CHAPTER IV DATA ANALYSIS AND...

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CHAPTER IV

DATA ANALYSIS AND INTERPRETATION

Age-wise Classification

The age is the deciding personal factor that influences the clients

towards the investment decisions. It is a factor that always helps the

investors in deciding the investments avenues, interest in making

investments, etc., Hence the classification of the respondents are made

on the basis of their age and presented in the table.

Table 4.1


Particulars No. of respondents (n=300)Percentage

(100%)

Below 25 yrs 53 17.7

26 to 35 yrs 84 28.0

36 to 45 yrs 107 35.7

46 to 55yrs 53 17.7

Above 55yrs 3 1.0

Source: Primary Data

Inference

Out of the total 300 respondents of Tata Mutual Funds, 53

respondents (17.7 %) are between the age group of below 25 years; 84

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respondents (28 %) are between the age group of 26 to 35 years; 107

respondents (35.7 %) are between the age group of 36 to 45 years; 53

respondents (17.7 %) are between the age group of 46 to 55 years and

the rest of 3 respondents (1 %) are at the age group of above 55 years.

It is inferred and concluded from the above that the most of 107

respondents (35.7 %) are at the age group between 36 to 45 years. It is

also known that the middle age group people are interested in making

their investments for future emergence and living.

Graph 4.1


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Gender-wise classification

Gender wise classification helps significantly in better

understanding people’s awareness and interest towards investment

options. Hence, the classification of the gender of the respondents is

made and presented in the table.

Table 4.2

Gender-wise Classification


(100%)

Male 225 75.0

Female 75 25.0


Inference

It is inferred from the above table that the male respondents are

225 (75 %) among the total 300 respondents. It is an overwhelming

majority that makes up 3/4th of the total number of respondents. The rest,

75 (25 %) respondents are female and comprise 1/4th of the total

respondents.

It is also inferred that the interest of the respondents is known

mostly from the male respondents. This exhibits their perception

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towards Tata Mutual Funds and the benefits that could be derived from

their investments with Tata Mutual Funds. It is concluded that the

maximum of 225 respondents (75 %) of the total are male in gender.

Graph 4.2

Gender-wise Classification

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Classification based on Marital Status

The marital status is a limiting and influencing factor of the

people towards making their investments. Due to family constraints and

needs the people want to make their investments. In this regard the

classification of the respondents on the basis of their marital status is

presented in the table below.

Table 4.3

Marital Status


(100%)

Single 168 56.0

Married 132 44.0


Inference

Among the total 300 respondents 168 respondents (56 %) are

unmarried and bachelors; 132 respondents (44 %) are married and

family people. They have known about the Tata Mutual Funds and the

benefits of the investments with Tata fund managers.

It is inferred and concluded that out of the total 300 respondents,

168 respondents (56 %) are unmarried and bachelors. This shows their

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personal interest for the social status and investments with Tata Mutual

Funds.

Graph 4.3

Marital Status

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Occupation-wise classification

The occupation of the respondents is the next significant deciding

factor for the investments. In this connection, the respondents are

classified on the basis of their occupation and presented in the table

below.

Table 4.4

Occupation wise classification

Particulars No. of respondents (n=300) Percentage

Service 43 14.3

Business 69 23.0

Professional 93 31.0

Retired 59 19.7

House wife 26 8.7

Others 10 3.3


Inference

Among the total 300 respondents, 43 respondents (14.3 %) are

doing service works; 69 respondents (23 %) are doing their own

business; 93 respondents (31 %) are professionals in different fields; 59

respondents (19.7 %) are retired people; 26 respondents (8.7 %) are

housewives; and 10 respondents (3.3 %) are otherwise engaged.

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It is inferred that the maximum of 93 respondents (31 %) of the

total are professionals and are following professions in different fields.

They are also very much interested in doing their investments at Tata

Fund managers.

Graph 4.4

Occupation wise classification

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Income wise classification

The income of the people is an essential factor that influences and

motivates them for making their investments. The Tata Mutual Fund

investors are classified on the basis of their income per annum and

presented in the table below.

Table 4.5


ParticularsNo. of respondents

(n=300)Percentage

Below 1.5 lakh 89 29.7

1.5 to 5 lakh 93 31.0

5 to 10Lakh 103 34.3

Above 10 lakh 15 5.0


Inference

Out of the total 300 respondents, 89 respondents (29.7 %) are

earning below Rs.1.5 lakhs; 93 respondents (31 %) are earning between

Rs.1.5 to Rs.5 lakhs per annum; 103 respondents (34.3 %) are earning

Rs.5 to 10 lakhs annually and the rest of 15 respondents (5 %) are

earning Rs.10 lakhs and above annually.

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It is inferred and concluded that the maximum of 103 respondents

(34.3 %) of the total are earning annually Rs.5 to 10 lakhs. They have

also had the investments proposal for their future in different segments.

Graph 4.5


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Importance of Financial Planning

The respondents are asked about financial planning and its

importance for life goals. They responded towards it both positively and

negatively. Their opinions are presented in the table below.

Table 4.6



Yes 139 46.3

No 161 53.7


Inference

Among the total 300 respondents of Tata Mutual Funds, 139

respondents (46.3 %) accepted and said that financial planning is

important for their life goals. But the rest of 161 respondents (53.7 %)

did not accept the statement and said that the financial planning is not at

all important for their life goals.

From the above, it can be inferred that the maximum of 161

respondents (53.7 %) of the total said that they are not interested in

financial planning for their life goals and also that they had not yet

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understood the importance. Even then they do some investments with

Tata Mutual Funds is a surprise and it reflects their perception.

Graph 4.6


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Plan for Investments

The respondents are required to present their opinion about their

plan of investments in Tata Mutual Funds. Their opinions are drawn and

presented in the table for inferring.

Table 4.7



Yes 137 45.7

No 163 54.3


Inference

Among the total 300 respondents of Tata Mutual Funds, 137

respondents (45.7 %) said that they planned for their investments with

Tata Mutual Funds in future. But the rest of 163 respondents (54.3 %)

said that they have not planned yet for any investments with Tata Mutual

Funds. This shows that it is either non interest or non awareness of the

mutual funds investments.

From the above table, it could be inferred that the maximum of

45.7% (137 respondents) of the respondents have planned for their

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investments with Tata Mutual Funds and the rest of them have not yet

planned for the same.

Graph 4.7


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Priority for Investments

The respondent’s awareness on investments with Tata Mutual

Funds and their priority for investments has been drawn and presented

in the table. The prioritization of investments is given significance and

opinions are inferred.

Table 4.8

Priority for Investment


Returns 84 28.0

Lower risk 70 23.3

Liquidity 94 31.3

Convenience 52 17.3


Inference

Out of the total 300 respondents, 84 respondents (28 %) have

prioritized the returns, 70 respondents (23.3 %) have prioritized the

lower risk; 94 respondents (31.3 %) have preferred the liquidity as

priority; and the rest 52 respondents (17.3 %) have preferred the

convenience as priority for their investments with Tata Mutual Fund

Management.

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One could infer from the above that, the priority is given to the

liquidity by 94 respondents (31.3 %) of the total. They prefer to have the

liquid funds always with them.

Graph 4.8

Priority for Investment

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Importance for Investments

The importance for the investments of the respondents are drawn

with reference to Tata Mutual Funds and presented here for the

reference. When the people invest there will be an importance of social

events such that, they may help the investors in any of the way.

Table 4.9



(n=300)Percentage

Safety 82 27.3

Tax benefits 69 23.0

Low cost 94 31.3

Professional management

55 18.3


Inference

Out of the total 300 respondents, 82 respondents (27.3%) have

signified the safety as a phenomena for their investments; 69

respondents (23%) have given significance to the tax benefits, that they

could avail with their financial activity; 94 respondents (31.3%) have

given importance to the low cost; high benefit from the investments; and

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the rest of 55 respondents (18.3%) of the total have given significance to

the professional management of their investments.

It is inferred from the above table that the most of 94 respondents

(31.3%) of the total have given importance to the low cost; high benefit

for their investments. The next is safety preferred by 82 respondents

(27.3%) of the total.

Graph 4.9


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Preferable investments

The people prefer the investments according to their needs and

income. Also they want to mobilize their funds to the maximum in a

short span. Hence, they prefer to invest in several short term financial

activities of Tata Mutual Funds. In this view, the preference of the

respondents towards their investment is presented in the table below.

Table 4.10


ParticularsNo. of

respondents(n=300)

Percentage

An investment offering high growth rate ofreturn but not a steady revenue

139 46.3

An investment offering lower return funds but steady revenue

161 53.7


Inference

Among the total 300 respondents, 139 respondents (46.3 %) of

Tata Mutual Funds have preferred an investment offering high growth

rate of return but not long term; and the rest of 161 respondents (53.7 %)

have preferred an investment offering lower return funds but steady

revenue for the investments.

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It is concluded that the maximum of 161 respondents of the total

(53.7 %) have preferred an investment offering lower return funds; the

steady revenue providing funds, etc., due to the consistency and

continuity of their requirements.

Graph 4.10


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Feel about the risk of investments

The people always think that the investments are very risky in the

capital market and money market. This is due to the volatility of the

market conditions. In this view, the clients and respondents of Tata

Mutual Funds are consulted to draw their opinion on the risk existing.

Table 4.11

Feel About the risk of Investments in Mutual Funds


Yes 120 40.0

No 100 33.3

Partly 80 26.7


Inference

Among the total 300 respondents, 120 respondents (40.0 %) have

said that the investments in mutual funds are risky; 100 respondents

(33.3 %) have said that the investments in mutual funds are not risky;

and the rest of 80 respondents (26.7 %) have felt that the investments in

mutual funds are partly risky with Tata Mutual Funds.

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It is inferred and concluded that the investments in Tata Mutual

Funds are risky. It is felt by 120 respondents (40 %) of the total and very

less felt that it was partly risky.

Graph 4.11

Feel About the risk of Investments in Mutual Funds

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Flexibility and convenience for investment in Mutual Funds

The investors would like to invest their funds in mutual funds

which offer flexibility and convenience. This is because of the terms and

conditions that the fund managers offered. Particularly the Tata Mutual

Funds offer the flexibility and convenience for the investors. Hence the

opinion of the investors are drawn and presented in the table.

Table 4.12



Yes 118 39.3

No 101 33.7

Partly 81 27.0


Inference


accepted that the mutual funds offer flexibility and convenience for

investments; 101 respondents (33.7 %) have said that the funds do not

offer the flexibility and convenience and the rest of 81 respondents (27

%) have partly accepted that the funds are offering the flexibility and

convenience.

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It is inferred that the majority of respondents of 118 (39.3 %)

from the total have accepted that the funds offer the flexibility and

convenience for investments, particularly the Tata Mutual Funds.

Graph 4.12


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Benefit associated with Mutual Funds

The investors seek the benefits from the mutual funds. They

would determine the benefits that are closely associated with mutual

fund investments. In this regard the opinions of the sample respondents

are extracted and presented in the table below.

Table 4.13



(n=300)Percentage

Portfolio diversification 121 40.3

Professional management 99 33.0

Risk reduction 80 26.7


Inference

Among the total 300 sample respondents of tata Mutual funds,

121 respondents (40.3%) have chosen the mutual funds for portfolio

diversification; 99 respondents (33.0%) have said that the professional

management of the fund managers are closely associated with Tata

Mutual Funds and the rest of 80 respondents (26.7%) have said that the

risk reduction as the benefits associated with the mutual fund

investments.

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It is inferred that the majority of 121 respondents of (40.3%) the

total have said that the diversification of portfolio is the benefit

associated with the mutual funds as an investment particularly in Tata

Mutual Funds.

Graph 4.13


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Awareness on Plans

The individual investors would like to know the specific plans of

investments of mutual funds. They would be aware of the plans and how

to execute it in minimum time. In that way, the opinions of the investors

are drawn and presented in the table.

Table 4.14

Awareness on Plans


(n=300)Percentage

Tax plan 90 30.0

Pension plan 60 20.0

Retirement plan 70 23.3

Children saving plan 80 26.7


Inference

Out of the total respondents of 300 Tata Mutual Fund companies,

90 respondents (30.0 %) prefer the tax plans; 60 respondents (20.0 %)

prefer the pension plans; 70 respondents (23.3 %) prefer the retirement

plan and 80 respondents (26.7 %) prefer children savings plan. The

respondents are aware of the above plans according to their need and

comfort.

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It is finally inferred and concluded that the majority of 90

respondents (30.0 %) of the total are aware of the tax plan, that render

the benefit to the people at the time of return submission with IT

department. The next preference of the respondents is children’s savings

plans (26.7 %).

Graph 4.14

Awareness on Plans

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Annual Savings

The savings is the fundamental financial strength of every

individual. How it is saved is the other part. It is also important in

making the money saved at elsewhere, for that the annual amount of

savings is signified. In that way, the respondents are asked a question

regarding their annual savings and presented below.

Table 4.15

Annual savings


(n=300)Percentage

Below Rs.10000 118 39.3

Rs.10000 to 20000 91 30.3

Rs.20000 to 30000 75 25.0

Above Rs.30000 16 5.3


Inference

Among the total 300 respondents, 118 respondents (39.3%) save

annually upto Rs.10000 in investment avenues; 91 respondents (30.3%)

save Rs.10000 to Rs.20000 annually; that too to suit their income; 75

respondents (25.0%) save Rs.20000 to Rs.30000 annually for their

future and 16 respondents (5.3%) save Rs.30000 and above annually.

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It is concluded that the majority of 118 respondents of the total

(39.3%) save Rs.10000 and below annually, that shows the poor interest

of the respondents in savings for the future. The next limit of saving

amount is Rs.10000 to Rs.20000 by 91 respondents (30.3%)

Graph 4.15

Annual savings

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Knowledge on Financial Liberalisation

Financial liberalization is concerned with making funds employed

in the organization attractively for all the activities. This would help the

corporate and others for promotion of business. This may be done with

issuance of slips, stocks, funds, etc. and may be collected from the

general public at the minimum cost. This is a policy, on which the

opinions are drawn from the respondents regarding their knowledge and

presented below.

Table 4.16



High 125 41.7

Moderate 98 32.7

Low 77 25.7


Inference

Out of 300 respondents, 125 respondents (41.7%) had high

knowledge about financial liberalization; 98 respondents (32.7%)

possessed a moderate knowledge and the rest of 77 respondents (25.7%)

had acquired a low level knowledge on the financial liberalization.

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Hence, it is concluded that the majority of 125 respondents

(41.7%) of the total, had a high level knowledge on financial

liberalization, so that it would help them to choose the investment

avenues. The second stage is moderate knowledge, possessed by 98

(32.7 %) of the total respondents.

Graph 4.16


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Investment as a percentage of income

The income earning capacity of every individual is a direct

component to decide about their savings. The savings of the individuals

are rated on their total earnings of income. In this way, the rate of

income towards the investments of Tata Mutual Fund investors are

drawn and presented for analysis as below.

Table 4.17

Investment as a percentage of Income


5 to 10% 89 29.7

11 to 15% 59 19.7

16 to 20% 71 23.7

Above 20% 81 27.0


Inference

Out of the total 300 respondents, 89 respondents (29.7%) said that

they invest 5% to 10% of their income, 59 respondents (19.7%) have

said that they invest 11 to 15% of their income, 71 respondents

(23.7%)have said that they invest 16 to 20% of their income; and the

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rest of 81 respondents (27 %) have said that they invest 20% and above

of their income.

Hence, it is concluded that the majority of 89 respondents (29.7

%) of the total have said that they invest 5 to 10% of their income,

followed by those who invest above 20% of income represented 81

respondents (27%) of the total.

Graph 4.17

Investment as a percentage of Income

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Reasons for Investments

The investors and the general public would prefer investment

avenues according to their interest and needs. This may be the reason for

their investments and that would be the basis for investment avenues

too. Hence, the researcher has collected the views of the respondents

regarding the reasons for their investments and presented below.

Table 4.18

Reasons for investments


(n=300)Percentage

Capital gains 90 30.0

Safety of investment 84 28.0

Tax benefits 30 10.0

Generate Regular Income 24 8.0

Capital Appreciation & Bonus

36 12.0

Others 36 12.0


Inference

Out of the total 300 Tata Mutual Fund investors, 90 respondents

(30%) have said the capital gains as the reason for investing; 84

respondents (28%) gave the safety of investments as the reason; 30

respondents (10%) said tax benefits was the reason; 24 respondents

(8%) said they invested in order to generate regular income; 36

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respondents (12%) said the reason was capital appreciation and bonus

and the rest of 36 respondents (12%) said others as reason for their

investment.

Hence, it is inferred that most of 90 respondents (30%) have

given the capital gains as reasons for their investment among the total

and the safety of investment as a reason follows, expressed by 84

respondents (28%) of the total.

Graph 4.18

Reasons for investments

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Risk Tolerance Level

The risk is the determination and broad view of the investors to

go forward with their investments by crossing many hurdles, such as

association of risk is normally found with all investment avenues. That

may either be taken or not by the investors according to their individual

self. Hence, the opinion of the respondents are drawn and presented

regarding their risk tolerance level.

Table 4.19



High Risk 90 30.0

Moderate Risk 59 19.7

Low risk 69 23.0

No Risk 82 27.3


Inference

Out of the total 300 respondents, 90 respondents (30%) level of

the risk tolerance is high risk tolerance level; moderate risk tolerance

level is with 59 respondents (19.7%), 69 respondents (23%) would take

only low risk tolerance level; and the rest of 82 respondents (27.3%) of

the total came into the no risk level of tolerence.

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(30%) of the total would prefer to take and cross the high risk tolerance

level due to their interest in investments followed by 82 respondents

(27.3%) of the total who would not take any risk, i.e., no risk tolerance

level.

Graph 4.19


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Rate of risk taken as a percentage of investment

The risk taken by the respondents are different. The risk level is

also different. The respondents of Tata Mutual Fund companies say what

rate of risk they could take for their investments in different avenues.

Their opinions are presented in the table below.

Table 4.20

Rate of Risk taken as a percentage of Investment


5 to 10% 90 30.0

11 to 15% 58 19.3

16 to 20% 67 22.3

Above 20% 85 28.3


Inference

Out of the total 300 respondents, 90 respondents (30%) rate of

risk level is 5 to 10% of investments; 58 respondents (19.3%) rate of

risk level is 11 to 15% of the investments; 67 respondents risk level is

(22.3%) 16 to 20% of the investments; and the rest of 85 respondents

(28.3%) risk level is above 20% of the investments.

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Such that it is inferred from the above and concluded that the

majority of 90 respondents (30%) have been rated with their risk level

as 5 to 10% of their investments; succeeded by 85 respondents (28.3%)

who rated as above 20% risk rate of their investments.

Graph 4.20

Rate of Risk taken as a percentage of Investment

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Expected rate of return

The individual investors have an interest to earn something more

from what they invest. They also expect the rate of returns according to

the amount of their investments and types. Hence, the following tabular

column is decided to arrive a result from the opinion of the total 300

respondents of Tata Mutual Funds and tabulated as below.

Table 4.21



5 to 10% 95 31.7

11 to 15% 59 19.7

16 to 20% 67 22.3

Above 20% 79 26.3


Inference

Out of the total 300 respondents, 95 respondents (31.7%) expect 5

to 10% of returns from their investment; 59 respondents (19.7%) expect

11 to 15% of returns from their investments; 67 respondents (22.3%)

expect 16 to 20% of returns from their investments and 79 respondents

(26.3%) expect 20% and above returns from their investments.

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It is inferred and concluded that the majority of 95 respondents

(31.7%) of the total expect 5 to 10 % return for their investment

followed by 79 respondents (26.3%) who would expect above 20%

return from their investments as rate of expected return.

Graph 4.21


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Shift from conventional alternative to new alternative investments

Everybody wants to shift from the conventional investment

alternative to new investment alternatives. This would happen in the

case of the investments of Tata Mutual Fund investors too, because

nobody would like to remain with the existing. They may get shifted

from banks to shares; post office to mutual funds, savings and recurring

deposits to equity and commodity market, loan funds to lien funds etc.

In this regard the opinion of the Tata Mutual Fund investors are drawn

and presented for analysis. This is only the opinion of the individual

investors on the basis of their investment experiences.

Table 4.22



Yes 132 44.0

No 168 56.0


Inference

Out of the total 300 respondents, 132 respondents (44 %) have

said that they had shifted from their conventional investment alternative

to the new investment alternative for their benefits. But the rest of 168

respondents (56 %) have not yet shifted due to their non awareness.

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It is inferred from the above that the majority of 168 respondents

(56%) have not yet shifted from their conventional investment

alternatives to the new investment alternatives due to their non

awareness or lack of interest to mobilize the funds.

Graph 4.22


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Awareness level on the Government’s protection Mechanism

The government is responsible for making and influencing the

protection mechanisms particularly towards the investments of the

public with mutual funds. This would enable the people further to

become an investors for mutual fund companies. The protection

mechanisms are security return, control of volatility, deflation etc.

carried on by the governments through SEBI, RBI and other agencies. In

this view, the opinions are drawn from the respondents of Tata Mutual

Funds.

Table 4.23

Awareness level on the Government’s protection mechanisms

Particulars No .of respondents (n=300) Percentage

High 143 47.7

Moderate 88 29.3

Low 69 23.0


Inference


stated that they had a high level awareness on government’s protection

mechanisms; 88 respondents (29.3 %) have stated that they had a

moderate level of awareness and the rest of 69 respondents (23 %) have

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stated that they had a very low level of awareness level towards the

protection mechanisms of the government.

Hence, it is concluded that the majority of 143 respondents (47.7

%) of the total have stated that they had a high awareness level on the

protection mechanism of government followed by the moderate level

awareness stated by 88 respondents of the (29.3 %) total.

Graph 4.23

Awareness level on the Government’s protection mechanisms

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Sources of Income

The income source is the fundamental factor that helps the people

to decide the investment avenues. People may have an interest but

cannot make investment due to poor income and vice versa. Both

interest for investment and income are influential in some people’s life

that too decide their avenues for investments. In this way, the Tata

Mutual Fund respondents are approached and also their views are

presented below:

Table 4.24

Sources of Income


Salaries 80 26.7

Business 118 39.3

Others 102 34.0


Inference

Out of the total 300 respondents, 80 respondents (26.7 %) said

that the salaries are the source of income for their investments; 118

respondents (39.3 %) said that their business is the source for providing

them income for their investments; and 102 respondents (34.0 %) of the

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total have made otherwise their income as source from other modes for

their investments.

It is inferred that the majority of 118 respondents of the total (39.3

%) have the business income as source for investments followed by

other income source of 102 respondents (34 %) of the total.

Graph 4.24

Sources of Income

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Details of assets owned as status symbol

The people want to have some with status among others in the

society. The status symbols are owning a car, two wheeler, flat or home

and others, like investments with capital markets or money markets.

These, like the ownership of the respondents are inquired to know their

societal status, so that it would enable to determine their investment

ability. That has been done particularly with Tata Mutual Fund investors.

Table 4.25

Details of assets owned


Car 86 28.7

Two wheelers 64 21.3

Home 71 23.7

Others 79 26.3


Inference

Out of the total 300 respondents, 86 respondents (28.7%) owned a

car as a status symbol; 64 respondents (21.3%) have possessed a two

wheeler as status symbol; 71 respondents had their own home or flat for

living (23.7%) as status symbol and the rest of 79 respondents (26.3%)

held other assets and funds for being with status in society.

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It is concluded that the majority of 86 respondents (28.7%) of the

total are holding a ownership of car as status symbol; that is followed by

79 respondents (26.3%) the total, who are the owners for other assets

and funds.

Graph 4.25

Details of assets owned

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Factors influencing the investment decisions

There are many factors that influence the investment decisions of

the individual investors or general public. They could be persuaded by

the different internal as well as external factors, between these the

external factors were particularly more influential in relation to the

investments. Factors that affected the opinions of the investors of Tata

Mutual Fund companies are presented below.

Table 4.26

Factors influencing the investment decision


(n=300)Percentage

Economic Factors 97 32.3

Company image 84 28.0

Performance of the fund

36 12.0

Fund manager image 25 8.3

Tax incentive 29 9.7

Others 29 9.7Source: Primary Data

Inference

Out of the total 300 respondents, 97 respondents (32.3 %) were

influenced by the economic factors for investments; 84 respondents

(28.0%) were influenced by the image of the company; 36 respondents

(12.0%) were attracted by the performance of the fund; 25 respondents

(8.3%) were influenced by the image of the fund managers; 29

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respondents (9.7%) were influenced by the tax incentives; and the rest

of 29 respondents (9.7 %) are motivated by other means for investments.


(32.3 %) of the total are influenced by the economic factors; that is

followed by the image of the company influence 84 respondents (28 %)

of the total.

Graph 4.26

Factors influencing the investment decision

54

Opinion on Growth of Mutual Funds

The individual’s opinion is important to determine their

perception of the investments. The investors opinions, particularly from

the respondents chosen for study are approached for their opinion

towards the growth of mutual funds. The investors in Tata Mutual Fund

are the respondents who have expressed their interest towards the

growth of mutual funds.

Table 4.27

Opinion on growth of Mutual Funds


(n=300)Percentage

Very important 91 30.3

Somewhat important 63 21.0

Neutral 63 21.0

Somewhat unimportant 45 15.0

Not at all important 38 12.7


Inference

Out of the total 300 respondents, 91 respondents (30.3%) have

opined that the growth is very important; 63 respondents (21%) have

opined that the growth is somewhat important, another 63 respondents

(21%) have opined neither important nor unimportant, 45 respondents

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(15%) have opined that somewhat unimportant and 38 respondents

(12.7%) have opined that it is not at all important.

It is inferred that the maximum of 91 respondents of (30.3%) the

total have opined that the growth is very important, followed by 63

respondents of each in (21%) favour of somewhat is important and

neutral in relation to the growth of mutual funds.

Graph 4.27

Opinion on growth of Mutual Funds

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Plan Preference

The investment chosen is followed by the types, varieties,

schemes and plans for the investments. The question is asked in such a

way, to the respondents chosen from Tata Mutual Funds to draw their

opinion of the plan that they would prefer in mutual funds. Their

opinions are presented below.

Table 4.28

Plan Preference


(n=300)Percentage

SIP 79 26.3

SWP 119 39.7

STP 102 34.0


Inference

Among the total 300 respondents, 79 respondents (26.3%) prefer

the systematic investment plans (SIP), 119 respondents (39.7%) prefer

the systematic withdrawal plans (SWP) and 102 respondents (34%)

prefer the systematic transfer plans (STP) for their investments.

It is inferred and concluded that the majority of the total 300

respondents, i.e., 119 respondents (39.7%) prefer to invest in the (SWP)

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systematic withdrawal plans that provide much benefit as prevailing in

market without loss of investment.

Graph 4.28

Plan Preference

58

Scheme of options preferred

Several options exist that can be opted for in mutual funds. The

different asset management companies offer different schemes of

options in series every time. The investors would be able to select

according to their convenience, any scheme of option that would

provide them benefits. In this regard, the opinions of the Tata Mutual

Fund investors are drawn and presented in the table below.

Table 4.29

Scheme of Options preferred


(n=300)Percentage

Growth option 75 25.0

Dividend option 113 37.7

Others 112 37.3


Inference

Out of the total 300 respondents, 75 respondents (25.0%) prefer

the growth option, 113 respondents (37.7%) prefer the dividend options;

and the rest of 112 respondents (37.3%) prefer either the other options or

a combination of features of the above said options in a frequent interval

as per the agreement.

59

Hence, it is concluded that the majority of 113 respondents

(37.7%) prefer the growth option; followed by 112 respondents (37.3%)

of the total with any other options as preference of schemes.

Graph 4.29

Scheme of Options preferred

60

Preference of class of funds

Every investor in the Mutual Fund market has a particular

preference in class of funds after they had chosen the avenue, plan and

schemes of funds. In this regard, the opinion is drawn and presented for

analysis from the chosen respondents of Tata Mutual Fund companies.

This would probably reveal the perception of the investors on the whole.

Table 4.30

Preference of Class of funds


Closed ended 90 30.0

Open ended 86 28.7

Load fund 34 11.3

Active fund 26 8.7

Passive fund 32 10.7

No load fund 32 10.7


Inference

Out of the total 300 respondents, 90 respondents (30%) prefer the

closed ended type of funds; 86 respondents (28.7 %) prefer to invest in

open ended type of funds; 34 respondents (11.3%) would prefer the

class of load funds; 26 respondents (8.7%) would prefer the class of

active funds; 32 respondents (10.7%) would prefer to invest in passive

61

funds; and the rest of another 32 respondents (10.7%) prefer to invest in

no load funds.

Hence, it is concluded that the most of 90 respondents (30%) of

the total prefer to invest in the closed ended funds; followed by the open

ended funds which is preferred by a significant percentage (28%) of

respondents numbering 86.

Graph 4.30

Preference of Class of funds

Type of Mutual Funds

62

The investors will make their investments in mutual funds

according to their interest and capacity. Though they would like to

choose the type of funds that fetch the maximum revenue to them. In

this regard, the chosen respondents of the Tata Mutual Fund companies

were questioned about their fund type and choice. Their views are

presented below.

Table 4.31



(n=300)Percentage

Growth schemes 68 22.7

Balanced Schemes 48 16.0

Sector Schemes 31 10.3

Income Schemes 22 7.3

Money Market Schemes 19 6.3

Industry Specific 28 9.3

ELSS 34 11.3

Index Schemes 39 13.0

Others 11 3.7Source: Primary Data

Inference

Out of the total 300 respondents, 68 respondents (22.7%) invested

in growth schemes; 48 respondents (16%) invested in Balance schemes;

31 respondents (10.3%) invested in sector schemes; 22 respondents

(7.3%) invested in income schemes; 19 respondents (6.3%) invested in

63

money market schemes; 28 respondents (9.3%) invested in Industry

specific schemes; 34 respondents (11.3%) invested in ELS schemes; 39

respondents (13%) invested in Index schemes; and the rest of 11

respondents (3.7%) invested in other specified schemes or types of

funds.

It is concluded that the first choice is growth schemes by 68

(22.7%) respondents, the second choice of the type of the respondents is

balanced schemes by 48 (16.0%) of the total.

Graph 4.31


64

Knowledge of the Mutual Fund

Every individual investor has a sufficient knowledge of

investment. They have had adequate information on the amount of

investments, the return from the investments, the rate of interest or

incentive, etc. But it is a surprise that all the investors do not have

sufficient interest and knowledge of mutual funds. Hence, the chosen

300 respondents of the Tata Mutual Fund companies are asked to say

about their knowledge on Mutual funds.

Table 4.32

Knowledge of Mutual Fund


Very good 93 31.0

Good 58 19.3

Average 63 21.0

Poor 46 15.3

Very poor 40 13.3


Inference

Out of the total 300 respondents, 93 respondents (31%) say that

they have a very good knowledge, 58 respondents (19.3%) have a good

knowledge of mutual funds; 63 respondents (21%) say that they have an

65

average knowledge; 46 respondents (15.3%) have a poor knowledge and

the rest of 40 respondents (13.3%) have a very poor knowledge of

mutual funds.

It is inferred and concluded that the majority of 93 respondents of

(31%) the total have a very good knowledge of mutual funds followed

by 63 respondents (21%) who had an average knowledge of mutual

funds.

Graph 4.32

Knowledge of Mutual Fund

66

Confidence in Mutual Funds

The level of confidence that the people would keep on an object is

significant for success. In a same way, the level of confidence that

investors have on the mutual funds is important for the success of such

funds. Hence it is taken into consideration and observation of the level

of confidence in mutual funds of Tata Mutual Fund investors was

selected as a factor for the study.

Table 4.33



High 78 26.0

Moderate 115 38.3

Low 107 35.7


Inference

Among the total 300 respondents, 78 respondents (26%) have said

that they have high confidence in mutual funds, 115 respondents

(38.3%) have said that they have moderate level of confidence in mutual

funds; and the rest of 107 respondents (35.7%) of the total have said that

they have a low level of confidence in mutual funds.

67

It is inferred that the moderate level confidence is with 115

respondents (38.3%) of the total followed by 107 respondents (35.7%)

whose level of confidence in mutual funds is low.

Graph 4.33


68

Confidence in Stock Exchange

Every individual investor would have confidence in the company,

which issues the funds and shares such confidence will be kept on the

stock exchange too, for the purpose of growth in their investments.

Hence, with a view to determine the opinion of the investors, the

researcher has approached the selected respondents of Tata Mutual

Funds and presented their views.

Table 4.34



High 79 26.3

Moderate 113 37.7

Low 108 36.0


Inference

Among the total 300 respondents, 79 respondents (26.3%) have a

high level confidence in stock exchange; 113 respondents (37.7%) have

a moderate level confidence in stock exchange; and 108 respondents

(36%) have a low level confidence in stock exchange. This shows their

level of interest and inspiration in the stock exchange.

69

It is inferred and concluded that most of 113 respondents (37.7%)

have a moderate level of confidence in stock exchanges. This is due to

the little increased knowledge of the respondents in stock exchange that

provides a rating and listing of funds.

Graph 4.34


70

Confidence in Bench Marking

Every individual investor does not know the concept of Bench

Marking except for a few who have sufficient knowledge and hands on

experience with the stocks and funds market. Such people would come

to know the Benchmarking index continuously. The selected

respondents of Tata Mutual Funds are questioned to ascertain their level

of confidence.

Table 4.35



High 73 24.3

Moderate 112 37.3

Low 115 38.3


Inference

Out of the total 300 respondents, 73 respondents (24.3%) have a

high level confidence in Bench Marking; 112 respondents (37.3%) have

a moderate level of confidence in Bench Marking; and the rest of 115

respondents (38.3%) have a low level of confidence in bench Marching.

This is due to their awareness and perception towards the investments.

71


(38.3%) of the total have a low level of confidence in Bench Marking

Indices. The next stage is occupied by 112 respondents (37.3%) who had

a moderate level of confidence.

Graph 4.35


72

Confidence in Future Benefits

The investors are always interested in making higher return from

their investments. Either it is share or mutual fund, the return on

earnings is required by every investors. If it is a share, a dividend is

expected; a fund, a growth is expected as dividend and so on. In this

regard the investors confidence level is assessed in connection with the

future benefits from mutual funds and presented below.

Table 4.36

Confidence in future benefits


High 143 47.7

Moderate 88 29.3

Low 69 23.0


Inference

Out of the total 300 respondents, 143 respondents (47.7%) of Tata

Mutual Funds had a high level confidence in future benefits; 88

respondents (29.3%) had a moderate level of confidence in future

benefits; and the rest of 69 respondents (23%) have a low level

confidence in future benefits from mutual funds.

73


(47.7%) of the total have a high level confidence in future benefits from

mutual funds that they could have achieved.

Graph 4.36

Confidence in future benefits

74

Preference of investment time period

Every investor wants to make their funds invested in short span

revenues and avenues. The time horizon is a boundary level for every

investor to make them convenient to invest in either shares or mutual

funds. In this view, the opinions of the selected respondents of the Tata

Mutual Funds are drawn and presented below regarding the preference

of investment time period.

Table 4.37



Below 1 years 105 35.0

1 to 3 years 63 21.0

3 to 5 years 55 18.3

Above 5 years 77 25.7


Inference

Out of the total 300 respondents, 105 respondents (35.0%) prefer

to invest for below 1 year; 63 respondents (21%) prefer to invest for 1 to

3 years; 55 respondents (18.3%) prefer to invest for 3 to 5 years and the

rest, i.e. 77 respondents (25.7%) prefer to invest for above 5 years. This

75

time preference for mutual fund investments of the selected respondents

shows their interest to earn in a short span of time.


(35%) prefer to invest for below 1 year to earn more. The second is 77

respondents (25.7%) who prefer above 5 years as period of investment.

Graph 4.37


76

Investment Plans

The investors would like to invest in the different kinds of plans

of funds for their fund mobilization. They would like to invest either in

short term or long term funds to earn. In this way, the selected Tata

Mutual Fund investors and respondents were approached to express

their opinion on their investment plans and presented below.

Table 4.38

Investment Plans


(n=300)Percentage

Short term funds 89 29.7

Liquid funds 63 21.0

Income funds 70 23.3

Monthly income plans 78 26.0


Inference

Out of the total 300 respondents, 89 respondents (29.7%) invested

in short term funds; 63 respondents (21.0%) invested in liquid funds; 70

respondents (23.3%) invested in Income funds; and the rest of 78

respondents (26.0%) invested in monthly income plans.

77

It is inferred that the majority of 89 respondents of the total

(29.7%) invested in short term funds and followed by 78 respondents

(26.0%) invested in monthly income plans for the benefits.

Graph 4.38

Investment Plans

78

Sources of Information for financial products

The information source for the investments and financial products

are essential for further execution. The investors would like to invest in

the funds that provide much sources for benefits. In this regard, the

selected respondents of the Tata Mutual Funds were approached to

extract their opinion on the sources of information for financial products

and presented below.

Table 4.39

Sources of information for financial products


News papers 93 31.0

Friends 93 31.0

Advisors 34 11.3

Magazines 24 8.0

Television 28 9.3

Others 28 9.3


Inference

Among the 300 total respondents, 93 respondents (31%) got the

information from newspapers; 93 respondents (31%) got the information

from friends; 34 respondents (11.3%) got the information from the

advisors; 24 respondents (8%) got the information from the magazines;

79

28 respondents (9.3%) got the information from the television; and the

rest of 28 respondents (9.3%) got the information from the other

sources.

It is inferred that 93 respondents (31%) got the information for

financial products from the newspapers followed by 93 respondents

(31%) from friends and others.

Graph 4.39

Sources of information for financial products

80

Tax benefits offered by Mutual Funds

The tax benefits were expected by all the investors. For the

purpose of tax return filing and tax evasion the investors would like to

invest in tax plans and tax savings schemes. In this view, the selected

respondents of Tata Mutual Funds were inquired to express their opinion

towards the tax benefits as offered by the mutual funds and presented

below.

Table 4.40



Yes 144 48.0

No 93 31.0

Partly 63 21.0


Inference

Out of the total 300 respondents, 144 respondents (48.0%) knew

that the mutual funds were offering tax benefits; 93 respondents (31.0%)

knew that there was no tax benefits offered by the mutual funds; and the

rest of 63 respondents (21.0%) knew partly the benefits of tax in mutual

funds.

81

It is inferred that the most of 144 respondents (48.0%) knew the

tax benefits offered by the mutual fund companies followed by 93

respondents (31.0%) who did not know the tax benefits.

Graph 4.40


82

Opinion on Tata Mutual Funds

The people invest in funds only by scrutinizing the benefits

offered by the mutual fund managers. In this regard the opinions are

drawn from the selected Tata Mutual Fund respondents and presented

for analysis.

Table 4.41


Veryimportant

Some whatimportant

Not at all important

Timely service 80(26.7%) 115(38.3%) 105(35%)

Speedy transactions 75(25%) 120(40%) 105(35%)

Good communication 58(19.3%) 127(42.3%) 115(38.3%)

Home delivery 74(24.7%) 103(34.3%) 123(41%)

Cost-effective 67(22.3%) 140(46.7%) 93(31%)


Inference

Out of the total 300 respondents, 80 respondents (26.7%) said the

timely service is very important; 115 respondents (38.3%) said the

timely service is somewhat important; and 105 respondents (35%) said

the timely service is not at all important.

Among the 300 respondents, 75 respondents (25%) said the

speedy transactions are very important; 120 respondents (40%) said

83

somewhat important and the rest of 105 (35%) respondents said it is not

at all important.

Good communication is very important as said by 58 respondents

(19.3%) of the total, followed by 127 respondents (42.3%), who said

somewhat important. But the rest of 115 respondents (38.3%) said it is

not at all important.

The home delivery of the services is very important as opined by

74 respondents (24.7%), somewhat important by 103 respondents

(34.3%) and the rest of 93 respondents (31%) said it is not at all

important.

Out of the total 300 respondents, 67 respondents (22.3%) opined

that the cost effectiveness of funds is very important; 140 respondents

(46.7%) said somewhat important; and the rest of 93 respondents (31%)

said it is not at all important.

Hence it is concluded with the maximum favourable opinions

among the total respondents of 300. The majority of 115 respondents

(38.3%) opined as somewhat important regarding the timely service;

120 respondents (40%) said that the speedy transactions are somewhat

important; 127 respondents (42.3%) have said that good communication

is somewhat important; 123 respondents (41%) opined that the home

delivery of services is not at all important and 140 respondents (46.7%)

84

opined that the cost effectiveness of funds are somewhat important.

With these above, it is also inferred that the respondents are in favour of

Tata Mutual Funds because of the better services provided to them.

Graph 4.41


85

Reasons for switching between the mutual funds

The investors are often switching from one mutual fund company

to another due to several reasons. This may be happening due to poor

services, more charges, easy access and risk avoidance etc, with this

view, the Tata Mutual Fund investors was selected and inquired for their

opinion.

Table 4.42


ParticularsNo.of respondents

(n=300)Percentage

High service charges 92 30.7

Slow operations 61 20.3

Inaccessibility to the service Center

61 20.3

Bad correspondence 47 15.7

Advice from consultant 39 13.0


Inference

Out of the total 300 respondents, 92 respondents (30.7 %) opined

that the high service charges of the fund managers influenced them for

switching; 61 respondents (20.3%) opined that the slow operations of

the fund managers; 61 respondents (20.3%) opined that the

inaccessibility to the service center is the reason for switching; 47

86

respondents (15.7 %) opined that the bad correspondence is the reason;

and the rest of 39 respondents (13%) said that the advice from

consultation influence them for switching.

It is then concluded that the maximum of 92 respondents (30.7 %)

of the total have opined that the high service charges of asset

management companies is the reason for switching from one fund to

another.

Graph 4.42


87

Reasons for Investing in particular fund

The people invest in a particular fund due to several reasons. The

fund may give either much benefit or less risk. The investors would like

to earn more in a short span of time without much risk. In this regard,

the selected Tata Mutual Fund respondents were asked for their opinion.

They gave different opinions that are presented below.

Table 4.43

Reasons for investing in particular fund

ParticularsNo.of respondents

(n=300)Percentage

Faith in the company 83 27.7

Past performance has been good 68 22.7

Your friends have invested. 68 22.7

Your financial consultant advice 44 14.7

Cost of investment 37 12.3


Inference

Out of the total 300 respondents, 83 respondents (27.7%) opined

that it was the faith in the company, 86 respondents (22.7%) said that the

past performance has been good in the company; 68 respondents

(22.7%) opined that the friends invested so that they use to choose the

particular fund; 44 respondents (14.7%) opined that the advice of the

88

financial consultant; and the rest of 37 respondents (12.3%) said that it

was the cost of investments.

It is inferred that the majority of 83 respondents (27.7 %) opined

faith in the company, they have chosen the particular fund; followed by

the past performances and the investment of their friends have

influenced them towards a particular fund.

Graph 4.43

Reasons for investing in particular fund

89

Ranking of Asset Management Companies by the Respondents

Every company must be ranked by the investors and clients. It is

an important tool to assess the performance of every company with the

help of the opinion of the investors. In this regard, the clients of Tata

Mutual Funds have assessed with ranks of the following companies that

are presented below.

Table 4.44


ParticularsNo. of

respondents(n=300)Percentage

Reliance 72 24.0

ICICI Prudential 46 15.3

Sundaram 46 15.3

HDFC 41 13.7

Frankiln 36 12.0

DSP 31 10.3

Tata 28 9.3

Source: Primary data

Inference

Out of the total 300 respondents, 72 respondents (24 %) ranked

Reliance first, 46 respondents (15.3 %) ranked ICICI Prudential second;

46 respondents (15.3 %) ranked Sundaram third; 41 respondents (13.7

%) given fourth rank to HDFC; 36 respondents (12 %) ranked Franklin

90

fifth; 31 respondents (10.3%) ranked sixth, the DSP Meril Lynch and 28

respondents (9.3 %) ranked seventh the Tata Mutual Funds.

From the above, it is inferred that the majority of 72 respondents

(24%) have chosen first the Reliance and the Tata Mutual Fund was at

seventh stage chosen by 28 respondents (9.3%). Hence the Tata Assets

Management Companies must concentrate on the investors to provide

much facilitative earning strategies to the investors to retain them.

Graph 4.44


91

Opinion of the respondents regarding the benefits provided by

different Asset Management Companies (AMCs)

Every Asset Management Company must provide facilities and

benefits to individual investors. The cliental approach and service to the

best among others are equally important. In this regard, the selected

respondents of Tata Mutual Fund companies were inquired; the opinions

of them are drawn and presented below.

Table 4.45

Opinion of the respondents regarding the benefits provided by

different AMCs

AMCTimelyservice

ReturnsProfessional

fundmanagement

Safetyprincipal

Notinvested

Reliance 108(36%) 66(22%) 50(16.7%) 42(14%) 34(11.3%)

ICICI Prudential

108(36%) 67(22.3%) 49(16.3%) 41(13.7%) 35(11.7%)

Sundaram 110(36.7%) 66(22%) 49(16.3%) 41(13.7%) 34(11.3%)

HDFC 105(35%) 67(22.3%) 51(17%) 43(14.3%) 34(11.3%)

Frankiln 86(28.7%) 81(27%) 56(18.7%) 43(14.3%) 34(11.3%)

DSP 85(28.3%) 73(24.3%) 60(20%) 47(15.7%) 35(11.7%)

Tata 93(31%) 60(20%) 61(20.3%) 49(16.3%) 37(12.3%)


92

Inference

There are many different benefits provided by the several

companies. Such are grouped into timely service, returns, professional

fund management, safety principal etc.

Out of the total 300 respondents regarding the Reliance funds,

108 (36%) respondents opined the timely service; 66 respondents (22%)

said about the returns; 50 respondents (16.7%) opined about their

professional fund management; 42 respondents (14%) opined about the

safety principal and the rest of 34 respondents (11.3%) did not invest

any fund with Reliance.

Among the total 300 respondents regarding the ICICI Prudential

funds, 108 (36%) respondents opined the timely service; 67 respondents

(22.3%) opined about the returns; 49 respondents (16.3%) praised the

professional fund management; 41 respondents (13.7%) said about the

safety principal; and the rest of 35 respondents (11.7%) did not invest in

ICICI.

Out of the total 300 respondents regarding the Sundaram Funds,

110 respondents (36.7%) said about the timely service; 66 respondents

(22%) said about the returns; 49 respondents (16.3%) said about the

professional fund management; 41 respondents (13.7%) said about the

93

safety principal; 34 respondents (11.3%) did not invest any fund with

Sundaram Mutual Fund.

Among the total 300 respondents, 86 respondents (28.7%) opined

the timely service of Franklin, 81 respondents (27%) said about the

returns; 56 respondents (18.7%) opined about the professional fund

management; 43 respondents (14.3%) said about the safety principal and

34 respondents (11.3%) not invested any fund with Franklin.

Among the total 300 respondents, regarding the DSP Meril Lynch

85 respondents (28.3%) said about their timely service; 73 respondents

(24.3%) said about their returns; 60 respondents (20%) are in favour the

professional fund management, 47 respondents (15.7%) opined about

the safety principal and 37 respondents (12.3%) did not invest any fund.

Among the total 300 respondents regarding the Tata Mutual

Funds 93 respondents (31%) said about the timely service; 60

respondents (20%) favoured their returns; 61 respondents (20.3%) said

about their professional fund management; 49 respondents (16.3%) said

about the safety principal and 37 respondents did not (12.3%) invest any

fund with Tata.

94

It is concluded that out of all the respondents, a higher number of

respondents are in favour of timely service of every company and it is

followed by the returns of the company.

Graph 4.45

Opinion of the respondents regarding the benefits provided bydifferent AMCs

95

Opinion on the Performance of the companies

Every investor has their self opinion about the performance of

every financial marketing companies. In this regard the selected

companies are presented before the respondents to draw their opinion

regarding the performances of the companies.

Table 4.46

Opinion on the performance of the companies

Good Average Poor

Reliance 137(45.7%) 85(28.3%) 78(26%)

ICICI Prudential

131(43.7%) 87(29%) 82(27.3%)

Sundaram 134(44.7%) 91(30.3%) 75(25%)

HDFC 136(45.3%) 88(29.3%) 76(25.3%)

Frankiln 106(35.3%) 89(29.7%) 105(35%)

DSP 140(46.7%) 86(28.7%) 74(24.7%)

Tata 143(47.7%) 83(27.7%) 74(24.7%)


Inference

Out of the total 300 respondents 137 (45.7 %) respondents said

good; 85 respondents (28.3 %) said average and 78 respondents (26 %)

said poor about reliance’s performance.

96

Among the total 300 respondents regarding ICICI prudential, 131

respondents (43.7 %) said good; 87 respondents (29 %) said average and

82 respondents (27.3 %) said poor.

Out of the total 300 respondents, 134 respondents (44.7 %) said

good; 91 respondents (30.3 %) said average and 75 respondents (25 %)

said poor.

Among the total 300 respondents 136 respondents (45.3 %) said

good; 88 respondents (29.3 %) said average; and 76 respondents (25.3

%) said poor about the performance of HDFC fund managers.

Out of the total 300 respondents regarding the performance of

Franklin, 106 respondents (35.3 %) said good; 89 respondents (29.7 %)

said average; and 105 respondents (35 %) said poor.

Out of the total 300 respondents regarding the performance of

DSP Meriyl Lynch, 140 respondents (46.7 %) said good; 86 respondents

(28.7%) said average and 74 respondents (24.7 %) said poor.

Among the total 300 respondents regarding the performance of

Tata Mutual Fund, 143 respondents (47.7 %) said good; 83 respondents

(27.7 %) said average and 74 respondents (24.7 %) said poor about the

Tata funds. It is concluded that the maximum of the total respondents

97

said good about the performance of all the companies, followed by the

average opinion about the performance of the companies.

Graph 4.46

Opinion on the performance of the companies

98

STATISTICAL INFERENCES

CHI - SQUARE TEST

Ho: There is no significant association between the age of the

respondents and the importance of financial planning for life goals

H1: There is a significant association between the age of the


Sl.no AgeFinancial planning is important

for life goalsStatisticalinference

Yes (n=139) No (n=161)

1Below 25

yrs23(16.5%) 30(18.6%)

2=.878 Df=4.928>0.05

Not Significant

226 to 35

yrs42(30.2%) 42(26.1%)

336 to 45

yrs49(35.3%) 58(36%)

446 to55yrs

24(17.3%) 29(18%)

5Above55yrs

1(0.7%) 2(1.2%)

Inference

The calculated value of Chi-square is 0.878. The table value for 4

degrees of freedom at 5% significance level is 0.928. Since the

calculated value is less than the table value, the null hypothesis is

accepted. Hence, it is concluded that there is no significant association

between the age of the respondents and the importance of financial

planning for life goals. Thus, the age is not an important for investments

for life goals.

99

CHI - SQUARE TEST

Ho: There is no significant association between the marital status of the


H1: There is a significant association between the marital status of the


Sl.no

Maritalstatus

Financial planning is importantfor life goals

Statisticalinference

Yes (n=139) No (n=161)1 Single 78(56.1%) 90(55.9%) 2=.001 Df=1

.970>0.05Not Significant

2 Married 61(43.9%) 71(44.1%)

Inference



calculated value is less than the table value, the null hypothesis is

accepted. Hence, it is concluded that there is no significant association

between the marital status of the respondents and the importance of

financial planning for life goals. Thus, the marital status does not

determine the investments for life goals.

100

CHI - SQUARE TEST

Ho: There is no significant association between the occupation of the


H1: There is a significant association between the occupation of the


Sl.no

Occupation

Financial planning is importantfor life goals Statistical

inferenceYes (n=139) No (n=161)

1 Service 28(2.1%) 15(9.3%)

2=12.342Df=5

.030<0.05Significant

2 Business 22(15.8%) 47(29.2%)

3 Professional 44(31.7%) 49(30.4%)

4 Retired 29(20.9%) 30(18.6%)

5 House wife 11(7.9%) 15(9.3%)

6 Others 5(3.6%) 5(3.1%)

Inference

The calculated value of Chi-square is 12.342. The table value for

5 degrees of freedom at 5% significance level is 0.30. Since the

calculated value is greater than the table value, the null hypothesis is

rejected. Hence, it is concluded that there is a significant association

between the occupation of the respondents and the importance of

financial planning for life goals. Because the occupation alone makes

every individual to invest their earnings in financial and money markets.

101

CHI - SQUARE TEST

Ho: There is no significant association between the income of the


H1: There is a significant association between the income of the


Sl.no Income

Financial planning is importantfor life goals Statistical

inferenceYes (n=139) No (n=161)

1Below 1.5 lakh

47(33.8%) 42(26.1%)

2=2.204 Df=3.531>0.05

Not Significant

21.5 to 5 lakh

40(28.8%) 53(32.9%)

35 to 10Lakh

45(32.4%) 58(36%)

4Above 10 lakh

7(5%) 8(5%)

Inference



calculated value is greater than the table value, the null hypothesis is

rejected. Hence, it is concluded that there is a significant association

between the income of the respondents and the importance of financial

planning for life goals.

102

CHI - SQUARE TEST


respondents and the importance for investments in mutual funds


respondents and the importance for investments in mutual funds

Sl.no Income

Importance of investingStatisticalinference

Safety(n=82)

Taxbenefits(n=69)

Low cost(n=94)

Professionalmanagement

(n=55)

1Below 1.5 lakh

23(28%) 24(34.8%) 24(25.5%) 18(32.7%)2=6.335

Df=9.706>0.05

NotSignificant

21.5 to 5 lakh

27(32.9%) 20(29%) 31(33%) 15(27.3%)

35 to 10Lakh

28(34.1%) 24(34.8%) 31(33%) 20(36.4%)

4Above 10 lakh

4(4.9%) 1(1.4%) 8(8.5%) 2(3.6%)

Inference

The calculated value of chi square is 0.706 and the table value is

0.05, which is less than the calculated value. Hence, it is decided that

there is no significant association between the Income of the

respondents and the importance for investments in mutual funds.

103

CHI - SQUARE TEST

Ho: There is no significant association between the sources of income

of the respondents and the importance for investments in mutual

funds

H1: There is a significant association between the sources of income

of the respondents and the importance for investments in mutual

funds

Sl.noSource

ofincome

Importance of investingStatisticalinferenceSafety

(n=82)

Taxbenefits(n=69)

Low cost(n=94)

Professionalmanagement

(n=55)

1 Salaries 23(28%) 19(27.5%) 25(26.6%) 13(23.6%) 2=1.024Df=6

.985>0.05Not

Significant

2 Business 29(35.4%) 28(40.6%) 38(4.4%) 23(41.8%)

3 Others 30(36.6%) 22(31.9%) 31(33%) 19(34.5%)

Inference

The calculated value of chi square is 0.985 and the table value is

0.05, which is less than the calculated value. Hence it is concluded that

there is no significant association between the sources of income of the

respondents and the importance for investments in mutual funds.

104

T-TEST

Ho: There is no significant association between the gender and the

risk perception on mutual funds

H1: There is a significant association between the gender and the risk

perception on mutual funds

Do you feel investment in mutualfunds is risky

Mean S.DStatisticalinference

Male (n=225) 1.87 .811 T=.165 Df=298.869>0.05

Not SignificantFemale (n=75) 1.85 .800

Inference

Since the significance value is 0.869, which is more than 0.05 the

gender of the respondents would not say about the risk. Hence, it is

concluded that there is no significant association between the gender

and the risk perception on mutual funds.

105

T-TEST

Ho: There is no significant association between the gender of the

respondents and the risk Tolerance level

H1: There is a significant association between the gender of the

respondents and the risk Tolerance level

Risk tolerance level

Male (n=225) 2.48 1.180 T=-.028 Df=298.978>0.05

Not SignificantFemale (n=75) 2.48 1.201

Inference

Since the significance value is 0.978, which is more than 0.05, the

gender of the respondents are not in connection with the risk tolerance

level. Hence, it is concluded that there is no significant association

between the gender of the respondents and the risk tolerance level.

106

T-TEST


respondents and the confidence in mutual funds


respondents and the confidence in mutual funds


Male (n=225) 1.95 .781 T=1.844 Df=298.066>0.05


Inference

Since the significance value is 0.066, which is more than the

value of 0.05, the gender of the respondents would not create the

confidence level. Hence, it is said that there is no significant relationship

between the gender of the respondents and the confidence in mutual

funds.

107

T-TEST


respondents and their opinion on the awareness level of protection

mechanisms followed by the government


respondents and their opinion on the awareness level of protection

mechanisms followed by the government

Awareness level of protectionmechanisms followed by the

government.

Male (n=225) 2.23 .829 T=-.579 Df=298.563>0.05


Inference

Since the significance value is 0.563m, which is more than the

value 0.05, the gender of the respondents would not make aware the

investors on protection mechanisms by the government. Hence it is

concluded that there is no significant association between the gender of

the respondents and their opinion on the awareness level of protection

mechanisms followed by the government.

108

T-TEST

Ho: There is no significant association between the marital status of

the respondents and their opinion on the investment in mutual

fund is risky


respondents and their opinion on the investment in mutual fund is

risky

Do you feel investment in mutualfunds is risky

Mean S.DStatisticalinference

Single (n=168) 1.89 .812 T=.634.527>0.05

Not SignificantMarried (n=132) 1.83 .802

Inference

Since the significance value is 0.527 which is more than 0.05, the

marital status is not connected to the opinion on the investment in

mutual funds. Hence it is concluded that there is no significance

between the marital status and their opinion on the investment in mutual

fund is risky.

109

T-TEST

Ho: There is no significant association between the marital status of

the respondents and their opinion on the risk tolerance level


respondents and their opinion on the risk tolerance level

Risk tolerance level

Single (n=168) 2.49 1.243 T=.287.775>0.05

Not SignificantMarried (n=132) 2.45 1.108

Inference

Since the calculated value is 0.775, which is greater than 0.05

level, the marital status would not be the basis for the risk tolerance

level. Hence it is concluded that there is no significance between the

marital status of the respondents and their opinion on the risk tolerance

level.

110

ANALYSIS OF VARIANCE (ANOVA)


respondents and their knowledge about the financial

liberalization.


respondents and their knowledge about the financial liberalization

Your knowledge aboutfinancial liberalization

Between Groups .993 3 .331

F=.507.678>0.05

NotSignificant

Below 1.5 lakh (n=89) 2.09 .821

1.5 to 5 lakh (n=93) 2.23 .796

5 to 10Lakh (n=103) 2.17 .797

Above 10 lakh (n=15) 2.07 .884

Within Groups 193.327 296 .653

Inference

Since the significance value is 0.279, which is greater than 0.05,

the null hypothesis is accepted. Hence, it is concluded that there is no

significant association between the occupation of the respondents and

their knowledge about the financial liberalization.

111



respondents and their risk tolerance level


respondents and their risk tolerance level

1Risk tolerance level

Between Groups 1.112 3 .371

F=.263.852>0.05

NotSignificant

Below 1.5 lakh (n=89) 2.43 1.147

1.5 to 5 lakh (n=93) 2.43 1.201

5 to 10Lakh (n=103) 2.54 1.203

Above 10 lakh (n=15) 2.60 1.242

Within Groups 417.724 296 1.411

Inference




their risk tolerance level

112



respondents and their confidence in mutual funds


respondents and their confidence in mutual funds

Confidence in MutualFunds


F=1.132.336>0.05

NotSignificant

Below 1.5 lakh (n=89) 1.99 .761

1.5 to 5 lakh (n=93) 1.94 .832

5 to 10Lakh (n=103) 1.83 .755

Above 10 lakh (n=15) 1.67 .724


Inference




their confidence in mutual funds

113



respondents and their confidence in bench marking


respondents and their confidence in bench marking

Confidence in Benchmarking


F=.811.489>0.05

NotSignificant

Below 1.5 lakh (n=89) 1.96 .824

1.5 to 5 lakh (n=93) 1.84 .784

5 to 10Lakh (n=103) 1.79 .736

Above 10 lakh (n=15) 1.93 .799


Inference




their confidence in bench marking.

114



respondents and their confidence in mutual funds.


respondents and their confidence in mutual funds.

Confidence in MutualFunds


F=1.132.336>0.05

NotSignificant

Below 1.5 lakh (n=89) 1.99 .761

1.5 to 5 lakh (n=93) 1.94 .832

5 to 10Lakh (n=103) 1.83 .755

Above 10 lakh (n=15) 1.67 .724


Inference



significant association between the income of the respondents and their

confidence in mutual funds.

115



respondents and their knowledge on mutual funds.


respondents and their knowledge on mutual funds

State yourknowledge of Mutual

Fund


F=.357.784>0.05

NotSignificant

Below 1.5 lakh (n=89) 2.71 1.383

1.5 to 5 lakh (n=93) 2.62 1.444

5 to 10Lakh (n=103) 2.53 1.427

Above 10 lakh (n=15) 2.40 1.183

Within Groups 587.464 296 1.985

Inference



significant association between the income of the respondents and their

knowledge on mutual funds.

116

KRUSKAL WALLIS TEST

Ho: There is no significance between the investment time period

Preference and the timely service of the fund management

companies

H1: There is a significance between the investment time period

Preference and the timely service of the fund management

companies

Investment time period preference inMutual Fund

MeanRank

Statisticalinference

Timely service

Below 1 yrs (n=105) 160.48X2=4.014

Df=3.260>0.05

Not Significant

1 to 3 yrs (n=63) 135.98

3 to 5 yrs (n=55) 154.91

Above 5 yrs (n=77) 145.63

Inference

The significance value is 0.260 which is greater than 0.05 level.

Therefore it is concluded that the null hypothesis is accepted that there

is no significance between the investment time period preference and

the timely service of the fund management companies.

117

KRUSKAL WALLIS TEST

Ho: There is no significance between the investment time period

Preference and the home delivery of services

H1: There is a significance between the investment time period

Preference and the home delivery of services

Home delivery

Below 1 yrs (n=105) 132.52X2=10.411

Df=3.015<0.05Significant

1 to 3 yrs (n=63) 161.45

3 to 5 yrs (n=55) 172.70

Above 5 yrs (n=77) 150.19

Inference

The significance value is 0.015, which is less than 0.05 level.

Hence the null hypothesis is rejected and the alternate hypothesis is

accepted. It is concluded that there is a significance between the

investment time period preference and the home delivery of services.

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CHAPTER IV DATA ANALYSIS AND...

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