Indian Equity Market

Fund Selection Behavior
Executive Summary
The Indian equity market has gained significantly during the last one year and mutual
funds are not left far behind. Both the avenues have created wealth for investors. But the
equity market has attracted much more attention than the mutual funds market. The reason
behind this is that in India investment in the equity market has been there since long but the
mutual fund market is still growing. For the creation of wealth through this avenue a proper
understanding of mutual funds is a must.
A mutual fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through these
investments and the capital appreciation realized is shared by its unit holders in proportion to
the number of units owned by them. Thus a mutual fund is the most suitable investment for
the common man as it offers an opportunity to invest in a diversified, professionally managed
basket of securities at a relatively low cost.
Mutual funds have opened up new vistas to millions of small investors by virtually
taking investment to their doorstep. In India, a small investor generally goes for bank returns.
He has limited access to price sensitive information and if available, may not be able to
comprehend publicly available information couched in technical and legal jargons. He finds
himself to be an odd man out in the investment game. Mutual funds have come as much
needed help to these investors. MF’s are looked upon by individual investors as financial
intermediaries wherein portfolio managers process information, identify investment
opportunities, formulate investment strategies, invest funds and monitor progress at a very
Kristu Jayanti College 1

low cost. Thus, the success of MF’s is essentially the result of the combined efforts of
competent fund managers and alert investors. A competent fund manager should analyze
investor behavior and understand their needs and expectations to gear up the performance to
meet investor requirements.
Consumer behavior from the marketing world and financial economics has brought
together to the surface an exciting area for study and research: Behavioral Finance. The
realization that this is a serious subject is, however barely dawning. Analysts seem to treat
financial markets as an aggregate of statistical observations, technical and fundamental
analysis. A rich view of research waits this sophisticated understanding of how financial
markets are also affected by the “financial behavior” of investors. With the reforms of
industrial policy, public sector and financial sector and the many developments in the Indian
money market and capital market, mutual funds, which has become an important portal for
the small investors, is also influenced by their financial behavior. Hence this study is an
attempt to examine the related aspects of the fund selection behavior of individual investors
towards mutual funds, in the city of Bangalore.

CHAPTER 1
Introduction
The Indian capital market has been growing tremendously with the reforms in
industrial policy, reforms in public and financial sector, and new economic policies of
liberalization, deregulation and restructuring. The Indian economy has opened up and many
developments have been taking place in the Indian capital market and money market with the
help of financial system and financial institutions or intermediaries which foster savings and
channel them to their most efficient use. One such financial intermediary who has played a
significant role in the development and growth of capital markets is Mutual Fund (MF).
The concept of MF’s has been on the financial landscape for long, though in a
primitive form. The story of mutual fund industry in India started in 1963 with the formation
of the Unit Trust of India, an initiative of the Government of India and Reserve Bank. The
launching of innovative schemes in India has been rather slow due to the prevailing
investment psychology and infrastructural inadequacies; risk-averse investors are interested
in schemes which involve tolerable capital risk and return over bank deposit. This fact has
restricted the launching of more risky products in the Indian capital market. But this
objective of the MF industry has changed over the decades. For many years, funds were
more of a service than a product, the service being professional money management.
However, in the last 15 years, MF’s have evolved to be a product. The term ‘product’ is used
because MF is not merely to park investor’s savings but its schemes are ‘tailor-made’ to cater
to investors needs, whatever their age, financial position, risk tolerance and return
expectations might be. This issue of combing service and product will be important one for
the next decade.
There are more than 30 mutual funds in India offering 550 schemes, managed by
various types of institutions like banks, the Unit Trust of India and international investment

banking firms. More than 10 million mutual fund investors are there in India. However,
there is a very limited knowledge of investment decision-making processes and consumer
behavior, as applied to financial assets and service.
There is an obvious link between financial investment choices and consumer

behavior, suggesting that research on consumer behavior types may prove useful in
increasing our understanding of what is an extremely complex financial marketplace in
which significant ‘purchase’ decisions are made. An investment is a significant purchase
decision in a market where choice is expanding. Despite this, there has been very little
application of both consumer behavior theory and research techniques in the finance area.
Presently more and more funds are entering the industry and their survival depends
on strategic marketing choices of mutual funds companies, to survive and thrive in this
highly promising industry, in the face of such cut throat competition. In addition, the
availability of more savings instruments with varied risk-return combination would make the
investors more alert and choosy. Running a successful MF requires complete understanding
of the peculiarities of the Indian Stock Market and also the psyche of the small investor.
Under such a situation, the present exploratory study is an attempt to understand the financial
behavior of investors in connection with scheme preference and selection.
India has a large untapped market in urban areas besides the virgin markets in semi-
urban and rural areas. This market potential can be trapped by scrutinizing investor behavior
to identify their expectations and articulate investor’s own situation and risk preference and
then apply to an investment strategy that combines the usual four: cash and equivalents,
Government-backed bonds, debt, and equity.
The present study adds to this area of study by an investigation using techniques from

consumer behavior research. However, in the financial literature there is no clear model,
this explains the influence of “perception” and “beliefs” on “expectations” and “decision
making”. Though the MF industry has been in existence since 1964, the aspect of investor
behavior with specific reference to MF’s has not been given much importance. The
expectations of investor play a vital role in the financial markets. They influence the price of
the securities, the volume traded and various other financial operations in actual practice.
The study was conducted among the investing public in the city of Bangalore to
identify the factors considered in the choice of mutual funds. While there are so many factors
that can drive an investor’s choice of a specific scheme, some major factors like brand name,
liquidity, past performance etc, were taken into consideration for the purpose of the study.

CHAPTER 2
Research Design
The Indian economy has opened up and many developments have taken place in the
Indian capital market and money market. Mutual Funds have played a significant role in the
development and growth of capital markets.
The story of Mutual Funds started in India in 1963. For many years, funds were more
of a service, however, in the last 15 years; Mutual Funds have evolved to be a product.
Mutual Funds have opened up new vistas to millions of small investors by taking investment
to their doorsteps.
Mutual Funds are looked upon by individual investors as financial intermediaries
wherein portfolio managers process information, identify investment opportunities, invest
funds and monitor progress at a very low cost.
Statement of the problem
In India, though the Mutual Fund industry has been in existence for a long time, no
major study has been done regarding the aspect of investor behavior with respect to Mutual
Funds. The expectations of investors are influenced by their perception and humans generally
relate perception to action. While there are so many factors that can drive an investor’s
choice of a specific scheme, some major factors like brand name, liquidity, past performance
etc, were taken into consideration for the purpose of the study. Much of economic and
financial theory is based on the notion that individuals act rationally and consider all
available information in the decision making process. Since the competition in the market is
very high, it is the responsibility of the fund manager to analyze investor behavior and

understand their needs and expectations to gear up the performance to meet investor
requirements and also to fight competition. Therefore, this study helps to find out the
different aspects of investor behavior.
Need for the study
The study has the following objectives:

1. To identify the preferred savings avenue among the investors
2. To assess Mutual Fund selection behavior among the investors.
3. To assess the fund / scheme preference of the investors.
4. To perceive the preferred communication mode of the investors.
5. To identify the sources influencing the selection decision of the investors.
6. To understand the fund qualities that influences the selection of Mutual Funds.
Review of literature
The following studies were conducted earlier:
Foreign Studies:
Ippolito (1992) and Bogle (1992) reported that fund selection by investors is based on
past performance of the funds, and money flows into winning funds more rapidly than they
flow out of losing funds.
Goetzman (1993) and Grubber (1996) studied the ability of the investors to select
funds and found evidence to support selection ability among active fund investors.
Malhotra and Robert (1997) reported that the preoccupation of MF investors using
performance evaluation as selection criteria is misguided because of volatility of returns.

This may be due to superior management or just good luck; it is difficult to determine. The
findings of Ferris and Chance (1987 and 1991) are consistent with the findings of Malhotra
and Robert (1997).
Lu Zheng (1998) examined the fund selection ability of MF investors and found that
the investor’s decisions are based on short-term future performance and investors use fund-
specific information in their selection decision.
Source:www.google.com/researchstudies/behavioral financeforeignstudies
Indian studies
Vidyashankar (1990), Agrawal GD (1992), Gupta LC (1993) Atmaramani (1996),

Madhusudan (1996) and others have conducted extensive research regarding investor
expectations, protection awareness and fund selection behavior.
Gupta LC (19193) conducted a household investor survey with the objective to

provide data on investor preferences of MF’s and other financial assets.
Madhusudhan V Jambodekar (`1996) conducted a study to assess the awareness of

MF’s among investors, to identify the information sources influencing the buyer decision and
the factors influencing the choice of a particular fund.
Sujit Sikdar and Amrit Pal Singh (1996) carried out a survey with a objective to
understand the behavioral aspects of the investors of the North Eastern region towards equity
and MF’s investment portfolio. The survey revealed that the salaried and self-employed
formed the major investors in MF’s primarily due to tax concessions.. UTI and SBI schemes
were popular in that part of the country then and other funds had not proved to be a big hit
during the time when the survey was done.

Raja Rajan (1997, 1998) high lightened segmentation of investors on the basis of their
characteristics, investment size, and the relationship between stage in life cycle of the
investors and their investment pattern.
Syama Sunder (1998) conducted a survey to get an insight into the MF operations of
private institutions with special reference to Khothari Pioneer. The survey revealed that the
awareness about MF concept was poor during that time in small cities like Vishakapatnam.
Agents play a vital role in spreading the MF culture: open-end schemes were much preferred
then; age and income are the two important determinants in the selection of fund/scheme;
brand image and return are their prime considerations.
Source: ICFAI Journal of Behavioral Finance, Vol III
Research Methodology
The study mainly deals with the financial behavior of investors towards Mutual Funds
in Bangalore. The required data would be collected through a questionnaire administered on
a simple random and judgment sample of 100 educated investors in mutual funds.
Limitations of the study
1. The sample size of 100 may not adequately represent the national market.
2. Simple random and judgment sampling is due to time and financial constraints.
Scope of the study
1. To understand the perception of the investors towards Mutual Funds.

2. To study the selection behavior of investors with respect to Mutual Funds.

Chapter Scheme
Chapter 1: Introduction
Chapter 2: Research Design
Chapter 3: Profile of the Company/Organisation/System
Chapter 4: Analysis and Interpretation of data
Chapter 5: Summary of Findings, Conclusions and Recommendations.

CHAPTER 3
Profile of the Company/ Organization/ System
What is a Mutual Fund?
Mutual fund is a mechanism for pooling the resources by issuing units to the investors
and investing funds in securities in accordance with objectives as disclosed in offer
document.
Investments in securities are spread across a wide cross-section of industries and

sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may
not move in the same direction in the same proportion at the same time. Mutual fund issues
units to the investors in accordance with quantum of money invested by them. Investors of
mutual funds are known as unit holders.
The working of MF is illustrated in the form of a diagram
Investors
Passed back to Pool their money with
Returns Fund Manger
Generate Invests in
Securities
Source: www.amfiindia.com

Evolution and Growth of Mutual Funds
The Mutual Funds (MF) originated in UK and thereafter they crossed the border to
reach other destinations.. The concept of MF was indianized only in the later part of the
twentieth century in the year 1964 with its roots embedded into Unit Trust of India. The UTI
was the lone concern in the field of mutual fund till 1987, when two financial behemoths like
SBI and Canara Bank came with a big bang with an intention to nurture the concept. The
present status of the MF industry is mainly due to the major effort by these three progenitor
musketeers. In April 1992 the Government announced the setting of Money Market Mutual
Funds (MMMF) with the purpose of bringing money market instruments within the reach of
individuals. Scheduled commercial banks and public financial institutions are permitted to set
up MMMFs. The units of MMMF are specifically meant for individuals. With the ushering in
of financial sector reforms and Narasimham Committee recommendations, the private banks
were allowed to enter MF business in the year 1993. Narasimham Committee in their report
on financial sector reforms made the following recommendations:
• Creation of an appropriate regulatory framework to promote sound, orderly and

competitive growth of MF business.
• Creation of proper legal framework to govern the establishment and operation of
mutual funds.
• Equality treatment between various mutual funds including UTI in the area of tax
concessions.
Securities and Exchange Board of India (SEBI), which was formed after security
scam in 1992 was given regulatory powers to lay down guidelines, supervise, and regulate
the working of MF. The MF’s are formed by way of trusts I India. Since inception, they have
shown significant progress. MF’s function with the basic theory of trust. They have been
transparent in their financial statements and almost all funds are technology driven.

Association of Mutual Funds of India (AMFI) plays a pivotal role with much
proactive ness in promoting the MF sector. AMFI keeping in view the unethical practices and
cut-throat competition among the existing funds framed a code of ethics in 1997 which are to
be followed by the industry. AMFI has been instrumental in rendering investor education and
highlighting pros and cons o~ the investment decisions. Very often the MF’s influence the
volatile movements in stock market. They outperform the FIl’s and lead the market. In recent
days their record collection through new fund offers has entered the stock market, which has
been one of the major factors for the sky rocketing northward movement of major indices.
Industry Profile
The mutual fund industry in India started in 1963 with the formation of Unit
Trust of India, at the initiative of the Government of India and Reserve Bank the. The
history of mutual funds in India can be broadly divided into four distinct phases
First Phase – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It

was set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from
the RBI and the Industrial Development Bank of India (IDBI) took over the
regulatory and administrative control in place of RBI. The first scheme launched by
UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700 crores of assets
under management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)
1987 marked the entry of non- UTI, public sector mutual funds set up by
public sector banks and Life Insurance Corporation of India (LIC) and General
Insurance Corporation of India (GIC). SBI Mutual Fund was the first non- UTI
Mutual Fund established in June 1987 followed by Canbank Mutual Fund (Dec 87),
Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89),
Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its
mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At
the end of 1993, the mutual fund industry had assets under management of Rs.47,004
crores.
Third Phase – 1993-2003 (Entry of Private Sector Funds)
With the entry of private sector funds in 1993, a new era started in the Indian
mutual fund industry, giving the Indian investors a wider choice of fund families.
Also, 1993 was the year in which the first Mutual Fund Regulations came into being,
under which all mutual funds, except UTI were to be registered and governed. The
erstwhile Kothari Pioneer (now merged with Franklin Templeton) was the first private
sector mutual fund registered in July 1993. The 1993 SEBI (Mutual Fund)
Regulations were substituted by a more comprehensive and revised Mutual Fund
Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)
Regulations 1996. The number of mutual fund houses went on increasing, with many

foreign mutual funds setting up funds in India and also the industry have witnessed
several mergers and acquisitions. As at the end of January 2003, there were 33 mutual
funds with total assets of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44, 541
crores of assets under management was way ahead of other mutual funds.
Fourth Phase – since February 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI
was bifurcated into two separate entities. One is the Specified Undertaking of the Unit
Trust of India with assets under management of Rs.29,835 crores as at the end of
January 2003, representing broadly, the assets of US 64 scheme, assured return and
certain other schemes. The Specified Undertaking of Unit Trust of India, functioning
under an administrator and under the rules does not come under the purview of the
Mutual Fund Regulations. The second is the UTI Mutual Fund Ltd, sponsored by SBI,
PNB, BOB and LIC. It is registered with SEBI and functions under the Mutual Fund
Regulations. With the bifurcation of the erstwhile UTI which had in March 2000 more
than Rs.76, 000 crores of assets under management and with the setting mutual fund
industry has entered its current phase of consolidation and growth. As at the end of
October 31, 2003, there were 31 funds, which manage assets of Rs.126726 crores
under 386 schemes.
There has been a tremendous growth in the mutual fund industry in India,
attracting huge investments from investors within the country and abroad, however,
there is still a long way to go.

Graph 3.1
Growth in assets under management
The graph indicates the growth of assets over the years.

Source: www.amfiindia.com
Note:-
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of
the Unit Trust of India effective from February 2003. The Assets under management
of the Specified Undertaking of the Unit Trust of India has therefore been excluded
from the total assets of the industry as a whole from February 2003 onwards.

Mutual Fund Set up
A mutual fund is set up in the form of a trust, which has sponsor, trustees, Asset
Management Company (AMC) and custodian. The trust is established by a sponsor or more
than one sponsor who is like promoter of a company. The trustees of the mutual fund hold its
property for the benefit of the unit holders. Asset Management Company (AMC) approved
by SEBI manages the funds by making investments in various types of securities. Custodian,
who is registered with SEBI, holds the securities of various schemes of the fund in its
custody. The trustees are vested with the general power of superintendence and direction
over AMC. They monitor the performance and compliance of SEBI Regulations by the
mutual fund.
SEBI Regulations require that at least two thirds of the directors of trustee company
or board of trustees must be independent i.e. they should not be associated with the sponsors.
Also, 50% of the directors of AMC must be independent. All mutual funds are required to be
registered with SEBI before they launch any scheme.
Net Asset Value (NAV) of a scheme
The performance of a particular scheme of a mutual fund is denoted by Net Asset Value
(NAV). Mutual funds invest the money collected from the investors in securities markets. In
simple words, Net Asset Value is the market value of the securities held by the scheme. Since
market value of securities changes every day, NAV of a scheme also varies on day to day
basis. The NAV per unit is the market value of securities of a scheme divided by the total
number of units of the scheme on any particular date. For example, if the market value of
securities of a mutual fund scheme is Rs 200 lakhs and the mutual fund has issued 10 lakhs
units of Rs. 10 each to the investors, then the NAV per unit of the fund is Rs.20. NAV is
required to be disclosed by the mutual funds on a regular basis - daily or weekly - depending
on the type of scheme.

Different types of mutual fund schemes
Schemes according to Maturity Period
A mutual fund scheme can be classified into open-ended scheme or close-ended

scheme depending on its maturity period.
Open-ended Fund/ Scheme
An open-ended fund or scheme is one that is available for subscription and

repurchase on a continuous basis. These schemes do not have a fixed maturity period.
Investors can conveniently buy and sell units at Net Asset Value (NAV) related prices which
are declared on a daily basis. The key feature of open-end schemes is liquidity.
Close-ended Fund/ Scheme
A close-ended fund or scheme has a stipulated maturity period e.g. 5-7 years. The
fund is open for subscription only during a specified period at the time of launch of the
scheme. 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 the units
are listed. In order to provide an exit route to the investors, some close-ended funds give an
option of selling back the units to the mutual fund through periodic repurchase at NAV
related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided
to the investor i.e. either repurchase facility or through listing on stock exchanges. These
mutual funds schemes disclose NAV generally on weekly basis.
Interval Fund/Scheme
These funds combine the features of both open ended and close-ended funds wherein
the fund is close-ended for the first couple of years and open-ended thereafter. Some funds
allow fresh subscriptions and redemption at fixed times every year (say every six months) in

order to reduce the administrative aspects of daily entry or exit, yet providing reasonable
liquidity.
Schemes according to Investment Objective
A scheme can also be classified as growth scheme, income scheme, or balanced

scheme considering its investment objective. Such schemes may be open-ended or close-
ended schemes as described earlier. Such schemes may be classified mainly as follows:
Growth / Equity Oriented Scheme
The aim of growth funds is to provide capital appreciation over the medium to long-
term. Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risks. These schemes provide different options to the investors like
dividend option, capital appreciation, etc. and the investors may choose an option depending
on their preferences. The investors must indicate the option in the application form. The
mutual funds also allow the investors to change the options at a later date. Growth schemes
are good for investors having a long-term outlook seeking appreciation over a period of time.
Income / Debt Oriented Scheme
The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate debentures,
Government securities and money market instruments. Such funds are less risky compared to
equity schemes. These funds are not affected because of fluctuations in equity markets.
However, opportunities of capital appreciation are also limited in such funds. The NAVs of
such funds are affected because of change in interest rates in the country. If the interest rates
fall, NAV’s of such funds are likely to increase in the short run and vice versa. However,
long term investors may not bother about these fluctuations.

Balanced Fund
The aim of balanced funds is to provide both growth and regular income as such
schemes invest both in equities and fixed income securities in the proportion indicated in
their offer documents. These are appropriate for investors looking for moderate growth. They
generally invest 40-60% in equity and debt instruments. These funds are also affected
because of fluctuations in share prices in the stock markets. However, NAVs of such funds
are likely to be less volatile compared to pure equity funds.
Money Market or Liquid Fund
These funds are also income funds and their aim is to provide easy liquidity,
preservation of capital and moderate income. These schemes invest exclusively in safer
short-term instruments such as treasury bills, certificates of deposit, commercial paper and
inter-bank call money, government securities, etc. Returns on these schemes fluctuate much
less compared to other funds. These funds are appropriate for corporate and individual
investors as a means to park their surplus funds for short periods.
Tax saving schemes
These schemes offer tax rebates to the investors under specific provisions of
the Income Tax Act, 1961 as the Government offers tax incentives for investment in
specified avenues. E.g. Equity Linked Savings Schemes (ELSS). Pension schemes
launched by the mutual funds also offer tax benefits. These schemes are growth
oriented and invest pre-dominantly in equities. Their growth opportunities and risks
associated are like any equity-oriented scheme

Index Funds
Index Funds replicate the portfolio of a particular index such as the BSE Sensitive
index, S&P NSE 50 index (Nifty), etc these schemes invest in the securities in the same
weight age comprising of an index. NAVs of such schemes would rise or fall in accordance
with the rise or fall in the index, though not exactly by the same percentage due to some
factors known as "tracking error" in technical terms. Necessary disclosures in this regard are
made in the offer document of the mutual fund scheme.
Performance evaluation of MF
The performance evaluation of MF can be done through various parameters such as:
1. Portfolio Quality
2. Portfolio Concentration
3. Expenses Ratio
4. Portfolio Turnover Ratio
5. Size of the Fund
6. Cash Holding and Management
7. Investor Servicing.
Strengths of MF
Mutual Funds provide several benefits to investors. Some of them are:

1. Benefits retail investors as a source of saving with higher return.
2. The concept is based on ‘Drops make an Ocean’. So, it is a mutual act for common
benefit.

3. It is ‘Professionally Managed’.
4. There is flexibility of portfolio diversification.
5. There is diversification of risk as it contains small investors in one hand and
investment in basket of blue chip companies, gilt-edged securities, bonds, debt
instruments or indices.
6. There is a relative liquidity.
7. It is a small investor savvy, so it attracts investors in large numbers.
8. The entry and exit load is nominal. The administration expenses are also economical.
9. The MF is tax efficient, as in the year 19999 the government has fully exempted the
dividends of MF units in the hands of investors from tax obligations.
10. Various investment options are available in the hands of investors which may cater to
their specific needs, reinvestment option, dividend option, investment pattern such as
equity, debt, or balanced funds etc.
Weaknesses of MF
As it is the case with other investment vehicles, MF’s too are not free from certain
shortcomings. Some of them are:
1. It has no tailor-made schemes to suit to each individual retail investor.

2. No guarantee of returns.
3. No control over costs.
4. It has the drawback of the problem of managing large corpus.
5. Volatility of return depends on market conditions, which is subject to frequent
market volatility.
6. Most investment period is medium-term to long-term where expected return is
more. Money Market Mutual Funds scheme is for short period where return is not
lucrative and the instruments are less in number.

CHAPTER 4
Analysis and Interpretation of data
Profile of the respondents

The study was conducted by distributing questionnaires to 100 investors in Bangalore
city.
Table 4.1
The gender of the respondents
Gender Frequency
Male 63
Female 37
Total 100
Source: Primary Data
Analysis
This table shows that 63% of the respondents are males and only 37% are females.
Inference
Men are more interested in investing in the financial markets than women.

Table 4.2
The age in completed years of the respondents
Age Frequency
Below 30 44
31-40 32
41-50 8
Above 50 16
Total 100
Analysis
This table shows that 44% of the respondents are below the age of 35, 32% are
between 31 and 40, 16% are above 50 and only 8% are between the age group of 41-50.
Inference
The analysis gives a clear picture that the younger generations are keener in investing
in the recent upcoming debt instruments than the older ones. The respondents below the age
of 30 are more aware of the financial markets and are more interested in following the recent
trends in the financial markets.
Table 4.3

The academic Qualification of the respondents
Qualification Frequency
School Final 6
Graduate 37
Post Graduate 41
Professional Degree 16
Total 100
Analysis
This table shows that 37% of the respondents are graduates, 41% are post-graduates,
16% are professional degree holders and only 6% are school finals.
Inference
The analysis explains that most of the respondents are post-graduates followed by
graduates. This is so because the graduates and post-graduates are more aware of the
financial markets than the school final or professional degree holders as they are from the
commerce background. They keep in touch with the financial markets and are more aware of
the changing trends than those from the science background.
Table 4.4
The table showing the annual income of the respondents

Annual Income in Rs Frequency

Below 1,00,000 10
1,00,000-3,00,000 59
3,00,000-5,00,000 27
Above 5,00,000 4
Total 100
Analysis
The above table shows that 59% of the respondents have an annual income of
1,00,000-3,00,000, 27% have income between 3,00,000-5,00,000, 10% are below 1,00,000
and only 4% have income above 5,00,000.
Inference
The analysis shows that the maximum percent of respondents who invests have an
income of 1, 00,000-3, 00,000. This is because they are cautious investors and they want to
invest in such a way that they are able to get maximum returns from their investments.
Table 4.5
The media through which the respondents know about the MF’s
Media Frequency
Reference Groups 8
Newspapers 36

TV 45
Brokers 11
Total 100
Analysis
This table shows that 45% of the respondents know about the mutual funds through
TV, 36% through newspapers and the rest through reference groups and brokers.
Inference
It can be observed from the analysis that most of the respondents know about the
mutual funds through TV as it is the most attractive media of spreading information. The rest
of the respondents are aware of MF’s through newspapers because it is a media which
reaches out to every common man.
Table 4.6
The reason for selecting a specific type of scheme by investors.
Schemes Frequency Percentage

Growth schemes 49 49
Income schemes 37 37
Money market schemes 8 8
Tax Savings schemes 6 6
Total 100 100

Analysis
From the above table 49% of the investors like to go for growth schemes, 37% for
income schemes and the rest 14% for money market and tax-savings schemes.
Inference
The analysis indicates that most of the investors prefer growth schemes as it gives
them capital appreciation over a long period of time. Income schemes are preferred as they
give steady and regular income to the investors.
Graph 4.1
Graph showing the reason for selecting a specific type of scheme by investors

60
50
40 G ro w t h s c h e m e s
No.of Respondents
In c o m e s c h e m e s
30
M o n e y m a rk e t s c h e m e s
20 T a x S a vin g s s c h e m e s
10
0
1
T h e sc h e m e s i n M F 's
Table 4.7
The type of schemes generally preferred by investors.
Schemes Frequency Percentage

Open ended schemes 42 42
Close ended schemes 16 16
Interval schemes 42 42

Total 100 100

Analysis
This table shows that 42% of the respondents prefer open-ended as well as interval
schemes and only 16% prefer close ended schemes.
Inference
The analysis explains that most of the investors prefer open ended schemes as they
have no maturity period and gives liquidity. Interval schemes are equally preferred as it is a
combination of both open ended and close ended schemes.
Graph 4.2
Chart showing the type of schemes generally preferred by the investors

O pen ended s c hem es

C los e ended s c hem es
Interval s c hem es
Table 4.8
The reason for investing in mutual funds.

Reasons Frequency Percentage

Safety 17 17
Liquidity 6 6
Good return 65 65
Capital appreciation 10 10
Professional Management 2 2
Total 100 100
Analysis and Inference
The above table shows that 65% of the respondents invest in Mutual Funds in order to
earn good returns. 17% prefer MF’s as they ensure the safety of the investors, 10% prefer to
invest so that it helps them to earn capital appreciation over a period of time and the rest 8%
invests in MF’s in order to ensure liquidity and also for professional management.
Graph 4.3
Graph showing the reason for investing in Mutual Funds

70
S afety
60
50 Liquidity
No.of Respondents
40 Good return
30
Capital
20 appreciation
10 P rofessional
M anagem ent
0
1
Re a son for inve sting in M F
Table 4.9
The importance of fund related qualities in selection behavior.
Fund related qualities HI I SWI NVI NAAI Total

Fund performance record 12 57 28 3 0 100
Fund brand name 61 36 1 2 0 100

Fund withdrawal facilities 10 59 29 2 0 100

Favorable ratings 31 54 15 0 0 100
Scheme innovativeness 55 45 0 0 0 100
Minimum initial investment 39 30 25 4 2 100
(HI- Highly Important, I- Important, SWI- Some what Important, NVI- Not very Important,
NAAI- Not at all Important)
Fund Performance record

The above table shows that 57% of the investors consider that the fund performance
record is important, 28% feel it is some what important and only 12% consider it highly
important.
This is because the fund performance record helps the investor to have a clear idea
about the performance of the record and helps him to decide whether to invest in it or not.
Fund Brand name

61% of the investors which forms a majority feel fund brand name is highly important
in selecting the mutual funds because funds with brand name can always be trusted and
returns can be fully assured.
Fund Withdrawal facilities

59% of the investors feel that withdrawal facilities are important because it helps
them to switch on to a better option when the chosen fund is not performing well. In case the
withdrawal facilities are not in favor of the investors they refrain from selecting that
particular fund.

Favorable ratings
54% of the investors feel favorable ratings is important whereas 31% feel it is highly
important and only 15% feel it is some what important. This is because ratings help the
investors in identifying the performance and the rankings given to the funds.
Scheme Innovativeness
55% feel it is highly important as innovativeness in the schemes helps in bringing out
more attractive schemes for the investors and helps them to switch on to different options at
different times.
Minimum Initial Investment

39% feel initial investment is highly important, 30% feel it is important and the others
feel it is not very important. Initial investment is a matter of concern for investors who was a
lesser amount of income whereas for those who have high income do not consider it
important. Since Bangalore city consists of middle class income groups, initial investment
should be considered as well.
Graph 4.4
Chart showing the importance of fund performance record.

0%
3% 12%
28%
HI
I
SWI
NVI
NAAI
57%
Graph 4.5
Chart showing the importance of fund brand name.
2%
1% 0%
HI
36% I
SWI
NVI
61%
NAAI
Graph 4.6
Chart showing the importance of fund withdrawal facilities.

0%
2% 10%
29%
HI
I
SWI
NVI
NAAI
59%
Graph 4.7
Chart showing the importance of favorable ratings.
0%
15% 0%
31%
HI
I
SWI
NVI
NAAI
54%
Graph 4.8
Chart showing the importance of scheme innovativeness.

0%
HI
45% I
SWI
55% NVI
NAAI
Graph 4.9
Chart showing the importance of minimum initial investment.
4% 2%
25% HI
39%
I
SWI
NVI
NAAI
30%
Table 4.10
The importance of fund sponsor qualities in selection behavior.

Fund sponsor qualities HI I SWI NVI NAAI Total

Reputation of sponsoring firm 18 56 20 4 2 100
Recognized brand name 66 22 6 4 2 100
Agency and network 4 23 65 16 2 100
Expertise 18 24 50 8 0 100
Research and infrastructure 13 15 34 32 6 100
Past performance 14 52 30 4 0 100
Reputation of the sponsoring firm

The table shows that 56% of the investors consider it important, 20% consider it some
what important and 18% feel it is highly important. This is due to the fact that a good
reputation and fame helps the investors to trust in the sponsor.
Recognized brand name

The table shows that 66% of the investors consider brand name as highly important
and 22% consider it important. A branded sponsor can be blindly trusted and they always
remain faithful to their customers to keep up the name.
Agency and network

65% of the investors feel a well developed agency and network is some what
important because it does not matter much if the sponsor has a big agency or not. The
performance matters more so this criteria is of lesser importance.\
Expertise in managing money

50% feel this criterion is some what important whereas the rest feel it is important.
This is due to the fact that the sponsor should be an expert in placing the investor’s money in
the right place at the right time.
Research and infrastructure

34% of the investors feel it is some what important , 13% feel it is highly important,
15% feel it is important, 32% feel it is not very important and 6% feel it is not at all
important. There is a diverse opinion in this matter as research and development criteria
depend on the type of investors investing in the mutual finds.
Past performance
The table shows 52% consider it important, 30% some what important, 14% highly
important and the rest not important. The majority feel it is important due to the fact that it
guarantees the future performance of the sponsor to a certain extend.
Graph 4.9
Chart showing the importance of the reputation of the sponsoring firm.

60
50
40
Frequency 30
20
10
0
HI I SWI NVI NAAI
Satifaction level
Graph 4.10
Chart showing the importance of a recognized brand name.
70
60
No.of Respondents
50
40
30
20
10
0
HI I SWI NVI NAAI
Sactisfaction Level
Graph 4.11
Chart showing the importance of a well developed agency and network.

70
60
No.of Respondents
50
40
30
20
10
0
HI I SWI NVI NAAI
Satisfaction Level
Graph 4.12
Chart showing the importance of sponsor’s expertise in managing money.
60
50
No.of Respondents
40
30
20
10
0
HI I SWI NVI NAAI
Satisfaction Level
Graph 4.13
Chart showing the importance of a well developed research infrastructure.

40
35
No.of Respondents
30
25
20
15
10
5
0
HI I SWI NVI NAAI
Satisfaction Level
Graph 4.14
Chart showing the importance of sponsors past performance.
60
50
No.of Respondents
40
30
20
10
0
HI I SWI NVI NAAI
Satisfaction Level
Table 4.7

The importance of investor related services in selection behavior.
Investor related services HI I SWI NVI NAAI Total

Disclosure in advertisement 2 15 23 32 28 100
Periodicity of valuation 2 17 33 38 10 100
Disclosure of NAV 2 23 59 16 0 100
Grievance redressal machinery 8 10 16 50 16 100
Fringe benefits 6 84 8 2 0 100
Preferred MF 5 73 20 2 0 100
Disclosure of investment objective

32% feel it is not very important, 28% feel it is not at all important, and a very few
percent of investors feel it is important. This is due to the fact the investors would not like
their information and objectives being made public through advertisements.
Periodicity of valuation
The table shows 38% feel it is not very important, and an equal proportion of 33%
feel it is some what important. The disclosure of periodicity of valuation also depends on the
investors whether they like it to be disclosed or not. Therefore, it is difficult to reach at a
definite conclusion.
Disclosure of NAV

The table shows that a majority of 59% of investors feel that it is some what
important to disclose NAV whereas a few feel it is important. This is necessary as it helps the
investors to keep in track the performance of the funds.
Grievance redressal machinery

The table shows 50% of the investors feel it is not important. The other opinions vary
among investors because a grievance redressal machinery is not of much importance because
the funds do not have much issues related to them that has to be addressed through a channel.
Fringe Benefits
Majority of the investors about 84% of them feel fringe benefits is very important
because fringe benefits help the investors to earn extra benefits with the scheme. The benefits
earn additional income for the investors and so it is of due importance.
Preferred MF to avoid problems

73% of the investors feel already preferred mutual funds help in avoiding problems
and 20% feel it is some what important. They feel it is better so that by investing in already
preferred MF’s , the investors can avoid a lot of problems that may arise if he invests in a
new mutual fund.
Graph 4.14
Chart showing the importance disclosure of investment objective in ads.

2%
15%
28%
HI
I
SWI
23% NVI
NAAI
32%
Graph 4.15
Chart showing the importance of disclosure of periodicity of valuation.
10% 2%
17%
HI
I
SWI
38% NVI
NAAI
33%
Graph 4.16
Chart showing the importance of disclosure of NAV.

0%
16% 2%
23%
HI
I
SWI
NVI
NAAI
59%
Graph 4.17
Chart showing the importance of MF’s investor Grievance Redressal machinery.
8%
16%
10%
HI
I
16% SWI
NVI
NAAI
50%
Graph 4.18
Chart showing the importance of fringe benefits.

2% 0%
8% 6%
HI
I
SWI
NVI
NAAI
84%
Graph 4.14
Chart showing the importance of preferred MF’s to avoid problems.
0%
2%
5%
20%
HI
I
SWI
NVI
NAAI
73%
Table 4.8

The annual income of the respondent v/s the current preference of Savings Avenue.
Annual
income of
the The current preference of savings avenue
respondents
Currency Bank Life Gold Shares Pension Postal Real Total
deposits insurance & PF savings estate
Below 1,00,000 2 (20) 0 (0) 4 (40) 0 (0) 0 (0) 2 (20) 0 (0) 2 (20) 10 (100)
1,00,000-3,00,000 2 (3.4) 6 (10.2) 33 12 0 (0) 2 (3.4) 0 (0) 4 (6.8) 59 (100)

(55.9) (20.3)
3,00,000-5,00,000 0 (0) 4 (14.8) 6 (22.2) 7 (25.9) 2 (7.4) 0 (0) 2 (7.4) 6 (22.2) 27 (100)
Above 5,00,000 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 4 (100) 4 (100)
Total 4 (4.0) 10 (10) 43 (43) 19 (19) 2 (2) 4 (4) 2 (2) 16 (16) 100
(100)
The current preference of Savings Avenue is maximum among investors with an

annual income of Rs. 1, 00,000-3, 00,000. They feel it is essential to invest in life insurance
than any other savings avenue. 55.9% of the investors with an income of 1, 00,000-3, 00,000
have invested in life insurance.
Table 4.9
The academic qualification of the respondent v/s the current preference of Savings Avenue.

Qualification The current preference of savings avenue

Currency Bank Life Gold Shares Pension Postal Real Total
deposits insurance & PF savings estate
School final 0 (0) 4 (66.7) 0 (0) 0 (0) 0 (0) 0 (0) 0 (0) 2 (33.3) 6 (100)
Graduate 4 (10.8) 0 (0) 17 6 (16.2) 2 (5.4) 0 (0) 2 (5.4) 6 (16.2) 37 (100)
(45.9)
Post graduate 0 (0) 4 (9.8) 20 11 0 (0) 4 (9.8) 0 (0) 6 (4.9) 41 (100)
(48.8) (26.8)
Professional 0 (0) 2 (12.5) 6 (37.5) 2 (12.5) 0 (0) 0 (0) 0 (0) 6 (37.5) 16 (100)
Degree
Total 4 (4) 10 (10) 43 (43) 19 (19) 2 (2) 4 (4) 2 (2) 16 (16) 100
(100)
From the above cross tabulation it is clear that the post graduates have invested in life
insurance as a current preference of Savings Avenue. Most of the investors feel it is essential
to invest in life insurance first than before exercising any other option.
Table 4.10
The age of the respondent v/s the media to know about MF.
Age of the
respondent The media to know about MF
Reference Newspapers TV Brokers Total

Groups
Below 30 1 (2.3) 8 (18.2) 29 (65.9) 6 (13.6) 44 (100)
31 – 40 0 (0) 12 (37.5) 8 (25) 12 (37.5) 32 (100)
41 – 50 0 (0) 2 (25) 2 (25) 4 (50) 8 (100)
Above 50 6 (37.5) 4 (25) 2 (12.5) 4 (25) 16 (100)
Total 7 (7) 26 (26) 41 (41) 26 (26) 100 (100)
The above cross tabulation table shows that 65.9% of the respondents below the age of 30
have the awareness of mutual funds through television. This age group is more fascinated in
watching television and it is an attractive media which the youngsters are more fond of.
Table 4.11
The academic qualification of the respondent v/s the media to know about MF
Qualification The media to know about MF

Reference Newspapers TV Brokers Total
Groups
School final 0 (0) 0 (0) 4 (66.7) 2 (33.3) 6 (100)
Graduate 2 (5.4) 6 (16.2) 19 (51.4) 10 (27) 37 (100)

Post 3 (7.3) 10 (22.4) 16 (39) 12 (29.3) 41(100)

graduate
Professional 2 (12.7) 10 (62.50) 2 (12.5) 2 (12.5) 16 (100)
Degree
Total 7(7) 26 (26) 41 (41) 26 (26) 100 (100)
The table shows that 62.50% of the respondents with professional degree are aware of
mutual funds through newspapers. This is due to the fact that the professionals do not have
much time to spend watching television or keeping in touch with other sources. The only
media that they are opened to are newspapers.
CHAPTER 5
Summary of Findings, Conclusions and Recommendations
This study was conducted to find out the investor perception and selection behavior
towards Mutual Funds. The respondents were from the city of Bangalore. A questionnaire
was designed and distributed to 100 respondents. The findings, conclusions and
recommendations of the study are as follows:
Findings

1. The media through which the respondents became aware about the MF’s is television
and newspapers.
2. Most of the investors prefer open-ended and interval schemes in order to earn more
returns and foe liquidity.
3. The main reason behind investing in MF’s is to earn good returns and for safety and
liquidity.
4. The fund related qualities like fund performance record, brand name, withdrawal
facilities, ratings, etc are generally considered to be important by the investors.
5. Among the sponsor related qualities, the reputation, brand name and expertise of the
sponsors were considered important.
6. Among the investor related qualities, the disclosure of NAV and fringe benefits are
considered important.
Conclusions
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. . MF industry in India has a large
untapped market in urban areas besides the virgin markets in the semi-urban and rural areas.
This market potential can be tapped by scrutinizing investor behavior to identify their
expectations and articulate investor’s own situation and risk preference.

Presently more and more funds are entering the industry and their survival depends
on strategic marketing choices of mutual funds companies, to survive and thrive in this
highly promising industry, in the face of such cut throat competition. In addition, the
availability of more savings instruments with varied risk-return combination would make the
investors more alert and choosy. Running a successful MF requires complete understanding
of the peculiarities of the Indian Stock Market and also the psyche of the small investor.
Under such a situation, the present exploratory study is an attempt to understand the financial
behavior of investors in connection with scheme preference and selection.
Investor’s choice of a MF scheme is influenced by the offer or’s brand popularity,

which reduces the perceived risk of an investor. Indian investors trend to rate good returns
and liquidity factor very high in their choice of schemes. Hence, we find more of open-ended
schemes. The past performance or the track record of a fund, as publicized and discussed by
various MF trackers, certainly is an important driver for choosing MF scheme.
The results suggested that there were distinct investor segments that value different
attributes. The results have implications for the marketing of financial products and for the
providers of financial advice. Those providing advice to the growing market of individual
investors need to have an accurate understanding of clients’ attitudes to investment. If they

do not; it will be extremely difficult for them to provide appropriate advice that will satisfy a
client in the long-term.
The present study was an attempt to determine which mutual fund attributes are
valued by individual investors. Given our limited knowledge of investment decision-making
processes and consumer behavior as it applies to financial assets and services, the
possibilities for future research in this area are extensive. As has already been noted, the

range of attributes used in this study was not exhaustive. There is a scope for further
investigation into attributes that were not included in the present study, including the
influence that a company’s environmental and social credentials might have on investors’
choices. Additionally, a larger sample size covering more centers can improve the reliability
and validity of the results.
Recommendations
Since the investor’s need for liquidity and returns is found to be high, more of the new
schemes opening for subscription be open-ended.
AMC’s should continuously design suitable schemes to meet the triple needs of adequate
returns, safety and liquidity in a balanced proportion and develop infrastructure to reach to
the investors.

The MF operational environment is becoming more competitive. Hence, the impact of

emerging competition on investor behavior/behavioral changes needs to be studies further.
Developments in technology influence the behavior of investors. Hence, the impact of
technology on financial behavior is another potential area for close study. Since the industry
is still struggling to win the investor’s confidence, an in-depth analysis into investor’
expectations from MF products, its performance, management, service and other related
areas could be done.
This study reveals that MF investors feel that currently the two major benefits, which MF’s
purport to offer, namely, diversification benefits and professional management are not
satisfactorily delivered. In spite of this, MF industry is growing and we attribute this to
investor behaviour and other macroeconomic factors. Further research can be done to
understand the reasons for growing popularity on one side and the struggle to win investor’s
confidence on the other side.
By proper segmentation and by targeting the right product to the right customer, MF
companies can cope to win the confidence of their customers and own them for a life time.
Questionnaire to Investors in Mutual Funds
Dear Sir / Madam,

Mutual Funds have opened new vistas to millions of small investors by virtually taking
investment to their very doorstep.
I am currently engaged in a study on Investment perception and selection behavior
towards Mutual Funds. In connection to this, I request you to read the following questions carefully
and answer them. The answers will be held confidential and used purely for academic purpose. Please
put a tick mark in the square corresponding to your choice.
I. Personal Data

1.1 Name (Optional) :

1.2 Sex : Male Female
1.3 Age in completed years :
Below 30 31 – 40 41-50 Above 50
1.4 Academic Qualifications:
School Final Graduate Post-Graduate Professional Degree
1.5 Occupation :
Professional Business Salaried Retired
1.6 Annual Income in Rs :
Below Rs.1, 00,000 Rs.1, 00,000 – 3, 00,000
Rs.3, 00,000 – 5, 00,000 Above Rs.5, 00,000
1.7 Annual Savings :
Less than Rs.50, 000 Rs.50, 001 to 1, 00,000 Above Rs.1, 00,000
1.8 Objectives of your savings :
To provide for retirement For tax reduction
To meet contingencies For children’s education
1.9 What is your current preference of Savings Avenue?
Currency Bank Deposits Life Insurance Gold Chits
Shares Pension & PF MF Postal Savings Real Estate
1.10 How do you know about Mutual Fund Investment Schemes?
Reference groups Newspapers TV Brokers
II. General Data
2.1 Do you prefer investment in Mutual Funds to other savings avenue in future?
Yes No Not Sure
2.3 Generally you prefer
Growth Schemes Income Schemes
Balanced Schemes Money Market Schemes
Tax Savings Schemes Index Schemes
2.4 You prefer:
Open Ended Schemes Close Ended Schemes Interval Schemes

2.5 You prefer investment in Mutual Funds due to

Safety Liquidity
Flexibility Good Return
Capital appreciation Professional Management
Tax Benefit Diversification Benefit
III. Selection Criteria

Highly Importan Some What Not Very Not at all
Importan t Important Importan Important
t t
3.1. Fund Related Qualities
a) Fund performance record

b) Fund Brand name
c) Withdrawal facilities
d) Favorable ratings
e) Scheme Innovativeness
f) Minimum initial investment
3.2. Fund Sponsor Qualities
a) Reputation of sponsoring firm

b) Sponsor has a recognized
brand name
c) Sponsor has a well developed
agency and network
d) Sponsor’s expertise in
managing money
e) Sponsor has a well developed
research and infrastructure
f) Sponsor’s past performance in

terms of risk and return

3.3. Investor Related Services
a) Disclosure of investment
objective in advertisement
b) Disclosure of periodicity of
valuation
c) Disclosure of NAV
d) MF’s Investor grievance
redressal machinery
e) Fringe benefits
f) Preferred MF to avoid
problems
Thank you very much for your kind co-operation and for taking time to complete this
Questionnaire.

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Fund Selection Behavior

Kristu Jayanti College 1

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There is an obvious link between financial investment choices and consumer

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Statement of the problem

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Need for the study

The study has the following objectives:

The following studies were conducted earlier:

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Vidyashankar (1990), Agrawal GD (1992), Gupta LC (1993) Atmaramani (1996),

Gupta LC (19193) conducted a household investor survey with the objective to

Madhusudhan V Jambodekar (`1996) conducted a study to assess the awareness of

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Limitations of the study

Scope of the study

1. To understand the perception of the investors towards Mutual Funds.

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What is a Mutual Fund?

Investments in securities are spread across a wide cross-section of industries and

The working of MF is illustrated in the form of a diagram

Passed back to Pool their money with

Returns Fund Manger

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Evolution and Growth of Mutual Funds

• Creation of an appropriate regulatory framework to promote sound, orderly and

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First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It

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Second Phase – 1987-1993 (Entry of Public Sector Funds)

Third Phase – 1993-2003 (Entry of Private Sector Funds)

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The graph indicates the growth of assets over the years.

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Mutual Fund Set up

Net Asset Value (NAV) of a scheme

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Different types of mutual fund schemes

Schemes according to Maturity Period

A mutual fund scheme can be classified into open-ended scheme or close-ended

Open-ended Fund/ Scheme

An open-ended fund or scheme is one that is available for subscription and

Close-ended Fund/ Scheme

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Schemes according to Investment Objective

A scheme can also be classified as growth scheme, income scheme, or balanced

Growth / Equity Oriented Scheme

Income / Debt Oriented Scheme

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Money Market or Liquid Fund

Tax saving schemes

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Mutual Funds provide several benefits to investors. Some of them are:

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1. It has no tailor-made schemes to suit to each individual retail investor.

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Profile of the respondents