments made by them, etc.

(K, 2006), Mutual Funds which has become an important portal for the small
investors, is also influenced by their financial behavior. Hence, this study has made
an attempt to examine the related aspects of the fund selection behavior of
individual investors towards Mutual funds Analysts seem to treat financial markets
as an aggregate of statistical observations, technical and fundamental analysis.

(M., 2015), The Indian mutual fund industry is in its growth phase and possesses a
tremendous scope for development which is evident for the international
comparison. The main reasons for poor growth of mutual fund industry in India is
the lack of awareness for mutual funds and lack of trust on mutual fund companies
and policy makers in investors’ results which are consistent with the other
researchers. The study suggested strong regulatory framework, greater
transparency, increased innovations, better services to the investors; liquidity and
higher returns could make mutual fund schemes more popular and investor friendly
in India.

(GRINBLATT, 2000), this study analyzes the extent to which past returns
determine the propensity to buy and sell. It also analyzes whether these differences
in past-return-based behavior and differences in investor sophistication drive the
performance of various investor types. We find that foreign investors tend to be
momentum investors, buying past winning stocks and selling past losers. Domestic
investors, particularly households, tend to be contrarians. The distinctions in
behavior are consistent across a variety of past-return intervals.
CHAPTER 3- RESEARCH METHODOLOGY
3.1 Introduction

Research is an investigation of finding solutions to scientific, social and business

problems through objective and systematic analysis. Any research is carried out
with the purpose of obtaining information. Research methodology involves such
activities as identifying problems, review of literature, data collection, hypothesis,
analysis of data, interpreting results and drawing conclusions.

The main focus of this chapter is the research design for this study. It describes
the methods used and how the data was collected to address the aims and
questions of the research. It begins with the statement of the problem, need and
scope of the study, objectives, nature of research, unit of study, sample selection,
sources of data, data collection method, data collection tools, tools and techniques
of data analysis.

The research study will basically cover up the analytical part in terms of investors
behavior towards the mutual fund investment. It is based on the primary research
as well as to analyze the behavior of the investor towards the mutual fund.

3.2 Problem Statement

The study was conducted to know the investor’s behavior towards Mutual Funds,
most of the investors are facing problem with certain discourages of Mutual
Funds like the uncertainties, cost of management of the Mutual Fund, Lack of
Knowledge about Mutual Funds. Also an attempt is been made to know and
compare each demographic factor with the age of respondents.

3.3 Need for the Study

The study is to know the customer awareness and behavior towards the Mutual
Funds and how investors are investing in their fund in different types of mutual
funds. Secondly to know the investors are investing through which medium and
how they choose to invest i.e. one time investment, SIP or STP.
3.4 Objectives of the Study
o To analyze investors behavior towards mutual funds.

o To analyze the impact of various demographic factors on investors attitude

towards mutual funds.

o To study the different characteristics of Mutual Funds affecting investors

behavior.

3.5 Research Design

As the research design to be followed will be exploratory in nature at the initial

stage as the topic is Investor’s behavior towards Mutual Funds in Surat city a
primary research is done, further on descriptive research design is followed.

3.6 Target Population

Target population of the study is Investors of Mutual Funds particularly in Surat

city. The respondents are segregated based on the various factor such as age,
occupation, occupation, income, education qualification etc.

3.7 Sampling Method

By adopting convenience sampling, 108 respondents were selected for this study.
The essential data were collected with the help of questionnaire.

3.8 Sample Size:

The total number of sample size that has been taken for the study is 108
respondents.

3.9 Duration of Study

The duration of the study is approximately 3 months i.e. from the month of January
to March.
3.10 Data Collection Tool

The basic tool for collecting the data for the mutual fund is to conduct the survey
in the field as per the segregation of the population through the questionnaire. We
get the information about the mutual fund based on their knowledge, past
experience about the mutual fund and factors affected for the selection of their
particular investment fund.

The secondary data has been collected from the various sites, research tools,
published book, journals, other authorized agency’s reports.

3.11 Methodology

The research study basically covers up the analytical part in terms of investors
attitude towards the mutual fund investment. It is based on the primary research as
well as to analyze the behavior of the investor towards the mutual fund.

For efficient and effective utilization of collective data, we have used various
statistical tools like Chi Square test, Hypothesis, ANNOVA test for the various
factors associated with the mutual fund investment, Cross Tabulation.

Chi square test is also known as Chi square test for independence. The test is
applied when you have two categorical variables from a single population. It is
used to determine whether there is a significant association between the two
variables.

Apart from Chi square and Hypothesis testing, Measures of dispersion techniques
(Mean, Median and Mode) have been used to identify the investor’s choice of
investment.
3.12 Hypothesis

1. Whether the investor’s know about the risk and return factors associated
with Mutual Funds.
2. Whether there is a significant difference between the various factors of
Mutual Funds.
3. Whether there is a significant difference between the various demographic
factors.

3.13 Data Analysis Tool

The data and the information collected are processed and analyzed using SPSS
software.
CHAPTER-4 DATA ANALYSIS
DATA ANALYSIS

Q-1 Age of Respondent

Age of Respondent

Frequency Percent Valid Cumulative

Percent Percent
18-24 54 .0 50.0 50.0
25-30 5 .0 4.6 54.6
31-40 35 .0 32.4 87.0
Valid
41-50 11 .0 10.2 97.2
>50 3 .0 2.8 100.0
Total 108 .0 100.0
(Sources: SPSS Output)

Age of Respondent
3%
10% 18-24
25-30
50%
32% 31-40
5% 41-50
>50

Interpretation:

From the above table and pie chart we can conclude that majority of the
respondents, (54)50% belongs to the age-group 18-24, 32% of the investors belong
to the age group 31-40. Whereas, there are only 5% and 10% of the investors of age
group 25-30 and 41-50 respectively.
Q-2 Qualification of the Respondent

Qualification of Respondent

Frequenc Percent Valid Cumulative

y Percent Percent
High School 44 .0 40.7 40.7
Graduate 17 .0 15.7 56.5
Valid Professional Degree 22 .0 20.4 76.9
Post Graduate 25 .0 23.1 100
Total 108 .0 100
(Sources: SPSS Output)

Qualification of Respondent

23% Graduate
41%
High School
20%
16% Post Graduate
Professionals

Interpretation:

From the above table and pie chart we can examine that (44)41% of the respondents
are Graduate, Post Graduates (25), lowest respondents are High School qualified
i.e. 16%. Here, we can say that as the highest respondents were of the age group
18-24, so the graduates are also highest.
Q-3 Occupation of the Respondent

Occupation of Respondents

Frequency Percent Valid Percent Cumulative

Percent
Student 48 .0 44.4 44.4
Service 30 .0 27.8 72.2
Valid Business 29 .0 26.9 99.1
Housewife 1 .0 .9 100.0
Total 108 .0 100.0
(Sources: SPSS Output)

Occupation of Respondents

Housewife
Business 1%
27% Student
44%
Service
28%

Student Service Business Housewife

Interpretation:

From the above pie chart we can conclude that the 44% of respondents are students
, 28% and 27% are from service and business background respectively. Only 1%
of the respondents are housewife.
Q-4 What is your monthly average income?

Monthly Income of Respondent

Frequency Percent Valid Cumulative
Percent Percent
10,000-50,000 21 .0 19.4 19.4
5,00,001-1,00,000 42 .0 38.9 58.3

Valid 1,00,001-5,00,000 28 .0 25.9 84.3

>5,00,000 17 .0 15.7 100.0

Total 108 .0 100.0

(Sources: SPSS Output)

Monthly Income of Respondent

16% 19%

26%

39%

10,000-50,000 50,001-1,00,000 1,00,001-5,00,000 >5,00,000

Interpretation:
According to the above data, we can conclude that maximum of 39% of the
respondents monthly average income is 39%. 26% of the respondents have monthly
average income, whereas lowest of 16% have the monthly income as 16%.
Q-5 Do you save a portion of your income?
Table 5.1

Savings by Respondent

Frequenc Percent Valid Cumulative

y Percent Percent
No 9 .0 8.3 8.3
Valid Yes 99 .0 91.7 100.0
Total 108 .0 100.0
(Sources: SPSS Output)

SAVINGS BY RESPONDENTS
No, 8.3

Yes , 91.7

Interpretation:

From the above pie chart we can conclude that 92% of the respondents have save a
portion of their income. Whereas, only 8% doesn’t save.
Q-6 What is your saving objective?

Saving Objective
Yes % No %
Uncertainty 46 42.6 62 57.4
Personal Needs 71 65.7 37 34.3
Retirement 35 32.4 73 67.6
Child Education 35 32.4 73 67.6

Saving Objective of Respondents

80 73 73
71
62
60
46 Yes No

37 35 35
40

20

0
Uncertainities Personal Needs Retirement Child's Edu.

Interpretation:
From the above chart we can conclude that the main objective of savings by the
respondents is Personal Needs, as maximum of 71(66%) respondents selected it as
their objective. Second most important objective is uncertainties, Retirement and
Child’s Education both got 35(32%) of the respondents investing in it.
Q-7 Currently, what are your investment needs?

Yes % No %
Retirement Corpus 21 19.44 87 80.56

Medical Emergencies 38 35.18 71 64.82

Child Education 39 36.11 69 63.89

Tax Saving 35 32.40 73 67.6

Financial Security 58 53.70 20 46.30

Wealth Creation 40 37.03 68 62.97

Investment Needs

87
100 71 69 73 68
58
38 39 35 40
50 21 20

Yes No

Interpretation:

From the above chart we can conclude that the investment needs of the 58
respondents is mainly Financial Security, nearly 40 of the respondents need is
Wealth Creation, Child Education, Medical Emergencies and Tax Saving.
Q-8 Source of information about mutual fund?

Yes % No %
Advertisement 49 45.37 59 54.62
Family, friends 52 48.14 56 51.85
or relatives
Internet 32 29.62 76 70.37
Banks 21 19.47 86 79.63

Source of information

100
86
76
80
59 56
60 49 52

40 32
21
20

0
Advertisement Family,friends or Internet Banks
relatives

Yes No

Interpretation:
From the above data we can conclude that most of the respondents i.e. 52(48%) ,
got to know about Mutual Funds through Family, friends and relatives, whereas
49(45%) got to know through the medium of advertisements. A low number of
respondents – 32 and 21 got to know through Internet and banks respectively.
Q-9 Years of Experience of the respondents

Years of Experience
Valid Cumulative
Frequency Percent Percent %
Less
than 2
Valid years 50 0 46.3 46.3
2 years
to 4
years 16 0 14.8 61.1
4 years
to 8
years 7 0 6.5 67.6
More
than 8
years 35 0 32.4 100
Total 108 0 100

Years of Experience

35, 32%
50, 46%

7, 7%

16, 15%

Less than 2 years 2 years to 4 years 4 years to 8 years More than 8 years

Interpretation:
From the above analysis we can interpret that 46% of the respondents have invested
in the mutual funds for less than 2 years, whereas a minimum of 7% of the
respondents who have an experience of 4 to 8 years.
Q-10 Risk Taker

Risk-taker
Frequency Percent Valid Cumulative
Percent Percent
Valid low 21 .0 19.4 19.4
moderately low 25 .0 23.1 42.6
moderate 53 .0 49.1 91.7
moderately high 5 .0 4.6 96.3
high 4 .0 3.7 100
Total 108 .0 100

Risk Taker
moderately high,
5, 5% high, 4, 4%
low, 21, 19%

moderately low,
moderate, 53, 49% 25, 23%

low moderately low moderate moderately high high

Interpretation:
From the above analysis we can conclude that 49% of the investors are moderate
risk-takers whereas lowest of 4% and 5% of the investors are high and moderately
high risk-takers respectively.
Q-11 Which Asset Class do you invest in?

Yes % No %
58
Equity 53.70 50 46.30
44
Balanced 40.74 64 59.26
18
Debt 16.66 90 83.34
18
Liquid 16.66 90 83.34
20
Hybrid 18.51 88 81.49
18
Gold 16.66 98 83.34

Asset Class
90 90 88 90
90
80
64
70 58
60 50
44
50
40
30 18 18 20 18
20
10
0
Equity Balanced Debt Liquid Hybrid Gold

Yes No

Interpretation:
From the above data we can conclude that the maximum of 58(54%) respondents
invest in Equity, whereas a minimum of only 18-20 respondents invest in the four
asset classes i.e. debt, liquid, hybrid and gold.
Q-12 Medium of purchasing Mutual Funds

Valid Cumulative
Frequency Percent Percent Percent
Valid Directly from AMC'S 22 0 20.4 20.4
Brokers 53 0 49.1 69.4
Sub-Brokers 24 0 22.2 91.7
Other Sources 9 0 8.3 100
Total 108 0 100

MEDIUM OF PURCHASING MF
Other Sources,
9, 8% Directly from
AMC'S, 22, 21%

Sub-Brokers,
24, 22%

Brokers, 53,
49%

Interpretation:
From the above data we can conclude that 53(49%) of the investors purchase
mutual funds from Brokers , whereas 20-25% of the investors purchase from sub-
brokers and directly from AMC’S . Only a few others are there who purchase from
some other sources.
Q-13 In which company’s MF do you invest?

Yes % No %
SBI-MF 38 35.18 70 64.82
HDFC 51 47.23 57 52.77
Birla Sun Life 26 24.07 82 75.9
Reliance 27 25 81 75
DSP Black Rock 30 27.77 78 72.23

ICICI Prudential 23 21.29 85 78.71

Kotak 14 12.96 94 87.04
Franklin
11 10.18 97 89.82
Templeton

Company of MF
94 97
100 82 81 78 85
70
80
5157
60 38
26 27 30 23
40 14 11
20
0

Yes No

Interpretation:
From the above data we can conclude that 51 of the respondents invest in HDFC ,
38 of the respondents invest in SBI-MF , 30 respondents invest in DSP Black Rock
Funds and around 26 respondents invest in Birla Sun Life and Reliance.
Q-14 Schemes managed by?

Scheme Manager
Valid Cumulative
Frequency Percent Percent Percent
Valid Advisor 43 0 39.8 39.8
Third
Party 33 0 30.6 70.4
Self 28 0 25.9 96.3
Others 4 0 3.7 100
Total 108 0 100

SCHEME MANAGER
Others, 4, 4%

Self, 28, 26% Advisor, 43,

40% Advisor
Third Party
Self
Others

Third Party, 33,

30%

Interpretation:
From the above data we can conclude that 43(40%) of the respondents schemes are
managed by Advisors and the minimum of 28 (26%) respondents schemes are
managed by themselves. Whereas only a few investors use some other manager of
their scheme.
Q-15 In which Mutual Fund sector do you invest in?

Yes % No %
Banking Fund 67 62.03 41 37.97
Gold Fund 28 25.92 80 74.08
Debt Fund 19 17.60 89 82.40
Diversified Equity Fund 34 31.48 74 68.52

Real Estate Fund 16 14.81 92 85.19

Oil and Petroleum 4 3.70 104 96.3

Mutual Fund Sector

120 104
89 92
100 80 74
80 67
60 41
28 34
40 19 16
20 4
0
Banking Gold Fund Debt Fund Diversified Real Estate Oil and
Fund Equity Fund Petroleum
Fund Fund

Yes No

Interpretation:
Here, we can conclude that 67 of the respondents invest in Banking Fund Sector ,
34 of the respondents do invest in Diversified Equity Fund, 28 of the respondents
invest in Gold Fund, some of the respondents i.e. 15-20 invest in Debt Fund and
Real Estate Fund.
Cross Tabulation of Age of Respondent with Qualification of the
Respondent

Table 7.1

Qualification of Respondent Total

High Graduate Professional Post
School Degree Graduate
Age 18-24 34 14 5 1 54
25-30 1 0 2 2 5
31-40 5 1 12 17 35
41-50 3 1 3 4 11
>50 1 1 0 1 3
Total 44 17 22 25 108
(Sources: SPSS Output)

Interpretation:
From the above table 12.1, it has been clearly stated that under 18-24 age group
there are 34 respondents who are pass outs of high school, 14 are graduates whereas
under 25-30 age group there are a less number of respondents. Under the age group
31-40 there are 17 respondents which are post graduates and 12 respondents fall
under the professional degree. Moreover between 41-50 there are only 4
respondents that fall under post graduates and there is one respondent of age more
than 50, 1 respondent is from each qualification.
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square 52.896a 12 .000
Likelihood Ratio 61.589 12 .000

Linear-by-Linear Association 29.896 1 .000

N of Valid Cases 108

a. 12 cells (60.0%) have expected count less than 5. The minimum expected count is
.47.

From the Table 13.1, The Significance value at 5% significant level is 0.000 by
Pearson Chi Square test which is less than 0.05 so we reject the Null Hypothesis,
which shows there is a significant difference between Age of the respondent and
Qualification of the respondent.

Symmetric Measures
Value Asymp. Std. Approx. Tb Approx.
Errora Sig.
Interval by .529 .080 6.411 .000c
Pearson's R
Interval
Ordinal bySpearman .542 .079 6.646 .000c
Ordinal Correlation
N of Valid Cases 108
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

From the above table it has been clearly stated that, both the Pearson and
Spearmen’s correlation shows the high correlation between Age of the respondent
and Qualification of the respondent as P value is 0.000 which is less than 0.05 that
means Null Hypothesis is rejected.
Cross Tabulation of Age of Respondent with Monthly Income of
Respondent

Table 15.1

Monthly Total
Income of
Respondent
10,000- 5,00,001- 1,00,001- >5,00,000
50,000 1,00,000 5,00,000
Age 18-24 17 11 14 12 54
25-30 0 2 1 2 5
31-40 3 20 10 2 35
41-50 1 6 3 1 11
>50 0 3 0 0 3
Total 21 42 28 17 108

From the above table 15.1 we can clearly state that between the age group 18-24
there are 17 respondents that has a monthly income of 10,000 to 50,000, 14
respondents have 1,00,001 to 5,00,000 income. Between the age group 31-40 there
are 20 respondents having monthly income of 50,001 to 1,00,000. Overall there are
maximum of 42 respondents having income between 50,001 to 1,00,000.

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 26.925a 12 .008
Likelihood Ratio 29.538 12 .003
Linear-by-Linear .286 1 .593
Association
N of Valid Cases 108
a. 12 cells (60.0%) have expected count less than 5. The
minimum expected count is .47.
From the above table we can conclude that the Significance value at 5% significant
level is 0.008 by Pearson Chi Square test which is less than 0.05 so we reject the
Null Hypothesis, which shows there is a significant difference between Age of the
respondent and Monthly Income of the respondent.

Symmetric Measures
Value Asymp. Std. Approx. Tb Approx. Sig.
Errora
Interval by -.052 .089 -.533 .595c
Pearson's R
Interval
Ordinal by -.030 .098 -.306 .760c
Spearman Correlation
Ordinal
N of Valid Cases 108
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

From the above table it has been clearly stated that, both the Pearson and
Spearmen’s correlation shows the low correlation between Age of the respondent
and Monthly Income of the respondent as P value is 0.5 and 0.7 which is more than
0.05 that means Null Hypothesis is not rejected.
Cross Tabulation of Age of respondent with Occupation of the respondent

Occupation of Respondent Total

Student Service Business Housewife
18-24 46 3 5 0 54
25-30 0 2 3 0 5
Age 31-40 2 20 12 1 35
41-50 0 4 7 0 11
>50 0 1 2 0 3
Total 48 30 29 1 108

From the above table we can conclude that there are 46 of the students as we have
also seen that majority of the respondents are between the age group 18-24.
Secondly, 20 of the respondents are between the age group of 31-40 of Service and
7 of the respondents are of business class.

Chi-Square Tests
Value df Asymp. Sig.
(2-sided)
Pearson Chi-Square 79.873a 12 .000
Likelihood Ratio 92.836 12 .000
Linear-by-Linear 48.288 1 .000
Association
N of Valid Cases 108

From the above table we can conclude that the Significance value at 5% significant
level is 0.000 by Pearson Chi Square test which is less than 0.05 so we reject the
Null Hypothesis, which shows there is a significant difference between Age of the
respondent and Occupation of the respondent.
Symmetric Measures
Value Asymp. Std. Approx. Tb Approx.
Errora Sig.
Interval by .672 .059 9.337 .000c
Pearson's R
Interval
Ordinal by Spearman .717 .062 10.588 .000c
Ordinal Correlation
N of Valid Cases 108
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

From the above table it has been clearly stated that, both the Pearson and
Spearmen’s correlation shows the high correlation between Age of the respondent
and Occupation of the respondent as P value is 0.000 which is less than 0.05 that
means Null Hypothesis is rejected.
Descriptive Statistics
Mean Std. Deviation Analysis N
Liquidity 2.94 1.121 108
Security 3.26 1.114 108
Better Returns 3.53 1.172 108
Low Risk 3.18 1.092 108
Tax Benefits 3.25 1.169 108
Regular Income 3.40 1.215 108
Simple to Invest 3.47 1.131 108
Quick Process 3.42 1.231 108
Automated Payments 3.32 1.151 108
Suits Financial Goals 3.33 1.127 108

Bitter Past Exp. 2.55 1.171 108

Lack of knowledge 3.03 1.131 108
Difficulty in selecting scheme 3.13 1.208 108
Inefficient Advice Manager 3.02 1.059 108
Inefficient Investment advisor 2.96 1.118 108
Unpredictable 3.04 1.143 108
No guarantee of returns 2.94 1.134 108
Unethical practices creep in 2.82 1.066 108
Cost of Management of MF 2.92 1.042 108

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of
.896
Sampling Adequacy.
Bartlett's Test of Approx. Chi-
Sphericity Square 1238.538

df 171
Sig. .000
From the above test of KMO and Bartlett’s we can clearly state that the Sampling
Adequacy is high i.e. 0.896 which is a good measure as also we can see that the
significance is 0.000 which is less than 0.05 significance level which means that
there is a significant difference between the various factors of Mutual Funds.

Communalities

Initial Extraction
Liquidity 1 0.449
Security 1 0.552
Better Returns 1 0.683
Low Risk 1 0.526
Tax Benefits 1 0.645
Regular Income 1 0.619
Simple to Invest 1 0.645
Quick Process 1 0.762
Automated Payments 1 0.565
Suits Financial Goals 1 0.631

Bitter Past Exp. 1 0.554

Lack of knowledge 1 0.611
Difficulty in selecting
scheme 1 0.705
Inefficient Advice Manager 1 0.678
Inefficient Investment
advisor 1 0.709
Unpredictable 1 0.705
No guarantee of returns 1 0.665
Unethical practices creep in 1 0.596
Cost of Management of MF 1 0.545
Extraction Method: Principal Component Analysis.

From the above table we can conclude that the respondents mostly prefer Mutual
funds due to its quick process, better returns, simple to invest and tax benefits.
They have neutral perception towards regular income, suits financial goals and
automated payments and security whereas they least prefer mutual funds due to
features of liquidity and low risk.
Whereas the features of mutual funds that discourage the respondents highly are
inefficient investment advisor, unpredictable and difficulty in selection of the
scheme. Whereas the respondents neutrally are discouraged due to inefficient
advice manager, no guarantee of returns and lack of knowledge. And the
features that least affect the respondents are unethical practices, cost of
management and bitter past experience.
Component Matrix

Component

1 2 3
Liquidity 0.614 -0.262 0.054
Security 0.669 -0.314 0.08
Better Returns 0.776 -0.202 -0.202
Low Risk 0.589 -0.331 -0.263
Tax Benefits 0.735 -0.299 -0.122
Regular Income 0.73 -0.274 0.101
Simple to Invest 0.674 -0.211 0.382
Quick Process 0.726 -0.409 0.258
Automated Payments 0.677 -0.326 0.01
Suits Financial Goals 0.717 -0.115 -0.323

Bitter Past Exp. 0.557 0.45 0.202

Lack of knowledge 0.683 0.267 -0.27
Difficulty in selecting
scheme 0.747 0.204 -0.325
Inefficient Advice
Manager 0.696 0.359 -0.254
Inefficient Investment
advisor 0.744 0.35 -0.183
Unpredictable 0.764 0.284 0.201
No guarantee of
returns 0.673 0.222 0.402
Unethical practices
creep in 0.653 0.357 0.204
Cost of Management of
MF 0.668 0.284 0.136

Extraction Method: Principal Component Analysis.

From the above table, it has been clearly indicating major three factor which has a
significant impact on the investor’s behavior. Majority of the statement are falling
under the first component i.e. Return, which has a significant impact on the mindset
of the investors while investing in the mutual fund. The second factor is
Uncertainty, which has been supported by majorly four components and lastly the
third factor is Corporate Governance, which has been supported by majorly three
statements.
Normality Tests

Tests of Normality
Kolmogorov-
Smirnova Shapiro-Wilk
Statistic df Sig. Statistic df Sig.
Return 0.062 108 .200* 0.987 108 0.359
Uncertainty 0.058 108 .200* 0.984 108 0.206
Corporate Governance 0.095 108 0.018 0.943 108 0

HO: The data are Normal

H1: The data are not Normal

From the above table of Normality Testing, the data extracted through factor
analysis shows the Normal distribution of the data which has been proved thorough
Kolmogorov-Smirnova test. The significance value (p) is 0.200 for return which
means Pcal is greater than Ptab. It means we fail to reject the Null Hypothesis and
the data are normal for return factor. The significance value (p) is 0.200 for return
which means Pcal is greater than Ptab. It means we fail to reject the Null Hypothesis
and the data are normal for Uncertainty factor. The significance value (p) is 0.018
for Corporate Governance which means Pcal is less than Ptab which is nearest to
0.05. So we can apply 1% significance level for Corporate Governance factor than
the data would be normal.
Test of Homogeneity Variances
Levene df1 df2 Sig.
Statistic
Return 0.302 4 103 0.876
Uncertainty 1.496 4 103 0.209
Corporate 2.242 4 103 0.07
Governance

From the above table, it has been clearly indicating that the data are normal for all
the three factor extracted. Likewise, through levene’s statistic, the P value for
Return is 0.876 which is greater than the 0.05, which means the data are
Homogeneous for Return factor. The P value for Uncertainty is 0.209 which is also
greater than the 0.05, which means the data are Homogeneous for Uncertainty. The
P value for Corporate Governance is 0.07 which is greater than0.05, which means
the data are Homogeneous for Corporate Governance factor.
Anova for the factors
Sum of Mean
Squares df Square F Sig.
Between
Return Groups 6.914 3 2.305 2.395 0.073
Within
Groups 100.086 104 0.962
Total 107 107
Between
Uncertainty Groups 0.818 3 0.273 0.267 0.849
Within
Groups 106.182 104 1.021
Total 107 107
Corporate Between
Governance Groups 4.469 3 1.49 1.511 0.216
Within
Groups 102.531 104 0.986
Total 107 107

Table indicates that, Return factor shows a significant difference as the significance
value calculated is 0.073 thus it has a significant impact on the investor’s behavior.
Whereas the uncertainty and corporate governance doesn’t show any significant
difference.
CHAPTER-5 FINDINGS, CONCLUSIONS AND
RECOMMENDATIONS
FINDINGS:

OBJECTIVES QUESTIONS DISCUSSIONS

1. To analyze the Investor’s How much of a risk taker are Majorly 49% of the
behavior towards you? investor’s as analyzed are
investment in Mutual Funds. moderate risk takers. So we
get to know through this that
there are some least
investors who take high
risks.
2. To analyze the impact of Demographic Factors- Age, From the Cross Tabulations
various demographic factors Qualification, Occupation, analyzed between the age
on investors attitude towards Monthly average Income group and the other
mutual funds. demographic factors. Also
we come to know that in all
cases there is a significant
difference between the
demographic factors and
high correlation also seen.

From the Chi-Square tests

we come to know that the
significant difference is
there in most factors.
From the Pearson’s and
Spearmen correlation the
high correlation between the
demographic factors can be
seen and hence the null
hypothesis is also rejected.
3. To study the different Which features of Mutual According to the analysis
characteristics of Mutual Funds allures you the most? quick process, better returns,
Funds affecting investors simple to invest and tax
behavior. benefits are the mostly
preferred features that
allures the investors to invest
in mutual funds. From the
various tests of knowing the
features affecting investors
behavior we get to know that
the sampling adequacy is
high, also a significant
difference between the
factors is seen. With the help
of Normality tests, the
normal distribution of the
data has been proved.
Likewise the data has been
found homogeneous.
Which features discourages According to the analysis
you the most? inefficient investment
advisor, unpredictability and
difficulty in selection of the
scheme are the features that
most highly discourages the
investors to invest in mutual
funds. From the various
tests of knowing the features
affecting investors behavior
we get to know that the
sampling adequacy is high,
also a significant difference
between the factors is seen.
With the help of Normality
tests, the normal distribution
of the data has been proved.
Likewise the data has been
found homogeneous.
CONCLUSIONS

From the above study, I can conclude that according to the objectives of the study
the perception of the investor towards Mutual Funds has been proved through the
various tests done with the help of the SPSS Software, that the investors have a
moderate level of knowledge about the Mutual Funds , whereas the most of the
investors have been investing for a less number of time i.e. generally less than 2
years. The demographic factors also have a significant difference between them,
also the sampling adequacy, homogeneity also has been proved. We can say
through the analysis that there are generally moderate risk takers, most of the
investors invest in Equity class, Banking funds, Maximum of them invest in the
SBI-MF and have an investment need mostly as a personal need. The investors in
Surat are generally looking for the shorter period of investment.

SUGGESTIONS

My suggestion to the investor is that the Mutual Fund investment is not the short
term purpose of investment but it is generally for the longer period of time. So
investor should keep this thing in the mind with the risk and saving factor associated
with it. There are various private and government financial companies available in
the market with proper knowledge of the Mutual Fund scheme, take the help of
them as they can guide and assist to you towards more reliable and safe investment
proposal by collecting various information and periodical performance of the
various scheme. Other suggestion is that investor should also keep some of the part
of the investment in the Liquid option to meet any mitigation in the future as and
when it will arise so that the long term investment plan will not get disturbed.
CHAPTER-6 BIBLIOGRAPHY
Bibliography

DR.SHANTANU MEHTA, C. S. (2012). Preference of Investors for Indian Mutual Funds

and its Performance Evaluation. Pacific Business Review International.

Grinblatt, M. (2000). The investment behavior and performance of various investor

types: a study of Finland's unique data set. Journal of Financial Economics,
Volume 55, Issue 1.

N Walia, R. K. (2009). An Analysis of Investor’s Risk Perception. Journal of business and

Management.

POOL, N. P. (2006). Do Hedge Fund Managers Misreport Returns? Evidence from the
Pooled Distribution. The Journal of Finance banner, Volume64, Issue5.

Ranganathan, K. (2006). A Study of Fund Selection Behaviour of Individual Investors

Towards Mutual Funds . Indian Institute of Capital Markets 9th Capital Markets
Conference Paper.

S Saini, B. A. (2011). Investors' awareness and perception about mutual funds. Journal of
Banking Financial Services and Insurance Research.

Singh, B. K. (2011). A study on investors attitude towards mutual funds as an investment

option. Journal of Asian Business Strategy, Vol 1, Iss 2.

Vyas, D. R. (2012). Mutual fund investor's behaviour and perception in Indore city.
Journal of Arts, Science & Commerce.
Geetha, N., & Ramesh, M. (2011). A study on people’s preferences in Investment
Behaviour. International Journal of Engineering and Management Research, 1(6), 285-
306.

Chevalier, J., & Ellison, G. (1999). Are some mutual fund managers better than others?
Cross‐sectional patterns in behavior and performance. The journal of finance, 54(3), 875-
899.

Barreda-Tarrazona, I., Matallín-Sáez, J. C., & Balaguer-Franch, M. R. (2011). Measuring

investors’ socially responsible preferences in mutual funds. Journal of Business
Ethics, 103(2), 305.

Kumar, S., & Kumar, V. (2014). INVESTORS'PERCEPTION TOWARDS MUTUAL

FUNDS: A STUDY OF LOW RISK INVESTMENTS. International Journal of Management
Research and Reviews, 4(3), 388.

Malkiel, B. G. (1995). Returns from investing in equity mutual funds 1971 to 1991. The
Journal of finance, 50(2), 549-572.

Carhart, M. M. (1997). On persistence in mutual fund performance. The Journal of

finance, 52(1), 57-82.
CHAPTER-7 ANNEXURES
QUESTIONNAIRE

Personal Details:

Name: ____________________________

Age: 18-24 ___

25-30 ____
31-40 ____
41-50 ____
>50 ____

Qualification: Graduate:  High School: 

Professional Degree:  Post Graduate: 

Occupation: Service:  Business:  Student:  Housewife:


What is your monthly average income?

a) Rs. 10,000-50,000 
b) Rs. 50,001-1,00,000 
c) Rs. 1,00,001-5,00,000 
d) Rs. 5,00,001 and more 
 1. Do you save a portion of your income?

Yes  No 
2. What is your saving objective?

 Retirement [ ]
 Uncertainties [ ]
 Personal Needs [ ]
 Child’s Education [ ]
 All of the above [ ]

3. Currently, what are your investment needs?

Retirement Corpus [ ] Family’s Financial Security

[ ]
Children’s Education Marriage [ ] Wealth Creation [ ]
Medical Emergencies [ ] Tax Saving [ ]
All of the above [ ]

4. How did you come to know about it?

a) Advertisement
b) Friends or relatives
c) Banks
d) Internet
e) Others (please specify) ________________

5. How many years have you been investing in mutual funds?

a) Less than 2 years [ ] b) 2 years to 4 years [ ]

c) 4 years to 8 years [ ] d) 8 years and above [ ]

6. How much of a risk taker are you?

Low [ ]
Moderately Low [ ]
Moderate [ ]
Moderately High [ ]
High [ ]
 7. Which asset class did you invest in?

a) Equity  b) Debt  c) Balanced 

d) Liquid  e) Gold  e) Hybrid 

8. From where do you purchase Mutual Funds?

a) Directly from AMC’S b) Brokers

b) Sub-Brokers d) Other sources

9. By whom are the schemes managed?

a) Advisor  b) Third party  c) Self  d) Others 

10. In which company’s mutual funds have you invested?

SBI-MF DSP Black Rock Fund

HDFC Reliance
ICICI Prudential Fund Kotak
Birla Sun Life Franklin Templeton

11. When you invest in mutual fund, which mode of investment do you
prefer?

a) One Time Investment [ ]

b) Systematic Investment Plan (SIP) [ ]
c) Systematic Transfer Plan (STP) [ ]

12. Which mutual fund sector are you investing in?

a) Banking fund d) Diversified Equity Fund

b) Gold Fund e) Real Estate Fund
c) Debt Fund f) Oil and Petroleum
13. Which feature of mutual funds allures you the most? ( 1 = Least , 5- Most
)

Features 1 2 3 4 5
Liquidity
Security
Better return
Automated Payments
Low risk
Regular income
Tax benefit
Quick Process
Simple to invest
Suits Financial Goals

14. Factors that discourage you to invest in mutual funds? ( 1 = Least , 5 =

Most)

Factors 1 2 3 4 5
Bitter past experience
Lack of knowledge
Difficulty in selection of
scheme
Inefficient advice manager
Inefficient investment
advisor
Unpredictable
No Guarantee
Unethical practices creep
in
Costs of Management

15. How would you like to invest receive returns every year?

a) Dividend Payout
b) Dividend Reinvestment
c) Growth in NAV