Mobilisation Saving Through Mutual Fund

Mobilisation of savings through mutual fund
CHAPTER 1
INTRODUCTION
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1.1 INTRODUCTION
A mutual fund is a form of collective investment. It is a trust that pools the savings
of a number of investors who share a common financial goal. It collects the savings from the
small investors, invest them in government and other corporate securities and earn income
through interest and dividends, besides capital gains. Mutual fund is a collective savings
scheme. It place an important role in mobilising the savings of the small investors and
channelling the same for productive ventures in the Indian economy. Each fund is divided in to
equal portions or unit. Units are allotted to the person in proportion of his investment in mutual
fund. Each fund is a pool of diversified securities.
A mutual fund is nothing more than a collection of stocks and or

bonds. A mutual fund is a professionally managed type of collective investment scheme that
pools money from many investors to buy stocks, bonds, short-term money market instrument,
and/or other securities. It is made up of money that is financial intermediary. Savings of
investors are collected and these funds are invested in a large and well diversified portfolio of
securities such as money market instruments, corporate and government bonds and equity shares
of join stock companies. In other words a mutual fund is just the connecting bridge or a financial
intermediary that allows a group of investors to pool their money together with a predetermined
investment objective .The mutual fund will have a fund manager who is responsible for
investing the gathered money into specific securities..When we invest in mutual fund, we are
buying units or portions of the mutual fund and thus on investing becomes a shareholder or unit
holder of the fund .mutual fund emerged as professional financial intermediaries bridging the
time and skill constraint. They have a who identify the right stocks and debt instruments and
construct a portfolio that promises to deliver the best possible ‘consttrained’returns at the
minimum possible cost. In effect, it involves outsourcing the management of money.
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1.2 STATEMENT OF THE PROBLEM
In recent the mutual fund scheme could attain from the investors and whether this financial
asset is worth investing is the main problem before the common individual investors. They are
eagerly waiting to get a clear and real picture of the growth and success dimensions of the
industry.
While making an investment An investor considering investment in securities is facing with

the problem of choosing an investment from a large number of securities and how to allocate his
funds over this group of securities. The investors are confused of various kinds of securities, his
excess of wealth and rise of various investment schemes, variation in financial instruments, tax
policy of government, different investment strategies, lack of awareness and knowledge among
the investors, emotional attachment to money, lack of financial inclusion, traditional thinking,
fear of loss and risk and return characteristics of schemes.. The investors try to get maximum
return with minimum risk by choosing a better investment schemes.
As in case of an investor while making an investment, faces a problem in

relation with selection of appropriate scheme of investment. That means there exist a problem of
selecting a better scheme that make better return and safety for the investor.. An investor need to
make investment in a scheme which maximizes the return and minimizes the risk. So this study
focused on the “mobilisation of savings through mutual fund” and the study makes an attempt to
analyses the problem of investors in relation with the management of their individual securities.
1.3 OBJECTIVES OF THE STUDY
➢ To study the role of mutual fund in the mobilization of savings.

➢ To analyse the awareness level of investors of mutual fund.
➢ To examine the structure and growth pattern of mutual fund industry.
➢ To analyse the attitude of mutual fund investors towards the factors like safety, liquidity,
tax benefits, returns and savings
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1.4 SIGNIFICANCE OF THE STUDY
Mutual fund industry is of recent origin in India and is growing very fast to emerge as a
major player in mobilisation of savings. Investors have been showing keen interest by
subscribing to various mutual fund schemes anticipating higher returns and capital gain. At the
same time some of the schemes are failing due to some or other reasons. Investors as well as the
public are curious about the performance of various mutual fund schemes. Almost all of the
Business Dailies have regular articles and columns on the functioning and evaluation of various
mutual funds and there are umpteen numbers of academic research and publications. But no
comprehensive study was made on the mutual fund industry of Malappuram till date. This study
is indented to fill this gap and help the investor public, whose saving potentials are increasing, to
invest their savings, which may help mobilising resources for the economic development of the
country.
1.5 HYPOTHESIS USED
➢ H0: Experience of investing in mutual fund is identical terms of gender.

➢ H0: The two variables that the gender of the respondents and expectation from mutual
fund scheme are independent.
➢ H0: Level of satisfaction of the respondents is identical in terms of occupation of the
respondents.
1.6 SCOPE OF THE STUDY
A Mutual is a trust that pools the savings of a number of investors who share a common
financial goal. The money thus collected is then invested in capital market instruments such
shares, debentures and other securities .thus mutual fund provide so many benefit to the
investors that include it provide better return and safety and also tax benefit, capital appreciation
,regular income ,it provide security and safety to the investor .They give assured and consistent
return they provide high return with low risk.
Mutual fund diversifies the risk of the investor by investing in a basket of asset. Thus various
mutual fund scheme provide various benefit to the investor there by increase economies of scale
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of the investor .and also it provide the benefit of cheap access to expensive stocks. The fact that
investing in mutual fund lead to economic development of the country.
1.7 RESEARCH METHODOLOGY
Title of the study: “mobilisation of savings through mutual fund" The research
methodology is a way to systematically solve the research problem. It may be understood as
a science of studying how research is done systematically. This uses various instruments for
performing the research operations and it deals with research design, data collection methods
and various statistical tools.
1.7.1 SOURCES OF DATA
Primary Data
Primary data are those data which are collected for the first time. They are original in
character and are collected by the researcher. The primary data has been collected with the help
of questionnaire which is distributed and collected from the respondents of Nilambur area.
Those investors having Systematic Investment Plan has been selected for data collection.
Secondary Data
Secondary data are those data which have been already collected, tabulated and presented in
some form by someone else for some specific purpose . Secondary data are collected from
various websites, SEBI bulletins, RBI bulletins, various mutual fund websites, general
discussion with brokers of BSE, NSE etc.
1.7.2 SAMPLING DESIGN AND SIZE
The sampling technique involved convenience sampling. Convenience sampling is a non-

probability sampling technique where subjects are selected because of their convenient
accessibility proximity to the researcher. This sample is used because it allows the researcher to
obtain basic data and trends regarding his study without the complications of using a
randomized sample. This sampling technique is also useful in documenting that particular
quality of a substance or phenomenon occurs within a given sample. Such studies are very
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useful for detecting relationships among different phenomena. The sample size considered for
the study is 80. The respondents are selected from the malappuram district.
1.7.3 TOOLS FOR ANALYSIS
To analyse the data obtained through primary data, the study itself used the mathematical
and statistical tools.
• Mann Whitney u test

• Kruskal wallies test
• Henry garret ranking.
• Chi-square
• Weighted Average Ranking
• Percentage
• Spearman’s ranking
1.7.4 TOOLS FOR PRESENTATION
• Tables
• Pie diagram
• Bar diagram
• Doughnut
1.8 AREA OF THE STUDY
The research concentrated in MALAPPURAM district.
1.9 PERIOD OF STUDY
The duration of the project study is 21 days.
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1.10 LIMITATIONS OF THE STUDY

➢ The study is based mainly on the data collected through primary sources
provided by the consumer in the form of answering questionnaire, so it may have
chances of errors.
➢ The study is based on secondary resources provided by the company and also
through the internet. Here there are chances of errors.
➢ The study is conducted by using some samples i.e., 80 respondents from the
number. So may have some bias of opinions of respondents.
➢ Limited time for study
➢ Sampling error
➢ Most of the respondents are educationally backward.
➢ Most of the respondents are not interested in answering the questionnaire.
➢ The study limits its scope to only Malappuram District.
➢ The sample size of the study is 80 respondents.
➢ The respondents are not ready to disclose their full investment details.
However sincere effort has been to collect the data and

interpret the same in the right perspective.
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1.11 CHAPTER PLAN
The present study is divided into five chapters. Following are the details showing.
Chapter 1:
INTRODUCTION
Chapter 2
REVIEW OF LITERATURE
Chapter 3
INDUSTRY, COMPANY, PRODUCT PROFILE AND THEORATICAL FRAME

WORK
Chapter 4:
DATA ANALYSIS AND INTERPRETATION
Chapter 5:
SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSION
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CHAPTER 2
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PRITIMAN (2016) Conducted a study of investors perception towards mutual fund in the
city of Aurangabad by collecting primary data from thirty professionals like those who wants
invest in mutual fund and the investment options in Aurangabad city This study aims at to
know the investors view towards mutual fund to know the awareness of mutual fund in
Aurangabad people and to know the preference of people for investment it founds that investors
are not choosing or feeling confident in investing in mutual fund because they think that mutual
fund is risky than other investment option the awareness level of mutual fund among the
investors are very low because of only having the partial knowledge about the mutual fund
which prevent them to invest in mutual fund to avoid risk bearing factor and lose of money. The
preference of investors is in fixed deposit because they feel that it provide safely and fixed
returns and no loss of money. The main reason for not selection of mutual fund investments is
share market uncertainties and risk associated with it
NUTAN VIJAY PASALKAR (2015) Conducted a comparative study of mutual fund

investment Vs equity investment of Indian individual investors with the main objective of
compare the mutual fund investment with direct equity investment and also study the preference
of the individual investors investing in mutual fund and present practices of mutual fund
investors in pune city 100 respondents from pune city were selected for conducting the study,
simple random sampling method is used to collect the primary data. This study found that a
remember able increases in the mutual fund investors but direct equity investment is more
favoured by the individual investors as compared to the mutual fund open ended schemes are
popular and preferred mutual fund scheme because of the flexibility and freedom
DR.RAJESH KUMAR AND NITINGOEL (2014) In their study attempted to analyse

the purpose behind making investment factors considered before making investment and method
used for evaluating the performance of mutual fund defielencles in functioning of mutual fund
and investors perception about future prospect of fund growth. Income and liquidity are the
important objectives of the mutual fund investment are found bye the study and absolute return
on the mutual fund scheme as the basis for evaluating their performance.
PREETHKHIFOLIYA (2014) Studies the investors awareness and perceived risk attitude
towards mutual fund. An empirical study in Delhi. The target sample was 200 respondents in the
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age group og 25.55 in Delhi. Both primary and secondary sources of data are used in the study.
The study aims at to explore risk appetiteS of the respondent to understand the preferred type of
mutual funds. They found that the people are aware about the mutual fund but a very list
numbers of investors are in mutual fund Male investors are willing to take risk for wealth
maximisation than Female investors are do not ask the assistance of consultants advisors due to
high consultation fee
PRITAM .P. KOTHARI AND SHIVAGANGA.C.MINDARGI (2013) studied the

investors attitude towards mutual fund with special reference to investors in Solapurcity. This
study provides future of mutual funds industries information as well as awareness level among
people and it also helps the management as how to the mutual funds are performing in the
current market situation . This study is descriptive in nature based on survey method by using
both primary and secondary data. Primary data is collected from 200 respondents from
solapurcity through questionnaire. The study shows that investors are ready to take risk and
change the traditional pattern of investment. The half of the population is not interested to invest
in mutual fund from the two hundered respondents. the main sources of information are the
financial advisors and advertisement in media
G. PRATHAB AND DR.A.RAJMOHAN (2013) Conducted a study on status of

awareness among mutual fund investors in Tamilnadu to find the investors awareness regarding
mutual fund investment and measure the investors level of satisfaction towards mutual fund
investment. The sample size used for the study is 500 investors of Tamilnadu Where spread 5
different districts namely Cuddalore, Coimbatore, Chennai, Madurai and Trichy. They are
identified for the study is by using purposive sampling method. This study found that investors
have high level awareness and positive approach towards investing in mutual fund
GOURAVAGARVAL AND DR MINI JAIN (2013) conducted a study on investor’s

performance towards mutual fund in comparison on other investment avenues with the objective
of to find the most preferred investment avenue of the investors of Madhura over all criterions
of investors regarding investment. Main bases of different investment avenues and investors
preference towards mutual fund. They found that real estate is the most preferred Investment
Avenue and the criteria for investment is mainly fund because of the high return from the
investment
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DR.BINOD KUMAR SINGH (2012) Conducted a study on investors attitude towards

Mutual fund as an investment option with the objective of analyse the impact of various
demographic Factors on investors attitude towards mutual fund and factors responsible for the
selection of mutual fund as an investment option. The study shows that most of the respondents
are confused about the mutual fund and not make any awareness about the various function of
mutual fund. Demographic factors are gender income and level of education have influence on
investors attitude and age and occupation are not influenced by the investors return and liquidity
are the main factors responsible for the selection of mutual fund and followed by the flexibility
transparency and affordability. He also found that in India there is a lot of scope for the growth
of mutual fund
JAYABRATA BANERJEE AND SWARNENDU ROY (2012) Conducted a technical

analysis towards customer perception on mutual fund products with collecting response from
1051 respondents covering different group of investors the study found that customer orientation
is necessary in the market small investors are buy mutual fund due to the multiple reason
depending upon customers risk return trade off the reason for investing in mutual fund is
reduction in the bank interest rates high degree of volatility in Indian stock market and bond
market also in recession due to its interest party. So investors are looking for an attractive
investment which provide higher return and safty
DR.SARITHABAHL AND MEENAKSHRANI (2012) Has done a comparative analysis

of mutual fund scheme in India. They investigated the performance of 29 open ended, growth
oriented equity schemes for the period from April 2005 to March 2011 Monthly NAV of
different schemes have been used to calculate the returns from the fund scheme BSE- Sense is
used for market portfolio. The result also shows 14 out of 29 mutual fund schemes are
underperformed. These scheme were facing diversification problem
DR.NISH SHARMA (2012) conducted a study on Indian investor’s perception towards

mutual funds. The data is collected through structured questionnaire from 250 respondents
online as well as in person this study analyse the investors perspective towards investment in
mutual fund to understand the desirable characteristics of mutual fund schemes to know the
various factors that may affect selection of mutual funds directly or indirectly and to present a
summarised picture of different qualitative aspects which are essential to secure investors
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patronage to mutual fund. The study found that all the benefits given by the mutual fund and
sponsor related attributes monetary benefits given by the mutual fund and sponsor related
attributes. The mutual fund companies are expected ensure full disclosure and regular updates of
their relevant information with the assurance of safety and monitory benefits for securing the
patronage of Indian investors
MRS. PURNIMA UMESH MEHTA (2011) studied the profile and perception of
investors towards mutual funds in the selected cities of Gujarat. It focuses on investor’s
perception towards mutual funds in cities of Sural Ahmadabad and Vadodara. The main
objective of the study is to study the perception of investors towards mutual fund and subsidiary
objectives are to identify the problems of investors in investing their money in mutual fund
scheme to analyse the investors level of fulfilment regarding mutual fund to examine the pattern
of investment and the investors preference with regards to mutual fund Vs other investment
products. The study reveals that main purpose of investment in mutual fund is children
education retirement plan and tax planning. People are more invested in growth scheme of
mutual fund
SIMRANSAINI, DR.BIMALANJUM AND RAMAN DEEP SAINT (2011) where

conducted a study on investors awareness an perception about mutual fund to analyse the
growth of mutual fund industry in India and to analyse the investors awareness and perception
regarding investing in mutual fund and find the deficiencies in the working of mutual fund
industry. The study reveals that mutual fund industry task is to convert the potential investors
into the reality investors and new and innovative schemes launched for increasing investor’s
confidence. It will lead to the overall growth and development of the mutual fund
DR.BINOD KUMAR SINGH AND ASHUTOSKR.JHA (2009) Conducted a study on

awareness and acceptability of mutual fund to find the awareness and acceptability of mutual
found among investors and factors considered by the investors which investing in the mutual
fund. They found that large numbers of people are aware about mutual fund and they considered
it as safe. The factors behind the investment in mutual found are wealth creation, Tax and steady
income Factors considered by investors before investing in mutual found are security, liquidity
high return
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CHAPTER 3
INDUSTRY, COMPANY PROFILE AND

THEROTICAL FRAMEWORK
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INTRODUCTION
Financial markets have become more complex and sophisticated.

In order to be successful, investors need an intermediary who provides
the required knowledge and professional expertise. The concept of mutual fund
emerged to play this role of intermediary. In the previous chapter, we have reviewed
the available literature on mutual funds and mobilisation of savings. In
continuation of that chapter, in this chapter, an attempt is made to explain
the fundamental concepts of mutual funds in general and its working and
regulation in the Indian context.
CONCEPT OF MUTUAL FUND
Mutual fund is an investment vehicle that is made up of a pool of funds collected from
many investors for the purpose of investing in securities such as stock, bonds, money market
instrument and similar assets. Each shareholder participates proportionally in the gain or loss of
the fund.
Mutual fund units or shares are issued and can typically be purchased redeemed as
needed at the fund’s current Net Asset Value (NAV) per share, which is sometimes expressed as
NAVPS. Mutual funds as an intermediation mechanism and products play an important role in
India’s financial sector development. Apart from pooling resources from small investors, they
also provide informed decision making mechanism to them. Thus they contribute to not only
financial sector participation, but also financial inclusion and thereby enhance market
efficiency. Additionally they contribute to financial stability and help in enhancing market
transparency.
While the mutual fund is a collection of money, it requires some person or body to
mobilize and manage these assets. This entity is usually an organization, aptly known as Asset
Management Company (AMC). The AMC is thus the physical entity, the organization and the
company, which generates the collective investments from the public with a view to invest in
securities and generate returns. By virtue of its mobilization function, the AMC has offices or
branches in number of cities. These branches collect money from investors and are one of the
visible faces of mutual fund. As this money has to be invested and managed, the AMC has an
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investment team. The head of this team, the fund manager or the chief investment officer is
another visible face of the mutual fund. The fund manager is at the head of the decision making
process which takes strategic and tactical decisions on where to invest.
Concept of Mutual Fund
Many investors with common financial

objectives pool of their money
Investors on a proportionate basis, get mutual

fund units for the sum contributed to the pool
The money collected from investors is invested

into shares, debentures and other securities by
the fund manager
The fund manager realizes the gains or losses,

and collects dividend or interest income
Any capital gains or losses from such

investments are passed on to the investor on
proportion of the number of units held by them
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DEFINITIONS
Different scholars have defined Mutual Fund differently. Frank K. Reilly has defined
mutual fund as an investment company, which pools funds belonging to many
individuals that is used to acquire a collection of individual investments such
as stocks, bonds, other publicly traded securities. John A. Halin defines it as a major
type of investment-company that pools the funds of investors who are seeking
some general investment objective and invest them in a number of
frequently traded different types of securities. Mutual fund is the institution, which
collectively manages the funds from different small investors. It mobilizes savings
from the public and provides those attractive returns, security and liquidity by investing
in capital market. It is a fund established in the form of a Trust by a sponsor to
raise monies by the Trustees through the sale of units to the public under one
or more schemes for investing in securities. It is a diversified portfolio of stocks,
bonds, of other securities run by a professional money manager or, in some
cases, a management teams. It provides instant diversification in a given
area within objectives laid. These offer a variety of diversified options for investments
looking into varied risks and returns Regulation, 2(q) of the Securities and Exchange
Board of India (Mutual Funds) Regulations, 1996 defines a mutual fund as a f und
established in the form of a trust to raise monies through the sale of units to the public
or a section of the public under one or more schemes for investing in securities,
including money market instruments". Thus a mutual fund is an institutional device or
an investment vehicle through which, the investors pool their funds under the
direction of an investment manager. These funds are invested in wide variety of
portfolios of securities in such a way as to minimize risk, while ensuring safety and steady
returns.
ADVANTAGES OF MUTUAL FUNDS
➢ Portfolio diversification
➢ Professional management
➢ Reduction of risk
➢ Liquidity
➢ Flexibility & convenience
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➢ Reduction in transportation cost

➢ Safety of regulated environment
➢ Choice of schemes
➢ Transparency
DISADVANTAGES OF MUTUAL FUND
➢ No control over cost in the hands of an investor

➢ No tailor-made portfolios
➢ Managing a portfolio funds
➢ Difficulty in selecting a suitable fund schemes
HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY
The mutual fund industry in India started in 1953 with the formation of unit trust of India,
at the initiative of Government of India and reserve bank. Though the growth was slow, but it
accelerated from the year 1987 when non-UTI players entered the industry.
In the past decade, Indian mutual fund Industry had seen a dramatic improvement, both
qualities wise as well as quantity wise. Before, the monopoly of the market had seen ending
phase; the Assets under Management (AUM) was Rs67 billion. The private sector entry to the
fund family raised the Annum to Rs. 470 billion in March 1993 and till April 2004; it reached
the height if Rs.1540 billion.
The Mutual Fund Industry is obviously growing at a tremendous space with the mutual fund
industry can be broadly put into four phases according to the development of the sector. Each
phase is briefly described as under.
First Phase-1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament t Reserve Bank of
India and functioned under the Regulatory and administrative control of the Reserve bank of
India. In 1978 UTI was de-linked from the RBI and the Industrial development bank of India
(IDBI) took over the regulatory and administrative control in place of RBI. The first scheme
launched by UTI was until scheme 1964. UTI had Rs.6, 700 cores of assets under management
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Second Phase-1987-1993(Entry of Public Sector Funds)
1987 marked the entry of non-UTI-public Sector mutual funds set up by public sector
banks and life Insurance Corporation of India (LIC) and General Insurance Corporation of
India (GIC). SBI Mutual Fund was the first n o n - UTI Mutual Fund established In
June 1987 followed by Can bank Mutual Fund (Dec 87) Punjab National Bank Mutual
Fund (Aug 89), Indian Bank Mutual Fund (Nov 89). Bank of India (Jun 90).Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 white GIC had set up
its mutual fund in December 1990. At the end of 1993, the mutual fund Industry had assets
under management of Rs.47, 004 crores.
Third Phase-1993-2003(Entry of Private Sector Funds)
1993 was the year in which the first Mutual Fund Regulations came into being, under which
all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari
pioneer (now merged with Flanklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and
revised Mutual Fund Regulations in 1996, The Industry now functions under the SEBI (Mutual
Fund) Regulations 1996. As at the end of January 2003, there were 33 mutual funds with total
assets of Rs. 1.21,805 crores.
Fourth Phase-since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust Of India with assets under management of Rs29.835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain Other
schemes.
The second Is the UTI Mutual Fund Ltd, sponsored by SBI,PNB,BOB and LIC.It is
registered with SEBI and functions under the Mutual Fund Regulations. Consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage assets of
Rs.153108 cranes under 421 schemes.
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STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY:
The Indian mutual fund Industry is dominated by me Unit Trust of India and which has a
total corpus of Rs 700bn collected from more than 20 million Investors .The UTI has many fund
/schemes In all categories i.e. equity, balanced, Income etc with some being The NIS Academy,
Aurangabad. Open ended and some being closed ended. The united scheme 1964 commonly
referred to as US64, which is a balanced fund, is the biggest scheme with a corpus of about Rs
200bn URI was floated by financial institution and is governed by a special act of the Parliament.
Most of Its Investors believe that the UTI is government owned and controlled which, while
legally Incorrect. is true for all practical purposes.
The second largest categories of mutual funds are the ones floated by nationalized banks.
Can bank Asset management floated by Canara Bank and SBI Funds Management
floated by the State Bank of India are the largest of these. GIC AMC floated by General
Insurance Corporation and Jeevan Bima Sahayog AMC floated by the LIC are some of the
prominent ones. The aggregate corpus of funds managed by this category of AMC's is about Rs
150 billion.
The third largest categories of the mutual funds are the once floated by me private sector
and by the foreign asset management companies. The largest of these are Prudential ICICI
AMC and Birla SUN LIFE AMC. The aggregate corpus of the asset managed by this category of
AMC s is in excess of Rs 250bn.
RECENT TRENDS IN THE MUTUAL FUND INDUSTRY:
The most important in the mutual fund industry is the aggressive expansion of the foreign
owned mutual fund companies and the decline of the companies floated by the nationalized bank
and smaller private sector players. Many nationalized banks got into the mutual fund business In
the early nineties and go off to a good start due to the Stock market boom prevailing then.
These banks did not really understand the mutual fund business and they just viewed it
as another kind of banking activity. Few hired specialized staff and generally choose
to transfer staff from the parent organization. Some schemes had offered guaranteed
returns and their patent organization had to ball out these AMCs by paying large
amount of money the difference between the guaranteed and actual returns. The service
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level was also bad. Most of these AMCs have not been able to retain staffs, float, and
new schemes etc. and It Is doubtful whether barring a few expectations; they have
serious plans of confusing the activity in a major way.
The experience of some of the AMCs floated by private sector Indian companies was
also very similar. They quickly realized that the AMCs business is a business, which
makes money in the long term and requires deep pocketed support in the intermediate years.
Some have sold out to foreign owned companies, some have merged with the others and
there is general restructuring going on.
The foreign owned companies have deep pockets and have come in here with the
expectation of a long haul. They can be credited with introducing many new practices such as
new product innovation, sharp improvement in the service standards and disclosure, usage
of technology, broker education etc. In fact they have forced the Industry to upgrade itself and
service levels of the organization like UTI have improved dramatically in the last few years in
response to the competition provided by these.
FUTURE SCENARIO:
The asset base will continue to grow at an annual rate of about 30 to 35% over the next few
years as investor’s shift their asset from banks and other traditional avenues. Some of
the older public and private sector players will either close or be taken over. Out of
ten public sectors players five will sell out, close down or merge with strong players in three
to four years. In the private sector this trend has already started with two mergers and one
takeover. Here too some of them will down their shutter in the near future to come.
But this does not mean there is no room for other players. The market will witness a
flurry of new players entering the area. There will be a large number of offers from
various asset management companies in times to come. Some big names like Fidelity,
Principal and Old Mutual etc. are looking at Indian market seriously. The mutual fund
industry is awaiting the derivation In India as this would enable it to hedge its risk and this in
turn would be reflected in its Net Asset Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund scheme to trade in
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derivatives. Importantly, many market players have called on me Regulator to initiate the
process immediately, so that the mutual funds can implement the changes that are required to
trade in derivates.
ROLE OF SEBI IN MUTUAL FUND:
In the year 1992 SEBI act was passed. The objectives of SEBI are - to protect the interest of
investors in securities, to promote the development of, and to regulate the securities market. As
far as mutual are concerned SEBI formulates policies and regulation the mutual fund to
protect the Interest of the investors. SEBI notified regulation for mutual funds in 1993.
Thereafter mutual fund sponsored by private sector entities were allowed to enter the capital
market, the regulations were fully revised in 1996 and been amended. Therefore, from time to
time SEBI has also issued guidelines to the mutual fund from time to time to protect the interest
of the investors.
All mutual funds whether promoted by public sector or private sector entities including those
promoted by foreign entities are governed by the same set of regulation. There is no distinction in
regulatory requirement of the mutual fund and all are subject to monitoring and inspecting
by SEBI. The risks associated with the scheme launched by mutual funds sponsored by these
entities are of similar type.
MUTUAL FUNDS CAN BE CLASSIFIED AS FOLLOW:
❖ Based on their structure

• Open ended funds: Investors can buy and sell the units from the fund at any point of time.
• Close-ended funds: These funds raise money from investors only once. Therefore,
after the offer Period, fresh investments cannot be made into the fund. If the fund is listed on
a stocks exchange the units can be traded like stocks (E.g., Morgan Stanley Growth
Fund). Recently, most of the New Fund Offers of close ended funds provided liquidity
window on a periodic basis such as monthly or weekly. Redemption of units can be made
during specified intervals. Therefore, Such funds have relatively low liquidity.
❖ Based on their Investment objective:
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• Equity funds: These funds invest in equities and equity related instruments, With
fluctuating share prices, such funds show volatile performance, even losses, However, short
term fluctuations in the market generally smoothens out in the long term, thereby on ring
higher returns at relatively lower volatility. At the same time, such funds can yield great
capital appreciation as, historically, equities have outperformed all asset classes in the
long term, Hence, investment in equity funds should be considered for a period of at least 3-5
years. It can be further classified as:
➢ Index funds: In this case a key stock market Index, like BSE Sensex or Nifty is
tracked. Their Portfolio mirrors the benchmark index both in terms of composition and
Individual stock weightages.
➢ Equity diversified funds: 100% of the capital is invested in equities spreading across
different sectors and stocks.
➢ Dividend yield funds: it is similar to the equity diversified funds except that they invest In
companies offering high dividend yields.
➢ Thematic funds: Invest 100% of the assets in sectors which are related through some
theme.
➢ Sector funds:invest 100% of the capital in a specific sector. e.g. - A banking sector fund
will invest in banking stocks.
➢ ELSS- Equity Linked Saving Scheme provides tax benefit tome investors.
• Balanced fund: Their investment portfolio includes both debt and equity. As a result, on
the risk-return ladder, they fall between equity and debt funds. Balanced funds are the
Ideal mutual funds vehicle for investors who prefer spreading their risk across various
Instruments. Following are balanced funds classes:
➢ Debt-oriented funds: Investment below 65% In equities.
➢ Equity-oriented funds: Invest at least 65% In equities, remaining in debt.
• Debt fund: They Invest only In debt instruments, and are a good option for Investors
averse to idea of taking risk associated with equities. Therefore, they invest
exclusively in fixed-income instruments like bonds, debentures, Government of
India securities; and money market instruments such as certificates of deposit (CD),
commercial paper (CP) and call money. Put your money into any of these debt funds
depending on your investment horizon and needs.
Page 23
➢ Liquid funds: These funds invest 100% in money market Instruments, a large
portion being Invested in call money market
➢ Gilt funds ST: They Invest 100% of their portfolio in government securities of and T-
bills.
➢ Floating rate funds: Invest in short-term debt papers- Floaters invest in debt
Instruments which have variable coupon rate.
➢ Arbitrage fund- They generate Income through arbitrage opportunities due to mis-
pricing between cash market and derivatives market, Funds are allocated to equities,
derivatives and money markets. Higher proportion (around 75%) is put in
money markets. in the absence of arbitrage opportunities.
➢ Gilt funds LT: They most 100% of their portfolio in long-term
government securities.
➢ Income funds LT: Typically, such funds invest a major portion of the portfolio
in long-term debt papers.
➢ MIPs: Monthly Income Plans have an exposure of 70%-90%to debt and an exposure
of 10%.30% to equities.
➢ FMPs: fixed monthly plans invest In debt papers whose maturity ls In line with that of me
fund.
INVESTMENT STRATEGIES:
❖ Systematic Investment Plan: under this a fixed sum is Invested each month on a fixed
date of a month, Payment is made through post-dated cheques or direct debit facilities.
The investor gets fewer units when the NAY is high and more units when the NAV is low.
This is called as the benefit of Rupee Cost Averaging (RCA).
❖ Systematic Transfer Plan: under this an Investor Invest in debt oriented fund and give
instructions to transfer a fixed sum, at a fixed Interval, to equity scheme of the same
mutual fund.
❖ Systematic Withdrawal Plan: If someone wishes to withdraw from a mutual fund
then he can withdraws fixed amount each month.
Page 24
RISK V/S. RETURN
RETURN SECTORAL FUNDS
EQUITY FUNDS
INDEX FUNDS
BALANCED FUND
DEBT FUNDS
LIQUID FUNDS
RISK
Page 25
MAJOR PLAYERS
❖ Bank sponsored
• Joint Ventures - Predominantly Indian
1. SBl Funds Management Private Ltd.
• Others
1. BOB Asset Management Co. Ltd.
2. Canbank investment Management Services Ltd,,
3. Asset Management Co, Private Ltd.
❖ Institutions
• Jeevan Bima Sahayog Asset Management Co, Ltd.
❖ Private Sector
• Indian
1. Benchmark Asset Management Co, Private Ltd.
2. Cholamandalam Asset Management Co, Ltd.
3. Credit Capital Asset Management Co, ltd.
4. Escorts Asset Management Ltd.
5. J. M. Financial Asset Management Private Ltd
6. Kotak Mahindra Asset Management Co, Ltd.
7. Reliance Capital Asset Management Ltd.
8. Sahara Asset Management Co- Private Ltd
9. Sundaram Asset Management Co.Ltd.
10.Tata Asset Management Ltd
• Joint Ventures - Predominantly Sudan
1. Birla Sun Life Asset Management Co.Ltd.
2. DSP MerriIl Lynch Fund Managers Ltd. ,
3. HDFC Asset Management Co. Ltd.
4. Prudential ICICI Asset Management Co. Ltd.
• Joint Ventures - Predominantly Foreign
1. ASH AMRO Asset Management (India) Ltd.
Page 26
2. Deutsche Asset Management (India) Private Ltd

3. Fidelity Fund Management Private Ltd.
4. Franklin Templeton Asset Management (India) Private Ltd_
5. HSBC Asset Management (India) Private Ltd,
6. ING Investment Management (India)Private Ltd,
7. Morgan Stanley Investment Management Private Ltd
8. Principal Pnb mot Management Co. Private Ltd-
9. Standard Chartered Asset Management Co. Private Ltd
WHO CAN INVEST?
Who can Invest in Mutual Funds In India, First of all, distributors need to be aware or
who mutual fund units. Mutual funds In India are open to investment by
❖ Residents including:
• Resident Indian Individuals.
• Indian Companies/Partnership Firms.
• Indian Trust/Charitable Institutions.
• Banks/Financial Institutions.
• Non-Banking Finance Companies.
• Insurance Companies.
• Provident funds.
• Mutual funds.
❖ Non-Residents Including:
• Non-Resident Indians, and Persons of Indian Origin.
• Overseas Corporate Bodies {OCBs) and
❖ Foreign entities, viz
• Foreign Institutional Investors(FlI) registered with SEBI
• Foreign Citizens/ entities are not allowed to Invest in mutual funds in
India.
Page 27
MUTUAL FUND INDUSTRY OF KERALA

There are no mutual funds with theirhead office in kerala. But, all of the mutual funds
of india have operation in kerala through either their own branches or agents. The main
business of these offices is concentrated in the major cities of kerala ,cochin, trichur,
trivandrum and calicut. The UTI itself has three main branches in kerala, in cochin, trichur
and trivandrum and many franchisee offices agents spread throughout the state. No
organisation collects statistics about mutual fund mobilisation from kerala. The GOVT of
kerala don’t have any statistics since there are no governmental agencies directly or
indirectly involved in the mobilisation of units of mutual funds. Mutual funds including
the UTI are not willing to share the information with the researcher in spite of the repeated
appeals and visits to their regional/head offices. Similar is the situation with the published
data, all of which compelled to limit the study to an empirical one.
SAVINGS
“Savings “are cash or physical products set aside for future use. People in rural and other low-
income communities, although poor, can save when they are guided and encouraged. In rural
communities, savings are made through traditional credit rotation groups, or purchase of
domestic animals.
FACTORS OF SAVINGS
The factors affecting savings are:
➢ The level of the real interest rate
➢ The level of per capita GDP
➢ Fiscal policy
➢ The proportion of labour remuneration in national income
➢ The distribution of income
Page 28
➢ Financial reforms
➢ Uncertainty
➢ The effects of taxation
➢ Demographic factors
➢ Pension plans
MOBILISATION OF SAVINGS
Mobilisation of savings is no matter how poor a person may seem s/he should be persuaded and
encouraged to save as the income rises for reasons earlier mentioned.
Mobilisation of savings is low income individuals in developing countries clearly express a

desire to build up savings. Saving therefore offer significant leverage for economic development
and self-sufficiency and are valuable to both microfinance institutions and their clients or
members.
MOBILISATION OF SAVINGS THROUGH MUTUAL FUND

Only by relating the savings and investment pattern of the people of the country the real
size, magnitude and significance of the mutual fund industry can be assessed. The role of
mutual funds in mobilising savings of the household should also be verified by analysing the
proportion of mutual fund
Savings is one of the factors influence financial development. The primary mode through
which this occurs is financial savings and in particular, intermediated financial savings. India
is one of the few countries today to maintain a steady growth rate in domestic savings.
Savings being the prime mover of economic development, Indian planners have always
focussed on this aspect of economic development. The Indian saving experience during the
period 1970-71 to 1998-99 was marked by a simultaneous secular increase in the rate of
Gross Domestic saving (GDS, as a percentage of GDP at current market prices) and the rise
in the rate of financial saving of the household sector and private corporate sector.
Page 29
ROLE OF MUTUAL FUNDS IN THE FINANCIAL MARKET

Mutual funds have assumed the important role as a financial intermediary mainly due
to the complex and risky environment of the stock market. They have to play a two-fold role
in the financial market, viz.,
➢ Promoter of capital market, and

➢ Intermediary of household savings
Promoter of capital market
A developed financial market is a necessary pre condition for the overall economic
development and mutual funds play an active role in promoting a healthy capital market. Mutual
funds increase liquidity in the money market. Mutual funds could change the proportion of
financial assets in the total annual savings, which increased from 23.7% in 1970-75 to 34.9% in
1980-85 and to 44.5% in 1993-99 . Mutual funds in India have created awareness among
investors about equity-oriented investment and its benefits.
Intermediary of household savings
Mutual funds are the fastest growing institutions in the household savings sector. The share of
mutual funds in household savings is one indicator of the importance of mutual funds in the
savings markets.
Page 30
CHAPTER 4
DATA ANALYSIS AND

INTERPRETATION
Page 31
INTRODUCTION:
This chapter deals with analysis and interpretation of data collected with the help of
questionnaire directly from the MUTUAL FUND investors. The present study intended to
examine MOBILISATION OF SAVING THROUGH MUTUAL FUND INVESTORS of in
Malappuram district.
The data is analysed and presented in the form of table with necessary interpretation
alongside. Various types of statistical methods are used for analysis of data. This analysis is
supplemented by explanation, tables and diagrams.
4.1 CLASSIFICATION OF RESPONDENTS IN ALL CLASSIFICATORY VARIABLES

Demographic profile of the respondent
Sl.nos variable No of percentage

respondent
1 Age below 35 16 20
Between 35 38 47.5
and 55
Above 55 26 32.5
Total 80 100
2 Gender Male 67 83.75
Female 13 16.25
Total 80 100
3 Educational Post graduate 8 10

qualification
Graduate 3 3.75
Under graduate 3 3.75
Professional 43 53.75
Technical 23 28.75
Total 80 100
Page 32
4 Occupation Govt sector 34 42.5
Pvt sector 21 26.25
Business 18 22.5
Agriculture 4 5
Others 3 3.75
Total 80 100
5 Residence Urban 4 5
location
Semi urban 55 35
Rural 21 7.5
Total 80 100
6 Annual income Above 5 lakh 46 57.5
3-5 lakh 28 35
Below 3 lakh 6 7.5
80 100
7 Annual Above 2.5 lakh 26 32.5

expenditure
2 - 2.5 lakh 44 55
Below 2 lakh 10 12.5
Total 80 100
TABLE 4.1 Source: Primary data
Page 33
INTEPRETATION
The study was conducted by taking a sample of 80 customers. Table 4.1 examines the
demographic profile of the respondents. It is clear from the analysis that majority respondents i.e.
,38 respondent are between 36 and 55.it means maximum belongings to that group. And
minimum number is 35 and below. And 26 respondent are belonging to above 55.
The above table executed that majority of the respondent are belonging to male 83.75%
and 13 respondents are belonging to female,
The above table shows that majority of the respondent are professional 43.and 23
respondent were technical and 8 respondent were post graduate. And 3 respondents were under
graduate respectively.
The above table show that majority of the respondent were govt sector (42.5%) and (26.25%)
are pvt sector and 22.5%are business. And 5%agriculture and 3,75% are others.
The above table show that majority of 55 respondents are belonging to semi urban location
and 21 respondents were rural area and 4 respondents were in urban area respectively.
The above table executed that majority of the respondent income were belonging to >5 lakh.
And 28 respondent are rs 3-5 lakh and 6 respondent were<3 lakh.
The above table show that majority of the respondents expenditure is belonging rs 2-2.5 lakh
and 26 respondent were rs 2.5 lakh and 10 respondent were <2 lakh.
Page 34
4.2 CLASSIFICATION ON THE BASIS OF PERCENTAGE OF SAVING INVESTED IN

MUTUAL FUND
Percentage of saving No of respondents Percentage

Up to 10% 17 21.25
10 -25% 26 32.5
25-50% 22 27.5
Above 50% 15 18.75
Total 80 100
Table 4.2 Source: Primary data
PERCENTAGE OF SAVING INVESTED IN MUTUAL FUND
Percentage
32.5
35
27.5
30
25 21.25
18.75
20
15
10
5
0
Up to 10% 10 -25% 25-50% Above 50%
CHART 4.2
Interpretation:
From the above table show that majority of the respondent will choose 10-to 25% as their
percentage on saving and then the respondent will choose 25-50% and then choose up to 10%
and then choose above 50%.
Page 35
4.3 CLASSIFICATION ON THE BASIS OF PERIOD OF INVESTING IN MUTUAL

FUND
Period No of respondent Percentage

Below 1 year 3 3.75
1 year to 3 year 18 22.5
3 year to 6 year 55 68.75
Above 6 year 4 5
Total 80 100
PERIOD OF INVESTING IN MUTUAL FUND
4 3
18
<1 year
1 year to 3 year
3 year to 6 year
55
>6 year
CHART 4.3
Interpretation:
From the above table show that majority of the respondent will prefer 3 year to 6 year as
investing in mutual fund (68.75%).and then 1 year to 3 year (22.5%).and then Above 6 year 5%
and Below 1 year (3.75%) respectively.
Page 36
4.4 CLASSIFICATION ON THE BASIS OF PRIMARY MOTIVE OF INVESTMENT
Under this study 8factors are used to find out the primary motive of investment that the
investors may prefer most. Hentry Garrett Ranking is used to identify the highly prefering
factor.
To apply Hentry Garrett Ranking Method, first arrange the data on the basis of rank get for each
factor. That means 1st rank to 8th rank for each problem factors. Then calculate Percent Position of
each rank by using the formula 100(Rij-0.5)/Nj. Rij stands for 1st, 2nd,3rd , 4th, 5th,6th
,7th, 8th Ranks. Nj stands for the highest rank given by the respondents. Here Nj is . Find out
Garrett Value for each Per cent Position from Garret Conversion Table. The number of
observation in 1st rank to 8th rank in each factor is multiplied with corresponding Garret Value
of Ranks. And calculate Garret Score of each factor by adding the multiplication result. Then
calculate average score by dividing Garrett Score with sample size. Highest average score is
given the 1st rank and this way sequentially gives the rank highest to lowest average score.
The following tables’ shows the motive of investment that the investors may
prefer most and respective average score with matching rank calculated on the basis of Garret
ranking method.
MOTIVES 1 2 3 4 5 6 7 8
Meet the emergencies 23 18 12 14 4 3 2 4
Meet educational expenses 25 14 8 12 6 2 4 9
Meet marriage expenses 12 16 10 8 16 9 4 5
Buy properties & durables,etc 3 12 14 17 12 8 10 4
Save tax 5 6 12 4 14 9 18 12
Start or expand business 6 7 9 12 10 12 14 10
Multiple purposes 4 3 13 10 12 22 10 6
Meet other expenses 2 4 2 3 6 15 18 30
Total 80 80 80 80 80 80 80 80
TABLE 4.4.1 Source: Primary data
Page 37
PER CENT POSITION AND GARETT VALUE
Rank 100(Rij-0.5)/Nj Per cent position value Garret value

1 100(1-0.5)/8 6.25 80
2 100(2-0.5)/8 18.75 67
3 100(3-0.5)/8 31.25 60
4 100(4-0.5)/8 43.75 53
5 100(5-0.5)/8 56.25 47
6 100(6-0.5)/8 68.75 40
7 100(7-0.5)/8 81.25 33
8 100(8-0.5)/8 93.75 20
TABLE 4.4.2
Per cent position values are computed by using the above formula for the 8 ranks given by the 80
respondents regarding primary motive of their investment. Then their respective garret values are
found out by using Henry garret table.
SCORE TABLE
Factors Total /80 Average score Rank

Meet the emergencies 4962/80 62.025 1
Meet educational expenses 4728/80 59.1 2
Meet marriage expenses 4400/80 55 3
Buy properties & durables,etc 4079/80 50.9875 4
Save tax 3586/80 44.825 7
Start or expand business 3737/80 46.7125 5
Multiple purposes 3725/80 46.5625 6
Meet other expenses 2783/80 34.7875 8
TABLE 4.4.3
Interpretation:
In the above table as per Henry garret ranking method, the factor Meet the emergencies has got
the first rank. Meet education expenses at the second position and meet marriage expenses is at
the third position. That shows primary motive of the investment is depend upon the meet the
emergencies.
Page 38
4.5 CLASSIFICATION ON THE BASIS OF SAVING HABIT OF RESPONDENT
Saving habit No of respondent percentage
Regular 2 2.5
Occasional 71 88.75
Not applicable 7 8.75
Total 80 100
Table 4.5 Source: Primary data
SAVING HABIT OF RESPONDENT
100
88.75
90
80
70
60
50
40
30
20
8.75
10
2.5
0
REGULAR OCCASIONAL NOT APPLICABLE
CHART 4.5
Interpretation:
From the above table it is show that most of the respondents are in occasional investors in mutual
fund(88.75%).and then the investors will prefer not applicable as case may be(8.75%).And then
the investors will regular investors in mutual fund (2.5%)
Page 39
4.6 CLASSICATION ON THE BASIS OF PREFERENCE OF THE INVESTOR
Factor RANK
1 2 3 4 5 6 7 8 TOTAL
Safety 12 30 22 12 4 0 0 0 80
Liquidity 10 18 22 15 8 7 0 0 80
Tax benefits 2 7 22 21 6 11 11 0 80
Return & savings 50 15 9 6 0 0 0 0 80
Performance of past schemes 0 0 1 5 8 14 10 42 80
Rating of MF by agencies 6 10 3 13 30 10 8 0 80
Recommendations of friends and 0 0 0 3 3 28 27 19 80
relatives
Advertisement 0 0 1 5 21 10 24 19 80
TOTAL 80 80 80 80 80 80 80 80 640
TABLE 4.6 .1 Source: Primary data
WEIGHTED AVEREGE
FACTORS TOTAL WEIGHT MEAN SCORE MEAN RANK

1 514 6.43 2
2 466 5.83 3
3 381 4.76 4
4 589 7.36 1
5 167 2.09 8
6 367 4.59 5
7 184 2.30 7
8 212 2.65 6
Interpretation:
From the above table shows that majority of respondents give first preference to Return &
savings. Secondly they prefer Safety. Third and fourth rank is given to Liquidity and Tax
benefits respectively. Subsequent ranks given to Rating of MF by agencies, Advertisement,
Recommendations of friends and relatives. Performance of past schemes is the least influencing
one, because it’s rank is 8.
Page 40
4.7 CLASSIFICATION ON THE BASIS OF AWARENESS ABOUT MUTUAL FUND

SCHEMES
The following table shows the awareness about mutual fund schemes. The weighted average is
used to rank the mutual fund schemes. Here the mutual funds schemes are analysed by taking the
units highly aware, aware, neutral lower aware and least aware.
M.F SCHEMES H.A A N L.A L.A likert Weight Rank

score ed avg
Balanced fund 20 20 28 12 0 288 3.6 4

Money market/Liquid fund 6 20 48 4 2 264 3.3 5
Tax saving scheme 18 30 30 2 0 304 3.8 2
Index funds 12 24 20 16 8 256 3.2 6
Growth/Equity oriented scheme 30 40 10 0 0 340 4.25 1
Income/Debt oriented schemes 25 31 4 13 7 294 3.67 3
Sector specific scheme 2 10 38 20 10 214 2.68 7
Interpretation:
From the above table shows that Growth/Equity oriented scheme get the first rank, and Tax
saving scheme get the second rank, and Income/Debt oriented schemes get the third rank and
Sector specific scheme get the last rank.
Page 41
4.8 CLASSIFICATION ON THE BASIS OF AWARENESS ABOUT INVESTOR

RIGHTS AND AMFI
The following table shows the awareness about investor’s rights and AMFI. The weighted
average is used to rank the investors awareness about their rights and AMFI. Here the mutual
funds schemes are analysed by taking the units highly aware, aware, neutral lower aware and
least aware.
INVESTORS RIGHTS AND H.A A N L.A L.A likert Weight Rank

AMFI score ed avg
Right to “proportionate beneficial

30 38 9 2 1 334 4.17 1
ownership”
Right to timely services
12 44 11 10 2 296 3.7 3
Right to information
35 23 6 11 5 312 3.9 2
Right to approve change in

20 25 15 12 8 277 3.46 5
fundamental attributes of the
Scheme
AMFI is an apex body of all asset
20 26 15 11 8 279 3.48 4
management companies
AMFI Protects and promotes the
15 17 22 18 8 253 3.16 6
interests of mutual funds as well
as their unit holders
INTERPRETATION:
From the above table shows that majority of respondents give first rank to Right
to“proportionate beneficial ownership”. Secondly they prefer Right to information. Third and
fourth rank is given to Right to timely services and AMFI is an apex body of all asset management
companies respectively. Subsequent ranks given to Right to approve change in fundamental
attributes of the scheme and AMFI Protects and promote the interests of mutual funds as well as
their unit holders.
Page 42
4.9 CLASSIFICATION ON THE BASIS OF SOURCES OF MUTUAL FUND
NO OF
SOURCES RESPONDENT PERCENTAGE
Advertisement 4 5
Peer group 6 7.5
Bank 12 15
Internet 13 16.25
Magazines 16 20
Financial advisors 29 36.25
Total 80 100
SOURCES OF MUTUAL FUND
Percentage
36.25
40
35
30 20
25 15 16.25
20
15 5
7.5
10
5
0
CHART 4.9
Interpretation:
From the above table it is show that majority of the respondent prefer financial advisors for
getting the sources of information related in mutual fund 36.25%.and then the investors will
prefer the magazines 20% and then prefer internet 16.25%.and then the investors will prefer the
bank for getting the information 15%.and then the investors will prefer peer group 7.5%.and then
only they aware in advertisement 5%.
Page 43
4.10 CLASSIFICATION ON THE BASIS OF FEATURE OF MUTUAL FUND
Under this study 5 factors are used to find out the factor of mutual fund which attracts the
investor. Hentry Garrett Ranking is used to identify the most attracting factor.
To apply Hentry Garrett Ranking Method, first arrange the data on the basis of
rank get for each factor. That means, 1st rank to 5th rank for each problem factors. Then calculate
Percent Position of each rank by using the formula 100(Rij-0.5)/Nj. Rij stands for 1st, 2nd,3rd ,
4th and5th Ranks. Nj stands for the highest rank given by the respondents. Here Nj is 5. Find out
Garrett Value for each Percent Position from Garret Conversion Table. The number of
observation in 1st rank to 5th rank in each factor is multiplied with corresponding Garret Value
of Ranks. And calculate Garret Score of each factor by adding the multiplication result. Then
calculate average score by dividing Garrett Score with sample size. Highest average score is
given the 1st rank and this way sequentially gives the rank highest to lowest average score.
The following tables shows the different factors of mutual fund which attracts the
investors and respective average score with matching rank calculated on the basis of Garret
ranking method.
SOURCES OF INFORMATION ABOUT THE FEATURE OF MUTUAL FUND
WHICH ATTRACT THE INVESTOR
FEATURES 1 2 3 4 5
Diversification
12 23 9 14 22
better return &safety
19 18 19 17 7
Tax benefit
12 15 30 13 10
Regular income
20 12 13 22 13
less risk 17 12 9 14 28
TOTAL 80 80 80 80 80
Calculate Per cent position =100(Rij-0.5)/Nj

Rij =1st,2nd, 3rd…………..5th ranks
Nj= Total rank given by respondent =5
Page 44
PER CENT POSITION AND GARETT VALUE
Rank 100(Rij-0.5)/Nj Per cent position value Garret value

1 100(1-0.5)/5 10 75
2 100(2-0.5)/5 30 60
3 100(3-0.5/5 50 50
4 100(4-0.5)/5 70 40
5 100(5-0.5)/5 90 25
TABLE 4.10.2
Per cent position values are computed by using the above formula for the 5 ranks given by the 80
respondents regarding the feature of mutual fund which attract the investor. Then their respective
garret values are found out by using Henry garret table.
SCORE TABLE
Factors Total /80 Average score Rank

Diversification 3840/80 48 4
better return &safety 4310/80 53.875 1
Tax benefit 4070/80 50.875 3
Regular income 4075/80 50.9375 2
less risk 3705/80 46.3125 5
TABLE 4.10.3
Interpretation:
In the above table as per Henry garret ranking method, the source of information better safety
and return has got the first rank. Regular income at the second position and tax benefit are at
third position. That shows the information on mutual fund is getting more for the better safety
and return.
Page 45
4.11 CLASSIFICATION ON THE BASIS OF PREFERENCE OF INVESTORS ON

MUTUAL FUND
CHOICE NO OF RESPONDENT PERCENTAGE

Open ended 69 86.25
Close ended 2 2.5
ETF exchange traded fund 9 11.25
Total 80 100
PREFERENCE OF INVESTORS ON INVESTMENT
Percentage
86.25
90
80
70
60
50
40
30
11.25
20 2.5
10
0
Open ended Close ended ETF exchange
traded fund
CHART 4.11
Interpretation:
From the above table show that majority of the respondent will prefer the open ended scheme
(86.25%).and then the investors will prefer the ETF exchange traded fund (11.25%).and some
respondents will prefer close ended scheme(2.5%.)
Page 46
4.12 CLASSIFICATION ON THE BASIS OF CHOICE OF INVESTORS ON FUND

SCHEME
CHOICE NO OF RESPONDENT PERCENTAGE

Growth fund 17 21.25
Large cap 7 8.75
Diversified 10 12.5
Gilt 5 6.25
Mid cap 5 6.25
Regular income 3 3.75
Liquid fund 33 41.25
Sector 10 12.5
Total 80 100
.CHOICE OF INVESTORS ON FUND SCHEME
Percentage
41.25
45
40
35
30 21.25
25
20 12.5 12.5
15 8.75 6.25 6.25
10 3.75
5
0
CHART 4.12
Interpretation:
From the table show that majority of the respondent will prefer liquid fund 33,and then the
investors will prefer growth fund17, and 10 respondent were choose diversified and sector, and 7
respondent choose large cap.and 5 respondent choose gilt and mid cap respectively
Page 47
4.13 CLASSIFICATION ON THE BASIS OF PREFERENCE INVESTORS ON

CHANNEL
CHANNEL No of respondent Percentage
Financial advisor 24 30
Banks 14 17.5
AMC 12 15
Online 21 26.25
Others 9 11.25
Total 80 100
PREFERENCE INVESTORS ON CHANNEL
11.25
30
Financial advisor
Banks
26.25 AMC
Online
Others
17.5
15
CHART 4.13
Interpretation:
From the table show that majority of the respondent will prefer financial advisors as their
channel 24 and then the investors will choose online 21 and then choose banks 14 and then
choose AMC 12, and then the investors will choose other channel 9.
Page 48
4.14 CLASSIFICATION ON THE BASIS OF PREFERENCE AMONG THE MUTUAL

FUND
PREFERENCE NO OF RESPONDENT PERCENTAGE

UTI 2 2.5
Franklin Templeton 5 6.25
ICICI pru 13 16.25
Birla sl 14 17.5
SBI 25 31.25
RELIANCE 18 22.5
OTHERS 3 3.75
TOTAL 80 100
PREFERENCE AMONG THE MUTUAL FUND
35 31.25
30
25 22.5
20 16.25 17.5
15
10 6.25
3.75
5 2.5
0
CHART 4.14
Interpretation:
From the above table it is show that majority of the respondent will prefer SBI as its investment
25.and then choose reliance 18 and then choose Birla sl 14.and then choose ICICI pru 13 ,and
then choose franklin Templeton 5 and choose others 3 respectively
Page 49
4.15 CLASSIFICATION ON THE BASIS OF FACTOR INFLUENCED BY THE

INVESTOR
Factor Highly Influent neutral Lower Least likert Weight Rank

influent ial influential influential score ed avg
ial
Better return 39 23 8 7 3 328 4.1 1
High growth 32 21 9 6 2 285 3.56 4

potential
Performance 28 27 12 9 4 306 3.825 3
Strong pms 18 29 15 12 6 281 3.51 5

Diversification 32 27 6 14 1 315 3.93 2
FACTOR INFLUNCED BY THE INVESTOR
4.1
4.1 3.93
4 3.825
3.9
3.8 3.56
3.7 3.51
3.6
3.5
3.4
3.3
3.2
CHART 4.15
Interpretation:
From the above table it is show that factor better return get the first rank ,and diversification get
the second rank ,and performance factor get the third rank ,high growth potential get the fourth
rank,and strong pms get the 5 th rank
Page 50
4.16 CLASSIFICATION ON THE BASIS OF TYPE OF PORTFOLIO CHOOSE BY

INVESTORS
TYPE OF PORTFOLIO NO. OF RESPONDENTS PERCENTAGE

Equity 3 3.75
Debt 10 12.5
Commodity 10 12.5
Hybrid 57 71.2
Total 80 100
TYPE OF PORTFOLIO CHOOSE BY INVESTORS
3.75
12.5
Equity
12.5 Debt
Commodity
Hybrid
71.2
CHART 4.16
Interpretation:
From the table show that majority of the respondent will prefer hybrid (71.2%),and then the
respondent will prefer the debt and commodity (12.5%).and some respondent choose equity
(3.75%).
Page 51
4.17 CLASSIFICATION ON THE BASIS OF MODE OF GETTING RETURN FROM

MUTUAL FUND
Mode of return No of respondent Percentage

Dividend pay-out 21 26.25
Growth in NAV 18 22.5
Dividend re investment 36 45
Others 5 6.25
Total 80 100
MODE OF GETTING RETURN FROM MUTUAL FUND
Percentage
45
45
40
35
26.25
30 22.5
25
20
15
10
5
0 6.25
Dividend Growth in NAV Dividend re Others

payout investment
CHART 4.17
Interpretation:
From the above table show that majority of the respondent will choose dividend reinvestment
(45%) and then choose dividend pay-out as mode of return (26.25%)and some respondent will
prefer growth in NAV (22.5%) and choose others respectively 6.25%.
Page 52
4.18 CLASSIFICATION ON THE BASIS OF RESPONDENTS EXPERIENCE IN

INVESTING IN MUTUAL FUND
The following table shows experience influencing the investors while investing in mutual fund.
The weighted average is used to rank the factor of investing in mutual fund. Here the factor of
investing in mutual funds are analysed by taking the units highly satisfied, satisfied, neutral ,
dissatisfied and highly dissatisfied.
Gender H.S S N D H.D Likert Weighted Rank

score avg
Male 11 26 27 3 0 246 3.075 1
Female 5 3 4 1 0 51 0.6375 2
RESPONDENTS EXPERINCE IN INVESTING IN MUTUAL FUND IN TERMS OF

GENDER
Here the Mann Whitney u test is used to analyze the respondents experience investing in
mutual funds on the basis of gender.
Ho: Experience of investing in mutual fund is identical in terms of gender.
H1: Experience of investing in mutual fund is not identical in terms of gender.
Gender Sum of SD Z-value P- value Accept/reject

ranks
Male 33 4.76 1.05 .2933 Accept
Female 22
TABLE 4.18.2
Interpretation
Since the p-value is greater than 0.05 the null hypothesis is accepted. That means the experience
of investing in mutual fund is identical in terms of gender.
Page 53
4.19 CLASSIFICATION ON THE BASIS OF INVESTORS EXPECTATION

FROM
MUTUAL FUND SCHEMES
EXPECTATION No of respondent Percentage

Maximum tax saving 25 31.25
Capital appreciation 32 40
Regular income 13 16.25
Insurance benefit 5 6.25
Loan facility 3 3.75
others 2 2.5
Total 80 100
INVESTORS EXPECTATION FROM MUTUAL FUND SCHEMES BASED ON

GENDER
To analyze the relationship between investors expectation from mutual fund and gender
of respondents a chi-square test is used. The gender is classified into male and female.
Gender Maximum Capital Regular Insurance Loan Others

tax saving appreciation income benefit facility
Male 21 30 10 3 2 1
female 4 2 3 2 1 1
HO: The two variables that the gender of the respondents and expectation from mutual
fund scheme are independent.
H1: The two variables that the gender of the respondents and expectation from
mutual fund scheme are dependent.
Page 54
INVESTORS EXPECTATION AND GENDER
Chi-square value 7.19

Degree of freedom 5
P-value .2071
TABLE 4.19.3
Interpretation
Since the p-value is greater than 0.05 the null hypothesis is accepted. That means, the two
variables namely gender and the expectation of investors in mutual fund is independ
Page 55
4.20 CLASSIFICATION ON THE BASIS OF OPINION THAT MUTUAL FUNDS

ARE A POWERFUL TOOL FOR MOBILISATION OF SAVING OUR
COUNTRY
The following table shows that mutual fund is a powerful tool for mobilisation saving in
our country. Here the factor of investing in mutual funds are analysed by taking the
sectors that govt sector,pvt sector,business,agriculture and NRI and others.And it is
showed in weighted avg method.
FACTOR LIKERT SCORE WEIGHTED AVG RANK
Govt sector 309 3.8625 1
Pvt sector 303 3.7875 2
Bussiness 299 3.7375 3
Agriculture 286 3.575 4
NRIs 273 3.4125 6
Others 27.5 3.4375 5
TABLE4.20
Interpretation
From the above table it is showed that Govt sector get the first rank and Pvt sector get the
second rank, and
business get the third rank respectively
Kruskal Wallis Test
For the purpose of finding out the level of satisfaction of the respondent towards certain
sectors of mutual fund based on the occupation of the respondents kruskal wallis test is
used.
H0: Level of satisfaction of the respondent is identical in terms of occupation of the

respondents
H1: Level of satisfaction of the respondent is not identical in terms of occupation of the
respondents
Page 56
DIFFERENT SECTORS AND OCCUPATION
Sl.no Factors Average Median Degree H P Accept

Rank of or
freedom Reject
1 Govt 18.90 5.00 4 11.871 .0183 Reject
sector 16.30 4.00
15.70 2.00
7.90 1.00
6.20 0.00
2 Pvt sec tor 21.50 6.00 4 15.586 .0036 Reject
11.50 1.00
17.60 3.00
7.60 0.00
6.80 0.00
3 Business 19.00 9.00 4 11.478 .0217 Reject
17.90 3.00
13.00 2.00
7.50 0.00
7.60 1.00
4 Agriculture 19.50 4.00 3 10.948 0.0120 Reject
16.20 2.00
14.70 4.00
7.60 0.00
7 0.00
5 NRI 20.10 7.00 4 15.535 .0037 Reject
16.70 4.00
15.70 4.00
6.70 1.00
5.80 0.00
6 Others 21.40 7.00 3 9.993 0.0186 Reject
14.20 2.00
16.10 3.00
7.10 0.00
6.20 0.00
TABLE4.2O.1
Interpretation
Since the P value of factors such as Govt sector ,Pvt sector ,Business, Agriculture, NRI,
Others are less than 0.05 thus the null hypothesis is rejected.05.So level satisfaction of
the respondents is not identical in terms of occupation of the respondents.
Page 57
4.21CLASIFICATION ON THE BASIS OF PROBLEM FACED BY THE

INVESSTOR WHILE INVESTING IN MUTUAL FUND
The following table shows problems faced by the investor while investing in mutual
fund.The weighted average is used to rank the factor of investing in mutual fund.Here the
problem of investing in mutual funds are analysed by taking the units highly
agree,agree,neutral,disagree and stongly disagree.
Problems SA A N D SD Likert Weighted Rank

score avg
Little past 43 17 7 6 7 323 4.0375 1
experience
Lack of 26 34 16 3 1 321 4.0125 2
knowledge
Lack of 25 31 4 13 7 294 3.675 4
confidence
in service
provided
Difficulty 24 32 12 8 4 304 3.8 3
in
selection
of scheme
TABLE 4.21 Source: Primary
Interpretation
From the above table it is showed that major problem of facing mutual fund industry are
lack of experience.And it get the first rank.And lack of knowledge gets the second
rank.And difficulty in selection of scheme get the third rank.And lack of confidence in
service provided get the forth rank.
Page 58
4.22 CLASSIFICATION ON THE BASIS OF INVESTORS INVESTMENT IN

MUTUAL FUND
The following table shows the volume of the investor while investing in mutual fund.The
weighted average is used to rank the factor of investing in mutual fund.Here the volume
of investing in mutual funds are analysed by taking below one year, and1-3 and 3-6 year
and above six year.
Experience Up to 10-25% 25-50% Above50% Likert Weighted Rank

volume 10% score avg
Below 1 12 25 40 3 206 2.575 3
year
1-3 year 40 25 10 5 260 3.25 1
3-6year 21 23 24 12 213 2.6625 2
Above6year 8 20 33 19 177 2.2125 4
TABLE 4.22 Sources: Primary Data
Interpretation
From the above table it is show that majority of the respondent will invest in mutual fund
up to 1-3 year,and it get the 1st rank and then prefer 3-6 year and then below 1 year and
above 6 year respectively.
Page 59
CHAPTER 5
SUMMARY, FINDINGS, SUGGESTIONS AND

CONCLUSION
Page 60
5.1 SUMMARY
The study attempted to reveal “mobilisation of savings through mutual fund with Special Reference
to Malappuram District”. This study intended to make an analysis on investors towards mutual fund
and their satisfaction, awareness etc... about it. This survey also studied various factors which effect
the selection of mutual fund and various kinds of mutual funds available in the market. The whole
project divided in to five chapters.
The ﬁrst chapter contains the INTRODUCTION about the study. lt also contains the statement
of the problem, significance of the study, objectives of the study, methodology, limitation of the study,
and chapterisation.
The second chapter deals with the REVIEW OF LITERATURE, previous projects and
research’s details are included in this area.
The third chapter deals with the INDUSTRY COMPANY PROFILE AND THEORATICAL
FRAMEWORK. It contains an overview of mutual fund.
The fourth chapter deals with the ANALYSIS AND INTERPRETATION OF DATA. The data
which are collected by using schedule of questions are analyzed in this chapter. Simple Statistical tools
like tables, graphs, diagrams etc. are used in this analysis. The responses of the respondent are
arranged in such a manner so as to simplify analysis process by using the tables.
The Fifth chapter presents A BRIEF SUMMARY OF THE STUDY, Findings,

suggestions and conclusion based on the study.
Page 61
5.2FINDINGS
❖ The GOVT sector investors are strongly agrees that mutual fund is a powerful tool for
mobilisation of savings in our country but NRIs are least agree with this opinion.
❖ The study shows that, most of the respondents are satisfied with the mutual fund.
❖ The main purpose of saving is to meet emergencies. The other purposes are to meet
educational expenses, to meet marriage expenses, etc.
❖ Respondents are mostly aware about Equity oriented scheme.
❖ On the basis of awareness of rights and AMFI majority of respondents give first rank to Right
to proportionate beneficial ownership.
❖ 68.75% investors prefer 3 year to 6 year as investing in mutual fund.
❖ 36.25% respondents prefer financial advisors for getting the sources of information related
in mutual fund.
❖ 86.25% respondents will prefer the open ended scheme.
❖ On the basis of choice of investors on fund scheme majority of the respondent will prefer liquid
fund.
❖ 30% respondent will prefer financial advisors as their channel.
❖ Most of the investors had invested in SBI and RELIANCE mutual fund.
❖ The study shows that, mostly respondents preferred Return & savings while investment.
❖ 40% respondent’s expectation from mutual fund is capital appreciation.
❖ Most of the respondents give first preference to Return & savings.
❖ Most of the respondents are influenced by the better return and diversification while
investing in mutual fund.
❖ 71.2% respondents will prefer hybrid portfolio and the least preferred portfolio was equity.
❖ The study shows that 45% respondent will choose dividend re investment as mode of return.
❖ In malappuram district, largely the semi urban people subscribe mutual funds schemes and the
investment by the rural people is very negligible.
❖ In malappuram district in the age group of 35 – 55 years were more numbers in investing
mutual fund.
❖ In malappuram most of the investors were professionals or technical and under graduate there
very few in numbers.
❖ Govt and pvt sectors investors are the main contributors to the mutual fund schemes.
Page 62
❖ 88.5% respondents are occasional investors in mutual fund.

❖ 57.5% respondent’s income were belonging to more than 5 lakh , 55% respondent’s
expenditure is between 2 - 2.5 lakh and 32.5% investors are will choose 10-to 25% as their
percentage on saving.
❖ The study shows that, experience of investing in mutual fund is identical in terms of gender.
❖ The study shows that, gender and the expectation of investors in mutual fund are
independent.
❖ The study shows that, level of satisfaction of the respondents is not identical in terms of
occupation of the respondents.
❖ The study shows that, major problem of facing mutual fund industry are lack of experience
and lack of knowledge.
❖ The study reveals that, majority of the respondent will invest in mutual fund up to 1-3 year.
5.3 SUGGESTIONS
The following are the main suggestions about the study
• Select mutual fund in blue chip equities it is more profitable

• More awareness and information should be given to investors and also to attract new investors.
• Improve the performance of intermediaries(brockers)
• Better to invest in more than one funds to spread the risk(diversificaition)
• Understand the investor’s needs and expectations; here brockers must play a vital role to help
them.
• To attract the investors to mutual fund the companies will play an important role to bring low
risk, high return, safety mutual funds.
• Mutual fund companies should provide income generating schemes to attract female investors,
now majority of female investors are not aware about mutual fund
Page 63
5.4 CONCLUSION
The study of mobilisation of savings through mutual fund is carried with the objectives of
evaluating the various kinds of mutual funds available in the market. In this study it is found
that open ended fund is the most popular and more using fund in the market.
The factors influencing to the selection of mutual fund includes return, safety and
risk. Investors give more importance to these three factors. There are some problems also faced
by investors of mutual fund is very less and female investors are not much more invested in
mutual fund. Investors use magazines as the source of information provider and brokers also
play a vital role in this sector. Investors are satisfied with their funds.
The study point out some suggestions which helps to improve the performance of mutual
fund. Companies and brokers it also helps to attract new investors.
Page 64
BIBLIOGRAPHY
Page 65
BOOKS USED
• C R Kothari “Quantitative technics”.Vikas publishing house pvt LTD,Third revised edition.

• C.H Kothari,’Research methodology,New international publications
• Mohammed Anif Pasha.’securities analysis and portfolio management”,Vrinda
Publications(p)LTD,93-104
• Prasanna Chandra.”Investment analysis and portfolio management.”Ludhiana Kalyani
publishers 2012
JOURNALS USED
• PreethiKhitolia(2014)investors awareness perceived risk attitude towards mutual fund:An

empirical study in Delhi,international journal of commerce,Bussiness and management Vol-
3,pp-450-456,www.iraest.org
• Pritham.P.Kothari and ShivagangaC Mindargi(2013)A study of investorsattitude towards
mutual fund with special reference to investors in solapur city,international journal of
aaconting and financial management research,Vol 3 www,tjpre.org
• Priti Mane(2016)A study of Investors pereception towards Mutual Funds in the City of
Aurangabad,standard International journal,Vol,Pp30-38www.thesij.com
• SimraSaini and Dr.BimalAnjum(2011)Investors awareness and perception about mutual funds
International journal of multidisciplinary Research,Vol 1 Pp14-29
• Dr.Nishi Sharma(2012)Indian investors perception towards mutual fund,Business management
Dynamics,Vol 2,Pp1-9 www.dmdynamics.com
• Mrs.PoornimaUmeshMehtha (2011)Profile and perception of investors towards mutual funds-a
study of selected cities in Gujarat,www.shodhganga.inflibnet.ac.in
• Dr.Binod Kumar Singh(2009)An empirical study on awareness and acceptability of mutual
fund,Pp1-11,www.researchgate.net/publication.
• Ms.T.Rajeswari and Prof.Ramamoorthy(2002)An empirical study of factors influencing the
mutual fund/sheme selection by retail investors,Pp-25,www.citeseerx.ist.psu.edu
• Pritimane(2016)A study of Investors Perception towards Mutual fund in the city of
Aurangabad,Standard International Journal,Vol,Pp30-38www.thesij.com
Page 66
• Mrs.Nutan Vijay Pasalkar(2015) A comparative study of Mutual fund investment Vs Iquity

investment of Indian individual investors.Pp 482-496,www.asmgroup.edu.in
• Dr.Rajesh Kumar Nithin Goel(2014),An empirical study on investors perception towards
mutual fund,International journal of research in management and business
studies,Vol,1,Pp450-456,www.iraest.org
• G.Prathap and Dr.A Rajamohan(2013) A study on status of awareness among mutual funds
investors in Tamilnadu,journal of exclusive management seciebce,Vol-2 www.jems.net.in
• Gaurav Agarwal and Dr Mini jain (2013),investors preference towards mutual fund in
comparison to other investment avenue,journal of Indian research,Vol 4,Pp 115-131
www.mujournal.mewaruniversity.in
• Dr.Binod Kumar Singh(2012)Astudy on investors attitude towards Mutual fund as an
investment option,international journal of research in management,vol 2,Pp 61-70,www.rs
publication.com
• Jayabrata Banerjee and Swarnendu(2012)customer perception on mutual fund product
technical analysis,Inter science Management Review IMR vol2,Pp63-66 www.interscience.in
• Dr.Saritha Bahl and Meenakshi Rani(2012)A Comparative Analysis of Mutual fund schemes in
India,international Journal of marketing,Financial services and Management Research vol 1,Pp
67-79www.Indianresearchjournals.com
• Dr.Nishi Sharma(2012) Indian investors perception towards Mutual fund Business
management Dynamics vol 2 Pp1-9dmdynamics.com
WEBSITE USED
• w w w . t he si j . c o m
• w w w . i j e m h s. c o m
• w w w . i r ae st . c o m
• w w w . t j pr e . c o m
• w w w . j e m s. ne t . i n
• w w w . m uj o ur n al
• w w w . r s p u bl i c at i o n. c om
• w w w . i nt e r sc i e n c e . i n
• w w w . d m d y na m i c s. c o m
Page 67
APPENDIX
QUESTIONNAIRE
Respected Madam/sir,
Page 68
I am a student of sullamussalam science college areecode doing my project on the

topic”MOBILIZATION OF SAVINGS THROUGH MUTUAL FUND WITH SPECIAL
REFERENCE TO MALAPPURAM DISTRICT”.
I will be grateful to you, if you extent your support by sparing a few minutes from your
busy schedule for the successful completion of my project. The answers provided by you will only be
used for the academic purpose and will be kept confidential.
1. Personal details
a. NAME:
b. AGE :
c. Gender
Male female
2. Education
Post graduate graduate under graduate
Professional technical others
3. Occupation
Govt sector pvt sector business agriculture others
4. Residence location
Urban Semi-urban Rural
5. Please specify your annual income?
Below 300000 300000-500000 Above 500000
6. Please specify your annual expenditure?
Below200000 200000-250000 Above 250000
7. What percentage of your savings do you invest in mutual fund?
Up to 10% 10-25% 25-50% above 50%
8. How long you are investing in mutual fund?
Below 1year 1 year – 3 year 3 year – 6year Above 6 year
9. Can you specify the primary motive of your saving/investment?
Page 69
SL NO MOTIVES RANK
1 Meet the emergencies

2 Meet educational expenses
3 Meet marriage expenses
4 Buy properties &durables,etcss
5 Save tax
6 Start or expand business
7 Multiple purposes
8 Meet other expenses
10. Can you specify the nature of your saving habits?
Regular Occasional Not applicable
11. While investing your savings, which factor will you prefer most?
SL Factors RANK
NO
1 Safety
2 Liquidity
3 Tax benefits
4 Return & savings
5 Performance of past schemes
6 Rating of MF by agencies
7 Recommendations of friends and
relatives
8 Advertisement
12. To what extend you’re aware about the following mutual fund schemes?
Page 70
SL M.F schemes Highly Aware Neutral Lower Least

NO aware aware aware
1 Balanced fund
2 Money market/Liquid fund
3 Tax saving scheme
4 Index funds
5 Growth/Equity oriented scheme
6 Income/Debt oriented schemes
7 Sector specific scheme
13. Awareness about investor rights and association mutual fund in India (AMFI)
S.NO Are you aware about HA A N LA LA

1 Right to “proportionate beneficial
ownership”
2 Right to timely services
3 Right to information
4 Right to approve change in
fundamental attributes of the scheme
5 AMFI is an apex body of all asset
management companies
6 AMFI Protects and promotes the
interests of mutual funds as well as
their unit holders
14. How did you become aware about the mutual fund?
Advertisement peer group Banks
Internet Financial advisors Magazines
15. Which features of mutual fund attracted you most?
Page 71
SL.NO Features Rank

1 Diversification
2 Regular income
3 better return &safety
4 Tax benefit
5 less risk
16. Which type of fund you prefer?
Open ended close ended ETFs – Exchange traded fund
17. Give your choice among following mutual fund schemes?
Growth large cap diversification gilt mid cap
Regular income Liquid fund sector specific
18. Which channel will you prefer for purchasing mutual fund?
Financial advisors banks AMC online others
19. Which AMC will you prefer?
UTI SBI ICICI Birla SL reliance
Franklin Templeton Others
20. Which factors are more influenced for the above preference?
SL.NO FACTORS Highly Influential Neutral Lower Least

influential influential influential
1 High growth potential
2 performance
3 strong PMS
4 better return
5 Diversified schemes
21. Which type of portfolio would you chose?
Page 72
Equity Debt Commodity Hybrid
22. How would you like to receive the returns from mutual fund?
Dividend pay-out growth in NAV dividend reinvestment others
23. How was your experience of investing in mutual fund?
Highly satisfied satisfied neutral dissatisfied highly dissatisfied
24. Can you give your expectation from mutual fund schemes?
Max tax savings capital appreciation regular income
Insurance benefits Loan facility others
25. Give your attitude towards the statement “mutual fund is a powerful tool for mobilization
Of savings in our country”?
SECTORS Strongly Agree Neutral Disagree Strongly

agree disagree
Govt sector
Pvt sector
Business
Agriculture
NRIs
others
26. What are the problems faced by you while invest in mutual fund?
SL. PROBLEMS Strongly Agree Neutral Disagree Strongly

NO agree disagree
1 Little past experience
2 Lack of knowledge
3 Lack of confidence in service provided
4 Difficulty in selection of scheme
27. Give your volume of investment of MFs in relation to the experience in investing?
Page 73
Experience\volume Up to 10% 10-25% 25-50% Above 50%

Below 1 year
1-3 years
3-6 years
Above 6 years
28. If you have any suggestions please
DATE:
PLACE:
THANK YOU
Page 74
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Mobilisation of savings through mutual fund

A mutual fund is nothing more than a collection of stocks and or

1.2 STATEMENT OF THE PROBLEM

While making an investment An investor considering investment in securities is facing with

As in case of an investor while making an investment, faces a problem in

1.3 OBJECTIVES OF THE STUDY

➢ To study the role of mutual fund in the mobilization of savings.

1.4 SIGNIFICANCE OF THE STUDY

1.5 HYPOTHESIS USED

➢ H0: Experience of investing in mutual fund is identical terms of gender.

1.6 SCOPE OF THE STUDY

1.7 RESEARCH METHODOLOGY

1.7.1 SOURCES OF DATA

1.7.2 SAMPLING DESIGN AND SIZE

The sampling technique involved convenience sampling. Convenience sampling is a non-

1.7.3 TOOLS FOR ANALYSIS

• Mann Whitney u test

1.7.4 TOOLS FOR PRESENTATION

1.8 AREA OF THE STUDY

The research concentrated in MALAPPURAM district.

1.9 PERIOD OF STUDY

The duration of the project study is 21 days.

1.10 LIMITATIONS OF THE STUDY

However sincere effort has been to collect the data and

1.11 CHAPTER PLAN

INDUSTRY, COMPANY, PRODUCT PROFILE AND THEORATICAL FRAME

DATA ANALYSIS AND INTERPRETATION

SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSION

NUTAN VIJAY PASALKAR (2015) Conducted a comparative study of mutual fund

DR.RAJESH KUMAR AND NITINGOEL (2014) In their study attempted to analyse

PRITAM .P. KOTHARI AND SHIVAGANGA.C.MINDARGI (2013) studied the

G. PRATHAB AND DR.A.RAJMOHAN (2013) Conducted a study on status of

GOURAVAGARVAL AND DR MINI JAIN (2013) conducted a study on investor’s

DR.BINOD KUMAR SINGH (2012) Conducted a study on investors attitude towards

JAYABRATA BANERJEE AND SWARNENDU ROY (2012) Conducted a technical

DR.SARITHABAHL AND MEENAKSHRANI (2012) Has done a comparative analysis

DR.NISH SHARMA (2012) conducted a study on Indian investor’s perception towards

SIMRANSAINI, DR.BIMALANJUM AND RAMAN DEEP SAINT (2011) where

DR.BINOD KUMAR SINGH AND ASHUTOSKR.JHA (2009) Conducted a study on

INDUSTRY, COMPANY PROFILE AND

Financial markets have become more complex and sophisticated.

CONCEPT OF MUTUAL FUND

Concept of Mutual Fund

Many investors with common financial

Investors on a proportionate basis, get mutual

The money collected from investors is invested

The fund manager realizes the gains or losses,

Any capital gains or losses from such

ADVANTAGES OF MUTUAL FUNDS

➢ Reduction in transportation cost

DISADVANTAGES OF MUTUAL FUND

➢ No control over cost in the hands of an investor

HISTORY OF THE INDIAN MUTUAL FUND INDUSTRY

Second Phase-1987-1993(Entry of Public Sector Funds)

Third Phase-1993-2003(Entry of Private Sector Funds)

STRUCTURE OF THE INDIAN MUTUAL FUND INDUSTRY:

RECENT TRENDS IN THE MUTUAL FUND INDUSTRY:

ROLE OF SEBI IN MUTUAL FUND:

MUTUAL FUNDS CAN BE CLASSIFIED AS FOLLOW:

❖ Based on their structure