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INTRODUCTION
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CHAPTER II
INTRODUCTION
The fine art of growing wealth is in finding the right balance between risks and returns
for a safe today and a secure tomorrow. While the stock market is too volatile, fixed deposits are
too tedious.
Investment is the use of money to earn income or profit. Mutual funds now represent the
most appropriate investment opportunity for most investors.
Capital market is the back bone of any country’s economy. It facilitates conversion of
savings to investments. Capital market can be classified as primary and secondary market. The
fresh issue of shares takes place in primary market and trading among investors takes place in
secondary market. Primary market is also known as new issue market.
A mutual fund is a collection of stocks and/ or bonds. Mutual fund is a company that
brings together a group of people and invests their money in stocks bonds and other securities.
Each investor own units, which represent a part of the holdings of the fund.
Many people invest part of their income for future financial gain. Others make
investments to protect the purchasing power of their savings against rising prices.
Investment promotes economic growth and contributes to a nation’s wealth. When people
deposit money in a saving account in a bank, for example, the bank may invest by lending the
funds to various business companies. These firms, in run may invest the money in new factories
and equipment to increase their production. In addition to borrowing from banks, most
companies issue stocks and bonds that they sell to investors to raise capital needed for business
expansion.
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SCOPE OF THE STUDY:
The scope of the study encompasses the following
The study was conducted in Chennai city.
The study was about all the Asst Management Compannies of Mutual fund in india.
The study was about all the brand awareness and customer acceptance in mutual funds.
The sample size is 150 respondents.
The study can be used for futher decision – making and marketing strategy planning of the
company.
The study was useful in assessing the general awareness to the respondents about mutual funds.
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CHAPTER 1
OBJECTIVES OF THE STUDY
To find out the investor’s preference towards mutual funds.
To identify relationship existing between age group of the investor and their risk - return
preference.
To identify the factors influencing in mutual fund investment.
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LIMITATIONS OF THE STUDY
Study is urban based. The result of the study cannot be generalized to the rural / semi-
urban areas.
The sample size was restricted to 300 and the results cannot be generalized for the entire
population.
Respondent’s opinion is dynamic hence the observed information cannot be permanent.
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COMPANY PROFILE
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COMPANY PROFILE
The company was incorporated on January 1, 1991 as Maxi Motors Financial Services
Limited and received certificate of commencement of business on February 19, 1991. The name
was changed to Mahindra & Mahindra Financial Services Limited on November 3, 1992. They
are registered with the RBI as an NBFC with effect from September 4, 1998 under section 451A
of the Reserve Bank of India Act 1934.
A subsidiary of Mahindra & Mahindra Limited, they are one of India’s leading Non-
banking finance companies. Focused on the rural and semi-urban sector, they provide finance for
utility vehicles, tractors and cars and have the largest network of branches covering these areas.
Their goal is to be the preferred provider of retail financing services in the rural and semi-urban
areas of India, while their strategy is to provide a range of financial products and services to our
customers through our nationwide distribution network.
At Mahindra Finance we have a wide range of products and services, with something to
suit everyone’s needs. Right from finance for two wheelers, tractors, farm equipment, cars and
utility vehicles to commercial vehicles and construction equipment, they also have a group of
experts providing investment advice, surveying available market products and choosing the most
suitable to their customer’s needs.
ABOUT COMPANY:-
Mahindra and Mahindra financial services is one of India’s leading Non-banking finance
companies focused on the rural and semi-urban sectors providing finance for Utility Vehicles
(UVs), tractors and cars. They are a subsidiary of Mahindra & Mahindra Limited, a leading
tractor and UV manufacturer with over 60 years’ experience in the Indian market.
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Mahindra’s goal is to be the preferred provider of retail financing services in the rural and
semi-urban areas of India, while their strategy is to provide a range of financial products and
services to their customers through their nationwide distribution network. They seek to position
their selves between the organized banking sector and local money lenders, offering their
customers competitive, flexible and speedy lending services.
The company principally finance UVs used both for commercial and personal purposes,
tractors and cars. While they predominantly finance M&M UVs and tractors, they have
continued to expand their lending to vehicles Not manufactured by Mahindra & Mahindra Ltd.
BOARD & MANAGEMENT:-
At Mahindra Finance they currently have 10 Directors vested with the change of the general
supervision, direction and management of the operations and business of their Company.
THE PRIMARY RESPONSIBILITY OF THE BOARD OF DIRECTORS INCLUDES:-
Overseeing high standards of corporate governance and compliance with various laws.
Shaping their policies and procedures.
Monitoring their performance and evolving the growth strategy.
Setting up counter-party and other prudential risk management limits.
Overseeing their financial management and approving various lines of business.
MR. ANAND G. MAHINDRA
MR. ANJANIKUMAR CHOUDHARI
MR. BHARAT N. DOSHI
MR. UDAY Y.PHADKE
MR. DHANANJAY MUNGALE
MR. MANOHAR G. BHIDE
MR. NASSER MUNJEE
DR. PAWAN GOENKA
MR. PIYUSH MANKAD
MR. RAMESH G. IYER
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DAY-TO-DAY MANAGEMENT IS CARRIED OUT BY A MANAGEMENT
COMMITTEE COMPRISING:-
Mr. Ramesh Iyer – Managing Director
Mr. V.Ravi – Chief Financial Officer
Mr. Apurv Verma – Vice president (Operations)
Products & services:-
The company provides financial loans to tractors, utility vehicles, light commercial vehicles, cars,
two wheelers, three-wheelers and used vehicles.
Services include Mutual Fund distributions and financial advisory services.
In May 2004, as a supplement to their lending business they started an insurance broking business
through their wholly owned subsidiary, Mahindra Insurance Brokers Limited (MIBL).
BRANCH NETWORK:-
As of September 2006, 380 branches, with over 5 lakh customer contacts.
M&MFS LINEAGE & PROMOTER COMPANY:-
They are a subsidiary of the prestigious Mahindra & Mahindra (M&M) group, which
has 60 years of experience in the Indian market, and is among the top 10 industrial houses in
India. It is the only Indian company among the top five tractor manufacturers in the world,
and is the market leader in multi-utility vehicles in India. Their chief promoter company is
Mahindra and Mahindra (M&M). M&M’s main business is the manufacture and sale of utility
vehicles, light commercial vehicles, three-wheelers and tractors. It is the market leader by sales
of tractors in India (Source: - CRISINFAC).
In November 2003, in recognition of its global competitiveness in terms of cost and
quality, M&M received the Deming prize awarded by the Japanese union of Scientists &
Engineers. M&M is the first tractor manufacturer in the world to receive this prize.
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INVESTMENT ADVISORY SERVICES:-
Mahindra Finance is all about-encompassing of clients’ needs. So while they believe in making
assets easily available, they also believe in catering to those who want to create wealth from these assets.
Their Investment Advisory Services act as an avenue to help create and multiply wealth.
MUTUAL FUND DISTRIBUTION:-
Recently they have received the necessary permission from Reserve Bank of India (RBI) to start
the distribution of Mutual Fund products through their network. Hitherto they were only participating in
the liability requirements of their customers but with their mutual fund distribution business, they can also
participate in their asset allocation.
When it comes to investing, everyone has unique needs based on their own objectives and risk
profile. While many investment avenues such as fixed deposits, bonds etc. exist, it is usually seen that
equities typically outperform these investments, over a longer period of time. Hence they are of the
opinion that, systematic investment in equity allows one to create substantial wealth.
However, investing in equity is Not as simple as investing in bonds or bank deposits, because
only proper allocation of portfolio gives maximum returns with moderate risk, and this requires expertise
and time.
M&MFS Investment advisory Services helps the investor to invest their money in equity through
different Mutual Fund Schemes. They ensure the best for their clients by identifying products best suited
to individual needs.
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PRODUCT PROFILE
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Mutual Funds
Before we understand what is mutual fund, it’s very important to know the area in which
mutual funds works, the basic understanding of stocks and bonds.
Stocks :
Stocks represent shares of ownership in a public company. Examples of public
companies include Reliance, ONGC and Infosys. Stocks are considered to be the most common
owned investment traded on the market.
Bonds :
Bonds are basically the money which you lend to the government or a company, and in
return you can receive interest on your invested amount, which is back over predetermined
amounts of time. Bonds are considered to be the most common lending investment traded on the
market. There are many other types of investments other than stocks and bonds (including
annuities, real estate, and precious metals), but the majority of mutual funds invest in stocks
and/or bonds.
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CONCEPT OF 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 appreciation realized is shared by its unit holders in proportion to the number of
units owned by them. Thus a Mutual fund is the most suitable investment for the common man
as it offers an opportunity to invest in a diversified, professionally managed basket of securities
at a relatively low cost. Every Mutual Fund is managed by a fund manager, who using his
investment management skills and necessary research works ensures much better return than
what an investor can manage his own. The capital appreciation and other income earned from
these investments are passed on to the investors (also known as unit holders) in proportion of the
number of units they own.
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Overview of existing schemes existed in mutual fund category
Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview into the
existing types of schemes in the Industry.
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TYPES OF MUTUAL FUNDS
GENERAL CLASSIFICATION OF MUTUAL FUNDS:-
OPEN-END FUNDS:-
Funds that can sell and purchase units at any point in time are classified as open-end Funds. The
size (corpus) of an open-end fund is variable (keeps changing) because of continuous selling (to
investors) and repurchases (from the investors) by the fund. An open-end fund is Not required to keep
selling new units to the investors at all times but is required to always repurchase, when an investor wants
to sell his units. The NAV of an open-end fund is calculated every day.
CLOSED-ENDFUNDS:-
Funds that can sell a fixed number of units only during the new fund offer (NFO) period are
known as closed-end Funds. The corpus of a closed-end Fund remains unchanged at all times. After the
closure of the offer, buying and redemption of units by the investors directly from the Funds is Not
allowed. However, to protect the interests of the investors, SEBI provides investors with two avenues to
liquidate their positions:-
1. Closed-end Funds are listed on the stock exchanges where investors can buy/sell units
from/to each other. The trading is generally done at a discount to the NAV of the scheme.
The NAV of a closed-end fund is computed on a weekly basis (updated every Thursday).
2. Closed-end Funds may also offer “buy-back of units” to the unit holders. In this case, the
corpus of the fund and its outstanding units do get changed.
/
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TYPES O FUND:-
1. Equity fund:
These funds invest a maximum part of their corpus into equities holdings. The structure of
the fund may vary different for different schemes and the fund manager’s outlook on different
stocks. The Equity Funds are sub-classified depending upon their investment objective, as
follows:
Diversified Equity Funds
Mid-Cap Funds
Sector Specific Funds
Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds rank high on the
risk-return matrix.
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2. Debt funds:
The objective of these Funds is to invest in debt papers. Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
Gilt Funds: Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are associated
with Interest Rate risk. These schemes are safer as they invest in papers backed by
Government.
Income Funds: Invest a major portion into various debt instruments such as bonds,
corporate debentures and Government securities.
MIPs: Invests maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt market. These
scheme ranks slightly high on the risk-return matrix when compared with other debt
schemes.
Short Term Plans (STPs): Meant for investment horizon for three to six months. These
funds primarily invest in short term papers like Certificate of Deposits (CDs) and
Commercial Papers (CPs). Some portion of the corpus is also invested in corporate
debentures.
Liquid Funds: Also known as Money Market Schemes, These funds provides easy
liquidity and preservation of capital. These schemes invest in short-term instruments like
Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for
short-term cash management of corporate houses and are meant for an investment
horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are
considered to be the safest amongst all categories of mutual funds.
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3. Balanced funds: As the name suggest they, are a mix of both equity and debt funds. They
invest in both equities and fixed income securities, which are in line with pre-defined investment
objective of the scheme. These schemes aim to provide investors with the best of both the
worlds. Equity part provides growth and the debt part provides stability in returns.
BY INVESTMENT OBJECTIVE
Growth Schemes: Growth Schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term. These schemes
normally invest a major part of their fund in equities and are willing to bear short-term
decline in value for possible future appreciation.
Income Schemes: Income Schemes are also known as debt schemes. The aim of these
schemes is to provide regular and steady income to investors. These schemes generally
invest in fixed income securities such as bonds and corporate debentures. Capital
appreciation in such schemes may be limited.
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How are funds different in terms of their risk profile?
Equity Funds High level of Return , but has a high level of risk too
Debt Funds Returns comparatively less risky than equity funds
Liquid and Money Market Funds Provide stable but low level of return
Investors have to face the risk- return trade off
Balanced Schemes: Balanced Schemes aim to provide both growth and income by
periodically distributing a part of the income and capital gains they earn. These schemes
invest in both shares and fixed income securities, in the proportion indicated in their offer
documents (normally 50:50).
Money Market Schemes: Money Market Schemes aim to provide easy liquidity,
preservation of capital and moderate income. These schemes generally invest in safer,
short-term instruments, such as treasury bills, certificates of deposit, commercial paper
and inter-bank call money.
OTHER SCHEMES
Tax Saving Schemes: Tax-saving schemes offer tax rebates to the investors under tax
laws prescribed from time to time. Under Sec.88 of the Income Tax Act, contributions
made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate.
Index Schemes: Index schemes attempt to replicate the performance of a particular index
such as the BSE Sensex or the NSE 50. The portfolio of these schemes will consist of
only those stocks that constitute the index. The percentage of each stock to the total
holding will be identical to the stocks index weightage. And hence, the returns from such
schemes would be more or less equivalent to those of the Index.
Sector Specific Schemes: These are the funds/schemes which invest in the securities of
only those sectors or industries as specified in the offer documents. e.g. Pharmaceuticals,
Software, Fast Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in
these funds are dependent on the performance of the respective sectors/industries. While
these funds may give higher returns, they are more risky compared to diversified funds.
Investors need to keep a watch on the performance of those sectors/industries and must
exit at an appropriate time.
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Types of returns:
There are three ways, where the total returns provided by mutual funds can be enjoyed by
investors:
Income is earned from dividends on stocks and interest on bonds. A fund pays out nearly
all income it receives over the year to fund owners in the form of a distribution.
If the fund sells securities that have increased in price, the fund has a capital gain. Most
funds also pass on these gains to investors in a distribution.
If fund holdings increase in price but are not sold by the fund manager, the fund's shares
increase in price. You can then sell your mutual fund shares for a profit. Funds will also
usually give you a choice either to receive a check for distributions or to reinvest the
earnings and get more shares.
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ADVANTAGES OF INVESTING IN MUTUAL FUNDS:-
1. Professional Management: - You avail of the services of experienced and skilled
professionals who are backed by a dedicated investment research team , which analyses
the performance and prospects of companies and selects suitable investments to achieve
the objectives of the scheme.
2. Diversification: - Mutual funds invest in a number of companies across a broad cross
section of industries and sectors. This diversification reduces the risk because seldom do
all stocks declare at the same time in the same proportion. You achieve this
diversification through a mutual fund with a far less money than you can do on your own.
3. Convenient Administration: - Investing in mutual fund reduces the paper work
and helps you avoid many problems such as bad deliveries, delayed payments, and
unnecessary follow up with brokers and companies.
4. Return potential: - Over a medium to long-term, Mutual Funds have the potential to
provide a higher return as they invest in a diversified basket of selected securities.
5. Low costs: - Mutual Funds are a relatively less expensive way to invest compared to
directly investing in the capital markets because the benefits of scale in brokerage,
custodial and other fees translate into lower costs for investors.
6. Liquidity: - In open-ended schemes, you can get your money back promptly at net
asset value related prices from the Mutual Fund itself.
7. Transparency: - You get regular information on the value of your investment in
addition to disclosure on the specific investments made by your scheme, the proportion
invested in each class of assets and the fund manager’s investment strategy and outlook.
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8. Flexibility: - Through features such as regular investment plans, regular withdrawal
plans and dividend reinvestment plans, you can systematically invest or withdraw funds
according to your needs and convenience.
9. Choice of schemes: - Mutual Funds offer a family of schemes to suit yiur varying
needs over a lifetime.
10. Well Regulated: - All Mutual Funds are registered with SEBI and functions within
the provisions of strict regulations designed to protect the interests of investors. The
operations of Mutual Funds are regularly monitored.
Mutual Funds Industry in India
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The origin of mutual fund industry in India is with the introduction of the concept of
mutual fund by UTI in the year 1963. Though the growth was slow, but it accelerated from the
year 1987 when non-UTI players entered the industry.
In the past decade, Indian mutual fund industry had seen a dramatic improvements, both
quality wise as well as quantity wise. Before, the monopoly of the market had seen an ending
phase, the Assets Under Management (AUM) was Rs. 67bn. The private sector entry to the fund
family rose the AUM to Rs. 470 in in March 1993 and till April 2004, it reached the height of
1,540 bn.
Putting the AUM of the Indian Mutual Funds Industry into comparison, the total of it is
less than the deposits of SBI alone, constitute less than 11% of the total deposits held by the
Indian banking industry.
The main reason of its poor growth is that the mutual fund industry in India is new in the
country. Large sections of Indian investors are yet to be intellectuated with the concept. Hence, it
is the prime responsibility of all mutual fund companies, to market the product correctly abreast
of selling.
The mutual fund industry can be broadly put into four phases according to the
development of the sector. Each phase is briefly described as under.
First Phase - 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was
set up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of the Reserve Bank of India. In 1978 UTI was de-linked from the
RBI and the Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under management.
Second Phase - 1987-1993 (Entry of Public Sector Funds)
Entry of non-UTI mutual funds. SBI Mutual Fund was the first followed by
Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian
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Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct
92). LIC in 1989 and GIC in 1990. The end of 1993 marked Rs.47,004 as assets under
management.
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. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.
Fourth Phase - since February 2003
This phase had bitter experience for UTI. It was bifurcated into two separate
entities. One is the Specified Undertaking of the Unit Trust of India with AUM of
Rs.29,835 crores (as on January 2003). 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.76,000 crores of AUM and with the
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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.
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REVIEW OF THE LITERATURE
REVIEW OF THE LITERATURE
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A mutual fund is nothing more than a collection of stocks and/or bonds. One can think of
a mutual fund as a company that brings together a group of people and invests their money in
stocks, bonds, and other securities. Each investor owns shares, which represent a portion of the
holdings of the fund.
Mutual Fund will also usually give you a choice either to receive a cheque for
distributions or to reinvest the earnings and get more shares.
It can be seen from the above that Mutual Fund is a trust that pools the savings of a
number of investors who share common 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.
Diversification is a major advantage of investment through Mutual Funds, as the
investors get the benefit of various instruments through a single avenue. Mutual funds offer tax
benefits. Dividend income received from investing in Mutual Funds is tax free in the hands of
the investors. Investments in the growth option will be subject to long term or short-term capital
gains tax as applicable.
Marketing's Biggest Challenge:
It's not a matter of jumping on the latest trend. Rather, it's the need to define a role and goals
in a world transformed by technology
Some people collect salt shakers, some people collect vintage cars. I collect definitions of
marketing terms -- the meanings of words like "marketing" and "brand" -- that I find in books, on
the Web, and in conversations with colleagues and clients. I know, it's the kind of hobby that
should come with a pocket protector, but it's one of the few ways you can track the evolution of
the marketing concept and keep it grounded in a historical perspective. This is something
marketing as a profession desperately lacks.
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Brand awareness in marketing:
The ultimate goal of most businesses is to increase sales and income. Ideally, you want to
attract new customers to your products and encourage repeat purchases. Brand awareness refers
to how aware customers and potential customers are of your business and its products.
Within a week after its introduction, surveys found that more than 90% of US consumers
had heard about the iPhone as a result of advertising and news reports. This is exceptionally high
brand awareness. Ultimately, achieving successful brand awareness means that your brand is
well known and is easily recognizable. Brand awareness is crucial to differentiating your product
from other similar products and competitors
Brand Awareness Plan:
The major components of a plan to develop brand awareness are:
• Identifying and understanding your target customers.
• Creating a company name, logo, and slogans.
• Adding value through packaging, location, service, special events, etc.
• Advertising.
• After-sale follow-up and customer relations management.
Targeting the right audience is crucial to your success. Of similar importance is understanding
that you need a plan along with specific actions that increase awareness of your brand
amongst your consumers. Throughout the entire process of creating a brand, it is of utmost
importance to consider how what you do will increase brand awareness.
Why is Brand Awareness Important?
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There are few things more worthwhile than investing time in your brand’s awareness. It can
play a major role in purchasing decisions. The reality is, the more aware consumers are of your
product and your brand, and the more likely they are to buy from you.
Among the challenges faced in selling pure maple products are:
• Do potential customers know you exist?
• Why pay more for Pure Maple vs. an artificial syrup?
• Isn’t Vermont maple syrup better?
• Why pay more for your products rather than from a less expensive alternative?
In the future, and for the sake of your business, it is in your best interests to take action to
increase awareness of your brand.
Maintaining Brand Awareness:
It is important to keep working at the issues and activities identified above. Pay attention to
how customers are responding to products, packaging, displays, and messages. Look for ways to
improve the image you are trying to get across. Ask your customers for suggestions. Work to
maintain a consistent presence in the market place. This can mean a location and regular times
where customers can reliably expect to find you.
The NY Maple Producers booth at the State Fair has been in a prime location for many years.
They need to move to gain more sales space and will have to have a plan to help customers find
their new location. If your business is wholesaling maple products to retail locations, you need to
stay in regular and reliable contact with your customers. They should not have to come looking
for you when they need to re-stock or they will turn to suppliers that make it easier for them to
operate their businesses.
Although the last decades’ specialized literature revealed and crystallized the concept of
brand equity (in relation to which brand awareness is one of the fundamental dimensions) the
term has been and still is approached in several manners in the specialized literature.
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Aaker (1991) approaches brand equity as a set of fundamental dimensions grouped into
a complex system comprising mainly: brand awareness, brand perceived quality, brand loyalty
and brand associations. He also suggests a “brand equity ten” model for assessing brand equity
(Aaker, 1996), taking into consideration several factors among which brand awareness is
fundamental.
Kevin Lane Keller (1998, p.45) approaches brand equity from a customer based
perspective defining it as “the differential effect of brand knowledge on consumer response to
the marketing of the brand”.
Farquhar (1989) considers that building a strong brand within consumers’ minds means
creating a positive brand evaluation, an accessible brand attitude, and a consistent brand image,
the accessible brand attitude actually referring to what the others term as awareness. As already
mentioned, an important dimension of brand equity is brand awareness, very often an
undervalued component. Not only that awareness is almost a prerequisite for a brand to be
included in the consideration set (the brands that receive consideration for purchase), but it also
influences perceptions and attitudes, and can be a driver for brand loyalty (Aaker, 1991).
Reflecting the salience of the brand in the customers mind, awareness can be assessed at
several 104 levels such as recognition, recall, top of mind, brand dominance (the only brand
recalled), or, even more, brand knowledge (what the brand stands for is very well known by
consumers) (Aaker, 1996).
Brand awareness is the first and prerequisite dimension of the entire brand knowledge
system in consumers’ minds, reflecting their ability to identify the brand under different
conditions: the likelihood that a brand name will come to mind and the ease with which it does
so (Keller, 1993).
Brand awareness can be depicted into brand recognition (consumers’ ability to confirm
prior exposure to the brand when given the brand as cue) and brand recall (consumers’ ability to
retrieve the brand when given the product category, the needs fulfilled by the category, or some
other cues). Brand awareness is essential in buying decision-making as it is important that
consumers recall the brand in the context of a given specific product category, awareness
increasing the probability that the brand will be a member of the consideration set.
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Awareness also affects decisions about brands in the consideration set, even in the
absence of any brand associations in consumers’ minds. In low involvement decision settings, a
minimum level of brand awareness may be sufficient for the choice to be final.
Awareness can also influence consumer decision making by affecting brand associations
that form the brand image (Keller, 1998).Considering Farquhar’s (1989) approach of brand
equity, the accessible attitude he refers to is related to how quickly a consumer can retrieve brand
elements stored in his/her memory (brand awareness).
The attitude activation is sometimes “automatic” (it occurs spontaneously upon the mere
observation of the attitude object) and sometimes “controlled” (the active attention of the
individual to retrieve previously stored evaluation is required). It was also proven (Farquhar,
2000) that only high accessible attitudes (brands with a high level of awareness) can be relevant
when purchasing or repurchasing a brand.
Other authors (Laurent, Kapferer and Roussel, 1995) suggest three classical measures of
brand awareness in a given product category: spontaneous (unaided) awareness (consumers are
asked, without any prompting, to name the brands they know in the product category – in this
case the unaided awareness of a brand is the percentage of interviewees indicating they know
that brand), top of mind awareness (using the same question, the percentage of interviewees who
name the brand first is considered) and, respectively, aided awareness (brand names are
presented to interviewees – in this case the aided awareness of a brand is the percentage of
interviewees who indicate they know that brand).
Among the main functions of a brand from the consumers’ perspective is considered to
be the minimization of perceived purchasing risk, which in turn helps cultivate a trust-based
relationship. Brand awareness can influence consumers’ perceived risk assessment and their
confidence in the purchase decision, due to familiarity with the brand and its characteristics.
CHAPTER IV
DATA ANALYSIS AND INTERPRETATION
TABLE No.1
TABLE SHOWING THE AGE OF THE RESPONDENTS
32
S.No Age No of Respondents Percentage
1 Less than 25 06 02
2 25-35 115 38
3 35-45 143 48
4 45-55 30 10
5 More than 55 06 02
Total 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents 48% of them were in the
age group of 35-45 and 38% of them were in the age of 25-35, 10% them were in the age of 45-
55 and 2% of them were in the age of less than 25 and another 2% of them were in the age of
more than 55. The majority of the respondents were under the age of 35-45.
CHART No. 1
CHART SHOWING THE AGE OF THE RESPONDENTS
33
less than 25 25-35 35-45 45-55 more than 550
20
40
60
80
100
120
140
160
respondentpercentage
Age
perce
ntag
e with
Resp
onde
nts
TABLE No.2
TABLE SHOWING THE GENDER OF THE RESPONDENTS
34
S.No Gender No of Respondents Percentage
1 Male 282 94
2 Female 18 06
Total 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents 94% of the were male and
6% of them were female. The majority of the respondents were male.
CHART No.2
CHART SHOWING THE GENDER OF THE RESPONDENTS
35
94%
6%
Percentage of respondents
malefemale
TABLE No.3
TABLE SHOEING THE MARITAL STATUS OF THE RESPONDENTS
36
S.No. Marital Status No of Respondents Percentage
1 SINGLE 24 08
2 FEMALE 276 92
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents 92% of them were married
and 8% of them were single. The majority of the respondents are married.
CHART No.3
TABLE SHOWING THE MARITAL STATUS OF THE RESPONDENTS
37
GENDER0
10
20
30
40
50
60
70
80
90
100
SINGLEMARRIED
perce
ntag
e of r
espo
nden
ts
TABLE No.4
TABLE SHOWING THE FAMILY SIZE OF THE RESPONDENTS
38
S.No. Family Size No of Respondents Percentage
1 2 06 02.00
2 3-4 95 31.67
3 4-5 125 41.67
4 More than 5 74 24.66
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents 41.67% of them were in
the family size of 4-5 and 31.67% of them were in the family size 3-4, 24.66% of them were in
the family size of more than 5 and 2% of them were in the family size of 2. The majority of the
respondents were under the family size 4-5.
CHART No.4
TABLE SHOWING THE FAMILY SIZE OF THE RESPONDENTS
39
2 3-4 4-5 MORE THAN 50
5
10
15
20
25
30
35
40
45
2
31.67
41.67
24.66
percentage of respondent
FAMILY SIZE
TABLE No.5
TABLE SHOWING THE EDUCATION OF THE RESPONDENTS
40
S.No Education No of Respondents Percentage
1 SCHOOLING 00 00.00
2 UG 78 26.00
3 PG 155 51.67
4 PROFESSIONAL 37 12.33
5 OTHERS 30 10.00
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents 51.67% of them were
postgraduates, 26% of them were graduates, 12.33% of the respondents were professionals, 10%
of them were in the other category. The majority of the respondents were postgraduates.
CHART No.5
CHART SHOWING THE EDUCATION OF THE RESPONDENTS
41
schooling UG PG PROFESSIONAL OTHERS0
10
20
30
40
50
60
0
26
51.67
12.3310
PERCENTAGE
TABLE No.6
TABLE SHOWING THE OCCUPATION OF THE RESPONDENTS
42
S.No. Occupation No of Respondents Percentage
1 GOVT. EMPLOYEES 35 11.67
2 PRIVATE EMPLOYEES 134 44.67
3 BUSINESS 94 31.33
4 PROFESSIONAL 37 12.33
5 OTHERS 00 00.00
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents 44.67% of them were
private employees, 31.33% of them were belongs to business peoples, 12.33% of respondents
belongs to professionals,11.67% of them were govt. employees. The majority of the respondents
belong to private concern employees.
CHART No.6
CHART SHOWING THE OCCUPATION OF THE RESPONDENTS
43
govt.employees private employees
business professional others0
5
10
15
20
25
30
35
40
45
50
percentage
Occuapation
Perc
enta
ge
TABLE No.7
TABLE SHOWING THE ANNUAL INCOME OF THE RESPONDENTS
44
S.No. Annaul income No of Respondents Percentage
1 1,00,000-2,00,000 18 06
2 2,00,000-3,00,000 60 20
3 3,00,000-4,00,000 75 25
4 4,00,000-5,00,000 105 35
5 More than 5,00,000 42 14
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents 35% of them were earning
between Rs.4,00,000-5,00,000, 25% of them were earning between Rs 3,00,000-4,00,000, 20%
of them were earning between Rs. 2,00,000-3,00,000. 14% of them were earnings between
Rs.1,00,000-2,00,000. The respondents were earnings between Rs. 4,00,000-5,00,000.
CHART No.7
45
CHART SHOWING THE ANNUAL INCOME OF THE RESPONDENTS
ANNUAL INCOME0
5
10
15
20
25
30
35
40
1,00,000-2,00,0002,00,000-3,00,0003,00,000-4,00,0004,00,000-5,00,000More than 5,00,000
Perc
enta
ge o
f res
pond
ents
TABLE No.8
TABLE SHOWING THEM INVESTMENTS MADE BY THE RESPONDENTS
46
S.No. Invesments No of Respondents Percentage
1 Bank 109 36
2 Equity related 114 38
3 Bullions 32 11
4 Real estate 45 15
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents,38% of the respondent
were invested in equity related investment,36% of the respondents were invested in the
banks,11% of the respondents were invested in the billions and 15% of the respondents were
invested in real estate. The majority of the respondents were invested in equity related
investments.
CHART No.8
CHART SHOWING THE INVESTMENTS MADE BY THE RESPONDENTS
47
Bank Equity related Bullions Real estate0
5
10
15
20
25
30
35
40
Investments
Investments
Perce
ntage
TABLE No.9
48
TABLE SHOWING THE OPINION REGARDING MUTUAL FUND INVESTMENTS
BY THE RESPONDENTS
S.No. Invested in mutual fund No of Respondents Percentage
1 Yes 300 100
2 No 0.00 0.00
300 100
INFERENCE:-
The above table clearly shows that out of the total respondents, 100% of the respondents were
invested in mutual funds. The majority of the respondents were invested in mutual funds.
CHART No.9
49
CHART SHOWING THE OPINION REGARDING MUTUAL FUND INVESTMENTS
BY THE RESPONDENTS
Yes No0
20
40
60
80
100
120
Percentage
LEVEL OF MUTUAL FUND INVESTMENT
PERC
ENTA
GE O
F RE
SPO
NDE
NTS
TABLE No.10
50
TABLE SHOWING THE AWARENESS OF MUTUAL FUND BY THE RESPONDENTS
S.No Awareness of mutual fund No of Respondents Percentage
1 YES 300 100
2 NO 0.00 0.00
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents, 100% of the respondents
were aware of the mutual fund. The majority of the respondents were aware of the mutual funds.
CHART No.10
51
CHART SHOWING AWARENESS OF THE MUTUAL FUND OF THE RESPONDENTS
Yes No0
20
40
60
80
100
120
Percentage
Awareness of mutual fund
Perc
enta
ge o
f res
pond
ents
TABLE No.11
52
TABLE SHOWING THE TYPE OF MUTUAL FUND INVESTMENT WISH (BASED ON
RISK/RETURN) BY THE RESPONDENTS
S.No Risk and Return No of Respondents Percentage
1 High risk and high return 85 28.33
2 Moderate risk and moderate
return
144 48.00
3 Low risk and low return 71 23.67
4 TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents, 48% of the respondents
were invested in mutual fund on the basis of moderate risk and return, 28.33% of the
respondents were invested in mutual fund on the basis of high risk and high return,23.67% of the
respondents were invested in mutual fund on the basis of Low risk and low return. The majority
of the respondents were invested in mutual funds on the basis of moderate risk and return.
CHART No.11
53
CHART SHOWING THE TYPE OF MUTUAL FUND INVESTMENT WISH (BASED
ON RISK/RETURN) BY THE RESPONDENTS
High risk and high return Moderate risk and moderate return
Low risk and low return0
10
20
30
40
50
60
Percentage
Risk and return
Perc
enta
ge o
f res
pond
ents
TABLE No.12
54
TABLE SHOWING THE PREFERENCES OF MUTUAL FUND BY THE
RESPONDENTS
S.No Prederences No of Respondents Percentage
1 Equity funds 93 31.00
2 Debt funds 62 20.67
3 Hybrid / balanced funds 145 48.33
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents, 48.33% of the
respondents were invested in mutual fund on preferring the hybribd / balanced funds, 31% of the
respondents were invested in mutual funds on preferring the equity funds, 20.67% of the
respondents were invested in mutual funds on preferring the debt funds. The majority of the
respondents were invested in mutual funds on preferring the hybrid/balanced funds.
CHART No.12
55
CHART SHOWING THE PREFERENCES OF MUTUAL FUND BY THE
RESPONDENTS
Equity funds Debt funds Balanced funds0
10
20
30
40
50
60
Percentage
PREFERENCES
PERC
ENTA
GE O
F RE
SPO
NDE
NTS
TABLE No.13
56
TABLE SHOWING THE TIME DURATION FOR MUTUAL FUND BY THE
RESPONDENTS
S.No Time duration No of Respondents Percentage
1 1-2 years 85 28.33
2 3-5 years 135 45.00
3 6-10 years 54 18.67
4 More than 10 years 26 08.67
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 45% of the respondents
were invested in mutual funds for the time period of 3-5 years,28.33% of the respondents were
invested in mutual funds for the time period of 1-2 years, 18% of the respondents had invested in
mutual funds for the time period of more than 10 years. The majority of the respondents were
invested in mutual funds for the time period of 3-5 years.
CHART No.13
57
CHART SHOWING THE TIME DURATION FOR MUTUAL FUND BY THE
RESPONDENTS
1-2 years 3-5 years 6-10 years More than 10 years
0
5
10
15
20
25
30
35
40
45
50
Percentage
Time duration of mutual fund
Perc
enta
ge o
f res
pond
ents
TABLE No.14
58
TABLE SHOWING THE FACTORS INFLUCING FOR MUTUAL FUND INVESMENTS
BY THE RESPONDENTS
S.No Factors No of Respondents Percentage
1 Fund house 245 4
2 Past performance 300 1
3 Executive advice 256 3
4 Fund manager 274 2
INFERENCE:-
From the above table it can be inferred that most of the respondents consider past
performance as an important factor their mutual fund investments consistent portion of them also
look at the fund manager’s experience in their mutual fund investments.
CHART No.14
59
CHART SHOWING THE FACTORS INFLUCING MUTUAL FUND INVESTMENTS
BY THE RESPONDENTS
FACTORS0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
FUND HOUSEPAST PERFORMANCEEXECUTIVE ADVICEFUND MANAGER
Rang
e of
resp
onde
nts
TABLE No.15
60
TABLE SHOWING THE RETURNS EXPECTATION IN MUTUAL FUND
INVESMENTS BY THE RESPONDENTS
S.No Return Expectation (%) No of Respondents Percentage
1 10-15 48 16.00
2 15-20 158 52.67
3 20-25 86 28.67
4 Above 25 08 02.66
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 52.67% of the
respondents expects the return upto 15% to 20%, 28.67% of the respondents expects the return
upto 20% to 25%, 16% of the respondents expects the return upto 10% to 15%, 2.66% of the
respondents expects the return abaove 25%. The majority of the respondents expects the return
upto 15% to 20%.
CHART No.15
61
CHART SHOWING THE RETURNS EXPECTATION IN MUTUAL FUND
INVESMENTS BY THE RESPONDENTS
10-15 15-20 20-25 Above 250
10
20
30
40
50
60
PERCENTAGE
RETURN EXPECTATION
PERC
ENTA
GE O
F RE
SPO
NDE
NTS
TABLE No.16
62
TABLE SHOWING THE PRIMARY OBJECTIVE OF INVESMENTS
IN MUTUAL FUND
S.NO Objective of Investment No of Respondents Percentage
1 Capital Appreciation 64 21.33
2 Safety of investment 120 40.00
3 Regular Income 60 20.00
4 Tax benefit 56 18.67
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 21.33% of the
respondents were giving importance for capital appreciation. 40% of the respondents are
considers their investments for safety. 20% of the respondents preferred mutual fund investment
for their regular income. 18.67% of the respondents considers for tax benefit.
CHART No.16
63
CHART SHOWING THE PRIMARY OBJECTIVE OF INVESMENTS
IN MUTUAL FUND
Capita
l Apprec
iation
Safety
of inves
tmen
t
Regular
Income
Tax ben
efit
0
5
10
15
20
25
30
35
40
45
PERCENTAGE
Objective of investment
perc
enta
e of
resp
onde
nts
TABLE No.17
64
TABLE SHOWING THE SOURCE OF INVESTMENT ABOUT MUTUAL FUND
S.No Source of information No of Respondents Percentage
1 News paper 44 14.67
2 Magazines 30 10.00
3 Advertisement 46 14.33
4 Agents 43 28.67
5 Friends & relatives 86 15.33
6 Financial advisor 51 17.00
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 28.67% of the
respondents got information through agents.15.33% of the respondents got information through
financial advisor. 17% of the respondents got information through friends & relatives.
CHART No.17
65
CHART SHOWING THE SOURCE OF INVESTMENT ABOUT MUTUAL FUND
News p
aper
Magazin
es
Advertisem
entAgen
ts
Friends &
relati
ves
Finaci
al advis
or0
10
20
30
40
50
60
Percentage
Source of information
Perc
enta
ge o
g res
pond
ents
TABLE No.18
66
TABLE SHOWING THE TYPE OF FUND
S.No. Type of fund No of Respondents Percentage
1 Open – ended 176 58.67
2 Close - ended 124 41.33
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 58.67% of the
respondents prefer open-ended scheme. 41.33% of the respondents prefer closed-ended scheme.
CHART No.18
67
CHART SHOWING THE TYPE OF FUND
Open- ended close - ended0
10
20
30
40
50
60
70
PERCENTAGE
Type of fund
Perc
enta
ge o
f res
pond
ents
TABLE No.19
68
TABLE SHOWING THE PERFORMANCE OF MUTUAL FUND
S.No. Performance of mutual fund No of Respondents Percentage
1 Past performance 57 19.00
2 NAV 49 16.33
3 Returns/Dividends 69 23.00
4 Portfolio of fund 55 18.33
5 Ratings 43 14.34
6 Compare to Benchmark 27 09.00
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 23% of the respondents
giving preference to returns/Dividends, and 19% of the respondents giving preference to past
performance, 18.33% of the respondents giving preference of port folio of fund and so on.
CHART No.19
69
CHART SHOWING THE PERFORMANCE OF MUTUAL FUND
Past per-formance
NAV Returns/Dividends
Portfolio of fund
Ratings Compare to Benchmark
0
5
10
15
20
25
Percentage
PERFORMANCE OF MUTUAL FUND
Perc
enta
ge o
f res
pond
ents
TABLE No.20
70
TABLE SHOWING THE PREFERRED OPTION IN MUTUAL FUNDS
S.No Preferred option in mutual fund No of Respondents Percentage
1 On Going Fund 230 76.67
2 New fund Offer 70 23.33
TOTAL 300 100.00
INFERENCE:-
The above table clearly shows that out of the total respondents, 76.67% of the
respondents preferring On Going Fund and 23.33% of the respondents preferring new Fund
Offer.
CHART NO.20
71
CHART SHOWING THE PREFERRED OPTION IN MUTUAL FUNDS
On Going Fund New fund Offer0
10
20
30
40
50
60
70
80
90
Percentage
Preferred option in mutual fund
Perc
enta
ge o
f the
resp
onde
nts
TABLE NO.21
72
TABLE SHOWING THE SATISFICATION WITH PRESENT AGENT/DISTRIBUTION
IN THE CASE OF SERVICE
S.No Satisfication level No of Respondents Percentage
1 Fully satisfied 153 51
2 Moderate 102 34
3 Not Satisfied 45 15
TOTAL 300 100
INFERENCE:-
The above table clearly shows that out of the total respondents, 51% of the respondents
are fully satisfied. 34% of the respondents are moderate. 15% of the respondents dissatisfied.
CHART NO.21
73
CHART SHOWING THE SATISFICATION WITH PRESENT AGENT/DISTRIBUTOR
IN THE CASE OF SERVICE
Fully satisfied Moderate Not Satisfied0
10
20
30
40
50
60
percentage
Satisfication with present Agent/distributer in the case of service
perc
enta
ge o
f res
pond
ents
74
RESEARCH METHODOLOGY
CHAPTER III
75
RESEARCH METHODOLOGY
PRIMARY DATA:-
The main source of information this study was primary data, which was collected through questionnaire and direct observations.
SECONDARY DATA:-
Secondary data is used in this study, Information regarding the company profile, information regarding mutual funds, industrial trends etc were collected from the company, magazines, journals and related websites.
DATA COLLECTION:-
A convenient sampling method was used and samples were collected from different individuals who have various investments like in mutual funds. Data’s were collected directly from the investors. It helps to collect perfect and correct data from the investors. Respondents are from various places.
Sample size:-
Total sample size for this study is 150
Sampling method
The sampling method may be classified into two generic types:
a) Random sampling.
b) Non-random sampling.
“Random sampling” is being used in this study
Sampling unit:-
The investors located in the Chennai city are the sampling unit of the study.
Interview method:-
The personal interview has been used for the study.
Research instrument used:-
The questionnaire has been used for the collection of data.
Questionnaire type:-
76
The questionnaire includes bith the open ended and closed ended questions.
Statistical tools:-
The percentage analysis and Chi-Square test are used for the analysis of data.
77
DATA ANALYSIS AND INTERPRETATION
CHI – SQUARE TEST
78
TABLE No.1
THE RELATIONSHIP EXISTING BETWEEN AGE OF THE INVESTORS AND THEIR
RISK AND RETURN PREFERENCE
NULL HYPOTHESIS:-
HO:- There is no relationship between age and risk / return.
ALTERNATIVE _HYPOTHESIS:-
Ha:- There is a significant relationship between age and risk / return
Risk / Return
Age
High Risk and
High Return
Moderate Risk
And Moderate
Return
Low Risk and
Low Return
Total
<25 3 2 1 6
26-35 26 62 27 115
36-45 43 64 36 143
46-55 12 13 5 30
Above 55 1 3 2 6
TOTAL 85 144 71 300
Risk / Return High Risk and Moderate Risk
And Moderate
Low Risk and Total
79
AgeHigh Return Return Low Return
<25 1.7 2.88 1.42 6
26-35 32.58 55.2 27.22 115
36-45 40.52 68.64 33.84 143
46-55 8.5 14.4 7.1 3
Above 55 1.7 2.88 1.42 6
TOTAL 85 144 71 300
Calculated value = 6.88
Degree of freedom = 3
Critical value = 7.81
Since the critical value is greater than the calculated value. So, there is evidence
to accept the null hypothesis.
RESULT:-
There is no significant relationship between age and risk / return.
TABLE No.2
80
THE RELATIONSHIP EXISTING BETWEEN ANNUAL INCOME OF THE
INVESTORS AND THEIR RISK AND RETURN PREFERENCE
NULL HYPOTHESIS:-
HO:- There is no relationship between annual income and risk / return.
ALTERNATIVE _HYPOTHESIS:-
Ha:- There is a significant relationship between annual income and risk / return
Risk / Return
Age
High Risk and
High Return
Moderate Risk
And Moderate
Return
Low Risk and
Low Return
Total
1-2 5 8 6 18
2-3 2 31 17 60
3-4 18 33 24 75
4-5 19 65 21 105
Above 5 30 7 5 42
TOTAL 85 144 71 300
Risk / Return High Risk and Moderate Risk
And Moderate
Low Risk and Total
81
AgeHigh Return Return Low Return
1-2 5.1 8.64 4.26 18
2-3 17 28.8 14.2 60
3-4 21.25 36 17.75 75
4-5 29.75 50.4 24.85 105
Above 5 11.9 20.16 9.94 42
TOTAL 85 144 71 300
Calculated value = 53.18
Degrees of freedom = 7
Critical value = 14.1
Since the critical value is less than the calculated value. So, there is no evidence
to accept the null hypothesis.
RESULT:-
There is a relationship between annual income and risk / return.
82
FINDINGS
CHAPTER V
83
FINDINGS
75% of the investors prefer hybrid (balanced) funds for their mutual funds investments
consistent proportion of them also prefer equity funds.
70% of the awareness of the investors towards mutual fund investments were there to
maximum extent.
80% of a significant relationship existing between annual income of their investors and
their risk - return preference.
67% no significant relationship existing between age of their investors and their risk –
return preference.
97% that preference play a vitial role in mutual fund investments of the investors.
Consistent portion of them also consider the fund manager invested in their mutual fund
investment.
84
SUGGESTIONS
85
CHAPTER VI
SUGGESTIONS
Mahindra financial services limited can emphasize the ‘best performing – hybrid
(balanced)’ mutual fund schemes for their investors as it has attrached most of the
investors when comparing with equity and debt schemes. To some extend for certain
category of investors (preferably lower age group). The company can take the best
performing equity funds.
As the awareness for the mutual funds was prevailing to a greater extent, the company
financial services limited can easily promotes the mutual fund products. Hence they can
prioritize their force in selling mutual fund schemes.
As there was a significant relationship existing between the income and risk – return
preference, Mahindra financial services limited can concentrate on higher income group.
As there no significant relationship prevailing between age and risk – return preference.
Mahindra financial services limited can recommend the standard strategy for mutual fund
investment (i.e) for lower age group – equity funds, for middle aged persons – hybribd
schemes and for aged – debt schemes.
Mahindra financial services limited can recommend mutual fund schemes which have
consistence performance in the market with very good track record as most of the
investors prefer to it.
86
CONCLUSION
87
CHAPTER VII
CONCLUSION
Equity over a long- term has given better returns when comparing with any other
investments. Asset management companies in india mostly invest in equity and debt. As expert
handle mutual fund schemes investment in mutual funds has been considered wiser for a
common man than investing directly in stock market.
Based on the study it has been found out that most of the investors prefer hybribd
(Balanced) funds for mutual fund investments. Consistent proportion of them also prefer equity
funds. Hence Mahindra financial services limited can recommend the best performing hybribd
and equity funds for the customers which has been very good track record and consistency in
performance.
88
APPENDICS
89
APPENDICS
A STUDY ON INVESTORS PREFERENCES TOWARD
MUTUAL FUND IN CHENNAI CITY WITH
REFERENCE TO MAHINDRA FINANCE PVT.LTD.
1. NAME_________________________________________2. AGE:-
Less than 25 46-55 26-35 More than 55 years 36-45
3. SEX:- Male Female
4. Marital status:- Single Married
5. Family Size:-
2 3-4 4-5 More than 5
6. Education:- Schooling UG Professional PG
7. Occupation:- Govt. Employeed Private Employed Business
Professional others
8. Annual Income:-Less than Rs.1 Lakh Rs. 2 Lakhs Rs.2-5 Lakhs
Rs. 5-10 Lakhs More than Rs.10 Lakhs
90
9. Have you invested in the following:-
Particulars Yes No
Bank
Equity Related
Bullions
Real Estate
10.Are you aware of mutual fund investment? Aware Unaware
11.Have you invested in mutual fund? Yes No
12.What type of mutual fund investment you wish? (Based on Risk / Return) High Risk High Return Moderate Risk Moderate Return
Low Risk Low Return
13.Which is your preferred option in mutual fund? Equity Funds Debt Funds Hybribd / Balanced Funds
14.What can be the time duration for your mutual fund investment? 1-2 years 6-14 years 3-5 years
15.Which factor you consider while going to mutual fund investment? Fund house Executives Advice
Past Performance Fund Manager
16.What is your return expectation from your mutual fund investment? 10 – 15 % 20 – 25 % 15 – 20 % Above 25%
17. Primary objective of your investment in mutual fund would be? Capital Appreciation Safety of investment
Regular Income Tax Benefit
91
18. Source of information about mutual fund:- Newspaper Magazines Financial Advisor
Advertisement Agents Friends & Relatives
19.Which type of fund you prefer? Open – ended Close – ended
20. How do you assess the performance of a mutual fund?(Rank them)
Past Performance NAV Returns/Dividends
Portfolio of fund Ratings Compare to Benchmarks
21.What is the preferred option in mutual fund? On going fund New fund offer
22.Are you satisfied with present agent/distributer in the case of service? Fully satisfied Moderate Not satisfied
92
BIBLIOGRAPHY& WEBLIOGRAPHY
93
BIBLIOGRAPHY
KOTHARI, C.R., Research Methodology, Revised Second Edition, New Delhi, New Age
International (P) Ltd., 2004.
Richard I. Levin & David S.Rubin, “STATISTICS FOR MANAGEMENT”, Pearson
Education, Seventh Edition, 2002.
Marketing management by “ Philip Kotler ”
WEBILOGRAPHY
www.mutualfundsIndia.com
www.moneycontrol.com
www.mahindrafinance.com
www.valueresearch.com
www.nseindia.com
www.bseindia.com
www.tatamutualfund.com
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