A STUDY ON FACTORS INFLUENCING MUTUAL FUND INVESTMENT IN INDIA
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There has been growing importance of Mutual Fund Investment in India. When compared with other financial instruments, investments in Mutual funds are safer and also yields more returns on the portfolio investment. The focus of the study is to explore the factors that are responsible in increasing the Mutual Fund investment in India. The study also helps to understand the role of demographics in Mutual funds in India. This enables the fund managers to understand investment pattern and preferences of investor’s behind investing in Mutual Funds. Further analysis of the study reveals that financial literacy of respondents is very important for making investment in Mutual funds. Therefore Mutual fund companies should promote financial awareness amongst the respondents so as to channelize their income and savings towards Mutual Funds. Index Terms — Mutual Funds, investment, preferences, companies, awareness, IndiaKeywords:
Mutual fund
Target date fund
Investment
Commodity pool
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Unit investment trust
Umbrella fund
Portfolio investment
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The Indian Mutual fund industry has seen a significant growth in past few years. It helps to channelize the savings of millions of people into investments in equity and debt instruments. The Mutual fund business has taken the Indian Capital market to new heights with increase in number of potential investors and several investment options. Mutual funds are one of easiest way to make an investment in equity and debt instruments and provide good returns at the same time. Every investor wants to make an investment in the funds of reputed companies which provides combined benefit of good returns, liquidity, tax benefits and diversification through professional management services. Indian Mutual Fund Industry has a huge potential as there is a tremendous growth in number of Investors, Mutual fund companies and favourable Government policies for the same. Quick investment, good returns as per the investors need, and customization of the portfolio is attracting large number of investors which is expanding the Mutual Fund Business. This study analyses the impact of various demographic factors on attitude of investors towards Mutual fund. Apart from this it also examines how several Economic and Company specific factors affect the choice of fund of the investors and also the investors risk taking ability towards the Mutual fund investment. To this end, 120 respondents of Kolkata city were surveyed with various demographic profiles. The study reveals that the risk taking ability of the investors differs as per their income level and there are certain economic factors that affect the choice of funds from the investor’s point of view. The study also reveals that there is still need for creating Mutual Fund awareness among the public of Kolkata.
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There has been growing importance of Mutual Fund Investment in India. When compared with other financial instruments, investments in Mutual funds are safer and also yields more returns on the portfolio investment. The focus of the study is to explore the factors that are responsible in increasing the Mutual Fund investment in India. The study also helps to understand the role of demographics in Mutual funds in India. This enables the fund managers to understand investment pattern and preferences of investor's behind investing in Mutual Funds. Further analysis of the study reveals that financial literacy of respondents is very important for making investment in Mutual funds. Therefore Mutual fund companies should promote financial awareness amongst the respondents so as to channelize their income and savings towards Mutual Funds.
Mutual fund
Target date fund
Investment
Umbrella fund
Unit investment trust
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Mutual Funds have become a widely popular and effective way for investors to participate in financial markets in an easy, low-cost fashion, while muting risk characteristics by spreading the investment across different types of securities, also known as diversification. It can play a central role in an individual's investment strategy. They offer the potential for capital growth and income through investment performance, dividends and distributions under the guidance of a portfolio manager who makes investment decisions on behalf of mutual fund unit holders. Over the past decade, mutual funds have increasingly become the investor’s vehicle of choice for long-term investment. It becomes pertinent to study the performance of the mutual fund. The relation between risk-return determines the performance of a mutual fund scheme. As risk is commensurate with return, therefore, providing maximum return on the investment made within the acceptable associated risk level helps in segregating the better performers from the laggards. Many asset management companies are working in India, so it is necessary to study the performance of its which may be useful for the investors to select the right mutual fund. A Study of Financial system and mutual fund at Indoworth India Ltd., Butibori, Nagpur
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Mutual fund industry in India is rising and investment in a mutual fund is less risky than financing in other risky instruments is therefore a safer option for risk aggressive investors. Mutual Funds offer a stage for an investor to contribute to the Indian capital market with specialized fund management regardless of the amount invested. This paper attempts to study the outlook of citizens towards awareness with special reference to mutual funds. The population of the study is selected from the Ahmedabad city of Gujarat state of the country. The sample size is 100 and the researcher has used a convenient sampling method for the study. The findings of this study are that people are aware of mutual funds but still, people are not investing in mutual funds. It is expected that this study will help in India to plan successful strategies for increasing investment in mutual funds and they can spread more awareness about mutual funds.
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Mutual fund is an investment instrument which assembles the savings of millions of small and retail investors into large capital formation. The fundamental objective behind investment in mutual fund is to earn good return with relatively low risk. Mutual fund is acting as an important investment alternatives for general investors. In Bangladesh, mutual fund was first introduced by Investment Corporation of Bangladesh (ICB) in 1980. The main purpose of doing this research is to analyze the investors’ preference towards mutual fund and factors affecting the investors’ preference towards mutual fund. By using 5-point Likert scale in structured questionnaire, researchers have measured the factors affecting the attitude of investors towards mutual fund. Descriptive statistical tools like chi square test have been used for analyzing the data. It is found that, the demographical factors- gender, income and savings have significant influence on the investor’s attitude towards mutual funds investment. Investors prefer mutual fund as safety of life and return on investment. It is identified that, most of the investors are not satisfied with their investment. The study has suggested some important policy measures such as regulatory change, creating investors awareness, encouraging the private companies to raise fund through mutual fund.
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In India Mutual funds plays a vital role in mobilizing funds for capital and financial markets. Mutual Funds are one in all the most effective investment choice out there to the small investors. A Mutual funds is a type of investment platform where it manages to collect investment from a lot investors to buy securities like stock, money market instrument, bonds and other assets because the investment firm sector had developed, there’s been a growing acceptance by most policy holders that the assured come era may be a factor of the past. Mutual Fund are operated by professional money managers, who is allocated the funds asset and to attempt to produce capital gains or income for the fund’s investors. Now days all types of investors investing in Mutual Funds. The Primary objective of the study is to assess investor’s perception towards Mutual Funds through SIP and to identify the reasons for investment in mutual funds through SIP. This study also aims to measure the returns for investment made in Mutual Fund and to evaluate the risk tolerance level of investors.
This study contains with a sample of 130 different kinds of investors and their diversification of investment plan. The data was collected from the investors through circulated questionnaire Google forms in Chennai city. By this study it founded that most of the investors has a positive knowledge about SIP in Mutual Fund. Based on the findings and analysis it concluded that most of the investors are satisfied with the returns and performance of Mutual fund through Systematic investment Plan and it also found that tax-benefits, diversification and reduction in risk as more impact on the investor’s perception for investing in mutual fund.
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In today’s volatile financial world Mutual Funds provide professionally managed, safe and less risky option for investment to the investors, that’s why throughout the world Mutual Funds are an attractive and most invested option of investment. But in Pakistan Mutual Funds are a relatively new market, less research and less known option by the investors. Therefore, the main purpose of this research project is to analyze different demographic factors that impact an investor’s awareness level towards mutual funds and to analyze different factors that shape the investor’s perception and their inclination of investment in mutual funds. Quantitative research method is used in this research with a sample of 150 respondents. Based on the sample responds it is found that different demographic factors such as age and education level play a significant role in increasing the awareness of investors about the investment options. Whereas the factors like transparency, fund’s reputation and risk management are involved in shaping the investor’s perception. This research can help mutual funds organization to better understand the perception of investors towards mutual funds.
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Mutual funds are tools for savings and investment. They provide reasonable returns while minimizing risks associated with investment. The present research is a research to identify whether mutual funds can contribute towards inclusive growth and development. The research was conducted based on survey among one hundred random investors from Bikaner (Rajasthan, India). The research found that the mutual funds are now becoming popular among common investors also. The researcher has tested two hypothesis relating to the study and found that there is no significant relation between income of the investor, experience of the investor and preference of the mutual fund. Based on data analysis, the researchers found that income and experience of the investor is not an important variable for investment in mutual fund. Therefore common people are also able to take equal benefits from the mutual funds. The researchers concluded that mutual funds can contribute towards inclusive growth and development.
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The mutual funds sector is one of the fastest sectors in Indian Economy. Mutual fund is more reliable to the investors as the risk is low compared to other sources of investment. It is more reachable to the investors as the funds do not get invested in one sector but gets diversified to many sectors. The diversification happens in a professional method. This research paper focused attention on number of factors that highlights investor’s perception about mutual fund. The study of the research is on Investor behaviour towards mutual funds. From the research it is found that the majority of investors are male and are businessmen. The research done was a primary research from 60 respondents with convenience sampling method. It stated that more people were aware of mutual fund because of advertisements and social media. This Research denoted that there was a frequent investment in mutual funds compared to other investment sectors. And this study has been analysed on the basis of demographic factors using chi square and anova as tools.
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Purpose Mutual funds in India have not been as favourable investment alternatives as in developed countries, as assets under management of mutual funds to gross domestic product in India have been 7-8 per cent compared to 37 per cent globally. Further, investor base of mutual funds has been narrow, as retail investors constitute 98 per cent of folios but contributed only 58 per cent of investments in September 2014. To broaden the investor base for mutual funds in India, it remains imperative to understand the determinants of investment behaviour of investors towards mutual funds. This study aims to achieve this objective. Design/methodology/approach Based on the theory of planned behaviour, the study examined the effect of awareness, attitude (perception for outcome) and socioeconomic conditions of an investor on his investment behaviour towards mutual funds with the logit model. The results are based on 450 valid responses from the primary survey in Delhi-NCR. Findings The research provided that investment behaviour could be explained with awareness, perception and socioeconomic characteristics of individual investors. Better awareness related to various aspects of mutual funds will have a positive effect on investment in mutual funds. Contrary to belief, risk perception for mutual funds had no effect on the investment decision. Further, socioeconomic characteristics such as age, gender, occupation, income and education of investors had an impact on the awareness about mutual funds. Research limitations/implications As the study has been confined to Delhi-NCR, it should be considered a pilot study and needs to be replicated in other states of India to have more robust results. Practical implications The study has implications for mutual funds and regulators. The study highlights a lack of awareness about mutual funds among particular sections of society as a reason for non-investment in mutual funds. The mutual funds and regulators need to focus on females, older age groups and middle-income groups in their efforts to improve their awareness about mutual funds. This would improve their investor base and flow of funds in mutual funds. Furthermore, the process of investment in mutual funds needs to simplified. Originality/value In an Indian context, this study has been the first attempt to understand the systematic relation between actual investment behaviour towards mutual funds and various determinants such as socioeconomic characteristics, awareness and attitude (perception) about mutual funds.
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Investment Decisions
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