Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
I. INTRODUCTION
A mutual fund company is one that pools the funds of its different shareholders and invests the money on
behalf of them into diversified securities and related companies to achieve good return and resources appreciation
along with minimum risk. Mutual funds provide various benefits to the investors like various investment schemes,
flexibility, liquidity, tax benefit, transparency and minimum maintenance cost etc.
Mutual funds Investment Avenue is one among the attractive financial option for investors in India. Mutual
funds investment is a good choice for large, medium and small level investors who have fine resources and lack of
knowledge in stock market and other financial institutions or investment opportunities. Mutual funds industry is an
important financial mediator for collecting money mainly from medium and small level investors and investing them
in to financial securities.
Mutual funds present as a mediator where the investor obtain the expediency of their investing with the
funds in professionally managed collection along with further facilities that enlarge the investors impressiveness
towards the Indian capital market. In India the first mutual funds industry has been started with the performance of
Unit Trust of India (UTI) in 1963, and which started the function in 1964.
1
. Kandavel . D, (2011), “Factors Influencing the Retail Investors to Prefer Investment in Mutual Funds in
Puducherry: An Empirical study”, International Journal of Engineering & Management Research, 1(7): 19-29.
http://indusedu.org Page 108
This work is licensed under a Creative Commons Attribution 4.0 International License
P.Tamilselvan et al., International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08, Issue 1, January 2018, Page 108-114
KumarDigal Sabat and Chakraborty Suman (2013)2 analyzed investment pattern of mutual funds investment.
Factors considered for the study are investment safety, liquidity of investment and previous returns of investment
etc. It also shows that the fund manager need to understand the investor’s expectations based on their demographic
factors.
Priyanka and Tej Singh (2014)3 analyzed the gap between the public and private sector mutual funds. The
study attempts to measure the extent of difference between mobilization of public and private sector funds. The
result shows that there is a gap between repurchase and redemption of the public and private sector mutual funds. It
also implies that the private sector mutual funds are gaining more in terms of magnitude of mobilization of funds
compared to that of public sector mutual funds. The study also found that there is a strong relationship between the
pattern of the gap movement between mobilization of funds and redemption / repurchase of public and private sector
mutual funds.
Shelly et.al (2014)4 analyzed the attitude of retail investors in mutual funds. The study identified that most
of the retail investors have positive attitude in mutual funds investment. It further shows that the investors prefer
mutual fund investment over other investment options for gaining maximum return with minimum risk, safety and
other related factors.
Neelima and Chandrarao Surya (2016)5 conducted a study to find out the factors influencing mutual fund
investment. The factors considered are fund performance record, funds reputation or brand name, schemes expenses
ratio, schemes portfolio of investment, reputation of the fund Manager/ scheme etc. The study identified the varying
investors’ behavior in mutual fund scheme selection at different time horizon.
Scope of the study
Although mutual fund investments prove to be an attractive investment option for the investors, it has its
own pitfalls. The factors influencing mutual fund investments may vary depending upon the investors’ attitude. The
common factors, in general can be considered by the investors for this purpose. The present study highlights the
demographic factors of the investors and the factors influencing their investment decision.
Hypothesis for the study
The hypotheses formulated for the study are
1. There exists no significant relationship between gender of the respondents and the factors influencing their
investment decision.
2. There exists no significant relationship between age of the respondents and the factors influencing their
investment decision.
3. There exists no significant relationship between educational qualification of the respondents and the factors
influencing their investment decision.
4. There exists no significant relationship between earning members of the respondent’s family and the
factors influencing their investment decision.
5. There exists no significant relationship between monthly savings of the respondents and the factors
influencing their investment decision.
Objectives of the study
The primary objectives of the study are
1. To analyze investors awareness towards mutual fund investment.
2. To study the investors preference towards mutual fund for their investment preference.
3. To identify the factors responsible for investors preference towards mutual fund investment.
2
. Chakraborty Suman & Sabat Kumar Digal, (2013), “Analysis of Investment Pattern of Mutual Funds Investors –
An Empirical Study in Orissa”, Gitam Journal of Management, 11: 192-207.
3
. Singh Tej & Priyanka, (2014), “An Analysis of Gap between the Public and Private Sector Mutual Funds in
India”, Prestige e-Journal of Management and Research, 1(1):47-58.
4.
Shelly et.al, (2014), “Attitude of Investor towards Mutual Fund: A Case Study of Retail Investors in District
Yamuna Nagar, Haryana (India)”, International Journal of Management and Social Sciences Research (IJMSSR),\
3 (9): 48-54.
5
Neelima & Chandra Rao Surya, (2016), “Factors Influencing Investors in Mutual Funds Selection”, IOSR Journal
of Business and Management (IOSR-JBM), 7 (7): 41-49.
http://indusedu.org Page 109
This work is licensed under a Creative Commons Attribution 4.0 International License
P.Tamilselvan et al., International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08, Issue 1, January 2018, Page 108-114
Data Collection
Both primary and secondary data are used for data collection. The primary data is collected through well
structured questionnaire designed specifically for the study. The secondary data includes the published sources such
as journals, magazines and other website publications.
Sample size
The sample size selected for the study is 120.The sampling area is Erode. The samples selected for the
study includes the mutual fund investors in Erode district. Judgmental sampling is used for sample selection.
This work is licensed under a Creative Commons Attribution 4.0 International License
P.Tamilselvan et al., International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08, Issue 1, January 2018, Page 108-114
Among the selected investors, around 42% are undergraduates and nearly 37% are post graduates. This
clearly indicates that educational qualification plays a major role in determining the investment decision of the
respondents.
This work is licensed under a Creative Commons Attribution 4.0 International License
P.Tamilselvan et al., International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08, Issue 1, January 2018, Page 108-114
The chi square output table reveals that the pearsons chi square value is .009, which means that the
significance level of pearsons coefficient is not achieved at 90% level of confidence. Further the contingency
coefficient value is .401, which reveals that there is no association between gender of the investors and the factors
influencing their investment decision.
Table2.2: Association between Age and the factors influencing mutual fund investment
The table shows that that the contingency coefficient value is .737, which is closer to1.This shows that
there is a strong relationship between age of the investors and the factors influencing their investment decision
Table2.3: Association between Educational Qualification and the factors influencing Mutual Fund
Investment
The table shows that the contingency coefficient is .732, which shows that there is a strong association
between educational qualification of the respondents and the factors influencing their mutual fund investment.
Table2.4: Association between Number of Earning members in the Family and the Factors influencing
Mutual Fund Investment
This work is licensed under a Creative Commons Attribution 4.0 International License
P.Tamilselvan et al., International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08, Issue 1, January 2018, Page 108-114
The table shows that the contingency coefficient is .677, which shows that there is a strong association
between number of earning members of the respondents’ family and the factors influencing their mutual fund
investment.
Table2.5: Association between monthly savings and the factors influencing mutual fund investment
The table shows that the contingency coefficient is .702, which shows that there is a strong association
between monthly savings of the respondents’ family and the factors influencing their mutual fund investment.
V. CONCLUSION
The emergence of an array of savings and investment options and the dramatic increase in the secondary
market for financial assets in the recent years in India has opened up an entirely new area of value creation and
management. In the olden days, investing in mutual funds was confined to rich and business people. But, now a day
it has become a household word and is very popular with people from all walks of life. Due to the reduction in the
bank interest rates and high degree of volatility in Indian stock market, retail investors are looking for an alternative
for their small time investments in mutual fund which will provide them a higher return and also safety to their
investments.
VI. REFERENCES
Journals
[1] Kandavel. D, (2011), “Factors Influencing the Retail Investors to Prefer Investment in Mutual Funds in Puducherry: An Empirical
study”, International Journal of Engineering & Management Research, 1(7): 19-29.
[2] Chakraborty Suman & Sabat Kumar Digal, (2013), “Analysis of Investment Pattern of Mutual Funds Investors – An Empirical Study
in Orissa”, Gitam Journal of Management, 11: 192-207.
[3] Singh Tej & Priyanka, (2014), “An Analysis of Gap between the Public and Private Sector Mutual Funds in India”, Prestige e-
Journal of Management and Research, 1(1):47-58.
[4] Shelly et.al, (2014), “Attitude of Investor towards Mutual Fund: A Case Study of Retail Investors in District Yamuna Nagar, Haryana
(India)”, International Journal of Management and Social Sciences Research (IJMSSR), 3 (9): 48-54.
[5] Neelima & Chandra Rao Surya, (2016), “Factors Influencing Investors in Mutual Funds Selection”, IOSR Journal of Business and
Management (IOSR-JBM), 7 (7): 41-49.
[6] Agrawal, Ashok Motilal, “Mutual Funds- Emerging Trends and Prospects”, Finance India, Vol. XIV (4), (December 2000) pp.1271-
1275.
[7] Banerjee, Arindam “Mutual Funds: Wealth Creation through Systematic Investment Plans”, ICFAI Portfolio Organiser, (April 2006)
pp.53-58.
This work is licensed under a Creative Commons Attribution 4.0 International License
P.Tamilselvan et al., International Journal of Research in Management, Economics and Commerce,
ISSN 2250-057X, Impact Factor: 6.384, Volume 08, Issue 1, January 2018, Page 108-114
Books
[8] Agarwal, Peensh Ranjan Mutual Funds – A Comprehensive Approach to Mutual Funds, Orient Law House, New Delhi (1996).
[9] Bhatt R S, Unit Trust of India and Mutual Funds, UTI Institute of Capital Market, Navi Mumbai, (1996).
[10] Friend, Blume, Crockett, Mutual Funds and Other Institutional Investors – A new Perspective, Mc Graw Hill Book Company, New
York, (1970).
[11] Singh H K, Meera Singh, Mutual Funds and Indian Capital Market: Performance and Profitability, Kanishka Publishers, New Delhi,
First Edition, (2001).
APPENDIX
I. Profile of the Respondents:
1. Name:
2. Gender
a) Male b) Female c) Transgender
3. Age (in years)
a) Up to 25 b) 26 – 35 c) 36 – 45
d) 46 – 55 e) More than 56
4. Marital status
a) Married b) Unmarried
5. Educational Qualification
a) Up to HSC b) Diploma c) Undergraduate
d) Post Graduate e) others
6. Occupation
a) Private Employee b) Government Employee c) Self Employed
d) Farmer e) others
7. No. of family members
a) 2 b) 3 c) 4
d) 5 e) More than 5
8. No. of members earning in your family
a) 1 b) 2 c) 3
d) 4 e) More than 4
9. Monthly Income of your family ( in Rs)
a) Below 20, 000 b) 20,001 – 40,000 c) 40,001 – 60,000
d) 60,001 – 80000 e) More than 80,000
10. Monthly savings (in Rs)
a. Below 10000 b) 10001 – 20000 c) 20001 – 30000
d. 30001 – 40000 e) More than 40000.
11. What are the factors influencing for Mutual funds Investment?
a) More Return b) Safety c) Low Risk
d) Periodic Income e) Quality of service provided f) Liquidity
g) Portfolio Diversification h) Loan facility i) Tax benefits
j) Others.
12. Any other suggestions
____________________________________________________________________________________________
____________________________________________________________________________________________
This work is licensed under a Creative Commons Attribution 4.0 International License