14 Summary PDF

SUMMARY AND SUGGESTIONS
6.1 Summary of Findings and Conclusions
After the application of statistical test of cross tabulation to the attributes of investor’s
perception with respect to the sex of the respondents it has been summarized that:
· Sex is independent of the perception about good quality advice from the
distributor.
· Sex is independent of the perception about the reasonability of the
management fee charged by AMC.
· Sex is dependent of the perception about the entry/exit load in comparison
with the reasonability of the return earned.
· Sex is independent of the perception about Advertisements and performance
portrayal is misleading.
· Sex is not independent of the perception about the need to simplify
information to unit holders.
· Sex is not independent of the perception about scheme performance being
linked with governance of the mutual fund.
· Sex is independent of the perception about investment in mutual funds is for
longer period.
· Sex is not independent of the perception about investors say in the
management of the mutual fund.
· Sex is not independent of the perception about benefits of attending investor
education program.
· Sex is not independent of the perception about no direct regulatory control on
distributors.
perception with respect to the age of the respondents it has been summarized that:
· Age is not independent of the perception about good quality advice from the
distributor.
· Age is not independent of the perception about the reasonability of the
255
· Age is dependent of the perception about the entry/exit load in comparison
with the reasonability of the return earned.
· Age is dependent of the perception about Advertisements and performance
portrayal is misleading.
· Age is not independent of the perception about the need to simplify
· Age is not independent of the perception about scheme performance being
linked with governance of the mutual fund.
· Age is not independent of the perception about investment in mutual funds is
for longer period.
· Age is not independent of the perception about investors say in the
· Age is not independent of the perception about benefits of attending investor
education program.
· Age is not independent of the perception about no direct regulatory control on
distributors.
perception with respect to the marital status of the respondents it has been
summarized that:
· Marital status is not independent of the perception about good quality advice
from the distributor.
· Marital status is independent of the perception about the reasonability of the
· Marital status is not independent of the perception about the entry/exit load in
comparison with the reasonability of the return earned.
· Marital status is not independent of the perception about Advertisements and
performance portrayal is misleading.
· Marital status is not independent of the perception about the need to simplify
· Marital status is not independent of the perception about scheme performance
being linked with governance of the mutual fund.
256
· Marital status is not independent of the perception about investment in mutual
funds is for longer period.
· Marital status is not independent of the perception about investors say in the
· Marital status is not independent of the perception about benefits of attending
investor education program.
· Marital status is not independent of the perception about no direct regulatory
control on distributors.
perception with respect to the qualification of the respondents it has been summarized
that:
· Qualification is not independent of the perception about good quality advice

· Qualification is not independent of the perception about the reasonability of
the management fee charged by AMC.
· Qualification is not independent of the perception about the entry/exit load in
· Qualification is not independent of the perception about Advertisements and
· Qualification is not independent of the perception about the need to simplify
· Qualification is not independent of the perception about scheme performance
· Qualification is not independent of the perception about investment in mutual
· Qualification is not independent of the perception about investors say in the
· Qualification is not independent of the perception about benefits of attending
· Qualification is not independent of the perception about no direct regulatory
257
perception with respect to the occupation of the respondents it has been summarized
that:
· Occupation is not independent of the perception about good quality advice
· Occupation is not independent of the perception about the reasonability of the
· Occupation is not independent of the perception about the entry/exit load in
· Occupation is not independent of the perception about Advertisements and
· Occupation is not independent of the perception about the need to simplify
· Occupation is not independent of the perception about scheme performance
· Occupation is not independent of the perception about investment in mutual
· Occupation is not independent of the perception about investors say in the
· Occupation is not independent of the perception about benefits of attending
· Occupation is not independent of the perception about no direct regulatory
perception with respect to the Annual Income of the respondents it has been
summarized that:
· Annual income is not independent of the perception about good quality advice
· Annual income is not independent of the perception about the reasonability of
the management fee charged by AMC.
· Annual income is not independent of the perception about the entry/exit load
in comparison with the reasonability of the return earned.
258
· Annual income is not independent of the perception about Advertisements and
· Annual income is not independent of the perception about the need to simplify
· Annual income is not independent of the perception about scheme
performance being linked with governance of the mutual fund.
· Annual income is not independent of the perception about investment in
mutual funds is for longer period.
· Annual income is not independent of the perception about investors say in the
· Annual income is not independent of the perception about benefits of
attending investor education program.
· Annual income is not independent of the perception about no direct regulatory
After the application of statistical test of cross tabulation to the source of information
for analyzing the performance of the fund with respect to sex of the respondents it has
been summarized that:
· Sex is not independent of monthly updates as a source of information for

analyzing the performance of the fund.
· Sex is independent of quarterly results as a source of information for analyzing
the performance of the fund.
· Sex is not independent of half yearly reports as a source of information for
· Sex is not independent of Annual Reports as a source of information for
· Sex is not independent of Newspapers as a source of information for analyzing
the performance of the fund.
· Sex is not independent of AMFI website as a source of information for
· Sex is independent of website of mutual funds as a source of information for
259
for analyzing the performance of the fund with respect to age of the respondents it has
been summarized that:
· Age is not independent of monthly updates as a source of information for

· Age is not independent of quarterly results as a source of information for
· Age is not independent of half yearly reports as a source of information for
· Age is not independent of Annual Reports as a source of information for
· Age is not independent of Newspapers as a source of information for
· Age is not independent of AMFI website as a source of information for
· Age is not independent of website of mutual funds as a source of information
for analyzing the performance of the fund.
for analyzing the performance of the fund with respect to marital status of the
respondents it has been summarized that:
· Marital status is not independent of monthly updates as a source of

information for analyzing the performance of the fund.
· Marital status is independent of quarterly results as a source of information for
· Marital status is not independent of half yearly reports as a source of
· Marital status is not independent of Annual Reports as a source of information
260
· Marital status is not independent of Newspapers as a source of information for
· Marital status is not independent of AMFI website as a source of information
· Marital status is not independent of website of mutual funds as a source of
for analyzing the performance of the fund with respect to qualification of the
· Qualification is not independent of monthly updates as a source of information

· Qualification is not independent of quarterly results as a source of information
· Qualification is not independent of half yearly reports as a source of
· Qualification is not independent of Annual Reports as a source of information
· Qualification is not independent of Newspapers as a source of information for
· Qualification is not independent of AMFI website as a source of information
· Qualification is not independent of website of mutual funds as a source of
for analyzing the performance of the fund with respect to occupation of the
· Occupation is not independent of monthly updates as a source of information

· Occupation is not independent of quarterly results as a source of information
261
· Occupation is not independent of half yearly reports as a source of information
· Occupation is not independent of Annual Reports as a source of information
· Occupation is not independent of Newspapers as a source of information for
· Occupation is not independent of AMFI website as a source of information for
· Occupation is not independent of website of mutual funds as a source of
for analyzing the performance of the fund with respect to Annual Income of the
· Annual income is not independent of monthly updates as a source of

· Annual income is not independent of quarterly results as a source of
· Annual income is not independent of half yearly reports as a source of
· Annual income is not independent of Annual Reports as a source of
· Annual income is not independent of Newspapers as a source of information
· Annual income is not independent of AMFI website as a source of information
· Annual income is not independent of website of mutual funds as a source of
From the factor analysis conducted to find the investor’s preferences of Mutual Funds
Kaiser-Meyer-Olkin measure of sampling adequacy (MSA) was found to be 0.634
which indicates that the sample was good enough and that factor analysis can be
262
carried out. Bartlett’s test of sphericity showed statistically significant number of
correlations among the variables (Approx. Chi square = 1026.040, df = 28, Sig. =
0.000). Mutual funds diversify the risk of the investor has been accounted for highest
88.6% variance.
Principal component analysis was employed for extracting factors, wherein the first
factor accounted for 37.278% of the variance, the second 15.518% and the third
13.295%.
The Scree plot graphs the Eigen value against the component number. From the
fourth factor on, the line is tends to become flat, meaning that each successive factor
is accounting for smaller and smaller amounts of the total variance.
The component matrix shows the loadings of the 8 variables on the 3 factors
extracted. Rotated component matrix shows further reduced no. of variables.
Variables like Good Investment Instrument, Investment in Mutual Fund is better than
shares, Mutual Funds provide assured and consistent returns, less calculation is
needed before investing in mutual funds have received the maximum importance
amongst all the factors.
From the factor analysis conducted to find the investor’s satisfaction towards Mutual
Funds Kaiser-Meyer-Olkin measure of sampling adequacy (MSA) was found to be
0.641 which indicates that the sample was good enough and that factor analysis can
be carried out. Bartlett’s test of sphericity showed statistically significant number of
correlations among the variables (Approx. Chi square = 3540.785, df = 120, Sig. =
0.000). Dealings in Mutual Funds is within time has been accounted for highest
81.5% variance.
Principal component analysis was employed for extracting factors, wherein the first
factor accounted for 32.002% of the variance, the second 12.903% and the third
9.337%.
263
The Scree plot graphs the Eigen value against the component number. From the fifth
factor on, the line is tends to become flat, meaning that each successive factor is
accounting for smaller and smaller amounts of the total variance.
The component matrix shows the loadings of the 16 variables on the 4 factors
extracted. Rotated component matrix shows further reduced no. of variables.
The variables like Timeliness in getting Annual reports, Availability of options,

performance of the fund, options for payment, risks, potential returns were given
maximum importance in comparison to all the factors.
It can be summarized from the test statistics table for Kruskal Wallis Test that the
AMC’s should give special consideration to advantages of Professional Management,
Diversification, Transparency, Flexibility, Tax Benefits to suit the requirements of
different sex groups.
AMC’s should give special consideration to advantages of Professional Management,
Diversification, Return, Potential Low Cost, Liquidity, Flexibility, Wide Choice of
Schemes, Well Regulated, Simplicity to suit the requirements of different age groups.
It can be summarized from the test statistics table for Kruskal Wallis that the AMC’s
should give special consideration to advantages of Professional Management,
Diversification, Return, Transparency, Tax Benefits, Well Regulated, Simplicity to
suit the requirements of different marital status groups.
AMC’s should give special consideration to all the advantages except well regulation
to suit the requirements of different qualification groups.
It can be summarized from the test statistics table for Kruskal Wallis Test that there is
significant difference between different occupation groups and priority of selection
variables in Mutual Funds. The AMC’s should take into consideration all the selected
advantages to match the requirements of different occupation groups
264
AMC’s should give special consideration to all the advantages except tax benefits to
suit the requirements of different qualification groups.
265
6.2 Suggestions
After undertaking the cross tabulation of Demographic variables like sex, age, marital
status, qualification, occupation and annual income of the respondents with respect ot
investor’s perception towards the mutual funds it may be summarized that the AMC’s
should design the products as per the demographic group to increase its penetration of
mutual funds to various different strata of the investors. Importance is given by
various groups amongst the demographic variables which are of prime importance to
understand the perception of the investors towards mutual funds.
On close examination of the demographic variables with respect to the preferred

source of information for investing in mutual funds in most of the cases it has been
found that the groups are dependent on various sources of information for investing.
This data can provide the AMC’s to understand the investors need about the
information of the mutual funds at respective sources. AMC’s could use such sources
instead of advertisements which will definitely reflect the performance of their funds
and which will be evaluated by the investors before investing.
While conducting the statistical test on the Investor’s preferences it was found that
variables like Good Investment Instrument, Investment in Mutual Fund is better than
shares, Mutual Funds provide assured and consistent returns, less calculation is
needed before investing in mutual funds have received the maximum importance
amongst all the factors.
While conducting the statistical test on the Investor’s satisfaction towards the mutual
funds it was found that variables like Timeliness in getting Annual reports,
Availability of options, performance of the fund, options for payment, risks, potential
returns were given maximum importance in comparison to all the factors.
After close examination of the various advantages of the mutual funds and the ranking
provided by the respondents about the advantages of the mutual funds, most of the
investors had considered professional management as the first advantage of investing
in mutual funds whereas the non of the investor was of the view of providing wide
266
choice of schemes, well regulated, economies of scale or simplicity as the first
advantage amongst the list of advantages. This view clearly shows that investors are
in an urgent need of some innovativeness about the product which can improve and
increase the availability of choice to the investors. Even the investors are of the view
that investing in mutual funds is not that much simple compared to various other
factors which definitely out caste the feature of simplicity. Investors are of the view
that most of the schemes of the fund houses should be well regulated so that it can
definitely help them. So, the AMC’s should consider all these list of variables which
are perceived as an advantage by the investor’s and come out with some new and
innovative products for them.
267
6.3 Further Research Scope
The present research work is carried out for Indian mutual fund industry wherein the
work has been carried out by taking into consideration only five prominent districts of
Gujarat State, so the study can be carried out across the state to come out with various
outcomes.
Investors have gone through a questionnaire with some limited variables wherein
other variables can be added to extend the study and investigate various unknown
relationships.
The research can be further extended to study reasons for lack of interest of the people
about mutual funds and the factors which can facilitate the penetration of mutual
funds in Tier-II and Tier-III cities and rural areas which is an untapped market
currently.
The study can be extended to understand the customer feedback or reactions towards
the AMC, which can definitely help the AMC’s to come out with new, innovative and
customized products as per the needs of the customers. The study can further be
extended to understand the needs of the services expected by the investors from their
AMC’s and intermediaries.
The variables studied in the present work can be studied for other allied industries as
well so as to understand and see that whether these relationships hold true for them or
change over different industries.
268
6.4 Managerial Implications
Mutual Fund industry has become stagnant currently due to the lacklustre of the
Indian economy. The world economy is facing a strong recession which has also
made the growth of Indian economy retard due to the global effect. Due to the poor
performance of the Economy people are hesitant to enter in the Mutual Fund market
due to more expectation of the returns. Considering the findings and conclusions
following inferences can be made from the study:
Various demographic variables are having a major impact on the preferences and
expectations of the investors from the Mutual Funds, which leads to coming out with
new innovative and customized products as per the needs of the target masses. It was
also found that most of the investors are aware about the Mutual Fund industry and
they are investing in Mutual Funds by properly examining the performance of the
funds through various sources. So the AMC’s should take care of displaying the
information about the funds in various sources to penetrate their products to the
specific target groups.
Investors are preferring Mutual Funds due to the variables like Good Investment
Instrument, Investment in Mutual Fund is better than shares, Mutual Funds provide
assured and consistent returns, less calculation is needed before investing so the
AMC’s should understand the investors’ expectations from the funds.
Investors are satisfied from the mutual funds due to the factors like Timeliness in
getting Annual reports, Availability of options, performance of the fund, options for
payment, risks, potential returns . So the AMC’s should try to maximize the
satisfaction of the investors by understanding the factors and maintaining consistency
of those factors.
Investors expect that professional management is the biggest advantage of the Mutual
Funds and so the AMC’s should maintain such a kind of attitude in future to maintain
the faith of the investors. Factors like providing wide choices of schemes, well
regulated, economies of scale, simplicity should be given prime importance by the
AMC’s as the people are rating them less in comparison to various other factors
269
6.5 References
· Jensen (1967) in the study “The Performance of Mutual Funds in the period
1945-1964”, Journal of Finance, Vol.23 (2): 389-416.
· Gupta, L.C., (1991) “Indian Shareowners: A Survey”, Society for Capital
Market Research and Development, Delhi.
· Gupta, L.C., (1993) “Mutual Funds and Asset Preference”, Society for Capital
Market Research and Development, Delhi.
· Bhatt, R.S., (1996) “UTI and Mutual Funds: A Study, UTI Institute of Capital
Market”, Mumbai.
· Falkenstein, E. (1996), “Preferences for Stock Characteristics as revealed by
Mutual Fund Portfolio Holdings”, The Journal of Finance Vol.51: 111-135.
· Jayadev, M (1996) “Mutual Fund Performance: An analysis of Monthly
returns”, Finance India, March pg. 73-84.
· Madhusoodan, T.P. (1997) “Risk and Return: A new look at the Indian Stock
Market”, Finance India, Vol IX, no.2, June, pg. 285-304.
· Goetzmann, W.N., and N.Peles, (1997) “Cognitive Dissonance and Mutual
Fund Investors”, The Journal of Financial Research, Vol. XX (2): pg. 145-158.
· Sadak, H., (1997) “Mutual Funds in India: Marketing Strategies and
Investment practices”, Response book, New Delhi.
· Sahadevan, K.G., and M.Thirpalraju., (1997) “Mutual Funds: Data
Interpretation and Analysis”, PHI, New Delhi.
· Meheta, D.R., (1997) “Mutual Fund in India: Some Issues”, The paper
presented in the second annual seminar on Mutual Fund Industry, Mumbai,
January 1996 and published in the edited book “Mutual Funds in India:
Challenges, Opportunities and Strategic Perspectives”, UTI Capital Markets,
pg 1-6.
· Dave, S.A., (1997) “Outlook for the Indian Mutual Fund Industry”, the edited
book “Mutual Funds in India: Challenges, Opportunities and Strategic
Perspectives”, UTI Capital Markets, pg 11.
· Shroff, M.R., (1997) “Macro Economic factors and Mutual Funds Industry”
the edited book “Mutual Funds in India: Challenges, Opportunities and
Strategic Perspectives”, UTI Capital Markets.
270
· Carter, M.N., (1997) “Global trends that are shaping the MF industry”, the
edited book “Mutual Funds in India: Challenges, Opportunities and Strategic
Perspectives”, UTI Capital Markets, pg 57-63.
· Palwanker, A.N., (1997) “Marketing of Funds: Challenges and Opportunities”,
the edited book “Mutual Funds in India: Challenges, Opportunities and
Strategic Perspectives”, UTI Capital Markets.
· Mitra, S.K., (1997) “Investor Perceptions and Marketing Strategies”, the
edited book “Mutual Funds in India: Challenges, Opportunities and Strategic
Perspectives”, UTI Capital Markets, pg 74-80.
· Rao, P.M., (1998) “Working of Mutual Fund Organizations in India”, Kaniska
Publishers, New Delhi, pg. 5.
· Mohapatra, D.P., (1998) “An Empirical Study on the Perceptions of the
Investors towards Mutual Funds”, Ph.D thesis, Utkal Univeristy.
· Sethu, G., (1999) “The Mutual Fund Puzzle”, a paper presented at UTI-ICM,
December 23-24.
· Rajarajan, V., (1999) “Stage in Life Cycle and Investment Pattern”, Finance
India, Vol. XIII (2): pg. 477-485.
· Raju, D.V., (1999) “Mutual Funds Perceptions of Urban and Rural Investors in
west Godavari districts of AP.”, Ph.D thesis, Andhra University.
· Rowe, W.W., and Davidson III, W.N., (2000) “Fund Manager Succession in
Closed End Mutual Funds”, the Financial Review, pg. 53-78.
· Rajarajan, V., (2000) “Predictors of Expected Rate of Return by Individual
Investors”, The Indian Journal of Commerce, Vol. 53(4), Oct-Dec: pg. 65-70.
· NCAER, (2000) “Survey of Investors”, Securities Board of India, New Delhi.
· Bennett, J.A., Sias, R.W., and Starks, L.T., (2000) “Investment Competition,
Greener Pastures and Dynamic Institutional Preferences”.
· Schalkwyk, V., (2000) “Creating Wealth in a Developing Economy by
incorporating Investors Psychology in Portfolio Construction”.
· O’Neal, E.S., (2001) “Window Dressing and Equity Mutual Funds”.
· Naraimhan, M.S. and Vijayalakshmi, S., (2001) “Performance Analysis of
Mutual Funds in India – An Empirical Evaluation of Diversification and
Timing Performance”, Finance India, March, pg. 155-174.
271
· Kannarkar, M., (2001) “Investment Behavior of Household Sector- A Study of
a rural block in West Bengal”, The Indian Journal of Commerce, pg. 58-65.
· Panda, T.K and Tripathy, N.P., (2001) “Customer Orientation in Designing
Mutual Fund Products- An Analytical Approach to Indian Market
Preferences”.
· Borensztein, E., and Gelos, R.G., (2001) “A panic prone pack? The Behavior
of Emerging Market Mutual Funds”.
· Narasimhan, M.S., and Vijayalakshmi, S., (2001) “Performance Analysis of
Mutual Funds in India”, Finance India, Vol. XV (1): pg. 155-174.
· Rajeswari, T.R., and RamaMoorthy, V.E., (2001) “An Empirical Study on
Factors influencing Mutual Fund/Scheme selection by Retail Investors”.
· Singh, Y.P., and Vanita, (2002) “Mutual Fund Investors’ Perceptions and
Preferences- A Survey”, The Indian Journal of Commerce, Vol. 55 (3), pg 8-
20.
· Detzler, M.L., (2002) “The Value of Mutual Fund Rankings to the Individual
Investor”, Journal of Business and Economic Studies, Vol. 8 (2), Pg 48-72.
· Drazin, R., and Rao, H., (2002) “Harnessing Managerial Knowledge to
Implement Product line Extensions: How do Mutual Fund Families allocate
Portfolio Managers to Old and New Funds”, Academy of Management
Journal, Vol. 45 (3), pg 609-619.
· King, J.S., (2002) “Mutual Funds: Investment of Choice for Individual
Investors? Review of Business, Vol. 23 (3) , pg. 35-39.
· Peterson, R.L., (2002) “Buy on the Rumor: Anticipatory Affect and
Investment Behavior”, Journal of Psychology & Financial Markets, Vol. 3 (4),
pg 218-226.
· Rajarajan, V., (2003) “Investors’ Demographics and Risk Bearing Capacity”,
Finance India, Vol. 17 (2), pg 565-576.
· Qamar, F., (2003) “Saving Behavior and Investment Preferences among
Average Urban Households”, The Indian Journal of Commerce, Vol.56 (1), pg
36-49.
· Rao, S.N., and Ravindran, M., (2003) , Working paper series, Indian Institute
of Technology , Bombay – Shailesh J Mehta School of Management (SIM)
and Tata Power Company Ltd.
272
· Singh, G., (2003) “Mutual Funds – Performance Evaluation of Equity Funds”,
The Indian Journal of Commerce, Vol. 56 (4), pg 47-55.
· Burch, T.R., Emery,D.R., and Fuerst, M.E., (2003) “What Can Nine-Eleven
tell us about closed-ended fund discounts and Investment Sentiment?”, The
Financial Review, Vol. 38, pg 515-529.
· Lenard, M.J., Akhtar, S.H., and Alam, P. (2003) “Mapping Mutual Fund
Investor”.
· Lynch, A.W., and Musto, D.K., (2003) “How Investors interpret Past Fund
Returns”, The Journal of Finance, Vol. LVIII (5), pg 2033-2058.
· Wilcox, R.T., (2003) “Bargain hunting or Star grazing? Investors’ Preferences
for Stock Mutual Funds”, Journal of Business, October Vol. 76 (4), pg 645-
663.
· Jatana, R., and Bosire, J.K., (2003) “Mutual Funds and Development- Pricking
the Bubbles with Mutual Fund priorities”, The Indian Journal of Commerce,
Vol 56 (4), pg 92-96.
· Saha, T.R., (2003) “The Indian Mutual Fund Management”, The Management
Accountant, October, pg 765-772.
· Sankaran, S., (2004) “Mutual Funds: Can you afford to ignore them?”,
Portfolio Organizer, Special Issue, June , SEBI (Mutual Funds) Regulations,
1996.
· Chander, S., and Singh, J., (2004) “Performance of Mutual Funds in India- an
Empirical Evidence”, ICFAI Journal of Applied Finance, June 2004, pg 45-63.
· Gupta, P., and Gupta, A., (2004) “Performance Evaluation of Select Indian
Mutual Fund Schemes: An Empirical Study”, The ICFAI Journal of Applied
Finance, December, pg 81-98.
· Sondhi, and Jain, (2004) “Financial Management of Private and Public Equity
Mutual Funds in India: An Analysis of Profitability”.
· Mahoney, P.G., (2004) “Manager-Investor Conflicts in Mutual Funds”,
Journal of Economic Perspectives, Vol. 18 (2), pg 161-182.
· Rouwenhorst, K.G., (2004) “The Origins of Mutual Funds”, Working Paper
no: 04-48, Yale International Centre for Finance.
· Crosnan, R., and Oneezy, U., (2004) “Gender Differences by Preferences”.
273
· Diacon, S., (2004) “Investment Risk Perceptions: Do consumers and Advisors
agree?”, International Journal of Bank Marketing, Vol. 22 (3), pg 180-199.
· Indro, D.C., (2004) “Does Mutual Fund Flow reflect Investor Sentiment?” ,
The Journal of Behavioral Finance, Vol. 5 (2), pg 105-115.
· Miller, K.D., and Chen, W., (2004) “Variable Organizational Risk
Preferences: Test of the March- Shapira Model”, Academy of Management
Journal, Vol. 47 (1), pg 105-115.
· Strader, J.T., and Ramaswami, S.N., (2004) “Investor Perceptions of
Traditional and Online Channels”, Communications of the ACM, July, Vol. 47
(7), pg 73-76.
· Singh, J., and Chander, S., (2004) “An Empirical Analysis of Perceptions of
Investors towards Mutual Funds”, Finance India, Vol. XVIII (4), December,
pg 1673-1692.
· Bagga, A., (2004) “Equity Mutual Funds: The long term Winners”, Portfolio
Organizer, Special Issue, June, pg 43-50.
· James, C., and Karceski, J., (2004) “Captured Money? Differences in the
Performance Characteristics of Retail and Institutional Mutual Funds”.
· Karlo, K., (2005) “The Demand for Money Market Mutual Funds”, Bank of
Finland Research, Discussion Papers.
· Manjesh, S., (2005) “Money Market Mutual Funds (MMMFs): A Macro
Perspective”, Portfolio Organizer, August, pg 41-56.
· Khorana, A., Servaes, H., and Tufano, P., (2005) “Explaining the Size of the
Mutual Fund Industry around the World”, Journal of Financial Economics,
Vol. 78, pg 145-185.
· Gaspar, Massa and Matos, (2006) “Favoritism in Mutual Fund Families?-
Evidence on Strategic Cross Fund Subsidization”.
· Rao, S.S.P., and Sekhar, G.V.S, (2006) “Leaders V/s Laggards- An Appraisal
of Select Mutual Funds”, The Indian Journal of Commerce, Vol. 59 (2), pg 84-
94.
· Bliss, R.T., Potter, M.E., and Schwartz, C., (2006) “Performance
Characteristics of Individual v/s Team Managed Mutual Funds”, Working
Paper series, Babson College and University of California.
274
· Cici,G., Gibson,S. and Moussawi. R., (2006) “For Better or Worse?: Mutual
Funds in side by side Management Relationships with Hedge Funds”,
Working Paper series, Mason School of Business and The University of
Pennsylvania.
· Ricciardi, V., (2006) “A research starting point for the new scholar: A unique
perspective of Behavioral Finance”, The ICFAI Journal of Behavioral Finance,
Vol. 3 (3), pg 6-23.
· Raju, (2006) “Mutual Fund Investments preferred or Induced”, Portfolio
Organizer, September, pg 33-40.
· Bodhanwala, R.J., (2006) “An Empirical Study on Analyzing How Fund
Managers in India Analyze Financial Reports with Special Focus on Quality of
Earning”, The ICFAI Journal of Applied Finance, Vol. 12 (9), pg 5-40.
· Chander, R., (2006) “Investment Manager’s Market Timing Abilities:
Empirical Evidences”, The ICFAI Journal of Applied Finance, Vol. 12 (8), pg
15-31.
· Gupta, S., (2006) “Real Estate Mutual Funds”, Portfolio Organizer, Special
Issue, June, pg 43-50.
· Ganesan, P., Rengamani, K.T. and Sajjad, H.M., (2006) “Can ULIP products
lure Mutual Fund Investors? A Case Study of Indian Retail Investor”, Journal
of Management Research, Vol. 1 (4), pg 39-48.
· Muttapan, P.K., (2006) “Factors influencing Mutual Fund Investment
Decision Making”, Southern Economist, September, pg 7-10.
· Ranaganathan, K., (2006) “A Study of Fund Selection Behavior of Individual
Investors towards Mutual Funds: with reference to Mumbai City”, The ICFAI
Journal of Behavioral Finance, Vol. 3 (2), pg 63-88.
· Sinha, S.K., (2006) “Investment preference and Behavioral Pattern of Mutual
Fund Investors”, Management Insight, Vol. II (2), pg 74-83.
· Rao, P.P., and Saikia, V., (2006) “Mutual Funds exploring the retail Customer
expectations”, The ICFAI Journal of Services Marketing, Vol. IV (2), pg 25-
33.
· Van de Venter, G., (2006) “Financial Planners Perceptions of Risk Tolerance”,
paper presented in the Financial Management Association’s Annual
Conference, 11-14 October.
275
· Badla, B.S., and Garg, A., (2007) “Performance of Mutual Funds in India- An
Empirical Study of Growth Schemes”, GITAM Journal of Management, Vol.
5 (4), pg 29-43.
· Noronha, M.R., (2007) “Performance Evaluation of Equity Based Mutual
Funds: A Case Study of Three Asset Management Companies in India”, The
Management Accountant, July, pg 527-534.
· Sahoo, P.K., and Hathy, P.R., (2007) “Prediction of Mutual Funds: Use of
Neural Network Technique”, The ICFAI Journal of Applied Finance, Vol. 13
(11), pg 5-15.
· Khorana, A, Servaes, H., Tufano, R., (2007) “Mutual Fund Fees Around the
world”.
· Miller, R.M., and Miller Risk Advisors, (2007) “Measuring the true cost of
Active Management by Mutual Funds”, Journal of Investment Management,
Vol. 5 (1).
· Cavezzali, E. and Rigoni, U., (2007) “Investor Profile and Asset Allocation
Advice”.
· Kamiyama, T., (2007) “India’s Mutual Fund Industry”, Nomura Capital
Market Review, Vol. 10 (4), pg 57-72.
· Sharan, V., (2007) “Reforming Mutual Funds”, The Indian Journal of
Commerce”, Vol. 60 (4), pg 77-86.
· Huang, J., (2007) “Dynamic Liquidity Preferences of Mutual Funds”.
· Rooij, M., Lusardi, A. and Alessie, R. (2007) “Financial Literacy and Stock
Market Participation”, DNB Working Paper No. 146, Michigan Retirement
Research Center Research Paper No. 2007-16.
· Veld, C., and Veld, Y.V., (2007) “The risk perceptions of Individual
Investors”.
· Thomas, T.C., (2007) “A Study on Service Quality on Investment Attributes
of Equity Oriented Mutual Funds”, Journal of Contemporary Research in
Management, Vol. 1 (1&2), pg 1-8.
· Vanjeko, R. (2007) “Investors’ Locus of Control and Risk Bearing Capacity”,
The ICFAI Journal of Applied Finance, Vol. 13 (1), pg 82-88.
· Kumar, G.D., and Dash, M., (2008) “A Study on the Effect of Macro
Economic Variables on Indian Mutual Funds”.
276
· Prasad, G.V., Kumar, V.P., and Maiya, U. (2008) “Growth of Mutual Fund
Industry in India”, Southern Economist, April 1-15.
· Karlsson, A., and Norden, L., (2008) “Investor Competence, Information and
Investment Activity”, Working paper series, Stockholm University.
· Martenson, R., (2008) “Are Men better investors than Women?- Gender
Differences in Mutual Fund and Pension Investments”, Journal of Financial
Services Marketing, Vol. 13 (1), pg 72-81.
· Al-Ajmi, J.Y., (2008) “Risk Tolerance of Individual Investors in an Emerging
Market”, International Research Journal of Finance and Economics, Issue 17,
pg 15-26.
· Alexander, G.J.,Jones, J.D. and Nigro, P.J., (2009) “Mutual Fund
Shareholders: Characteristics, Investor Knowledge and Sources of
Information.
· Bailey, W., Kumar, A., and Ng, D., (2009) “Behavioral Biases and Mutual
Fund Clienteles”.
· Miller, S., and Weber, M., (2009) “Financial Literacy and Mutual Fund
Investments: Who Buys Actively Managed Funds? “
· Giessen and Ruenzi (2009) “Sex Matters: Gender Differences in the Mutual
Fund Industry”.
· Simran Saini, Dr. Bimal Anjum and Ramandeep Saini, (2011), “Investors’
awareness and perception about mutual funds”, ZENITH International Journal
of Multidisciplinary Research Vol.1 Issue 1, May 2011.
· Dr Shantanu Mehta and Charmi Shah (2012), “Preference of investors for
Indian Mutual Funds and its performance evaluation”, Pacific Business
Review International, Vol 5, Issue 3.
· Dr. M.P.Desai and Mayur Joshi (2013), “A Study about Awareness of Mutual
Funds Among the Investors of Navsari District”, Indian Journal of Applied
Research , Vol. 3 , Issue 1, pg no 13-15.
· Manasa Vipparthi and Ashwin Margam (2013), “Perceptions of investors on
mutual funds: A comparative study on public and private sector mutual
funds”, Research Journal of Business Management and Accounting, Vol. 2(2),
pg no. 036 – 047.
277
ANNEXURE-I
AMC wise Data on Folios as on 30-September-2010
Sr.No. Name of the AMC Income/ Debt Growth/ Equity Balanced Schemes Exchange Fund of Funds Grand Total
Oriented Oriented Traded Funds investing
Schemes Schemes overseas
1 AIG Global AMC (India) Pvt. Ltd. 1,273 82,203 - - 38,604 122,080
2 Axis Asset Management Company Ltd. 27,705 177,660 37,352 - - 242,717
3 Baroda Pioneer Asset Management Co. Ltd. 1,889 37,057 197 - - 39,143
4 Benchmark Asset Management Co. Pvt. Ltd. 114 4,827 - 122,906 - 127,847
5 Bharti AXA Investment Managers Private Ltd. 5,560 45,920 - - - 51,480
6 Birla Sun Life Asset Management Co. Ltd. 178,208 2,192,178 35,561 - - 2,405,947
7 Canara Robeco Asset Management Co. Ltd. 28,504 305,458 62,237 - - 396,199
8 Deutsche Asset Management (India) Pvt. Ltd. 11,562 77,710 - - 4,094 93,366
9 DSP BlackRock Investment Managers Pvt.Ltd. 47,303 1,375,660 29,519 - 117,362 1,569,844
10 Edelweiss Asset Management Limited 312 1,411 - - - 1,723
11 Escorts Asset Management Ltd. 1,277 9,789 14,043 - - 25,109
12 FIL Fund Management Private Ltd. 8,911 898,799 - - 3,941 911,651
13 Fortis Investment Management (India) Pvt. Ltd. 6,832 88,477 - - - 95,309
14 Franklin Templeton Asset Management (India) Pvt. 176,813 1,942,410 21,102 - - 2,140,325
15 HDFC Asset Management Co. Ltd. 359,316 3,453,298 361,629 24,751 - 4,198,994
16 HSBC Asset Management (India) Private Ltd. 22,075 388,356 - - 10,471 420,902
17 ICICI Prudential Asset Management Co. Ltd. 346,993 2,494,731 14,832 18,904 - 2,875,460
18 IDBI Asset Management Ltd. 397 39,483 - - - 39,880
19 IDFC Asset Management Company Pvt.Ltd. 33,181 463,022 - - - 496,203
20 ING Investment Management (India) Pvt. Ltd. 6,415 85,194 2,120 - 24,249 117,978
21 J.M. Financial Asset Management Private Ltd. 11,400 441,604 3,494 - - 456,498
22 JPMorgan Asset Management (India) Pvt. Ltd. 2,455 111,956 - - 1,245 115,656
23 Kotak Mahindra Asset Management Co. Ltd. 35,091 924,123 8,074 8 - 967,296
24 L&T Investment Management Limited 13,554 110,803 - - - 124,357
25 LIC Mutual Fund Asset Management Co. Ltd. 54,607 313,622 67,303 - - 435,532
26 Mirae Asset Global Investments (India) Pvt. Ltd. 1,242 43,424 - - 2,876 47,542
27 Morgan Stanley Investment Management Pvt. Ltd. 1,436 447,114 - - - 448,550
28 Motilal Oswal Asset Management Co. Ltd. - - - 16,436 - 16,436
29 Peerless Funds Management Co. Ltd. 15,155 - - - - 15,155
30 Pramerica Asset Managers Private Limited 1,338 - - - - 1,338
31 Principal Pnb Asset Management Co.Pvt. Ltd 25,077 859,702 12,035 - 6,443 903,257
32 Quantum Asset Management Co. Private Ltd. 447 3,745 - 5,428 - 9,620
33 Reliance Capital Asset Management Ltd. 328,599 5,891,016 981,361 50,448 - 7,251,424
34 Religare Asset Management Company Pvt. Ltd. 14,775 221,091 - 4,011 - 239,877
35 Sahara Asset Management Co. Private Ltd. 985 43,028 - - - 44,013
36 SBI Funds Management Private Ltd. 115,469 5,568,768 70,701 22,904 - 5,777,842
37 Shinsei Asset Management (India) Pvt. Ltd. 162 1,909 - - - 2,071
38 Sundaram BNP Paribas Asset Management Co. Lt d. 41,330 2,163,120 9,932 - 27,663 2,242,045
39 Tata Asset Management Ltd. 45,698 1,390,178 89,670 - - 1,525,546
40 Taurus Asset Management Co. Ltd. 3,357 169,572 - - - 172,929
41 UTI Asset Management Company Ltd 2,386,944 6,570,884 974,871 38,337 - 9,971,036
TOTAL 4,363,761 39,439,302 2,796,033 304,133 236,948 47,140,177
278
ANNEXURE-II
Dear Respondent,
For the study of Investors Perception towards Mutual Funds your cooperation is requested in
filling-in this questionnaire aimed at gaining insight into the interrelationship among these
variables. The information will be used for academic purpose only and will be kept
confidential.
Please tick at the place that matches your opinion.
1. Name :
2. Sex: Male Female
3. Contact No:
4. Age in completed years:
Below 30 31-40 41-50 Above 50
5. Marital Status:
Single Married Divorced
6. Qualification :
Under Graduate Graduate
Post Graduate Professional Degree
7. Occupation:
Professional Business Salaried Retired
8. Annual Income in Rs:
Below Rs.1, 00,000 1, 00,001-3, 00,000
3, 00,001-5, 00,000 Above 5, 00,000
9. How much do you invest annually (Approximately)
Less than 50,000 50,001 to 1, 00,000
Above 1, 00,000
10. How much familiar are you with investment markets?
a. No experience at all
b. Not very familiar, mainly invested in bank deposits.
c. Some experience, with experience investing in unit trusts, shares.
d. Wide experience with a range of investments in shares, bonds, Initial Public Offerings
(IPO's), derivatives, etc.
11. Rank the Objectives of the investment. Rank them From 1—4(1 for the most preferred to 4
the least preferred)
Savings
Tax Benefits
Portfolio Management
279
Balanced Risk
Potential Returns
12. Do you invest in Mutual Funds?

Yes No. If No, Directly go to Q.18
13. You prefer Mutual Fund Schemes over other investment avenues because:
Kindly encircle the number according to your rating where,
1 = Strongly Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, 5 = Strongly Disagree
Strongly Agree Neutral Disagree Strongly
Options
Agree Disagree
It is a good investment 1 2 3 4 5
instrument
It is better to invest in
Mutual funds rather than 1 2 3 4 5
investing directly in
shares
They give assured and
consistent return 1 2 3 4 5
They provide high return
with low risk
Less calculation is
required before investing 1 2 3 4 5
when compared to share
market.
Very simple to invest &
monitor fund 1 2 3 4 5
performance on a regular
basis
Mutual Funds provide the
1 2 3 4 5
benefit of cheap access to
expensive stocks
Mutual funds diversify
the risk of the investor by 1 2 3 4 5
investing in a basket of
assets
Professional fund
managers manage them
1 2 3 4 5
with in-depth research
inputs from investment
analysts
14. What advantages do you find when you invest in Mutual Funds? Give Priority
(1- Most Advantageous, 12- Least Advantageous)
Sr. No Option Rank
1 Professional Management
2 Diversification
3 Return
4 Potential Low Cost
5 Liquidity
6 Transparency
7 Flexibility
280
8 Wide Choice of Schemes
9 Tax Benefits
10 Well Regulated
11 Economies of Scale
12 Simplicity
15. What do you look before investing in a particular mutual fund scheme?
Past Performance (NAV) Ratings (by CRISIL, ICRA, Etc.)

Asset Management Companies (AMC) Expert Advice
Fund Manager
16. Rate the following factors as per your experience with Mutual Funds:
1 = Extremely Satisfied, 2 = Satisfied, 3 = Neutral, 4 = Dissatisfied, 5 = Extremely
Dissatisfied
Factors Extremely Satisfied Neutral Dissatisfied Extremely

Satisfied Dissatisfied
Return earned 1 2 3 4 5
Timeliness in getting
1 2 3 4 5
annual reports
Timeliness in dealings 1 2 3 4 5
Rights of unitholders 1 2 3 4 5
Grievance handling 1 2 3 4 5
Information availability 1 2 3 4 5
Options available 1 2 3 4 5
Performance of the Fund 1 2 3 4 5
Choice Of Schemes 1 2 3 4 5
Payment Options 1 2 3 4 5
Tax Benefits 1 2 3 4 5
Risks 1 2 3 4 5
Diversification 1 2 3 4 5
Returns Potential 1 2 3 4 5
281
Liquidity 1 2 3 4 5
Expert Guidance 1 2 3 4 5
17. Do you find following source of information relevant to analyze the performance of your
investment: (Please tick appropriate column)
1 = Extremely Relevant, 2 = Relevant, 3 = Neutral, 4 = Irrelevant, 5 = Extremely
Irrelevant
Extremely Relevant Neutral Irrelevant Extremely
Relevant Irrelevant
Monthly updates 1 2 3 4 5
Quarterly Results 1 2 3 4 5
Half yearly Reports 1 2 3 4 5
Annual Reports 1 2 3 4 5
Newspapers 1 2 3 4 5
AMFI website 1 2 3 4 5
Websites of respective
1 2 3 4 5
mutual funds
18. Indicate your perception on the given scale with regard to the following
1 = Strongly Agree, 2 = Agree, 3 = Neutral, 4 = Disagree, 5 = Strongly Disagree
Sr. Statements Strongly Strongly
Agree Neutral Disagree
No. Agree Disagree
Investors receives good quality advice

1 1 2 3 4 5
from distributor
Management fee charged by AMC is

2 1 2 3 4 5
reasonable
Entry /Exit load is reasonable in

3 1 2 3 4 5
comparison to the return earned
Advertising and performance portrayal

4 1 2 3 4 5
is often misleading
There is need to simplify the

5 1 2 3 4 5
information provided to unit holders
Scheme’ performance is linked with

6 1 2 3 4 5
governance of mutual fund
Investment in mutual fund units should

7 1 2 3 4 5
be for a longer period
Like in a company, mutual fund

8 investors should have say in the 1 2 3 4 5
management of mutual fund
Attending investor educational

9 1 2 3 4 5
programme is beneficial
282
Sr. Strongly Strongly
Statements Agree Neutral Disagree
No. Agree Disagree
There is no direct regulatory control on

10 1 2 3 4 5
distributors
19. You have not invested in mutual funds because:
a. It is not a lucrative investment instrument.

b. No satisfactory return on investment when compared to other investment instruments.
c. No safety for funds invested.
d. Risky investment instrument.
e. No / Less Liquidity.
f. No knowledge about how to invest.
g. No knowledge about where to invest / investment centres.
h. No Mutual Fund investors’ education & service centre.
i. It is related to share market, so it is very risky and the returns are not guaranteed.
20. According to you, which one do you rate as the best investment instrument?
Savings Bank Fixed Deposit Shares/Debentures
Gold/Silver Postal savings Real Estate
Insurance Others ______________
Thanks for your co-operation.....
283

14 Summary PDF

Uploaded by

Copyright:

Available Formats

14 Summary PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

14 Summary PDF

Uploaded by

Copyright:

Available Formats

SUMMARY AND SUGGESTIONS

6.1 Summary of Findings and Conclusions

· Qualification is not independent of the perception about good quality advice

· Sex is not independent of monthly updates as a source of information for

· Age is not independent of monthly updates as a source of information for

· Marital status is not independent of monthly updates as a source of

· Qualification is not independent of monthly updates as a source of information

· Occupation is not independent of monthly updates as a source of information

· Annual income is not independent of monthly updates as a source of

The variables like Timeliness in getting Annual reports, Availability of options,

On close examination of the demographic variables with respect to the preferred

Please tick at the place that matches your opinion.

12. Do you invest in Mutual Funds?

Past Performance (NAV) Ratings (by CRISIL, ICRA, Etc.)

Factors Extremely Satisfied Neutral Dissatisfied Extremely

Performance of the Fund 1 2 3 4 5

Investors receives good quality advice

Management fee charged by AMC is

Entry /Exit load is reasonable in

Advertising and performance portrayal

There is need to simplify the

Scheme’ performance is linked with

Investment in mutual fund units should

Like in a company, mutual fund

Attending investor educational

There is no direct regulatory control on

19. You have not invested in mutual funds because:

a. It is not a lucrative investment instrument.

Thanks for your co-operation.....

You might also like