A Study on Customer perception towards SBI

Mutual Funds
PROJECT GUIDE
VIJAYALAKSHMI MENON.P
ASSISTANT PROFESSOR

Pradeep Johnson B
14MD073

MUTUAL FUND

Objectives of the study

Primary objectives
To study and analyse the investors perception of investing in SBI
mutual funds.
To identify the investors purpose of investment.
Secondary objectives
To identify the influence of demographic factors such as income,
age, gender, education, occupation on investment avenues.
To evaluate the awareness of customers towards various mutual
funds.
To determine the expected return and risk involved in investing
in mutual funds.

RESEARCH METHODOLGY

The research design adopted in this study is Descriptive

Research Design.

Descriptive research describes data and characteristics about

the population being studied.

RESEARCH METHODOLOGY
DATA COLLECTION
Both primary and secondary data was collected for the study.
1.Primary Data:
A structured questionnaire with closed ended
questions was used for the study. The information was
collected directly from the customers of SBI Mutual
Funds.
2.Secondary Data:
The secondary data was collected from the
company reports, manuals and website.

SAMPLING TECHNIQUES

Sample size of minimum 110 persons are selected

In this study convenience sampling is used for collecting data.

PILOT STUDY
Cronbachs alpha is a measure of internal consistency
which is considered to be a measure of scale reliability.
110 samples was taken for reliability analysis

Cronbachs alpha

N of items

.565

16

DEMOGRAPHIC PROFILE
DETERMINANTS

NO.OF RESPONDENTS(N=110)

PERCENTAGE(%)

Gender
Male
Female

77
33

70%
30%

Age(in Years)
18-20
21-30
31-40
41-50

15
26
52
17

14%
24%
47%
15%

Educational Qualification
Below Graduate
Graduate
Post Graduate

20
71
19

18%
65%
17%

Occupation
Govt Sector
Private Sector
Business
Agriculture
Others

05
29
37
18
21

5%
26%
34%
16%
19%

Annual Income
<1lakh
1-4 lakhs
5-8 lakhs
9-12 lakhs
>12 lakhs

40
56
7
7
0

36%
52%
6%
6%
0%

STATISTICAL TOOLS
Statistical tools used for this analysis are:

Chi- square test

Correlation

T-test

One way Anova

Chi square test

Null Hypothesis (H0): There is no association between
gender and purpose of investment
Alternate Hypothesis (H ): There is association
1
between gender and purpose of investment

Particulars

Value

Df

Asymp.sig. (2-sided)

Pearson Chi-Square

2.93

0.403

Likelihood Ratio

2.76

0.43

Linear-by Linear
Association

1.409

0.235

N of Valid Cases

110

CHI SQUARE
Interpretation
As given in the above table the observed value of
significance is 0.403.The accepted value of
significance is 0.05.
The observed value is greater than alternative
hypothesis which implies null hypothesis is accepted
and alternative hypothesis is rejected. Hence it can be
concluded that there is no association between gender
and purpose of investment.

Correlation analysis
Null Hypothesis (H0): There is no relationship
between Annual income and Tax benefit
Alternate Hypothesis (H ): There is relationship
1
between Annual income and Tax benefit

Particulars
Pearson Correlation
Annual Income

Tax benefit

Annual Income

Tax
Benefit

-0.138

Sig.(2-tailed)

0.561

20

20

Pearson Correlation

-0.138

Sig.(2-tailed)

0.561

20

20

CORRELATION ANALYSIS

Interpretation

As given in the above table, the observed value of

significance is -.138 and the level of significance
considered is 0.05.

The observed value is lesser than 0.05 which implies

alternate hypothesis is accepted and null hypothesis is
rejected. Hence it can be concluded that there is relation
between Annual income and tax benefit.

Independent sample T test

Null Hypothesis (H0): There is no significant
difference between gender and Annual Income
Alternate Hypothesis (H ): There is significant
1
difference between gender and Annual Income

Independent sample T test

Table 2.4.2 showing Independent Samples Test
Paticulars

Levene's
Test for
Equality of
Variances

t-test for Equality of Means

95%
Confidence
Interval of the
Difference

Annual
Income

Sig.

Equal
varianc
es
4.741 .032 -.434
assume
d
Equal
varianc
es not
assume
d

Df

Sig. (2tailed)

Mean
Std. Error
Difference Difference Lower Upper

108

.665

-.074

.169

-.409

.262

74.08
5

.638

-.074

.156

-.384

.237

-.472

INDEPENDENT SAMPLE T-TEST

Interpretation
As given in the above table, the observed value of
significance is 0.032 and the level of significance
considered is 0.05.
The observed value is less than 0.05 which implies
alternate hypothesis is accepted and null hypothesis is
rejected. Hence it can be concluded that there is
significant difference between gender and annual
Income

One way ANOVA

Null Hypothesis (H0): There is no
significant difference between risk levels
and Annual Income.
Alternate Hypothesis (H ): There is
1
significant difference between risk levels
Table 2.5.2 showing ANOVA
and Annual Income.

Annual

Income

Sum

of

Mean

Squares

Df

Square

Sig.

.560

.280

.421

.658

Between
Groups
Within
Groups

71.158

107

.665

Total

71.718

109

One way ANOVA

Interpretation
As given in the above table, the observed value of
significance is 0.658 and the level of significance
considered is 0.05.The observed value is greater than
0.05 which implies null hypothesis is accepted and
alternate hypothesis is rejected. Hence it can be
concluded that there is no significant difference
between risk levels and Annual Income

FINDINGS

Majority of the customers income who invested

in SBI Mutual fund lies in between 1-4 lakhs
Most of the respondents preferred High return is
the reason for the purpose of investment
Majority of the respondents expected return lies
in between 10%-30%
The features of SBI Mutual funds such as past
performance, safety, portfolio, entry/exit load
are mostly preferred by respondents
Majority of the customers are benefitted from
SBI Mutual funds

FINDINGS
Most of the respondents prefer short term
investment in SBI Mutual Fund
Internet and newspaper/journals are the major
source that provide more information about SBI
Mutual Fund
Majority of the customers have a plan to reinvest in
mutual fund schemes of SBI
The performance of SBI Mutual fund has improved
from its past
Majority of the investors rate the overall experience
as satisfactory in SBI Mutual Fund and they also
recommend others to invest in SBI Mutual funds.

Conclusions

Mutual fund companies help investors by providing them with a

qualified fund manager. This study gives a great learning experience
and at the same time it gives enough scope to implement the analytical
ability. The analysis and advice presented in this project report is
based on market research on the saving and investment practices of
the investors and preferences of the investors for investment in Mutual
Funds. This report will help to know about the investors preferences
in Mutual Fund such as preferences in any particular Asset
Management Company (AMC), type of product they prefer, option
such as Growth or Dividend they prefer, Investment Strategy they
follow such as Systematic Investment Plan or One time Plan.

conclusion
In India, fund managers are acquiring global certifications like CFA and
MBA which help them be at the cutting edge of the knowledge in the
investing world. Since mutual fund company collect money from millions
of investors, they achieve economies of scale. The cost of running a mutual
fund is divided between a larger pool of money and hence mutual funds are
able to offer the investor a lower cost alternative of managing their funds.
In India mutual funds are regulated by the Securities and Exchange Board
of India, which helps to provide comfort to the investors. SEBI forces
transparency on the mutual funds, which helps the investor make an
informed choice. SEBI requires the mutual funds to disclose their portfolios
at least six monthly, which helps the investors keep track whether the fund
is investing in line with its objectives or not.

Thank you