Study Of Investors Awareness About Mutual Funds Finance Essay

Savingss form an of import portion of the economic system of any state. With nest eggs invested in assorted options available to the people, the money acts as the driver for growing of the state. Indian fiscal scene excessively presents multiple avenues to the investors. Though surely non the best or deepest of markets in the universe, it has ignited the growing rate in common fund industry to supply sensible options for an ordinary adult male to put his nest eggs.

Indian MF industry offers a assortment of strategies & A ; serves loosely all type of investors. The scope of merchandises includes equity financess, debts, liquid, gilding, & A ; balanced financess. There are besides financess meant entirely for immature & A ; old, little & A ; big investors. Furthermore, the stup of a legal construction, which has adequate dentitions to safeguard investors ‘ involvement, ensures that the investors are non cheated out of their hard-earned money.

One can avail of the benefits of better returns with added benefits of anytime liquidness by puting in open-ended debt financess at lower hazard. Many people have burnt their fingers by puting in fixed sedimentations of companies who were guaranting high returns but have gone flop in class of clip taking to overwrought investors every bit good as pending instances in the Company Law Board. This hazard of default by any company that 1 has chosen to put in, can be minimized by puting in common financess as the fund directors analyze the companies ‘ financials more circumstantially than an person can make as they have the expertness to make so. They can pull off the adulthood of the portfolio by puting in instruments of varied adulthood profiles. Since there is no punishment on pre-mature backdown, as in the instances of fixed sedimentations, debt financess provide adequate liquidness. Furthermore, common financess are better placed to absorb the fluctuations in the monetary values of the securities as a consequence of involvement rate fluctuation & A ; one can benefits from any such monetary value motion. Apart from liquidness, these financess have besides provided really good post-tax returns on twelvemonth to twelvemonth footing.

Apart from little retail investor, the industry can pull investings from institutional & A ; large investors every bit good. Liquid financess offer liquidness every bit good as better returns than Bankss & A ; so attract investors. Many financess provide anytime withdrawal enabling a large investor to take maximal benefits.

Like we said earlier, the entreaty of common financess cuts across investor categories. In other developed states, common financess attract much more investings as compared to the banking sector but in India the instance is rearward. We lack awareness about the benefits that are offered by these strategies. It is clip that investors irrespective of their hazard capacities, made intelligent determinations to bring forth better returns & A ; common financess are decidedly one of the ways to travel about it.


A common fund is a trust that pools nest eggs of a figure of investors who portion a common fiscal end. The money therefore collected is invested by the fund director in different types of securities depending upon the aim of the strategy. The income earned through these investings & A ; the capital grasp realized by the strategy is shared by unit holders in proportion to the figure of units owned by them. Thus a common fund is the most suited investing for the common adult male as it offers an chance to put in a diversified and professionally managed portfolio at a comparatively low cost. Anybody with an investible excess of every bit small as a few thousand rupees can put in common financess.

A common fund is the ideal investing vehicle for today ‘s complex & A ; modern fiscal scenario. Markets for equity portions, bonds & A ; other fixed income instruments, existent estate, derivatives & A ; other assets have become mature & A ; information driven. Price alterations in these assets are driven by planetary events happening in far off topographic points. A typical person is improbable to hold the cognition, accomplishments, disposition & A ; clip to maintain path of the events, understand their deductions & A ; act quickly.

A common fund is an reply to all these and much more. It appoints professionally qualified, experient staff that manages each of these maps on a full clip footing. The big pool of money collected in the fund allows it to engage such staff at a really low cost to each investor. In consequence, the common fund vehicle exploits economic systems of graduated table in all three countries: the research, investings & A ; dealing processing. Common financess fundamentally gained popularity merely after the 2nd universe war. Globally, there are 1000s of houses offering dozenss of 1000s of common financess with different investing aims. Today, common financess jointly managed about more money as compared to the Bankss.

A bill of exchange offer papers is to be prepared at clip of establishing the fund. Typically, it pre specifies the investing aims of the fund, the hazard associated, the costs involved in the procedure & A ; the wide regulations for entry into & A ; issue from the fund & A ; other countries of operation. In India, as in most states these patrons need blessing from a regulator, SEBI in this instance. SEBI looks at path records of the patron & A ; its fiscal strength in allowing blessing to the fund for get downing operations.

A patron so hires an AMC ( plus direction company ) to put the financess harmonizing to the investing aim. It besides hires another entity to be the keeper of the assets of the fund & A ; possibly a 3rd one to manage register work for the endorsers of the fund.

In the Indian context, the patrons promote the Asset Management Company besides, in which it holds a bulk interest.

Eg- Birla Global Finance is the patron of the Birla Sun Life Asset Management Company Ltd. , which has floated different common financess strategies & A ; besides acts as an plus director for the financess collected under its strategies.

Common Funds invest fundamentally in three types of plus categories. These include:

Stockss: It represents ownership or equity in a company. This plus category has historically outperformed all other plus categories over the long term but tends to be more volatile in short-run.

Debt Instruments: This represents debt documents of corporate & A ; Govt. bureaus. They provide income in the signifier of involvement payments & A ; chief if held boulder clay adulthood. There can be monetary value volatility due to involvement rate motions every bit good as economic & A ; political instability.

Money Market Instruments: These are inter-bank Call Money, Treasury Bills, Commercial Paper, Certificates of Deposit, Bill Rediscounting & A ; short term bonds. They pay involvement & A ; are the least volatile of all plus categories.


The common fund industry in India started in 1963 with the formation of Unit Trust of India ( UTI ) , at the enterprise of the Govt of India & A ; Reserve Bank of India. The history of common financess in India can be loosely divided into four distinguishable stages:

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 & A ; functioned under the Regulatory & A ; administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the RBI & A ; the Industrial Development Bank of India ( IDBI ) took over the regulative & A ; administrative control in topographic point of RBI. The first strategy launched by UTI was Unit Scheme 1964. At the terminal of 1988 UTI had Rs.6,700 crores of assets under direction. A

Second Phase: 1987-1993 ( Entry of Public Sector Funds ) 1987 marked the entry of non- UTI, public sector common financess set up by public sector Bankss & A ; LIC & A ; 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, Punjab National Bank Mutual Fund ( Aug 89 ) , Indian Bank Mutual Fund ( Nov 89 ) , Bank of India, Bank of Baroda Mutual Fund ( Oct 92 ) . LIC established its common fund in June 1989 while GIC had set up its common fund in December 1990. At the terminal of ’93, the common fund industry had assets under direction of Rs.47,004 crores. A

Third Phase: 1993-2003 ( Entry of Private Sector Funds ) A With the entry of private sector financess in 1993, a new epoch started in the Indian common fund industry, giving the Indian investors a wider pick of fund households. Also,1993 was the twelvemonth in which the first Mutual Fund Regulations came into being, under which all common financess, except UTI were to be registered & amp ; governed. The former Kothari Pioneer ( now merged with Franklin Templeton ) was the first private sector common fund registered in July 1993. The 1993 SEBI ( Mutual Fund ) Regulations were substituted by a more comprehensive & A ; revised Mutual Fund Regulations in 1996. The industry now functions under the SEBI Regulations 1996. A The figure of common fund houses went on increasing, with many foreign common financess puting up financess in India & A ; besides the industry has witnessed several amalgamations & A ; acquisitions. As at the terminal of January 2003, there were 33 common financess with entire assets of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under direction was manner in front of other common financess. A

Fourth Phase – since February 2003 A In February 2003, following the abrogation 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 direction of Rs.29,835 crores as at the terminal of January 2003, stand foring loosely, the assets of US 64 strategy, assured return & A ; certain other strategies. The Specified Undertaking of Unit Trust of India, working under an decision maker & A ; under the regulations framed by Govt. of India & A ; does non come under the horizon of the Mutual Fund Regulations. The 2nd is the UTI Mutual Fund, sponsored by SBI, PNB, BOB & A ; LIC. It is registered with SEBI & A ; maps 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 direction & A ; with the puting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, & A ; with recent amalgamations taking topographic point among different private sector financess, the common fund industry has entered its current stage of consolidation & A ; growing. A

The graph bbelow indicates the growing of assets over the old ages:



A Common Fund is fundamentally like a trust that pools the nest eggs of a figure of investors who portion a common fiscal end. The money therefore collected by them is so invested in capital market instruments such as portions, unsecured bonds & A ; other securities. The income earned through these investings & A ; capital grasp realized are shared by the unit holders in proportion to the figure of units owned by them. Therefore, a Common Fund is the most suited investing option for a common adult male as it offers an chance to them to put in a diversified, professionally managed basket of securities at a comparatively lower cost.

The flow chart below describes the working of a common fund:

Administration OF A MUTUAL FUND

There are many entities involved & amp ; the diagram below illustrates the organisational set up of a common fund:

Organization of a Mutual Fund

These are: –

Establishes the common fund as a trust & A ; registries with SEBI

Managed by the board of legal guardians.

Sponsor Company

Hold unit holders financess in common fund. Enters into an understanding with SEBI.

Common fund

( For e.g. Reliance )

IT Floats common financess as per the SEBI ordinances.

Asset Management Company.

Provides the web for distribution of strategies to the investors.

It provides registrar & A ; transportation services.

It provides tutelary services.




Types of Mutual Fund Schemes

Common fund strategies may be classified on the footing of its construction & A ; its investing aim.

1. By Structure


An unfastened ended fund is the 1 that is available for subscription all through the twelvemonth. These do n’t hold a fixed adulthood. Therefore investors can conveniently purchase & amp ; sell units at Net Asset Value ( NAV ) related monetary values. The cardinal characteristic of open-end strategies is liquidness.


A closed ended fund has a stipulated adulthood period which by and large runing from 3 to 7 old ages. Unlike unfastened ended schemes, this fund is unfastened for subscription merely during a specified period. Investors can put in the strategy at the clip of the initial public issue & A ; thenceforth they can purchase or sell the units of the strategy on the stock exchanges where they are listed. In order to supply an issue path to the investors, some stopping point ended financess give an option of selling back the units to the Mutual Fund through periodic redemption at NAV related monetary values. SEBI Regulations stipulate that at least one of the two issue paths is provided to the investor. These strategies unwrap NAV by and large on a hebdomadal footing.

Interval Fundss

Interval financess combine the characteristics of both the unfastened ended & A ; the stopping point ended strategies. They are unfastened for sale or salvation during pre-determined intervals at NAV ( Net Asset Value ) related monetary values.

By Investment Objective

Growth/Equity Oriented Schemes

The purpose of growing financess is to supply capital grasp over the medium to long term. Such strategies usually invest a bulk of their principal in equities. It has been proved that returns from stocks, have outperformed most other sort of investings held over the long term. Growth strategies are ideal for investors holding a long term mentality seeking growing over a period of clip.

Income/Debt Oriented Schemes

The purpose of income financess is to supply regular & A ; steady income to its investors. Such strategies by and large invest in fixed income securities such as corporate unsecured bonds, bonds & A ; Govt. securities etc.. Income Fundss are ideal for those who seek capital stableness & A ; regular income.

Balanced Fundss

The purpose of balanced financess is to supply both growing every bit good as regular income to the investors. Such strategies sporadically distribute a portion of their net incomes & A ; invest both in equity & A ; fixed income securities in the proportion indicated in their offer paperss. In a lifting stock market, the NAV of these strategies may non usually maintain gait, or autumn every bit when the market falls. These are ideal for investors looking for a combination of income & A ; moderate growing.

Money Market/ Liquid Fundss

The purpose of money market financess is to supply easy liquidness, saving of capital & A ; moderate income. These strategies fundamentally invest in safer short-run instruments such as exchequer measures, certifications of sedimentation, commercial paper & A ; inter bank call money. Tax returns on these strategies may fluctuate depending upon the involvement rates predominating in the market. These are ideal for Corporate & A ; single investors as a agency to park their excess financess.

Gilt Fund

These financess invest entirely in Govt. seA­curities. Govt securities have no default hazard. NAV ‘s of these strategies besides fluctuate due to alterations in involvement rates & A ; other economic facA­tors as is the instance with income or debt oriented strategies.

Other Schemes

Tax Salvaging Schemes

These strategies offer revenue enhancement discounts to the investors under specific commissariats of the Indian Income Tax Torahs as the Govt. offers revenue enhancement inducements for investing in specified avenues. Investings made in Equity Linked Savings Schemes ( ELSS ) & A ; Pension Schemes are allowed as tax write-off u/s 88 of the Income Tax Act, 1961.


Common Fundss in order to provide to a scope of investors, have assorted investing programs. Some of the of import investing programs include the followers:

Growth Plan

Under the Growth Plan, the investor realizes merely the capital grasp on the investing ( by an addition in NAV ) & A ; does non acquire any income in the signifier of dividend.

Income Plan

Under the Income Plan, the investor realizes income in the signifier of dividend. However his NAV will fall to the extent of the dividend.

Dividend Re-investment Plan

Under this program the dividend accrued on common financess is automatically re-invested in buying extra units in open-ended financess. In most instances common financess offer the investor an option of roll uping dividends or re-investing the same.

Systematic Investment Plan ( SIP )

SIP is similar to a Recuring Deposit ( RD ) . Every month an sum that the investor chooses, is invested in a common fund strategy of his pick. Under this program Investors invest a specific sum for a uninterrupted period, at regular intervals. By making this, the investor get the advantage of rupee cost averaging. Which means that by puting the same sum at regular intervals, the mean cost per unit remains lower than the mean market monetary value, irrespective of how the market is – rise, falling or fluctuating.i.e. with every fluctuation in the market the units are purchased consistently, therefore ensuing in averaging the purchase monetary value. Whereas this is non true for a erstwhile investing. This is the ground why a SIP investor gets phenomenal rate of return compared to a erstwhile investor.

Systematic Withdrawal Plan

As opposed to the Systematic Investment Plan, the Systematic Withdrawal Plan allows the investor the installation to retreat a pre-determined amount/units from his fund at a pre-determined interval. The investor ‘s units will be redeemed at the bing NAV as on that twenty-four hours.

Retirement Pension Plan

Some strategies are linked with retirement pension. Persons participate in these programs for themselves & amp ; corporate for their employees.

Insurance Plan

Some strategies launched by UTI & A ; LIC offer insurance screen to the investors.


NAV is the entire plus value ( cyberspace of disbursals ) per unit of the fund & A ; is calculated by the Asset Management Company ( AMC ) at the terminal of every concern twenty-four hours. Net plus value on a peculiar day of the month reflects the realizable value that the investor will acquire for each unit that he his keeping if the strategy is liquidated on that day of the month.

The public presentation of a peculiar strategy of a common fund is denoted by Net Asset Value ( NAV ) .

Common financess 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 strategy. Since market value of securities alterations every twenty-four hours, NAV of a strategy besides varies on twenty-four hours to twenty-four hours footing. The NAV per unit is the market value of securities of a strategy divided by the entire figure of units of the strategy on any peculiar day of the month. For illustration, if the market value of securities of a common fund strategy is Rs 200 hundred thousand & A ; the common fund has issued 10 lakhs units of Rs. 10 each to the investors, so the NAV per unit of the fund is Rs.20. NAV is required to be disclosed by the common financess on a regular footing – daily or hebdomadal – depending on the type of strategy.

Calculation OF NAV

The most of import portion of the computation is the rating of the assets owned by the fund. Once it is calculated, the NAV is merely the net value of assets divided by the figure of units outstanding. The computation of the plus value is given below: –

Asset value is equal to =Sum of market value of shares/debentures

+ Liquid assets/cash held, if any

+ Dividends/interest accrued

Amount due on unpaid assets

Expenses accrued but non paid


1. Diversification: Common Fundss invest in a figure of companies across a wide cross-section of industries & A ; sectors. This variegation reduces the hazard because seldom do all stocks decline at the same clip & A ; in the same proportion. You achieve this variegation through a Mutual Fund with far less money than you can make on your ain. Therefore, with smaller sums you can accomplish a higher grade of variegation & A ; cut down your hazard.

2. Professional MANAGEMENT: Most common financess pay topflight professionals to pull off their investings. These directors decide what securities the fund will purchase & amp ; sell.

3. RETURN POTENTIAL: Over a medium to long-run, Common Fundss have the possible to supply a higher return as they invest in a diversified basket of selected securities.

4. Liquid: It ‘s easy to acquire your money out of a common fund. In open-end strategies, the investor gets the money back quickly at net plus value related monetary values from the Mutual Fund. In closed-end strategies, the units can be sold on a stock exchange at the predominating market monetary value or the investor can avail of the installation of direct redemption at NAV related monetary values by the Mutual Fund.

5. Convenience: Investing in a Common Fund reduces paperwork & amp ; helps you avoid many jobs such as bad bringings, delayed payments & A ; follow up with agents & A ; companies. Common Fundss salvage your clip & A ; do puting easy & A ; convenient.

6. Tax Benefit: Some common fund strategies offer you revenue enhancement benefits under subdivision 80C of Income Tax Act.

7. Low COSTS: Common Fundss are a comparatively less expensive manner to put compared to straight puting in the capital markets because the benefits of graduated table in securities firm, tutelary & A ; other fees translate into lower costs for investors.

8. Flexibility: Through characteristics such as regular investing programs, regular backdown programs & A ; dividend reinvestment programs, you can consistently put or retreat financess harmonizing to your demands & A ; convenience. Switch over over option for exchanging to/from some other bing fund is besides offered by some common financess.

9. AFFORDABILITY: Investors separately may miss sufficient financess to put in high class stocks. A common fund because of its big principal allows even a little investor to take the benefit of its investing scheme.

10. Assortment OF SCHEMES: Common Fundss offer assortment of strategies to investors therefore, giving an option to take a strategy that suits the investors changing demands over a life-time.

11. Well REGULATED: All Common Fundss are registered with SEBI & A ; they function within the commissariats & A ; rigorous ordinances designed to protect the involvements of investors. The operations of Common Fundss are on a regular basis monitored by SEBI.


Market Hazard

The NAV of strategy puting in equity will fluctuate as the day-to-day monetary values of the single securities in which they invest fluctuate & A ; the units when redeemed may be worth more or less than the original cost.A


Bad intelligence about an single company can draw down its stock monetary value, which can impact, negatively, financess keeping a big measure of that stock. This hazard can be reduced by holding a diversified portfolio that consists of a broad assortment of stocks drawn from different industries.

Interest Rate RISK

Monetary value of securities & A ; involvement rates fundamentally move in opposite waies. When involvement rates rise, security monetary values fall & amp ; this diminution in underlying securities affects the NAV negatively. The extent of the negative impact is dependent on factors such as adulthood profile, liquidness, etc…

Recognition Hazard

Chemical bonds are debt duties. So when the financess are invested in corporate bonds, they run the hazard of the corporate defaulting on their involvement payment & A ; the chief payment duties & A ; when that hazard crystallizes it leads to a autumn in the value of the bond doing the NAV of the fund to take a whipping.


With the addition in common fund participants in India, a demand for common fund association in India was generated to work as a non-profit organisation. Association of Mutual Funds in India ( AMFI ) was incorporated on 22nd August’95.

AMFI is an apex organic structure of all Asset Management Companies ( AMC ) which has been registered with SEBI. Till day of the month all the AMC ‘s are that have launched common fund strategies are its members. It functions under the supervising & A ; guidelines of its Board of Directors.

Association of Mutual Funds India ( AMFI ) has brought down the Indian Mutual Fund Industry to a professional & A ; healthy market with ethical lines heightening & A ; maintaining criterions. It follows the rule of both protecting & A ; advancing the involvements of common financess every bit good as their unit holders.

As of now, all the 39 Asset Management Companies that are registered with SEBI are its members.

AMFI maps under the supervising & A ; counsel of a Board of Directors

Its aims are as follows: –

*It maintains a high professional & A ; ethical criterions in all countries of operation of the industry.

*It besides recommends & A ; promotes the top category concern patterns & A ; codification of behavior which is followed by members & As ; related people engaged in the activities of common fund & A ; plus direction.

*AMFI interacts with SEBI & A ; works harmonizing to SEBI ‘s guidelines in the common fund industry.

*Association of Mutual Fund of India ( AMFI ) do stand for the Govt of India, the Reserve Bank of India & A ; other related organic structures on affairs associating to Mutual Fund Industry.

*It develops a squad of good qualified & amp ; trained Agent distributers.

*It implements a programme of preparation & A ; enfranchisement for all mediators & A ; other engaged in the common fund industry.

*AMFI undertakes all India consciousness programme for investors in order to advance proper apprehension of the construct & A ; working of common financess.


For the present survey, the undermentioned literatures are being reviewed:

The rubric of Article is “ Does client satisfaction lead to profitableness? ”

Author ( s ) : Timothy L. Keiningham, Tiffany Perkins-Munn, Lerzan Aksoy, Demitry Estrin

Journal: Managing Service Quality

Publisher: Emerald Group Publishing Limited

“ After taking into consideration general market conditions & A ; fund investing aim, the characteristic variables that relate to fund popularity, growing, cost, & A ; direction besides explain public presentation ”

School of Business, Bond University, Gold Coast, Queensland 4229, Australia

b The University of New South Wales, Kensington, New South Wales, Australia.


To happen out the standard most preferred by people for choice of common financess.

To determine the satisfaction degree of clients who invested in common financess.

To determine how many people are cognizant of the different common fund companies/AMC ‘s.

To cognize what sort of schemes/plans investors like to put in.

To cognize the assorted services provided by AMC ‘s to its investors.

To happen out the VAS most used by the investors.

6. To happen out the grounds for non puting in common financess by certain investors/people.




The technique deployed to analyse & amp ; construe the information for the intent of hitting the mark nonsubjective plays a important function. The effectual research technique has a important part for effectual nonsubjective accomplishment.

Developing a Research Plan:

A proper research program was developed & amp ; finalized & amp ; determinations sing informations beginnings, research attacks, instruments used in research sampling program was designed. The research conducted was explorative every bit good as conclusive in nature & A ; the database was gathered through secondary & A ; primary beginnings in order to hit the aim of the survey.

Type of Research methods used:

The research technique used for the survey involve following two methods:

Exploratory Research: The Exploratory Research was used to seek the secondary & A ; primary database in signifier of study of the experts from assorted Bankss every bit good as the clients covering with assorted Bankss with the aid of questionnaire. The hypothesis for the research has been generated in the undermentioned mode:

Literature study

Survey of Experts/Individuals

Conclusive Research: The database for the research has been conducted consistently ; & A ; its observations & A ; analysis has been done as per the research aims.


Sampling: Convenience sampling

Sample size: 100

The sample size is for the users being surveyed to analyse the potency of the industry, assorted benefits & A ; disadvantages & A ; to supply the utile tips & A ; recommendations Due to clip constraint the sample size of 100 respondents has been selected & amp ; divided in such a mode that at least 20 individuals from following countries have been taken ( Kamla nagar, C.P, Shalimar Bagh, Ashokvihar, Amity University )

Datas Beginnings:

Primary informations via questionaire

Secondary informations via books, company web sites, etc

Presentation tools:

The presentation tools used are histograms & A ; informations tabular arraies.

Restrictions Of Survey:

The sample size is little as the clip restraint was at that place.

Every AMC keeps their client informations really confidential & A ; sharing the information of the client is really critical issue so it is really tough to make the study on all sections of client.

A hundred per centum truth can non be maintained while carry oning the study because the respondents do non hold all the information at the clip of the interview & A ; they are able to give merely approximative figures.

Since most parametric quantities are qualitative as the research deals with comparative footings, non all the informations can be converted in quantitative footings & A ; hence an nonsubjective analysis is hard to transport out.

At the clip of carry oning interviews, some of the respondents were loath to unwrap the exact ground.

The database relied on at many topographic points is secondary informations. The Secondary information is capable to genuineness.




Male: 59

Female: 41


20-30: 23

30-40: 45

40-50: 25

50+ : 7



Business: 36




LESS THAN 15000: 10

15000-20000: 22

20000-30000: 45

30000+ : 23

Q.1 Which investing option do you largely cover in?

A. Shares & A ; Unsecured bonds


B. Common financess


C. Insurance


D. None/Others


Inference: Most of the investors prefer puting in insurance over common financess because of the life screen provided to them in add-on to the investing.

Q2. Do you put in common financess presently?

A. Yes


B. No


INFRENCE: Majority of investors do n’t prefer to put in common financess because of low returns after recession.

Q.3 Which company do you most like to cover with or prefer?













G. Others


INFRENCE: Out of assorted AMC ‘s most preferable one is UTI since it ‘s the oldest in the market & A ; has given good returns over the old ages.

Q.4 If you presently do n’t put in Common financess so would you wish to in future?

A. Yes


B. No


INFRENCE: Of those who do n’t put in common financess presently would wish to make so in future. This shows the turning popularity of common financess & A ; its credence in the market among investors.

Q.5 If no, so would you wish to state the ground because of?

A. Hazard involved


B. Lack of consciousness


C. No Guarantee


D. Any other


INFRENCE: The major ground for non puting in common financess is that there are ‘no guaranteed ‘ returns followed by ‘Risk involved ‘ ‘Lack of investor ‘s consciousness ‘ and others like ‘Low returns ‘ etc.

Q.6 Are you cognizant of all the 39 Mutual fund Companies ( AMC ‘s ) ?

A. Yes


B. No


C. A few


INFRENCE: Majority of people are non cognizant of all the 39 AMC ‘s that exist in the market.

Q7 What is your major standard for choosing a common fund?

A. Tax Salvaging


B. Investing


C. Diversification


D. Liquidity


E. Other


INFRENCE: Majority of people invests in common fund for the intent of revenue enhancement economy followed by Investment intent, Liquidity and Diversification in that order as depicted from the above consequences.

Q 8. Which schemes do you largely prefer to put in?

A. Open ended


B. Close Ended


C. Interval Fundss


INFRENCE: It is observed that 64 out of 100 that are 64 % of investors are interested to put their money in unfastened ended financess the ground can be attributed to its convenience to come in and go out at any clip. 23 % investors preferred to put in near ended financess because they are long term investors every bit good as they want some revenue enhancement benefits. And the staying 13 % investors replied that they do n’t mind to put in any financess including interval financess

Q9 What programs of common financess do u prefer?

Systematic investing Plan

Growth Plan

Pension Plan

Income Plan

INFRENCE: Most of the investors interviewed were salaried so they prefer SIP the most followed by Income program and growing programs severally.

Q10. Did you reiterate your investing after your initial investings?

A. Yes

B. No

INFRENCE: Majority of the investors have reinvested in common financess. This shows that they were satisfied with it.

Q 11. Which value added service you largely utilize?

Direct Recognition

Dividend Sweep

On-line dealing


INFRENCE: The investors largely make usage of services like Direct Credit provided by assorted AMC ‘s to its clients.



Most of the people are non cognizant of the assorted companies covering in Common financess.

The present coevals is though unfastened to the thought of puting in a common fund since they are really much aware of the planetary scenario.

Peoples like to put in strategies with assured returns than others.

Peoples like to put their money in unfastened ended financess the ground can be attributed to its convenience to come in & amp ; issue at any clip.

Schemes that invest in Govt. Securities ( Debt ) are much preferred by people.

The ground for non-investment in common financess: no warrant, hazards involved and so forth, .

Service category coming up with the investings through SIP.

Investors appreciate and make usage of the assorted VAS provided by the AMC ‘s.

Slowly & A ; bit by bit with the gap of international boundary lines & A ; denationalization, people are acquiring informed about other avenues of investing.



1aˆ? Companies must do the public aware about the pros. & A ; cons. of puting in Common financess.

2aˆ? The companies must heighten the cognition of people by proper selling of their merchandises.

3aˆ? Peoples must be made cognizant of the difference in common financess as compared to other investings with respect to particular benefits.

4aˆ? Companies must supply a broad scope programs to investors to take from.

5aˆ? Companies must advert a mark market or aim a group as per the specifications of the strategies.

6aˆ?Companies must happen ways to take down down on the hazard factors associated with puting in common financess.

7aˆ? Companies should concentrate on better value added services to be provided to the investors as it does makes a batch of difference to them & A ; makes it easier for the investors to keep their portfolio decently.

July 25, 2017