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A STUDY ON INVESTORS
PERCEPTION TOWARDS MUTUAL
FUND INVESTMENTS (WITH SPECIAL
REFERENCE TO POLLACHI TOWN)
MS.M.KALAISELVI
ASSISTANT PROFESSOR OF B.COM [PA]
SREE SARASWATHI THYAGARAJA
COLLEGE,
POLLACHI, COIMBATORE DISTRICT
TAMILNADU, INDIA
Abstract - This study on Investors perception towards and 52 Billion). The Securities and Exchange Board of
recent development and progress of Mutual Fund India (SEBI) regulate all mutual funds in India.
investments in Coimbatore city comes under the board area REVIEW OF LITERATURE
of service marketing. In the broad concept of service D.Senthil and Dr.M.SyedZefar (2005) had
marketing it exclusively concentrates on the marketing of
published an Article Mutual
financial service namely mutual funds.
With the wider concept of the various functions of service
Fund- Investors Perceptions and realities. The main
marketing, product awareness, brand preferences, and aim of the study is to find out the investors
investor`s satisfaction are the specific areas of the study. perception and realities in the current scenario and
The other marketing functions like product development measure extend of satisfaction derived by customer
market segmentation, channels of marketing, product life towards the performance of mutual fund and
cycle, scale promotion strategies and their impact of willingness to invest in future despite the current
Marketing are completely omitted from the preview of this prevailing condition of the market. The main purpose
study. Similarly the availability of substitute product of mutual of the study is to identify the factors which make
fund units and their impact on this service product it also not them invest and to retain in mutual fund. The study
included in the study. Even in the mutual fund investors
behavior also the researcher concentrate only the urban
says that investors prefer mutual fund than share
investors and their problem for this research work. The rural because high risk is associated with shares.
investor`s views are completely excluded from the study. Sanjay.J.Bhayani and Vishal.G.Patidar (2006)
Key words mutual fund, investors, marketing during the period Mutual Fund can increase in
domestic saving and improve the deployment of
INTRODUCTION investment through market. The main scope of the
All investments whether in shares, debentures or study is performed top five schemes are balanced
deposits involve risk. Share value may go down fund scheme, Gilt fund scheme, Liquid Money
depending upon the performance of the company, the Market fund scheme, Income fund scheme, Equity
industry, state of capital markets and the economy. diversified fund scheme, Tax planning fund scheme.
Generally however, longer the term, lesser the risk. Madhumita Chakra Borty, P K Jain and
Companies may default in payment of interest and VinayKallianpur (2007) evaluated the performance
principal on their debenture or bonds or deposits. of mutual fund on the basis of rate of return as well
While risk cannot be eliminated, skillful management as risk adjusted methods. The performances of the
can minimize risk. Mutual Funds help to reduce risk mutual funds are compared with the risk-free returns
through diversification and professional management. as well as the benchmark index (BSE 100). The
The experience and expertise of Mutual Fund resuly have to be interpreted from the view that the
managers in selecting fundamentally sound securities study has been conducted for the period 2005-2007
and timing their purchases and sales help them to when the economy was growing at a rapid rate (8%
build a diversified portfolio that minimizes risk and GDP growth).The finding of the study was monthly
maximizes returns. Worldwide, the Mutual Fund, or reruns have been computed for all 40 mutual funds in
Unit Trust as it is called in some parts of the world, have the sample, for BSE 100 index and for 364 day T-bills.
almost overtaken bank deposits and total assets of The study concludes regarding the capability of mutual
insurance funds. As of date, in the US alone there are fund manager is still elusive.
over 8,002 Mutual Funds with total assets of over US
$9.36 trillion (Rs.427 lakh crores). In India there are
29 Mutual Funds and over 592 schemes with total
assets of approximately of Rs. 2,31,862 crores (US $
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IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
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TABLE 2 MONTHLY INCOME OF THE 34.8% and 24.8% of the respondents are satisfied and
RESPONDENTS neutral regarding the liquidity of fund, while 15.2%,
Monthly Income Frequency Percentage 14.8% and 10.4% of the respondents are highly
5000-10000 38 15.2 satisfied, highly dissatisfied and dissatisfied.
10000-15000 62 24.8 Regarding safety and security of the mutual fund,
15000-20000 38 15.2 40% and 24.8% of the respondents are satisfied and
Above 20000 112 44.8 highly satisfied, 20%, 10% and 5.2% of the
Total 250 100 respondents are highly dissatisfied, dissatisfied and
Source: Primary Data neutral opinion.
From the table shows that the 44.8% of the 40% and 24.8% of the respondents have opinion that
respondents earn income of above 20000, 24.8% of regular income from the mutual fund as neutral and
the respondents earn income between10000-15000, highly satisfied, 15.2% of the respondents are
15.2% of the respondents earn income between 5000- satisfied and 10% of the respondents are highly
10000 and 15000-20000. Hence it is clear from the table satisfied and dissatisfied respectively.
that majority of the respondents are comes under the 34.8% and 30% of the respondents are satisfied with
income level of above 20000. regarding the regular savings and neutral, 14.8%,
TABLE 3 INVESTORS SATISFACTION LEVEL 10.4% and 10% of the respondents are highly
OF VARIOUS MOTIVATING FACTORS dissatisfied, highly satisfied and dissatisfied
respectively.
Highly 44.8% and 30% of the respondents says that the risk
Highly
Factors Satisfied Neutral Dissatisfied in the mutual Total
involved Dissatisfied fund investment as satisfied
satisfied
and highly satisfied, 10% of the respondents are have
Capital No 25 100 75 37 both neutral 13 and highly 250dissatisfied. 5.2% of the
appreciation % 10 40 30 14.8 respondents5.2 are dissatisfied
100 regarding risk involved
High return No 137 62 13 13 in the mutual25 fund investments.
250
% 54.8 24.8 5.2 5.2 In the factor
10 of diversification
100 of mutual fund says
Tax saving No 75 87 50 13 that the 70% 25 of the respondents
250 are satisfied, 14.8%
% 30 34.8 20 5.2 and 4.8% 10 of the respondents
100 are neutral and
Liquidity of No 38 87 62 26 dissatisfied.37 5.2% of the 250 respondents are highly
fund % 15.2 34.8 24.8 10.4 dissatisfied and highly satisfied
14.8 100 respectively.
Safety & No 62 100 13 25 54.8% of 50 the respondents 250are satisfied regarding the
Security % 24.8 40 5.2 10 easy payment,20 while 100
24.8% and 10% of the
Regular No 62 38 100 25 respondents25 are highly
250 satisfied and highly
Income % 24.8 15.2 40 10 dissatisfied.
10 5.2% of the respondents are neutral and
100
Regular No 26 87 75 25 dissatisfied
37 with regarding250the easy payments.
Savings % 10.4 34.8 30 10 14.8 100
Risk Involved No 75 112 25 13 25 250
% 30 44.8 10 5.2 10 100
Diversification No 13 175 37 12 13 250
% 5.2 70 14.8 4.8 TABLE 45.2 100
Easy No 62 137 13 13 SOURCE25 OF AWARENESS 250 OF MUTUAL
Payments % 24.8 54.8 5.2 5.2 FUND INVESTMENT
10 100
Source: Primary Data Media Frequency Percentage
From the above table it is clear that 40% and Newspaper & 150 60
30%of the respondents are satisfied and neutral Magazine
regarding the capital appreciation,, 14.8%, 10% and Internet 37 14.8
5.2% of the respondents are dissatisfied, highly
Television 13 5.2
satisfied and highly dissatisfied respectively.
Relatives & Friends 25 10
From the above table it is clear that 54.8% and 24.8%
Agents 25 10
of the respondents are highly satisfied and satisfied to
get a high return. 10% of the respondents are highly Total 250 100
dissatisfied and 5.2% of the respondents are neutral Source: Primary Data
and dissatisfied. Table 4.14 says that 60% of the respondents
34.8% and 30% of the respondents are satisfied and are aware of the mutual fund investment through
highly satisfied the factor of tax saving while invest newspaper and magazine, 14.8% of the respondents
in the mutual fund, 20%, 10% and 5.2% of the are aware through internet, 10% of the respondents
respondents are neutral, highly dissatisfied and are aware through agents and relatives or friends and
dissatisfied with the tax saving factor. 5.2% of the respondents are aware through television.
Majority of the respondents are aware of the mutual
fund investments through newspaper and magazines.
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IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
Vol. 5, No.1, Jan-Feb 2016
127
IRACST International Journal of Commerce, Business and Management (IJCBM), ISSN: 23192828
Vol. 5, No.1, Jan-Feb 2016
Majority of the investors problems faced by mutual [8]Atmaramani, 1996, Restoring Investor Confodence, The
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General suggestion [10]Ellen Schultz, 1992, CDs pegged to College Costs Look
As there is no comprehensive law to regulate the Good to Parents, but do the make the Grade?, the Wall Street
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Secondly, as the investors are not willing to invest in Fund Investors, The Journal of Financial Research 20, Summer
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mutual fund unless a minimum return is assured, it is [13]Gupta, L.C., 1994, Mutual Funds and Asset Preference,
very essential to create in the mind of the investors Society for Capital Market Research and Development, Delhi.
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Thirdly, the growth of mutual fund tends to increase Hindu Survey of Indian Industry,112-114.
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fear of destabilizing among industrial group, hence Funds,VisionBooks,New Delhi.
[17]Madhusudan V. Jambodekar, 1996,marketing Strategies of
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Running successful Mutual Fund requires complete [21]Samir K. Barua et al., 1991, Master shares: A bonanza for
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Market and also the awareness of the small investors. [22]Shankar, V., 1996, Retailing Mutual funds: A Consumer
product model, The Hindu, July 24, 26.
This study has made an attempt to understand the
financial behavior of mutual fund investors in AUTHOR PROFILE
connection with the scheme preference and selection. Ms.M.Kalaiselvi M.Com, M.Phil., is working in Sree
An important element in the success of a marketing Saraswathi Thygaraja College, Pollachi since 2013.
strategy is the ability to fulfill investors expectation.
The results of these studies through satisfactory on
the investors perception about the mutual fund and
the factors determining their investment decision and
preferences. The study will be useful to the mutual fund
industry to understand the investors perception towards
mutual fund investments and the study would also be
informative to the investors.
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