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1

CHAPTER 1
INTRODUCTION
The term investment is used to describe the process of investing money in shares,
debentures, fixed deposits, gold, real assets, life policies, mutual funds, and money market
instruments
...
By
investing, an investor commits the present funds to one or more assets to be held for some time
in expectation of some future return in terms of interest or capital gain
...
In the present economic scenario, the option available to
them is different and the factor motivating the investors to invest is governed by their socioeconomic profile including expected return and risk tolerance
...
An attempt has been made in this study to identify the perceptual factors
which influence the investors to invest in mutual funds
...
Each of these investments has its own risk and return
features
...
Diversification refers to the process whereby an investor invests his funds in more than
one investment opportunity
...
All investors may not be in a position to undertake fundamental and technical
analysis before they decide about their investment options
...
Instead of investing directly, the investors particularly, small investors
may go for indirect investment through the mutual funds
...
In
almost all the capital markets throughout the world, mutual funds have gained a significant
position
...
Its buoyant growth leads to lower intermediation costs, more efficient financial markets,
and increased vibrancy of the capital markets and higher local ownership of financial assets
...
Thus, the industry can be one of the causative factors for a healthy economy
...
SEBI has played a vital role in regularizing the mutual fund
business
...
As of
now big challenge of mutual fund industry is to mount on investor awareness and to spread
further to the semi urban and rural areas
...

Investment is a commitment of funds made in the expectation of some positive return
...
Investment goals vary from person to person business to business
...
With objectives defying any range, it is
obvious that the products required will vary as well
...
Real assets are tangible, material thing
such as buildings, automobiles, and gold etc
...

MUTUAL FUNDS:
A mutual fund is an investment vehicle that pools in the monies of several investors, and
collectively invests this amount in either the equity market or the debt market, or both,
depending upon the fund’s objective
...

INVESTING IN MUTUAL FUNDS:
Diversification is a major advantage of investment through Mutual Funds, as
investors get the benefit of various instruments through a single avenue
...




Mutual Funds offer flexibility in options and choice of schemes to match individual
needs
...




The Mutual Fund industry is very well regulated by SEBI

3

Mutual Funds offer tax benefits
...
Investments in the growth option will be subject to
long term or short-term capital gains tax as applicable
...
Professional Fund Management
2
...
Diversification
4
...
Cost effectiveness
6
...
Tax breaks
8
...

There are wide varieties of mutual fund schemes and are classified on the basis of
its structure and its investment objective
...
These
do not have a fixed maturity
...
The key feature of this scheme is liquidity
...
Investors can invest in
the scheme at the time of the initial public issue and thereafter they can buy or sell the units of
the scheme on the stock exchanges where they are listed
...


4

BASED ON INVESTMENT OBJECTIVE
GROWTH FUNDS
The aim of growth funds is to provide capital appreciation over the medium to longterm
...

The fund may declare dividend but the main objective is only capital appreciation
...
These funds target low risk
and stable income to the investors
...

BALANCED FUNDS
These funds, as the name suggests, are a mix of both equity and debt funds
...

The aim at providing a balanced mix of capital appreciation through investments in equities
coupled with investments in stable instruments like bonds etc
...
These funds are considered to be at the lowest rung in the
hierarchy of risks
...
1 COMPANY PROFILE
Reliance Mutual Fund ('RMF'/ 'Mutual Fund') is one of India’s leading Mutual Funds, with
Average Assets Under Management (AAUM) of Rs
...
65 and 70
...
(AAUM and investor count as of Jan - Mar '12 ) Source :
http://www
...
com/
Reliance Mutual Fund, a part of the Reliance Group, is one of the fastest growing mutual
funds in India
...
Reliance Mutual Fund
constantly endeavors to launch innovative products and customer service initiatives to increase
value to investors
...
RCAM a subsidiary of Reliance Capital Limited, which holds 92
...

Reliance Capital Ltd
...
Reliance Capital Ltd
...

Sponsor

: Reliance Capital Limited

Trustee

: Reliance Capital Trustee Co
...


Vision Statement
To be a globally respected wealth creator with an emphasis on customer care and a
culture of good corporate governance
...

However, an imperative part of growth and visibility is adherence to good conduct in the
marketplace
...

Management:
The management at Reliance Capital Asset Management Limited is committed to good
corporate governance, which includes transparency and timely dissemination of information to
its investors and unit holders
...

Employees:
Reliance Capital Asset Management Limited has at present, a code of conduct for all its
officers
...
The
management believes in the principles of propriety and utmost care is taken while handling
public money, making proper and adequate disclosures
...
They are taken through a well-designed HR program, conducted to impart
work ethics, the Code of Conduct, information security, Internet and e-mail usage and a host of
other issues
...
RCAM gives top priority to compliance in true letter and spirit,
fully understanding its fiduciary responsibilities
...
80% of the paid-up capital of

7

Reliance Capital Asset Management Limited, the balance paid up capital being held by minority
shareholders
...

The promoter of RCL is AAA Enterprises Private Limited
...

Reliance Capital Limited has interests in asset management and mutual funds, life and
non-life insurance, private equity and proprietary investments, stock broking and other activities
in the financial services sector
...
in crores) 2009-10 2008-09 2007-08
Net Worth 6885
...
30 5927
...
62 2974
...
79
Profit After Tax 339
...
02 1025
...
Reliance Capital Limited is
responsible for discharging its functions and responsibilities towards the Fund in accordance
with the Securities and Exchange Board of India (SEBI) Regulations
...

AMC:
About Reliance Capital Asset Management Limited
...
RCAM has been
appointed as the Asset Management company of Reliance Mutual Fund by the Trustees of
Reliance Mutual Fund vide Investment Management Agreement (IMA) dated May 12, 1995 and
executed between Reliance Capital Trustee Co
...

Pursuant to this IMA, RCAM is acting as the Investment Manager of the Mutual Fund
...
1,228
...
RCAM is also registered as a Portfolio Manager
vide SEBI Registration Number PM/INP000000423 and renewed with effect from August1,
2009
...

RCAM has ensured that key personnel of the AMC, the systems, back office, bank and
securities accounts are segregated activity wise and there exists systems to prohibit access to
inside information of various activities
...
However,
there is no conflict of interest between various business activities carried on by RCAM
...
The name of Reliance Capital Mutual
Fund was changed to Reliance Mutual Fund effective 11th March 2004 vide SEBI's letter no
...
Reliance Mutual Fund was formed to launch
various schemes under which units are issued to the Public with a view to contribute to the
capital market and to provide investors the opportunities to make investments in diversified
securities
...




To deploy Funds thus rose so as to help the Unit holders earn reasonable returns on
their savings
...


9
Awards and achievements:
CNBC TV18 - CRISIL Mutual Fund of the Year Award for 2009: Reliance Mutual Fund
has won the ‘CNBC TV18 - CRISIL Mutual Fund of the Year’ Award in the Category – Mutual
Fund House of the Year (Awarded by CRISIL Fund Services, CRISIL Limited)
...
Fund Houses winning at least one award for
their schemes in the category level awards for 2009 were eligible to be in contention for the
award
...
The individual CRISIL CPR ranks for their schemes were
aggregated on a weighted average basis to arrive at the final ranks for fund houses
...
The award has
been granted for the year 2009 and will be in vogue till the announcement of the award for the
next year in the same category
...
crisilfundservices
...


Past

performance

is

no

guarantee

Rankings and Award Source: CRISIL Fund Services, CRISIL Limited
...


10

1
...

 To find out the factors which influencing the investors to prefer the investment in mutual
funds
...


1
...
it involves understanding the basic concept of mutual fund, various
concepts of mutual fund, various schemes of mutual fund, investment alternatives
...

 The analysis would help how much importance investors giving to the mutual funds
comparing to the other investments
...
4 NEED OF THE STUDY:
 This study gives information about mutual fund industry and as well as awareness level
among the people for mutual funds
...

 This study facilitates the general people who can understand the importance and explore
the new option for investment in the mutual funds

11

1
...

 The study is limited to 150 respondents of the selected city of Chennai
...

 It is assumed that respondents are true and honest in expressing their views and have
filled the questionnaire honestly and without any bias
...


12

CHAPTER 2
REVIEW OF LITERATURE
Investors are generally more careful while making investment decision and presence of
rationality in every investor demands higher return at minimum risk but when markets are
efficient it is not possible to gain abnormal returns
...

2
...
Kandavel
*Asst
...


Mutual funds have emerged as an important segment of financial markets
and so far have delivered value to the investors
...
But no industry can flourish without a proper regulatory mechanism in the
place
...
Since, the need of study has been aroused in order to see the factors
influencing the retail investors to prefer investment regarding the mutual funds in Puducherry
...

In order to study the factors influencing the retail investors to prefer investment in mutual funds
in Puducherry, chi square test, analysis of one-way variance, student t-test, analysis of coefficient of variation, multiple regression analysis, and percentage analysis have been
employed
...
The present study looks at the small investors purchase behavior does not have a
high level of coherence due to the influence of different purchase factors
...


13

2
...
Mutual Funds have become an important portal for the small investors
...
The study reveals that 1) The motivational factors
to invest in mutual funds are Portfolio diversification, Risk minimization and greater tax benefits;
2) Lack of knowledge is the primary reason for not investing in mutual fund
...
Rajeshwari TR and Rama moorthy VE
(2002) studied the financial behavior and factors influencing fund/scheme selection of retail
investors by conducting factor analysis using principal component analysis, to identify the
investors underlying fund scheme selection criteria, so as to group them into specific market
segment for designing of the appropriate marketing strategy
...
The new marketing
philosophy and strategies place special emphasis on recognition of customer needs in an effort
to provide high level of quality services (Harrison, 2000)
...
3 Learn how to invest in Mutual Funds
Mustafa Soleimanzadeh
Mustafa Soleimanzadeh in his article, “Learn how to invest in Mutual Funds” had
discussed about the risk and return in mutual funds
...
Mutual funds try to reduce their risk by investing in a diversified group of
individual stocks, bonds, or other securities
...
Mutual funds are
great for funding retirement plans and investors that don't have the time or energy to consider
individual stocks
...
He stated that the equity funds involve just common stock
investments
...
Fixed income
funds are government and corporate securities
...
Balanced mutual funds are a combination of bonds

14

and stocks
...
(2007)
Mutual fund managers have to use various investment styles depending upon investor’s
requirement
...
1992)
...
A
common investor may expect that mutual fund should option strategies that have been
documented to produce superior returns in the past instead they follow to select portfolios that
don’t deviate markedly from market benchmarks
...
4 Investors’ Preference towards Mutual Funds in Coimbatore City
A
...

R
...
He can invest in Bank Deposits, Corporate Debentures, and
Bonds where there is low risk but low return
...
If the invests in Index
Funds, they foregoes management risk, because these funds do not employ managers
...
The study aims at finding out the
attitude of the investors towards investment in mutual funds in Coimbatore city
...
The
secondary data were collected from the books, records and journals
...

2
...
An Analysis of Investors' Attitude towards Tax Saving Mutual Funds in India
N
...
Santhi, Assistant Professor, Department of Business Administration, KSR College
of Engineering, Tiruchengode
...
Balanaga Gurunathan, Professor, Department of Management Studies, KSR College of
Technology, Tiruchengode
...
Mutual fund is supposed to be a better avenue for the individual investor
...
This study makes an attempt to
analyze the investor’s attitude towards their investment on Tax saving mutual funds
...
The
dynamic relationship between investors’ biographical information and their behavior has been
examined by using relevant statistical techniques
...
The study finds that majority of the investor
doesn’t have the knowledge on schemes and awareness on controlling authorities and they are
satisfied with the overall benefits on Tax saving mutual funds
...

2
...
The
study aims at analysing the attitude of the investors towards UTI Mutual Funds
...
The sample size considered for the study was 100
wherein all the samples were investors of UTI Mutual Funds in Coonoor
...

The analysis was divided into 2 phases which are Personal Factors and Investment Factors
...
The investors mainly look into the returns earned from the investment
...
Based
on the analysis Suggestions for improvement are provided
...
7 Perceptions of investors, brokers and fund managers on the indian mutual fund
industry
Financial system comprises of financial institutions, services, market and instruments
...
Investing in financial securities
is a complex one involving knowledge of various investment tools, terms, concepts, strategies
and process
...
Investor has to use his intellect, which is an art
to acquire by learning and experience
...
The financial securities include ownership
securities (like shares, mutual fund units) and creditorship securities (like debentures, bonds)
...
Investment decisions relating
to ownership securities involve planning of investment strategies according to the extent of
diversification desired by individuals
...
In India,
Mutual fund industry is an organised financial system, accessible to individual investors having
varied needs and options
...
Schedules
were used to collect data from fund managers on mutual funds
...
8 Investors Preference for Investment in Mutual Funds: An Empirical Evidence
Since interest rates on investments like PPF, NSC, bank deposits, etc
...
One of the alternatives is to invest in capital markets through mutual funds
...
Considering the state of mind of
the general investor, this article figures out: (i) the preference attached to different investment
avenues by the investors; (ii) the preference of Mutual Funds schemes over others for
investment; (iii) the source from which the investor gets information about Mutual Funds; and
(iv) the experience with regard to returns from mutual funds
...
Hence, the basic psyche of an Indian investor, who still prefers to keep his savings in
the form of yellow metal, is indicated
...
A majority of the investors based their investment
decision on the advice of brokers, professionals and financial advisors
...

The masses in India generally prefer to save in those instruments that are safe
...
An average small investor generally advocates the

17

phenomenon of risk aversity
...

2
...
A mutual fund is a special type of institution, a trust or an investment
company which acts as an investment intermediary and invests the savings of large number of
people to the corporate securities in such a way that investors get steady returns, capital
appreciation and a low risk
...
The concept of 'Mutual Fund' is a new feature in Indian capital
market but not to international capital markets
...
At the retail level, investors are unique and are a highly
heterogeneous group
...

Currently there are large numbers of schemes available and asset management companies
(AMCs) compete against one another by launching new products or repositioning old ones
...
With this
significance an attempt is made to study the attitude of mutual fund investors
...
10 A study on investors’ attitude towards mutual funds as an investment option Dr
...

In this paper, structure of mutual fund, operations of mutual fund, comparison between
investment in mutual fund and bank and calculation of NAV etc
...
In this
paper, the impacts of various demographic factors on investors’ attitude towards mutual fund
have been studied
...
Key words:
Hypothesis, Chi-square () test, Rank, Weighted score and Scaling
...
It may be understood
as a science of study where research is done scientifically
...


3
...
Descriptive research, also known as
statistical research, describes data and characteristics about the population or phenomenon
being studied
...


3
...
2
...

3
...
1 Secondary data:
Secondary data were collected from books, journals, websites and magazines
...
3 Sampling design:
Collection of data from a sample of units that have been selected from the target universe
with the intention that they may be representative of that universe
...



Sample size taken for this study is 150
...
Accidental sampling (sometimes known as
grab, convenience or opportunity sampling) is a type of non-probability sampling which
involves the sample being drawn from that part of the population which is close to hand
...
It may be
through meeting the person or including a person in the sample when one meets them
or chosen by finding them through technological means such as the internet or through
phone
...
4 Statistical tool for analysis:
3
...
1 Percentage analysis:
Percentage method refers to a specified kind which is used in making comparison
between two or more series of data
...
It
compares the relative items
...

Percentage =

Number of respondents x 100
Total no of respondents

3
...
2 Cross tabulation:
Cross tabulation tables (contingency tables) display the relationship between two or
more categorical (nominal or ordinal) variables
...

The structure of the table and whether categories are ordered determine what test or measure
to use
...
4
...
This goodness-of-fit test compares the observed and expected frequencies in
each category to test that all categories contain the same proportion of values or test that each
category contains a user-specified proportion of values
...
The chi-square test for independence examines whether knowing the value of
one variable helps to estimate the value of another variable
...


20

CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
4
...
0
38
...
0
Table 4
...
0
38
...
0

Chart showing classification of respondents based on Gender

Chart 4
...


Cumulative
Percent
62
...
0

21

Table showing classification of respondents based on Occupation

Valid

STUDENT
GOVT
...
EMP
BUSINESS
RETIRED
Total

Frequency
12
64
59
11
4
150

Percent Valid Percent
8
...
0
42
...
7
39
...
3
7
...
3
2
...
7
100
...
0
Table 4
...
2
INTERPRETATION:
 8% are the students
 42
...
3% are the private employees
 7
...
7% are the retired peoples
...
0
50
...
0
97
...
0

22

Table showing classification of respondents based on Age

Valid

< 20

Frequency
5

21 TO 40
41 TO 60
> 60
Total

98
46
1
150

Percent Valid Percent
3
...
3
65
...
7

...
0
Table 4
...
3
INTERPRETATION:
 3
...

 65
...
7% are at the age 41 to 60
 0
...


65
...
7

...
0

Cumulative
Percent
3
...
7
99
...
0

23

Table showing classification of respondents based on Annual income

Valid

< 1LAC
1 TO 3LAC
3 TO 5LAC
>5LAC
Total

Frequency
9
92
31
18
150

Percent Valid Percent
6
...
0
61
...
3
20
...
7
12
...
0
100
...
0
Table 4
...
4
INTERPRETATION:
 6% of the respondents earn less than 1lakh annually
...
3% earn 1 to 3lakh
...
7% earn 3 to 5lakh
 12% earn above 5lakh

Cumulative
Percent
6
...
3
88
...
0

24

Table showing classification of respondents based on Amount invested
Cumulative
Frequency
Valid

Percent

Valid Percent

Percent

<10000

66

44
...
0

44
...
0

56
...
0

150

100
...
0

Total

Table 4
...
5
INTERPRETATION:
 44% of the respondents are invested less than 10000
...
3
21
...
7
10
...
0
32
...
3
17
...
7
150
100
...
6

18
...
0

Cumulative
Percent
21
...
0
64
...
3
100
...
6
INTERPRETATION:
 21
...

 10
...
3% are invested for vacation abroad
...
7% are invested for other purposes
...
7
4
...
7
68
...
7
26
...
0
100
...
7

Cumulative
Percent
4
...
3
100
...
7
INTERPRETATION:
 4
...
7% are invested one to 3 year
...
7% are invested above 5 year
...
7
48
...
3
29
...
3
13
...
7
8
...
0
100
...
8

Cumulative
Percent
48
...
0
91
...
0

Chart showing classification of respondents based on reason for choosing mutual funds

Chart 4
...
7% are chosen mutual funds for savings
...
3% are chosen mutual funds for returns
...
3% are chosen mutual funds for diversification
...
7% are chosen mutual funds for risk tolerance
...


Valid

1
2
3
>3
Total

Frequency
65
54
24
7
150

Percent Valid Percent
43
...
3
36
...
0
16
...
0
4
...
7
100
...
0
Table 4
...
3
79
...
3
100
...


Chart 4
...
3% of the respondents invested in one scheme
...

 16%of the respondents invested in 3 schemes
...
7% of the respondents invested in more than 3 schemes
...


Valid

REPUTATION
GOOD RETURNS
EXPERT ADVICE
OTHER
Total

Frequency
27
88
33
2
150

Percent Valid Percent
18
...
0
58
...
7
22
...
0
1
...
3
100
...
0

Cumulative
Percent
18
...
7
98
...
0

Table 4
...


Chart 4
...

 58
...

 22% chosen for the expert advice
...
3% chosen for the other reasons
...
7
36
...
0
60
...
3
3
...
0
100
...
7
96
...
0

Table 4
...
11
INTERPRETATION:
 36
...

 60
...

 3
...


31

Table showing classification of respondents based on how frequent they monitor performance of
investment

Vali M
d
Q
HY
Y
N
Total

Frequency Percent Valid Percent
109
72
...
7
18
12
...
0
16
10
...
7
6
4
...
0
1

...
7
150
100
...
0
Table 4
...
7
84
...
3
99
...
0

Chart showing classification of respondents based on how frequent they monitor performance of
investment

Chart 4
...
7% of the respondents are monitoring their performance of the investments monthly
...

 10
...

 4% of the respondents are monitoring yearly
...
7% of the respondents are never monitoring their performance
...


Valid

M
Q
HY
Y
N
Total

Frequency
77
37
21
7
8
150

Percent Valid Percent
51
...
3
24
...
7
14
...
0
4
...
7
5
...
3
100
...
0
Table 4
...
3
76
...
0
94
...
0

Chart showing classification of respondents based on how frequent they monitor risk factors
...
13
INTERPRETATION:
 51
...

 24
...

 14% of the respondents are monitoring half yearly
...
7% of the respondents are monitoring yearly
...
3% of the respondents are never monitor their risk factor
...
3
59
...
3
17
...
0
12
...
3
9
...
0
2
...
0
100
...
14

Cumulative
Percent
59
...
7
88
...
0
100
...
14
INTERPRETATION:
 59
...

 17
...

 12% of the respondents are monitoring half yearly
...
3% of the respondents are monitoring yearly
...


34

Table showing classification of respondents based on how frequent they monitor portfolio of
fund manager

Valid

M
Q
HY
Y
N
Total

Frequency
68
31
25
16
10
150

Percent Valid Percent
45
...
3
20
...
7
16
...
7
10
...
7
6
...
7
100
...
0
Table 4
...
3
66
...
7
93
...
0

Chart showing classification of respondents based on how frequent they monitor portfolio of
fund manager

Chart 4
...
3% of the respondents are monitoring their portfolio of fund manager monthly
...
7% of the respondents are monitoring quarterly
...
7% of the respondents are monitoring half yearly
...
7% of the respondents are monitoring yearly
...
7% of the respondents are never monitoring their portfolio of fund manager
...
2 BIVARIATE - CHI SQUARE:
Null hypothesis H0: There is no significance relationship between gender & preference for
investment option
...

Table showing crosstab between gender and preference for investment option

GENDER

MALE
FEMALE

Total

OPT
...
16

Total
93
57
150

Table showing relationship between gender and preference for investment option

Pearson Chi-Square
Likelihood Ratio
Linear-by-Linear
Association
N of Valid Cases

Value
6
...
390
6
...
Sig
...
041

...
013

150
Table 4
...


INTERPRETATION:
 27 males out of 93 and 28 females out of 57 prefer the mutual fund investments for
dividends
...

 62 males out of 93 and 28 females out of 57 prefer the mutual fund investments for
growth
...
So women’s only equally prefer
the dividends and growth for their investments
...

 From the chi square test table we infer that reject the h0
...


36

Null hypothesis H0: There is no significance relationship between gender & respondents
purpose for investments
...


Table showing crosstab of gender and purpose for investment

INV
...
18

Table showing relationship between gender and purpose for investment

Value
17
...
901
8
...
Sig
...
002

...
004

Pearson Chi-Square
4
Likelihood Ratio
4
Linear-by-Linear
1
Association
N of Valid Cases
150
a
...
0%) have expected count less than 5
...
08
...
19

16
28

57
150

37

INTERPRETATION:
 26 males out of 93 and 6 females out of 57 are purpose to invest for their child
education
...

 13 males out of 93 and 3 females out of 57 are purpose to invest for their retirement
...

Therefore females mostly purpose the investments for house
...

 12 males out of 93 and 16 females out of 57 are purpose to invest for other reasons and
other purposes
...
and accept h1
...


38

Null hypothesis H0: There is no significance relationship between age & respondents purpose
for investments
...


Table showing crosstab of age and purpose for investment

INV
...
20

VACATION
ABROAD
1
17
8
0
26

OTHER
0
21
7
0
28

Total
5
98
46
1
150

Table showing relationship between age and purpose for investment
Value
7
...
638

...
Sig
...
842

...
464

Pearson Chi-Square
12
Likelihood Ratio
12
Linear-by-Linear
1
Association
N of Valid Cases
150
a
...
0%) have expected count less than 5
...
11
...
21
INTERPRETATION:

 Less than 20 age 2 respondents out of 5 and 21 to 40 age 17 respondents out of 98 and
41 to 60 age 13 respondents out of 46 are invest for the child education
...

 21 to 40 age 11 respondents out of 98 and 41 to 60 age 5 respondents out of 46 are
invest for retirement
...


39
 Less than 20 age 2 respondents out of 5 and 21 to 40 age 32 respondents out of 98 and
41 to 60 age 13 respondents out of 46 and above 60 age 1 respondents are invest for
house
...
And there are
no respondents for this option above 60 ages
...
And there is no
significance relationship between age and respondents purpose for investments
...

Alternative hypothesis H1: There is significance relationship between age & respondents
preferring for mutual funds
...
MF
returns
diversification risk tolerance
1
2
1
32
14
6
11
4
5
0
0
1
44
20
13
Table 4
...
209a
11
...
265

df

Asymp
...
(2sided)
9

...
222
1

...
9 cells (56
...
The minimum
expected count is
...

Table 4
...
And there
are no respondent from above 60 ages
...
And there
are no respondent from above 60 ages
...
And
there are no respondent from above 60 ages
...

 From the chi square test table we infer that reject h0
...
so there is significance
relationship between age and respondent preference for mutual funds
...
24

INTERPRETATION:

In case of the factors responsible for investing in mutual funds is concerned tax benefits
has got first rank, savings has got second rank, portfolio management , balanced risk and
potential returns have been ranked third, fourth and fifth respectively
...
1 FINDINGS:
 The Study was aimed at identifying the level of attitude towards the mutual funds
...

 There is significance relationship is found between the gender and respondents purpose
for investments
...
and females
are mostly purpose to invest for house and other purposes
...

 There is significance relationship found between age and respondents preference for
mutual funds
...

And next they prefer the mutual funds for diversifications and risk tolerance
...


44

5
...
Therefore the mutual funds should improve the scope of
dividends and growth of the mutual funds
...
The target segment can be broadly divided into institutional segment and retail
investor segment
...
As far as retail investors are
concerned, they can be in turn divided into various segments such as young families
with small or no children, middle-aged people saving for retirement and retired people
looking for steady income
...
By proper segmentation and by targeting the right product to the right
customer, mutual fund companies can hope to win the confidence of their customers and
own them for a lifetime
...



Investors usually review a range of information before purchasing mutual fund shares
...
They most often turn to professional financial advisers for
information prior to purchasing fund shares
...
The Internet, with its
interactive capabilities, is an effective vehicle for communicating mutual fund information
to retail investors

45

5
...
The small investors purchase behavior does not have a high level
...
Presently, more and more funds are entering the industry
and their survival depends on strategic marketing choices of mutual fund companies, to survive
and thrive in this highly promising industry, in the face of such cut throat competition
...
Thus the study provokes the authority to
take some positive measures for expanding the scope of mutual funds investment
...
An Analysis of Behaviour of Investors in India, ICFAI Journal of
Behavioural Finance
...
H
...




Singh Jaspal and Chander Subhash (2004)
...


WEBSITES:

http://www
...
com/mf/knowledge/industry
...
appuonline
...
html
http://www
...
com/articles/mutualfund/05/MFhistory
...
mutualfundsresource
...
reliancemutual

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