MBA Final year Research paper

1. i
A STUDY ON INVESTOR’S PERCEPTION ABOUT MUTUAL
FUND INVESTMENT
A Project Submitted in partial fulfillment of the requirements for
the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
BY
HEMANT GUPTA
(MBA/45007/19)
DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OFTECHNOLOGY
MESRA-835215, RANCHI- NOIDA CAMPUS

2. ii
DECLARATION CERTIFICATE
This is to certify that the work presented in the project entitled “A Study on
investor’s perception about mutual fund investment” in partial fulfillment
of the requirement for the award of Degree of Master of Business
Administration of Birla Institute of Technology Mesra, Ranchi is an authentic
work carried out under my supervision and guidance.
To the best of my knowledge, the content of this project does not form a
basis for the award of any previous Degree to anyone else.
Date: 7th
May 2021 Dr. Abhishek Singh
Department of Management
Birla Institute of Technology
Mesra, Ranchi-Noida Campus
Head
Dept. of Management
Birla Institute of Technology
Mesra, Ranchi- 835215-Noida Campus

3. iii
CERTIFICATE OF APPROVAL
The foregoing project entitled “A Study on investor’s perception about
mutual fund investment” is here by approved as a creditable study of
research topic and has been presented in satisfactory manner to warrant its
acceptance as pre-requisite to the degree for which it has been submitted.
It is understood that by this approval, the undersigned do not necessarily
endorse any conclusion drawn or opinion expressed therein, but approve the
project for the purpose for which it is submitted.
(Internal Examiner) (External Examiner)
(Director)

4. iv
AKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and deep regards to
my guide Dr. Abhishek Singh Associate Professor, Management
Department, BIT Mesra, Noida Campus for his exemplary guidance,
monitoring and constant encouragement throughout the course of this
internship.
The blessing, help and guidance given by him from time to time shall carry me
a long way in the journey of life on which I am about to embark.
Hemant Gupta
MBA 4th
Semester

5. v
EXECUTIVE SUMMARY
TITLE:
A Study on investor’s perception about mutual fund investment
FACULTY GUIDE: Dr. Abhishek Singh
STUDENT: MBA 4TH
Semester
OBJECTIVES:
• To study investor’s perception towards mutual funds.
• To study the investors responsiveness and liking in mutual fund
schemes
• To study the factor influencing the investors in selecting mutual fund
schemes
• To study the different sectors where people are most interested in invest
their money.

6. vi
CONTENTS
CHAPTERS PAGE NO.
Chapter-1: Theoretical Background 1- 6
1.1 Conceptual Framework of the study 1
1.2 Applicability of the concept in the organization 6
Chapter-2: Literature Review 7-10
2.1 Empirical Study 7
2.2 Research Gaps Identified 10
Chapter-3: Problem Statement & Objectives of the Study 11-12
3.1. Rationale of Study 11
3.2. Managerial usefulness of the study 11
3.3. Problem statement and objectives of the study 11
3.4. Scope of the Study 12
Chapter-4: Research Methodology 13-14
4.1 Research Design 13
4.2 Sources of Data Collection 13
4.3 Sampling Procedure-Sampling Frame, Sample Size, Sample Unit,
Sampling Technique 13
4.4 Limitations of the Study 13
Chapter 5 Analysis & Interpretations of the Study 15-30
Chapter 6 Findings, Conclusion & Recommendations 31-34
6.1 Findings 31
6.2 Conclusion 32
6.3 Recommendations 33

7. vii
References/Bibliography 34
Appendix 35-39
Sample Questionnaire 35

8. viii
LIST OF TABLES
S.NO TITLE
PAGE
NO.
Table
5.1
Showing percentage of people’s perspective about the factors influencing
investment in Mutual Funds.
16
Table
5.2
Showing percentage of respondent’s source of information about Mutual
Funds.
17
Table
5.3
Showing percentage of people who are aware about the risk involved in
Mutual Funds
18
Table
5.4 Showing percentage of people’s different types of fund to invest in 19
Table
5.5
Showing percentage of people’s preference of the medium of purchase 20
Table
5.6
Showing percentage of people who have invested in different kinds Mutual
Funds
21
Table
5.7
Showing percentage of people who prefer different modes of investment for
investing in Mutual Funds
22
Table
5.8.
Showing percentage of people’s preference of various sectors while
investing in Mutual Funds
23
Table
5.9
Showing percentage of people who find mutual fund to be more profitable
than fixed deposits
24
Table
5.10
Showing percentage of people’s reason for investing in Mutual Funds 25
Table
5.11
Showing percentage of people who find that Mutual Fund give higher
returns when compared to any other investment.
26
Table
5.12
Showing percentage of people who faced various problems while investing
in mutual funds
27
Table
5.13
Showing percentage of people who prefer to invest certain amount of
money on monthly basis in monthly basis
28
Table
5.14
Showing percentage of people who find it safe to invest in Mutual Funds 29
Table
5.15 Showing percentage of people's opinion on the future of Mutual Funds 30

9. ix
LIST OF FIGURES
S.NO TITLE
PAGE
NO.
Figure
5.1
Count of people people’s perspective about the factors influencing
investment in Mutual Funds
16
Figure
5.2 Count of People's source of information about Mutual Funds 17
Figure
5.3
Count of people who are aware about the risk involved in Mutual
Funds
18
Figure
5.4 Count of people's variety of fund holding in Mutual Fund 19
Figure
5.5 Count of people's preference of the medium of purchase 20
Figure
5.6
Count of people who have already invested in different kinds Mutual
Funds
21
Figure
5.7
Count of people who prefer different modes of investment for
investing in Mutual Funds
22
Figure
5.8
Count of people's preference of various sectors while investing in
Mutual Funds
23
Figure
5.9
Count of people who find mutual fund to be more profitable than
fixed deposits
24
Figure
5.10 Count of people's reason for investing in Mutual Funds 25
Figure
5.11
Count of people who find that Mutual Fund give higher returns when
compared to any other investment
26
Figure
5.12
Count of people who faced various problems while investing in
mutual funds
27
Figure
5.13
Count of people who prefer to invest certain amount of money on
monthly basis in monthly basis
28
Figure
5.14 Count of people who find it safe to invest in Mutual Funds 29
Figure
5.15 Count the people's opinion on the future of Mutual Funds 30

10. 1
CHAPTER 1
THEORETICAL BACKGROUND
1.1. CONCEPTUAL FRAMEWORK OF THE STUDY
Mutual funds now play a very significant role in channelizing the savings of millions of
individuals. The mutual fund industry in India over the years has seen dramatic improvements
in terms of quantity as well as quality of product and service offerings in recent years. The
tremendous growth of Indian Mutual Funds industry is an indicator of India’s efficient
financial market and the trust, which investors have on the regulatory Environment. Millions of
investors rely on mutual funds as their primary investments because they offer a convenient,
cost-effective and easy way to invest in the financial markets. The Securities Exchange Board
of India (SEBI) regulates this fast growing industry and it is the representative body of all
funds in the country. Every mutual fund has a goal-either growing its assets (capital gains)
and/or generating income (dividends) for its investors. Distribution in the form of capital gains
(short-term and long-term) and dividends may be passed on (paid) to the shareholders as
income or reinvested to purchase more shares. A mutual fund is valued daily and reports a
price known as a Net Asset Value (NAV) per share. In its simplest Form, a NAV is the total
value of all the securities held in a fund divided by the total number of shares owned by its
shareholders. As the price of the NAV increases or decreases, the shareholder's value will
increase or decrease.
Over the years, mutual funds have grown from being an alternative to direct equity investment
to being recognized as a viable solution for different financial goals. From being focused
primarily on equity-oriented schemes, retail investors now have diversified portfolios with
investments also including debt-oriented schemes. The retail category has 67% of investor
assets held in equity-oriented schemes and 26% in debt-oriented schemes, with the rest in
liquid and money market schemes, exchange-traded funds (ETFs) and fund of funds (FoFs).
One of the key factors that has helped retail investors’ expectations is the awareness created by
fund houses and media alike. The Association of Mutual Funds in India’s ‘Mutual Fund Sahi

11. 2
Hai’ campaign has had a positive impact. They have started understanding mutual funds and
the different benefits offered by this versatile investment option.
It is widely believed that Mutual Fund is a retail product designed to target small investors,
salaried people and others who are intimidated by the stock market but, nevertheless, like to
reap the benefits of stock market investing. It is evident that mutual funds have at the top of the
agenda over the last decade thus, constituted the majority of many organizations’ portfolios.
Mutual fund is become an important part of the financial industry. Therefore, it gives
opportunity to an ordinary individual to invest in different companies with small amount of
money. So it in necessitate to study the importance of the mutual fund in the public and how
they are reached to the mutual fund etc.
Mutual Fund investments are subject to market risks, read all scheme related documents
carefully. Mutual funds are investment companies that collect funds from individual investors
and invest those funds in a potentially wide range of securities or other assets. Pooling of assets
is the key idea behind forming these investment companies. Each investor has a claim to the
portfolio established by the investment company in proportion to the amount invested. These
companies thus provide a mechanism for small investors to pool their funds to get benefits of
large scale investing.

12. 3
Mutual Fund firms collect cash from willing investors and invest it in share marker. The stock
market, mutual fund investments are also entitled for various market risks but with a fiar share
of profits.
- Long term and Short-term Performance
- Consistency in returns
- Performance during bullish and bearish phases
- Fund Managers performance with the fund’s operations.
The above points are clarity, securitization deals are best to the pre-tax claims period. The
Budget has provided to exempt securitization Trusts from taxes.
The cost advantage that mutual funds offered to investors has been slightly reduced to "revive"
the fortunes of the industry. The Securities and Exchange Board of India (SEBI) recently
changed rules to encourage the mutual fund industry to increase its reach beyond the large
cities. The result is a slightly higher cost for investors.
The Mutual Fund is one of the financial instruments in capital market, here the study based on
the empirical investigation on the performance of monthly income scheme in Indian Mutual
Fund Industry, main purpose of the study is to identify which of the month income scheme
provided highest return and minimize the risk. Research need because of the capital market is
unexpected volatility and sometimes reaction was positive and negative
TYPES OF MUTUAL FUND SCHEMES BASED ON THEIR MATURITY
PERIODS
Open-Ended Schemes do not have a fixed maturity. You deal with the Mutual Fund for your
investments & Redemptions. The key feature is liquidity. You can conveniently buy and sell
your units at Net Asset Value (NAV) related prices, at any point of time. Investors can sell
their units to the scheme through a re-purchase transaction at re-purchase price, which is linked
to NAV.
Close-Ended Schemes have a stipulated maturity period are called close ended schemes. You

13. 4
can invest in the scheme at the time of the initial issue and thereafter you can buy or sell the
units of the scheme on the stock exchanges where they are listed. Interval Schemes combine
the features of open-ended and close-ended schemes. The periods when an interval scheme
becomes open-ended, are called ‘transaction periods’; the period between the close of a
transaction period, and the opening of the next transaction period is called ‘interval period’.
Minimum duration of transaction period is 2 days, and minimum duration of interval period is
15 days. No redemption/repurchase of units is allowed except during the specified transaction
period (during which both subscription and redemption may be made to and from the scheme).
Scheme should be compulsorily listed in Stock Exchange during the interval period.
Interval funds: These schemes are a cross between an open-ended and a close-ended structure.
These schemes are open for both purchase and redemption during pre-specified intervals (viz.
monthly, quarterly, annually etc.) at the prevailing NAV based prices. Interval funds are very
similar to close-ended funds, but differ on the following points:
(1) They are not required to be listed on the stock exchanges.
(2) They can make fresh issue of units during the specified interval period, at the prevailing
NAV based prices.
(3) Maturity period is not defined
SEBI - CATEGORIZATION AND RATIONALIZATION OF MUTUAL
FUND SCHEMES
The Schemes would be broadly classified in the following groups as per SEBI guidelines:
Equity Schemes, Debt Schemes, Hybrid Schemes, Solution Oriented Schemes, Other Schemes
Equity Schemes
SEBI has defined large cap, mid cap and small cap companies as follows:
a. Large Cap: 1st -100th company in terms of full market capitalization
b. Mid Cap: 101st -250th company in terms of full market capitalization
c. Small Cap: 251st company onwards in terms of full market capitalization
Also an Equity scheme should invest minimum 65% of its assets in Equity and Equity related

14. 5
instruments.
Multi Cap Fund: Investing across large cap, mid cap, small cap stocks. The minimum
investment in equity and equity related instruments shall be 65 percent of total assets.
Large Cap Fund: Investing in large cap stocks. The minimum investment in equity and equity
related instruments of large cap companies shall be 80 percent of total assets.
Mid Cap Fund: Investing in mid cap stocks. The minimum investment in equity and equity
related instruments of mid cap companies shall be 65 percent of total assets.
Large and Mid-Cap Fund: Investing in both large cap and mid cap stocks. Large cap Stocks –
Minimum 35%, Mid Cap stocks – Min 35% of total assets.
Dividend Yield Fund: Predominantly investing in dividend yielding stocks.
Value Fund & Contra Fund: A value fund follows a value investment strategy. Minimum
investment in equity & equity related instruments shall be 65 percent of total assets. Value
Schemes invest in Undervalued Companies. Investments in value funds yield benefits over
longer holding periods. A contra fund follows contrarian investment strategy. Mutual Funds
will be permitted to offer either Value fund or Contra fund.
Focused Fund: Investing in maximum 30 stocks (the scheme needs to mention where it intends
to focus, viz., multi cap, large cap, mid cap, small cap).
Sectoral / Thematic: Investing in a specific sector such as Pharma, FMCG is a sectoral fund.
The minimum investment in equity & equity related instruments of a particular sector/
particular theme shall be 80 percent of total assets. Sectoral fund schemes are ideal for
investors who have decided to invest in a particular sector. Thematic funds invest in line with
an investment theme. The investment is more broad-based than a sector fund; but narrower
than a diversified equity fund. Equity Linked
Savings Scheme (ELSS): Tax saving scheme with a statutory lock in of 3 years. Minimum

15. 6
investment in equity and equity related instruments shall be 80 % of total assets (in accordance
with Equity Linked Saving Scheme, 2005 notified by the Ministry of Finance)
Equity Index Fund schemes are ideal for investors who are satisfied with a return
approximately equal to that of an index. These schemes attempt to replicate the performance of
a particular index such as the BSE Sensex, the NSE 50 (NIFTY). Invests in Index Stocks as per
the weightage. Fund Manager has no role in deciding on investments. These funds are not
designed to outperform the Index and have Low Running Cost. An Index Fund with Low
Tracking Error is a Good Fund. Index fund is an example of Passive style of Fund
management.
1.2 APPLICABILITY OF THE CONCEPT IN THE ORGANISATION
When considering investment opportunities, the first challenge that almost every investor faces
is a plethora of options. From stocks, bonds, shares, money market securities, to the right
combination of two or more of these, however, every option presents so why should investors
consider mutual funds over others to achieve their investment goals? Mutual funds allow
investors to pool in their money for a diversified selection of securities, managed by a
professional fund manager. It offers an array of innovative products like fund of funds,
exchange traded funds, Fixed Maturity Plans, Sectored Funds and many more. Whether the
objective is financial gains or convenience, mutual funds offer many benefits to its investor.

16. 7
CHAPTER 2
LITERATURE REVIEW
2.1 EMPIRICAL STUDY
D.Senthil and Dr.M.Syed Zefar (2005) had published an Article “Mutual Fund- Investor’s
Perceptions and realities”. The main aim of the study is to find out the investor’s perception
and realities in the current scenario and measure extend of satisfaction derived by customer
towards the performance of mutual fund and willingness to invest in future despite the current
prevailing condition of the market. The main purpose of the study is to identify the factors
which make them invest and to retain in mutual fund. The study says that investors prefer
mutual fund than share because high risk is associated with shares.
Sanjay.J.Bhayani and Vishal.G.Patidar (2006) during the period Mutual Fund can increase
in domestic saving and improve the deployment of investment through market. The main scope
of the study is performed top five schemes are balanced fund scheme, Gilt fund scheme, Liquid
Money Market fund scheme, Income fund scheme, Equity diversified fund scheme, Tax
planning fund scheme.
Jaspal Singh and Subash Chander (2006) conducted a study on Investor’s preference for
investments in mutual funds. Some 260 mutual fund investors were selected for the study.
According to the preference of investors, the investment avenue was ranked as Gold first,
followed by the NSC Schemes, and post office schemes. Mutual funds have been ranked at 5th
place. Investors belonging to the salaried category and in the age group of 20-35 years
preferred close - ended and equity-oriented schemes more. Majority of the investors took their
investment decision on the advice of brokers, professional and financial advisors. It was found
that large number of respondents belonging to the salaried category and those in the age group
of 35-50 years showed varied experiences as regards returns received from investments made
in mutual funds.

17. 8
Gajendra (2007) classified hundred mutual fund schemes by employing Cluster Analysis and
using a host of criteria like the 1year total return, 2year annualized return, 3year annualized
return, 5year annualized return, alpha, beta, R-squared, Sharpe’s ratio, mean and standard
deviation and the like. He found that evidences of inconsistencies between the investment style
and the return obtained by the fund.
Martenson and Rita (2008) analyzed gender difference for financial consumers and how the
Swedish population has allocated their pension investments within the state pension systems as
well as the results from a nationally representative sample of consumers. They found that there
are less significant differences between expert men and women. Men are both profit oriented
and more motivated to make financial investments than women are.
Sehgal and Sanjay (2009) examined, if there was any short-term persistence in mutual funds’
performance in the Indian context. They found that there was no evidence that confirmed
persistence using monthly data. They concluded that efficient market hypothesis has
implication for hedge funds and other managed portfolios.
Kaushik and Abhay (2010) investigated the performance of mutual funds that hold a small
number of stocks in their portfolio. They found that average small holdings fund did not
outperform the S&P 500 index. Winner portfolios outperformed the S& P composite index by
49.2 % per annum, whereas losers under performed by 38.4 % per annum over the same period.
Sukhwinder Kaur (2010): analyze that the investor’s perception regarding mutual funds in
India and to give the suggestions for growth of mutual fund in India. Primary and secondary
data have been used in the study. Sample size has taken 200 investors for survey. The analysis
of data has been done with the factor analysis. The findings of the study revealed that investors
consider mutual funds as safe and secured investment and vehicle to enter into blue chip
companies and assure monetary benefits.
C A Mitul Parmar(2012) in their study on “A Comparative Performance of Selected Scheme
of Mutual Fund: Asset Understand Management” published in the year 2012 stated that,

18. 9
Mutual fund is one the financial instrument in capital market. Mutual fund means collection of
money from a large group of investors, pools it together, and invests it in various securities.
Portfolio selection means right combination and proportion of the stocks of different types. A
study highlights the return on systematic investment plan via lump sum investment on funds.
Performance of mutual funds depends on the capital market return or benchmark return. Here
researcher selected five start rated mutual fund schemes from selected Assets Management
Company. The scheme objectives were indicated risk and return on funds with reference to
how much fluctuation on portfolio and diversification of assets. Performance evaluation
included sample of 10 equity diversified schemes, period of the study was two years from 2005
to 2009 data collection was secondary type and collected on the magazine “Mutual Fund
Insight”, other websites respective fund house. This study is done by applying performance
evaluation on analysis of Variance to used F test, to know variability under assets. This study
also guideline the investor by protecting against risk, selection, construct of portfolio and
diversified portfolio.
Nishi Sharma (2012): examines the investor’s perception with reference to distinct features
provided by mutual fund companies to attract them for investing in specific funds/schemes.
The study uses principal component analysis as a tool for factor reduction. The results reveal
that in order to secure the patronage of Indian investor mutual fund companies are expected to
ensure full disclosure and regular updates of the relevant information along with the assurance
of safety and monetary benefits.
Pritam P. Kothari and Shivganga C. Mindargi(2013) analyses that the impact of different
demographic variables on the attitude of investors towards mutual funds. Apart from this it also
focuses on the benefits delivered by mutual funds to investors. To this end, 200 respondents of
Solapur city, having different demographic profiles were surveyed. The study reveals that the
majority of investors have still not formed any attitude towards mutual fund investments. Only
a small segment of the investors still in mutual funds and the main sources of information still
are the financial advisors followed by advertisements in different media.
AnkitGoel, Rajendra.K, Khatik (2017): reveals that majority of respondents are showing
preference towards investment in mutual funds in near future as to get better returns. It can be

19. 10
said that the Mutual Fund as an investment vehicle is capturing the attention of various
segments of the society, like industrialist, financial intermediaries, academicians, investors and
regulators for varied reasons and deserves an in-depth study.
2.2. RESEARCH GAPS IDENTIFIED
From the above literature review it is clear that we yet have a long way to go further but to
move on we need to analyze what exactly investors are expecting from mutual fund schemes
and mainly the problem which we are facing is withdrawal of schemes by the investors, though
many research were done on the part of factor influencing the investors to invest their hard
earned money in mutual fund but only few researchers had addressed towards factors
influencing the investors to withdraw from mutual fund schemes but the studies are conducted
from 2009 to 2014.
Because of the development of mutual fund industry, the investors have a preference of mutual
funds as an investment option. Hence there is a huge research gap in all the literature reviews
that most of people have worked on the area of factors influencing the investors to invest in
mutual fund but limited number of researchers have been done by taking both the components
i.e. factors influencing the investors to invest in mutual fund and factors influencing the
investors to withdraw from mutual fund. Where in no such work has been addressed on factors
preventing investors to invest in mutual fund where in this area motivated me to take up this
topic where all the three components are brought down into one roof.

20. 11
CHAPTER 3
PROBLEM STATEMENT AND OBJECTIVES OF THE STUDY
3.1 RATIONALE OF STUDY
My study based on the fact rather than pure assumptions about the mutual fund schemes cater
for different category of people and give clear understanding about schemes and break the
myth about the mutual that only few selected institutional investor and AMCs are benefited.
And rest is loser and expense ratio are hidden and entry load is low and exit load is very high.
Every investor has equal awareness about mutual whether belong to tire two cities or metros.
Picture is quite different all myth about the mutual are came out of rather serious research. So,
my research tries to answer those entire questions arise in mind of common investor about the
subject.
3.2 MANAGERIAL USEFULNESS OF THE STUDY
The main purpose of this study is to analyze the investor’s perception towards mutual fund.
Further, the study also enables us to understand if the investor perception is dependent on the
demographics of the investor along with various other factors.
3.3 PROBLEM STATEMENT & OBJECTIVES THE STUDY
A Study on investor’s perception about the mutual fund investment
• To study the investor’s perception towards mutual funds.
• To study the investors responsiveness and liking in mutual fund schemes
• To study the different sectors where people are most interested in invest their money.

21. 12
3.4 SCOPE OF STUDY
In my project the scope is limited to some prominent mutual funds in the mutual fund industry
related to retail investors. I analyzed the opportunities of SIP depending on their schemes like
income, balance etc. But there is so many other schemes in mutual fund industry like
specialized (banking, infrastructure, pharmacy) funds, index funds etc. My study is mainly
concentrated on the retail investor behavior while selecting a fund and investment in SIP.

22. 13
CHAPTER 4
METHODOLOGY
4.1 RESEARCH DESIGN
Descriptive research has been carried out for the purpose of understanding the investor’s
perception towards mutual fund investment.
4.2 SOURCES OF DATA COLLECTION
Primary Sources
• Structured Questionnaire (Close ended questionnaire) would be circulated to the people
who are thinking or actually investing in mutual funds.
Secondary Sources
• Journals
• Research papers
• Reliable websites
4.3 SAMPLING PROCEDURE
Sampling Technique: Convenience sampling
Sample size: 50 respondents
Research Instruments: Structured questionnaire
4.4 LIMITATIONS OF THE STUDY
The above study has been conducted on the basis of primary collected which has been collected
through questionnaire. It is subject to certain limitations that are as follows:

23. 14
• The research is confined to certain parts and does not necessarily show a pattern
applicable to all of country.
• The ability and unwillingness of respondent to answer the questions.
• The sample size has been restricted to 50 respondents.
• The area and respondents undertaken for research are small thus results may differ with
change in sample size.
• It cannot provide answer to any problem but can only provide a set of guidelines.

24. 15
CHAPTER 5
ANALYSIS & INTERPRETATIONS OF THE STUDY
DEMOGRAPHIC PROFILE OF THE RESPONDENTS
The demographic profile of the respondents includes Gender, Age, Annual Income,
Occupation, Education level and Experience.
GENDER
The Gender ratio is 64% (32) males and 36% (18) of females.
AGE
For the analysis purpose, the age of respondents has been classified into four categories Less
than 25- 28% of people (14), 25 to 40- 36% of people (18), 41 to 50- 30% of people (15), and
51 to 60-6% of people (3).
ANNUAL INCOME
Income has been measured as annual income ranging from Below 3 lacs-22% (11), Rs. 3lacs to
5lacs-36% (18), Rs. 5lacs to 10lacs-30% (15), and more than 10lac-12% (6).
OCCUPATION
The occupation status of respondents has been grouped as Business32% (16), Job 40% (20),
Profession24% (12), Others 4% (2)
EDUCATION LEVEL
The education level of respondents has been measured in terms of Undergraduate 12% (6),
Graduates 52% (26), Post graduates 28% (14), Others 8% (4)

25. 16
EXPERIENCE
Investment Experience of respondents has been grouped as Less than 2 Years 44% (22), 2
Years to 5 Years 30% (15), 5 Years to 10 Years 24% (12) and Above 10 Years 2% (1)
The above graph shows 32% people
are investing in mutual funds
because of its high return, 24% for
the purpose of Tax saving and 20%
for the purpose of diversifying its
portfolio.
16
12
8
4
10
0
2
4
6
8
10
12
14
16
18
High Return Tax Saving Safety and Security Regular Savings Diversification
Count of people people’s perspective about the factors
influencing investment in Mutual Funds
Number of
respondents
Percentage
High Return 16 32%
Tax saving 12 24%
Safety and
security
8 16%
Regular savings 4 8%
Diversification 10 20%
Total 50 100%
FIGURE 5.1
TABLE 5.1: Showing percentage of people’s perspective about the factors influencing
investment in Mutual Funds.

26. 17
The above graph shows 28% of our
respondents get to know about mutual funds
from the Internet, 24% from the television,
20% from both Newspaper and Relatives &
friends and the remaining 8% got awareness
from the agents.
Number of
respondents
Percentage
Internet 14 28%
Television 12 24%
Newspaper and
Magazine
10 20%
Relatives and
Friends
10 20%
Agent 4 8%
Total 50 100%
14
12
10 10
4
0
5
10
15
Internet Television Newspaper and
Magazines
Relatives and Friends Agents
Count of People's source of information about Mutual Funds
TABLE 5.2: Showing percentage of respondent’s source of information about Mutual Funds.
FIGURE 5.2

27. 18
The above graph shows 92% of our
respondents are aware about the risk
involved in mutual funds whereas, only 8%
are unaware about the risk involved in it.
46
4
0
5
10
15
20
25
30
35
40
45
50
Yes No
Count of people who are aware about the risk involved in
Mutual Funds
Number of
respondents
Percentage
Yes 46 92%
No 4 8%
Total 50 100%
FIGURE 5.3
TABLE 5.3: Showing percentage of people who are aware about the risk involved in Mutual
Funds

28. 19
The above graph shows 48% our respondents
invest in balanced fund, 24% and 20% in
debt and equity fund respectively and the
remaining respondents (8%) invest in Sector
and Industry Fund.
10
12
24
4
0
0
5
10
15
20
25
30
Equity Debt Balanced funds Sectory and Industry
Fund
Money Market Fund
Count of people's variety of fund holding in Mutual Fund
Number of
respondents
Percentage
Equity 10 20%
Debt 12 24%
Balance 24 48%
Sector and
Industry Fund
4 8%
Money Market
Fund
0 0%
Total 50 100%
FIGURE 5.4
TABLE 5.4: Showing percentage of people’s different types of fund to invest in

29. 20
The above graph shows 64% of our
respondents prefer to buy units of mutual
funds through brokers, whereas the remaining
36% prefer to buy it directly without any
involvement of broker.
18
32
0
5
10
15
20
25
30
35
Buy Direct Purchase Through Brokers
Count of people's preference of the medium of purchase
Number of
respondents
Percentage
Buy Direct
Purchase
18 36%
Through Brokers 32 64%
Total 50 100%
FIGURE 5.5
TABLE 5.5: Showing percentage of people’s preference of the medium of purchase

30. 21
The above graph shows 44% of our
respondents invest in HDFC mutual funds,
24% in SBIMF, 16% and 12% in Reliance
and ICICI Prudential Funds respectively.
12
2
22
8
6
0
5
10
15
20
25
SBIMF UTI HDFC Reliance ICICI Prudential Funds
Count of people who have already invested in different kinds
Mutual Funds
Number of
respondents
Percentage
SBIMF 12 24%
UTI 2 4%
HDFC 22 44%
Reliance 8 16%
ICICI Prudential
Funds
6 12%
Total 50 100%
FIGURE 5.6
TABLE 5.6: Showing percentage of people who have invested in different kinds Mutual
Funds

31. 22
The above graph shows 76% of our
respondents prefer to invest through
Systematic Investment Plan (SIP) whereas
the remaining 24% prefer to pay as one
mode investment.
12
38
0 0 0
0
5
10
15
20
25
30
35
40
One mode Investment Systematic Investment
Plan
Count of people who prefer different modes of investment for
investing in Mutual Funds
Number of
respondents
Percentage
One Mode
Investment
12 24%
Systematic
Investment Plan(SIP)
38 76%
Total 50 100%
FIGURE 5.7
TABLE 5.7: Showing percentage of people who prefer different modes of investment for
investing in Mutual Funds

32. 23
The above graph shows 30% of our
respondents prefer to buy mutual funds in
banking sector, 24% in oil and petroleum,
24% and 16% in Pharma and Power Sector
respectively and the remaining 6% invest in
gold funds.
15
12
8
3
12
0
5
10
15
20
Banking Sector Oil and petroleum Power sector Gold Fund Pharma Sector
Count of people's preference of various sectors while investing
in Mutual Funds
Number of
respondents
Percentage
Banking Sector 15 30%
Oil and
petroleum
12 24%
Power Sector 8 16%
Gold Fund 3 6%
Pharma Sector 12 24%
Total 50 100%
FIGURE 5.8
TABLE 5.8: Showing percentage of people’s preference of various sectors while investing
in Mutual Funds

33. 24
The above graph shows 84% of our
respondents find mutual funds more
profitable whereas the remaining 16%
thinks opposite.
8
42
0
5
10
15
20
25
30
35
40
45
Fixed Deposits Mutual Funds
Count of people who find mutual fund to be more profitable
than fixed deposits
Number of
respondents
Percentage
Fixed Deposits 8 16%
Mutual Fund 42 84%
Total 50 100%
FIGURE 5.9
TABLE 5.9: Showing percentage of people who find mutual fund to be more profitable
than fixed deposits

34. 25
The above graph shows 40% of the
respondents is investing for the reason of
buying house, 28% for the retirement, 24%
for the children education and the remaining
6% and 2% because of Vacation abroad and
Other respectively.
12
14
20
3
0
5
10
15
20
25
Children Retirement House Vacation Abroad
Count of people's reason for investing in Mutual Funds
Number of
respondents
Percentage
Children
Education
12 24%
Retirement 14 28%
House 20 40%
Vacation
Abroad
3 6%
Other 1 2%
Total 50 100%
FIGURE 5.10
TABLE 5.10: Showing percentage of people’s reason for investing in Mutual Funds

35. 26
The above graph shows that 90% of our
respondents believes mutual funds give
higher returns when compared to other
investment whereas the 10% thinks
opposite.
45
5
0
5
10
15
20
25
30
35
40
45
50
Yes No
Count of people who find that Mutual Fund give higher
returns when compared to any other investment
Number of
respondents
Percentage
Yes 45 90%
No 5 10%
Total 50 100%
FIGURE 5.11
TABLE 5.11: Showing percentage of people who find that Mutual Fund give higher
returns when compared to any other investment.

36. 27
The above graph shows 24% respondents
face problem of low income and poor
service of broker, 20% respondents face
poor service of the company problem, and
16% delay in selling units.
12
8
12
10
8
0
5
10
15
Low Income Unable to assess the
market
Poor service of the
broker
Pooer service by the
company
Delay in selling units
Count of people who faced various problems while investing
in mutual funds
Number of
respondents
Percentage
Low Income 12 24%
Unable to assess
the market
8 16%
Poor service of
broker
12 24%
Poor services by
the company
10 20%
Delay in selling
units
8 16%
Total 50 100%
FIGURE 5.12
TABLE 5.12: Showing percentage of people who faced various problems while investing
in mutual funds

37. 28
The above graph shows 42% of the respondents
invest 5,000-10,000, 30% invest less than 5,000
whereas 12% invest 10,000-20,000 and 20,000-
30,000 and the remaining 4% invest more than
30,000.
15
21
6 6
2
0
5
10
15
20
25
Less than 5,000 5,000-10,000 10,000-20,000 20,000-30,000 More than 30,000
Count of people who prefer to invest certain amount of
money on monthly basis in monthly basis
Number of
responden
ts
Percentage
Less than 5,000 15 30%
5,000-10,000 21 42%
10,000-20,000 6 12%
20,000-30,000 6 12%
More than 30,000 2 4%
Total 50 100%
FIGURE 5.13
TABLE 5.13: Showing percentage of people who prefer to invest certain amount of
money on monthly basis in monthly basis

38. 29
The above graph shows 44% of our
respondents agree with the statement that
mutual fund is safe, 30% strongly agree to it,
whereas 18% neither agree nor disagree
which shows that most of the people accept
this statement.
15
22
9
4
0
0
5
10
15
20
25
Strongly agree Agree Neutral Disagree Strongly disagree
Count of people who find it safe to invest in Mutual Funds
Number of
respondents
Percentage
Strongly Agree 15 30%
Agree 22 44%
Neutral 9 18%
Disagree 4 8%
Strongly
Disagree
0 0%
Total 50 100%
FIGURE 5.14
TABLE 5.14: Showing percentage of people who find it safe to invest in Mutual Funds

39. 30
The above graph shows almost 80% our
respondents believes that the future of mutual
fund will be very good or good, 16% believes
the future will be average whereas only 4%
believes it will be bad.
18
22
8
2
0
0
5
10
15
20
25
Very good Good Average Bad Worse
Count the people's opinion on the future of Mutual Funds
Number of
respondents
Percentag
e
Very good 18 36%
Good 22 44%
Average 8 16%
Bad 2 4%
Worse 0 0%
Total 50 100%
TABLE 5.15: Showing percentage of people's opinion on the future of Mutual Funds
FIGURE 5.15

40. 31
CHAPTER 6
FINDINGS, CONCLUSION AND RECOMMENDATIONS
6.1 FINDINGS
• From the study it is found out that 90% of the respondents believes mutual funds gives
higher returns when compared to any other investment.
• Most of the respondents (around 75%) agree or strongly agree with the statement that
mutual fund is a safer option if someone wants to invest his/her money and only 8%
disagree that it is safe, and the other remaining candidates are neutral.
• After the research, it is found out that the most common reason why people investing in
mutual fund is for buying house (40%) followed by Retirement (28%), Children
Education (24%) etc.
• Most of the respondents (Almost 80%) invest in Banking, Pharma and Oil & petroleum
sector mutual funds whereas only 16% is interested in Power Sector Mutual Funds.
• Almost 50% of the respondents invest in Balanced Fund (Mix of Equity and Debt),
24% and 20% in Debt and Equity funds respectively.
• Almost 90% of the respondents agree with the fact that there is some risk involved in
investing in mutual funds whereas only 8-10% disagree with this statement.
• 44% of the respondents invest in HDFC mutual funds, 24% in SBIMF and remaining in
Reliance and ICICI prudential Mutual funds.
• Out of 50 respondents almost 70% people invest 10,000 or less than 10,000 in mutual
funds schemes and the remaining 30% invest more than 10,000 in different mutual fund
schemes.
• Almost 755 of the respondents believes in investing through Systematic Investment
Plan (SIP) and the remaining part believes in One mode Investment.
• Most of the respondents got to know about the mutual from Internet or television and
magazines.
• Almost 80% of the respondents believes that the future of mutual fund will be very
good or good, whereas only 4% believes it will be bad.

41. 32
So, from all the above findings we got to know that people find mutual fund as the safest and
high return investment. There is risk associated in it but for those who are unaware about its
functioning or have no knowledge about its schemes. From the last 5 or 6 years it is generating
better returns than Fixed deposits. People see mutual funds as tax savings option as well.
6.2 CONCLUSION
It is concluded from the research study that the minds of the investing public look for
investments are safe and that it will earn good returns. This study conducted was regarding the
investor’s perception towards mutual funds investment. It is found out that the investors of
middle-income level agrees that regular income and liquidity of the investment plays a vital
role. It can be perceived that high risk leads to high returns in the investment. There’s a scope
where investors belonging to different age groups seek for many other factors that can attract
them to invest in the mutual fund industry than just the ones considered for the study. Measures
should be taken to increase the confidence and morale of the investors. This can be done
through proper communication and by educating investors to invest in mutual funds. Sensible
and right communication should be given to them by various communication modes so that
they get to know about the latest trends in the market. Mutual funds are still and would carry on
to be the unique financial instrument in the country.
For the last 5 years or so people investing in mutual has been increasing very rapidly, they find
this as a safer and high return investment source. The future of mutual fund is very bright as it
is one of the most important financial assets in our country. With the booming economy, this is
the right time for the people to shift from saving their money in insurance to investing their
money in different mutual fund schemes.
6.3 RECOMMENDATIONS
• The Investor should keep an eye on the performance of scheme and other good schemes
which are available in the market for the closed comparison.
• The broker should reduce the brokerage charges for the intraday and delivery based, so
that the investor can save more amount to generate extra investment for the investor

42. 33
himself as well as for the mutual fund companies.
• The mutual fund industry must also help people in mobilizing in their savings in such a
way that they can get maximum benefits out of them. The companies must try to
increase the investment in moderate to high-risk investments by highlighting the
rewards and returns on such funds.
• Effort should be made to encourage or enhance online dealing of mutual funds. This
will save time and cost. They can effortlessly sell or purchase any number of funds
whenever they want.
• As there is no comprehensive law to regulate the mutual fund in India, uniform
coordinated regulations by a single agency would be formed which provide the shelter
to the investors.
• The investors are not willing to invest in mutual fund unless a minimum return is
assured, it is very essential to create in the mind that mutual fund are market
instruments and associated with market risk hence mutual fund could not offer
guaranteed income.

43. 34
REFERENCE/BIBLIOGRAPHY
• Dr. Binod Kumar Singh, “A study on investors’ attitude towards mutual funds as an investment
option”, Issue2, Vol. 2 (March-2012)
• Jaspal Singh, and Subhash Chander.(2003).What Drives the investors towards Mutual Funds: An
Empirical Analysis. The ICFAI Journal 0fApplied Finance, Vol. 9(8),pp.38-46.
• Dr.Nishi Sharma (2009) “Indian Investors Perception towards mutual funds”, Business
Management DynamicsVol.2, No.2, Aug 2012, pp.01-09.
• Ranganathan, Kavitha (2006),"A Study of Fund Selection Behavior of Individual Investors towards
Mutual Funds-with Reference to Mumbai City, "Social Science Research Network, Vol. 5(1)
• Singh Jaspal & Chander Subhash (2004), an empirical analysis of perceptions of investors towards
mutual funds.Finance India, 18(4), pp 1673-1692.
• Walla, N., and Kiran, R. (2009), "An Analysis of Investor's Risk Perception towards Mutual Funds
Services", International Journal of Business Management, Vol.4, No.5.
• Sanjay. J. Bhayani & Vishal. G. Patidar. (2006). An empirical analysis of performance evaluation of
mutual fund schemes in India. The ICFAI Reader, 15-20.
• Madhumita Chakra Borty, P K Jain, & Vinay Kallianpur. (2007). Mutual fund performance: An
evaluation of select growth fund in India. South Asian Journal of Management, 15(4), 79-86
• Agarwal, G.D. (1992). Mutual funds and investors interest. Chartered Secretary, 22(1), 23-24 [5]
Ajay Srinivasan. (1999). Mutual funds: The new era. Charted Secretary, A 262.
• Anjan Chakrabarti & Harsh Rungta. (2000). Mutual funds industry in India: An indepth look into
the problems of credibility, risk and brand. The ICFAI Journal of Applied Finance, 2, 27-45.

44. 35
APPENDIX
7.1 SAMPLE QUESTIONAIRE
1. GENDER
Male
Female
Prefer not to say
2. AGE GROUP
Less than 25
25Years-40Years
41Years-50Years
51Years-60Years
3. EDUCATION
Under Graduate
Graduate
Post Graduate
Others
4. OCCUPATION
Business
Job
Profession
Others

45. 36
5. ANNUAL INCOME
Below 3 lacs
3 Lacs - 5 Lacs
5 Lacs - 10 Lacs
Above 10 Lacs
6. EXPERIENCE
Less than 2 Years
2 Years - 5 Years
5 Years - 10 Years
Above 10 Years
7. Factors influencing investment in Mutual Fund
High Return
Tax Saving
Safety and Security
Regular Saving
Diversification
8. Source of awareness of Mutual Fund:
Internet
Television
Newspaper & Magazine
Relatives and Friends
Agent

46. 37
9. Awareness of risk involved in Mutual Fund Investment
Yes
No
10. Types of fund held by the Respondents
Equity
Debt
Balanced
Sector and Industry Fund
Money Market Fund
11. Purchase of Mutual Fund Units
Buy Direct Purchase
Through Brokers
12. In which Mutual Fund you have invested?
SBIMF
UTI
HDFC
Reliance
ICICI Prudential Funds
13. When you invest in Mutual Funds which mode of investment will you prefer?
One Time Investment
Systematic Investment Plan (SIP)

47. 38
14. Which sector are you investing in Mutual Fund sector?
Banking Sector
Oil and petroleum
Power sector
Gold fund
Pharma Sector
15. Which type of investment you find to be more profitable
Fixed Deposit
Mutual Fund
16. Reason for investing in Mutual Funds
Children Education
Retirement
House
Vacation Abroad
Other
17. Can Mutual Fund give higher returns when compared to any other investments
Yes
No

48. 39
18. Problems faced by investors while investing in Mutual Funds
Low Income
Unable to assess the market
Poor services of broker
Poor services by the company
Delay in selling units
19. How much money do you prefer to invest in Mutual Funds(Monthly)
Less than 5,000
5,000-10,000
10,000-20,000
20,000-30,000
More than 30,000
20. Do you find investing in Mutual Funds safe?
Strongly Agree
Agree
Neutral
Disagree
Strongly disagree
21. What according to you is the future of Mutual Funds
Very Good
Good
Average
Bad
Worse