ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 14 www.zenithresearch.org.

in INVESTORS AWARENESS AND PERCEPTION ABOUT MUTUAL FUNDS SIMRAN SAINI*; DR BIMAL ANJ UM **; RAMANDEEP SAINI***; *Research Scholar , PTU, Jalandhar ** Prof & HOD-Mgt. ,RIMT-IET, Mandi Gobindgarh *** Senior lecturer, HOD-PGDM, Chandigarh Business S chool, Landran, Mohali _________________________________________________________ ____________________________________ ABSTRACT Indian mutual fund has gained a lot of popularity from the past few years. Earli er only UTI enjoyed the monopoly in this industry but with the passage of time m any new players entered the market, due to which the UTI monopoly breaks down an d the industry faces a severe competition. As the time passes this industry has become a buzz word in the Indian financial system. So it is very important to kn ow the investors perception about this industry. The present study analyses the m utual fund investments in relation to investors behavior. Investors opinion and pe rception has been studied relating to various issues like type of mutual fund sc heme, main objective behind investing in mutual fund scheme, role of financial a dvisors and brokers, investors opinion relating to factors that attract them to i nvest in mutual funds, sources of information, deficiencies in the services prov ided by the mutual fund managers, challenges before the Indian mutual fund indus try etc. KEYWORDS: Mutual fund, investors perception, investors behavior, objectiv es, challenges. INTRODUCTION From its inception the growth of mutual funds is very slow and it took really lo ng years to evolve the modern day mutual funds. Mutual Funds emerged for the fir st time in Netherlands in the18th century and then got introduced to Switzerland , Scotland and then to United States in the 19th century. The main motive behind mutual fund investments is to deliver a form of diversified investment solution . Over the years the idea developed and people received more and more choices of diversified investment portfolio through the mutual funds. In India, the mutual fund concept emerged in 1960. The credit goes to UTI for introducing the first mutual fund in India. Monetary Funds benefited a lot from the mutual funds. Earl ier investors used to invest directly in the stock market and many times suffere d from loss due to wrong speculation. But with the coming up of mutual funds, wh ich were handled by efficient fund managers, the investment risks were lowered b y a great extent. The diversified investment structure of mutual funds and diver sified risk contributed tremendously in the growth of mutual funds. With the ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 15 www.zenithresearch.org.in passage of time many new mutual funds emerged. Not only this, the methods and wa ys of selling these funds also changed with time. But, the growth of mutual fund s has not stopped. It is continuing to evolve to a better future, where the inve stors will get newer opportunities. In this era of globalization and competition , the success of an industry is determined by the market performance of its stoc k. The investors too like to invest only in the stock of those companies from wh ich they can get maximum gains. In early years of growth of mutual fund industry , investors were available only with few investment avenues to invest their mone y. But with the passage of time a lot of opportunities are available to the inve stors for investing their money in different investment channels. One such chann el is to invest in mutual funds along with effective financial management. Mutua l funds have seen a tremendous growth in the last few years. This is the result of combined efforts of the brokerage houses and the fund managers who come to on es rescue by educating the investors and making them aware of the mutual fund sch emes by different modes of promotion. The currently common mode of community inv estments, mutual funds have taken time in coming to India, while these have been a dominant feature for the last several years in the investment markets in the west and in the country of their origin, in USA they have become as ancient as m

oney itself. Their slow coming into the country is due essentially to the Unit T rust of India having dominated the scene as the only institution of its kind all this time. After two decades of UTI monopoly some public sector organizations l ike LIC (1989), GIC (1991), SBI (1987), Can Bank (1987), and India Bank (1990) h ave been permitted to set up mutual funds. The important characteristics of mutu al funds are: 1. Investors purchase mutual fund shares from the fund itself (or through a broker for the fund) instead of from other investors on a secondary ma rket, such as the New York Stock Exchange or Nasdaq Stock Market. 2. The price t hat investors pay for mutual fund shares is the fund s per share net asset value (NAV) plus any shareholder fees that the fund imposes at the time of purchase ( such as sales loads) 3. Mutual funds generally create and sell new shares to acc ommodate new investors. In other words, they sell their shares on a continuous b asis, although some funds stop selling when, for example, they become too large. 4. The investment portfolios of mutual funds typically are managed by separate entities known as "investment advisers" that are registered with the SEC. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 16 www.zenithresearch.org.in The present study analyses the mutual fund investments in relation to investors b ehavior. Investors opinion and perception has been studied relating to various is sues like type of mutual fund scheme, main objective behind investing in mutual fund scheme, role of financial advisors and brokers, investors opinion relating t o factors that attract them to invest in mutual funds, sources of information, d eficiencies in the services provided by the mutual fund managers, challenges bef ore the Indian mutual fund industry etc. This study is very important in order t o judge the investors behavior in a market like India, where the competition incr eases day by day due to the entry of large number of players with different fina ncial strengths and strategies. OBJECTIVES OF THE STUDY The Indian mutual fund industry is a very large industry consisting of number of investors. In this era of competition different investors have different investm ent objectives. As the human behavior is unpredictable, this study helps in find ing out the necessary facts regarding investors opinion and perceptions regarding mutual fund investment.The main objectives of the study are: 1. To study the growth of mutual fund industry in India. 2. To analyze the investors awareness and perception regarding investing in mutu al funds. 3. To find out the investors opinion regarding major deficiencies in the working of the mutual fund industry 4. To find out the suggestions from the investors that can help in plugging out these deficiencies. SCOPE OF THE STUDY The scope of the study is to track out the investors preferences, priorities and their awareness towards different mutual fund schemes. Keeping in view the vario us constraints the scope of the study is limited only to the investors residing in Chandigarh. Data for the study is collected from a sample of 200 investors by using stratified sampling. Out of all the questionnaires 196 questionnaires are considered valid for the purpose of the study. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 17 www.zenithresearch.org.in DATA COLLECTION METHODS For the purpose of the study two sets of data has been used. The first set of da ta is the primary data. This type of data has been collected from the investors with the help of a Questionnaire. The second set of data used for the study is t he secondary data. The secondary data relating to net resources mobilized by ban ks and financial institution sponsored mutual funds, assets under management, in vestors mix etc is collected for a period of 1999-2008. This type of data is col

lected from different investment periodicals, magazines, various newspapers, RBI reports, AMFI reports, SEBI annual reports; securities market reviews, study of existing literature of different authors in the related field etc. STATISTICAL TOOLS USED To carry out the research work different statistical tools are used in order to derive certain meaningful information and results. In case of primary data Chi S quare tests has been applied and in case of categories where respondents are req uired to provide ranks to different factors, the relative importance of the resp ective factor is calculated by assigning scores to them. In case of secondary da ta exponential growth rates has been calculated. PROMINENT FINDINGS OF THE STUDY The main findings of the study relating to the p erception of the investors regarding different aspects of mutual funds such as t heir main objective behind investing in mutual funds, their knowledge about SIP, sources of information, perception about financial advisors and brokers, method of performance evaluation are summarized as under: MAIN OBJECTIVE BEHIND INVEST ING IN MUTUAL FUNDS Every investor has one or more objectives behind their investments in mutual fun ds. Without any investment objective, the investment is considered as useless. A ccording to table 1 the main objective of the respondents behind investing in mu tual funds is the tax benefits offered by it followed by high return and safety of the schemes. Therefore getting tax benefits from the scheme is the main motiv e of the investors behind their investment in mutual funds. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 18 www.zenithresearch.org.in Table 1 Ranking and scoring of factors considered by investors while investing i n mutual funds Factors Ranks and Scores Total F(S) Ranks 1 2 3 4 5 6 7 8 Expertise 5 (40) 5 (35) 10 (54) 15 (75) 13 (52) 27 (81) 53 (106) 68 (68) 196 (511) 8 Safety 43 (344) 34 (238) 15 (90) 14 (70) 32 (128) 20 (60) 25 (50) 13 (13)

196 (993) 3 Liquidity 32 (256) 31 (212) 21 (126) 20 (100) 27 (108) 29 (87) 22 (44) 14 (14) 196 (947) 4 Diversification 13 (104) 20 (140) 17 (102) 11 (55) 21 (84) 32 (96) 38 (76) 44 (44) 196 (701) 7 Tax benefit 48 (384) 41 (287) 43 (258) 25 (125) 18 (72) 13 (39) 4 (8) 4 (4) 196 (1177) 1 Regular income 10 (80) 25 (175) 38 (228) 41 (205) 29 (116) 28 (84) 15 (30) 10 (10) 196 (928) 5 Regular savings 9 (72) 18 (126) 25 (150) 42 (210) 23 (84) 30 (90) 24 (48) 25 (25) 196 (805) 6 High returns 38 (304) 22 (154)

28 (168) 29 (145) 34 (136) 15 (45) 14 (28) 16 (16) 196 (996) 2 Note: S- Scores Figures in parentheses () are scores ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 19 www.zenithresearch.org.in Factors that can win back the investors confidence to invest in mutual funds Gai ning the confidence of the investors is very essential for successful working of the mutual fund industry. In order to strengthen the investors confidence to inv est in mutual funds they must be offered transparency in services, tax benefits, minimum assured returns, consistency in performance etc. The study reveals that on the basis of qualification, occupation and annual family income the main fac tors that can win back the investors confidence to invest in mutual funds are the minimum assured returns (32.14%) followed by transparency (28.58%) and consiste ncy (22.44%). Table 2 shows that the demographic factors like qualification, age and annual family income have no significant relation with the factors that win back the investors confidence at 5% level of significance whereas the age of the respondents have significant relation with the factors that win back the invest ors confidence. Table 2 Factors that can win back the investors confidence (Chi S quare results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 12 .554 Not sig Age 12 .375 Not sig Occupation 16 .038 Sig Annual family income 12 .864 Not sig Features that attract the investors most while choosing a mutual fund scheme A lo t many features are available in different mutual fund schemes that attract the investors to invest in mutual funds. These features may be their past performanc e, past dividend record, stability of returns etc. From the ranks assigned by th e investors, it is found that, the most important feature that attract the inves tors while choosing a mutual fund scheme is the past performance of the scheme a nd the stability of the scheme which is followed by the past dividend records, t he portfolio of the scheme, entry/exit load and the fund managers name as exhibi ted by table 3. Table 3 Ranking and scoring of features that attracts the invest ors most while choosing a mutual fund ZENITH International Journal of Multidisciplinary Research

Vol.1 Issue 1, May 2011, ISSN 2231 5780 20 www.zenithresearch.org.in Note: S-Scores, Figures in parentheses () are scores SOURCES OF INFORMATION For good and efficient decision making investors rely on different sources of inform ation. The sources may be newspaper, brokers, tax consultants etc. Keeping the i nvestors up to date with the latest information is very essential, so that they should be aware of different happenings in the mutual fund industry. The study r eveals that for majority of the respondents newspapers (23.97%) are the main sou rce of information followed by brokers (22.96%), internet (22.96%), and tax cons ultants (17.86%) and friends/relatives (10.74%). Table 4 exhibits that based on the chi square tests all the demographic variables have no significant relations hip at 5% level of significance with the respondents sources of information on wh ich they rely for adequate information. Features Ranks and Scores Total F(S) Ranks 1 2 3 4 5 6 Past performance 67 (402) 47 (235) 37 (148) 25 (75) 14 (38) 6 (6) 196 (904) 1 Fund managers Name 14 (84) 6 (30) 21 (84) 25 (75) 40 (88) 90 (90) 196 (451) 6 Portfolio 25 (150) 25 (125) 20 (80) 50 (180) 50 (100) 26 (26) 196 (661) 4 Past dividend 15 (90) 45 (225) 48 (192) 39 (117) 29 (58) 20 (20) 196 (702) 3 Entry/Exit load

15 (90) 35 (175) 27 (108) 30 (90) 43 (86) 46 (46) 196 (595) 5 Stability of returns 58 (348) 41 (205) 44 (178) 26 (78) 18 (36) 9 (9) 196 (854) 2 ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 21 www.zenithresearch.org.in Table 4 Sources of information (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 15 .761 Not sig Age 14 .674 Not sig Occupation 20 .463 Not sig Annual family income 15 .681 Not sig EFFECT OF REMOVAL OF ENTRY LOAD ON MUTUAL FUND INVESTMENT/SIP Recently the mutua l fund companies have removed entry load on investing in mutual fund schemes. Th e study revealed that for majority of the respondents the removal of entry load has somewhat effect (68.37%) on their investment in mutual funds and systematic investment plan (SIP). The respondents who are largely affected by the removal o f entry load constitute only (22.45%). Table 5 reveals that at 5% level of signi ficance, all the demographic factors of the respondents have no bearing on the r emoval of entry load on the mutual funds. Table 5 Effect of removal of entry loa d (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 6 .104 Not sig Age

6 .220 Not sig Occupation 8 .107 Not sig Annual family income 6 .852 Not sig IMPORTANT FACTORS CONSIDERED AT THE TIME OF CHOOSING RIGHT TYPE OF MUTUAL FUND ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 22 www.zenithresearch.org.in A lot many factors are available that are considered by the investors before inv esting in mutual funds. These factors are like consistency, ability, stability e tc. Returns from the funds have a great impact on the mind setup of the investor s. It is found from the study that majority of respondents believes that the pas t performance (47.44%) of the scheme is considered as an important element while choosing right type of mutual fund scheme. After past performance the investors give importance to stability (29.59%), consistency (17.34%) and ability (5.63%) . From table 6 it is clear that all the demographic factors like qualification, age, occupation and annual family income have no impact on the factors considere d by the investors before choosing the right kind of fund at 5% level of signifi cance. Table 6 Factors considered at the time of choosing right type of mutual f und (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 9 .079 Not sig Age 9 .242 Not sig Occupation 12 .619 Not sig Annual family income 9 .36 Not sig CRITERIA FOR EVALUATING THE PERFORMANCE OF MUTUAL FUNDS Most of the investors ev aluate the performance of mutual funds before making investment in them. For eva luating the performance of different mutual fund schemes, a number of methods ar e available. As per the study, majority of the respondents prefer absolute retur ns of the funds (42.10%) and funds return to returns on other similar schemes (2 2.10%) as a criteria for evaluating the performance of mutual funds schemes. The study also reveals that the least preferred criteria for evaluating the perform ance of any fund is the fund returns to market index returns (10%). The chi squa re values at 5% level of significance as shown in table 7 reveals that all the d emographic variables have no significant relationship with the respondents criter ia for evaluating the performance of the mutual funds. ZENITH

International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 23 www.zenithresearch.org.in Table 7 Criteria for evaluating the performance of mutual funds (Chi Square Resu lts) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 15 .740 Not sig Age 15 .244 Not sig Occupation 20 .450 Not sig Annual family income 15 .936 Not sig MAJOR DEFICIENCY IN THE SERVICES PROVIDED BY THE MUTUAL FUND MANAGER Besides pro viding numerous benefits, mutual fund industry also faces a lot of criticism fro m the investors. This section discloses the various deficiencies associated with the services provided by the mutual fund managers. According to majority of res pondents the major deficiency in the services provided by their mutual fund mana gers is the lack of transparency (35.41%) which is followed by lack of periodica l statements (18.23%), lack of awareness (15.63%), risk exposure (15.11%) and hi gh expenses and costs (5.20%). Table 8 brings out that on the basis of chi squar e value all the demographic variables of the respondents have no significant rela tion with the major deficiency in the in the services provided by the fund manag er. Table 8 Major deficiency in the services provided by the mutual fund manager (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 15 .422 Not sig Age 15 .479 Not sig Occupation 20 463 Not sig Annual family income 15 .289 Not sig ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780

24 www.zenithresearch.org.in THE MAIN CHALLENGE BEFORE INDIAN MUTUAL FUND INDUSTRY With the change in Indian financial set up and increase in competition, Indian mutual fund industry faces a number of challenges. In the near future industry will face many challenges in order to attract more and more investors. From the analysis of the study it is revealed that on the basis of the qualification, age, occupation and annual inco me, majority of respondents believes that the main challenge before Indian mutua l fund industry is providing minimum assured returns to the investors (34.87%). However, according to some of the respondents educating the investors (21.53%) a nd managing their interests (15.38%) also acts as a challenge before Indian mutu al fund industry. Based on the chi square tests, it is clear that all the demogr aphic factors of the respondents have no significant relationship with the main challenge before Indian mutual fund industry as shown in table 9. Table 9 Main c hallenge before Indian mutual fund industry (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 15 .549 Not sig Age 15 .833 Not sig Occupation 20 .453 Not sig Annual family income 15 .871 Not sig FINANCIAL ADVISORS/BROKERS ARE TRUE DECISION MAKERS BEHIND MUTUAL FUND INVESTMEN TS Most of the investors consult financial advisors/brokers before making mutual fund investment. The study brings out that majority of the respondents consider ed that only to some extent (59.18%) the financial advisors/brokers are the true decision makers behind their investment in mutual funds. According to table 10 the chi square values for the above data is insignificant at 5% significance lev el which means that no significant differences were found among the different de mographic factors of investors with regard to their opinion about financial advi sors/brokers as true decision makers behind their mutual fund investments. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 25 www.zenithresearch.org.in Table 10 Financial advisors/brokers as true decision makers behind mutual fund i nvestment (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 12 .406 Not sig Age 12 .652

Not sig Occupation 16 .117 Not sig Annual family income 12 .647 Not sig PERCEPTION ABOUT FINANCIAL ADVISORS/BROKERS OF MUTUAL FUNDS As per the study, th e investors perception about financial advisors/brokers reveals that, majority of respondents perceived financial advisors and brokers are more interested in thei r own incentives (36.93%) provided to them by the mutual fund companies for sell ing more and schemes whereas some investors believes that they dont explain full information about the funds (20%) to them. Besides this there are also few inves tors who believes that financial advisors/brokers and have limited knowledge (17 .84%) about different mutual fund schemes. Thus it is very much clear from this study that the financial advisors and brokers are least bothered about the inter est of the investors rather than they are more interested in their incentives. T he chi square values as shown in table 11 reveals that the investors perception a bout financial advisors/brokers of the mutual funds is insignificant at 5% level of significance which explains that no significant differences were found among the demographic factors of investors with regard to their preference about fina ncial advisors/brokers. Table 11 Perception about financial advisors/brokers of mutual funds (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 12 .362 Not sig Age 12 .193 Not sig Occupation 16 .639 Not sig Annual family income 12 .264 Not sig ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 26 www.zenithresearch.org.in MAIN OBJECTIVE BEHIND INVESTING IN SYSTEMATIC INVESTMENT PLAN (SIP) Nowadays inv esting through SIP is treated as a very fruitful route of making investment in m utual funds. SIP is a method of investing a fix sum regularly in the mutual fund s. It is very similar to the regular saving schemes like recurring deposits. The study shows that a large proportion of the respondents is aware of the Systemat ic Investment Plan (SIP). Besides this for majority of investors the main object ive behind investing in SIP (Systematic Investment Plan) is the regular investme nt (40.36%) of the funds followed by regular savings (38.01%). However the least preferred objective of the investors behind their investment in SIP is convenie nce (21.63%). This trend is seen in case of all the categories i.e. on the basis of age, qualification, occupation and annual family income of the respondents.

According to table 12 the chi square values shows insignificant relationship whi ch means that all the demographic variables i.e. qualification, age, occupation and annual family income have no significant relationship with the respondents ma in objective behind investing in SIP. Table 12 Main objective behind investing i n SIP (Chi Square Results) Demographic Factors d.f Chi Square value Sig or Not Sig Qualification 6 .229 Not sig Age 6 .126 Not sig Occupation 8 .535 Not sig Annual family income 6 .128 Not sig SUGGESTIONS A special column has been provided in the questionnaire for suggesti ons from the investors. Many investors took keen interest in providing valuable suggestions. On the basis of the findings of the study the important suggestions are listed below: Mostly the investors are more interested in those schemes that can easily provid e them liquidity. The suggestion makers have emphasized that the fund managers s hould invest the investors money in secure income related schemes so that liquidi ty must be ensured. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 27 www.zenithresearch.org.in Generally the offer documents and reports of various mutual fund companies are n ot free from technicalities. So the investors opinioned that the information con tained in the offer documents should be simple and free of technicalities so tha t a lay investor can easily understand them. The periodical statements of mutual fund companies are considered as a very impo rtant source of information to the investors. So it is very essential that these periodical statements should contain all the relevant information in a compiled form and managers must ensure that these statements should reach the investors in time. Mostly a lay person doesnt have enough knowledge to invest in mutual funds. So th ey depend on the fund managers who are experts in managing efficient portfolios. The fund managers should be the person of integrity and financial experts. They should have clear cut knowledge of when to invest and in which securities to in vest .They should mobilize the investors savings in such a way that they can get maximum benefits out of them. Due to changing scenario, the need for online trading of securities is felt. Eff orts should be made to promote or enhance online trading of mutual funds. This w ill save time and cost. On a click of button investors get all the required info rmation quickly. They can easily sell or purchase any number of funds whenever t hey want. Some investors suggested that the fund values of fund should be informed to the investors through SMS on fortnightly basis. This will help the investors in keep ing themselves up to date with the latest information and latest NAVs of differen

t funds. Winning the investors confidence and protecting their rights is the common object ive of all the mutual fund companies. In this context the AMFI and SEBI should m ake strict rules and regulations for safeguarding the interests of the common in vestors. If these rules are not being followed properly, a provision of punishme nt should be made who violates the same. Some investors complained that the brokers/sub brokers are more interested in th eir incentives provided to them by the companies for selling more schemes. So it is very necessary that they should perform their duties with full care and dili gence and should not misguide the investors. The brokers, sub brokers and agents should provide right and timely information to the investors. They must keep th emselves aware of the latest happenings in the market for the sake of investors. Steps should be taken to boost the confidence and morale of the investors. This can be done through appropriate communication and by educating investors to inve st in mutual funds. Timely and right information should be provided to them by d ifferent communication modes so that they come to know about the latest trends i n the market. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 28 www.zenithresearch.org.in CONCLUSION Today a lot of investment opportunities are available to the investor s in the financial markets. Investors can invest in corporate bonds, debentures, bank deposits, post office schemes etc. But nowadays investors opt for portfoli o managers to invest money on their behalf. These portfolio managers are experts in stock market operations and invest the money in such a way that the investor s would get minimum assured returns. Today many institutions are busy in providi ng wealth management services to the investors. But these services are very cost ly. Thus in order to help the investors mutual funds provide a protective shed to the small and big investors. The present study analyses the mutual fund investm ents in relation to investors behavior. Investors opinion and perception has been studied relating to various issues like type of mutual fund scheme, main objecti ve behind investing in mutual fund scheme, level of satisfaction, role of financ ial advisors and brokers, investors opinion relating to factors that attract them to invest in mutual funds, sources of information, deficiencies in the services provided by the mutual fund managers, challenges before the Indian mutual fund industry etc. This study is very important in order to judge the investors behavi or in a market like India, where the competition increases day by day due to the entry of large number of players with different financial strengths and strateg ies. The present investigation outlined that mostly the investors have positive approach towards investing in mutual funds. In order to maintain their confidenc e in mutual funds they should be provided with timely information relating to di fferent trends in the mutual fund industry. For achieving heights in the financi al sector, the mutual fund companies should formulate the strategies in such a w ay that helps in fulfilling the investors expectations. Today the main task befor e mutual fund industry is to convert the potential investors into the reality in vestors. New and more innovative schemes should be launched from time to time so that investors confidence should be maintained. All this will lead to the overal l growth and development of the mutual fund industry. REFERENCES Aggarwal, N and Gupta, M (2007) Performance of Mutual Funds in India: An Empirica l Study, The Icfai Journal of Applied Finance, Vol.13, No.9, pp.5-16. Bansal, L.K (1996), Mutual Funds Management and Working Deep and Deep publications , New Delhi, pp 34-39. ZENITH International Journal of Multidisciplinary Research Vol.1 Issue 1, May 2011, ISSN 2231 5780 29 www.zenithresearch.org.in Bharma, S (2007), Myths Of Systematic Investment Plan, Mutual Funds In India (ed.b y Dutta Abhijit), Wisdom Publications, New Delhi, pp.91-92. Bodla, B S and Bishn

oi, S (2008), Emerging Trends of Mutual Funds in India: A Study across Category a nd type of schemes, Journal of Indian Management and Strategy, Vol.13, p-15. Chan dra, P (1995) The Investment Game: How to Win? Tata Mc Graw Hill, New Delhi Gilkar , N.A (2002), Investors Perceptions of Mutual Funds: An Investigation, The Busines s Review, Vol.9, No.1, pp 26-35. Gupta, A (2000)," Investment Performance of Ind ian Mutual Funds: An Empirical Study", Finance India, Vol.XIV, No.3, pp.833-866. Mishra (1987) The Dawn of Mutual Funds: Exciting Investment Opportunities Ahead J ournal of commerce, September, pp.12-18. Panda, T.K and Tripathy, N.P (2001),"Cu stomers Orientation In Designing Mutual Fund Products",The ICFAI Journal Of Appl ied Finance, Vol.7, No.4, pp.20-28. Pasricha, J.S and Jain, S (2005) Performance Evaluation of Mutual Funds, Punjab Journal of Business Studies, Vol.1, No.1, pp.1 02-110. Singh, Y.P and Vanita (2002), Mutual Funds Investors Perceptions and Pref rences: A Survey, The Indian Journal Of Commerce, Vo55, P-8. Sudalaimuthu, S and K umar, P S (2008), A Study On Investors Perceptions Towards Mutual Fund Investment s, Management Trends, Vol.5, No.1, p-106. Tripathy, N.P (2004) An Empirical Analys is of Performance Evaluation of Mutual Funds In India: A Study of Equity Linked Saving Schemes, The Icfai Journal of Applied Finance, Vol.10, No.7, pp.36-54. Van niarajan, T et.al (2008)"Factors Leading To Mutual Funds Purchases; A customer s egment Analysis, Indian Journal of Accounting, Vol. XXXVII(2), PP.66-76.