A STUDY ON INVESTOR PERCEPTION

TOWARDS MUTUAL FUNDS WITH Presented by:-

KOUSHIK SARKAR
RESPECT TO AGARTALA, TRIPURA
INTRODUCTION
• Investment can be defined as an item of value purchased
for income or capital appreciation. Investments are
made to achieve a specific objective and saving are
made an unforeseen event.
• A mutual fund is a common pool of money into which
investors place their contributions that are to be invested
in different types of securities in accordance with the
stated objective.
• The AUM of the Indian mutual fund (MF) industry
witnessed an exceptional growth of 42% in FY2017
according to Association of Mutual
Funds in India (AMFI) data.
• There are two types of mutual funds :- open-ended
funds, closed-ended funds.
OBJECTIVE
• To analyse awareness levels of investors
and their preference towards investment
in mutual funds.
METHODOLOGY
• Study design: -
• Descriptive research: - Descriptive research does not fit neatly into
the definition of either quantitative or qualitative research
methodologies, but instead it can utilize elements of both, often
within the same study. The term descriptive research refers to the
type of research question, design, and data analysis that will be
applied to a given topic.
• Data collection procedure: -
– Primary data through questionnaires
– Secondary data will be collected from various web sites, mutual
fund brochures, journals and others.
• Sample size: 100
• Sampling technique: Convenience Sampling
• Sample elements : -Both investors and non-investors.
• Data analysis: - Percentage and graphical Analysis and Chi Square
test.
 LITERATURE REVIEW
Authors year Region Title Description
s of study
Simran Saini; Dr. 2011 Investors’ awareness and perception The study analyses the mutual fund investments in relation to
Bimal Anjum and about mutual funds investor’s behavior. Investors’ opinion and perception has been
Ramandeep Saini Chandigarh studied relating to various issues like type of mutual fund scheme,
main objective behind investing in mutual fund scheme, level of
satisfaction, role of financial advisors and brokers, investors’ opinion
relating to factors that attract them to invest in mutual funds, sources
of information, deficiencies in the services provided by the mutual
fund managers, challenges before the Indian mutual fund industry etc.

Prof Gauri Prabhu, 2013 Perception of Indian Investor towards This found that most of the investors are aware of various schemes of
Dr N.M. Vechalekar investment in mutual funds with mutual funds. The Mutual Fund investors mainly belong to the age
Pune city special reference to MIP Funds group from 19 years to 55 years and fall in the income group of Rs
30,000 to Rs 70,000 and above. Diversification of portfolio and tax
benefit are the main factors of mutual fund that allure the investors.
Most of the investors are aware of MIP Funds and the preferred reason
for investing in MIP fund is consistent returns given by these funds.
Dr.K.Lakshmana 2011 Visakhapatna Analysis of investors’ perceptions The study conducted shows that most of the investors are aware of
Rao m, towards mutual fund schemes(with various schemes of mutual funds. The Mutual Fund investors mainly
Vizianagara reference to awareness and adoption belong to the age group from 19 years to 55 years and fall in the
m and East of personal and family income group of Rs 30,000 to Rs 70,000 and above. Diversification of
Godavari considerations) portfolio and tax benefit are the main factors of mutual fund that
districts on allure the investors. Most of the investors are aware of MIP Funds and
the preferred reason for investing in MIP fund is consistent returns
given by these funds.

Ms.M.Kalaiselvi 2013 Pollachi A study on investors perception
towards mutual fund investments
(with special reference to Pollachi
town)
Most of the respondents prefer to invest in bank deposits Majority of
the respondents prefer to invest in Private sector mutual fund
companies (34.8%),Majority of the respondents prefer open-ended
mutual fund schemes (70%) Majority of the respondents are aware of
the mutual funds’ investments through new paper and Magazines
(60%) Majority of the respondents hold the equity type of mutual
funds (30%) Majority of the respondents prefer high risk and high
returns from their investments (44.8%) Majority of the respondents
purchase the mutual fund unit through brokers (60%) Majority of the
respondents are aware of the risk in mutual fund investment (80%)
Majority of the respondents are aware of the market value of units
through Newspaper (54.8%) Majority of the sample investors say yes
to make future investment in mutual funds (80%)
ANALYSIS
 Gender: -
Gender
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Male 83 83.0 83.0 83.0
Female 17 17.0 17.0 100.0
Total 100 100.0 100.0
 Monthly Income :-
Monthly Income
Cumulative
Frequency Percent Valid Percent Percent
Valid Less than Rs.5000 42 42.0 42.0 42.0
Rs.5000-Rs.10,000 22 22.0 22.0 64.0
Rs.10,000-Rs.15,000 18 18.0 18.0 82.0

More than Rs.15,000 18 18.0 18.0 100.0

Total 100 100.0 100.0

 Monthly Saving
Monthly Saving
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Less than 73 73.0 73.0 73.0
Rs.4,000
Rs.4,000-Rs.7,000 13 13.0 13.0 86.0
Rs.7,000- 10 10.0 10.0 96.0
Rs.10,000
More than 4 4.0 4.0 100.0
Rs.10,000
Total 100 100.0 100.0
 Aware about mutual fund:-
Aware about mutual fund
Cumulative
Frequency Percent Valid Percent Percent
Valid No 1 1.0 1.0 1.0
Yes 99 99.0 99.0 100.0
Total 100 100.0 100.0
 How did they come to know about
mutual fund :-
How did they come to know about mutual fund
Cumulative
Frequency Percent Valid Percent Percent
Valid Don’t know 1 1.0 1.0 1.0
Friends 47 47.0 47.0 48.0
Relatives 3 3.0 3.0 51.0
Social Media 13 13.0 13.0 64.0
TV advertisement 36 36.0 36.0 100.0
Total 100 100.0 100.0
 Interested to Invest in mutual fund:-
Invest in mutual fund
Cumulative
Frequency Percent Valid Percent Percent
Valid Yes 54 54.0 54.0 54.0
No 40 40.0 40.0 94.0
Cannot say 6 6.0 6.0 100.0
Total 100 100.0 100.0
Where they want to Invest:-
Where they want to Invest
Cumulative
Frequency Percent Valid Percent Percent
Valid Interested in Mutual Fund. 55 55.0 55.0 55.0
Bank deposit 24 24.0 24.0 79.0
Stock Market 20 20.0 20.0 99.0
Insurance 1 1.0 1.0 100.0
Total 100 100.0 100.0
 Invest in mutual fund for more return
Invest in mutual fund for more return
Cumulative
Frequency Percent Valid Percent Percent
Valid Not interested in Mutual 41 41.0 41.0 41.0
Fund.
Strongly favour 28 28.0 28.0 69.0
Favour 21 21.0 21.0 90.0
Neutral 8 8.0 8.0 98.0
Strongly Disfavour 2 2.0 2.0 100.0
Total 100 100.0 100.0
 Invest in mutual fund for safety :-
Safety
Frequen Valid Cumulativ
cy Percent Percent e Percent
Valid Not interested in 41 41.0 41.0 41.0
Mutual Fund.
Strongly favour 23 23.0 23.0 64.0
Favour 12 12.0 12.0 76.0
Neutral 19 19.0 19.0 95.0
Disfavour 4 4.0 4.0 99.0
Strongly Disfavour 1 1.0 1.0 100.0
Total 100 100.0 100.0
 Limited risk:-
Limited risk
Cumulative
Frequency Percent Valid Percent Percent
Valid Not interested in Mutual 41 41.0 41.0 41.0
Fund.
Strongly favour 25 25.0 25.0 66.0
Favour 25 25.0 25.0 91.0
Neutral 8 8.0 8.0 99.0
Disfavour 1 1.0 1.0 100.0
Total 100 100.0 100.0
Systematic investment:-
Systematic investment
Frequen Valid Cumulativ
cy Percent Percent e Percent
Valid Not interested in 41 41.0 41.0 41.0
Mutual Fund.
Strongly favour 11 11.0 11.0 52.0
Favour 32 32.0 32.0 84.0
Neutral 11 11.0 11.0 95.0
Disfavour 4 4.0 4.0 99.0
Strongly Disfavour 1 1.0 1.0 100.0
Total 100 100.0 100.0
How much they want to invest in mutual fund:-
How much they want to invest in mutual fund
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Not interested in 41 41.0 41.0 41.0
Mutual Fund.
Less than Rs.4,000 34 34.0 34.0 75.0
Rs.4,000-Rs.7,000 21 21.0 21.0 96.0
Rs.7,000-Rs.10,000 4 4.0 4.0 100.0
Total 100 100.0 100.0
How long the respondents like to invest:-
Q15
Cumulative
Frequency Percent Valid Percent Percent
Valid Not interested in Mutual 41 41.0 41.0 41.0
Fund.
Short term ( Below 1 year) 22 22.0 22.0 63.0
Medium term ( 1-2 years) 15 15.0 15.0 78.0
Long term ( Above 3 years) 22 22.0 22.0 100.0
Total 100 100.0 100.0
 Performance factor consider while
investing:-
Performance
Cumulative
Frequency Percent Valid Percent Percent
Valid Not interested in Mutual 41 41.0 41.0 41.0
Fund.
Very important 21 21.0 21.0 62.0
important 23 23.0 23.0 85.0
Neutral 11 11.0 11.0 96.0
Very unimportant 4 4.0 4.0 100.0
Total 100 100.0 100.0
 Service factor consider while investing
in mutual fund:-
Service
Cumulati
Freque Valid ve
ncy Percent Percent Percent
Valid Not interested in 41 41.0 41.0 41.0
Mutual Fund.

Very important 16 16.0 16.0 57.0

important 13 13.0 13.0 70.0

Neutral 21 21.0 21.0 91.0

Unimportant 5 5.0 5.0 96.0
Very 4 4.0 4.0 100.0
unimportant
Total 100 100.0 100.0
 Risk factor for mutual fund:-
Risk factor
Cumulative
Frequency Percent Valid Percent Percent
Valid Not interested in 41 41.0 41.0 41.0
Mutual Fund.
Very important 12 12.0 12.0 53.0
important 17 17.0 17.0 70.0
Neutral 27 27.0 27.0 97.0
Unimportant 3 3.0 3.0 100.0
Total 100 100.0 100.0
 Quality of portfolio:-
Q20.4
Cumulative
Frequency Percent Valid Percent Percent
Valid Not interested in Mutual 41 41.0 41.0 41.0
Fund.
Very important 7 7.0 7.0 48.0
important 20 20.0 20.0 68.0
Neutral 23 23.0 23.0 91.0
Unimportant 8 8.0 8.0 99.0
Very unimportant 1 1.0 1.0 100.0
Total 100 100.0 100.0
Professional management:-
Q20.5
Frequenc Valid Cumulative
y Percent Percent Percent
Valid Not interested in 41 41.0 41.0 41.0
Mutual Fund.
Very important 4 4.0 4.0 45.0
important 26 26.0 26.0 71.0
Neutral 22 22.0 22.0 93.0
Unimportant 6 6.0 6.0 99.0
Very unimportant 1 1.0 1.0 100.0
Total 100 100.0 100.0
Aware about long term capital
gain(LTCG):-
Q21

Frequency Percent Valid Percent Cumulative Percent

Valid No 66 66.0 66.0 66.0
Yes 34 34.0 34.0 100.0
Total 100 100.0 100.0
Interested to invest mutual fund after
Long Term capital Gain (LTCG):-
Q22
Cumulative
Frequency Percent Valid Percent Percent
Valid No 68 68.0 68.0 68.0
Yes 32 32.0 32.0 100.0
Total 100 100.0 100.0
HYPOTHESIS
One-Sample Test
Test Value = 0
95% Confidence Interval of the
Difference
t Df Sig. (2-tailed) Mean Difference Lower Upper
Q10.1 9.224 99 .000 1.040 .82 1.26

Null Hypothesis (H0):- The main factor for preference of mutual fund is not high return .
Alternate Hypothesis (H1):- The main factor for preference of mutual fund is high return.
Significant value obtained from T-table :- 1.66
Calculate value of T-distribution :- 9.22
Since the significance level of the calculated value is less than 0.05 , Null hypothesis is
rejected and alternative hypothesis is accepted .
Chi-Square test
Chi-Square Tests
Asymptotic
Significance (2- Exact Sig. (2- Exact Sig. (1-
Value df sided) sided) sided)
Pearson Chi-Square .207a 1 .649
Continuity Correction .000 1 1.000
Likelihood Ratio .375 1 .540
Fisher's Exact Test 1.000 .830
Linear-by-Linear Association .205 1 .651

N of Valid Cases 100

H0: There is no association between gender and awareness about mutual fund
H1: There is association between gender and awareness about mutual fund
Significant value obtained from Chi- square Distribution Table :- 3.84
Calculate value of Chi-Square test :- .649
Since the significance level of the calculated value is more than 0.05 , null hypothesis is not
rejected.
 FINDINGS
• After analysis this study found that above 80% respondents are male. Maximum of the
respondents income is less than Rs.5000 and 22% respondents monthly income is Rs.5000-
Rs.7000. 73% respondents respond that less that Rs.4000 they have saved money in an month and
13% respondents are save Rs.4000-Rs.7000 in an month. Also most every respondents are aware
about mutual fund and maximum of the responds are come to know about mutual fund of their
friends, Tv advertisement and social media. 54% respondents are want to invest in mutual fund
and 40% respondents are does not want to invest in mutual fund they want to invest in stock
market and bank deposits etc. for investing responds are mostly prefer more return , safety ,
limited risk ,capital appreciation and also systematic investment. 22% responds wants to invest in
short term period and 22% are want to invest in long term period. 85% respondents are seen
advertisement of mutual fund.
• And also found that Most of the respondents are not aware about Long Term Capital Gain (LTCG)
and after Long Term Capital Gain the investors has less interested to invest in mutual fund.
 CONCLUSION

• After the study it is concluded that there is high awareness level of mutual
fund and maximum of male people are aware about this. Most of the people
wanted to invest in systematic investment plan but under less than the
amount of Rs.4000 and also investors are interested in short term schemes.
The main factor of preference for mutual fund is high return. Maximum of
the respondents are interested to invest in mutual fund; others want to
invest in bank deposit and stock market. Investors have mostly considered
Performance Factor, Service Factor and Risk Factor. Also, most of the
respondents are not aware about Long Term Capital Gain and those who are
aware are less interested to invest in mutual fund because of this reason.
RECOMMENDATION
• Almost every respondent is aware about mutual fund but they do not
want to invest because they do not know the process of investing like
where to invest or how to invest; that is why most of the respondents
wants to invest in bank deposit and also in stock market.
 QUESTIONNAIRE

1. Name:-
2. Occupation:-
3. Age:-
4. Your monthly income (in Rs.) :-
a) Less than 5,000 [ ] b) 5,000-10,000 [ ]
c)10,000-15,000 [ ] d)More than 15,000 [ ]

5. How much are you saving monthly?

a) Less than Rs.4,000 [ ] b) Rs.4,000-Rs.7,000 [ ]
c) Rs.7000-Rs.10000 [ ] d) More than Rs.10,000 [ ]

6. Do you know about mutual fund?

a) Yes [ ] b) No [ ]
7. Do you want to invest in mutual fund ?
a) yes [ ] b) No [ ] c) Cannot say [ ]
8. If No, where do you want to invest?

a) Bank deposit [ ]
b) Stock market [ ]
c) Insurance [ ]
d) other (Please specify)……………..[ ]
9. If you want to invest in mutual fund, why?
1 2 3 4 5
a. More return
b. Safety
c. Limited risk
d. Capital appreciation
e. Systematic investment

10. How much do you want to invest in mutual fund (on a monthly basis) ?
a.Rs.1,000-Rs.4,000
b. Rs.4,000-Rs.7,000
c. Rs.7,000-Rs.10,000
d. More than Rs.10,000
11. What attracts you most in mutual fund?
a. Systematic Investment Plan (SIP)
b. Limited investment
c. Proficiency
d. Better fund allocation
12. If you have invested in mutual fund, then in which company’s
mutual fund have you invested?
a. ICICI Prudential
b. HDFC
b. Reliance
c. Birla Sun Life
d. Standard Chartered
e. SBI
f. Any Other (specify) ……………………………..
14. Why do you prefer the above option?
1 2 3 4 5
a. High Return
b. Tax exemption
c. Liquidity
d. Safety & security
e. Profitability

15. How long would you like to invest in mutual fund ?

a. Short term (below 1 year)
b. Medium term (1-2 years)
c. Long term (above 3 years)
16. Have you seen any advertisement for mutual funds?
a. Yes b. No
17. If yes, which company’s advertisements have you seen?
a. Birla Sun Life
b. Reliance
c. Cholamandalam AMC Limited
d. Standard Chartered
e. Franklin Templeton
f. Sundaram
g. HDFC
h. UTI
i. ING VYSA
j. ICICI Prudential
k. Any other (please specify…………………………………………………
18. Rank the following services preferred by you from Mutual Fund companies.
5 is Strongly favour and 1is strongly disfavour
Service 1 2 3 4 5
Telephone service
Online service
Mobile service
Service at your doorstep
19. Mention the name (s) of mutual fund where you have invested.
…………………………………………………………………………
20. Which of the following factors do you consider very important, while
investing in mutual funds?
1 2 3 4 5
a Performance
b. Services
c. Risk factors
d. Quality of portfolio
e. Professional management
f. Wealth creation

21. Are you aware about Long Term Capital Gain (LTCG) Tax?
a. Yes b. No
22. Are you interested to invest in mutual fund in case of payment
of LTCG Tax?
a. Yes b. No
23. As an investor please specify your needs, expectations and
recommendations to develop the mutual funds.
……………………………………………………………
……………………………………….
REFERENCES
• http://www.worldtrans.org/TP/TP1/TP1-9.HTML ( visited on
20.02.18 at 10.00pm)
• https://www.amfiindia.com/research-information/mf-history ( visited
on 20.02.18 at 10.00pm)
• Nilsson, J. (2009). Segmenting socially responsible mutual fund
investors: The influence of financial return and social
responsibility. International Journal of Bank Marketing, 27(1), 5-31.
• Saini, S., Anjum, B., & Saini, R. (2011). Investors’ awareness and
perception about mutual funds. International Journal of
Multidisciplinary Research, 1(1), 14-29.
THANK YOU