Awareness of Mutual Fund Among Investors From Ing Vysya Bank
Awareness o f Mutual Fund Investment among...
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Awareness of Mutual Fund Investment among investors of Mehsana city
Management Research Project - II
Submitted
In the partial fulfillment of the Degree of
Master of Business Administration
Semester-IV
By
Name Roll No.
Pancholi Jalpa 11044311056
Parmar Kashmira 11044311062
Parmar Payal 11044311065
Parmar Viraj 11044311066
Prajapati Jayshree 11044311117
Rabari Hetal 11044311122
Under the Guidance of:
Prof. (Dr.) Mahendra Sharma Prof. & Head,
V. M. Patel Institute of Management.
&
Jayesh D. Patel Assistant Professor,
V. M. Patel Institute of Management.
Dipesh Dasani Assistant Professor,
V. M. Patel Institute of Management.
Submitted To: V. M. Patel Institute of Management
(April-2013)
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CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled “Awarenessof Mutual Fund
Investment among investors of Mehsanacity.”submitted to V. M. Patel Institute of
Management for the Award of Master of Business Administration (MBA Sem-IV) is original
research work carried out by him/her/them under my supervision. This report has not been
submitted either partly or fully to any other University or Institute for award of any degree or
diploma.
Name Exam No.
Pancholi Jalpa 11044311056
Parmar Kashmira 11044311062
Parmar Payal 11044311065
Parmar Viraj 11044311066
Prajapati Jayshree 11044311117
Rabari Hetal 11044311122
Professor & Head,
V. M. Patel Institute of Management,
Ganpat University.
Kherva.
Date: 22/04/2013
Place: Kherva
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CANDIDATE’S STATEMENT
We hereby declare that the work incorporated in this report entitled “Awarenessof Mutual Fund Investment among investors of Mehsana city.” in partial fulfilment of the requirements for the award of Master of Business Administration (Sem.-IV) is the outcome of original study undertaken by us and it has not been submitted earlier to any other University or Institution for the award of any Degree or Diploma. Name Exam No. Sign.
Pancholi Jalpa 11044311056
Parmar Kashmira 11044311062
Parmar Payal 11044311065
Parmar Viraj 11044311066
Prajapati Jayshree 11044311117
Rabari Hetal 11044311122
Date: 22/04/2013
Place: Kherva
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PREFACE
“Experience is the best teacher.”- This saying plays a guiding role in our lives and also in Management Research Project those are an integral part of the M.B.A. Today’s age is an age of management. Management is the backbone of any organization or
any activity done. The real success of management lies in applying the professional
management techniques in all managerial activities. As we move into an era of intense
competition and high performance expectations, it is important that we develop the winning
edge.
Practical study is eminent, and plays vital role for the students of management, because
classroom coaching and theoretical study alone are not enough. To survive in this highly
competitive world, practicality outweighs theoretic. Students are supposed to learn the
various principles of business administration conceptually but accuracy and efficiency in
their implementation is possible only through exposure to practical environment.
In this report we have tried to analyze one of the lending industry that is mutual fund
industry and tried to find out industry’s awareness and preference through primary survey.
The project has given us a very good exposure to know the industry and to understand the
working of industry.
Date: - 22/04/2013
Place : - Kherva
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ACKNOWLEDGMENT
We have been able to prepare our report successfully and we acknowledge a special thanks to
all those people without whose support it was impossible to make the project report.
We would hereby take this opportunity to show our gratitude towards all our mentors for
what we have learnt during our MRP-II project. A good response, feedback and co-operation
given by whole staff helped out in gaining knowledge and solving our queries.
The successful completion of this project could not have been possible without the co-
operation and support of our faculty guide and investors who have given complete
information for the project.
We feel immense pleasure to thank Prof. (Dr.) Mahendra Sharma, Principal, V.M.Patel
institute of management, Ganpat University, Kherva. For making available all facilities in
fulfilling the requirements for the research work.
We forward our appreciation to respected coordinator of the V.M.Patel institute of
management form Prof. Jayesh Patel & Dipesh Dasani.
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EXECUTIVE SUMMARY
Starting out as an industry with a single player, the UTI, in 1963, the mutual fund industry in
India has come a long way since then. Today, close to 30 players, offering over 460 schemes,
dot the industry landscape. The industry has gained enormously in size as reflected in its
assets under management which now stand at a whopping Rs.1,75,918 cr., as on July 31,
2005 from Rs.1,00,000 crore in early 2000.
Further, the emergence of Mehsana city a major investment destination has done a world of
good to the mutual fund industry in an India as it is witnessing entry of many big names in
the global investment management business. The entry of major global players like Morgan
Stanley, Principal, Sunlife, and Fidelity, while Vanguard is mulling over its India debut,
augurs well for the industry as not only these global investment management firms bring with
them the expertise gained internationally but also bring the best international practices in
terms of performances and investor services which will benefit the industry and will go a
long way in helping it catch up with its counter parts in developed markets like the US and
the UK.
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TABLE OF CONTENTS
Sr No. PARTICULARS PAGE No.
Certificate by the Guide II
Candidate’s Statement III
Preface IV
Acknowledgments V
Executives summary VI
1 Introduction of Mutual Fund 1
1.1 What is Mutual Fund? 2
1.2 Concept of Mutual Fund 4
1.3 History of the Mutual Fund Industry 5
1.4 Global scenario 8
1.5 Organisation of Mutual Fund 9
1.6 Process of Mutual Fund 11
1.7 How to invest in Mutual Fund? 12
1.8 Regulatory Of mutual fund in India 13
1.9 Types of Mutual Fund schemes 14
1.10 Procedure for registering a Mutual fund with SEBI 17
1.11 SEBI registered Mutual Fund Companies 18
1.12 Pointers to measure Mutual Fund performance 20
1.13 How to reduce risk while investing? 21
1.14 Advantages of Mutual fund 23
1.15 Disadvantages 24
2 Literature Review 26
3 Research Methodology 29
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4 Data analysis & interpretation 32
4.1 Chi-Square Test 33
4.2 Anova Test 34
5 Findings 115
6 Recommendations 117
7 Conclusion 119
8 Limitations of the study 121
9 Bibliography 123
Annexure 125
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1.1 WHAT IS A MUTUAL FUND?
Mutual fund is an investment company that pools money from shareholders and invests in a
variety of securities, such as stocks, bonds and money market instruments. Most open-end
Mutual funds stand ready to buy back (redeem) its shares at their current net asset value, which
depends on the total market value of the fund's investment portfolio at the time of redemption.
Most open-end Mutual funds continuously offer new shares to investors. Also known as an open-
end investment company, to differentiate it from a closed-end investment company. Mutual funds
invest pooled cash of many investors to meet the fund's stated investment objective. Mutual
funds stand ready to sell and redeem their shares at any time at the fund's current net
asset value: total fund assets divided by shares outstanding.
Figure 1.1: Investment Flow
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In Simple Words, 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 profits or losses are shared by the
investors in proportion to their investments. The Mutual funds normally come out with a number
of schemes with different investment objectives which are launched from time to time.
In India, A Mutual fund is required to be registered with Securities and Exchange Board of India
(SEBI) which regulates securities markets before it can collect funds from the public. In Short, a
Mutual fund is a common pool of money in to which investors with common investment
objective place their contributions that are to be invested in accordance with the stated
investment objective of the scheme.
The investment manager would invest the money collected from the investor in to assets that are
defined/ permitted by the stated objective of the scheme. For example, an equity fund would
invest equity and equity related instruments and a debt fund would invest in bonds, debentures,
gilts etc. Mutual fund is a 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
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1.2 CONCEPT OF THE MUTUAL FUND
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 appreciations realized are 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. The flow chart below describes broadly the working of a mutual fund:
Figure 1.2 Working of mutual fund
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1.3 HISTORY OF THE MUTUAL FUND INDUSTRY
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 history of mutual funds in
India can be broadly divided into four distinct phases
Figure 1.3 Phase of mutual fund industry in India
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.6,700crores of assets under management.
Phases Of Mutual Fund
Industry In India
Phase I
Phase II
Phase III
Phase IV
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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 Can bank 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 cr.
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 has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs.
1,21,805crores. The Unit Trust of India with Rs.44,541crores 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.29,835crores as at the end of January 2003,
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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 framed by Government of India and 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.76,000crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund Regulations, and with recent mergers taking place among different private sector funds,
the mutual fund industry has entered its current phase of consolidation and growth. As at the
end of September, 2004, there were 29 funds, which manage assets of Rs.153108 crores under
421 schemes.
The graph indicates the growth of assets over the years.
Chart 1.1: Growth in Assets under management
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1.4 GLOBAL SCENARIO:
The money market fund segment has a total corpus of $1.48 trillion in the US against a corpus
of $100 million in India.
Out of the top 10 mutual funds worldwide, eight are bank sponsored. Only Fidelity and
capital are non-bank mutual funds in this group.
In the US the total number of schemes is higher than that of the listed companies while in
India we have just 277 schemes.
Internationally, mutual funds are allowed to go short. In India fund managers do not have
such leeway.
In the US about 9.7 million households will manage their asset on- line by the year 2003, such
a facility is not yet of avail in India.
On-line trading is great idea to reduce management expenses from the current 2% of total
assets to about 0.75% of the total asset.
72% of the core customer base of mutual funds in the top 50-broking firms in the US where
expected to trade on line by-2003.
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THE STRUCTURE CONSISTS OF
Sponsor
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Fund) Regulations, 1996. The sponsor is not responsible or
liable for any loss or shortfall resulting from the operation of the Schemes beyond the initial
contribution made by it towards setting up of the Mutual Fund.
Trust
The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian Trusts
Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration Act, 1908.
Trustee
Trustee is usually a company (corporate body) or a Board of Trustees (body of individuals). The
main responsibility of the Trustee is to safeguard the interest of the unit holders and ensure that
the AMC functions in the interest of investors and in accordance with the Securities and
Exchange Board of India (Mutual Funds) Regulations, 1996, the provisions of the Trust Deed
and the Offer Documents of the respective Schemes. At least 2/3rd directors of the Trustee are
independent directors who are not associated with the Sponsor in any manner.
Asset Management Company (AMC)
The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The AMC
is required to be approved by the Securities and Exchange Board of India (SEBI) to act as an
asset management company of the Mutual Fund. At least 50% of the directors of the AMC are
independent directors who are not associated with the Sponsor in any manner. The AMC must
have a net worth of at least 10 cores at all times.
Registrar and transfer agent
The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form, redemption requests and dispatches
account statements to the unit holders. The Registrar and Transfer agent also handles
communications with investors and updates investor records.
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1.6 PROCESS OF MUTUAL FUND
Figure 1.5: Process of mutual fund
In the above graph shows how Mutual Fund works and how investor earns money by investing in
the Mutual Fund. Investors put their saving as an investment in Mutual Fund. The Fund Manager
who is a person who takes the decisions where the money should be invested in securities
according to the scheme’s objective. Securities include Equities, Debentures, Govt. Securities,
Bonds, and Commercial Paper etc. These Securities generates returns to the Fund Manager. The
Fund Manager passes back return to the investor.
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1.7 HOW TO INVEST IN MUTUAL FUND?
Mutual funds normally come out with an advertisement in newspapers publishing the date of
launch of the new schemes. Investors can also contact the agents and distributors of mutual funds
who are spread all over the country for necessary information and application forms. Forms can
be deposited with mutual funds through the agents and distributors who provide such services.
Now days, the post offices and banks also distribute the units of mutual funds. However, the
investors may please note that the mutual funds schemes being marketed by banks and post
offices should not be taken as their own schemes and no assurance of returns is given by them.
The only role of banks and post offices is to help in. distribution of mutual funds schemes to the
investors. Investors should not be carried away by commission/gifts given by agents/distributors
for investing in a particular scheme. On the other hand they must consider the track record of the
mutual fund and should take objective decision.
• One time investment
The amount that has to be invested in onetime is known as Onetime Investment. The investor has
to pay the whole amount at once. The minimum amount is Rs. 5000 and maximum is as per the
investor’s Choice. This investment is generally preferred for the business man who is able to pay
at one time.
• Systematic investment plan (SIP)
The amount that has to be invested through same monthly installment is known as Systematic
Investment Plan. The investor has to pay the minimum amount Rs.1000 monthly for all equity
and balanced schemes like that for 6months. And Rs.500 monthly for Tax Saver scheme like that
for 12 months. The minimum amount that the investor has to invest is Rs6000 and maximum as
per their choice. This type of investment is generally preferred for the salaried people.
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1.8 REGULATORY OF MUTUAL FUND IN INDIA
• SEBI
The capital market regulates the mutual funds in India. SEBI requires all mutual funds to be
registered with them. SEBI issues guidelines for all mutual funds operations-investment,
accounts, expenses etc. Recently, it has been decided that Money Market Mutual Funds of
registered mutual funds will be regulated by SEBI through (Mutual Fund) Regulations 1996.
• RBI
RBI, a supervisor of the Banks owned Mutual Funds-As banks in India come under the
regulatory Jurisdiction of RBI, banks owned funds to be under supervision of RBI and SEBI.
RBI has supervisory responsibility over all entities that operate in the money markets.
• Ministry of finance (MOF)
Ministry of Finance ultimately supervises both the RBI and the SEBI and plays the role of
apex authority for any major disputes over SEBI guidelines.
• Company low board
Registrar of companies is called Company Low Board. AMCs of Mutual Funds are
companies registered under the companies Act 1956 and therefore answerable to regulatory
authorities empowered by the Companies Act.
• Stock exchange
Stock Exchanges are Self-regulatory organizations supervised by SEBI. Many closed ended
funds of AMCs are listed as stock exchanges and are traded like shares.
• Office of the public trustee
Mutual Fund being public trust is governed y the Indian Trust Act 1882. The Board of trustee
or the Trustees Company is accountable to the office of public trustee, which in turn reports
to the Charity commissioner.
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1.9TYPES OF MUTUAL FUND SCHEMES
1. By structure
1.1. Open – Ended Schemes.
1.2. Close – Ended Schemes.
1.3. Interval Schemes.
2. By investment objective
2.1. Growth Schemes.
2.2. Income Schemes.
2.3. Balanced Schemes.
3. Other schemes
3.1. Tax Saving Schemes.
3.2. Special Schemes.
3.3. Index Schemes.
3.4. Sector Specific Schemes.
1.1 Open – ended schemes
The units offered by these schemes are available for sale and repurchase on any business day at
NAV based prices. Hence, the unit capital of the schemes keeps changing each day. Such
schemes thus offer very high liquidity to investors and are becoming increasingly popular in
India. Please note that an open-ended fund is NOT obliged to keep selling/issuing new units at all
times, and may stop issuing further subscription to new investors. On the other hand, an open-
ended fund rarely denies to its investor the facility to redeem existing units.
1.2 Closed – ended schemes
The unit capital of a close-ended product is fixed as it makes a one-time sale of fixed number of
units. These schemes are launched with an initial public offer (IPO) with a stated maturity period
after which the units are fully redeemed at NAV linked prices. In the interim, investors can buy
or sell units on the stock exchanges where they are listed. Unlike open-ended schemes, the unit
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capital in closed-ended schemes usually remains unchanged. After an initial closed period, the
scheme may offer direct repurchase facility to the investors. Closed-ended schemes are usually
more illiquid as compared to open-ended schemes and hence trade at a discount to the NAV. This
discount tends towards the NAV closer to the maturity date of the scheme.
1.3 Interval schemes
These schemes combine the features of open-ended and closed-ended schemes. They may be
traded on the stock exchange or may be open for sale or redemption during pre-determined
intervals at NAV based prices.
2.1 Growth schemes
These schemes, also commonly called Equity Schemes, seek to invest a majority of their funds in
equities and a small portion in money market instruments. Such schemes have the potential to
deliver superior returns over the long term. However, because they invest in equities, these
schemes are exposed to fluctuations in value especially in the short term.
2.2Income schemes
These schemes, also commonly called Debt Schemes, invest in debt securities such as corporate
bonds, debentures and government securities. The prices of these schemes tend to be more stable
compared with equity schemes and most of the returns to the investors are generated through
dividends or steady capital appreciation. These schemes are ideal for conservative investors or
those not in a position to take higher equity risks, such as retired individuals. However, as
compared to the money market schemes they do have a higher price fluctuation risk and
compared to a Gilt fund they have a higher credit risk.
2.3Balanced schemes
These schemes are commonly known as Hybrid schemes. These schemes invest in both equities
as well as debt. By investing in a mix of this nature, balanced schemes seek to attain the objective
of income and moderate capital appreciation and are ideal for investors with a conservative, long-
term orientation.
3.1 Tax saving schemes
Investors are being encouraged to invest in equity markets through Equity Linked Savings
Scheme (“ELSS”) by offering them a tax rebate. Units purchased cannot be assigned /
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transferred/ pledged / redeemed / switched – out until completion of 3 years from the date of
allotment of the respective Units.
The Scheme is subject to Securities & Exchange Board of India (Mutual Funds) Regulations,
1996 and the notifications issued by the Ministry of Finance (Department of Economic Affairs),
Government of India regarding ELSS.
Subject to such conditions and limitations, as prescribed under Section 88 of the Income-tax Act,
1961.
3.2 Index schemes
The primary purpose of an Index is to serve as a measure of the performance of the market as a
whole, or a specific sector of the market. An Index also serves as a relevant benchmark to
evaluate the performance of mutual funds. Some investors are interested in investing in the
market in general rather than investing in any specific fund. Such investors are happy to receive
the returns posted by the markets. As it is not practical to invest in each and every stock in the
market in proportion to its size, these investors are comfortable investing in a fund that they
believe is a good representative of the entire market. Index Funds are launched and managed for
such investors.
3.3Sector specific schemes
Sector Specific Schemes generally invests money in some specified sectors for example: “Real
Estate” Specialized real estate funds would invest in real estates directly, or may fund real estate
developers or lend to them directly or buy shares of housing finance companies or may even buy
their securitized assets.
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1.10 WHAT IS THE PROCEDURE FOR REGISTERING A MUTUAL FUND
WITH SEBI?
An applicant proposing to sponsor a Mutual fund in India must submit an application in Form A
along with a fee of Rs.25, 000. The application is examined and once the sponsor satisfies certain
conditions such as being in the financial services business and possessing positive net worth for
the last five years, having net profit in three out of the last five years and possessing the general
reputation of fairness and integrity in all business transactions, it is required to complete the
remaining formalities for setting up a Mutual fund.
These include inter alia, executing the trust deed and investment management agreement, setting
up a trustee company/board of trustees comprising two- thirds independent trustees,
incorporating the asset management company (AMC), contributing to at least 40% of the net
worth of the AMC and appointing a custodian. Upon satisfying these conditions, the registration
certificate is issued subject to the payment of registration fees of Rs.25.00 lacs for details; see the
SEBI (Mutual funds) Regulations, 1996.
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1.11 SEBI REGISTERED MUTUAL FUND
1. FORTIS Mutual fund
2. Alliance Capital Mutual fund,
3. AIG Global Investment Group Mutual fund
4. Benchmark Mutual fund,
5. Baroda Pioneer Mutual fund
6. Birla Mutual fund
7. Bharti AXA Mutual fund
8. CanaraRobeco Mutual fund
9. CRB Mutual fund (Suspended)
10. DBS Chola Mutual fund,
11. Deutsche Mutual fund
12. DSP Blackrock Mutual fund,
13. Edelweiss Mutual fund
14. Escorts Mutual fund,
15. Franklin Templeton Mutual fund
16. Fidelity Mutual fund
17. Goldman Sachs Mutual fund
18. HDFC Mutual fund,
19. HSBC Mutual fund,
20. ICICI Securities Fund,
21. IL & FS Mutual fund,
22. ING Mutual fund,
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23. ICICI Prudential Mutual fund
24. IDFC Mutual fund,
25. JM Financial Mutual fund
26. JP Morgan Mutual fund
27. Kotak Mahindra Mutual fund,
29. LIC Mutual fund
31. Morgan Stanley Mutual fund
32. Mirae Asset Mutual fund
33. Principal Mutual fund
34. Quantum Mutual fund,
35. Reliance Mutual fund
36. Religare AEGON Mutual fund
37. Sahara Mutual fund,
38. SBI Mutual fund
39. Shriram Mutual fund
40. Sundaram BNP Paribas Mutual fund,
41. Taurus Mutual fund
42. Tata Mutual fund,
43. UTI Mutual fund
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1.12 POINTERS TO MEASURE MUTUAL FUND PERFORMANCE
MEASURES DESCRIPTION IDEAL RANGE
STANDARD
DEVIATION
Standard Deviation allows evaluating the volatility of the
fund. The standard deviation of a fund measures this risk
by measuring the degree to which the fund fluctuates in
relation to its mean return.
Should be near to it’s
mean return.
BETA Beta is a fairly commonly used measure of risk. It
basically indicates the level of volatility associated with
the fund as compared to the benchmark.
Beta > 1 = high risky
Beta = 1 = Average
Beta <1 = Low Risky
R-SQUARE R- square measures the correlation of a fund’s movement
to that of an index. R-squared describes the level of
association between the fund's volatility and market risk.
R-squared values
range between 0 and 1,
where 0 represents no
correlation and 1
represents full
correlation.
ALPHA Alpha is the difference between the returns one would
expect from a fund, given its beta, and the return it
actually produces. It also measures the unsystematic risk.
Alpha is positive =
returns of stock are
better then market
returns.
Alpha is negative =
returns of stock are
worst then market.
Alpha is zero = returns
are same as market.
SHARPE
RATIO Sharpe Ratio= Fund return in excess of risk free return/
Standard deviation of Fund. Sharpe ratios are ideal for
comparing funds that have a mixed asset classes.
The higher the Sharpe
ratio, the better a funds
returns relative to the
amount of risk taken.
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1.13 HOW TO REDUCE RISK WHILE INVESTING?
Any kind of investment we make is subject to risk. In fact we get return on our investment purely and
solely because at the very beginning we take the risk of parting with our funds, for getting higher
value back at a later date. Partition itself is a risk.
Well known economist and Nobel Prize recipient William Sharpe tried to segregate the total risk
faced in any kind of investment into two parts - systematic (Systemic) risk and unsystematic
(Unsystematic) risk.
Systematic risk is that risk which exists in the system. Some of the biggest examples of systematic
risk are inflation, recession, war, political situation etc.
Inflation erodes returns generated from all investments e.g. If return from fixed deposit is 8 per cent
and if inflation is 6 per cent then real rate of return from fixed deposit is reduced by 6 per cent.
Similarly if returns generated from equity market is 18 per cent and inflation is still 6 per cent then
equity returns will be lesser by the rate of inflation. Since inflation exists in the system there is no
way one can stay away from the risk of inflation.
Economic cycles, war and political situations have effects on all forms of investments. Also these
exist in the system and there is no way to stay away from them. It is like learning to walk.
Anyone who wants to learn to walk has to first fall; you cannot learn to walk without falling.
Similarly anyone who wants to invest has to first face systematic risk; there can never make any kind
of investment without systematic risk.
Another form of risk is unsystematic risk. This risk does not exist in the system and hence is not
applicable to all forms of investment. Unsystematic risk is associated with particular form of
investment.
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Suppose we invest in stock market and the market falls, then only our investment in equity gets
affected OR if we have placed a fixed deposit in particular bank and bank goes bankrupt, than we
only lose money placed in that bank.
While there is no way to keep away from risk, we can always reduce the impact of risk.
Diversification helps in reducing the impact of unsystematic risk. If our investment is distributed
across various asset classes the impact of unsystematic risk is reduced.
If we have placed fixed deposit in several banks, then even if one of the banks goes bankrupt our
entire fixed deposit investment is not lost.
Similarly if our equity investment is in Tata Motors, HLL, Infosys, adverse news about Infosys will
only impact investment in Infosys, all other stocks will not have any impact.
To reduce the impact of systematic risk, we should invest regularly. By investing regularly we
average out the impact of risk.
Mutual fund, as an investment vehicle gives us benefit of both diversification and averaging.
Portfolio of mutual funds consists of multiple securities and hence adverse news about single security
will have nominal impact on overall portfolio.
By systematically investing in mutual fund we get benefit of rupee cost averaging.
23
1.14 ADVANTAGES OF MUTUAL FUNDS
Figure 1.6 Advantages of mutual fund
Professional Management
The major advantage of investing in a mutual fund is that you get a professional money manager to
manage your investments for a small fee. You can leave the investment decisions to him and only
have to monitor the performance of the fund at regular intervals.
Diversification
Considered the essential tool in risk management, mutual funds make it possible for even small
investors to diversify their portfolio. A mutual fund can effectively diversify its portfolio because of
the large corpus. However, a small investor cannot have a well-diversified portfolio because it calls
for large investment. For example, a modest portfolio of 10 bluechip stocks calls for a few a few
thousands.
Convenient Administration
Mutual funds offer tailor-made solutions like systematic investment plans and systematic withdrawal
plans to investors, which is very convenient to investors. Investors also do not have to worry about
investment decisions, they do not have to deal with brokerage or depository, etc. for buying or selling
of securities. Mutual funds also offer specialized schemes like retirement plans, children’s plans,
industry specific schemes, etc. to suit personal preference of investors. These schemes also help small
investors with asset allocation of their corpus. It also saves a lot of paper work.
Regulation
Tex Benefit
Professional Mngt
Variety
Diversification
Affordability
24
Costs Effectiveness
A small investor will find that the mutual fund route is a cost-effective method (the AMC fee is
normally 2.5%) and it also saves a lot of transaction cost as mutual funds get concession from
brokerages. Also, the investor gets the service of a financial professional for a very small fee. If he
were to seek a financial advisor's help directly, he will end up paying significantly more for
investment advice. Also, he will need to have a sizeable corpus to offer for investment management to
be eligible for an investment adviser’s services.
Liquidity
You can liquidate your investments within 3 to 5 working days (mutual funds dispatch redemption
cheques speedily and also offer direct credit facility into your bank account i.e. Electronic Clearing
Services).
Transparency
Mutual funds offer daily NAVs of schemes, which help you to monitor your investments on a regular
basis. They also send quarterly newsletters, which give details of the portfolio, performance of
schemes against various benchmarks, etc. They are also well regulated and Sebi monitors their actions
closely.
Tax benefits
You do not have to pay any taxes on dividends issued by mutual funds. You also have the advantage
of capital gains taxation. Tax-saving schemes and pension schemes give you the added advantage of
benefits under section 88.
Affordability
Mutual funds allow you to invest small sums. For instance, if you want to buy a portfolio of blue
chips of modest size, you should at least have a few lakhs of rupees. A mutual fund gives you the
same portfolio for meager investment of Rs.1,000-5,000. A mutual fund can do that because it
collects money from many people and it has a large corpus.
25
1.15 DISADVANTAGES OF MUTUAL FUNDS
Professional Management-
Did you notice how we qualified the advantage of professional management with the word
"theoretically"? Many investors debate over whether or not the so-called professionals are any better
than you or I at picking stocks. Management is by no means infallible, and, even if the fund loses
money, the manager still takes his/her cut. We'll talk about this in detail in a later section.
Costs
Mutual funds don't exist solely to make your life easier--all funds are in it for a profit. The Mutual
fund industry is masterful at burying costs under layers of jargon. These costs are so complicated that
in this tutorial we have devoted an entire section to the subject.
Dilution
It's possible to have too much diversification (this is explained in our article entitled "Are You Over-
Diversified?"). Because funds have small holdings in so many different companies, high returns from
a few investments often don't make much difference on the overall return. Dilution is also the result of
a successful fund getting too big. When money pours into funds that have had strong success, the
manager often has trouble finding a good investment for all the new money.
Taxes
When making decisions about your money, fund managers don't consider your personal tax situation.
For example, when a fund manager sells a security, a capital-gain tax is triggered, which affects how
profitable the individual is from the sale. It might have been more advantageous for the individual to
defer the capital gains liability.
Equity funds
If selected in the right manner and in the right proportion, have the ability to play an important role in
achieving most long-term objectives of investors in different segments. While the selection process
becomes much easier if you get advice from professionals, it is equally important to know certain
aspects of equity investing yourself to do justice to your hard earned money.
27
LITERATURE REVIEW
Literature on mutual fund performance evaluation is enormous. A few research studies that have
influenced the preparation of this paper substantially are discussed in this section.
Sharpe, William F. (1966) suggested a measure for the evaluation of portfolio performance. Drawing
on results obtained in the field of portfolio analysis, economist Jack L. Treynor has suggested a new
predictor of mutual fund performance, one that differs from virtually all those used previously by
incorporating the volatility of a fund's return in a simple yet meaningful manner.
Michael C. Jensen (1967) derived a risk-adjusted measure of portfolio performance (Jensen’s alpha)
that estimates how much a manager’s forecasting ability contributes to fund’s returns.
As indicated by Statman (2000), the e SDAR of a fund portfolio is the excess return of the portfolio
over the return of the benchmark index, where the portfolio is leveraged to have the benchmark
index’s standard deviation.
S.Narayan Rao, evaluated performance of Indian mutual funds in a bear market through relative
performance index, risk-return analysis, Treynor’s ratio, Sharpe’s ratio, Sharpe’s measure , Jensen’s
measure, and Fama’s measure. The study used 269 open-ended schemes (out of total schemes of 433)
for computing relative performance index. Then after excluding funds whose returns are less than
risk-free returns, 58 schemes are finally used for further analysis. The results of performance
measures suggest that most of mutual fund schemes in the sample of 58 were able to satisfy investor’s
expectations by giving excess returns over expected returns based on both premium for systematic
risk and total risk. Bijan Roy, et. al., conducted an empirical study on conditional performance of
Indian mutual funds. This paper uses a technique called conditional performance evaluation on a
sample of eighty-nine Indian mutual fund schemes .This paper measures the performance of various
mutual funds with both unconditional and conditional form of CAPM, Treynor- Mazuy model and
Henriksson-Merton model. The effect of incorporating lagged information variables into the
evaluation of mutual fund managers’ performance is examined in the Indian context. The results
suggest that the use of conditioning lagged information variables improves the performance of mutual
fund schemes, causing alphas to shift towards right and reducing the number of negative timing
coefficients. Mishra, et al., (2002) measured mutual fund performance using lower partial moment. In
this paper, measures of evaluating portfolio performance based on lower partial moment are
developed. Risk from the lower partial moment is measured by taking into account only those states
in which return is below a pre-specified “target rate” like risk-free rate. KshamaFernandes(2003)
28
evaluated index fund implementation in India. In this paper, tracking error of index funds in India is
measured.
The consistency and level of tracking errors obtained by some well-run index fund suggests that it is
possible to attain low levels of tracking error under Indian conditions. At the same time, there do
seem to be periods where certain index funds appear to depart from the discipline of indexation. K.
Pendaraki et al. studied construction of mutual fund portfolios, developed a multi-criteria
methodology and applied it to the Greek market of equity mutual funds. The methodology is based on
the combination of discrete and continuous multi-criteria decision aid methods for mutual fund
selection and composition. UTADIS multi-criteria decision aid method is employed in order to
develop mutual fund’s performance models. Goal programming model is employed to determine
proportion of selected mutual funds in the final
portfolios.
ZakriY.Bello (2005) matched a sample of socially responsible stock mutual funds matched
to randomly selected conventional funds of similar net assets to investigate differences in
characteristics of assets held, degree of portfolio diversification and variable effects of diversification
on investment performance. The study found that socially responsible funds do not differ significantly
from conventional funds in terms of any of these attributes. Moreover, the effect of diversification on
investment performance is not different between the two groups. Both groups underperformed the
Domini 400 Social Index and S & P 500 during the study period.
30
RESEARCH PROPOSAL
Main Objective:
“Awareness of Mutual Fund among Investors of Mehsana City”
The Indian mutual fund industry is a very large industry consisting of number of investors. In this era
of competition different investor’s have different investment objectives. As the human behavior is
unpredictable, this study helps in finding out the necessary facts regarding investors’ opinion and
perceptions regarding mutual fund investment. The main objectives of the study are:
1. To study the growth of mutual fund industry in India.
2. To analyze the investors awareness and perception regarding investing in mutual funds.
3. To find out the investors opinion regarding major deficiencies in the working of the mutual fund
industry
4. To find out the suggestions from the investors that can help in plugging out these deficiencies
31
Research Methodology
3.1 Research Design
Descriptive study
Descriptive studies are under taken in many circumstances. When the researcher is interested in
knowing the characteristics of certain group such as age, gender, occupation, educational level or
income, a descriptive study may be necessary. Other cases when a descriptive study could be taken up
are when researcher is interested in knowing the proportion of people in a given population who are
investing in mutual fund a particular manner or determining the relationship between two or more
variables. The objective of such a study is to answer the “who, what, when, where and how” of the
subject under investigation.
3.2 Population Definition
The target population was the investors and non- investors of Mehsana city.
3.3 Sampling Frame
In these of type research study we cannot use sampling frame.
3.4 Sampling Size
This research consists of the 280 sample size for undergone this research project.
3.5 Sampling Method
In these research study we use convince non-probability sampling method for fill the Questionnaire.
3.6 Approach
Survey approach using questionnaire.
3.7 Measure Used
For conducting this research we are used structure questionnaire in which we are used the different
scales for collecting the information.
3.8 Area of the study
The research has been conducted in Mehsana city.
33
Chi-Square Test:- 1. BASED ON GENDER (Q-)
Ho: There is no significant difference between gender and preference of investment.
H1: There is significant difference between gender and preference of investment.
Test Statistics Gender Where do you prefer to invest your money?
Chi-Square 11.200a 213.250b df 1 4 Asymp. Sig. .001 .000
INTERPRETATION:
The significant level is less than 0.05 so that alternative hypothesis is accepted and the null hypothesis is rejected. Therefore we can say that there is no significantly difference between gender and preference of investment.
34
ANOVA TEST:-
4.1BASED ON AGE
4.1.1
Ho: There is no significant difference between age and aware of the mutual fund investment.
H1: There is significant difference between age and aware of the mutual fund investment.
ANOVA I am aware of the Mutual Fund Investment.
Sum of Squares df Mean Square F Sig.
Between Groups 2.069 2 1.035 .767 .465 Within Groups 373.642 277 1.349
Total 375.711 279
Descriptive
I am aware of the Mutual Fund Investment.
N Mean Std. Deviation Std. Error
18-25 27 3.44 1.086 .209 26-35 155 3.15 1.155 .093 above 36 98 3.16 1.190 .120 Total 280 3.18 1.160 .069
35
Post Hoc Tests
Multiple Comparisons I am aware of the Mutual Fund Investment. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 .296 .242 .223
above 36 .281 .252 .266
26-35 18-25 -.296 .242 .223
above 36 -.015 .150 .921
above 36 18-25 -.281 .252 .266
26-35 .015 .150 .921
INTERPRETATION:
The significant level is 0.465 which is greater than 0.05 so that alternative hypothesis is rejected and the null hypothesis is accepted. Therefore we can say that there is no significantly difference between age and the mutual investment fund.
36
4.1.2
Ho: There is no significant difference between age and mutual fund safe.
H1: There is significant difference between age and mutual fund safe.
Descriptive Mutual Fund is safe
N Mean Std.
Deviation Std. Error
18-25 27 3.70 1.203 .232 26-35 155 3.68 .979 .079 above 36 98 3.71 1.075 .109 Total 280 3.70 1.032 .062
ANOVA
Mutual Fund is safe
Sum of Squares Df Mean Square F Sig.
Between Groups .057 2 .029 .027 .974
Within Groups 297.139 277 1.073
Total 297.196 279
37
Post Hoc Tests
Multiple Comparisons Mutual Fund is safe LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 .020 .216 .927
above 36 -.011 .225 .963 26-35 18-25 -.020 .216 .927
above 36 -.030 .134 .820
above 36 18-25 .011 .225 .963 26-35 .030 .134 .820
Interpretation:
The significant level is 0.974 which is greater than 0.05 so that alternative hypothesis is rejected and the null hypothesis is accepted. Therefore we can say that there is no significantly difference between age and mutual fund safe.
38
4.1.3
Ho: There is no significant difference between age and return on mutual fund.
H1: There is significant difference between age and return on mutual fund.
Descriptive Mutual Fund gives better return than Bank Deposit.
N Mean Std. Deviation Std. Error
18-25 27 3.37 1.115 .214 26-35 155 3.22 1.130 .091 above 36 98 3.20 1.201 .121 Total 280 3.23 1.151 .069
ANOVA Mutual Fund gives better return than Bank Deposit.
Sum of Squares df Mean Square F Sig.
Between Groups .615 2 .307 .231 .794 Within Groups 368.757 277 1.331
Total 369.371 279
39
Post Hoc Tests
Multiple Comparisons Mutual Fund gives better return than Bank Deposit. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 .151 .241 .531
above 36 .166 .251 .508 26-35 18-25 -.151 .241 .531
above 36 .015 .149 .918
above 36 18-25 -.166 .251 .508 26-35 -.015 .149 .918
INTERPRETATION:
The significant level is 0.794 which is greater than 0.05 so that alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is no significantly difference
between age and return on mutual fund.
40
4.1.4
Ho: There is no significant difference between age and collection of mutual fund information.
H1: There is significant difference between age and collection of mutual fund information.
Descriptive I would like to collect information by talking to friends & relatives about mutual fund investment.
N Mean Std. Deviation Std. Error
18-25 27 3.26 1.289 .248 26-35 155 3.30 1.311 .105 above 36 98 3.24 1.277 .129 Total 280 3.28 1.293 .077
ANOVA I would like to collect information by talking to friends & relatives about mutual fund investment. Sum of
Squares df Mean Square F Sig.
Between Groups .215 2 .108 .064 .938 Within Groups 466.056 277 1.683
Total 466.271 279
41
Post Hoc Tests
Multiple Comparisons I would like to collect information by talking to friends & relatives about mutual fund investment. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 -.044 .270 .871
above 36 .014 .282 .959
26-35 18-25 .044 .270 .871 above 36 .058 .167 .728
above 36 18-25 -.014 .282 .959
26-35 -.058 .167 .728
INTERPRETATION:
The significant level is 0.938 which is greater than 0.05 so that alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is no significantly difference
between age and collection of mutual fund investment.
42
4.1.5
Ho: There is no significant difference between age and taking advice for investment decision.
H1: There is significant difference between age and taking advice for investment decision.
Descriptive I prefer to take advice from other investors for investment decision.
N Mean Std. Deviation Std. Error
18-25 27 3.30 1.137 .219 26-35 155 3.15 1.157 .093 above 36 98 3.21 1.195 .121 Total 280 3.19 1.165 .070
ANOVA I prefer to take advice from other investors for investment decision.
Sum of Squares Df Mean Square F Sig.
Between Groups
.554 2 .277 .203 .816
Within Groups 378.414 277 1.366
Total 378.968 279
43
Post Hoc Tests Multiple Comparisons I prefer to take advice from other investors for investment decision. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 .141 .244 .562
above 36 .082 .254 .747
26-35 18-25 -.141 .244 .562
above 36 -.059 .151 .694 above 36 18-25 -.082 .254 .747
26-35 .059 .151 .694
INTERPRETATION:
The significant level is 0.816 which is greater than 0.05 so that alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is no significantly difference
between age and taking advice for investment decision.
44
4.1.6
Ho: There is no significant difference between age and mutual fund in tax saving.
H1: There is significant difference between age and mutual fund in tax saving.
Descriptive
Mutual Fund helps in tax saving.
N Mean Std. Deviation Std. Error
18-25 27 2.89 1.281 .247 26-35 155 3.28 1.188 .095 above 36 98 3.27 1.127 .114 Total 280 3.24 1.178 .070
ANOVA Mutual Fund helps in tax saving.
Sum of Squares df Mean Square F Sig.
Between Groups
3.689 2 1.845 1.333 .265
Within Groups 383.278 277 1.384
Total 386.968 279
45
Post Hoc Tests
Multiple Comparisons Mutual Fund helps in tax saving. LSD
(I) Age
Mean Difference (I-J) Std. Error Sig.
18-25 26-35 -.395 .245 .108
above 36 -.376 .256 .142
26-35 18-25 .395 .245 .108 above 36 .019 .152 .903
above 36 18-25 .376 .256 .142
26-35 -.019 .152 .903
INTERPRETATION:
The significant level is 0.265 which is greater than 0.05 so that alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is no significantly difference
between age and mutual fund in tax saving.
46
4.1.7
Ho: There is no significant difference between age and mutual fund liquidity.
H1: There is significant difference between age and mutual fund liquidity.
Descriptive Mutual Fund provides better liquidity than other investment option.
N Mean Std. Deviation Std. Error
18-25 27 3.30 1.137 .219 26-35 155 3.15 1.157 .093 above 36 98 3.21 1.195 .121 Total 280 3.19 1.165 .070
ANOVA Mutual Fund provides better liquidity than other investment option.
Sum of Squares df Mean Square F Sig.
Between Groups .554 2 .277 .203 .816
Within Groups 378.414 277 1.366
Total 378.968 279
47
Post Hoc Tests
Multiple Comparisons Mutual Fund provides better liquidity than other investment option. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 .141 .244 .562
above 36 .082 .254 .747
26-35 18-25 -.141 .244 .562 above 36 -.059 .151 .694
above 36 18-25 -.082 .254 .747
26-35 .059 .151 .694
INTERPRETATION:
The significant level is 0.816 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
age and mutual fund liquidity.
48
4.1.8
Ho: There is no significant difference between age and mutual fund is diversification of portfolio.
H1: There is significant difference between age and mutual fund is diversification of portfolio.
Descriptive Mutual fund provides the diversification of portfolio.
N Mean Std. Deviation Std. Error
18-25 27 3.44 1.251 .241 26-35 155 3.55 1.070 .086 above 36 98 3.51 1.124 .114 Total 280 3.52 1.104 .066
ANOVA
Mutual fund provides the diversification of portfolio.
Sum of Squares df Mean Square F Sig.
Between Groups .281 2 .141 .115 .892
Within Groups 339.544 277 1.226
Total 339.825 279
49
Post Hoc Tests
Multiple Comparisons Mutual fund provides the diversification of portfolio. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 -.104 .231 .653
above 36 -.066 .241 .785
26-35 18-25 .104 .231 .653 above 36 .038 .143 .789
above 36 18-25 .066 .241 .785
26-35 -.038 .143 .789
INTERPRETATION:
The significant level is 0.892 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
age and mutual fund is diversification of portfolio.
50
4.1.9
Ho: There is no significant difference between age and taking information in future.
H1: There is significant difference between age and taking information in future.
ANOVA I am always interested in taking more information about mutual fund investment in future.
Sum of Squares df Mean Square F Sig.
Between Groups
.615 2 .307 .231 .794
Within Groups 368.757 277 1.331
Total 369.371 279
Descriptive I am always interested in taking more information about mutual fund investment in future.
N Mean Std. Deviation Std. Error
18-25 27 3.37 1.115 .214 26-35 155 3.22 1.130 .091 above 36 98 3.20 1.201 .121 Total 280 3.23 1.151 .069
51
Post Hoc Tests Multiple Comparisons I am always interested in taking more information about mutual fund investment in future. LSD
(I) Age (J) Age Mean Difference
(I-J) Std. Error Sig.
18-25 26-35 .151 .241 .531
above 36 .166 .251 .508 26-35 18-25 -.151 .241 .531
above 36 .015 .149 .918
above 36 18-25 -.166 .251 .508 26-35 -.015 .149 .918
INTERPRETATION:
The significant level is 0.794 which is greater than 0.05 so that alternative hypothesis is rejected and the
null hypothesis is accepted. Therefore we can say that there is no significantly difference between age
and taking information in future.
52
4.2BASED ON EDUCATION
4.2.1
Ho= There is no relation between education and awareness of mutual fund.
H1= There is relation between education and awareness of mutual fund.
Descriptive
I am aware of the Mutual Fund Investment.
N Mean Std. Deviation Std. Error
12th std 31 3.29 1.189 .213 Graduation 113 3.19 1.192 .112 post-graduation 89 3.07 1.106 .117 Other 47 3.32 1.181 .172 Total 280 3.18 1.160 .069
ANOVA
I am aware of the Mutual Fund Investment.
Sum of Squares df Mean Square F Sig.
Between Groups 2.418 3 .806 .596 .618 Within Groups 373.293 276 1.353
Total 375.711 279
53
Post- Hoc Tests I am aware of the Mutual Fund Investment. LSD
(I) Education (J) Education Mean Difference (I-
J) Std. Error Sig.
12th Std Graduation .104 .236 .658
post-graduation .223 .243 .359
Other -.029 .269 .915
Graduation 12th Std -.104 .236 .658 post-graduation .118 .165 .473
Other -.133 .202 .510
post-graduation 12th Std -.223 .243 .359 Graduation -.118 .165 .473
Other -.252 .210 .231
other 12th Std .029 .269 .915 Graduation .133 .202 .510
Post-graduation .252 .210 .231
INTERPRETATION:
The significant level is 0.618 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between Education and awareness of mutual fund.
54
4.2.2
Ho= There is no relation between education and mutual fund safety.
H1= There is relation between education and mutual fund safety.
Descriptive
Mutual Fund is safe
N Mean Std. Deviation Std. Error
12th Std 31 3.48 1.208 .217 Graduation 113 3.73 .982 .092 post-graduation 89 3.55 1.108 .117 Other 47 4.02 .794 .116 Total 280 3.70 1.032 .062
ANOVA
Mutual Fund is safe
Sum of Squares Df Mean Square F Sig.
Between Groups 8.418 3 2.806 2.682 .047 Within Groups 288.779 276 1.046
Total 297.196 279
55
Post-Hoc Tests
Mutual Fund is safe LSD
(I) Education (J) Education Mean Difference (I-J) Std. Error Sig.
12th Std Graduation -.251 .207 .228
Post-graduation -.067 .213 .755
Other -.537* .237 .024 Graduation 12th Std .251 .207 .228
Post-graduation .184 .145 .206
other -.287 .178 .107 Post-graduation 12th Std .067 .213 .755
Graduation -.184 .145 .206
other -.471* .184 .011 other 12th Std .537* .237 .024
Graduation .287 .178 .107
Post-graduation .471* .184 .011 *. The mean difference is significant at the 0.05 level.
INTERPRETATION:
The significant level is 0.047 which is less than 0.05 so the alternative hypothesis is accepted
and the null hypothesis is rejected. Therefore we can say that there is no significant difference
between Education and awareness of mutual fund.
56
4.2.3
Ho= There is no relation between education and return on mutual fund.
H1= There is relation between education and return on mutual fund.
Descriptive Mutual Fund gives better return than Bank Deposit.
N Mean Std. Deviation Std. Error
12th Std 31 3.48 1.122 .201 Graduation 113 3.23 1.180 .111 Post-graduation 89 3.06 1.101 .117 Other 47 3.38 1.171 .171 Total 280 3.23 1.151 .069
ANOVA Mutual Fund gives better return than Bank Deposit.
Sum of Squares df Mean Square F Sig.
Between Groups 5.786 3 1.929 1.464 .225 Within Groups 363.585 276 1.317
Total 369.371 279
57
Post-Hoc test
Mutual Fund gives better return than Bank Deposit. LSD
(I) Education (J) Education Mean Difference
(I-J) Std. Error Sig.
12th Std Graduation .254 .233 .276
Post-graduation .428 .239 .075
other .101 .266 .704 Graduation 12th Std -.254 .233 .276
Post-graduation .174 .163 .286
other -.153 .199 .443 Post-graduation 12th Std -.428 .239 .075
Graduation -.174 .163 .286
other -.327 .207 .115 Other 12th Std -.101 .266 .704
Graduation .153 .199 .443
Post-graduation .327 .207 .115
INTERPRETATION:
The significant level is 0.225 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between Education and return on mutual fund.
58
4.2.4
Ho= There is no relation between education and collection of mutual fund information.
H1= There is relation between education and collection of mutual fund information.
Descriptive
I would like to collect information by talking to friends & relatives about mutual fund investment.
N Mean Std. Deviation Std. Error
12th Std 31 2.94 1.263 .227 Graduation 113 3.24 1.311 .123 Post-graduation 89 3.39 1.302 .138 other 47 3.38 1.243 .181 Total 280 3.28 1.293 .077
ANOVA I would like to collect information by talking to friends & relatives about mutual fund investment. Sum of
Squares df Mean Square F Sig.
Between Groups 5.509 3 1.836 1.100 .350 Within Groups 460.762 276 1.669
Total 466.271 279
59
Post-Hoc Test
I would like to collect information by talking to friends & relatives about mutual fund investment.
(I) Education (J) Education Mean Difference
(I-J) Std. Error Sig.
12th Std Graduation -.303 .262 .248
Post-graduation -.458 .269 .090
other -.447 .299 .136 Graduation 12th Std .303 .262 .248
Post-graduation -.154 .183 .400
other -.144 .224 .521 Post-graduation 12th Std .458 .269 .090
Graduation .154 .183 .400
other .010 .233 .965 other 12th Std .447 .299 .136
Graduation .144 .224 .521
Post-graduation -.010 .233 .965
INTERPRETATION:
The significant level is 0.350 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between Education and collection of mutual fund information.
60
4.2.5
Ho= There is no relation between education and taking advice for investment decision.
H1= There is relation between education and taking advice for investment decision.
Descriptive I prefer to take advice from other investors for investment decision.
N Mean Std. Deviation Std. Error
12th Std 31 3.39 1.202 .216 Graduation 113 3.19 1.202 .113 Post-graduation 89 3.10 1.108 .117 other 47 3.21 1.178 .172 Total 280 3.19 1.165 .070
ANOVA
I prefer to take advice from other investors for investment decision.
Sum of Squares df Mean Square F Sig.
Between Groups 1.934 3 .645 .472 .702 Within Groups 377.034 276 1.366
Total 378.968 279
61
Post-Hoc Test I prefer to take advice from other investors for investment decision. LSD
(I) Education (J) Education Mean Difference
(I-J) Std. Error Sig.
12th Std Graduation .192 .237 .418
Post-graduation .286 .244 .242
other .174 .270 .520
Graduation 12th Std -.192 .237 .418 Post-graduation .094 .166 .573
other -.018 .203 .929
Post-graduation 12th Std -.286 .244 .242 Graduation -.094 .166 .573
other -.112 .211 .597
Other 12th Std -.174 .270 .520 Graduation .018 .203 .929
Post-graduation .112 .211 .597
INTERPRETATION:
The significant level is 0.702 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between Education and taking advice for investment decision.
62
4.2.6
Ho= There is no relation between education and MF as tax saving.
H1= There is relation between education and MF as tax saving.
Descriptive Mutual Fund helps in tax saving.
N Mean Std. Deviation Std. Error
12th Std 31 2.94 1.124 .202 Graduation 113 3.31 1.158 .109 Post-graduation 89 3.45 1.206 .128 Other 47 2.87 1.115 .163 Total 280 3.24 1.178 .070
ANOVA
Mutual Fund helps in tax saving.
Sum of Squares df Mean Square F Sig.
Between Groups 13.681 3 4.560 3.372 .019 Within Groups 373.287 276 1.352
Total 386.968 279
63
Post-Hoc Test
Mutual Fund helps in tax saving. LSD
(I) Education (J) Education Mean Difference
(I-J) Std. Error Sig.
12th Std Graduation -.374 .236 .114
Post-graduation -.514* .243 .035
other .063 .269 .815 Graduation 12th Std .374 .236 .114
Post-graduation -.140 .165 .397
other .437* .202 .031 Post-graduation 12th Std .514* .243 .035
Graduation .140 .165 .397
other .577* .210 .006 other 12th Std -.063 .269 .815
Graduation -.437* .202 .031
Post-graduation -.577* .210 .006 *. The mean difference is significant at the 0.05 level.
INTERPRETATION:
The significant level is 0.019 which is less than 0.05 so the alternative hypothesis is accepted
and the null hypothesis is a rejected. Therefore we can say that there is a significant difference
between Education and MF as tax saving.
64
4.2.7
Ho= There is no relation between education and MF liquidity.
H1= There is relation between education and MF liquidity.
Descriptive
Mutual Fund provides better liquidity than other investment option.
N Mean Std. Deviation Std. Error
12th Std 31 3.39 1.202 .216 Graduation 113 3.19 1.202 .113 Post-graduation 89 3.10 1.108 .117 other 47 3.21 1.178 .172 Total 280 3.19 1.165 .070
ANOVA Mutual Fund provides better liquidity than other investment option.
Sum of Squares df Mean Square F Sig.
Between Groups 1.934 3 .645 .472 .702 Within Groups 377.034 276 1.366
Total 378.968 279
65
Post-Hoc Test
Mutual Fund provides better liquidity than other investment option. LSD
(I) Education (J) Education Mean Difference
(I-J) Std. Error Sig.
12th Std Graduation .192 .237 .418
Post-graduation .286 .244 .242
other .174 .270 .520 Graduation 12th Std -.192 .237 .418
Post-graduation .094 .166 .573
other -.018 .203 .929 Post-graduation 12th Std -.286 .244 .242
Graduation -.094 .166 .573
other -.112 .211 .597 Other 12th Std -.174 .270 .520
Graduation .018 .203 .929
Post-graduation .112 .211 .597
INTERPRETATION:
The significant level is 0.702 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between Education and MF liquidity.
66
4.2.8
Ho= There is no relation between education and MF in diversification of portfolio.
H1= There is relation between education and MF in diversification of portfolio.
Descriptive Mutual fund provides the diversification of portfolio.
N Mean Std. Deviation Std. Error
12th Std 31 3.52 1.092 .196 Graduation 113 3.62 1.046 .098 Post-graduation 89 3.28 1.187 .126 other 47 3.77 1.026 .150 Total 280 3.52 1.104 .066
ANOVA Mutual fund provides the diversification of portfolio.
Sum of Squares df Mean Square F Sig.
Between Groups 9.043 3 3.014 2.515 .045 Within Groups 330.782 276 1.198
Total 339.825 279
67
Post-Hoc Test Mutual fund provides the diversification of portfolio. LSD
(I) Education (J) Education
Mean Difference (I-
J) Std. Error Sig.
12th Std Graduation -.103 .222 .642
Post-graduation .235 .228 .304
other -.250 .253 .325 Graduation 12th Std .103 .222 .642
Post-graduation .339* .155 .030
other -.146 .190 .441 Post-graduation 12th Std -.235 .228 .304
Graduation -.339* .155 .030
other -.485* .197 .015 other 12th Std .250 .253 .325
Graduation .146 .190 .441
Post-graduation .485* .197 .015 *. The mean difference is significant at the 0.05 level.
INTERPRETATION:
The significant level is 0.045 which is less than 0.05 so the alternative hypothesis is accepted
and the null hypothesis isrejected. Therefore we can say that there no significant difference
between Education and MF in diversification of portfolio.
68
4.2.9
Ho= There is no relation between education and taking information in future.
H1= There is relation between education and taking information in future.
Descriptive
I am always interested in taking more information about mutual fund investment in future.
N Mean Std. Deviation Std. Error
12th Std 31 3.48 1.122 .201 Graduation 113 3.23 1.180 .111 Post-graduation 89 3.06 1.101 .117 Other 47 3.38 1.171 .171 Total 280 3.23 1.151 .069
ANOVA
I am always interested in taking more information about mutual fund investment in future. Sum of Squares df Mean Square F Sig.
Between Groups 5.786 3 1.929 1.464 .225 Within Groups 363.585 276 1.317
Total 369.371 279
69
Post-Hoc Test
I am always interested in taking more information about mutual fund investment in future.
(I) Education (J) Education
Mean Difference (I-
J) Std. Error Sig.
12th Std Graduation .254 .233 .276
Post-graduation .428 .239 .075
Other .101 .266 .704
Graduation 12th Std -.254 .233 .276 Post-graduation .174 .163 .286
Other -.153 .199 .443
Post-graduation 12th Std -.428 .239 .075 Graduation -.174 .163 .286
Other -.327 .207 .115
other 12th Std -.101 .266 .704 Graduation .153 .199 .443
Post-graduation .327 .207 .115
INTERPRETATION:
The significant level is 0.225 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between Education and taking information of mutual fund in future.
70
4.3 OCCUPATION
4.3.1
Ho: There is no significant difference between occupation and awareness of mutual fund.
H1: There is significant difference between occupation and awareness of mutual fund.
Descriptive
I am aware of the Mutual Fund Investment.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.00 1.236 .165 student 36 3.06 1.094 .182 part time employees 33 2.79 1.193 .208 full time employees 75 3.45 1.017 .117 professional 50 3.26 1.209 .171 other 30 3.30 1.208 .221 Total 280 3.18 1.160 .069
ANOVA
I am aware of the Mutual Fund Investment.
Sum of Squares df Mean Square F Sig.
Between Groups 13.800 5 2.760 2.090 .067 Within Groups 361.911 274 1.321
Total 375.711 279
71
Post-Hoc Test I am aware of the Mutual Fund Investment. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student -.056 .246 .821
part time employees .212 .252 .401
full time employees -.453* .203 .026
professional -.260 .224 .246
other -.300 .260 .250
student businessmen/women .056 .246 .821 part time employees .268 .277 .335
full time employees -.398 .233 .089
professional -.204 .251 .416 other -.244 .284 .390
part time employees businessmen/women -.212 .252 .401
student -.268 .277 .335 full time employees -.665* .240 .006
professional -.472 .258 .068
other -.512 .290 .078 full time employees businessmen/women .453* .203 .026
student .398 .233 .089
part time employees .665* .240 .006 professional .193 .210 .358
other .153 .248 .537
professional businessmen/women .260 .224 .246 student .204 .251 .416
part time employees .472 .258 .068
full time employees -.193 .210 .358 other -.040 .265 .880
other businessmen/women .300 .260 .250
student .244 .284 .390 part time employees .512 .290 .078
full time employees -.153 .248 .537
professional .040 .265 .880 *. The mean difference is significant at the 0.05 level.
72
INTERPRETATION:
The significant level is 0.067 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between occupation and awareness of mutual fund.
73
4.3.2
Ho: There is no significant difference between occupation and mutual fund safety.
H1: There is significant difference between occupation and mutual fund safety.
Descriptive Mutual Fund is safe
N Mean Std. Deviation Std. Error
businessmen/women 56 3.68 1.097 .147 student 36 3.53 1.207 .201 part time employees 33 3.64 .994 .173 full time employees 75 3.85 .926 .107 professional 50 3.64 1.005 .142 other 30 3.70 1.055 .193 Total 280 3.70 1.032 .062
ANOVA Mutual Fund is safe
Sum of Squares df Mean Square F Sig.
Between Groups 3.167 5 .633 .590 .707 Within Groups 294.030 274 1.073
Total 297.196 279
74
Post-Hoc Test
Mutual Fund is safe LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student .151 .221 .496
part time employees .042 .227 .853
full time employees -.175 .183 .340
professional .039 .202 .848
other -.021 .234 .927 student businessmen/women -.151 .221 .496
part time employees -.109 .250 .664
full time employees -.326 .210 .122 professional -.112 .226 .621
other -.172 .256 .502
part time employees businessmen/women -.042 .227 .853 student .109 .250 .664
full time employees -.217 .216 .317
professional -.004 .232 .988 other -.064 .261 .808
full time employees businessmen/women .175 .183 .340
student .326 .210 .122 part time employees .217 .216 .317
professional .213 .189 .260
other .153 .224 .494 professional businessmen/women -.039 .202 .848
student .112 .226 .621
part time employees .004 .232 .988 full time employees -.213 .189 .260
other -.060 .239 .802
other businessmen/women .021 .234 .927 student .172 .256 .502
part time employees .064 .261 .808
full time employees -.153 .224 .494 professional .060 .239 .802
75
INTERPRETATION:
The significant level is 0.707 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between occupation and mutual fund safety.
76
4.3.3
Ho: There is no significant difference between occupation and return on mutual fund.
H1: There is significant difference between occupation and return on mutual fund.
Descriptive Mutual Fund gives better return than Bank Deposit.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.11 1.216 .163 student 36 3.08 1.052 .175 part time employees 33 2.97 1.212 .211 full time employees 75 3.55 .990 .114 professional 50 3.14 1.229 .174 other 30 3.27 1.230 .225 Total 280 3.23 1.151 .069
ANOVA
Mutual Fund gives better return than Bank Deposit.
Sum of Squares df Mean Square F Sig.
Between Groups 11.821 5 2.364 1.812 .111 Within Groups 357.550 274 1.305
Total 369.371 279
77
Post-Hoc Test Mutual Fund gives better return than Bank Deposit. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student .024 .244 .922
part time employees .137 .251 .584
full time employees -.440* .202 .030
professional -.033 .222 .883
other -.160 .258 .538
student businessmen/women -.024 .244 .922 part time employees .114 .275 .680
full time employees -.463* .232 .046
professional -.057 .250 .821 other -.183 .282 .517
part time employees businessmen/women -.137 .251 .584
student -.114 .275 .680 full time employees -.577* .239 .016
professional -.170 .256 .507
other -.297 .288 .304 full time employees businessmen/women .440* .202 .030
student .463* .232 .046
part time employees .577* .239 .016 professional .407 .209 .052
other .280 .247 .258
professional businessmen/women .033 .222 .883 student .057 .250 .821
part time employees .170 .256 .507
full time employees -.407 .209 .052 other -.127 .264 .632
other businessmen/women .160 .258 .538
student .183 .282 .517 part time employees .297 .288 .304
full time employees -.280 .247 .258
professional .127 .264 .632 *. The mean difference is significant at the 0.05 level.
78
INTERPRETATION:
The significant level is 0.067 which is greater than 0.05 so the alternative hypothesis is rejected
and the null hypothesis is accepted. Therefore we can say that there is a significant difference
between occupation and return of mutual fund.
79
4.3.4
Ho: There is no significant difference between occupation and collection of MF information.
H1: There is significant difference between occupation and collection of MF information.
Descriptive
I would like to collect information by talking to friends & relatives about mutual fund investment.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.57 1.277 .171 Student 36 2.86 1.457 .243 part time employees 33 3.06 1.144 .199 full time employees 75 3.56 1.233 .142 Professional 50 2.94 1.284 .182 Other 30 3.33 1.213 .221 Total 280 3.28 1.293 .077
ANOVA
I would like to collect information by talking to friends & relatives about mutual fund investment. Sum of Squares df Mean Square F Sig.
Between Groups 24.406 5 4.881 3.027 .011 Within Groups 441.865 274 1.613
Total 466.271 279
80
Post-Hoc Test I would like to collect information by talking to friends & relatives about mutual fund investment.
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student .710* .271 .009
part time employees .511 .279 .068
full time employees .011 .224 .959
professional .631* .247 .011
other .238 .287 .408
Student businessmen/women -.710* .271 .009 part time employees -.199 .306 .515
full time employees -.699* .257 .007
professional -.079 .278 .776 other -.472 .314 .134
part time employees businessmen/women -.511 .279 .068
student .199 .306 .515 full time employees -.499 .265 .061
professional .121 .285 .672
other -.273 .320 .395 full time employees businessmen/women -.011 .224 .959
student .699* .257 .007
part time employees .499 .265 .061 professional .620* .232 .008
other .227 .274 .409
professional businessmen/women -.631* .247 .011 student .079 .278 .776
part time employees -.121 .285 .672
full time employees -.620* .232 .008 other -.393 .293 .181
other businessmen/women -.238 .287 .408
student .472 .314 .134 part time employees .273 .320 .395
full time employees -.227 .274 .409
professional .393 .293 .181 *. The mean difference is significant at the 0.05 level.
81
INTERPRETATION:
The significant level is 0.011 which is less than 0.05 so the alternative hypothesis is accepted
and the null hypothesis is rejected. Therefore we can say that there is no significant difference
between occupation and collection of MF information.
82
4.3.5
Ho: There is no significant difference between occupation and taking advice for investment decision.
H1: There is significant difference between occupation and taking advice for investment decision.
Descriptive I prefer to take advice from other investors for investment decision.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.12 1.207 .161 student 36 3.03 1.082 .180 part time employees 33 3.00 1.199 .209 full time employees 75 3.45 1.069 .123 professional 50 3.08 1.209 .171 other 30 3.23 1.278 .233 Total 280 3.19 1.165 .070
ANOVA
I prefer to take advice from other investors for investment decision.
Sum of Squares df Mean Square F Sig.
Between Groups 8.237 5 1.647 1.218 .301 Within Groups 370.731 274 1.353
Total 378.968 279
83
Post-Hoc Test I prefer to take advice from other investors for investment decision. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student .097 .248 .696
part time employees .125 .255 .625
full time employees -.328 .205 .111
professional .045 .226 .843
other -.108 .263 .681
Student businessmen/women -.097 .248 .696 part time employees .028 .280 .921
full time employees -.426 .236 .072
professional -.052 .254 .837 other -.206 .288 .475
part time employees businessmen/women -.125 .255 .625
student -.028 .280 .921 full time employees -.453 .243 .063
professional -.080 .261 .759
other -.233 .293 .427 full time employees businessmen/women .328 .205 .111
student .426 .236 .072
part time employees .453 .243 .063 professional .373 .212 .080
other .220 .251 .382
Professional businessmen/women -.045 .226 .843 student .052 .254 .837
part time employees .080 .261 .759
full time employees -.373 .212 .080 other -.153 .269 .569
Other businessmen/women .108 .263 .681
student .206 .288 .475 part time employees .233 .293 .427
full time employees -.220 .251 .382
professional .153 .269 .569
84
INTERPRETATION:
The significant level is 0.301 which is higher than 0.05 so the alternative hypothesis is
rejectedand the null hypothesis is accepted. Therefore we can say that there is no significant
difference between occupation and taking advice for investment decision.
85
4.3.6
Ho: There is no significant difference between occupation and MF as tax saving.
H1: There is significant difference between occupation and MF as tax saving.
Descriptive Mutual Fund helps in tax saving.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.02 1.152 .154 student 36 3.33 1.121 .187 part time employees 33 3.18 1.103 .192 full time employees 75 3.29 1.228 .142 professional 50 3.42 1.180 .167 other 30 3.17 1.262 .230 Total 280 3.24 1.178 .070
ANOVA
Mutual Fund helps in tax saving.
Sum of Squares df Mean Square F Sig.
Between Groups 5.183 5 1.037 .744 .591 Within Groups 381.785 274 1.393
Total 386.968 279
86
Post-Hoc Test
Mutual Fund helps in tax saving. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student -.315 .252 .212
part time employees -.164 .259 .527
full time employees -.275 .208 .187
professional -.402 .230 .081
Other -.149 .267 .578 Student businessmen/women .315 .252 .212
part time employees .152 .284 .595
full time employees .040 .239 .867 professional -.087 .258 .737
Other .167 .292 .568
part time employees businessmen/women .164 .259 .527 student -.152 .284 .595
full time employees -.112 .247 .651
professional -.238 .265 .369 Other .015 .298 .959
full time employees businessmen/women .275 .208 .187
student -.040 .239 .867 part time employees .112 .247 .651
professional -.127 .216 .557
Other .127 .255 .620 Professional businessmen/women .402 .230 .081
student .087 .258 .737
part time employees .238 .265 .369 full time employees .127 .216 .557
Other .253 .273 .354
Other businessmen/women .149 .267 .578 student -.167 .292 .568
part time employees -.015 .298 .959
full time employees -.127 .255 .620 professional -.253 .273 .354
87
INTERPRETATION:
The significant level is 0.591 which is higher than 0.05 so the alternative hypothesis is
rejectedand the null hypothesis is accepted. Therefore we can say that there is no significant
difference between occupation and MF tax saving.
88
4.3.7
Ho: There is no significant difference between occupation and MF as liquidity.
H1: There is significant difference between occupation and MF as liquidity.
Descriptive
Mutual Fund provides better liquidity than other investment option.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.12 1.207 .161 student 36 3.03 1.082 .180 part time employees 33 3.00 1.199 .209 full time employees 75 3.45 1.069 .123 professional 50 3.08 1.209 .171 other 30 3.23 1.278 .233 Total 280 3.19 1.165 .070
ANOVA Mutual Fund provides better liquidity than other investment option.
Sum of Squares df Mean Square F Sig.
Between Groups 8.237 5 1.647 1.218 .301 Within Groups 370.731 274 1.353
Total 378.968 279
89
Post-Hoc Test
Mutual Fund provides better liquidity than other investment option. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student .097 .248 .696
part time employees .125 .255 .625
full time employees -.328 .205 .111
professional .045 .226 .843
other -.108 .263 .681 student businessmen/women -.097 .248 .696
part time employees .028 .280 .921
full time employees -.426 .236 .072 professional -.052 .254 .837
other -.206 .288 .475
part time employees businessmen/women -.125 .255 .625 student -.028 .280 .921
full time employees -.453 .243 .063
professional -.080 .261 .759 other -.233 .293 .427
full time employees businessmen/women .328 .205 .111
student .426 .236 .072 part time employees .453 .243 .063
professional .373 .212 .080
other .220 .251 .382 professional businessmen/women -.045 .226 .843
student .052 .254 .837
part time employees .080 .261 .759 full time employees -.373 .212 .080
other -.153 .269 .569
other businessmen/women .108 .263 .681 student .206 .288 .475
part time employees .233 .293 .427
full time employees -.220 .251 .382 professional .153 .269 .569
90
INTERPRETATION:
The significant level is 0.301 which is higher than 0.05 so the alternative hypothesis is
rejectedand the null hypothesis is accepted. Therefore we can say that there is no significant
difference between occupation and MF liquidity.
91
4.3.8
Ho: There is no significant difference between occupation and MF as diversification of portfolio.
H1: There is significant difference between occupation and MF as diversification of portfolio. Descriptive Mutual fund provides the diversification of portfolio.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.46 1.175 .157 student 36 3.42 1.105 .184 part time employees 33 3.39 1.144 .199 full time employees 75 3.72 1.008 .116 professional 50 3.54 1.110 .157 other 30 3.40 1.163 .212 Total 280 3.52 1.104 .066
ANOVA Mutual fund provides the diversification of portfolio.
Sum of Squares df Mean Square F Sig.
Between Groups 4.528 5 .906 .740 .594 Within Groups 335.297 274 1.224
Total 339.825 279
92
Post-Hoc Test
Mutual fund provides the diversification of portfolio. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women student .048 .236 .840
part time employees .070 .243 .772
full time employees -.256 .195 .192
professional -.076 .215 .725
Other .064 .250 .797 student businessmen/women -.048 .236 .840
part time employees .023 .267 .932
full time employees -.303 .224 .177 professional -.123 .242 .610
Other .017 .273 .951
part time employees businessmen/women -.070 .243 .772 student -.023 .267 .932
full time employees -.326 .231 .159
professional -.146 .248 .557 Other -.006 .279 .983
full time employees businessmen/women .256 .195 .192
student .303 .224 .177 part time employees .326 .231 .159
professional .180 .202 .374
Other .320 .239 .182 professional businessmen/women .076 .215 .725
student .123 .242 .610
part time employees .146 .248 .557 full time employees -.180 .202 .374
Other .140 .255 .584
other businessmen/women -.064 .250 .797 student -.017 .273 .951
part time employees .006 .279 .983
full time employees -.320 .239 .182 professional -.140 .255 .584
93
INTERPRETATION:
The significant level is 0.594 which is higher than 0.05 so the alternative hypothesis is
rejectedand the null hypothesis is accepted. Therefore we can say that there is no significant
difference between occupation and MF as diversification of portfolio.
94
4.3.9
Ho= There is no relation between occupation and taking information in future.
H1= There is relation between occupation and taking information in future.
Descriptive
I am always interested in taking more information about mutual fund investment in future.
N Mean Std. Deviation Std. Error
businessmen/women 56 3.11 1.216 .163 student 36 3.08 1.052 .175 part time employees 33 2.97 1.212 .211 full time employees 75 3.55 .990 .114 professional 50 3.14 1.229 .174 other 30 3.27 1.230 .225 Total 280 3.23 1.151 .069
ANOVA
I am always interested in taking more information about mutual fund investment in future. Sum of Squares df Mean Square F Sig.
Between Groups 11.821 5 2.364 1.812 .111 Within Groups 357.550 274 1.305
Total 369.371 279
95
Post-Hoc Test I am always interested in taking more information about mutual fund investment in future. LSD
(I) occupation (J) occupation Mean Difference
(I-J) Std. Error Sig.
businessmen/women Student .024 .244 .922
part time employees .137 .251 .584
full time employees -.440* .202 .030
professional -.033 .222 .883
other -.160 .258 .538
Student businessmen/women -.024 .244 .922 part time employees .114 .275 .680
full time employees -.463* .232 .046
professional -.057 .250 .821 other -.183 .282 .517
part time employees businessmen/women -.137 .251 .584
student -.114 .275 .680 full time employees -.577* .239 .016
professional -.170 .256 .507
other -.297 .288 .304 full time employees businessmen/women .440* .202 .030
student .463* .232 .046
part time employees .577* .239 .016 professional .407 .209 .052
other .280 .247 .258
Professional businessmen/women .033 .222 .883 student .057 .250 .821
part time employees .170 .256 .507
full time employees -.407 .209 .052 other -.127 .264 .632
Other businessmen/women .160 .258 .538
student .183 .282 .517 part time employees .297 .288 .304
full time employees -.280 .247 .258
professional .127 .264 .632 *. The mean difference is significant at the 0.05 level.
96
INTERPRETATION:
The significant level is 0.111 which is higher than 0.05 so the alternative hypothesis is
rejectedand the null hypothesis is accepted. Therefore we can say that there is no significant
difference between occupation and taking information in future.
97
4.5 BASED ON MONTHLY INCOME
4.5.1
Ho: There is no significant difference between monthly family income and aware of the mutual fund.
H1: There is significant difference between monthly family income and aware of the mutual fund.
ANOVA
I am aware of the Mutual Fund Investment.
Sum of Squares df Mean Square F Sig.
Between Groups 1.756 3 .585 .432 .730
Within Groups 372.552 275 1.355
Total 374.308 278
Descriptive I am aware of the Mutual Fund Investment.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.45 1.293 .390 25001 to 35000 63 3.21 1.246 .157 35001 to 50000 94 3.10 1.183 .122 above 50000 111 3.23 1.084 .103 Total 279 3.19 1.160 .069
98
Post Hoc Tests Multiple Comparisons I am aware of the Mutual Fund Investment. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 .248 .380 .515
35001 to 50000 .359 .371 .334
above 50000 .229 .368 .534
25001 to 35000 15000 to 25000 -.248 .380 .515
35001 to 50000 .111 .190 .560 above 50000 -.019 .184 .918
35001 to 50000 15000 to 25000 -.359 .371 .334
25001 to 35000 -.111 .190 .560 above 50000 -.129 .163 .428
above 50000 15000 to 25000 -.229 .368 .534
25001 to 35000 .019 .184 .918 35001 to 50000 .129 .163 .428
INTERPRETATION:
The significant level is 0.730 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and aware of the mutual fund.
99
4.5.2
Ho: There is no significant difference between monthly family income and mutual fund safe.
H1: There is significant difference between monthly family income and mutual fund safe.
Descriptive Mutual Fund is safe
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.18 1.537 .464 25001 to 35000 63 3.71 1.084 .137 35001 to 50000 94 3.66 1.022 .105 above 50000 111 3.79 .916 .087 Total 279 3.71 1.021 .061
ANOVA Mutual Fund is safe
Sum of Squares df Mean Square F Sig.
Between Groups
4.066 3 1.355 1.304 .273
Within Groups 285.834 275 1.039
Total 289.900 278
100
Post Hoc Tests
Multiple Comparisons Mutual Fund is safe LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 -.532 .333 .111
35001 to 50000 -.478 .325 .143
above 50000 -.611 .322 .059
25001 to 35000 15000 to 25000 .532 .333 .111 35001 to 50000 .055 .166 .742
above 50000 -.079 .161 .626
35001 to 50000 15000 to 25000 .478 .325 .143 25001 to 35000 -.055 .166 .742
above 50000 -.133 .143 .352
above 50000 15000 to 25000 .611 .322 .059 25001 to 35000 .079 .161 .626
35001 to 50000 .133 .143 .352
INTERPRETATION:
The significant level is 0.273 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and mutual fund safe.
101
4.5.3
Ho: There is no significant difference between monthly family income and return on mutual fund.
H1: There is significant difference between monthly family income and return on mutual fund.
Descriptive Mutual Fund gives better return than Bank Deposit.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.45 1.293 .390 25001 to 35000 63 3.29 1.237 .156 35001 to 50000 94 3.12 1.144 .118 above 50000 111 3.28 1.097 .104 Total 279 3.23 1.150 .069
ANOVA Mutual Fund gives better return than Bank Deposit.
Sum of Squares Df Mean Square F Sig.
Between Groups
2.217 3 .739 .556 .645
Within Groups 365.640 275 1.330
Total 367.857 278
102
Post Hoc Tests
Multiple Comparisons Mutual Fund gives better return than Bank Deposit. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 .169 .377 .654
35001 to 50000 .338 .367 .359
above 50000 .175 .364 .631
25001 to 35000 15000 to 25000 -.169 .377 .654
35001 to 50000 .169 .188 .370 above 50000 .006 .182 .972
35001 to 50000 15000 to 25000 -.338 .367 .359
25001 to 35000 -.169 .188 .370 above 50000 -.162 .162 .316
above 50000 15000 to 25000 -.175 .364 .631
25001 to 35000 -.006 .182 .972 35001 to 50000 .162 .162 .316
INTERPRETATION:
The significant level is 0.645 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between monthly family income and return on mutual fund.
103
4.5.4
Ho: There is no significant difference between monthly family income and collection of mutual fund
information.
H1: There is significant difference between monthly family income and collection of mutual fund
information.
Descriptive I would like to collect information by talking to friends & relatives about mutual fund investment.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.00 1.265 .381 25001 to 35000 63 3.35 1.109 .140 35001 to 50000 94 3.24 1.284 .132 above 50000 111 3.28 1.402 .133 Total 279 3.27 1.291 .077
ANOVA I would like to collect information by talking to friends & relatives about mutual fund investment. Sum of Squares Df Mean Square F Sig.
Between Groups 1.265 3 .422 .251 .861
Within Groups 462.032 275 1.680
Total 463.297 278
104
Post Hoc Tests Multiple Comparisons I would like to collect information by talking to friends & relatives about mutual fund investment. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 -.349 .424 .410
35001 to 50000 -.245 .413 .554
above 50000 -.279 .410 .496 25001 to 35000 15000 to 25000 .349 .424 .410
35001 to 50000 .105 .211 .621
above 50000 .070 .204 .733 35001 to 50000 15000 to 25000 .245 .413 .554
25001 to 35000 -.105 .211 .621
above 50000 -.035 .182 .849 above 50000 15000 to 25000 .279 .410 .496
25001 to 35000 -.070 .204 .733
35001 to 50000 .035 .182 .849
INTERPRETATION:
The significant level is 0.861 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and collection of mutual fund information.
105
4.5.5
Ho: There is no significant difference between monthly family income and taking advice for
investment decision.
H1: There is significant difference between monthly family income and taking advice for investment
decision.
ANOVA I prefer to take advice from other investors for investment decision.
Sum of Squares Df Mean Square F Sig.
Between Groups
1.439 3 .480 .350 .789
Within Groups 376.869 275 1.370
Total 378.308 278
Descriptive I prefer to take advice from other investors for investment decision.
N Mean
Std. Deviation Std. Error
15000 to 25000 11 3.18 1.328 .400 25001 to 35000 63 3.30 1.227 .155 35001 to 50000 94 3.11 1.150 .119 above 50000 111 3.19 1.140 .108 Total 279 3.19 1.167 .070
106
Post Hoc Tests Multiple Comparisons I prefer to take advice from other investors for investment decision. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 -.120 .383 .754
35001 to 50000 .075 .373 .840
above 50000 -.007 .370 .984
25001 to 35000 15000 to 25000 .120 .383 .754
35001 to 50000 .195 .191 .307 above 50000 .112 .185 .543
35001 to 50000 15000 to 25000 -.075 .373 .840
25001 to 35000 -.195 .191 .307 above 50000 -.083 .164 .614
above 50000 15000 to 25000 .007 .370 .984
25001 to 35000 -.112 .185 .543 35001 to 50000 .083 .164 .614
INTERPRETATION:
The significant level is 0.789 which is greater than 0.05 so that alternative hypothesis is rejected and the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and taking advice for investment decision.
107
4.5.6
Ho: There is no significant difference between monthly family income and mutual fund in tax
saving.
H1: There is significant difference between monthly family income and mutual fund in tax saving.
ANOVA Mutual Fund helps in tax saving.
Sum of Squares Df Mean Square F Sig.
Between Groups 2.099 3 .700 .506 .678
Within Groups 379.837 275 1.381
Total 381.935 278
Descriptive Mutual Fund helps in tax saving.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.45 1.036 .312 25001 to 35000 63 3.25 1.107 .139 35001 to 50000 94 3.33 1.213 .125 above 50000 111 3.15 1.192 .113 Total 279 3.25 1.172 .070
108
Post Hoc Tests Multiple Comparisons Mutual Fund helps in tax saving. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 .201 .384 .602
35001 to 50000 .125 .375 .739
above 50000 .301 .371 .418
25001 to 35000 15000 to 25000 -.201 .384 .602
35001 to 50000 -.076 .191 .692 above 50000 .101 .185 .587
35001 to 50000 15000 to 25000 -.125 .375 .739
25001 to 35000 .076 .191 .692 above 50000 .177 .165 .285
above 50000 15000 to 25000 -.301 .371 .418
25001 to 35000 -.101 .185 .587 35001 to 50000 -.177 .165 .285
INTERPRETATION:
The significant level is 0.678 which is greater than 0.05 so that alternative hypothesis is rejected and the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and mutual fund in tax saving.
109
4.5.7
Ho: There is no significant difference between monthly family income and mutual fund liquidity.
H1: There is significant difference between monthly family income and mutual fund liquidity.
Descriptive Mutual Fund provides better liquidity than other investment option.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.18 1.328 .400 25001 to 35000 63 3.30 1.227 .155 35001 to 50000 94 3.11 1.150 .119 above 50000 111 3.19 1.140 .108 Total 279 3.19 1.167 .070
ANOVA Mutual Fund provides better liquidity than other investment option.
Sum of Squares Df Mean Square F Sig.
Between Groups 1.439 3 .480 .350 .789
Within Groups 376.869 275 1.370
Total 378.308 278
110
Post Hoc Tests
Multiple Comparisons Mutual Fund provides better liquidity than other investment option. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 -.120 .383 .754
35001 to 50000 .075 .373 .840
above 50000 -.007 .370 .984
25001 to 35000 15000 to 25000 .120 .383 .754 35001 to 50000 .195 .191 .307
above 50000 .112 .185 .543
35001 to 50000 15000 to 25000 -.075 .373 .840 25001 to 35000 -.195 .191 .307
above 50000 -.083 .164 .614
above 50000 15000 to 25000 .007 .370 .984 25001 to 35000 -.112 .185 .543
35001 to 50000 .083 .164 .614
INTERPRETATION:
The significant level is 0.789 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between monthly family income and mutual fund liquidity.
111
4.5.8 Ho: There is no significant difference between monthly family income and mutual fund is
diversification of portfolio.
H1: There is significant difference between monthly family income and mutual fund is
diversification of portfolio.
ANOVA Mutual fund provides the diversification of portfolio.
Sum of Squares Df Mean Square F Sig.
Between Groups
3.411 3 1.137 .948 .418
Within Groups 330.015 275 1.200
Total 333.427 278
Descriptive Mutual fund provides the diversification of portfolio.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.27 1.272 .384 25001 to 35000 63 3.57 1.174 .148 35001 to 50000 94 3.41 1.130 .117 above 50000 111 3.64 .998 .095 Total 279 3.53 1.095 .066
112
Post Hoc Tests
Multiple Comparisons Mutual fund provides the diversification of portfolio. LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 -.299 .358 .405
35001 to 50000 -.142 .349 .684
above 50000 -.367 .346 .290 25001 to 35000 15000 to 25000 .299 .358 .405
35001 to 50000 .157 .178 .381
above 50000 -.068 .173 .693 35001 to 50000 15000 to 25000 .142 .349 .684
25001 to 35000 -.157 .178 .381
above 50000 -.225 .154 .144 above 50000 15000 to 25000 .367 .346 .290
25001 to 35000 .068 .173 .693
35001 to 50000 .225 .154 .144
INTERPRETATION:
The significant level is 0.418 which is greater than 0.05 so that alternative hypothesis is rejected and the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and mutual fund is diversification of portfolio.
113
4.5.9
Ho: There is no significant difference between monthly family income and taking information in
future.
H1: There is significant difference between monthly family income and taking information in future.
Descriptive I am always interested in taking more information about mutual fund investment in future.
N Mean Std. Deviation Std. Error
15000 to 25000 11 3.45 1.293 .390 25001 to 35000 63 3.29 1.237 .156 35001 to 50000 94 3.12 1.144 .118 above 50000 111 3.28 1.097 .104 Total 279 3.23 1.150 .069
ANOVA I am always interested in taking more information about mutual fund investment in future. Sum of
Squares Df Mean Square F Sig.
Between Groups 2.217 3 .739 .556 .645
Within Groups 365.640 275 1.330
Total 367.857 278
114
Post Hoc Tests Multiple Comparisons I am always interested in taking more information about mutual fund investment in future.
LSD
(I) Monthly Family Income
(J) Monthly Family Income
Mean Difference (I-J) Std. Error Sig.
15000 to 25000 25001 to 35000 .169 .377 .654
35001 to 50000 .338 .367 .359
above 50000 .175 .364 .631 25001 to 35000 15000 to 25000 -.169 .377 .654
35001 to 50000 .169 .188 .370
above 50000 .006 .182 .972 35001 to 50000 15000 to 25000 -.338 .367 .359
25001 to 35000 -.169 .188 .370
above 50000 -.162 .162 .316 above 50000 15000 to 25000 -.175 .364 .631
25001 to 35000 -.006 .182 .972
35001 to 50000 .162 .162 .316
INTERPRETATION:
The significant level is 0.645 which is greater than 0.05 so that alternative hypothesis is rejected and
the null hypothesis is accepted. Therefore we can say that there is no significantly difference between
monthly family income and taking information in future.
116
FINDINGS
From the above analysis we find out that..
There is no significant difference between gender and preference of investments because the
significant level is less than 0.005.
There is significant difference between age and aware of the mutual fund investment, MF safe, return
on MF, collection of MF information, taking advice for investment decision, MF in tax saving, MF
liquidity, MF is diversification of portfolio, taking information in future, the significant level is0.465,
0.974, 0.794, 0.938, 0.816, 0.265, 0.816, 0.892, 0.794 which is greater than 0.05 So, the alternative
hypothesis is rejected and the null hypothesis is accepted.
There is significant difference between education and aware of the mutual fund investment, return on
MF, collection of MF information, taking advice for investment decision, MF liquidity, taking
information in future, the significant level is0.618, 0.225, 0.350, 0.702, 0.702, 0.225 which is greater
than 0.05 So, the alternative hypothesis is rejected and the null hypothesis is accepted.
There is significant difference between education and MF safe, MF in tax saving, MF is
diversification of portfolio. The significant level is 0.047, 0.019, and 0.049 which is less than 0.05.
So, the alternative hypothesis is accepted and the null hypothesis is rejected.
There is significant difference between occupation and aware of the mutual fund investment, MF
safe, return on MF, taking advice for investment decision, MF in tax saving, MF liquidity, MF is
diversification of portfolio, taking information in future, the significant level is0.067, 0.707, 0.111,
0.301, 0.591, 0.301, 0.594, 0.111 which is greater than 0.05 So, the alternative hypothesis is rejected
and the null hypothesis is accepted.
There is significant difference between occupation and collection of MF information the significant
level is 0.011 is less than 0.05. So the alternative hypothesis is accepted and the null hypothesis is
rejected.
There is significant difference between monthly family income and aware of the mutual fund
investment, MF safety, return on MF, collection of MF information, taking advice for investment
decision, MF in tax saving, MF liquidity, MF is diversification of portfolio, taking information in
future, the significant level is0.730, 0.273, 0.645, 0.861, 0.789, 0.678, 0.789, 0.418, 0.645 which is
greater than 0.05 So, the alternative hypothesis is rejected and the null hypothesis is accepted.
118
Recommendations
• As per our primary research we can give suggestion to the mutual fund industry that Mutual fund
industry should try to make people understand regarding the risk element associated with the instrument
so that it will increase preference of mutual fund.
• Mutual fund providing company should target on male investors from the age group of 35-45and having
government service, private job and business men.
• Mutual Fund companies should try to promote mutual fund awareness by more and more campaigning
and offers.
• Mutual Fund companies should try to target law income group by introducing more schemes which
require less amount of investment.
• Mutual Fund companies should promote the concept of online trading.
• Mutual Fund companies should target higher income group who are ready to take more risk.
• Mutual Fund companies should target females as untapped market.
120
Conclusion
This study was conducted by keeping in the focal point Mutual fund awareness amongst investors of the Mehsana city. This project gave a lot of corporate exposure, through these project lots of learning about the different funds and corporate culture was gained. It gave lot of information about the current scenario of financial market, understanding in depth about the functioning of the different funds. Conclusion was drawn that investors prefers to invest in fixed deposit & equity market rather than investing in mutual fund.Newspaper is the major source for awareness of mutual fund awareness in investors of MEHSANA city.
122
Limitations
• Limitation Of Time Resources:
The time provided was not sufficient to study and analyze the whole population.
• Limited Sample Size:
For the purpose of study, sample size was selected. It is a representative of population but may not
provide accurate results.
• Limitation of Skills:
As practical knowledge of this type was experienced first time, there might be some flaws in the
research.
• Prevalent Biases In The Respondents Replies:
Respondents’ replies might be biased and so it would affect the accuracy of results.
124
Bibliography
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Mutual Fund insight: volume 7. (2013(15 jan-14 Feb). mutual fund insight.
Economic Times. (2013, january 5).
www.amfiindia.com. (2013, January 25).
www.equitymaster.com. (2013, february 28). Retrieved from www.equitymaster.com.
www.financemind.com. (2013, march 6).
www.individualinvestor.com. (2013).
www.investipedia.com. (2013, march 2). Retrieved from www.investipedia.com.
www.managementparadise.com. (2013, january 1).
www.moneycontrol.com. (2013, February 2).
www.mutualfund.headlinesindia.com. (2013, february 7).
www.rediffnews.com. (2013, february 5).
www.sebi.in. (2013, January 4). Retrieved from www.sebi.in.
www.valuresearchchonline.com. (2013).
Anjaria, ¬. D. (2001). Amfi's Mutual Fund Testing Programe.
Bansal, L. K. (2000). Mutual Fund Management.
Malhotra, N. K. (n.d.). Marketing Research An Applied Orientation 4th Edition.
Rubin, L. &. (n.d.). Statistics for Management seventh edition.
Swenson, D. F. (n.d.). A fundamental approach to personal investment free press 416.
tripathy, N. P. (n.d.). mutual fund:Emerging issues in India.
www.mfmag.com. (n.d.).
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126
Questionnaire
Respondent No. : _________ Date: __________
Dear Sir/Madam,
We are the students of MBA SEM-IV of V.M.Patel Institute of Management, Ganpat University, Kherva.
We are conducting survey on “Awareness of mutual fund amongst investors of Mehsana city” Hence; data
provided by you will be kept confidential and exclusively used for academic purpose only.
Please tick mark [√] in box [ ] against answer applicable to you.
PART- A (Personal Details)
1. Gender: [ ] Male [ ] Female
2. Age: [ ] 18 - 25 [ ] 26 – 35 [ ] above 36
3. Education: [ ] 12th standard [ ] Graduation
[ ] Post – Graduation [ ] Other
4. Occupation: [ ] Businessmen/women [ ] Student
[ ] Part Time Employee [ ] Full Time Employee
[ ] Professional [ ] Other
5. Monthly Family Income: [ ] 15000 to 25000 [ ] 25001 to 35000
[ ] 35001 to 50000 [ ] Above 50000
127
PART- B
6. Where do you prefer to invest your Money?
[ ] Mutual Fund [ ] Fixed Deposit [ ] Equity market
[ ] Insurance [ ] Postal saving
7. How you came to know about Mutual Fund?
[ ] Radio [ ] Newspaper [ ] T.V. [ ] Friends [ ] Relatives
8. Do you know how to invest in Mutual Fund?
[ ] Yes [ ] No
9. Have you ever invested in mutual fund?
[ ] Yes [ ] No
10. In a year, how often do you invest?
[ ] once a year [ ] 2-3 times [ ] 3-5 times [ ] more than 5 times
128
11. Please give your opinion regarding the statements mentioned below in the following table. 1. Strongly
Agree 2. Disagree 3. Neutral 4. Agree 5. Strongly
Agree No Parameters 1 2 3 4 5
1. I am aware of the Mutual Fund Investment.
2. Mutual Fund is safe.
3. Mutual Fund gives better return than Bank Deposit.
4. I would like to collect information by talking to friends & relatives about mutual fund investment.
5. I prefer to take advice from other investors for investment decision.
6. Mutual Fund helps in tax saving.
7. Mutual Fund provides better liquidity than other investment options.
8. Mutual Fund provides the diversification of portfolio.
9. I am always interested in taking more information about mutual fund investment in future.