Mutual Fund - An Effective Instrument For Investment

Research Report
On
“Mutual Funds - An Effective Instrument For Investment”
Research topic- General behaviour of investors (in cities).
Submitted by:
Samridhi Maheshwari
NMIMS Anil Surendra Modi School Of Commerce
Mutual Funds - An Effective Instrument Of Investment
Acknowledgement
I would like to thank Mr. Sujit Gaur to give me the opportunity to intern at Aditya Birla
Sun Life Mutual Funds. I would also like to thank all the employees at Aditya Birla Sun
Life Mutual Funds, Varanasi branch to mentor me. Without their wonderful guidance the
research would have not been able to be a success.
I would also like to thank all the respondents who helped in the success of the project by
sharing their honest views which were best to their knowledge.
Mentor:
Mr. Sujit Gaur,
Branch Manager,
Aditya Birla Sun Life Mutual Funds,
Varanasi.
Sr.
Content
No.
1
. Abstract
2
. Introduction
1
2
. More About Mutual Funds.
2
2
. Mutual Fund Better Than Other
3 Investment Options?
2
. Mutual Fund Companies in India
4
2
. Choosing a suitable scheme
5
2
. Analysis of the performance of
6 different schemes
3
. Research Objectives
1
3
. Hypothesis
2
3
. Research design
3
3
. Sample selection
4
3
. Data collection
5
4
. Primary data analysis
1
4
. Advanced data analysis
2
5 Limitation
6 Scope
7 Conclusion
8 References
A
1 Annexure -Glossary
A
2 Annexure- Abbreviations Used
A
3 Annexure- Questionnaire
1.Abstract
The overall purpose of the research is to understand how Mutual Fund works and how
mutual funds might prove to be a better investment option that various other investment
tools available in the market. The research paper aims to educate the readers to choose
their investment tools wisely and carefully. We shall also understand how to read and
analyse the performance of the funds before we choose the best fund to invest in. In the
research paper, we also try to understand the general behaviour of investors who invest in
mutual funds or any other market instruments.
Keywords: Mutual Funds, AMC, trust, equity market, debt market, liquid funds,
financial planning, wealth planning, investors.
2. Introduction
2.1. Introduction
A mutual fund is a trust that pools the savings of a number of investors who share a
common financial goal and investments may be in shares, debt securities, money market
securities or a combination of these.1
An AMC collects these savings of investors and professionally manages the investment
portfolio on behalf of these investors and take certain percentage(1-3%) of the AUM as
asset management fees.
2.2. More About Mutual Funds.
2.2.1 Organisation Of Mutual Funds
The following is the structure of a mutual fund
-Sponsor: A sponsor is a person who alone or in association with another corporate body
establishes a mutual fund. (S)he must contribute to at least 40% of the net worth of the
investment managed by the AMC (with a minimum of 20 Cr) and must meet the
eligibility criteria prescribed by SEBI.
-Trust: A mutual fund acts as a trust in accordance with the provision of the Indian Trust
Act, 1882 by the sponsor.
-Trustee: A trustee is usually a company or a board of trustees(body of individuals), the

main responsibility of whom is to safeguard the interest of the unit holder. At least 2/3rd
of the directors of the trustees must be independent directors i.e. they must not be
associated with the sponsor in any way.
-Asset Management Company(AMC): The trustees appoints the AMC which is required
to be approved by SEBI. At least 50% of the directors of the AMC must be independent
directors i.e. they must not be associated with the sponsor in any way.
-Custodian: A trust company, bank or similar financial institutions registered with SEBI
is responsible for holding and safeguarding the securities owned within a mutual fund. A
custodian of a mutual fund may also act as its transfer agent.
-Registrar and Transfer Agent: The transfer Agents are appointed by the AMC to process
the application forms, redemption requests, and dispatches account statements to the unit
holders. They also handle communications with investors and update investor records.
Following is the pictorial representation of a mutual fund in India:
1
Dhanashree Investments
SPONSOR
TRUST TRUSTEES
COMPANY
(AMC)
REGISTRAR CUSTODIANS BANKERS

AND TRANSFER
2.2.2 Regulatory Authority
An AMC is regulated by various bodies and is binded by various acts which formulates
policies and regulates the mutual funds in order to safeguard the interest of the investors
and all mutual funds, either promoted by public or private sector or one promoted by
foreign entities, are governed by these regulations. The various regulatory authorities are:
★ Securities and Exchange Board of India(SEBI) since a mutual fund deals heavily
in the share market.
★ Reserve Bank of India(RBI) since mutual funds invests in money market and debt
instruments and also they have a huge daily transactions of money in the form of new
investments and redemptions.
★ Indian Trust Act,1882 since mutual funds acts as a trust.
★ Companies Act, 1956 since the mutual fund forms an AMC.
Being regulated by these four authorities, it becomes less riskier to invest in mutual
funds. (The risk of market changes still remains).
Also, The Association of Mutual Funds in India (AMFI) is dedicated to developing the
Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance
and maintain standards in all areas with a view to protecting and promoting the interests
of mutual funds and their unit holders.
2.2.3 Types of Mutual Funds2
There are various types of mutual funds in the industry to cater to needs of various
investors.
The major types of mutual funds are:
● Based on Structure:
Open Ended Schemes: These are the funds in which shares can be issued and
redeemed at any time. The funds will continue to issue shares no matter how high
the demand is.
Close Ended Schemes: These are the funds with fixed number of shares(or units).
The shares are not created by fund managers but are only traded in the secondary
market. The price per share is determined by the market and is usually determined
by the NAV per share of the investment held by the funds. The price is at a
premium or at a discount to the NAV.
Interval Schemes: These funds are a combination of open ended and close ended
schemes. These units are open for sale or redemption for a predetermined interval
at prevailing NAV related price.
● Based on Investment objective:
2 bankbazaar.com
Growth/equity oriented schemes: These funds invest mainly in equity and aims at
medium to long term capital appreciation with comparatively high risk-high
return.
Income or debt oriented schemes: These are regular and steady income schemes
where investments are made in fixed income securities such as bonds, corporate
debentures, government securities and money market instruments.
Balanced schemes: Such schemes make investments in a combination of equity

and fixed-income securities, hence providing a regular income as well as growth
of the investment.
Money market or liquid funds: These funds aim to provide easy liquidation and
preservation of capital but with moderate income. They invest in short term
instruments such as T-Bills, Certificate of deposits, Commercial papers, etc.
Gilt funds: These funds invest exclusively in government securities. NAV of such
funds are determined by the prevailing interest rates, and other economic factors.
Fund of funds scheme: These fund’s portfolio comprises of different mutual fund
scheme.
Gold exchange traded funds: The investment objective of such schemes are in line
with returns on investment on physical gold.
Floating rate funds: These are the funds which have variable coupon rate. It varies
according to the current interest rate. It is more suitable when the the interest rates
are expected to raise.
● Other schemes:
Tax saving schemes: Government offers tax incentive for investments in specific
funds like ELSS(Equity Linked Savings Schemes) which qualifies for tax
exemption under section 80C of Income Tax Act. It comes with a lock-in period
of three years.
Index schemes: These are funds that invest in instruments that represent a
particular index on an exchange so as to mirror the movement and returns of the
index e.g. buying shares representative of the BSE Sensex.
Sector specific schemes: These are funds that invest in a particular sector of the
market e.g. Infrastructure funds invest only in those instruments or companies that
relate to the infrastructure sector. Returns are tied to the performance of the
chosen sector. The risk involved in these schemes depends on the nature of the
sector.
Dividend payout schemes: Mutual fund companies as and when they make
profits, distributes a part of the money to the investors as dividends. If one wants
to keep taking part of profit regularly, they may select this option.
Dividend reinvestment schemes: This is similar to the previous type other than
that the dividend so declared is re-invested in the same fund on the same day’s
NAV.
2.2.4 Advantages And Disadvantages Of Mutual Funds
Advantages:
For investors with limited knowledge, time or money, mutual funds can provide
simplicity and other benefits. Some of these benefits are:
Divisibility: It is not possible for all investors to buy a round lots of securities.
Mutual funds pools money from such small investors and buys such heavy
securities.
Liquidity: Mutual funds provide relative ease in the ability to get in and out.
Professional management: Mutual funds hire professionals to manage funds who

have great knowledge in the field.
Diversification: Asset diversification helps in managing risk. With mutual funds,

having huge total investment, makes diversification of funds possible.
Economies of scale: Mutual funds are able to take advantage of their buying and
selling volume to reduce transaction costs for investors.
Regulations: A mutual fund company is monitored by many authorities as

discussed in section 2.2.2.
Rupee cost averaging: Rupee cost averaging is an approach in which you invest a
fixed amount of money at regular intervals. This in turn ensures that you buy
more shares of an investment when prices are low and less when they are high.
When one invests in SIP, the fluctuations in the market does not have major effect
on the investment.
Disadvantages:
Along with certain merits of investing in mutual funds, there are certain
limitations of the same. Some of the major reasons are:
Trading limitations: Most mutual funds cannot be traded in the middle of the day.
It can be traded only at the end of the day.
Dilution: Although diversification helps reduce risk, but it is also

disadvantageous. For example, if a single security doubles its value in the
portfolio, the total invested amount does not double itself as that particular share
was a small part of the portfolio.
Inefficiency of cash reserves: Mutual funds mostly keep aside a large cash reserve
in order to protect itself from a large number of simultaneous withdrawals. This
reduces the potential return.
Costs: Mutual fund takes fees from its investors for managing their funds. This
reduces the overall return.
2.2.5. How Mutual Funds Work?
When an investor invests in a particular fund with an AMC, the AMC will allocate units
of the fund in the name of the investor on the basis of the NAV of that day. AMCs hire
professionals who manage the securities on behalf of the unit holders and each investor
holds a pro-rata share of the portfolio, i.e. entitled to profits as well as losses.
The flowchart below briefly describes the working of mutual funds.
Mutual fund companies do not directly go to the investors to get the investments. Instead
they get connected to various banks, National Distributors(NDs), and Individual
Financial Advisors(IFAs). These get investments for the AMCs to manage in return of
which they get commissions.
But the question is who all are eligible for this work?
One has to clear the NISM Series 5A exam to directly or indirectly work in mutual
funds. After someone has passed this exam, if one wants to work individually as an IFA,
they have to apply for a ARN code and EUIN code. If someone wants to work with some
banks or NDs and pitch mutual funds to investors, they have to only apply for EUIN code
as these banks and NDs have their own ARN code. Now, these IFAs, NDs or Banks have
to register with different mutual fund companies and get empanelled with them to work
with them and get permission to sell their products.
2.2.6. Who Invests In A Mutual Fund?3
Following is the list of eligible investors in a mutual fund.
★ Resident Indians
★ Non-resident Indians (NRI)
★ Persons of Indian Origin (POI)
★ Indian Public Sector Undertakings
★ Indian Private Sector Undertakings
★ Parents/Guardians on behalf of minors
★ Wakf Boards
★ Hindu Undivided Family
★ Sole Proprietorship Firms
★ Partnership Firms
★ Cooperative Societies
★ Charitable or Religious Trusts
3 brown consultancy services

★ Trustee, AMC or Sponsor of their associates

★ Endowment or Registered Societies
★ Army/Air Force/Navy/Para-Military funds and other eligible institutions
★ Scientific and/or industrial research organizations
★ And other associations, institutions, bodies, etc., authorized to invest in mutual
funds
2.3. Why Is Investments In Mutual Fund Better Than Other Investment

Options?
Comparing mutual fund’s equity instruments with share markets.
Understanding and analysing the share market is not a easy task. It needs rigorous
analysis of the market with various techniques for which the AMCs hire experts. Hence
professional management of funds increase the possibility of getting higher returns.
Along with this, one can invest a lump sum amount at a time(which can be as less as Rs
500) or can also invest a small amount of money(which can be as small as Rs. 500)
regularly(monthly of weekly) in mutual fund. Even with such a small investment, one can
take the benefit of diversification(investing with different shares to reduce the risk i.e.
even if price of one of the shares in the portfolio falls, it won’t affect the overall
profitability as the proportion of the investment in the particular stock will be really
small).
Also, mutual funds allows small investments in debt instruments(example Government

bonds, corporate bonds, etc) which small net worth individuals otherwise could not
invest(as small investment directly in debt instruments is not possible) and take the
benefit of the low risk returns.
Comparing mutual fund’s debt instruments with bank FDs.
Investment in FDs locks in the money for certain period of time and the also do not give
as much return as one gets through investments in mutual fund’s similar low risk
products. Certain schemes of mutual funds also provides the benefits of saving taxes.
Comparing mutual fund’s liquid instruments with bank’s savings/current accounts.
Putting in money in savings account gives an interest rate of approximately 4% and there
is no interest paid on C/A account while investing in liquid funds(with a liquidity of T+1
business days) might give a return of approximately 6.5%. Hence investing in liquid
funds for a few weeks might prove to be better than putting in money in savings account.
How is investment in mutual funds better than putting in money in

banks for the overall growth of the economy?
Investing one’s idle money is not only better for one’s personal gains but also good for
the economy as a whole. When the money get invested by the businesses or companies, it
gets multiplied as the business grows. It adds to the GDP of the country while
savings(GDS) is a leakage from the economy. As the GDP grows, the economy becomes
stronger. While, idle money(uninvested money) or those used for buying gold or real
estate or any other valuables, the money does not give any return(or gives much lesser
returns in case of valuables). Even if people simply put their money in banks, their
money is ultimately going to be used by the banks to sanction loans to investors. If they
invest in mutual funds, then not only will the money give higher returns to the unit holder
of mutual fund but also will go to investors and contribute to development of the
economy.
2.4. Mutual Fund Companies.
We saw earlier in the paper, what is mutual funds, certain rules and regulations pertaining
to mutual funds, major types of funds available with mutual funds companies in India and
how mutual funds works in India. Let us now know more about the mutual funds
companies in India. There are 44 mutual fund companies in India. These are:
1. Aditya Birla Sun Life Asset Management Company Ltd

2. Axis Asset Management Company Ltd.
3. Baroda Pioneer Asset Management Company Ltd
4. BNP Paribas Asset Management India Pvt Ltd
5. BOI AXA Investment Managers Pvt Ltd
6. Canara Robeco Asset Management Company Ltd
7. Daiwa Asset Management (India) Pvt Ltd
8. Deutsche Asset Management (India) Pvt. Ltd.
9. DSP BlackRock Investment Managers Pvt. Ltd.
10. Edelweiss Asset Management Ltd
11. Escorts Asset Management Ltd
12. FIL Fund Management Private Ltd
13. Franklin Templeton Asset Management (India) Pvt Ltd.
14. Goldman Sachs Asset Management (India) Pvt Ltd.
15. HDFC Asset Management Company Ltd
16. HSBC Asset Management (India) Pvt. Ltd.
17. ICICI Prudential Asset Management Company Ltd
18. IDBI Asset Management Ltd.
19. IDFC Asset Management Company Ltd
20. India Infoline Asset Management Co. Ltd.
21. Indiabulls Asset Management Company Ltd.
22. ING Investment Management (India) Pvt. Ltd.
23. JM Financial Asset Management Pvt Limited

24. JPMorgan Asset Management India Pvt. Ltd.
25. Kotak Mahindra Asset Management Company Ltd.
26. L&T Investment Management Ltd.
27. LIC NOMURA Mutual Fund Asset Management Company Ltd.
28. Mirae Asset Global Investments (India) Pvt. Ltd.
29. Morgan Stanley Investment Management Pvt.Ltd.
30. Motilal Oswal Asset Management Company Ltd.
31. Peerless Funds Management Co. Ltd.
32. Pine Bridge Investments Asset Management Company (India) Pvt. Ltd.
33. Pramerica Asset Managers Private Ltd
34. Principal PNB Asset Management Co. Pvt. Ltd.
35. Quantum Asset Management Company Private Ltd.
36. Reliance Capital Asset Management Ltd.
37. Religare Asset Management Company Private Ltd.
38. Sahara Asset Management Company Private Ltd
39. SBI Funds Management Private Ltd.
40. Sundaram Asset Management Company Ltd
41. Tata Asset Management Ltd
42. Taurus Asset Management Company Ltd
43. Union KBC Asset Management Company Pvt Ltd
44. UTI Asset Management Company Ltd
These 44 mutual fund companies offer more than 2500 different types of funds. Different
schemes offer different returns with proportionate risk and various other benefits to meet
different needs of each individuals. In the following section we shall educate you in
choosing the best scheme.
2.5. How to choose a suitable scheme?
In order to meet different financial goals in one’s life, one should keep certain points in
their mind to meet the goals. Life cycle stage often determine the financial goal a person
has. For example, when a person is young and has just started his career, his/her near
financial goals might be to buy a car in 3 years, get married in 5 years and buy a house in
10 years; a newly married individual might have a financial goal to buy a house and
finance his children’s education in 5 years; a person whose children have completed
education, their financial goals might be to save money for his retirement in say 5 years
and to invest for giving some financial safety to his children.
Financial goals might be different for different individuals but planning to achieve these
goals have certain similarities.
Wealth planning is done according to the time in which the financial goal will arrive(i.e.
when it is the time to incur the actual expense). The golden rule for making such
investment decision are:
➢ If the financial goal is expected to arrive in a few weeks, it is recommended to

invest in liquid schemes.
➢ If the financial goal is expected to arrive in nearly one year, it is recommended to
invest in short term debt schemes.
➢ If the financial goal is expected to arrive in 2-3 years, it is recommended to invest
in long term debt funds.
➢ If the financial goal is expected to arrive after 3 years, it is recommended to invest
in equity schemes.
➢ If the financial goal is expected to arrive after 3 years and capital preservation is a
priority(low risk appetite), it is recommended to invest in income schemes.
2.6. How do we analyse the performance of different schemes?
With more than 40 mutual fund companies in India offering more than 2500 options of
funds, it becomes important to analyse the performance of each fund before choosing the
scheme in which you invest in.
All mutual fund companies publish monthly factsheets which give the performance of all
of their funds. It is required to understand how to read the factsheet. Following are a few
important terms mentioned on the factsheet.
AUM:
It refers to the recent/ updated cumulative market value of investments managed by a
mutual fund or any investment firm.
NAV:
It is the total asset value per unit of the mutual fund after deducting all related and
permissible expenses. The NAV is calculated at the end of every business day. It is the
value at which the investor enters or exits the mutual fund.
Fund Manager:
An employee of the AMC who manages the investments of the scheme. Their name
along with the time since when they are managing the fund and their experience in the
field are given.
Benchmark:
A group of securities, usually a market index, whose performance is used as a standard or
benchmark to measure investment performance of mutual funds, among other similar
investments. Some of the typical benchmarks are Nifty, Sensex, BSE200, BSE500, 10-
year Gsec, etc. If the return of the fund is better than its set benchmark, the fund is said to
be performing well and vise versa if it does not outperform the benchmark.
Type of Scheme:
We have already discussed the types of schemes. The factsheet specifies the type of
scheme the fund is.
Nature of Scheme:
The investment objective and underlying investments determine the nature of the mutual
fund scheme. For instance, a mutual fund that aims at generating capital appreciation by
investing in stock markets is an equity fund or growth fund. Likewise a mutual fund that
aims at capital preservation by investing in debt market is a debt fund or income fund.
Each of these categories may have sub-categories.
Application Amount for Fresh Subscription:

This is the minimum investment amount for a new investor in mutual fund schemes.
Minimum Additional Amount:

This is the minimum investment amount for an existing investor in a mutual fund
scheme.
Minimum Monthly SIP Amount:

This is the minimum SIP amount for any fund.
Entry Load:
A mutual fund may have a sales charge or load at the time of entry and/or exit to
compensate the distributor/agent. Entry load is charged at the time an investor purchases
the unit of the mutual fund. The entry load is added to the prevailing NAV at the time of
the investment. For instance, id the NAV is ₹100 and the entry load is 1%, then the
investor will enter the fund at ₹101.
Exit Load:
The exit load is charged at the time an investor redeems the units of the mutual fund. The
exit load is deducted from the prevailing NAV at the time of redemption. For instance, if
the NAV is ₹100, and the exit load is 1%, the redemption price would be ₹99 per unit.
Yield to Maturity:
The yield to maturity or the YTM is the rate of return anticipated on a bond if held until
maturity. YTM is expressed as an annual rate. The YTM factors in the bond’s current
market price, par value, coupon interest rate and time to maturity.
Modified Duration:
It is the price sensitivity and the percentage change in price for a unit change in yield.
Standard Deviation:
It is a statistical measure of the range of an investment’s performance. When a mutual
fund has a high standard deviation, it means its range of performance is wide, implying
greater volatility.
Beta:
It is a measure of an investment’s volatility vis-a`-vis the market. It is the measure of
systematic risk. Ideal beta is equal to 1. Beta of less than 1 means that the security will be
less volatile than the market. A beta of greater than 1 implies that the security’s price will
be more volatile than the market. Negative beta implies a negative relation with the
market i.e. if market goes up, the stock/fund will go down and vise versa.
Holdings:
The holdings or the portfolio is a mutual fund’s latest or updated reported statement of
investments/securities. These are usually displayed in terms of percentage to net assets or
rupee value or both. The objective is to give investors an idea of where their money is
being invested by the fund manager.
Rating profile of portfolio:

Mutual funds invests in securities after evaluating their creditworthiness as disclosed by
the rating agencies. It tells the ratings of the various bonds that the portfolio contains.
Industry Allocation:
It specifies the various industries that the fund manager has invested in.
Investment Performance:
It tells the actual performance of the fund for a particular period of time and also
compares the growth rate with that of its benchmarks.
SIP Performance:
It tells the actual performance of SIPs for a particular period of time.
You can refer to the following link of the factsheet of Aditya Birla Sun Life Mutual Fund
to get a clear picture of how a factsheet looks like.
https://mf.adityabirlacapital.com/MFUSFactsheetsAddendums/Empower-March-
2018.pdf
Now we will understand how to further analyse the funds.
An important point to be noted is that the key index of evaluation is the return on the
portfolio relative to the risk taken by the fund.
Some other tools for analysing the funds are:4
Negative returns:
Indicates how the fund has performed at bad times. For example, if the market has fallen
by 10% but the fund has fallen by 8% then the fund is said to outperform.
R- Squared:
R – Squared shows the percentage of fund returns that can be explained by the
benchmark returns. Its value lies between 0 and 100.
4
economic times
Sharpe Ratio:
It is a measure of risk-adjusted returns. It is calculated using standard deviation and
excess return to determine reward per unit of risk.
Treynor Ratio:
Treynor ratio is a measure of the risk adjusted performance of a fund. It is measured by
the formula
(Average Fund return – Risk free rate)/ Beta of the fund
Risk adjusted rate of return:

It is treynor ratio plus risk free rate of return.
Jensen’s Alpha:
It is the difference between fund’s actual return and the return that could have been made
on a benchmark portfolio with same beta. Jensen’s alpha is used to determine if the
portfolio is earning proper return for the level of risk taken. A positive value of jensen’s
alpha means that the fund manager has outperformed the market. Short term alphas don’t
determine much. It is suggested to take a time frame of at least one or three years.
Information Ratio:
Information ratio measures the fund manager’s ability to generate risk adjusted excess
returns relative to the benchmark. It is measured by the formula
(Rp – RB)/Tracking error
Where, Rp: Portfolio return

RB: Benchmark return
Tracking error: Standard deviation of the difference between portfolio returns and
benchmark returns
Sortino ratio:
Sortino ratio is a measure of the risk adjusted performance of a fund. It is measured by
the formula
Rp-Rf/Downside deviation
Where, Rp = Fund return

Rf = Risk free rate
Downside deviation: Standard deviation of negative asset returns
Along with analysing the funds overall performance, analysts also try to analyse which
decision resulted in superior or inferior performance of the fund. Performance
attribution or analysis is an attempt to decompose overall portfolio performance into

discrete components that can be identified. For example,
3. Research Methodology and Design
3.1. Research Objectives

India is a saving intensive country. Approximately 25% of the GDP is gross domestic
savings(GDS) in India. This money remains idle and uninvested hence has an opportunity
cost attached. Also around 1650 lakh crore INR goes into buying of valuables which if
invested in financial assets will not only give higher returns but also will help the
economy grow faster as the money will come in circulation and will become productive.
Despite being available in the market less than 10% of Indian households have invested
in mutual funds.
In a study conducted earlier, the primary reason for not investing appears to be correlated
with city size. Among respondents with a high savings rate, close to 40% of those who
live in metros and Tier I cities considered such investments to be very risky, whereas
33% of those in Tier II cities said they did not know how or where to invest in such
assets.
So it is need of the hour to make people aware of the needs and benefits of investment.
But before that we have to understand how aware the potential investors are, or if they
simply do not make investments, why do they not.
With this research paper, we can identify the following:
1. How does different age group, gender and income class vary in their awareness of
investment?
2. Are people aware of importance of investment?
3. Are investors investing with certain financial objective(if they have a financial
plan)?
4. Are people investing in mutual funds?
5. Are people aware of benefits of mutual funds?
6. What is people’s perception about Aditya Birla Sun Life Mutual Fund?*
*This is not the main objective of the research paper but we are taking an account of the same.
3.2. Hypothesis
Our research concentrates on identifying how aware the people are about importance of
investing their savings in financial instruments and benefits of investment in mutual
funds. And also, how wisely are people making their financial plan.
Null Hypothesis:
H0(1): The awareness of investment is low among the people.

H0(2): People do not understand how much risk they should take considering their age.
H0(3): People are happy with their financial instruments.
H0(4): People are happy with their selected mutual fund scheme.
Alternate Hypothesis:
Ha(1): The awareness of investment is high among the people.
Ha(2): People do understand how much risk they should take considering their age.
Ha(3): People are not happy with their financial instruments.
Ha(4): People are not happy with their selected mutual fund scheme.
3.3. Research Design

For this study, a combination of descriptive research design, literature review and cross
sectional design has been used. Descriptive study, through the use of questionnaires and
surveys, helped this research to gain a comprehensive and detailed database. Due to its
structured and formal nature, direct answers were provided.
Literature review helped in studying the already existing information available for the
research problem, and acted as a catalyst for the base formation of a descriptive approach.
Cross sectional design was used to study the population at a single point in time. It was
used to gather data from a representative subset.
3.4. Sample Selection
We have collected data through a questionnaire. The population we are considering are
Indians of different age groups and income levels. To analyse the population, we
followed cluster sampling where, we selected a sample of 100 people from different age
groups, different genders and people with different ideals towards investments, hence
having access to a more diverse and spread out sample.
Though there might be certain errors in sample because of convenience and reach, hence
the research data and conclusion might be skewed. Though we have tried our best to
collect the data from all types of population.
3.5. Data Collection

We have collected data for our research through survey method where we distributed
questionnaire online and physical copies at certain places. We collected data from people
from different age groups and income groups.
Questions like “Which of the following were you aware of?” whose answers consider
how aware are customers of the importance of investment.
For the people who respond affirmatively to “Do you invest in any financial
instruments?” will have to respond to the following questions:
“Which of the following financial instruments do you invest in?” tell us if people have
high awareness about the different options available for investments based on different
risk appetite and if they are diversifying their investments or not.
“Rate the following factors for the financial instruments you invest in.-
-Returns
-Reliability
-Reach
-Liquidity”
and
“Rate the following factors for the Mutual fund you invest in.-
-Returns
-Reliability
-Reach
-Liquidity”
These questions help us understand their perceptions towards the same.
Questions like “Do you invest in Mutual funds?”, “What percentage of your total
investment are in mutual funds?”, “Which mutual fund instruments do you invest in?”,
help us understand how much are people investing towards mutual funds in particular.
“Why do you invest in mutual fund?” help us understand if their investment objective is
correct and clear or not.
“Do you invest in Aditya Birla Sun Life Mutual Fund?” and “Which of the following
features you knew about Aditya Birla Mutual Fund?” tell us how aware are the
respondents aware of Aditya Birla Sun Life Mutual Fund. It helps spread awareness
about the company among the respondents in an indirect way.
People who negated to “Do you invest in any financial instruments?” responds to the
following question:
“Why do you don't invest in financial instruments?”. This tells us the reason why are
people not investing or are not willing to invest. Some of these reasons are unalterable
while some of the reasons can be eliminated by spreading awareness and hence convert
the non investor into an investor.
4.Data Analysis
Data analysis is the process of evaluating data with the help of systematic and/or logical
techniques and uses these in order to best describe the given data. It is the subject of this
report to best analyse the data captured and evaluate and describe it using different data
evaluating techniques.
This involves collecting Primary data- where in I designed and sent a questionnaire to the
public. This involved sharing the questionnaire through online social media and also
collecting this information first hand by physically approaching the public.
This was done in order to get a diversified collection of information and raw data, at the
same time not compromising on the amount of data collected.
4.1 Primary data analysis

Primary data is that data which is collected by the researcher himself. It requires the
researcher to physically collect the information first hand and then use data analysing
techniques to evaluate it.
This is done in order to:
● have greater accuracy with the information collected ;
● ensure the quality of the data;
The data collected through the forms was converted to a spreadsheet. For our own
convenience, the responses were coded using certain codes for each question and its
response. However for your convenience, the summary of the data collected are as
follows:
Distribution frequency for each question in Survey
Your Age
In the sample, there were 34 people in the age group of 18 to 30 years of age, 29 people
in the age group of 30 to 50 years of age, and 11 people in the age group of more than 50
years of age.
Your Gender
The sample consisted of 58 males and 16 females.
Your Income
The sample consisted of 28 people earning less than 5 lakh in a year, 30 people earning 5
to 10 lakh in a year, and 16 people earning more than 10 lakh in a year
Do you invest in any financial instruments?

In the sample of respondents, 48 respondents do invest in some financial instruments

while 26 respondents do not.
Which financial instruments do you invest in?
In the sample, 30 people invest in Savings account, 15 people invest in FDs/RDs, 10

people invest in Post Office, 40 people invest in Mutual funds, 16 people invest in share
market, 9 people invest in ULIP, 15 people invest in PPF and 3 people invest in some
other instrument.
Which of the following things were you aware of?
The following is the data of how many people knew about the given facts
● For people who do invest.
● For people who do not invest.
In the sample, out of 48 people who do invest in some of the financial instruments, 8
people were aware of 1 of the facts, 4 people were aware of 2 of the facts, 10 people were
aware of 3 of the facts, 11 people were aware of 4 of the facts, 5 people were aware of 5
of the facts, and 10 people were aware of all of the facts.
Out of 26 people who do not invest, 2 people were aware of none of the facts, 6 people
were aware of 1 of the facts, 11 people were aware of 2 of the facts, 2 people were aware
of 3 of the facts, 3 people were aware of 4 of the facts, and 2 people were aware of all of
the facts.
Rate the following for your financial institution.
Return:
17 people said they were very happy, 28 people said they were happy, and 3 people said
they were unhappy.
Reliability:
they were unhappy.
Reach of financial institutions in your area:

they were unhappy.
Liquidity:
they were unhappy.
Do you invest in mutual funds?
Out of 48 investors, 43 people invest in mutual fund while 5 people do not.
What percentage of your total investments go in mutual funds?

10 people park less than 10% of their investments in mutual funds, 18 people park 10 to
25% of their investments in mutual funds, 4 people park 25 to 50% of their investments
in mutual funds, and 12 people park more than 50% of their investments in mutual funds.
Which mutual fund instruments do you invest in?
39 people invest in equity, 11 people invest in debt, and 25 people invest in ELSS.
Rate the following factors for the mutual fund you invest in.
Return:
18 people said they were very happy, and 25 people said they were happy
Reliability:
13 people said they were very happy, and 30 people said they were happy.
Reach of AMCs/Distributors in your area:

they were unhappy.
Liquidity:
they were unhappy.
Why do you invest in mutual fund?

Do you invest in Aditya Birla Sun Life Mutual Fund?
27 people invest in ABSL mutual funds while 16 people do not.
> Since about 60% of the mutual fund investors invest in ABSL mutual
funds, we also come to know the popularity of the same.
Which of the following features you knew about Aditya Birla Mutual Fund?
24 people knew that Aditya Birla Mutual Fund is currently 3rd largest AMC, 17 people
knew that Aditya Birla Mutual Fund has a unique free insurance policy for all its SIP
investors called CSIP, and 13 people knew that Aditya Birla Sun Life Mutual Fund has
more than 30 schemes with different investment objectives carrying different risk
appetite.
Why don't you invest in financial instruments?
In the sample, 11 people do not invest because they prefer investing in physical
assets(like gold, land etc), 6 people do not invest because they don't have enough
knowledge of any financial instruments, 11 people do not invest because they don't trust
anyone with their money, 2 people do not invest because there is Lack of reach of
financial instruments in their area, 10 people do not invest because they do not have
enough savings for investments, 1 people do not invest because their culture do not allow
them to earn anything without hard work, and 1 people do not invest because they think
they can earn better by investing in their own business.
4.2 Advanced data analysis
Awareness of benefits of investment among public
The basic agenda of this research is to understand if people are investing their money in
any financial instruments or not and how aware are people about benefits of the same.
In order to analyse the same, we performed chi square analysis.

For that we observed how many people invest or do not and how many of the mentioned
benefits of investments were people aware of.
For the same, following was observed.
Observed frequency
No of facts
known> 0 1 2 3 4 5 6
do not invest 2 6 11 2 3 0 2
do invest 0 8 4 10 11 5 10
Expected frequency
No of facts
known> 0 1 2 3 4 5 6
do not invest 0.7027 4.9189 5.2702 4.2162 4.9189 1.7567 4.2162
do invest 1.2972 9.0810 9.729 7.78378 9.0810 3.2432 7.7837
Excel formula used for chi square analysis: =chitest(<observed values>,<expected

values>)
Chi Square result: 0.001748382236
Since the value of chi square is less than 0.05(viz the value required for the result to be
true with 95% confidence) so, we fail to accept the null hypothesis.
Hence, we reject the null hypothesis.
i.e. there is high awareness about benefits of investment among public
Comparison of age with risk taken
Financial advisors say that the your age must determine the level of risk you take with
your investments i.e. the younger you are the higher must be your risk appetite. Now with
the data we collected, where we asked the investors in which financial instruments do
you invest in. We know that investing in share market, ULIP and equity schemes in
mutual funds carry higher risk while most of the other instruments carry lower risk.
To analyse the risk appetite of various investors of different age group, chi square test
was performed.
For performing the analysis, it was observed how many investors do or do not invest in
risky instruments.
For the same following was observed:

Observed frequency
yes no
less than 18
years 0 0
18 - 30 years 15 19
30 - 50 years 19 10
more than 50 7 4
years
Expected frequency
yes no
less than 18 years 0 0
18 - 30 years 18.837 15.1621
30 - 50 years 16.067 12.9324
more than 50 years

6.09459 4.90540
Excel formula used for chi square analysis: =chitest(<observed values>,<expected

values>)
Chi Square result: 0.196414
Since the value of chi square is more than 0.05(viz the value required for the result to be
true with 95% confidence) so, we fail to reject the null hypothesis.
Hence, we accept the null hypothesis.
i.e. People do not understand how much risk they should take considering their age.
Satisfaction of investors investing with various financial instruments
The investors were asked to rate their investment institutes on the basis of returns they
give, reliability, reach of financial instruments in their locality, and liquidity. We shall
see how happy/unhappy are investors with their various investment option.
The respondents were told to mark if they are very happy, happy or unhappy with their
investment institutes based on various factors. For analysis purpose, we take very happy
as 3 points, happy as 2 points, and happy as 1 point. By reckoning the data, we arrived at
the following conclusion.
Return Reliability Reach Liquidity Average
Saving account 2.333333333 2.2 2.133333333 2.4 2.266666667
FDs/RDs 2.066666667 2.4 2.4 2.4 2.316666667
Post Office 2.3 2.1 2 2.4 2.2
Mutual Funds 2.291666667 2.1875 2.125 2.3125 2.229166667
Share Market 2.125 2 2.1875 2.375 2.171875

ULIP 2.222222222 2.333333333 2.444444444 2.777777778 2.444444444
PPF 2.266666667 2.333333333 2.266666667 2.4 2.316666667
Others 2.666666667 2 1.333333333 2.333333333 2.083333333
Since aggregate of the ratings given by the investors is more than 1.5 for all the
investment types, hence people are happy with their investment institutions.
Satisfaction of mutual fund investors with various mutual fund instruments
The investors were asked to rate their mutual fund scheme on the basis of returns they
give, reliability, and liquidity. We shall see how happy/unhappy are investors with their
various mutual fund scheme.
The respondents were told to mark if they are very happy, happy or unhappy with their
mutual fund scheme based on various factors. For analysis purpose, we take very happy
as 3 points, happy as 2 points, and happy as 1 point. By reckoning the data, we arrived at
the following conclusion
Return Reliability Reach Liquidity Average
Equity 2.435897436 2.307692308 2.102564103 2.333333333 2.294871795
Debt 2.727272727 2.727272727 2.272727273 2.636363636 2.590909091
ELSS 2.416666667 2.375 2.333333333 2.375 2.375
Since aggregate of the ratings given by the investors is more than 1.5 for all the investment
types, hence people are happy with their mutual fund institute.
5. Limitation
1. Though this paper helps the investors to make intelligent decision in choosing the
appropriate scheme but still the investors must discuss with a financial advisor to choose
the schemes according to their financial goal..
2. Our sample for analysing the behaviour of people towards investments does not consist
of even distribution of different types of people. Hence the result might have got skewed.
3. The information provided in the paper is confined to my own knowledge.
4. Respondents might have given incorrect data in the questionnaire because of many
extraneous factors. Though best attempt was taken to avoid such inconsistent data inputs.
6. Scope
In this paper we have discussed benefits of mutual funds and what factors investors
should take into consideration while making investment decisions. This paper can be
used by new as well as existing investors to make wise investment decisions.
This can also be to understand how to analyse a funds performance to choose the best
performing fund.
The paper also discusses the general behaviour of investors which can be used for
planning out on capturing new clients for various investments by spreading awareness of
the factors(leading people to not invest) that the people are unaware or conservative of.
7. Conclusion
Concreate conclusions
1.Awareness is high among the public.

2.People do not understand how much risk they should take considering their age.
3.People are happy with their investment institute.
4.People are happy with their mutual fund institute.
It was observed that though maximum people do invest and are very aware of the various benefits
of investment. But almost 36% of the people do not invest in any financial instruments. The
reasons for not investing are various. Many of the non investors do not invest because they do not
have enough savings. This factor can not be easily eliminated. But the other factors which
basically revolves around lack of awareness can be eliminated by appropriate measures. Among
the investors, we observe high level of awareness. Also we observe diversification of investments
and fairly high risk appetite of the investors. Though, the risk taken by the younger generation
should have been high while that among the older people must be less. But the same is not
observed to be be prevalent.
Also, most of the people are very happy with their financial institutes and AMCs for their reach,
return, reliability and liquidity.
8. References
PERFORMANCE EVALUATION OF MUTUAL FUNDS: AN

ANALYSIS OF RISK & RETURN
http://shodhganga.inflibnet.ac.in/bitstream/10603/36578/3/03_abstract.pdf
Dr. Ravi Vyas, MUTUAL FUND INVESTOR’S BEHAVIOUR

AND PERCEPTION IN INDORE CITY
http://www.researchersworld.com/vol3/issue3/vol3_issue3_1/Paper_09.pdf
Prof Gauri Prabhu, Dr N.M. Vechalekar, PERCEPTION OF INDIAN INVESTOR

TOWARDS INVESTMENT IN MUTUAL FUND WITH SPECIAL REFERENCE TO
MIP FUNDS
http://www.iosrjournals.org/iosr-jef/papers/icsc/volume-1/8.pdf
Vinita Bharat Manek, MUTUAL FUND PERFORMANCE: A STUDY ON THE

EFFECT OF PORTFOLIO TURNOVER ON MUTUAL FUND PERFORMANCE IN
THE INDIAN FINANCIAL MARKET.
http://www.srjis.com/pages/pdfFiles/146298555236.%20vinita%20manek.pdf
A COMPARATIVE STUDY OF PERFORMANCE OF TOP 5 MUTUAL FUNDS IN

INDIA
https://www.sibm.edu/assets/pdf/samvad8/mutualfunds.pdf
CHAPTER VII
CONCLUSIONS, SUGGESTIONS, LIMITATIONS & SCOPE FOR FUTURE STUDY
http://shodhganga.inflibnet.ac.in/bitstream/10603/107641/13/12_chapter7_conclusio
n.pdf
Annexure
A1. Glossary
1. Trust: The mutual fund is constituted as a trust in accordance with the provision of the
Indian Trust Act, 1882 by the sponsor. The trust deed is registered under the Indian
Registration Act,1908.
2. Asset Management Company: An asset management company (AMC) is a company
that invests its clients' pooled funds into securities that match declared financial
objectives. Asset management companies provide investors with more diversification and
investing options than they would have by themselves. AMCs manage mutual funds,
hedge funds and pension plans, and these companies earn income by charging service
fees or commissions to their clients.
3. Financial Planning: Financial planning is an ongoing process to help you make sensible
decisions about money that can help you achieve your goals in life.
4. Wealth planning: Wealth planning is the art of structuring your wealth while building it,
preserving it, and in order to transfer it to the next generation tax-optimised. Wealth
planning is a mix of tax planning, wealth protection, estate planning and business
succession planning.
5. Factsheet: A magazine giving useful information about the performance of the funds of
the mutual funds of the company publishing it. It mostly comes in a monthly edition
giving the latest data about the fund.
6. GDP: Gross domestic product (GDP) is a monetary measure of the market value of all
final goods and services produced in a period (quarterly or yearly) of time.
7. GDS: Gross Domestic Saving is GDP minus final consumption expenditure. It is
expressed as a percentage of GDP. Gross Domestic Saving consists of savings of
household sector, private corporate sector and public sector.
Annexure
A2. Abbreviations used.

1. ABSL- Aditya Birla Sun Life
2. AMC- Asset Management Company
3. AMFI- Association of Mutual Funds of India
4. ARN- AMFI Registration Number
5. AUM- Asset Under Management
6. C/A- Current Account
7. ELSS- Equity Linked Saving Scheme
8. ELSS- Equity Linked Savings Schemes
9. EUIN- Employer Unique Identification Number
10. FD- Fixed Deposit
11. GDP- Gross Domestic Product
12. GDS- Gross Domestic Savings
13. IFA- Individual Financial Advisor
14. NAV- Net Asset Value
15. ND- National Distributor
16. NSE- National Stock Exchange
17. PPF- Public Provident Fund
18. RBI- Reserve Bank of India
19. RTA- Registrar and Transfer Agent
20. SB- Savings Account
21. SEBI- Security and Exchange Board of India
22. SIP- Systematic Investment Plan
23. STP- Systematic Transfer Plan
24. SWP- Systematic Withdrawal Plan
25. ULIP- Unit Linked Insurance Plan
26. YTM- Yield To Maturity
Annexure
A3. Questionnaire
Link of the Questionnaire

https://docs.google.com/forms/d/e/1FAIpQLSe1yVS8LST6KzErfpnZbQxVN_Qn1DNR
LN3ML_mVsOQ8xKsB6Q/viewform?usp=sf_link
***The Questionnaire***
Behaviour of Investors.
Dear sir/ma'am,
I am doing a research where I am trying to understand the general behaviour of investors. Your few
minutes will be very valuable for the success of my research. Kindly help me by filling the form.
Regards.
1. Your Age
Mark only one oval.
○ less than 18 years
○ 18 - 30 years
○ 30 - 50 years
○ more than 50 years
This is a required question
2. Your Gender
Mark only one oval.
○ Male
○ Female
3. Your Income
Mark only one oval.
○ less than 5 lakh
○ 5 - 10 lakh
○ more than 10 lakh
4. Do you invest in any financial instruments?

Mark only one oval.
○ Yes >Skip to question 5.
○ No >Skip to question 15.
***Do Invest.
(Since you invest in certain financial instruments.)
5. Which of the following financial instruments do you invest in?

Check all that apply.
❏ Saving account
❏ FDs/RDs
❏ Post Office
❏ Mutual Funds
❏ Share Market
❏ ULIP
❏ PPF
❏ Other:_____________________
6. Which of the following were you aware of?

❏ It is important to invest as value of money depreciates over time if kept idle
because of inflation.
❏ Investment in physical assets give lesser return in the long run than that of sensex
❏ Mutual funds provide a facility to invest a fixed amount of money at regular
intervals.
❏ Your life stage must decide your financial plan(where you invest based on risk
appetite)
❏ If you invest in share market or equity through mutual funds, you get a part of
ownership of the company in proportion of the capital you have invested
❏ You can invest a small amount(as small as Rs.500) in mutual funds. You can also
invest monthly if you do not have money accumulated at a time.
7. Rate the following factors for the financial instruments you invest in.
Tick only one per row.
Very Happy Happy Unhappy
Returns
Reliability
Reach of financial
institutions in your
area.
Liquidity
8. Do you invest in Mutual funds?

Mark only one oval.
○ Yes
○ No
9. What percentage of your total investment are in mutual funds?

Mark only one oval.
○ Less that 10%
○ 10 – 25%
○ 25 – 50%
○ More than 50%
10. Which mutual fund instruments do you invest in?

Check all that applies.
❏ Equity funds
❏ Debt funds
❏ Tax benefit instruments(ELSS)
11. Rate the following factors for the mutual fund you invest in.
Tick only one per row.
Very Happy Happy Unhappy
Returns
Reliability
Reach of financial
institutions in your
area.
Liquidity
12. Why do you invest in mutual fund?

❏ In lure of high returns.
❏ Security of money (least chance of the mutual fund company to default)
❏ High liquidity (can withdraw money as and when required with no or least
penalty)
❏ Professional management of money
❏ Tax benefits
❏ Helps in regular saving
❏ Other:_______________
13. Do you invest in Aditya Birla Sun Life Mutual Fund?

Mark only one oval.
○ Yes
○ No
14. Which of the following features you knew about Aditya Birla Mutual Fund?
❏ Aditya Birla Mutual Fund is currently 3rd largest AMC.
❏ Aditya Birla Mutual Fund has a unique free insurance policy for all its SIP
investors
❏ Aditya Birla Sun Life Mutual Fund has more than 30 schemes with different
investment objectives carrying different risk appetite.
***Do not invest.

Since you do not invest in any financial instrument.
15. Why do you don't invest in financial instruments?

❏ I prefer investing in physical assets(like gold, land etc)
❏ I don’t have enough knowledge of any financial instruments.
❏ I don't trust anyone with my money.
❏ Lack of reach of financial instruments in my area.
❏ Do not have enough savings for investments.
❏ I can earn better by investing in my own business.
16. Which of the following were you aware of?

❏ It is important to invest as value of money depreciates over time if kept idle
because of inflation.
❏ Investment in physical assets give lesser return in the long run than that of sensex
❏ Mutual funds provide a facility to invest a fixed amount of money at regular
intervals.
❏ Your life stage must decide your financial plan(where you invest based on risk
appetite)
❏ If you invest in share market or equity through mutual funds, you get a part of
ownership of the company in proportion of the capital you have invested
❏ You can invest a small amount(as small as Rs.500) in mutual funds. You can also
invest monthly if you do not have money accumulated at a time.

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Research Report

Research topic- General behaviour of investors (in cities).

2.2. More About Mutual Funds.

2.2.1 Organisation Of Mutual Funds

The following is the structure of a mutual fund

-Trustee: A trustee is usually a company or a board of trustees(body of individuals), the

Following is the pictorial representation of a mutual fund in India:

REGISTRAR CUSTODIANS BANKERS

2.2.2 Regulatory Authority

★ Indian Trust Act,1882 since mutual funds acts as a trust.

★ Companies Act, 1956 since the mutual fund forms an AMC.

2.2.3 Types of Mutual Funds2

● Based on Investment objective:

Balanced schemes: Such schemes make investments in a combination of equity

2.2.4 Advantages And Disadvantages Of Mutual Funds

Professional management: Mutual funds hire professionals to manage funds who

Diversification: Asset diversification helps in managing risk. With mutual funds,

Regulations: A mutual fund company is monitored by many authorities as

Dilution: Although diversification helps reduce risk, but it is also

2.2.5. How Mutual Funds Work?

The flowchart below briefly describes the working of mutual funds.

2.2.6. Who Invests In A Mutual Fund?3

Following is the list of eligible investors in a mutual fund.

3 brown consultancy services

★ Trustee, AMC or Sponsor of their associates

2.3. Why Is Investments In Mutual Fund Better Than Other Investment

Also, mutual funds allows small investments in debt instruments(example Government

Comparing mutual fund’s debt instruments with bank FDs.

Comparing mutual fund’s liquid instruments with bank’s savings/current accounts.

How is investment in mutual funds better than putting in money in

2.4. Mutual Fund Companies.

1. Aditya Birla Sun Life Asset Management Company Ltd

23. JM Financial Asset Management Pvt Limited

2.5. How to choose a suitable scheme?

➢ If the financial goal is expected to arrive in a few weeks, it is recommended to

2.6. How do we analyse the performance of different schemes?

Application Amount for Fresh Subscription:

Minimum Additional Amount:

Minimum Monthly SIP Amount:

Rating profile of portfolio:

Now we will understand how to further analyse the funds.

Some other tools for analysing the funds are:4

(Average Fund return – Risk free rate)/ Beta of the fund

Risk adjusted rate of return:

(Rp – RB)/Tracking error

Where, Rp: Portfolio return

Where, Rp = Fund return

attribution or analysis is an attempt to decompose overall portfolio performance into

3. Research Methodology and Design

3.1. Research Objectives

With this research paper, we can identify the following:

H0(1): The awareness of investment is low among the people.

3.3. Research Design

3.4. Sample Selection

3.5. Data Collection

These questions help us understand their perceptions towards the same.

4.1 Primary data analysis

Distribution frequency for each question in Survey

The sample consisted of 58 males and 16 females.

Do you invest in any financial instruments?

In the sample of respondents, 48 respondents do invest in some financial instruments

Which financial instruments do you invest in?

In the sample, 30 people invest in Savings account, 15 people invest in FDs/RDs, 10