MUTUAL FUNDS: AN OVERVIEW A Mutual fund is a trust that pools the saving of the number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme. These could range from share to debentures these investments and the capital appreciation realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (prorate). 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 portfolio at a relatively low cost. Anybody with an investment in mutual funds. Each mutual funds scheme has a defined investment objective and strategy. The flow chart below describes broadly the working of a mutual fund: Investors Passed pool their back to money with
Transcript
MUTUAL FUNDS: AN OVERVIEW
A Mutual fund is a trust that pools the saving of the number of investors who share
a common financial goal. The money thus collected is invested by the fund
manager in different types of securities depending upon the objective of the
scheme. These could range from share to debentures these investments and the
capital appreciation realized by the scheme are shared by its unit holders in
proportion to the number of units owned by them (prorate). 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 portfolio at a relatively low cost.
Anybody with an investment in mutual funds. Each mutual funds scheme has a
defined investment objective and strategy.
The flow chart below describes broadly the working of a mutual fund:
Investors
Passed pool their back to money with
Returns Fund Manager
Generates Invest in Securities
A mutual fund is the ideal investment vehicle for today’s complex and modern
financial scenario. Markets for equity shares, bonds and other fixed income
instruments, real estate, derivatives and other assets have become mature and
information driven. Price changes in these assets are driven by global events
occurring in fare way places. A typical individual is unlikely to have the
knowledge, skills inclination and time to keep track of events, understand their
implications and act speedily. An individual also finds it difficult to keep track of
ownership of his assets, investments., brokerage dues and bank transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally
qualified and experience staff that manages each of these functions on a full times
basis. The large pool of money collected in the fund allows it to hire such at a very
low cost to each investor. In effect, the mutual fund vehicle exploits economics of
scale in all three areas-research, investments and transaction processing. While the
concept of individual coming together the invest money collectively is now new,
the mutual fund its present from is 20th century phenomenon. In fact, mutual funds
gained popularity only after the second world war. Globally there are thousand of
funds offering ten of thousands of mutual funds with different investment
objectives. Today, mutual funds collectively mange almost as much as or more
money as compared to banks.
A draft offer document is to be prepared at the time of lunching the fund.
Typically, it pre species the investment objectives of the fund, the risk associated,
the costs involved in the process and the broad rules fro entry in to and exit from
the fund and other areas of operation. In India, as in countries, these sponsors need
approval from a regulator, SEBI (Security and Exchange Board of India) in our
case SEBI looks at track records of the sponsor and its financial strength in grating
approval to the fund for commencing operations.
A sponsor then hires an asset management company to invest the funds according
to the investment objective. It also hires another entity to bt the custodian of the
assets of the fund and perhaps a third one to handle registry work for the unit
holders (subscribers) of the fund.
In the Indian context, the sponsors promote the asset Management Company
also, in which it holds a majority stake. In many cases a sponsor can hold a 100%
stake in the asset management Company (AMC). E.g. Birla Global Finance is the
sponsor of the Birla Sun Life Asset Management Ltd. Which has floated mutual
funds schemes and also acts as a manger for the funds collected under the
schemes?
BRIEF HISTORY OF MUTUAL FUNDS (MFS)
The end of millennium marks 36 years pf existence of mutual funds in this country.
The ride through these 36 years is not been smooth. Investor opinion is still
divided. While some are for mutual funds other against it.
UTI commenced its operations from July 1964. the impetus for establishing
a formal UTI. On came from the desire to increase the propensity of the middle
and lower groups to save and to invest. UTI came into existence during a period
marked by great political and economic uncertainty in India. With war on the
boards and economic turmoil that depressed the financial market, entrepreneurs
were hesitant to enter capital market. The already existing companies found it
difficult to raise fresh capital, as investors did not responds adequately to new
issues. Earnest efforts were required to canalize saving of the community into
productive uses in order to speed up the process of industrial growth. The them
finance minister, T.T Krishanmachari set up the idea of a unit trust that would be
“open the any person or UTI on o purchase the units offered by the truest.
However this UTI on as we see it, is intended to cater to the needs of individual
investors, and even among them as far as possible, to those whose means are
small”. His ideas took the form of the Unit Trust of India, an intermediary that
would help fulfill the twin objectives of mobilizing retail saving and investing
those savings in the capital market and passing on the benefits so accrued to the
small investors.
UTI commenced its operations from July 1964 “with a view to encouraging saving
and investment and participation in the income, profits and gain occurring to the
corporation from the acquisition, holding, management and disposal of securities.”
Different, provisions of the UTI act laid down the structure of management, scope
of business, powers and functions of the trust as well as accounting, disclosures
and regulatory requirements for the trust.
One things is certain – the fund industry is here to stay. The industry was one
entity show till 1986 when the UTI monopoly was broken when SBI and Can bank
mutual fund entered the area. This was followed by the entry of others like LIC,
IC, etc. sponsored by public sectors banks. Starting with an asset base of Rs. 0.25
ban in 1964 the industry has grown at a compounded average growth rate of
26.34% to its current size Rs. 1130 ban.
The period 1986-1993 can be termed as the period of public sector mutual funds
(PMFs). From one player in 1985 the number increased to 8 in 199. the party did
not last long. When the private sector made its debut in 1993-94, the stock market
was booming.
The opening up of the assets management business to private sector in 1993 saw
international along with the host of domestic players join the party. But for the
equity funds, the period of 1994-96 was one of the worst in the history of Indian
mutual funds.
1999-2000 years of the funds:
Mutual fund have been around for a long period of time precise for 36 yrs. But the
year 1999 saw immense future potential and developments in this sector. This year
signaled the year of resurgence of mutual funds and the regaining of investor
confidence in these MF’s this time around all the participants are developments in
this sector. This year signaled the year of resurgence of mutual funds and the
regaining of investor confidence in these MF’s. this time around all the participants
are involved in the revival of the funds the AMC’s the unit holders, the other
related parties. However the sole factor that give lift to the revival of the funds was
the union budget. The budget brought about a large number of changes in one
stroke. An insight of the union budget on mutual funds taxation benefits is
provided later.
It provided center stage to the mutual funds, made them more attractive and
provides acceptability among the investors. The union budget exempted mutual
fund dividend given out by equity-oriented schemes from, both at the hands of the
investor as well as the mutual fund. No longer were the mutual funds interested in
selling the concept of mutual funds they wanted to talk business which would
mean to increase asset base, and to get asset base and investor base they had to be
fully armed with a whole lot of schemes for every investor. So new schemes for
new IPO’s were inevitable. The quest to attract investors extended beyond just new
schemes. The funds started to regulate themselves and were all out on wining the
trust and confidence of the investors under the ages of the Association of Mutual
funds of India (AMFI)
One can say that the industry is moving from infancy to adolescence, the industry
is maturing and the investor and funds are frankly and openly discussing
difficulties opportunities and compulsions.
FUTURE SCENARIO:
The asset base will continue to grow at an annual rate of about 30 to 35 % over the
next few years as investor’s shift their assets from banks and other traditional
avenues. Some of the older public and private sector players will either close shop
or be taken over.
Out of ten public sector players five will sell out, close down or merge with
stronger players in three to four years. In the private sector this trend has already
started with two mergers and one takeover. Here too some of them will down their
shutters in the near future to come.
But this does not mean there is no room for other players. The market will witness
a flurry of new players entering the arena. There will be a large number of offers
from various asset management companies in the time to come. Some big names
like Fidelity, Principal, Old Mutual etc. are looking at Indian market seriously. One
important reason for it is that most major players already have presence here and
hence these big names would hardly like to get left behind.
In the U.S. most mutual funds concentrate only on financial funds like equity and
debt. Some like real estate funds and commodity funds also take an exposure to
physical assets. The latter type of funds are preferred by corporate’s who want to
hedge their exposure to the commodities they deal with.
For instance, a cable manufacturer who needs 100 tons of Copper in the month of
January could buy an equivalent amount of copper by investing in a copper fund.
For Example, Permanent Portfolio Fund, a conservative U.S. based fund invests a
fixed percentage of it’s corpus in Gold, Silver, Swiss francs, specific stocks on
various bourses around the world, short –term and long-term U.S. treasuries etc.
In U.S.A. apart from bullion funds there are copper funds, precious metal funds
and real estate funds (investing in real estate and other related assets as well.).In
India, the Canada based Dundee mutual fund is planning to launch a gold and a
real estate fund before the year-end.
In developed countries like the U.S.A there are funds to satisfy everybody’s
requirement, but in India only the tip of the iceberg has been explored. In the near
future India too will concentrate on financial as well as physical funds.
The mutual fund industry is awaiting the introduction of DERIVATIVES in the
country as this would enable it to hedge its risk and this in turn would be reflected
in it’s Net Asset Value (NAV).
SEBI is working out the norms for enabling the existing mutual fund schemes to
trade in Derivatives. Importantly, many market players have called on the
Regulator to initiate the process immediately, so that the mutual funds can
implement the changes that are required to trade in Derivatives.
TYPE OF MUTUAL FUNDS
Mutual fund schemes may be classified on the basis of its
structure and its investment objectives.
By Structure:
Open-ended funds
An open-end fund is one that is available for subscription all through the year.
These do not have a fixed maturity. Investors can conveniently buy and sell units at
net asset value (“NAV”) related prices. The key feature of the open-end schemes is
liquidity.
Closed-ended Funds
A closed-end-fund has a stipulated maturity period generally ranging from 3 to 15
years. The fund is open for subscription only during a specified period. Investor
can invest in the scheme at the time of the initial public issue and thereafter they
can by or sell the units of the stock exchanges where they are listed. In order to an
option of selling back the units to the Mutual Fund through periodic repurchase at
NAV related prices. SEBI Regulations Stipulate that at least one of the two exit
routes is provided to the investor.
Interval Funds
Interval funds combine the features of open-ended and close-ended schemes. They
are open for sale or redemption during predetermined intervals at NAV related
prices.
By Investment Objective :
Growth Funds
The aim of growth is to provide capital appreciation over the medium to long-term.
Such schemes normally invest a majority of their corpus in equities. It has been
proven that returns from stocks, have outperformed most other kind of investments
held over the long term. Growth schemes are ideal for investors having a long term
out look seeking growth over a period of time.
Income Funds
The aim of income fund is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities. Income Funds are ideal for
capital stability and regular income.
Balanced Income
The aim of balanced funds is to provide both growth and regular income. Such
schemes periodically discibute a part of their earning and invest both in equities
and fixed securities in the proportion indicated in their offer documents. In a rising
market, the NAV of these schemes may not normally keep pace, or fall equally
when the market falls. These are ideal for investors looking for a combination of
income and moderate growth.
Money Market Funds
The aim of money market funds is 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 deposits, commercial paper and
inter-bank call money. Returns of this schemes may fluctuate depending upon the
interest rates prevailing in the market. These are ideal for corporate and individual
investors as a mean to park their surplus funds for short periods.
Load funds
A load Fund is one that charges a commission for entry or exit. That is each time
you buy or sell units in the fund, a commission will be payable. Typically entry or
exit loads range from 1% to 2% It could be worth paying the load if the fund has a
good performance history.
No-load Fund
A No-Load Fund is one that does not charge a commission for entry or exit. That
is, no commission is payable on purchase or sale of units in the fund. The
advantage of a no load fund is that the entire corpus is put to work
Other Schemes:
Tax Saving Schemes
These schemes offer tax rebate to the investors under specific provision of the
Indian income tax law as the Government offers tax incentives for investment in
specified avenues. Investment made in Equity Liquid Saving Schemes (ELSS) and
Pension schemes are allowed as deduction u/s 88 of the income Tax act, 1961. The
Act also, provides opportunities to investors to save capital gains u/s 54 EA and 54
EB by investing in Mutual Funds, provided the capital asset has been sold prior to
April 1, 2000 and the amount is invested before September 30, 2000.
Special Schemes
Industry Specific Schemes
Industry Specific Schemes invest only in the industries specified in offer
document. The investment of these funds is limited to specific industries like Info
Tech, FMCG, Pharmaceuticals HDFC BANK LTD. calls etc.
Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the
BSE sensex or the NSF 50
Sectoral Schemes
Sectoral Funds are those, which invest exclusively in a specified industry or a
group of industries or various segments such as ‘A’ Group shares or initial public
offerings.
Major Mutual Fund Companies in India
ABN AMRO Mutual Fund Reliance Mutual Fund
Birla Sun Life Mutual Fund Standard Chartered Mutual Fund
Bank of Baroda Mutual Fund Franklin Templeton India Mutual
Fund
HDFC Mutual Fund Morgan Stanley Mutual Fund
India
HSBC Mutual Fund Escorts Mutual Fund
ING Vysya Mutual Fund Alliance Capital Mutual Fund
Prudential ICICI Mutual Fund Benchmark Mutual Fund
State Bank of India Mutual Fund Canbank Mutual Fund
Tata Mutual Fund Chola Mutual Fund
Unit Trust of India Mutual Fund LIC Mutual Fund
15%
20%
9%9%
4%
9%
5%
5%
3%
3%
4%3% 14%
Market Share 'Reliance Mutual Fund HDFC Mutual Fund Birla Sun Life Mutual FundICICI Prudential Mutual Fund Kotak Mahindra Mutual Fund UTI Mutual FundLIC Mutual Fund SBI Mutual Fund IDFC Mutual FundTATA Mutual Fund Franklin templeton Mutual Fund DSP Black Mutual Fund23 others players
RESEARCH METHODOLOGY
This Report is based on primary as well as secondary data, however primary data collection was
given more important since it is overhearing factor in attitude studies.
One of the most important users of Research Methodology is that it helps in identifying the
problem, collecting, analyzing the required information or data and providing an alternative
solution to the problem. It also helps in collecting the vital information that is required by the
Top Management to assist them for the better decision making both day to day decisions and
critical ones.
a) Research Design: Descriptive Design
b) Data Collection Method: Survey Method
c) Universe: Chandigarh
d) Sampling Method: The sample was collected through personal visits, formally and informal
talks and through filling up the Questionnaire prepared. The data has been analyzed by using
mathematical or statistical tools.
e) Sample Size: 100 respondents
f) Sampling Unit: Businessmen, Government Servant, Retired Individuals majorly HNI’s
g) Data Source: Primary data
h) Data Collection Instrument: Structured Questionnaire
i) Sample Design: Data has been presented with the help of Bar Graph, Pie Chart, and Line
Graph etc.
j) Duration of The Study: The study was carried out for a period of 45 days, from 13th June to
30th July ‘2014.
Questionnaire to analyse perceptions of peoples for Mutual funds
Please go through the following questionnaire and identify the appropriate responses for each of
them. There is no such thing as a correct answer, so feel free to respond. Please forward it as
many peoples as you can. Disclaimer: Your response via this questionnaire will be used strictly
for academic purposes. There will not be any commercial solicitation or usage of the response in
any kind / form whatsoever.
1.What's your Good name?
2. What’s your Age?
3. What is your Qualification?
(a) Under-graduation (b) Graduation (c) Post Graduation (d) Others
4. What is your Occupation?
(a) Government (b) Private (c) Business (d) Others
6. In this highly volatile market, do you think Mutual Funds are a destination for
Investments?
YES
NO
7. Which Mutual Fund Plan do you consider the best?
Balanced Plan
Equity Plan
Income Plan
Other Plan
1. How long would you like to hold your Mutual Funds' Investments?
1 to 3 years
4 to 6 years
7 to 10 years
10 years or more
2. How do you rate the risks associated with Mutual Funds?
Low
Moderate
High
3. Which among the following principles do you consider while selecting a Mutual Fund?
Enquiring about fund Managers
Finding about its Past Performance
Identifying your own objective
Other
4. Which end-scheme do you feel is good? *Open end type of mutual fund are those that
does not have restrictions on the amount of shares the fund will issue and Closed end
fund is a publicly traded investment company that raises a fixed amount of capital
through an initial public offering (IPO).
Open End
Close End
5. What is your annual income ?
Below Rs. 100000
100000 to 300000
300000 to 500000
Above 500000
6. What do you think which risks usually affects Mutual Funds? Systematic risk is the
risks inherent to the entire market segment as interest rates and unsystematic risks are
specific risks as NEWS that affects specific stock.
Systematic
Unsystematic
7. Which are the primary sources of your knowledge about Mutual Funds as an
investment option?
Television
Internet
Newspaper/Journals
Friends/Relatives
Sales
Representatives
15. While investing your money, how these factors affect your decision ? Corresponding to
your choices how would you rate their influence on your final Mutual Fund purchase
decision. Please rank them on a scale of 1-5 with 1 representing minimal influence and 5
representing Strong influence
1 2 3 4 5
Liquidity
High Return
Professional
Management
Diversification
Brand Image
Price
Risk
16. Which among the following is the safest Investment option?
Mutual Fund
Stock Market
Bank Deposit
Others
17. Which factors prevent you to invest in mutual fund?
Bitter Past Experience
Lack of Knowledge
Lack of Confidence in Service being provided
Difficulty in Selection of Schemes
Inefficient investment advisors
Other
18. Reason you make investment in mutual fund
Higher return
Tax benefit
Professional management
other
Anything you would like to add about mutual fund.
You are welcome
Data Analysis & Interpretation
1. Analyzing to according to Age
3%12%
35%22%
18%
10%
Age of Investors>=30 31-35 36-40 41-45 46-50 >50
Interpretation - Here, it is been found that most of the investors i.e,35% of the investors
who invest in Mutual Fund lies in between the age group of 36-40, they are more reluctant as
well as experienced in this field of Mutual Fund.
Then the Second highest age group lies in between the age group of 41-45 (22%), they are also
aware of the benefits in investing in mutual fund.
The least interested group is the Youth Generations.
2. Analyzing according to Qualifiaction
Undergrad
uates
Grauad
tes
Post gra
duation
Others0
204060
Qualification of Investors
Qualification
No.
of I
nves
tors
Interpretation - Out of my survey of 100 people, 71% of the investors are Graduates and Post
Graduates and 16.67% are Under Graduates and Others, around 12.5%, which may include
persons who have passed their 10th standard or 12th standard invests in Mutual Funds.
3. Analyzing according to Occupation
Gov-ern-ment24%
Private46%
Business25%
Others5%
Investor's Proffession
Interpretation - Here it is amazed to see that around 46% of the investment is been invested by
the persons working in Private sectors, according to them investing in Mutual Funds is more
safer as well as more gainer.
Then we find that the businessmen of around 25%gives more preference in investing in mutual
funds, they think that investing in mutual fund is better than investing in shares as well as Post
office.
Next we see that the persons working in Government sectors of around 24% only invests in
Mutual Fund.
1. Analyzing according to Monthly Family Income
20%
25%
35%
20%
<30000030001-5000050001-100000<100000
Interpretation - Here , we find that HNI investors of around 35% with the monthly income of
Rs. 50001-100000 are the most likely to invest in Mutual fund , than followed by investors of
around 25% with monthly income of Rs 30001-50000 any other income group. And then 20% -
20 % by investors having monthly income of <30000and <100000
Analyzing investment in mutual fund on the basis of volatility in market
70%
30%
yesno
mutual fund as an invetment in volatile market
Interpretation- from the above pie chart it is clear that 70% of investors consider investment in
mutual fund as a destination in this highly volatile market where as 30% of investors consider
investment in mutual fund as a destination
Analysis on the basis of mutual fund plans investors consider
Blanced Equity plan Income plan Other0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
mutual fund plans
Interpretation- from the data collected through questionnaires I come to find that near
about 40% of investors invest in balanced funds ie.. in both equity and in debt fund keeping their
portfolio balanced .30% of the investors that were covered in the research finds equity plans
more beter than others and belive in taking more and more risk. 10% invest in income plans
which are also known as debt schemes. These schemes generally invest in fixed income
securities such as bonds and corporate debentures. Capital appreciation in such schemes may be
limited. and rest 20% invest in other plans such as tax saving plans, index plans etc
Analysis according to length of time to hold investment in mutual fund
20%
40%
35%
5%
time period of investing in mutual funds
1-3 years4-6years7-10 years 10 years or more
Interpretation- the above pie chart shows that most of the investors (40%) believe in investing
their in money in mutual funds for a period of 4-6 years, followed by 35% investors who do it
for 7-10 years ,20% investors invest in mutual funds for 1-3 years and only 5% do the same for
10 years
Analysis on the basis of risk associated with the mutual fund
low moderate high0%
10%
20%
30%
40%
50%
60%
70%
risk associated with mutual funds
responses
Interpretation- near about 65% of the investors stated that they consider mutual funds as a
moderate risk as these are linked to the equity market moreover this risk is minimized by the
professional expertise of fund manager and diversification.20 % of the investors consider it as a
less risky and near about 15 % consider it as more risky due to its ultimate investment in equity
market
Analysis according to the principles investors consider while selecting a Mutual Fund s
20%
47%
15%
18%
principal they consider while selecting mutual fun
Enquiring about fund ManagersFinding about its Past Per-formanceIdentifying your own objec-tiveother
Interpreation- from the above pie chart it is clear that 47 % of investors finds about the past
performance of the mutual funds before investing in to it. While 20 % of investors enquire about
the fund manager , 15% investors invest in mutual fund in accordance with their own objectives
which differ from person to person and near about 18% of investors consider other principals
than the above mentioned three principles
Analysis on the basis of end scheme thae the investor feel good
70%
30%
end schemes (open and closed )
Open EndClose End
Interepration- the above graph simply depicts that 70% of the investor consider open ended
mutual funds good as they can enter and exit at any time from these fundsand benefit of sip
where they can purchase more shares when the price of share is low.where as 30% of investors
consider closed ended funds better than open ended funds as they belive that its timein the that
akes difference not timing the market
A nalysis acording to the risk (systematic and unsystematic)that affect themutual fund more
80%
20%
risk that affect mtual fund
systematic riskunsystematic risk
Interpreation- near about 80% of investors feel that systematic risk ussauly affects the mutual
funds as these can not be diversified and for this reasion people condider it as a un-diversifiable
risk and so.me time market risk. Where as 20%of people also consider unsystematic risk who
deals in market for short time
Analysis on the basis of source of knowladge about mutual funds
Telev
ision
Internet
Newsp
aper/
Journals
Frien
ds/Rela
tives
Sales
Repres
entati
ves
0%5%
10%15%20%25%30%35%40%45%
primary source of knowladge
responses
Interpretation- among the 5 sources mentioned in the questioner most people(45%) get
knowladge about mutual fund through the sale representative , 20% through internet,near about
16% through newspaper and journals ,near about 14 percent through friends and relatives by
word of mouth and only 10 percent through television
(this may b because the research was conducted in chandigarh and for the HNI’s )
Analysis on the basis of the factors that affect investors decision While investing your
money
Liquidity
High Retu
rn
Profes
sional
Manag
emen
t
Diversi
fication
Brand Im
age
Price
Risk0%5%
10%15%20%25%30%35%
factors that affect the decesion
responses
Interpretation:30% of the people look for high returns while making the investment and rank it
as a number 1st in overall research where as 20% of people look for risk assosiated with the
mutual funds and it was ranked as 2nd factor in overall research.17 % of investor look for the
liquidity of the mutual funds and this factor was ranked 3rd in overall research .price of mutual
fund is also considered vital by 13% of people and was ranked 4th in over all research,8%,8% of
people considered professional management and diversification and ranked them as 5th and 6th
factor in overall research.and only 5% of people have cosidered brand image as important and it
is ranked 7th in over all research
Analysis on the basis of safest investment option
Mutual Fund Stock Market Bank Deposit Others0%
10%
20%
30%
40%
50%
60%
70%
safest Investment option
responses
Interpreation- the safest investment option that65% people consider is bank deposit and
thenfollowed by mutual fund where 25%people has mentioned it as safest and no one consider
stock market as safest.and 10 % of people feel that investment in gold, property etc is the most
safest
Analysis according to the factor that prevent investors to invest in mutual fund
23%
22%
23%
10%
20%
2%
factors that prevent investors to invest in mutual fund
Bitter Past ExperienceLack of KnowledgeLack of Confidence in Service being providedDifficulty in Selection of SchemesInefficient investment ad-visorsOther
Interpretation- from the above pie chart it is clear that 23%,23% of people avoid investing in
mutual funds beacause of bitter past experience and lack of confidence in service being provided,
22% of people don’t have the proper knowladge about the mutual funds and therefore don’t
invest in it. Where as 20% of the respondent feels that the tinvestment advisors are in
sufficient ,10% finds difficulty in selection of schemes and 2% have other reasion that prevents
them form making investment
Analysis on the basis of pourpose of investment in mutual funds
