Analyzing the Investment Behavior of Mutual Funds

Investors: A Factor Analysis Approach on Mutual Fund

Investment in Bangladesh

Prepared for:

Institute of Business Administration

Jahangirnagar University

Prepared by:

Exam ID: 160131

Area of concentration: Finance

Academic session: 2015-2016

MBA Program

Date of submission: 27-12-2017

 Letter of Transmittal

27th December, 2017

The Chairman
Exam Committee
MBA Program
Institute of Business Administration
Jahangirnagar University
Savar, Dhaka-1342.

Subject: Submission of my thesis paper on “Analyzing the Investment Behavior of Mutual

Funds Investors: A Factor Analysis Approach on Mutual Fund Investment in
Bangladesh”.

Dear Sir/Madam:

It is my immense pleasure to submit the report on “Analyzing the Investment Behavior

of Mutual Funds Investors: A Factor Analysis Approach on Mutual Fund Investment in
Bangladesh”. This thesis has been prepared for the partial fulfillment of my MBA program.
All the tasks regarding preparing this report have been completed. I believe that this thesis
paper will help readers understand, analyze and evaluate Mutual Fund Investment in
Bangladesh.

Thank you for giving me the opportunity to prepare this report. It was really a
wonderful experience. I hope you will find this thesis paper satisfactory.

Sincerely,
Exam roll number: 160131
3rd semester
21st batch, MBA program
Academic session: 2015-16
Institute of Business Administration
Jahangirnagar University, Savar, Dhaka-1342

ii
 Acknowledgement

At first, I show my gratitude to almighty Allah for giving me energy, strength and capabilities
to complete my thesis paper.

It is my pleasure to thank those people who made this report possible. My utmost gratitude
goes to my honorable supervisor, Saptarshi Dhar, Lecturer, Institute of Business
Administration, Jahangirnagar University, for allowing me to do this task, for his
kindness and most of all, for his guidance.

I would also like to acknowledge my appreciation to my senior brothers and sisters who
helped me a lot throughout this work. I am also indebted to all of my classmates for their
encouragement, love and relentless support throughout this work.

Finally, I would like to thank my parents and all of my well-wishers whose blessings are
boundless and guidance is always with me.

iii
Abstract: This study aims to analyzing the investment behavior of mutual funds investors in
Bangladesh. Both primary and secondary data have been used in the study. Data for the study
were collected form 103 sample respondents residing in Bangladesh using a structured
questionnaire and analyzed by factor analysis. Results show that market and income are the
factors are the ones that determine investment in mutual funds. Thus mutual funds should give
due importance to these dimensions for their survival and growth in Bangladeshi context.

1.0 Introduction:
The economy of Bangladesh has opened up doors of investment through many development
programs (Strengthen market regulation and supervision, Develop capital market
infrastructure, Modernize capital market support facilities, Increase limited supply of
securities in the capital market etc.) in the capital market. Investment opportunity is facilitated
by the help of financial system and financial institutions or intermediaries. Specifically, stock
market plays here a vital role.

Mutual fund is one of the ways of investing in stock market. Mutual fund is an investment
avenue which is made up of a pool of funds collected from investors for the purpose of
investing in securities such as stocks, bonds, money market instruments and other assets. A
mutual fund is the most suitable investment from the common man as it offers the opportunity
to invest in a diversified, professionally managed basket of securities at a relatively less cost
and mutual funds make savings and investing simple, accessible, and affordable (Garg &
Singal, 2016).The primary objective of mutual fund is to provide better returns to the investor
by minimizing the risk associated with capital markets. The most common features of mutual
fund units are low unit cost,(Chawla, 2014).Different avenues and alternatives of investment
include share market, debentures or bonds, money market instruments, mutual funds, life
insurance, real estate, precious objects, derivatives, non-marketable securities. All are
differentiated based on their different features in terms of risk, return, term etc. Mutual fund is
acting as an important investment alternative for general investors (Begum and Rahman,
2016).

In Bangladesh, mutual funds were first introduced by the state-owned investment agency
Investment Corporation of Bangladesh (ICB) in 1980 (ICB website, 2004). It launched 8
close-end and one unit fund till 2002, when it had to create 3 subsidiaries under an Asian
Development Bank prescription, including the asset management company, which was
entrusted with the responsibility to launch mutual funds under the Securities and Exchange
Commission (SEC) rules. This company has launched 3 close-end and 2 open-end mutual
funds since 2003(ICB website, 2004). Meanwhile, another state-owned lending agency,

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Bangladesh Shilpa Rin Sangstha (BSRS) launched its solitary mutual fund in 1997, which is
run under its own statute. In Bangladesh, the numbers of mutual fund are small having low
issued capital. According to Dhaka Stock Exchange (DSE, 2011), at present, there are 36
mutual funds available in our country

2.0 Literature Review:

Many researchers of the different parts of the world conducted study on investor’s perception
towards mutual fund. In a study Chawla (2014) identifiedthat two factors are considered
important by investors while investing in mutual funds in India.The study is based on a
sample of 431 respondents chosen using convenience sampling to understand the mutual fund
buying behaviour of the individual investors. The article identifies the various attributes that
investors consider important while investing in mutual fund. These, in order of importance,
are credibility of fund and miscellaneous features of fund. Since the results have indicated
that the general public, business people and employees of public sector and government
attach a lot of importance to the credibility of the fund, the credibility factor should be
emphasized at the time of issuing mutual funds.The second factor, namely, the miscellaneous
features of the fund, is considered important by younger, unmarried people. This factor
comprises of variables like entry and exit load, add-ons provided by the funds, lock-in period
of the closed-ended funds and tax benefits available on mutual funds. He suggested that the
study may be replicated with the majority of respondents from middle income and lower
category belonging to different cities of India.Further, a considerable proportion of
respondents should be from 50-plus age group, as mutual funds are perceived to be less risky,
and older people tend to be risk averse. Further, the selection of respondents from various
professions should be uniform. In another research, Gupta and Chander (2012) have found
and present a comparative analysis of retail and non-retail mutual fund investors with respect
to attributes related to mutual fund schemes, in the context of their selection of various mutual
funds. Retail mutual fund investor for the purpose of that study is that ‘any investor who has
invested in any of the mutual fund schemes and whose individual investment in mutual
fund portfolio at the time of study is less than Rs 600 thousand’.Further non-retail investors,
in addition to high net worth individuals, include firms or companies, with the only
stipulation that investment amount should be higher than Rs 600 thousand at the time of
study. The factor analysis technique resulted in four components, managerial and intrinsic
attributes, performance and asset profile, third-party assessment and extrinsic attributes. They
concluded that there is a significant difference between retail and non-retail mutual fund
investors with respect to factors of ‘performance and asset profile’ and ‘extrinsic
attributes’; while the former is more important for nonretail investors, the latter is more
important for retail investors. These findings assume importance in the sense that all the

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communication, information linked to performance and asset profile of the mutual fund
scheme should be more oriented towards non-retail investors.Begum and Rahman (2016)
have identified that the demographic factors like gender, income and savings have significant
influence on the investor’s attitude towards mutual funds investment in Dhaka city. The study
is basically on Investors’ Preference towards Mutual Fund Investment. 150 investors had been
considered but due to the data inefficiency in some questionnaire 120 have been used for data
analysis. The data thus collected has been tabulated first and then analyzed with the help of
different financial and statistical techniques like chi square test, factor analysis. Most of the
investors prefer Mutual Funds for the returns and feel that it is a safe measure of investment.
55% of the respondents are not satisfied by investing in mutual fund and 60% of the
respondents are not satisfied with their returns. Almost 55% respondents showed their
negative attitude towards mutual fund. By using 5-point Likert scale in structured
questionnaire, researchers have measured the factors affecting the attitude of investors
towards mutual fund. Chi square test have been used for analyzing the data. Investors prefer
mutual fund as safety of life and return on investment. The study has suggested some
important policy measures such as regulatory change, creating investors awareness,
encouraging the private companies to raise fund through mutual fund. Kaur, Batra, and
Anjum (2013)have shown that investors prefer mutual funds rather than stock market.
Investors consider mutual funds as flexible mode for investment. Moreover they think that
Asset Management Companies (AMCs) acts very efficient to track the market. Investment in
stock market is complex and risky. They have suggested that investors should consider long
historical data, size and age of the fund, fund charges and some measure to analyze the funds
for investments. Both primary and secondary data has been used in their study. 200 investors
have been taken for survey in India. A five point Likert scale questionnaire has been
constructed. The analysis of data has been done with factor analysis. Sharma, (2015) found
out the main objective to invest in mutual fund schemes by retail investors and types of
mutual fund schemes in which they like to invest. A convenient research method has been
used for collecting data from sampled respondents belonging to Faridabad city and Delhi city.
The sample consists of one hundred mutual fund investors. Various statistical techniques
have been used with the help of SPSS to analyze the data, such as mean, ranking and chi
square test. On basis of analysis of data the researcher concluded that investors invest in
mutual fund scheme for good return, safety and tax benefits. To achieve these objectives they
select growth schemes and balanced schemes. Sanesh & Greeshma (2016) have done a study
focusing on investors behavior towards mutual fund schemes is done at a general base. These
expectations of investors are influenced by their perception and humans generally relate
perception to action. They have found that Mutual fund investment is considered as one of
the investment avenues preferred by the investors. Long-term investors are showing more

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preferences towards mutual fund products. The investment objectives and investor’s level of
preferences towards mutual fund products vary with their time horizon of investment. It
is evident that return and safety of investment are the prime objectives of the investors.
Simple random sampling is used for the selection of samples for the study. 90 samples
collected from all over the Kerala are used for the study. Statistical Package for Social
Sciences (SPSS version 20) is used to analyze the data. Gangwar and Singh (2017) evaluated
investors’ attitude for mutual funds investment. Results show that most of the investors
know about mutual funds but are still not investing in mutual fund due to lack of
knowledge. This research presents a study of investor behavior for investment in mutual
funds in Allahabad. The sample size of this study is 1440. The data analyzed and processed
by applying classifying method, tabular method and presented for interpretation and
recommendations. They have also investigated investors attitude for mutual funds investment
in future for achieving investment objective. Another study has been done by Garg and
Singal (2016) to find out the behavior of the investors towards mutual fund and analyze the
all positive and negative factors. The study targets the investors of Hisar by adopting the
random sampling for 35 respondents. Simple statistical tool is chosen to analyze the
respondent behavior. The study analyzed the positive attitude of investors towards investing
in mutual fund because of appreciation and growth in their income. Agrawal and Jain (2013)
have explored the investment avenue preferred by the investors of Mathura, and they have
tried to analyze the investor’ s preference towards investment in mutual funds when other
investment avenues are also available in the market. The study considers a sample size of
300 responses. They have concluded that maximum investors are aware about Banks &
LIC as investment avenues only. If the investors have been provided more funds, then
they would like to invest in Real Estate because of its rapid growth. Therefore, on the
whole, they concluded that the Real Estate is the most preferred investment avenue of the
investors of Mathura. The Mutual fund has yet to percolate down as the preferred
mode of investment in smaller towns and cities. Mishra (2015) investigated perception of
investor towards mutual funds with an objective to explore the important aspects of Mutual
Funds affecting the perception of investors and also to examine the difference of perception
of large and small investors on the basis of explored factors. Data for the study were collected
form 136 sample respondents residing in Bhubaneswar City of Odisha using a structured
questionnaire and analyzed by exploratory factor analysis and t-test. As a result of factor
analysis three factors: investment, return and future were explored and through t-test it was
proved that there is a difference of perception among the small and large investors with
respect to ‘return’ and ‘future’ aspects of mutual fund. Fourteen variables are taken for the
study and all the 14 variables have been extracted into 3 factors. The important factors
regarding the perception of investors about mutual funds are investment, return and future

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respectively. Difference of opinion about mutual fund is again analyzed with the help of‘t’
test. Majority of the small investors are favorable to the perception about tax returns and
investments whereas large investors these factors are future and return. Thus mutual
fund companies should give due importance to these dimensions for their survival and
growth in Indian context.

3.0 Problem Statement

An understanding of investment behavior of mutual fund investors and outcome is important
for financial decision makers. The globalization of financial markets has been increasing the
investors’ community over the past two decades by providing a wide variety of market and
investment options. Behavior of mutual funds investor demographic and socioeconomic
characteristics influences the investment decision. However, it makes much more complex in
their investment decisions process. Their attitude is influenced by various factors such as
dividend, get rich quickly strategy, stories of successful investors, online trading,
investor awareness program, experience of other successful investors etc. The various
studies have been conducted in other countries but to the best of researchers’
knowledge no similar studies has been found in Bangladesh. But some studies have been
found based on a single city of Bangladesh. So, this study attempts to find out the factors of
investment behavior of mutual fund investors while investing in mutual funds all over
Bangladesh.

4.0 Research objective

1. To know about the mutual fund industry of Bangladesh.
2. To analyze the factors those are responsible for the selection of investment in mutual
funds by investors.

5.0 Research methodology

Data Collection Method:

Variables in the study have been identified based on literature review. Data were collected
through a structured questionnaire (please see appendix).

Population Frame and Sampling Plan:

Population is all mutual fund investors in Bangladesh. Responses were collected from 103
investors. Convenience sampling technique was used to collect respondents. The data
collection period was October 2017 to November 2017. The sample collection procedure was
conducted in two ways. One is from the several active social communication groups in
Facebook and the other one is the two brokerage houses located in Savar area. An online

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survey using Google docs was conducted to obtain the responses. It was found that for some
of the questions, a blank was left by the respondents or somewhat error. Such responses were
omitted from the analysis and the sample size was reduced accordingly. The secondary data
has been collected from published articles, books and websites.

Statistical Tools Used:

It is an analytical research and is related to the analysis the factors of preferences of
investors investment towards mutual fund. Factor analysis method using SPSS has been
used to analyze the data.

6.0 Analysis and Findings of the study:

A demographic profile of the respondent is given in Table 1.

Table 1: Respondents Profile

Variable Description Number (Percentage) of
respondents
Gender Female 7(6.8)
Male 96(93.2)
Education SSC 3(2.9)
HSC 9(8.7)
Graduate 60(58.3)
Post Graduate and above 31(30.1)
Occupation Business Owner 21(20.4)
Civil Service 5(4.9)
Private Sector 26(25.2)
Student 17(16.5)
Self Employed 34(33)
Year of Experience in investing <3 years 18(17.5)
3-5 years 26(25.2)
5< years 59(57.3)
Risk Preference High Risk / High Return 37(35.9)
Low Risk /Low return 20(19.4)
Low Risk/ High Return 46(44.7)
Investment Frequency Regular/Daily 66(64.1)
Monthly 23(22.3)
Once in Six Months 3(2.9)
Once in a year 5(4.9)
Very Rare 6(5.8)

Initial Analysis
Table 2 shows the correlation matrix which is used to check the pattern of relationship
between the variables. The significance values of all variables are greater than 0.05. The
correlation coefficients themselves are not greater than 0.9. So there is no singularity in the

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data. If the correlation between two independent variables is equal to 1 or −1, then there has a
perfect multicollinearity. So, multicollinearity is not a problem for these data. None of the
correlation coefficients are particularly large; therefore, there is no need to consider
eliminating any questions (variables) at this stage. Variables are denoted as following-

V1 = Return_performance_of_the_schemes
V2 = Risk_of_the_schemes
V3 = Tax_benefits_of_the_schemes
V4 = Entry_and_exit_loads_of_the_schemes
V5 = Growth_Prospects_of_the_schemes
V6 = Diversification_of_the_schemes
V7 = Simplicity_of_the_Investment
V8 = Quality_of_the_Assets
V9 = Reputation_or_brand_name_of_the_scheme_Mutual_Fund
V10 = Reputation_of_fund_manager

Table 2: Correlation Matrix

V1 V2 V3 V4 V5 V6 V7 V8 V9 V10
V1 1.000 0.173 0.336 0.119 0.154 0.222 0.232 0.355 0.210 0.199
V2 0.173 1.000 0.206 0.698 0.674 0.605 0.645 0.446 0.587 0.623
V3 0.336 0.206 1.000 0.323 0.300 0.161 0.243 0.278 0.192 0.218
V4 0.119 0.698 0.323 1.000 0.618 0.669 0.666 0.378 0.602 0.654
Correlation

V5 0.154 0.674 0.300 0.618 1.000 0.715 0.619 0.494 0.616 0.753
V6 0.222 0.605 0.161 0.669 0.715 1.000 0.721 0.599 0.646 0.737
V7 0.232 0.645 0.243 0.666 0.619 0.721 1.000 0.558 0.650 0.682
V8 0.355 0.446 0.278 0.378 0.494 0.599 0.558 1.000 0.536 0.608
V9 0.210 0.587 0.192 0.602 0.616 0.646 0.650 0.536 1.000 0.803
V10 0.199 0.623 0.218 0.654 0.753 0.737 0.682 0.608 0.803 1.000

Table 3 shows the Kaiser-Meyer-Olkin Measure of Sampling Adequacy in the first part of the
table. Kaiser-Meyer-Olkin Measure of Sampling Adequacy measure varies between 0 and 1,
and values closer to 1 are better. A value close to 1 indicates that patterns of correlations are
relatively compact and so factor analysis should yield distinct and reliable factors. Kaiser
(1974) recommends accepting values greater than 0.5 as acceptable. If the values below this
then, there should collect more data or rethink which variables to include. Furthermore,
values between 0.5 and 0.7 are mediocre, values between 0.7 and 0.8 are good, values
between 0.8 and 0.9 are great and values above 0.9 are superb. For these data the value is
0.873, which is great. So, we should be confident that factor analysis is appropriate for these
data.

Table 3 also shows the Bartlett’s Test of Sphericity in later part of the table. Bartlett’s Test of
Sphericity tests the null hypothesis that the correlation matrix is an identity matrix. For factor
analysis to work we need some relationships between variables and if the Correlation-matrix
were an identity matrix then all correlation coefficients would be 0. Therefore, we want this

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test to be significant. The significant value is less than 0.05. A significant test tells us that the
Correlation-matrix is not an identity matrix; therefore, there are some relationships between
the variables we hope to include in the analysis. For these data, Bartlett's test is highly
significant (p = 0< 0.001), and therefore factor analysis is appropriate.

Table 3: KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.873

Bartlett's Test of Sphericity Approx. Chi-Square 640.638

Df 45
Sig. 0

Factor Extraction:
Table 4 lists the eigenvalues associated with each linear component before extraction, after
extraction and after rotation. Before extraction, SPSS has identified 10 linear components
within the data set. The eigenvalues associated with each factor represent the variance
explained by that particular linear component and SPSS also displays the eigenvalue in term
of the percentage of variance explained (so, factor 1 explains 56.094% of total variance). It
should be clear that the first few factors explain relatively large amount of variance,
especially factor 1, whereas subsequent factors explain only small amount of variance. SPSS
then extracts all factors with eigenvalues greater than 1, which leaves us with two factors. The
eigenvalues associated with these factors are again displayed in the column named Extraction
Sums of Squared Loadings. The values in this part of the table are the same as the values
before extraction, except that the values for the discarded factors are ignored. In the last part
of the table, named Rotation Sums of Squared Loadings, the eigenvalues of the factors after
rotation are displayed. Rotation has the effect of optimizing the factor structure and one
consequence for these data is that the relative importance of the two factors is equalized.
Before rotation, factor 1 accounted for considerably more variance than factor 2 (56.094%
compared to 12.155%), however after extraction it accounts for only 52.187% of variance
(compared to 16.062%).

Table 4: Total Variance Explained

Extraction Sums of Squared Rotation Sums of Squared

Initial Eigenvalues Loadings Loadings
% of
% of Cumulativ % of Cumulativ Varianc Cumulative
Component Total Variance e% Total Variance e% Total e %
1 5.609 56.094 56.094 5.609 56.094 56.094 5.219 52.187 52.187
2 1.215 12.155 68.249 1.215 12.155 68.249 1.606 16.062 68.249
3 0.809 8.089 76.338
4 0.556 5.558 81.895
5 0.439 4.39 86.285
6 0.404 4.036 90.321
7 0.362 3.616 93.938
8 0.281 2.813 96.750
9 0.184 1.841 98.591
10 0.141 1.409 100
Extraction Method: Principal Component Analysis.

Table 5 shows the communalities before and after extraction. Principal component analysis
works on the initial assumption that all variance is common; therefore, before extraction the

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communalities are all 1. The communalities in the column named Extraction reflect the
common variance in the data structure. So, it can be said that 71% of the variance associated
with the first question 1 is common, or shared, variance. After extraction some of the factors
are discarded and so some information is lost. The amount of variance in each variable that
can be explained by the retained factors is represented by the communalities after extraction.

This output also shows the components matrix before rotation. This matrix contains the
loading of each variable onto each factor. By default SPSS display all loadings; however, here
all loading less than 0.4 be suppressed in the output and so there are blank space for many of
the loadings. This matrix is not particularly important for interpretation.

Table 5: Communalities

Initial Extraction
V1 1.000 0.710

V2 1.000 0.654

V3 1.000 0.577

V4 1.000 0.664

V5 1.000 0.707

V6 1.000 0.752

V7 1.000 0.711

V8 1.000 0.560

V9 1.000 0.688

V10 1.000 0.800

Extraction Method: Principal

Component Analysis.

Table 6 shows the un-rotated component matrix. At this stage SPSS has extracted two factors.
One important decision is the number of factors to extract. By Kaiser's criterion here it should
be extracted two factors and this is what SPSS has done. The average of the communalities
can be found by adding them up and dividing by the number of communalities
(6.823/10=0.6823).

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 Table 6: Component Matrixa

Component
1 2
0.886 -0.121
Reputation_of_fund_manager
0.859 -0.123
Diversification_of_the_schemes
0.841
Simplicity_of_the_Investment
0.834 -0.105
Growth_Prospects_of_the_schemes
0.823 -0.108
Reputation_or_brand_name_of_the_scheme_Mutual_Fund
0.803 -0.139
Entry_and_exit_loads_of_the_schemes
0.795 -0.150
Risk_of_the_schemes
0.704 0.252
Quality_of_the_Assets
0.318 0.780
Return_performance_of_the_schemes
0.362 0.668
Tax_benefits_of_the_schemes
Extraction Method: Principal Component Analysis.

a. 2 components extracted.

In Figure 1, a Scree Plot is shown with an arrow indicating the point of inflexion on the curve.
This curve is difficult to interpret because the curve begins to tail off after two factors and
after that the curve reached in a stable plateau.

Figure 1: Scree Plot

Table 7 shows the rotated component matrix which is a matrix of the factor loading for each
variable onto each factor. This matrix contains the same information as the component matrix
in Table-4 except that it is calculated after rotation. There are several things to consider about
the format of this matrix. First, factor loadings less than 0.4 have not been displayed because
there was asked for these loading to be suppressed. Second, the variables are listed in the
order of size of their factor loadings because there was asked for the output to be sorted by

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size. Finally, for all other parts of the output was suppressed the variable labels but for this
matrix there have been allowed the variable labels to be printed to aid interpretation.

Compare this matrix with the un-rotated solution. Before rotation, most variables loaded
highly onto the first factor and the remaining factors didn't really get a look in. However, the
rotation of the first structure has clarified things considerably: there are two factors and
variables load very highly onto only one factor.

Table 7: Rotated Component Matrixa

Component
1 2
0.882
Reputation_of_fund_manager
0.856
Diversification_of_the_schemes
0.828
Growth_Prospects_of_the_schemes
0.820
Simplicity_of_the_Investment
0.817
Reputation_or_brand_name_of_the_scheme_Mutual_Fund
0.808
Entry_and_exit_loads_of_the_schemes
0.804
Risk_of_the_schemes
0.597 0.451
Quality_of_the_Assets
0.839
Return_performance_of_the_schemes
0.746
Tax_benefits_of_the_schemes
Extraction Method: Principal Component Analysis.

Rotation Method: Varimax with Kaiser Normalization.

a. Rotation converged in 3 iterations.

Component 1: Reputation of fund manager, Diversification of the schemes, Growth

Prospects of the schemes, Simplicity of the Investment, Reputation or brand name of the
scheme Mutual Fund, Entry and exit loads of the schemes, Risk of the schemes and Quality of
the Assets.

Component 2: Return performance of the schemes and Tax benefits of the schemes.

68.249% of the total variance is explained by Component 1 and 2. The percentage of the total
variance which is used as an index to determine how well the factor solution accounts for
what the variables together represent. Component 1 explains 56.094% of variance before
rotation. Based on the variables, Component 1 could be termed as Market Factor. Component
2 explains 12.155% of the variance and could be termed as Income Factor.

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7.0 Conclusion
In today’s volatile market environment, mutual funds are looked upon as a transparent and
low cost investment vehicle, which attracts a fair share of investor attention helping
spur the growth of the industry. In this regard, to study the investment behavior of mutual
funds investors, factor analysis is used. Ten variables are taken for the study and all the 10
variables have been extracted into 2 factors. The important factors regarding the perception
of investors about mutual funds are market and income respectively. Majority of the investors
are favorable to the perception about market whereas rest of the investors this factor is
income. Thus mutual fund investors should give due importance to these dimensions for their
survival and growth in Bangladeshi context.

Page 12 of 13
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Appendix: Questionnaire

1A
2A