A STUDY ON INVESTOR ATTITUDE

TOWARDS MUTUAL FUNDS

Gaganpreet Singh

Roll No: 15MBA1216

INTRODUCTION
A

mutual fund is an investment vehicle that pools in the money of

several investors, and collectively invests this amount in either the
equity market or the debt market, or both, depending upon the
funds objective.
Mutual

fund is a retail product designed to target small investors,

salaried people and others who are intimidated by the mysteries of
stock market but, nevertheless, like to reap the benefits of stock
market investment.
SEBI

has played a vital role in regularizing the mutual fund

business
SEBI

has started working for the interest of investors.

INTRODUCTION
Diversification

is a major advantage of investment

through Mutual Funds, as investors get the benefit of
various instruments through a single avenue.
Professionally qualified people manage the funds.
Transparency of operations as well as investment
pattern and philosophy by disclosures of portfolio
also add to the advantages of investing in Mutual
Funds.
The Mutual Fund industry is very well regulated by
SEBI
Mutual Funds offer tax benefits. Dividend income
received from investing in Mutual Funds is tax free in
the hands of the investor. Investments in the growth
option will be subject to long term or short-term
capital gains tax as applicable.

OBJECTIVES OF THE STUDY:

To

study the investors attitude towards the mutual funds.

To

find out the factors which influencing the investors to prefer the
investment in mutual funds.
To

suggest the suitable measures for extending the scope for

investment in mutual funds based on findings of the study.

RESEARCH
METHODOLOGY
The type of research
carried out was Descriptive. Descriptive
research, also known as statistical research, describes data
and characteristics about the population or phenomenon
being studied. Descriptive research answers the questions
who, what, where, when, "why" and how.

Primary and secondary methods were used to collect the

data for the project
Questionnaire was used as a tool for primary data collection.
Secondary data were collected from books, journals, websites
and magazines.

STATISTICAL TOOL FOR ANALYSIS:

Percentage analysis:
Percentage method refers to a specified kind
which is used in making comparison between two
or more series of data. Percentages are based on
descriptive relationship. It compares the relative
items. Since the percentage reduces everything to
a common base and thereby allow meaning
comparison.
Percentage =

Number of respondents x

100

Total no. of respondents

Data

Interpretation

SHOWING CLASSIFICATION OF RESPONDENTS

BASED ON OCCUPATION

INTERPRETATION:
8% are the students
42.7%are the government employees
39.3% are the private employees
7.3%are the business
2.7% are the retired peoples.

CHART SHOWING CLASSIFICATION OF RESPONDENTS

BASED ON AMOUNT INVESTED

INTERPRETATION:
44% of the respondents are
invested less than 10000.
56% of the respondents are
invested above 10000

RESPONDENTS BASED ON REASON FOR

INVESTMENT IN MUTUAL FUNDS

21.3% of the respondents are invested for their child education.

10.7% are invested for retirement

32% are invested for house

17.3% are invested for vacation abroad.

18.7% are invested for other purposes.

FINDINGS

The Study was aimed at identifying the level of attitude towards

the mutual funds.

There is significance relationship is found between the gender

and respondents preferences for investment options, and womens
are equally prefer the dividends and growth for the investments.

There is significance relationship is found between the gender

and respondents purpose for investments. Males are mostly
purpose to invest for their child education. and females are mostly
purpose to invest for house and other purposes.

There is no relationship found between age and respondent

preferring for investments.

FINDINGS (CONT)...

There is significance relationship found between age

and respondents preference for mutual funds.
Respondents are mostly prefer the mutual funds for
savings and returns. And next they prefer the mutual
funds for diversifications and risk tolerance.

Ranking the factors for investing in mutual funds is

concerned the tax benefit has got first rank and
savings has got second rank and portfolio management
and balanced risk and potential risk has got third,
fourth, fifth ranks.

SUGGESTIONS

The average attitude score reveals that the respondents are giving more
importance to the dividends and growth. Therefore the mutual funds
should improve the scope of dividends and growth of the mutual funds.
Mutual fund companies should segment their target customers and
position their products. The target segment can be broadly divided into
institutional segment and retail investor segment. The institutional
segment consisted of treasury departments of corporate, trusts, etc and
suitable products such as institutional income schemes and money
market schemes can be targeted at them. As far as retail investors are
concerned, they can be in turn divided into various segments such as
young families with small or no children, middle-aged people saving for
retirement and retired people looking for steady income. Suitable
products such as growth and balanced schemes for young families and
income schemes with certain and steady returns for retired people can be
marketed. By proper segmentation and by targeting the right product to
the right customer, mutual fund companies can hope to win the
confidence of their customers and own them for a lifetime. In this way the
market scope for mutual funds can be expanded.

SUGGESTIONS (CONT)...

Investors usually review a range of information before

purchasing mutual fund shares. In general, they
frequently review or ask questions about a funds fees
and expenses and its historical performance. They
most often turn to professional financial advisers for
information prior to purchasing fund shares. Some
investors also visit Mutual Fund Company; confer with
friends, family, or business associates for information
before buying fund shares, while others use the
Internet regularly. The Internet, with its interactive
capabilities, is an effective vehicle for communicating
mutual fund information to retail investors

CONCLUSION

The present study looks at the attitude level of the retail

investors towards investment in mutual funds. The small
investors purchase behavior does not have a high level. The
buying intent of a mutual fund product by a small investor
can be due to multiple reasons depending upon customers
risk return trade off. Presently, more and more funds are
entering the industry and their survival depends on
strategic marketing choices of mutual fund companies, to
survive and thrive in this highly promising industry, in the
face of such cut throat competition. Therefore, the mutual
fund industry today needs to develop products to fulfils
customer needs and help customers understand how its
products to their needs. Thus the study provokes the
authority to take some positive measures for expanding the
scope of mutual funds investment.

THANK YOU