chapter – vi factors influencing mutual funds investment...

167

CHAPTER – VI

FACTORS INFLUENCING MUTUAL FUNDS

INVESTMENT DECISION MAKING

One of the main objectives of the study is to identify factors

influencing mutual funds investment decision making and bring out profile of

the mutual funds investors

A decision to invest or not to invest in a particular mutual fund scheme

is not solely guided by consideration of maximisation of expected return. It is

an outcome of several factors like awareness of mutual funds, sources of

investment, investment time frame, sponsors of mutual funds and expected

rate of return. The investor services provided by the mutual funds may also

yield great influence on investment decision.

Hence in this chapter perception of mutual fund investors are collected

and analysed with statistical tools such as percentage and chi-square

technique. The null hypothesis is also framed and tested wherever required.

168

TABLE 6.1

AGE OF MUTUAL FUND INVESTORS

S.No Age No. of Respondents Percent

1.

2.

3.

4.

Below 25

25 - 40

40 - 55

55 and above

32

50

80

138

10.66

16.67

26.67

46.00

Total

300

100

Source : Primary Data

Age is an important factor while investing in different types of Mutual

Funds. Hence age of the respondent is collected and presented in this table. It

reveals that three fourth of total Mutual Fund investors of 72.67 percent

belong to above 40 years category and the remaining one fourth of the

investors i.e. 27.33 percent belong to below 40 years age category. Among

the investors 46.00 percent Mutual Fund investors belong to 55 and above

year’s category. Within this age group they have a lot of personal and family

commitment. Hence they tend to save in Mutual Funds which attract high

return with low risk category. This finding is supporting the previous studies

that aged customer prefer to avoid risk but expect high return by investing in

Mutual Funds. The Mutual Fund organisations consider the finding and target

the age group in future for promoting Mutual Funds. This should be

represented in the following chart.

169

DIAGRAM - 6.1

170

TABLE 6.2

GENDER STATUS OF MUTUAL FUND INVESTORS

S.No Gender No. of Respondents Percent

1.

2.

Male

Female

240

60

80

20

Total

300

100

Source: Primary Data

The gender status of Mutual funds investors was collected and

presented in the table. It is cleared from the table that the most of 80 percent

investors belong to male gender and only 20 percent of the total investor

belongs to female gender. The male gender is dominating than the female. The

Mutual Funds organizations take note of this and formulate Mutual Funds

accordingly.

DIAGRAM -6.2

171

TABLE 6.3

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

S.No Educational

Qualification No. of Respondents Percent

1.

2.

3.

4.

5.

Up to +2

Graduate

Post Graduate

Professional

Any Others

42

63

87

60

48

14

21

29

20

16

Total

300

100


Educational qualification is important criteria in deciding Mutual

Funds investment. Hence the qualification of the respondents were collected

and presented in this table. The table exhibits that majority of the Mutual Fund

investors i.e 70 percent belong to higher qualified of which graduate 21

percent, post graduate 29 percent and professional 20 percent. Others belong

to 16 percent and up to plus two qualified people belong to 14 percent of total

respondents. Well qualified people prefer Mutual Funds than other qualified

people. It is evident from the table that graduates, post graduates and

professional qualified investors prefer Mutual Funds in larger proportion to

others. This finding is also supporting previous literature that qualification is

positively influencing the Mutual Fund investment. Mutual Fund

organizations take note of this and target the Mutual Funds to qualified

investors. It is shown in the following chart.

172

DIAGRAM -6.3

173

TABLE 6.4

OCCUPATION OF THE RESPONDENTS

S.No Occupation No. of Respondents Percent

1.

2.

3.

4.

5.

6.

Self employed

Govt. Service

Private Service

Business

Professional

Pensioners

38

70

56

36

60

40

12.67

23.33

18.67

12.00

20.00

13.33

Total

300

100


Occupation of the investor is positively correlated with Mutual Fund

investment. The occupation of the respondents is collected and presented in

this table. It shows that investors belong to Government service i.e 23.33

percent, private service 18.67 percent and professional 20 percent these three

category form together a sizable portion of 61 percent of total investors. 13.33

percent the pensioner’s, 12 percent businessmen and 12.67 self employed

percent investors form one third of the total investors. The findings indicate

Government service, private service and professional people are important

category of Mutual Fund investors. Mutual Fund organization while framing

and promoting Mutual Fund schemes must cater to the needs of these category

of investors. This finding is also supported by previous literature that

Government and professional people tend to prefer Mutual Fund schemes than

other category of people.

174

DIAGRAM - 6.4

175

TABLE 6.5

INCOME WISE DISTRIBUTION OF THE RESPONDENTS

S.No Annual Income No. of Respondents Percent

1.

2.

3.

4.

5.

Below Rs 200000

Rs.200000 - 400000

Rs. 400000 - 600000

Rs.600000 - 800000

Rs.800000 and above

32

70

94

56

48

10.67

23.33

31.33

18.67

16.00

Total

300

100


Level of income of investors is significantly influencing in investment

of Mutual Funds. Accordingly income size of the respondents is collected and

presented in this table. The table explains that two third i.e. 66 percent of the

investors belong to above Rs.400000 income group and one third i.e. 33

percent of the investors belong to below Rs. 400000 income group. The

investors belong to Rs. 400000 to Rs.600000 income group accounted for

31.33 percent. Thus the Mutual Funds target these income level of investors

and promote the Mutual Funds aggressively than other income group of

investors. This finding is supported by previous literature. It shown in the

following diagram.

176

DIAGRAM 6.5

177

TABLE 6.6

INVESTMENTS PREFERENCE OF THE RESPONDENTS

S.No. Investment Avenues Ranking by Respondents

Total

Respondents

I II III IV V VI VII

1.

Bank Deposit

98

54

45

35

30

24

15

300

2.

Shares & Securities

50

43

70

35

64

28

10

300

3.

Mutual Funds

80

57

45

34

32

28

24

300

4.

Land & Buildings

92

40

63

47

25

21

12

300

5.

Gold, Silver etc

75

60

48

35

40

26

16

300

6.

Govt. Schemes

40

62

54

40

47

34

23

300

7.

Chit Funds / NB FC’s

35

54

50

44

32

50

35

300


Investment preference of investors vary from person to person based

on their perception about risk and return benefits of particular investment. In

this study, the preference pattern of investors was collected, analysed and

presented in this table. The choice of 7 popular types of investment is taken

and investors are asked to rank from first to last in the order of their

preference. The preference of the investors is totaled and scored on the basis

of high score to low score. The ranking of preference of investment is

computed using Garret ranking technique.

178

TABLE 6.7

RANKING OF VARIOUS INVESTMENT AVENUES

Sl. No Investment Avenue Total

Score

Mean

Score

Garrett’s

Ranking

1.

2.

3.

4.

5.

6.

7.

Bank Deposit

Shares & Debentures

Mutual Funds

Land & Building

Gold, Silver etc

Govt. Schemes

Chit Funds / NBFC’s

17983

14720

17151

17831

17103

16007

15240

59.94

49

57.17

59.43

57

53.36

50.8

I

VII

III

II

IV

V

VI


The Garret ranking result shows that bank deposit is preferred by all

investors as rank I (mean score 59.94) followed by land and Building Rank II

(59.43), Mutual Funds rank III (57.17), Gold, Silver Rank IV (57.00),

Government scheme Rank V (53.36) chit funds and shares, debentures are

ranked VI and VII. Most of the investors preferred Mutual Funds ranked third

in order of preference, as it gives higher return and guarded risk compared to

other type of investments. Mutual Fund organizations take note of this ranking

of investments and formulate Mutual Fund schemes according to needs and

wants of the investor.

179

TABLE 6.8

AGE OF THE RESPONDENTS AND THE MOST PREFERRED

INVESTMENT

Age

Group

Most Preferred Investment

Bank Deposit &

Govt Schemes

Shares, Debentures

& Chits

Mutual

Funds

Gold, Land

& Buildings

Total

Below 40

40 – 55

Above 55

22

29

56

26

10

12

19

22

29

15

19

41

82

80

138

Total 107 48 70 75 300


Age of the investors is positively associated with the preference of

investments. In this study also age of the investors and their preference of

investment are studied and presented in this table. The table exhibits that the

investors below 40 years prefer more to invest in shares and mutual funds as

they are ready to take risk. Middle aged investors (40-55 years) prefer to

investor in bank deposit followed by mutual funds as they require lot of liquid

money for their family commitment. Investors above 55 years prefer bank

deposit followed by Land and Building than other risky investments. In order

to test statistically, a null hypothesis is framed and tested using chi-square.

Ho: There is no association between age of the investors and preference of

investment.

Chi square value = 24.3

Degrees of freedom = 6

Probability = 0.000

Table value at 5 percent level of significance 12.59

The chi square result shows that the null hypothesis is rejected as the

calculated value (24.3) is greater than table value (12.59) and there exists a

positive association between age group investors and preference of

investment.

180

TABLE 6.9

EDUCATIONAL LEVEL OF RESPONDENTS AND THE MOST

PREFERRED INVESTMENT

Education &

Qualification


Bank Deposit

& Govt

Schemes

Shares,

Debentures

& Chits

Mutual

Funds

Gold,

Land &

Buildings

Total

Up to + 2

Graduate

Others

20

60

10

5

30

6

6

55

8

11

65

24

42

210

48

Total 90 41 69 100 300


Educational qualification is significant criteria influencing the

preference of mutual funds. This study clubbed and grouped three category of

qualification and their preference of investment. The data collected are

analysed and presented in this table. It reveals that highly qualified investors

tend to invest more amounts in Mutual Fund and shares than less qualified

investors. Thus there exists a positive relationship between educational

qualification and preference of investment. Further this finding is statistically

tested by framing null hypothesis using chi – square test.

Ho: There is no association between educational qualification and preference

of investment.

Chi square calculated value = 14.2


Probability = 0.028

The calculated value of chi square test (14.2) is higher than table value

of 6 degree of freedom at 5 percent level of significance (12.59), the null

hypothesis is rejected. Thus there is positive association between educational

qualification and preference of investments.

181

TABLE 6.10

OCCUPATION OF THE RESPONDENTS AND THE MOST

PREFERRED INVESTMENTS

Occupation


Bank Deposit

& Govt

Schemes

Shares

& Chits

Mutual

Funds

Gold, Land

&

Buildings

Total

Govt. services &

Pensioners

Private services

& Self employed

Business &

Others

35

48

25

10

9

11

25

17

23

40

20

37

110

94

96

Total 108 30 65 97 300


Occupational pattern of investors strongly related to preference of

investment. In this study the occupation of investors is studied, analysed with

preference of investment and presented in this table. It explains that majority

of the investors prefer bank deposit, Government schemes followed by Gold,

Land & Building. A sizable portion of Government serviced investors prefer

Mutual Funds and shares along with the other type of investment. Private and

business investors prefer bank deposit and Gold, Land and Building with

moderate interest on Mutual funds and shares.

The findings of the study are tested with statistics using chi-square by

framing null hypothesis.

182

Ho: There is no association between occupation and preference of investment.

Chi – square Result

Chi square calculated value 15.5


Probability = -0.017

Table value at 5 percent Level of significance 12.59

As calculated value of chi-square (15.5) is higher than table value

(12.59) at 5 percent level of significance for 6 degree of freedom the null

hypothesis is rejected and proved that there is a positive association between

occupation and preference of investment by investors.

183

TABLE 6.11

ANNUAL INCOME AND THE MOST PREFERRED INVESTMENTS

OF THE RESPONDENTS

Income


Bank Deposit

& Govt

Schemes

Shares

& Chits

Mutual

Funds

Gold, Land

& Buildings

Total

Below 4 Lakh

4 Lakh to 6 Lakh

Above 6 Lakh

20

24

41

15

14

17

21

21

22

46

35

24

102

94

104

Total 85 46 64 105 300


Annual income of the investors is a valuable factor in preference of

investment. This table explains how the different income categories of

investors prefer the different type of investments. Majority of the investors

prefer Gold, Land and Building followed by bank deposit. Mutual Fund is

preferred by all categories of investors because of higher return and liquidity

to other investment. Further the finding is tested by statistically using chi-

square by framing the null hypothesis. There is no association between income

and preference of investment.

Calculated chi square value = 15.0

Degree of freedom = 6

Probability = 0.020

Table value at 5 percent Level of significance = 12.59

Ho: There is no association between annual income of the investors and

preference of investment.

As the calculated value of chi- square (15.0) is greater than table value

(12.59) at 5 percent level of significance for 6 degree of freedom, the null

hypothesis is rejected and proved that annual income of the investors

positively influence the preference of invest.

184

TABLE 6.12

SOURCES OF INVESTMENTS

SL.No. Sources No. of Respondents Percent

1.

2.

3.

4.

Savings from Income

Personal/Bank Loan

Sale of other assets

Gifts and Others

234

35

21

10

78

11.67

7

3.33

Total 300 100


Investors are asked to indicate the different sources through which

investments are made. The different sources of investment are collected and

presented in this table. It shows that majority of the investors 78 percent made

investment through savings from income. Only 11.67 percent of the investors

borrow money for investment. Small number of investors sale their assets 7

percent to invest in different types of investment. Very few investors stated

they made investment through gifts from others (3.33)

185

DIAGRAM 6.6

186

TABLE 6.13

PREFERENCE PATTERN OF MUTUAL FUND INVESTORS

SL. NO. Mutual Funds No. of. Respondents Percent

1.

2.

3.

UTI

Other Public Sector

Private Sector

54

90

156

18

30

52

Total 300 100


Investor’s preference pattern of mutual fund is collected and presented

in this table. It indicates that more than half of the total respondents 52 percent

prefer private sector Mutual Fund followed by other public sector 30 percent

and UTI 18 percent. The reason for the preference of private sector mutual

fund are the service provided by them at doorstep with quicker processing

time. Further these private sector mutual funds have collaboration with

reputed foreign fund manager with lot of experience in this field. It was shown

in the chart.

187

DIAGRAM 6.7

188

TABLE 6.14

CHOICE OF MUTUAL FUNDS BASED ON SAFETY BY

THE RESPONDENTS

SL. NO. Mutual Funds No. of. Respondents Percent

1.

2.

3.

UTI

Other Public Sector

Private Sector

94

146

60

31.33

48.67

20.00

Total 300 100


Investors are asked to indicate the preference of Mutual fund sector

from safety point of view. Their views are collected and presented in this

table. It reveals that nearly half of the respondents 48.67 percent preferred

private sector Mutual Fund from safety point of view. Overall, 80 percent of

the investor preferred public sector & UTI Mutual fund from safety point of

view i.e. less risk.

DIAGRAM 6.8

189

TABLE 6.15

CHOICE OF MUTUAL FUNDS IN TERMS OF

LIQUIDITY BY THE RESPONDENTS

SL. NO. Mutual Funds No. of.

Respondents Percent

1.

2.

3.

UTI

Other Public Sector

Private Sector

40

70

190

13.33

23.33

63.34

Total 300 100


Liquidity factor is an important criteria in deciding Mutual Funds

investment. Hence investors’ opinion about liquidity aspect of mutual fund

was collected and presented in this table. It exhibits that almost two third of

respondents i.e. 63.34 percent preferred private sector mutual funds as more

liquidity than others followed by public sector i.e. 23.33 percent and UTI

13.33 percent. The main reason is the private sector mutual funds have their

branches, collaborating branch in major cities and towns which promoted the

investors to convert their investment into cash within the short time. It was

shown in the diagram.

190

DIAGRAM -6.9

191

TABLE 6.16

CHOICE OF MUTUAL FUNDS IN TERMS OF PROFITABILITY

BY THE RESPONDENTS

SL. NO. Mutual Funds No. of.

Respondents Percent

1.

2.

3.

UTI

Other Public Sector

Private Sector

65

80

155

21.67

26.67

51.66

Total 300 100


Profitability is the significant criteria in any investment. In Mutual

Funds also the perception of investors about profitability was collected and

presented in this table. It stated that majority of the investors i.e.51.66 percent

preferred private sector Mutual Funds than public sector Mutual Funds,

because these generate more income. The main reason is that the private sector

mutual funds invest minimum amount of corpus in Government securities and

major part invested in industries like IT, Infrastructure and debt oriented

sector. It was shown in the diagram.

192

DIAGRAM 6.10

193

TABLE 6.17

PREFERENCE OF SCHEME OF MUTUAL FUNDS

OF THE RESPONDENTS

SL. NO. Scheme of Mutual

Funds

No. of.

Respondents Percent

1.

2.

3.

Open Ended

Closed Ended

Interval

210

60

30

70

20

10

Total 300 100


Respondents have been asked to indicate the preference of different

type of Mutual Funds schemes. This information were collected and presented

in this table. It explains that majority of the investor prefer open ended fund

i.e. 70 percent followed by closed ended fund 20 percent and interval fund 10

percent. The reason for preference of open ended fund is providing instant

liquidity to the Mutual Funds investors. It was shown in the chart.

194

DIAGRAM 6.11

195

TABLE 6.18

PREFERANCE OF THE TYPE OF MUTUAL FUNDS BY THE

RESPONDENTS

SL. NO. Type of Schemes No. of. Respondents Percent

1.

2.

3.

4.

5.

6.

Growth

Income

Balanced (I/G)

Tax Savings (ELSS)

Sector Specific Funds

Others

72

108

45

40

12

23

24

36

15

13.33

4

7.67

Total 300 100


Investors give attention to preference of particular type of mutual

funds. The data was collected and analysed in this table. It shows that one

third of total Mutual Funds investors i.e. 36 percent prefer income scheme

followed by growth scheme 24 percent, balanced scheme 15 percent and tax

savings scheme 13.33 percent. Few investors prefer sector specific funds i.e. 4

percent and other funds 7.67 percent. From investor’s point of view income,

Growth, Balanced and Tax savings funds are more popular and preferable than

other type of funds schemes. It was shown in the diagram.

196

DIAGRAM 6.12

S

197

TABLE 6.19

CONVENIENT MODE OF BUYING MUTUAL FUNDS

OF THE RESPONDENTS

SL.

NO. Mode of Buying Mutual funds

No. of.

Respondents Percent

1.

2.

Initial public offer

Through stock market

195

105

65

35

Total 300 100


Mode of buying mutual fund is another important factor influencing

the mutual funds investors. These data were collected and presented in this

table. It reveals that majority of the investors i.e.65 percent buys Mutual Funds

through initial public offer than the stock market of 35 percent. Investors

prefer initial public offer because the fund value will be Rs. 10 per unit and

carry good appreciation. It was shown in the chart.

198

DIAGRAM 6.13

199

TABLE6.20

DESIRED LIQUIDITY ROUTE OF MUTUAL FUNDS OF THE

RESPONDENTS

SL. NO. Desired Liquidity Route No. of. Respondents Percent

1.

2.

3.

4.

5.

Listed in stock Exchanges

Buy back option

Switching over

Roll over option

Pledging

180

60

24

15

21

60

20

8

5

7

Total 300 100


Investors are asked to specify the desired liquidity route through which

they convert their mutual fund into money. These data were gathered and

presented in the table. It explains that majority of them opted Mutual Funds

which listed in stock exchange i.e.60 percent followed by buy back option 20

percent. One fifth of total investors preferred the following routes such as

switching over 8 percent, rollover option 5 percent and pledging 7 percent.

Majority of the Mutual Fund investors preferred listing in stock exchanges

because these funds can be converted at any time whenever they require. It

was shown in the diagram.

200

DIAGRAM 6.14

201

TABLE 6.21

SOURCES OF INFORMATION OF MUTUAL FUNDS DEPENDED BY

THE RESPONDENTS

SL. NO. Sources of Information No. of.

Respondents Percent

1.

2.

3.

4.

5.

Stock Exchange Prices quoted

in Newspapers

Periodicals / Bulletins published

by Mutual Funds

Direct enquiry from the Mutual

Funds

Brokers and market

Intermediaries

Online (Internet)

130

40

24

70

36

43.33

13.34

8.00

23.33

12.00

Total 300 100


Sources of information of mutual funds depended by investors is an

significant factor influencing the Mutual Funds. Hence these data are collected

and presented in this table. It exhibits that most of the investor i.e.43.33

percent depend stock exchange price quotation followed by brokers and

market intermediaries 23.33 percent. Both of them together form 66.66

percent, i.e. almost two third of total Mutual Fund investors. The remaining

one third of investors prefer periodicals / Bulletins i.e.13.34 percent, online

(Internet) 12 percent and direct enquiry 8 percent. These factors have to be

taken care by the Mutual Funds organisations while servicing the unit holders.

It was shown in the diagram

202

DIAGRAM 6.15

203

TABLE 6.22

BASIS OF BUYING AND SELLING DECISION OF THE

RESPONDENTS

SL. NO. Basis of Decision No. of.

Respondents Percent

1.

2.

3.

4.

5.

Self assessment of the scheme

Information through Journals &

periodicals

Advice of Brokers

Past performance of Mutual Funds

Counseling with knowledgeable

friends in Stock market

24

40

94

114

28

8

13.33

31.33

38.00

9.34

Total 300 100


Buying and selling decisions of investments are based on self

assessment or through others. In this study also the perception of investors

about buying and selling decisions and was collected and presented in this

table. It is cleared from the table that two third of investors buy and sell

Mutual Funds based on past performance results i.e.38 percent and advice of

brokers 31.33 percent. The remaining one third of total Mutual Fund investors

decide based on information through journals 13.33 percent, counseling with

friends 9.34 percent and self assessment 8 percent. It was shown in the chart.

204

DIAGRAM 6.16

205

TABLE 6.23

EXTENT OF INTEREST IN KNOWING NEW

MUTUAL FUNDS SCHEMES BY THE RESPONDENTS

SL. NO. Extent of Interest No. of.

Respondents Percent

1.

2.

3.

Very much

To some extent

Not at all

77

83

40

59

27.67

13.33

Total 300 100


The extent of investor’s interest in knowing new Mutual Funds was

collected by the researcher and presented in this table. It shows that most of

the investors i.e.59 percent are very much interested in knowing new Mutual

Funds, and followed by to some extent 27.63 percent. Only 13.33 percent of

investors are not interested in knowing new Mutual Funds. It was shown in the

chart.

DIAGRAM 6.17

206

TABLE 6.24

MINIMUM PERIOD OF INVESTMET IN MUTUAL FUNDS

PERFERRED BY THE RESPONDENTS

SL.

NO. Minimum Period

No. of.

Respondents Percent

1.

2.

3.

4.

5.

Below 1 Year

1 Year – 2 Years

2 Years - 3 Years

3 Years – 4 Years

4 Years & Above

48

85

125

30

12

16.00

28.33

41.67

10.00

4.00

Total 300 100


Holding period of Mutual Funds is an important factor in buying and

selling of Mutual Funds. The perception of investors about minimum holding

period is collected from Mutual Fund investors and presented in the table. It

clearly explains that most of the investors i.e.41.67 percent prefer to hold

Mutual Funds for 2 – 3 year’s period followed by 1 – 2 years 28.33 percent.

Both these groups prefer 1 – 3 years as holding period, that constitutes two

third of the total Mutual Fund investors. The remaining 14 percent of the

investors prefer above 3 years. It was shown in the chart.

207

DIAGRAM 6.18

208

TABLE 6.25

AMOUNT OF INVESTMENT PREFERRED BY THE RESPONDENTS

IN A SINGLE MUTUAL FUNDS SCHEMES

SL. NO. Amount of Investment No. of.

Respondents Percent

1.

2.

3.

4.

5.

Below Rs. 2000

Rs. 2000 – Rs. 4000

Rs.4000 – Rs.6000

Rs.6000 – Rs. 8000

Rs. 8000 and Above

30

40

110

70

50

10.00

13.33

36.67

23.33

16.67

Total 300 100


Amount of investment made in a single Mutual Fund schemes by the

Mutual Fund investors was collected and presented in this table. It explains

that 60 percent of total investors invest below Rs. 6000 and 40 percent of the

investors invest above Rs. 6000 in a single scheme. Among the slab 36.67

percent of investors invest Rs. 4000 – 6000 and followed by Rs. 6000 – 8000.

The majority of investors save Rs. 4000 or more in a single Mutual Fund

schemes. It was shown in the chart.

209

DIAGRAM 6.19

210

TABLE 6.26

AMOUNT OF SAVINGS OF INVESTMENTS IN MUTUAL FUNDS

BY THE RESPONDENTS


The savings pattern of investments in Mutual Funds by the Mutual

funds investors was shown in the above table. The data was collected and

analysed. It shows that the majority of the Mutual Funds investors invest there

savings of Rs. 5000 – Rs. 10000 i.e.40 percent in Mutual Funds followed by

Rs. 10000 – Rs. 15000 26.67 percent and above Rs. 15, 000 only 10 percent.

It is found that the majority of the Mutual Funds investors invested there

savings below Rs. 10,000. It was shown in the chart.

DIAGRAM 6.20

SL. NO. Amount of savings in

Mutual Funds No. of. Respondents Percent

1.

2.

3.

4.

5.

Below Rs. 5000

Rs.5000 – Rs. 10000

Rs.10000 – Rs. 15000

Rs.15000 – Rs. 20000

Rs. 20000 and above

46

120

80

33

21

15.33

40.00

26.67

11.00

7.00

Total 300 100

211

TABLE 6.27

PART OF THE YEAR PREFERRED BY MUTUAL FUNDS

INVESTORS

SL. NO. Part of the Year No. of.

Respondents Percent

1.

2.

3.

4.

January to March

April to June

July to September

October to December

125

30

45

100

41.67

10.00

15.00

33.33

Total 300 100


The month and part of the year desired by Mutual Fund investors for

investing the money in Mutual Funds is collected and analysed in this table.

The table reveals that most of the investors i.e.41.67 percent preferred January

to March period followed by October to December period 33.33 percent. Both

these two period together form 75 percent of total Mutual Fund investors.

Only the remaining 25 percent of the investors prefer April to June and July to

September period. It was shown in the chart.

212

DIAGRAM 6.21

213

TABLE 6.28

PERCENTAGE OF INVESTMENT IN MUTUAL FUNDS

BY THE RESPONDENTS

SL. NO. Percentage of Investments No. of.

Respondents Percent

1.

2.

3.

4.

Up to 10 percent

10 percent – 20 percent

20 percent - 30 percent

30 percent and Above

60

110

90

40

20.00

36.67

30.00

13.33

Total 300 100


Investors are asked to mention the percentage of their income in

investment of Mutual Funds and this information was collected and presented

in the table. It exhibits that two third of the investors stated they invest 10

percent to 20 percent of income i.e.36.67 percent and 20 percent to 30 percent

of income 30 percent in Mutual Funds. One third of the total investor only

stated they invest up to 10 percent of their income i.e.13.33 percent in Mutual

Funds. It is found that majority of the investors save up to 30 percent of their

income in Mutual Funds hoping that it deliver good return at reduced risk

level. It was shown in the chart.

214

DIAGRAM 6.22

215

TABLE 6.29

SATISFACTION OF CUSTOMER’S SERVICE PROVIDED

BY MUTUAL FUNDS

SL. NO. Satisfaction Level No. of.

Respondents Percent

1.

2.

3.

Highly Satisfied

Satisfied

Not Satisfied

75

165

60

25

55

20

Total 300 100


Satisfaction of investor’s customer service is prime factors influencing

any type of investment. In this study also satisfaction level of Mutual Funds

investors was collected and presented in this table. It explains that most of the

investors i.e.80 percent stated either satisfied 55 percent or highly satisfied 25

percent with customers’ services provided by Mutual Fund organization. Only

one fifth of the investors are not satisfied with the customer services provided

by these organisations. It was shown in the diagram.

216

DIAGRAM 6.23

217

TABLE 6.30

WATCHING OF NAV OF MUTUAL FUNDS

BY THE RESPONDENTS

Yes / No No. of. Respondents Percent

Yes

No

220

80

73.33

26.67

Total 300 100


Net Asset value (NAV) is the decisive factor to hold or sell the Mutual

Funds. Watching of these NAV is an important from Mutual Fund investor’s

point of view. Hence these data also collected and presented in the table. It is

clear from the table that most of the investors i.e.73.33 percent stated yes i.e.

they watch the NAV movement regularly and remaining 26.67 percent of the

investors stated they do not watch the NAV regularly. It was shown in the

chart.

DIAGRAM 6.24

218

TABLE 6.31

MODE OF WATCHING OF NAV BY THE RESPONDENTS

SL. NO. Mode No. of.

Respondents Percent

1.

2.

3.

4.

News paper

Periodicals

TV

Online / Email / Mobile

70

30

20

100

31.82

13.64

9.10

45.44

Total 220 100


Mutual Funds investors are further asked to specify what mode through

which NAV of Mutual Funds is watched. These data are collected and

presented in the table. It shows that many of the investors track NAV of

Mutual Fund through online / E Mail / Mobile i.e.45.44 percent followed by

news paper 31.82 percent remaining investors watch NAV either through

periodicals 13.64 percent or through TV 9.10 percent. It is found that online

and News papers are popular media through which NAV of Mutual Fund is

watched by investors.

DIAGRAM 6.25

219

TABLE 6.32

AWARENESS OF MUTUAL FUNDS REGULATION BY SEBI

SL. NO. Awareness Level No. of.

Respondents Percent

1.

2.

3.

Awareness

Less Awareness

No Awareness

175

95

30

58.33

31.67

10.00

Total 300 100


Mutual Funds are regulated by Securities and Exchange Board of India

(SEBI) from time to time. The investors are asked to mention whether they are

aware of these regulations by SEBI. These data are collected and presented in

the table. It indicates that majority of the investors i.e.90 percent are either

well aware 58.33 percent or less aware 31.67 percent of regulation by SEBI

and only 10 percent of the investors indicates they are not aware of regulation

of Mutual Funds by SEBI.

DIAGRAM 6.26

chapter – vi factors influencing mutual funds investment...

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