TOPIC NAME:

A STUDY ON INVESTORS PERCEPTION TOWARDS

MUTUAL FUNDS IN KOTAK MAHINDRA BANK IN
HYDERABAD

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 ABSTRACT

Investments are both important and useful in the context of present day conditions of the
economy. It is a common saying "One paisa saved is one paisa earned". Mutual funds in
Kotak Mahindra bank is a roller coaster ride and is full of twists and turns. Mutual fund
policies are to safeguard against the uncertainties of investors. The mutual funds principle has
come to be more and more used and useful in modern affairs. Not only does it serve the ends
of individuals, or groups, it tends to pervade and to transform the modern social order, too. At
this juncture, the extent to which Mutual funds goes to attract investors has been undertaken
in this study. The analysis of the data evidenced that investments were not determined by
either income or education of the respondents, instead they understood the necessity of
investment in mutual funds for their future requirements, which is said to be forced
investment. So, it has been concluded that making a sound investment decision requires both
knowledge and skill apart from other factors.

Hyderabad is a country where the average selling of mutual funds in kotak Mahindra bank
policies is still lower than many western and Asian countries, the hyderabad mutual funds
market is looking very prospective to many multinational and Hyderabad funds companies to
expand their business and market share. Before the opening of the Hyderabad market for
Multinational Mutual funds Companies, Mutual funds in hyderabad was the only company
which dealt in funds and after the opening of this sector to other private companies, all the
world leaders of mutual funds have started their operations in hyderabad. With their world
market experience and network, these companies have offered many good schemes to lure all
types of Hyderabad consumers but unfortunately failed to get the major share of the market.
Still is the biggest player in the mutual funds market with approx. 65% market share. But
why Hyderabad consumers do not trust many companies and why the majority population of
kotak Mahindra bank in hyderabad does not have any mutual fund policy or what factors play
a major role in the buying behaviour of consumers towards mutual funds policies. 

Mutual funds is related to the protection of the economic values of the assets. Every human
being has the tendency to save to protect himself from risks or events in the future. fund is
one form of savings where people try to themselves against risks or uncertainties of the
future. Too many people in this country are not in employment and working for too much

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longer guarantees income security. Several million are part-time, self-employed and low-
earning workers living under pitiable circumstances where there is no security cover against
risk. Hence, social security, protection of the family, economic empowerment for the poor
and disadvantaged are integral part of the right to life. Mutual funds companies tend to have
widely diversified portfolios and to focus on high-quality investments; thus, they were
relatively well protected initially during the period of financial turbulence, when asset value
declines were concentrated in lower-quality and higher-risk assets.

Life is a risk. Being a social animal and risk averse, man always tries to reduce risk. An age-
old method process of sharing risk Economic cooperation led to the development of the
concept of funds. Mutual fund can be definite as a legal contract between two parties
whereby one party called the mutual fund undertakes to pay a fixed amount of money on the
occurrence of a particular event, which may be positive or doubtful. The primary data were
together from respondents through a structured survey and was taken for analysing. The
Percentage study method is used to analyse and interpret the collected data and algebraic
tools such as interval estimation, chi-square test, and the Karl Pearson method are used to
analyse and interpret the data. The result and the finale of this study is made based on the
opinion given by the respondents.

TABLE OF CONTENT

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 PARTICULARS PAGE NUMBER

ABSTRACT 4-5

INTRODUCTION 7–9

MEANING OF MUTUAL FUNDS 10 - 11

MUTUAL FUNDS OF 12 - 29
HYDERABAD

HYDERABAD MUTUAL FUND 30 - 37

SECTOR

MUTUAL FUNDS AN 38 - 47
INVESTMENT

LITERATURE REVIEW 48 - 53

CONCLUSION 54 - 55

REFERENCES 56 - 60

APPENDIX 61 - 63

INTRODUCTION

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Mutual fund in kotak Mahindra bank is a cooperative device to spread the loss caused by a
particular risk over a number of people who are expressed to it and who agree to ensure
themselves against that risk. It is also a social device that accumulates funds to meet the
uncertain losses arising from a certain risk to a person insured against the risk. The process
Kotak Mahindra bank funds has evolved to safeguard the interests of people from uncertainty
by providing certainty of payment at a given contingency. The mutual fund principle has
come to be more and more used and useful in modern affairs. Not only does it serve the ends
of individuals, or of special groups of individuals, it tends to pervade and to transform the
modern social order, too. 

Life is full of risk and uncertainties. Since we are social human beings, we have certain
responsibilities too. Hyderabad Consumers have a big influence one motions and rationality
in their buying decisions. They believe in the future rather than the present and the desire to
have a better and secure future, in this direction mutual fund services have its own value in
terms of minimizing risk and uncertainties. The Hyderabad economy is developing and
having a huge middleclass, societal status and salaried people. Their money value for current
needs and future desires here the pendulum moves to another side which generates the
reasons behind holding a policy. Here the attempt has been made in this research paper to
study buying behaviour of consumers towards mutual fund services. 

The origin of fund is lost in antiquity. The earliest traces of fund in the ancient world are
found in the form of marine trade loans or carriers’ contracts which include an element of
mutual fund. The evidence is on record that arrangements embodying the idea of funds were
made in Hyderabad at quite an early period. After marine funds, fire fund developed in
present form.

The mutual fund industry in Hyderabad Kotak Mahindra bank has seen an array of changes in
the past decade. The economic scenario which emerged after globalization, privatization and

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liberalization has thrown a new challenge before the fund sector. Mutual fund is a protection
against economic losses arising due to an unexpected event. In any type of funds coverage,
claim settlement plays a very important part. Claim settlement is an integral part of the funds
business.

A claim settlement is an agreement between two or more parties to settle a legal claim with
payment and other terms. The most common form of claim settlement involves fund claims.
An fund claim is the only way to officially apply for benefits under an mutual fund policy.
The customers know well about their rights and remedies, availability of various grievance
redress mechanisms, progressive decontrol...The present study attempts at customer
perception on claim settlement services in mutual funds companies. Kotak Mahindra bank in
Mutual funds of Hyderabad is still the leading mutual fund provider. Due to the strong
management framework of claims settlement. The funds industry in hyderabad nowadays has
taken a giant shape, especially after privatization and the introduction of the funds regulatory
and development authority (IRDA). The claim intimation should consist of basic information
such as policy number, name of the insured, death date, cause of death, name of the claimant
etc. As the regulation 8 of the IRDA Regulation, 2002. The funds is required to settle a claim
with 30day of receipts of all documents including clarification sought by the funders. If the
claim requires further investigation, the funder has to complete its procedure within 6 months
of receiving the written intimation of the claim.

The payment by the funder to the insured on the date of maturity is called maturity payment.
The amount payable at the time of the maturity includes a sum assured and bonus/incentives,
and it is to be returned to the office along with original policy document, ID proof, age proof
if age is not already submitted, and any copy of climates’ Kotak Mahindra bank book
cancelled cheque.

Mutual fund has become a part of human life. It is not restricted to life, marine or fire only,
but has spread over to almost every sphere of human activity. For example, a singer can

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funder his or her throat, a dancer her legs and an actress her nails etc. So the scope of mutual
fund is unlimited in Kotak Mahindra bank. The significance of funds is not only limited to an
individual or to a family alone, but it has spread over the entire nervous system of a business
or say the country as a whole. 

Life is filled with risk. Being a social creature and risk averse, man always tries to decrease
risk. An age-old technique of sharing of risk during economic cooperation led to the
development of the concept of funders. Mutual fund can be definite as a legal contract
between two parties where by one party calls the funder and undertakes to pay a fixed amount
of money on the happening of an exacting event, which may be certain or doubtful. The other
party, called the fundered, pays in exchange for a fixed sum known as a premium. The
funders are also known as assurer, or underwriter, and assured, respectively. The essay,
which embodies the contract, is called the policy. Mutual fund is one of the major risk
management devices available to people. The first name funds‟ stands for a mechanism to
protect against risks, exposure or dangers to life and assets.

Meaning of Mutual fund

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Mutual fund may exist described as a social device to reduce or eliminate the risk of loss of
life and property. fund is a communal bearing of risk. Cover spreads the risks and losses of
few people among a large number of people as people prefer small fixed liability instead of
big uncertain plus changing legal responsibility cover is a scheme of financial cooperation by
which members of the community share the unavoidable risks.

Types of Mutual fund Contract

 mutual fund

 General mutual fund

Mutual fund

Mutual fund is a contract intended for payment of money to the person assured (or to the
person entitled to receive the same) on the occurrence of an event funders against. Usually,
the contract provides for – payment of an amount that may be on the date of maturity or at a
specified periodic interval or after death, if it occurs earlier. Periodical payment of cover
premium can be done by the assured to the company who provides the insurance.

General Mutual fund

General (non-mutual) mutual fund provides Hyderabad and the motor funds industry.
Moreover, due to third party liability claims have substantially contributed in the direction of
underwriting losses. 

Types of Mutual funds

Mutual Fund schemes can be classified into different categories and subcategories based on
their investment objectives or their maturity periods.

Mutual Fund schemes can be classified into three categories based on their maturity periods.

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Open-ended funds : An open-ended fund or scheme is one that is available for subscriptions
and redemptions on a continuous basis. Investors can conveniently buy and sell units at Net
Asset Value (NAV) related prices which are declared on a daily basis.

Close-ended funds : A close-ended fund or scheme has a stipulated maturity period which can
range from a few months to a few years, e.g. 6 months, 5 years or 7 years. i.e. fund is open
for subscription only during a specified period at the time of launch of the scheme which is
the New Fund Offer (NFO). Investors can invest in the scheme at the time of the NFO and
thereafter, they can buy or sell the units of the scheme on the stock exchanges where the units
have to be mandatorily listed.

Interval funds : These schemes are a cross between an open-ended and a close-ended
structure. These schemes are open for both purchase and redemption during pre-specified
intervals (viz. monthly, quarterly, annually etc.) at the prevailing NAV based prices.

Interval funds are very similar to close-ended funds, but differ on the following points:-

• They are not required to be listed on the stock exchanges, as they have an in-built
redemption window.

• They can make fresh issue of units during the specified interval period, at the prevailing
NAV based prices.

• Maturity period is not defined.

Exchange Traded Funds:

Exchange Traded Funds or ETFs are essentially Index Funds that are listed and traded on
exchanges like stocks. They enable investors to gain broad exposure to indices on stock
markets in India and in some cases in other countries as well. These indices, if based on
certain specific sectors/themes would thus provide exposure to such sectors with relative
ease, on a real-time basis and at a lower cost than many other forms of investing.

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For example there are ETFs that track S&P CNX Nifty, BSE Sensex etc. Gold ETF are
mutual fund schemes where the underlying investment is in physical gold.

Fund of Funds : Fund of Funds (FoF) as the name suggests are schemes which invest in other
mutual fund schemes. The concept is popular in markets where there are number of mutual
fund offerings and choosing a suitable scheme according to one’s objective is tough. Just as a
mutual fund scheme

MUTUAL FUND OF HYDERABAD

This study is an attempt at customer perception on mutual fund policies with reference to
Hyderabad. The present study observes the changing efficiency levels of claim management
in view of the changing scenario of the funds sector.

Objectives of the Study:

 To identify the factors a selecting investors perception and the selection of public and
private sector method funds
 To test whether the choice of public and private sector mutual fund is independent of
demographer profile
 To study inventors perception relating to liquidity and investment decisions
 To Study the financial awareness of Mutual fund investment
 To study the effect of gender difference on investment decision

 Methodology and Data sources;

Mainly based on the primary data and is behavioral investor. Primary data was collected from
quaternaries 500 individual investor 250 each for public and private sector inventors, who
were selected from pelangana region, which selectors investors

Data collection Data collection includes both primary and secondary data are used.

Primary Data collection:-Primary data is collected by a survey designing a structured

questionnaire which is distributed to the selected claim holders. The Questionnaire mainly

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 includes two types of questions and existing employees of mutual fund, funders customers
who have made claims for their mutual fund policies.

Secondary Data Collection:-The secondary data is collected from the organization websites,
journals, textbooks etc... Most of the data is collected from books and some of the data is
gathered from websites.

Sampling method: Convenience sampling method

Limitation of the Study

Data for the study will be collected from primary sources and secondary sources. The area of
study is limited to Hyderabad. The selection of people for the questionnaire will be done on
the basis of the convenience sampling method. Here, some people are not aware of life
mutual fund policies, so they cannot give any positive feedback regarding funds policies. The
research was confined to the mutual fund of hyderabad from the Ongole and Markapur
branch offices at various branches located within the district.

Growth and Development of Mutual fund in Hyderabad

The Mutual fund Hyderabad in Kotak Mahindra bank regions 5 with its central office and 8
zonal offices at Mumbai, Calcutta, Delhi, Chennai, Kanpur, Bhopal, and Patna operates
through 113 divisional offices including one salary saving scheme (SSS) division at Mumbai,
2048 branch offices and 1,401 satellite offices and Mini office 1,240 and Employees1,
14,773and agents 10, 61,560 in the year of 2016.

Table: 1 Details about Mutual fund in Hyderabad

Zonaloffice 8
Divisionaloffice 113
Branchoffice 2,048
Satelliteoffice 1,401
Minioffice 1,240
Employees 1,14,773

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 Table:2Growth and Development of Mutual fund in Hyderabad

sno REGION LICZONE NO.OFDI ZONAL STATES

VISION HEADQU
ARTER
1 EASTER EZ(48691) 12 Kolkata WestBengal,Assam,Meghalaya,Sikkim,Aru
NREGIO nachalPradesh,Nagaland,Tripura,Mizoram
N ,Manipur&AndamanNicobar(UT)
ECZ(2941) 11 Patna
Bihar,Jharkhand,Odisha
2 SOUTHERN SZ(11124) 13 Chennai Tamil Nadu, Kerala, Pondicherry
REGIO (UT) &Lakshadweep(UT)
N(1112
41)
3 SOUTHC SCZ(9037) 17 Hyderabad Telangana,AndhraPradesh&Karnataka
ENTRAL
REGION
(90377)
4 WESTER WZ(88994 ) 22 Mumbai Maharashtra, Gujarat, Goa, Dadra
NREGIO &Nagarhaweli(UT),&Daman&Diu(U
N T)
(88994)
5 NORTHER NZ(70958) 17 Delhi Delhi,Haryana,Rajasthan,Punjab,
NREGION Himachal Pradesh, Jammu &
(124828 ) Kashmir &Chandigarh(UT)
NCZ(26809) 12 Kanpur UttarPradesh,Uttaranchal
8 Bhopal MadhyaPradesh,Chhattisgarh
CZ(27061)
TOTAL 112

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Apart from on-line Kiosks and IVRS, Info Centers have been commissioned in Mumbai,
Ahmadabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi, Pune and many other
cities. With a vision of providing easy access to its policyholders, Mutual fund has launched
its SATELLITE SAMPARK offices. Mutual fund Gross Investments during the 12 th Five
Year Plan Periods (2012-2017) were 10, 86,720 (Rs.in croc).

Following are the key benefits of investing in mutual funds:

• Professional Management: Mutual funds provide the benefit of professional management as

people’s money is managed by experienced fund managers. Investors, who do not have time,
inclination and the know-how to manage their investments, can look towards mutual funds as
an alternative. It is inexpensive and is ideal for a small ticket investor.

• Economies of scale: The way mutual funds are structured gives it a natural advantage. The
“pooled” money from a number of investors ensures that mutual funds enjoy economies of
scale; it is cheaper compared to investing directly in the capital markets which involves
higher charges. This also allows retail investors access to high entry level markets like real
estate, and also there is a greater control over costs.

• Diversification: Mutual funds provide investors with the benefit of diversification across
different companies and sectors. Diversification in simple terms means to spread your
portfolio across different instruments, sectors, industries, companies and countries so that the
overall portfolio is relatively safeguarded from downturns in one or more sectors, companies
or countries. Since small investors do not have enough money to make meaningful
investments across different assets, a mutual fund does the job for them.

• Liquidity: Open ended mutual funds provide easy liquidity and investors can buy or sell
units anytime, at the prevailing NAV based prices. Close-ended schemes are listed on a stock
exchange where investors can redeem their units at the prevailing market price. Interval funds
which are a cross between a close-ended and an open ended structure also provide periodic
liquidity option to its investors.

• Flexibility: There are a lot of features in a regular mutual fund scheme, which imparts
flexibility to the scheme. An investor can opt for a Systematic Investment Plan (SIP),
Systematic Withdrawal Plan (SWP), Systematic Transfer Plan (STP)etc. to plan his cash flow

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requirements as per his convenience. The wide range of schemes being launched in
Hyderabad by different mutual funds also provides an added flexibility to the investor to
build his portfolio accordingly.

• Convenience: Mutual fund companies offer convenient routes to investing in their schemes.
Investors can invest through the internet or mobile phone in addition to the conventional
option of physically filling up an application form and submitting it. Further, as bank details
are required to be submitted at the time of investment, redemptions become very convenient
as an investor directly receives the proceeds in the bank account.

• Transparency: The mutual fund industry in India works on a very transparent basis, and
various kind of information is available to their investors through fact sheets, offer
documents, annual reports etc.

• Well Regulated: Hyderabad Mutual Fund industry is well regulated by the Securities and
Exchange Board of Hyderabad. This helps to instill confidence and provides comfort to the
investors. The regulatory environment in hyderabad is quite healthy, and ensures
transparency in the processes and transactions. The best practices adopted by the industry in
Hyderbad have helped them win investors’ confidence over the years. The ease and
convenience which mutual funds offer and the different variety of schemes made available to
the investors creates popularity for mutual funds, which cuts across investor classes and
creates a favourable appeal

Mutual fund Penetration and Density in Hyderabad

The measure of Mutual fund penetration and density reflects the level of development of the
funders sector in a country. While mutual fund penetration is measured as the percentage of
mutual fund premiums to GDP, mutual fund density is calculated as the ratio of premium to
population (per capita premium). During the first decade of mutual fund sector liberalization,
the sector has reported a consistent increase in mutual fund penetration from 4.8 per cent in
2006 to 5.20 per cent in 2009. Since then, the level of penetration has declining. However,
there was a slight increase in 2015, reaching 3.44 percent compared to 3.3 percent in 2014.

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 A similar trend in the level of industry density, which reached the maximum of USD 64.4 in
the year 2010 from the level of USD 11.5 in 2001. During the year under review 2015, the
industry density was USD 54.7.

The mutual fund density of the funds kotak Mahindra bank business has gone up from USD
33.2 in 2006 to the peak at USD 55.7 in 2010. During 2015, the level of mutual fund density
was USD 43.2. Similarly, the mutual fund penetration surged from 4.1 per cent in 2006 to
4.60 percent in 2009. Since then, it has exhibited a declining trend. However, there was a
slight increase in 2015, reaching 2.72 percent in 2015 when compared to 2.6% in 2014. Over
the last 10 years, the penetration of the non mutual fund sector in the country has remained
steady in the range of 0.5-0.8 per cent. However, its density has gone up from USD 5.2 in
2006 to USD 11.5 in 2015.

Table: 3 Mutual fund Penetration and Density in Hyderabad

Year's Life Non-Life Total

Density Penetration Density Penetration Density Penetration
(USD (percentage) (USD (percentage) (USD (percentage)
2006-07 33.2 4.1 5.2 0.6 38.4 4.8
2007-08 40.4 4 6.2 0.6 46.6 4.7
2008-09 41.2 4 6.2 0.6 47.4 4.6
2009-10 47.7 4.6 6.7 0.6 54.3 5.2
2010-11 55.7 4.4 8.7 0.71 64.4 5.1
2011-12 49 3.4 10 0.7 59 4.1
2012-13 42.7 3.17 10.5 0.78 53.2 3.96
2013-14 41 3.1 11 0.8 52 3.9
2014-15 44 2.6 11 0.7 55 3.3
2015-16 43.2 2.72 11.5 0.72 54.7 3.44

(Source: Swiss Re, Sigma No. 3/2016)

* Mutual fund density is measured as the ratio of premiums (in USD) to total population.

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 * Mutual fund penetration is measured as the ratio of premiums.

* The data of mutual fund penetration is available with rounding off to one decimal from
2006.

Source: Swiss Re, Various Issues.

Graph: 1 Mutual fund Penetration

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4
2 Life
0 Non-LifeIndustry

 Graph: 2 Mutual fund Density

70
60
50
40
30 Life
20 Non-LifeIndustry
10
0

Premium underwritten:

The Mutual fund industry recorded a premium income of '366943.23 crore during 2015-16 as
against' 328102 crore in the previous financial year, registering growth of 11.84 per cent
(4.39 percent growth in the previous year). While private sector funders posted 13.64 per cent

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 growth (14.32 percent growth in the previous year) in their premium income, mutual fund
recorded 11.17 per cent growth (1.15percent growth in the previous year). Unit-linked
products (ULIPs) registered a growth of 12.62 percent premium from '41617.80crore in
2014-15 to' 46871.58 crore in 2015-16. On the other hand, the growth in premiums from
traditional products was at 11.72 per cent, with a premium of '320071.65 crore as against'
286484.20 crore in 2014-15. Accordingly, the share of unit-linked products in total premium
increased to 12.77 per cent in 2015-16 as against 12.68 per cent in 2014-15.

Table: 4Premiumunderwritten:

Funds 2011-12 2012-13 2013-14 2014-15 2015-16

Regularpremium(1)
40194.54 30313.52 31904.49 23112.20 23829.38
Mutual fund
(10.83) (-24.58) (5.25) (-27.56) (3.10)
22040.78 21877.15 20497.51 23901.76 27149.32
Privatesector
(-20.37) (-0.74) (-4.83) (16.61) (13.59)
62235.32 52190.67 52402.00 47013.96 50978.70
Total
(-2.67) (-16.14) (1.03) (-10.28) (8.43)
Singlepremium(2)
41667.71 46297.98 58904.30 55395.51 74062.13
Mutual fund
(-17.89) (11.11) (27.23) (-5.96) (33.70)
PrivateSector
10039.14 8872.43 9018.92 10920.05 13821.47
(-14.24) (-11.62) (-2.08) (20.08) (26.57)

87883.60
51706.85 55170.41 67923.22 66315.56
Total (32.52)
(-17.21) (6.70) (22.59) (-2.37)

FirstYearPremium(3=(1+2))
Mutual fund
81862.25 76611.50 90808.79 78507.71 97891.51
(-5.92) (-6.41) (18.53) 13.55) (-(24.69)

PrivateSector 32079.92 30749.58 29516.43 34821.81 40970.79

(-18.55) (-4.15) (-4.01) (17.97) (17.66)
Total 113942.17 107361.08 120325.22 113329.52 138862.30
(-9.85) (-5.78) (12.08) (-5.81) (22.53)
RenewalPremium(4)

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 121027.03 132192.08 146133.51 161159.94 168552.70
Mutual fund
(3.92) (9.23) (10.55) (10.28) (4.59)

PrivateSector 52102.91 47649.33 47842.93 59528.23

53612.54
(6.81) (-8.55) (0.38) (11.03)
(12.06)
173129.94 179841.41 193976.44 214772.48 228080.93
Total
(4.77) (3.88) (7.85) (10.72) (6.20)
TotalPremium(5=(3+4)=(1+2+4))
Mutual fund 202889.28 208803.58 236942.30 239667.65 266444.21
(-0.29) (2.92) (13.48) (1.15) (11.17)
PrivateSector. 84182.83 78398.91 77359.36 88434.35 10049902
(-4.52) (-6.87) (-1.33) (14.32) (13.64)
Total 287072.11 287202.49 314301.66 328102.00 366943.23
(-1.57) (0.05) (9.44) (4.39) (11.84)

Note: Figures in brackets indicate the growth (In percent) over the previous year.

Graph:3Regular premium

70000
60000
50000
2011-12
40000
2012-13
30000
2013-14
20000
2014-15
10000
2015-16
0

Mutual fundPrivate sectorTotal

The regular premium registered 8.43 percent growth in 2015-16, as against a 10.28 per cent
decline in 2014-15. The private funders registered a growth of 13.59 per cent (16.61 per cent
growth in 201415), while Mutual fund registered a growth of 3.10 per cent in the regular
premium (27.56 per cent decline in 2014-15).

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 Graph:4Single premium

100000
90000
80000
70000 2011-12
60000 2012-13
50000 2013-14
40000 2014-15
30000 2015-16
20000
10000
0
LIC Privatesector Total

Further bifurcation of the first year premium indicates that single premium income received
by the Mutual fund recorded a positive growth of 32.52 percent during 2015-16 (2.37per cent
decline in2014-15). Single premium products continue to play a major role for mutual fund as
they contributed 27.80 percent of fund’s total premium income (23.11 per cent in 2014-15).
In comparison, the contribution of single premium income to total premium income during
2015-16 was 13.75 percent for private mutual fund companies (12.35 percent in 2014-15).

Graph:5First Year Premium

160000
140000
120000
100000
80000
60000 2011-12
40000 2012-13
20000 2013-14
0 2014-15
2015-16

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Mutual fundPrivate sectorTotal
 The first year premium indicates that income received by the Mutual fund in Kotak Mahindra
bank recorded a positive growth of 22.53 percent during 2015-16 (-5.81 percent decline
in2014-15). First year premium products continue to play a major role for mutual fund as
they contributed 27.80 percent of fund’s total premium income (18.53 percent in 2013-14). In
comparison, the contribution of premium income in total premium income during 2015-16
was 22.53 percent for private mutual fund companies (17.26 percent in 2014-15).

Graph:6Renewal Premium

250000
200000
150000 2011-12
100000 2012-13
50000 2013-14
0 2014-15
2015-16

Mutual fundPrivate SectorTotal

While renewal premium accounted for 62.16 per cent (65.46 per cent in 2014-15) of the total
premium received by the mutual fund, first year premium contributed the remaining 37.84
per cent (34.54 percent in 2014-15). During 2015-16, the growth in renewal premium was
6.20 per cent (10.72per cent in 2014-15). First year premium registered a growth of 22.53 per
cent in comparison to a decline of 5.81 per cent during 2014-15.

Death Claims for Mutual fund Business:

Individual Mutual Fund

In the year 2015-16, the Mutual fund companies had settled 8.54 lakh claims on individual
policies, with a total payout of `12,636.66 crore. The number of claims repudiated/rejected
was 15,157 for an amount of '736.51 crore. The number of claims pending at the year-end
was 6,031 and the amount involved was' 444.23 crore. Of these, 1189 claims were pending
for more than one year and 4,842 claims were pending for less than one year.

22
 The claim settlement ratio of Mutual fund was better than that of the private mutual fund. The
settlement ratio of Mutual fund had increased to 98.33 percent during the year 2015-16 when
compared to 98.19 percent during the previous year. The percentage of repudiations has come
down to 0.98 percent in 2015-16 compared to 1.15 percent in the previous year.

For private funders, the settlement ratio had gone up by 2.08% to 91.48 percent during the
financial year 2015-16 when compared to 89.40 percent during the previous year. The
percentage of repudiations has come down to 6.67% in the year 2015-16 compared to the
7.78% percent in the previous year.

Table: 5 Individual death claims of Mutual fund during 2015-16

Mutual Total Claimsp Claims Claims Claimp Break up claims

fund Claims ending repudiated/ written endinga pendingduration wise
rejected back t (Policies)

<3month 3<6 6<1 >1

endof
month year year
year
Mutual 100.00 91.48 6.67 0.00 1.85 76.24 10.20 3.87 9.68
fund
Private
100.00 98.33 0.98 0.17 0.51 17.71 20.34 36.82 25.14
Sector

Industry
100.00 97.43 1.73 0.15 0.69 38.25 16.78 25.25 19.71
Total

The industry’s settlement ratio had slightly increased to 97.43 percent in 2015-16
from 96.97percent in 2014-15 and the repudiation ratio had decreased to 1.73%
compared to the2.08percentin 2014-15.

Graph:7 Individual death claims

90
80
70
60
50 <3month3<6month
40 6<1year
30 >1year
20
10 23
0

Mutual fundPrivate sectorTotal

 Group Mutual fund:

During 2015-16, the total intimated claims were 5, 45,337 while 14,388 claims were pending
at the beginning of the year. Out of these, the mutual fund industry had settled a total of 5,
28,638 (96.94% of the total claims) claims. 96.28% of the settled claims were settled within
30 days of intimation. 0.01% of the claims took more than a year to get settled.

Group Death claims pending for more than one year with respect to the Future General
Mutual fund Company (12414) as at 31.03.2016 accounts for 96.23 per cent of total mutual
Industry’s Group Claims pending for more than one year (12900) as at 31.03.2016. Barring
Future Generali’s pending claims, pending claims of all other funders put together comes at
486. Out of the 12414 pending group death claims of Future General mutual fund Company,
12371 are under litigation and are sub-juiced.

Table: 6 Group death claims of Mutual fund during 2015-16

Mutual TotalC Claims Claimsrepu Claims Claimp Break up claims

fund laims pending diated/Reje written endinga pendingduration wise
cted back t (Policies)
<3month 3<6 6<1 >1
endof
month year year
year
Mutual 100.00 94.65 0.93 0.00 4.42 4.10 0.69 0.36 94.85
fund
Private
100.00 99.69 0.04 0.00 0.27 18.24 7.14 10.64 63.98
Sector
Industry
100.00 96.94 0.53 0.00 2.53 4.77 1.00 0.85 93.38
Total

While mutual fund settled 99.69 percent of the claims, the private mutual fund paid 94.65
percent of all claims. The industry repudiated 0.53 percent of the claims, written back zero
percent of the claims and the remaining 2.53 percent of the claims were pending as at
31.3.2016.

24
 Graph: 8 Group death claims

100
80
<3month3<6month
60
6<1year
40
>1year
20
0
Mutual fundPrivate SectorTotal

Expansion of Offices

The decreasing trend of the number of mutual fund in Kotak Mahindra bank offices (which
had continued until 201213) had reverted from 2013-14 and there was an funds in 2015-16 to
11071 from 11033 in the previous year.

Table: 7 Number of funds offices (As on 31st March)

Fund 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Mutual fund 2301 2522 3030 3250 3371 3455 3526 4839 4877 4892
Private sector 3072 6391 8785 8768 8175 7712 6759 6193 6156 6179

Industry 5375 8913 11815 12018 11546 11167 10285 11032 11033 11071

Note: Data collected from mutual fund through a special return.

Office as defined under Section 64VC of the funds Act,

For similar data for 2001-2007, refer to the IRDA Annual report for 2007-08.

Graph:9Numberof mutual fund office sin graph

14000
12000
10000
8000 25
6000 Mutual fund
4000 PrivatesectorTotal
2000
 2007200820092010201120122013201420152016

 It is observed that the majority of offices of mutual fund are located in Kotak Mahindra bank
Semi-Urban towns which with a population of between 10,000 to 99,000. Around 49% of
mutual fund offices are located in these small towns. This fact remains similar for both the
private sector (38.4% of the offices in semi-urban towns) and public sector mutual fund
(61.5% of the offices in semi-urban towns). After the Semi-Urban towns, the majority of the
mutual fund offices, i.e. 31.8%, are located in urban towns with a population of between
1,00,000 to 9,99,999. This applies to both the private sector (35.2% of offices in urban towns)
and public sector mutual fund (27.6% of offices in urban towns).

Customer Perception on mutual fund policies, Claims, Schemes and Services 1). Have
you taken any mutual fund policies?

SNO. Opinion Respondents Inpercentage

1 Yes 65 65
2 No 35 35
Total 100 100%
When asked about mutual fund policies out of 100 respondents, the policy holder
Opinion for Yesare65 and Un-policy holder opinion 35 for No.

What is overall perception about Mutual fund of Hyderabad?

SNO. Opinion Respondents In percentage
1 Positive 78 78
2 Negative 22 22
Total 100 100%
When asked about overall perception about mutual fund of Hyderabad out of 100
respondents, Agents and Educator opinion forpositiveare78and 22 for Negative.

Under Delay in Claim Settlement Process?

SNO. Opinion Respondents In percentage
1 Yes 63 63
2 No 37 37
Total 100 100%

26
 When asked about Delay in Claim Settlement Process out of 100 respondents, Claim
settlement holder’sopinion forYesare63 and ClaimPending 37 for No.

Is mutual fund of Hyderabad is leading service provider in Mutual fund?

SNO. Opinion Respondents Inpercentage
1 Stronglyagree 58 58
2 StronglyDisagree 0 0
3 Agree 32 32
4 Disagree 10 10
Total 100 100%
When asked whether mutual fund of Hyderabad is leading service provider in mutual
fund, out of 100respondents, Agentsopinion for Strongly agree58,Policy holders
Agree are 32 and CustomersDisagree are10and Stronglydisagreeis 0.

Satisfaction level towards services offered by Mutual fund?

SNO. Opinion Respondents Inpercentage
1 Fullysatisfied 75 75
2 Partiallysatisfied 20 20
3 Notsatisfied 5 5
Total 100 100%

When asked about Satisfaction level towards services offered by mutual fund,out of
100 respondents Mutual fund Policy holders Opinion for Fully satisfied are
75,Agentts Partially satisfied are 20 and 5CustomersareNotsatisfied.

27
 Findings

 Mutual fund's in Kotak Mahindra bank Gross Investments during the 12th Five Year
Plan Periods (2012-2017) were 10, 86,720 (in croc).
 Under the Scheme of there is also a benefit of fundes Cover of '1 lac, provided by the
Government through General Insurance
 Under the Scheme of Premium per member is' 330/-for the year 2015-16, which is
reviewable annually. The benefit available is' 2 lakhs mutual fund cover on member’s
death due to any reason, payable to
 Overall perception of mutual fund in hyderabad Out of 100 respondents, opinions for
positive are 78 and 22 for
 Satisfaction level towards services offered by Mutual fund. Out of 100 respondents
Opinion for Fully satisfied is 75, Partially satisfied are 20 and 5 Not

Suggestions

 Mutual fund should provide better training to its agents and provide additional funds
to its development officers and policy

28
  The claim settlement process should be made fast and must not involve lengthy
decision making.
 Mutual fund policies should be updated regularly and it will help full growth of the
fund sector.
 The mutual fund companies which fail to claim settle would definitely attract less
 The Claim settlement strategy promotes customer loyalty as it helps to develop
customers

HYDERABAD MUTUAL FUND SECTOR:

The Following is a list of leading private mutual fund of hyderabad and their gross premium
statistics for June 2012, and June 2011:

Company FigureforJune2012inINRcro FigureforJune2011inINRcro

res res
RoyalSundaram 64.78 77.46
TataAIG 47.14 36.50
RelianceGeneralInsurance 80.45 79.03
IFFCOTokio 36.55 58.23
ICICILombard 348.98 423.54
BajajAllianz 136.20 109.84
HDFCErgo 143.86 123.40
Cholamandalam 87.21 51.71
FutureGenerali 32.29 37.30
UniversalSompo 17.57 12.22
BhartiAXA 66.30 39.33
SBI 1.99 1.45
L&T 3.94 0.10
L&T 3.94 0.10

29
 StarHealth&AlliedInsuranc 176.90 406.13
e
ApolloMunich 97.31 67.73

Objectives of the Study

1) Primary Objective

 To study investors’ perception of life insurance with special reference to max mutual fund

2) Secondary Objectives

 To identify the client's attitude towards max mutual fund.

 To identify the various factors for choosing a policy from max mutual fund.

To provide appropriate recommendation for the company.

 To develop and standardize a measure to evaluate investment pattern in mutual fund

 To evaluate the factors underlying consumer perception towards investment in mutual
fund policies.
 To compare the differences in consumer perception of male and female consumers.
 To open new vistas for further

RESEARCH METHODOLOGY

The Study: The study was exploratory in nature with a survey method being used to
complete the study.

Sampling Design Population:

The population included investors in the Gwalior region.

Sample frame:

30
Since the data was collected through personal contacts, the sample frames were the
individuals who are investing in mutual fund policies.

Sampling elements:

Individual respondents were the sampling elements.

Sampling Techniques:

A Purposive sampling technique was used to select the samples.

Sample Size:

The sample size was 150 respondents.

Tools Used for Data Collection

A self-designed questionnaire was used for the evaluation of factors affecting consumers’
perception towards funders. Data was collected on Likert’s type scale, where 1 stood for
minimum agreement and 7 stood for maximum agreement.

Tools Used for Data Analysis

Item to total correlation was applied to check the internal consistency of the questionnaire.
The measures were standardized through computation of reliability and validity. Factor
analysis was applied to identify the underlying factors.

Z-test was applied to find out the significant differences between male and female investors.

Results and Discussions Consistency Measure

Firstly consistency of all the items in the questionnaire is checked through item to total
correlation.
Under this correlation of every item with total is measured and the computed value is

31
 compared with standard value (i.e.0.1590). If the computed value is found less than standard
value then whole factor/statement is dropped and will betermedas inconsistent.
S. Items Computed Consistency Accepted
No. Correlation /Dropped
Value
1 Awareness about terms and conditions of 0.671575 Consistent Accepted
Policy.
2 Provide services on time. 0.651847 Consistent Accepted
3 Provide satisfactory services. 0.573518 Consistent Accepted
4 Good will of the company. 0.607722 Consistent Accepted
5 Agent is well in formed about policies. 0.640696 Consistent Accepted
6 Co-operativeandfriendlyagent. 0.598089 Consistent Accepted
7 Agentrespondpromptly 0.696914 Consistent Accepted
8 Properreminderofinstallmentsbyagents. 0.531124 Consistent Accepted
9 Employeesresponsibletowardscustomers 0.685817 Consistent Accepted
10 Benefitsaremetbypolicy. 0.510702 Consistent Accepted
11 Selectionofhighlyreputedcompany. 0.634614 Consistent Accepted
12 Reputationoftheinsurancecompany. 0.582977 Consistent Accepted
13 Hasslefreesettlements 0.594282 Consistent Accepted
14 Personalattentiononeverycostumer. 0.640192 Consistent Accepted
15 UnderstandCustomer’sfinancialneeds. 0.603133 Consistent Accepted
16 Fulfillitspromisetowardspolicy. 0.613243 Consistent Accepted

17 Providestheclaimsontime. 0.474994 Consistent Accepted

18 Settlementofclaimseasyandtimely. 0.569959 Consistent Accepted
19 Satisfywithrelationshiptocompany. 0.621496 Consistent Accepted
20 Companyabletofulfillexpectation. 0.594265 Consistent Accepted
21 OnlycompanyIwanttoassociatemyself. 0.519161 Consistent Accepted
22 Purchasemorepoliciesfromthesamecompa 0.502876 Consistent Accepted
ny.
23 Suggestfriendsandfamilytopurchase 0.540626 Consistent Accepted
Policy fromthesamecompany.
24 Policybenefitsbenchmarks. 0.62874 Consistent Accepted
25 Investment in mutual fund is more 0.376874 Consistent Accepted
secure than stock market.
26 Purchase further policies from 0.091102 Inconsistent Dropped
othercompanies.

32
 Reliability

A reliability test was carried out using SPSS software and the reliability of the items was
measured. The result is as follows:

Cronbach’s Alpha 0.919

It can be seen that the reliability value is more than 0.7. So, the questionnaire is highly
reliable.

Factor Analysis

FactorName EigenValue VariableStatements Loading

Total % of
Variance
1.CompanyLoyalty 21.OnlycompanyIwanttoassociate 0.814
Myself. 0.799
22.Purchasemorepoliciesfromthe
Same company. 0.790
23. Suggest friends and family to
8.818 35.273
purchasepolicy fromthesame 0.599
Company. 0.545
20.Companyabletofulfillexpectation.
24.Policybenefitsbenchmarks.

2.ServiceQuality 13.Hasslefreesettlements 0.693

9. Employeesresponsible towards 0.631
customers 0.611
7.Agentrespondpromptly 0.563
2.438 9.753
25.Investmentinlifeinsuranceismore
Securethanstockmarket. 0.537
19.Satisfywithrelationshiptocompany.

3. Ease of 17.Provideclaimsontime. 0.852

Procedures 6.Co-operativeandfriendlyagent. 0.662
18.Settlementofclaimseasyandtimely. 0.651
1.458 5.830
5.Agentiswellinformedaboutpolicies. 0.486

4.SatisfactionLevel 10.Benefitsaremetbypolicy. 0.774

33
 3.Providesatisfactoryservices. 0.631
16.Fulfillitspromisetowardspolicy. 0.575
1.252 5.008 2.Provideservicesontime. 0.515
1. Awareness about terms and 0.465
Conditionsofpolicy.

5.CompanyImage 0.777
12.Reputationoftheinsurancecompany. 0.758
1.219 4.878
4.Goodwillofthecompany. 0.428
11.Selectionofhighlyreputedcompany.
6.Company-Client 8. Properreminderofinstallmentsby 0.778
Relationship Agents. 0.505
14. Personalattentiononeverycostumer. 0.404
1.013 4.051
15. Understand Customer’s financial
Needs.

Description of factors

1. Company Loyalty

This factor includes that this is the only company the consumer wants to associate himself
with. In the future (0.814), he would purchase more policies from the same company (0.799),
suggest friends and family to purchase policies from the same company (0.790), company
able to fulfill expectation, (0.599), Policy benefits benchmarks (0.545). The highest Eigen
value lies in this factor of 35.213. So it is been considered as a highly contributing factor
towards study. Therefore, it is clear that company loyalty plays an important role in
investment decisions of investors.

2. Services Quality

This factor includes hassle free settlements (0.693), employees responsible for customers
(0.631), agents respond promptly (0.611), investment in mutual fund is more secure than the
stock market (0.563) satisfied with relationship to the company (0.537). As we can see, the
Eigen value for factor service quality is 9.753, which is also a contributing factor towards the
study, so it can also be considered as an important factor in the study.

3. Ease of Procedures

34
This factor includes the company provides claims on time (0.852), co-operative and friendly
agent (0.662), settlement of claims easy and timely (0.651), agent is well informed about
policies (0.486). As we can see, the Eigen value for factor ease of procedures is 5.830, which
is also a contributing factor towards the study, so it can also be considered as an important
factor in the study.

4. Satisfaction Level

This factor includes that the suggested benefits of the mutual fund policy in Kotak Mahindra
bank should be met by the investors (0.774), the company provides satisfactory services
(0.631), fulfils its promise of mutual fund policy of hyderabad (0.575), services should be
provided on time (0.515), and awareness of terms and conditions of policies. As we can see,
the Eigen value for factor satisfaction level is 5.008, which is also a contributing factor
towards the study, so it can also be considered as an important factor in the study.

5. Company Image 

This factor includes that the mutual fund company should be well known in the industry
(0.777), the funds provider should have goodwill in the market (0.758), and a company of
high repute (0.428).As we can see, the Eigen value for factor company image is 4.878, which
is also a contributing factor towards the study, so it can also be considered as an important
factor in the study.

6. Company-Client Relationship

This factor includes that the agent reminds us about premium installments (0.778), paying
personal attention to every consumer (0.505) and understanding consumer’s financial needs
(0.404). As we can see, the Eigen value for factor company client relationship is 051, which
is also a contributing factor towards the study, so it can also be considered as an important
factor in the study

Z-Test

Z-test was applied to find out significant difference between male and female investors’
perception towards investment in mutual fund policies.

35
For applying Z-test mean and standard deviation was calculated, then values were put in
formula to calculate standard error.

Null Hypothesis Ho: It states that there is no significant difference between the perception of
male and female investors towards investment in mutual fund policies.

GENDER MEAN S.D. SAMPLESIZE SQUARE

OFS.D.
MALE 141.04 20.078 75 403.146
FEMALE 145.94 17.701 75 313.348

Z = 1.5877

Since the value of Z is less than the standard value of 1.96 at 5% level of significance, the
null hypothesis is accepted. Therefore, there is no significant difference between the
perception of male and female investors towards investment in mutual fund policies.

MUTUAL FUND IS AN INVESTMENT

Mutual fund serves as an agency of capital formation. As institutional investors, funds

companies provide funds to the government and public, and contribute to the economic
development of the country. Mutual fund is a contract providing for payment of a sum of
money to the person assured or to his nominee, on the happening of certain events. Various
funds companies offer a large number of mutual fund policies. This is because of the fact that
every one of us has different aspirations in life. The ways of life of all individuals are
different, the needs and expectations of each person are different from those of others. Thus,
36
the funds needs and requirements obviously vary from individuals to individuals. In
Hyderabad life is projected by a monolithic institution called the Mutual fund of Hyderabad.

Mutual fund of Hyderabad in Kotak Mahindra bank has made available a number of funds
plans/policies, providing various benefits and offering appropriate options to tone with the
requirements of different parties or individuals,Jyotsna Sethi and Nishwan Bhatia (2012). It is
the motto of customer orientation which makes possible a fairblending of customer
satisfaction and profit generation, Deepak Bhandari and Amit Sharma (2011). Also, it actsas
a stabilizer in the share market. The continuous inflow of new funds enables mutual fund to
buy shares when the market is weak, Gajendran, (2011).

Besides, Mutual fund is called an investment because

a) it provides protection against the risk of early death,

b) it can be used as collateral for taking loans from banks,

c) the life of key men in an association can be protected,

d) it provides tax advantages,

e) it is a measure of protection at the time of death because it gives provision for estate duty
and

f) it is a sum of money received at the end of a particular number of years, i.e., "the
termination period of the contract". Mutual fund, therefore, is called an investment with an
element of protection and an element of investment 

1. Growth of the Mutual fund Industry and Its Market Share

The funds industry in Hyderabad consists of 53 fund companies, of which 24 are in the
mutual fund business and 29 are non-mutual fund policy. Among the mutual fund, mutual
fund is the sole public sector company. With 70.4 per cent contributed to market share in
FY16, Mutual fund continues to be the market leader, followed by SBI (5.1 per cent), ICICI
(4.9 per cent) and HDFC (4.1 per cent).

37
  The Mutual fund market has escalated from US $10.5 billion in FY02 to US $27.5
billion in FY16

 Over FY02–FY16, mutual fund premiums expanded at a CAGR [Compound Annual

Growth Rate] of7.5 per cent.

 The mutual fund industry has the potential to grow 2-2.5 times by 2020 in spite of
multiple challenges supported by long-term trends and fundamentals underlying
house hold savings. 

The Mutual fund of Hyderabad market is a huge business opportunity waiting to be

harnessed. Hyderabad currently accounts for less than 1.5 per cent of the world’s total funds
premiums and about 2 per cent of the world’s Mutual fund premiums despite being the
second most populous nation. Mutual fund of Hyderabad sector is the biggest in the world
with about 360million policies which are expected to increase at a Compound Annual
Growth Rate (CAGR) of12-15 per cent over the next five years. The funds industry plans to
hike penetration levels to five per cent. By 2020, the total market size of the funds sector in
Hyderabad is projected to touch US $350-400 billion. The country is the fifteenth largest
mutual fund market in the world in terms of premium volume, and has the potential to grow
exponentially in the coming years, Web site, ibef.

Mutual fund of Hyderabad population is anticipated to touch 750 million in 2020, with life
expectancy reaching 74 years. Furthermore, mutual fund is projected to comprise 35 per cent
of total savings by the end of this decade, as against 26 per cent in 2009-10. The future looks
promising for the mutual fund industry with several changes in the regulatory framework
which will lead to further changes in the way the industry conducts its business and engages
with its customers. Demographic factors such as a growing middle class, a young funders
population and growing awareness of the need for protection and retirement planning will
support the growth of Mutual fund of Hyderabad, Assocham Report.

Literature Review

Vipul (2007), the author explored the comparative study of mutual fund and found that the
consumers are expecting the premium to be reduced and more transparency between funders
and policy holders, also stressed that companies should be customer – centered. Praveen

38
kumarTripathi (2008) constructed his research on the basis of various segments in order to
recognize the customer perception and expectations from private fundres. BhagabatBarikET.
al. (2014) discussed the emerging trends in mutual fund and highlighted that there is a need
for highly skilled professional advisory in the Mutual fund of Hyderabad industry in Kotak
Mahindra bank, balanced marketing mix, and policy administration and as far as possible, re-
engineering of the business model. Analyzed the different factors that determine the
investment in mutual fund policies and the result given was trust and effective and good plans
were the main reasons. To invest in funds among the customers, by Babitayadav (2012).
Balasubramanyam (2015) focused on the overall development of Mutual fund of Hyderabad
companies and proposed that the mutual fund industry should offer its customers tailor made
products to satisfy their financial needs in the future. 

Statement of the Problem

With the growth of professional risk management, the funds device has become more and
more popular these days. The liberalization of the economy has resulted in the availability of
a large number of alternatives products/financial services. This has paved the way for the
potential and unconventional entrants to penetrate the financial market through innovative
higher products’ profile and portfolios, resulting in a sudden spurt in the demand for funders
investments. Mutual fund plays a vital role in the field of investment. Investments are both
important and useful in the context of present day conditions. It is a common saying "One
paisa saved is one paisa earned". In the present financial market, investors are facing either
the problem of safety or unattractive returns. At this juncture, the extent to which mutual fund
goes to attract investors has been undertaken in this study.

Scope of the Study

Mutual fund is a roller coaster ride and is full of twists and turns. One cannot take anything
for granted in life. Mutual fund Policies are a safeguard against the uncertainties of life.
Funds is a system by which the losses suffered by a few are spread over many, exposed to
similar risks. Mutual fund is a protection against financial loss arising from the happening of
an unexpected event. An mutual fund policy helps in not only mitigating risks but also
provides a financial cushion against adverse financial burdens suffered. Thus, this paper
discussed the investors’ behavior. Towards mutual funds and the study was based mutual
fund of the public sector and limited to policyholders’ preference. 

39
Results and Methodology

Mutual fund has become a part of human life. It is not restricted to life, marine or fire only,
but has spread over to almost every sphere of human activity. For example, a singer can funds
his or her throat, a dancer her legs and an actress her nails etc. So the scope of mutual fund is
unlimited. The significance of funds is not only limited to an individual or to a family alone,
but it has spread over the entire nervous system of a business or say the country as a whole.
This research explores the growth of the Mutual fund of Hyderabad and the behavior of the
policyholder of this firm. Specifically, this research addresses the following questions: 

 What is the nature of policyholders in the context of socio-economic factors?

 What are the factors that influence them to invest in mutual fund?

 Which factor is closely related to this investment as per the policyholders?

Both primary and secondary data were used and out of sample 155, 128 policyholders
responded to the questions in a fair manner and the same has been undertaken for the
analysis. The data collected was analyzed and interpreted with the help of statistical tools.
The following tables highlight the socio-economic factors of the respondents as well as their
preference towards investment in mutual fund. 

Demographic and Other Factors of the Sample Respondents

Table No 1 reveals the demographic factors of the policyholders/respondents. The factors are
analyzed on the basis of gender, age, educational qualifications, occupation, income category
and investment in mutual fund. The table extended with other factors also like duration of
premium payment, reasons to select the specific duration, savings other than mutual fund,
duration of investment and source of information. It is clear from the table that a the majority
(57.81%) of the respondents fall in the age group of 41-55years and in gender 108 i.e 72%
are male. of 128 respondents. The majority of the respondents belong to the category of
undergraduates, i.e 63.68%, who constitute a core group of investors. Occupation-wise,
nearly 61.72% of respondents are salaried employees’ followed by professionals, business
class, and retired investors with 16.41%, 14.84% and 7.03% respectively. Out of 128
respondents, 36.72% fell under the annual income group of 101-105 thousand, and 21.88

40
percent each fell under the annual income group of less than 100 thousand and 151-200
thousand respectively. 

It is significant to know from the table that the majority of the respondents have opted for
taking only one policy, i.e 72.65%, followed by taking two policies 21.09% and 6.26% of the
respondents have taken three policies. No respondents have taken more than three policies.
Regarding reasons for investing in Mutual fund, 45.31% of the respondents considered safety
as a main reason, followed by the return factor, which was cited by 38.28% and 16.41%
respondents considered liquidity as a motive to invest in mutual fund. Out of total
respondents, 64.84% of the respondents were paying their premium on a monthly basis,
followed by 17.18% who paid their premium on% quarterly basis, 7.04 and 10.94% of the
total were paid on a half-yearly and annual basis respectively. While selecting the specific
duration of the premium payment, the majority of respondents, i.e 101, felt the easy mode
of payment. The respondents have investments other than Mutual fund like, 63.28% of the
respondents have savings in Bank, 24.22% have saving in the post office, 9.37and 3.13% of
the respondents have their savings in mutual funds and Securities respectively. Duration of
investment by the respondents covered below ten years as the majority 46.09% and followed
by the 11-20years category. Regarding the awareness among the respondents to investing in
mutual fund was a greater part of them known through the agents only. 

Table1.Demographic and other factors of the sample respondents

S.N0 Basi Number Percentage
of respondents
Gender Male 108 84.38
Female 28 15.62
Age Below25years 4 3.13
26-40 38 29.69
41-55 74 57.81
Above55 12 9.37
Education HigherSecondary 22 17.19
Qualifications UnderGraduate 81 63.28
PostGraduate 18 14.06
Professionals 7 5.47
Occupation Business 19 14.84
Professional 21 16.41
Salariedemployees 79 61.72
Retired 9 7.03
AnnualIncomein000’ Lessthan100 28 21.88
101-150 47 36.72
151-200 28 21.88
Above200 25 19.52

41
 No.ofPoliciesTaken Onlyone 93 72.65
Twopolicies 27 21.09
Threepolicies 8 6.26
Abovethreepolicies - 0
MotivestoInvestinMutual Safety 58 45.31
fund
Return 49 38.28
Liquidity 21 16.41
Duration ofpremium Monthly 83 64.84
payment Quarterly 22 17.18
Halfyearly 9 7.04
Annual 14 10.94
Reasonstoselectthe Easypayment 101 78.91
specificduration Affordableamount 17 13.28
Savetime 10 7.81
SavingsotherthanMutual Banks 81 63.28
fund
Postoffice 31 24.22
Mutualfunds 12 9.37
Securities 4 3.13
Companyfixeddeposit - -
s
Durationofinvestment Lessthan10 years 59 46.09
11-20years 55 42.97
Above20years 14 10.94
SourceofInformation Agents 59 46.09
Advertisement 47 36.72
Friends 3 2.35
OwnAnalysis 19 14.84

Investors’ Assessment

It is significant to know from Table 2 that the investors’ assessment of their own portfolio
and receiving culture of the concern. Out of the respondents 128, 49.22% of them are
satisfied with their return due to reasonable performance by their investment as well as the
service rendered by the corporation and 16.41% of the respondents considered the yield from
their investment to be good. Only 9.37% of the investors consider the services to be very
good and 25% of the respondents considered not satisfactory. 

Table2.Investors’assessment
Assessment No. Percentage

42
 ofrespondent

Reasons s Number Percentage

VeryGood 12 9.37
ofrespondent
Good 21 16.41
s
DelayinSettlement
Satisfactory 63 22 68.75
49.22

Poor
InadequateInformation 32 - - 25
Total
HighPremium 1288 100
25

PoorPublicRelation 2 6.25

Total 32 100

Table 3 shows the dissatisfaction of the respondents towards the service rendered by the
corporation. Out of 128 respondents, 32 respondents felt dissatisfaction with the service. The
majority of their respondents, i.e. out of 32, 22 respondents feel dissatisfaction because of
delay in settlement and 25 respondents feel payment of premium is high. A very negligible
percent of the respondents quoted poor public relations.

Rank Preference in Saving Pattern of the Respondents

Table 4 depicts the ranking preference in the saving pattern of the respondents. Out of 128
respondents, 54 Investors prefer first to invest in funds.Next, 48 respondents who ranked the
bank deposit as first and 22 respondents marked investment in the post office as first.
Negligible numbers felt investing in mutual funds and security as first preference. This shows
that investment in funders and banks were the main preferences exposed by the respondents
of this study. 

Table4.Ranking preference in investment

Preference/Rank I II III IV V VI Tota
l
Mutual fund 54 41 9 16 8 - 128

Banks 48 44 12 10 8 6 128

43
 Postoffice 22 19 38 31 7 11 128

Mutualfunds 3 21 29 15 26 34 128

Securities 1 3 33 49 17 25 128

Companyfixeddeposit - - 7 7 62 52 128
s
Total 128 128 128 128 128 128

Statistical Tools

The fundamental aim of any research is to establish the relationship between two or more sets
of observations to arrive at a reliable conclusion, J.K.Sharma (2004). So, to express the
magnitude and the strength of a relationship between variables, statistical techniques of
correlation coefficient have been used.

a. The degree of relationship between age and investment assessment of the respondents:

As per Karl Pearson’s correlation coefficient, the value of the correlation coefficient between
age and investment assessment showed 0.854. So, the inference can be drawn that there is a
high degree of positive correlation between age and investment assessment of the
respondents.

b. The degree of relationship between Education and Investment assessment of the

respondents:

The value of the correlation coefficient between Education qualification and investment
assessment shows-0.348.Since the coefficient of correlation is negative-0.348, it indicates
that there is a fairly large inverse correlation between the two variables. Hence, we conclude
that there is no association between the educational qualifications and the investment
assessment of the respondents.

c. The coefficient of multiple correlations: The degree of association between variables of

annual income, duration of premium payment and number of policies taken:

The degree of relationship between annual incomes of the respondents as a dependent

44
variable (Y) and duration of premium payment (X1) and number of policies taken (X2) by
the respondents are independent variables. The coefficient of multiple correlations
expressed in terms of simple linear correlations: R=ryx1,ryx2 andrx1x2

Therefore, the Multiple Correlations coefficient is defined as: 

Ry x 1 = .00001, ryx2 =-.130 and rx1x2 = .984

Therefore, Ry x 1 = 0.279. 

The outcome of Ry x 1 = 0.279, shows the degree of association among annual income,
duration of premium payment and the number of policies taken which are fairly correlated.
This can be inferred that investment is not determined by the income of the respondents,
instead they understood the necessity of investment in mutual fund. for their future
requirements which is said to be forced by Investment, Bhole and Jitendra, (2009). Though
mutual fund is a forced investment. It is for the welfare of the policyholders which is the
payment of contingency. 

Since the mutual fund contract is a contract of certainty, the contingency of death or the
expiry of term will certainly occur, the payment is certain. Thus, from the study, it can be
concluded that mutual fund has become a household name providing security for a lifetime of
the investors. 

45
 LITERATURE REVIEW

David. A, (2001)Bernheimer estimates that approximately 25% of households own time

mutual fund, and based on his model, are Therefore, fore over-annuitized.His central result
indicate that eyareus-ingterm funds to offset Social Security by roughly twentycents on the
dollar.

Kumar, (2012) the funds industry contributes to the financial sector of the economy and also
provides significant social security.Web in developing countries. The expansion of the
mutual fund sector in Hyderabad has been phenomenal. The cover industry hasundergone a
massive change over the last few years and the metamorphosis has been noteworthy. There
are several private and government mutual fund companies in hyderabad that have become
synonymous with the term cover over the years. Offering a diversified product portfolio
moreover excellent services many mutual fund companies in hyderabad have managed to
make their way intoalmost every Hyderabad household.

V.Prabakaran, An analysis of the growth of Mutual fund of hyderabad-In the context of the
post liberalization era, (2012) the history of the Hyderabad mutual fund in Kotak Mahindra
bank sector dates back to 1818, when the Oriental mutual fund Company was formed in
Kolkata.A new period began in the Hyderabad mutual fund sector, with the temporary of the
mutual fund Act of 1912. Hyderabad mutual fund the Companies Act was passed in 1928.
This act empowered the government of Hyderabad to provide necessary information about
Hyderabad mutual fund and V.Prabakaran, An analysis of the growth of Hyderabad mutual
fund -In the context of the post liberalization era, (2012) the non-mutual fund organizations
in service in the Hyderabad financial markets. This paper examination the performanceof
mutual fund of Hyderabad in terms of numeral of police issue, first year excellence collected
and the profit before tax earned

46
P.B.Ashturkar, (2014) Claim management is a vital area of the mutual fund business. The
mutual fund business in Hyderabad is flourishing fast. However, the success of the mutual
fund companies will largely depend upon claim management. After liberalization, several
private sector companies into mutual fund space, to command self-assurance of the potential
customer it is necessary for the newly formed private sector company to compete with public
sector giant Hyderabad mutual fund on all fronts including claim management.

R.young, (2013) we determine the optimal amount of mutual fund for household of two wage
earners. We consider the simple case of exponential utility, thereby removing wealth as a
factor in buying mutual fund, while training the relationship among life funds, income, and
the probability of dying and thus losing that in come. For funds purchased via a single
premium or premium payable continuously, we explicitly determine the optimal death
benefit. We show that if the premium is determined to target a specific probability of loss per
policy, then the rates of consumption are identical under single premium or continuously
payable premium. There is an equivalence of consumption achieved for households under the
two premium schemes. It is also obtained for the mutual fund company in the sense of
equivalence of loss probabilities.

Mehr and Cammack (1976) agree that funds is usually thought of as a product that spreads
the risk of serious, but low-probability, losses among a group of individuals, thus providing
some financial protection to each individual.

Kunreuther, (1979) said that his product makes good sense, particularly when the protection
is purchased against potential losses so large as to be catastrophic, such as total destruction of
one's home, a large accident liability judgment, or death of a primary family breadwinner.
However, it has long been recognized that this sensible product is difficult to sell

Kotler, (1973) considers insurance to be in the category of "unsought goods," along with
products such as preventive dental services and burial plots. He notes that unsought goods
pose special challenges to the marketer.

Slovic, Fischhoff, Lichtenstein, Corrigan, and Combs (1977) found that subjects were more
likely to buy mutual fund against small, high-probability losses than funds against large, low-
probability losses. Hershey and Shoemaker (1980) reported the opposite result.

47
Kunreuther (1979) "It is not the magnitude of a potential loss that inspires people to buy
funds voluntarily – it is the frequency with which a loss is likely to occur".

Kahneman&Tversky, (1979) reported that a risk-averse individual, therefore, should avoid

nearly all types of risk. Empirical evidence, however, suggests most people are risk averse to
gains and risk seeking for losses.

Kahneman&Tversky, (1984) stated indeed, repeated demonstrations have shown most people
lack an adequate understanding of probability and risk concepts.Dhar, (1997) Greenleaf and
Lehmann, (1995) Tversky and Shafir, (1992) have shown that offering more options can
generate decision conflict and preference uncertainty, leading to decision deferral. 

Michael L. Smith (1982) said that a typical mutual fund contract provides a package of
options or rights to the policy owner that is not precisely duplicated by any other combination
of commonly available contracts. Viewed from this perspective, mutual fund enjoys a unique
position in the field of investments and should be judged in this light. The paper shows that
an options viewpoint provides a more complete explanation of policy owner behavior
towards mutual fund than the conventional savings-and-protection view. 

Michael L. Walden (1985) says that the option package view of the whole mutual fund policy
suggests that a whole fund policy is a package of options, each of which has value and is
expected to influence the price of the policy. This viewpoint implies the general hypothesis
that price differences between whole life policies can be explained by differences in policy
contract provisions and differences in selected company characteristics. The option package
theory was empirically investigated using regression analysis on data from a sample of
policies marketed in North Carolina. The results suggest support for the options package
theory.

Kirchler and Angela-Christian Hubert (1999) found that the present study aims at describing
spouses’ relative dominance in decisions concerning different forms of investment. As
determinants of spouses’ dominance, partnership characteristics, such as partnership role
attitudes, marital satisfaction and individual expertise in relation to different investments,
were considered. A questionnaire on spouses’ dominance in making decisions on various

48
investments, on the characteristics of particular investments and on partnership characteristics
was completed by 142 Austrian couples. Basically, wives appeared to adapt to the dominance
exerted by their husbands in savings and investment decisions. Wives’ dominance was
highest in egalitarian partnerships, where autonomic and wife-dominated decisions were
reported more frequently than in traditional partnerships. Additionally, spouses’ relative
expertise in relation to the investments in question showed strong effects on dominance
distribution: Spouses with higher expertise than their partners exerted more dominance in
decision-making processes.

Amy Wong, (2004) empirically examined the role of emotional satisfaction in service
encounters. Specifically, this study seeks to: investigate the relationship between emotional
satisfaction and key concepts, such as service quality, customer loyalty, and relationship
quality, and clarify the role of emotional satisfaction in predicting customer loyalty and
relationship quality. In doing so, this study used the relationship between emotional
satisfaction, service quality, customer loyalty, and relationship quality as a context, as well as
data from a sample survey of 1,261 Australian retail customers concerning their evaluation of
their shopping experiences to address this issue. The results show that service quality is
positively associated with emotional satisfaction, which is positively associated with both
customer loyalty and relationship quality. Further investigations showed that customers'
feelings of enjoyment serve as the best predictor of customer loyalty, while feelings of
happiness serve as the best predictor of relationship quality. The findings imply the need for a
service firm to strategically leverage the key antecedents of customer loyalty and relationship
quality in its pursuit of customer retention and long-term profitability.

Stephen Diacon (2004) presents the results of a detailed comparison of the perceptions by
individual consumers and expert financial advisers of the investment risk involved in various
UK personal financial services products. Factor similarity tests show that there are significant
differences between experts and lay investors in the way financial risks are perceived.
Financial experts are likely to be less loss averse than lay investors, but are prone to
affiliation bias (trusting providers and salesmen more than lay investors do), believe that the
products are less complex, and are less cynical and distrustful about the protection provided
by the regulators. The traditional response to the finding that experts and non-experts have
different perceptions and understandings about risk is to institute risk communication
programmers designed to re-educate consumers. However, this approach is unlikely to be

49
successful in an environment where individual consumers distrust regulators and other
experts.

Helmut Gründl, Thomas Post, Roman Schulze, (2005) found that demographic risk, i.e., the
risk that funds tables change in a nondeterministic way, is a serious threat to the financial
stability of an mutual fund company having underwritten mutual fund and annuity business.
The inverse influence of changes in mortality laws on the market value of mutual fund and
annuity liabilities creates natural hedging opportunities.

Evan Mills, Ph.D. (1999) the mutual fund industry is rarely thought of as having much
concern about energy issues. However, the historical involvement by funders and allied
industries in the development and deployment of familiar technologies such as automobile air
bags, fire prevention/suppression systems, and anti-theft devices, shows that this industry has
a long history of utilizing technology to improve safety and otherwise reduce the likelihood
of losses for which they would otherwise have to pay. We have identified nearly 80 examples
of energy-efficient and renewable energy technologies that offer "loss-prevention" benefits,
and have mapped these opportunities onto the appropriate segments of the very diverse funds
sector (life, health, property, liability, business interruption, etc.).

Roger. A. Formisano (1981) examined, via consumer interviews, the impact of the National
Association of funds Commissioner's Model mutual fund Solicitation Regulation as
implemented in New Jersey. A substantial portion of the funds buyers sampled did not
become aware of the provisions of the regulation aimed at improving their buying ability.
Further, many mutual fund buyers were not well informed concerning the nature and
operation of mutual fund contracts, and in particular, the mutual fund policies that they had
purchased.

Review of literature is an important part of research work. From time to time, researchers
have devoted their time and energy to studying the claim settlement procedures and
performance of mutual fund companies.

Ghosh Amlan (2011) inferred the relationship between mutual fund sector reforms in
Hyderabad and the growth of life businesses in the post reform period. It shows that the
relationship between the funds sector reforms and the development of the mutual fund sector
in Hyderabad is bi-directional. It is due to the huge potential of the mutual fund market.

50
M.Selva Kumar and J VimalPriyan (2012) concluded that Mutual fund continues to
dominate the funds sector. Private sector mutual fund companies have also tried to increase
their market share. Mutual fund has today become a mainstay of any market economy since it
offers plenty of scope for garnering large sums of money for long periods of time. The study
compared premiums, policies and market shares of companies.

Kalani, Salunkhe and Ahirrao (2013) examined the claim settlement ratio of mutual fund
with other mutual fund companies in Hyderabad. The study observed that there are cases of
fraud in claim settlements that may happen, but if the policyholder uses proper precautions,
he will prevent himself from fraud. Hyderabad mutual fund provides better corporate services
for settling customers' claims. D-mat may improve transparency and efficiency of the claim
settlement. Authors studied comparison of claim settlement ratio of mutual fund with other
mutual fund industry and a survey of policyholders and opinion regarding claim settlement.

Yadav and Mohania (2013) the study entitled claim settlement of mutual fund policies in
funds services with special reference to Hyderabad mutual fund. Authors have focused on the
management framework o-f mutual fund for the settlement; impacts of claim settlement on
the sale of life insurance policies by mutual fund of Hyderabad, claim settlement process
followed by mutual fund of Hyderabad, awareness towards claim settlement among
customers and analyzing the quality of service provided by mutual fund of Hyderabad for
claim settlement

Piyali Chandra Khan and Mitra D (2014) analyzed that the overall position of mutual
fund of Hyderabad was found to be quite satisfactory as the profit after tax improved by
270% in the last 12 years. It had a strong liquidity position. The company had sufficient
current assets to meet the current liabilities. This resembles that mutual fund of Hyderabad is
quite capable of earning a superior return in this competitive environment.

51
 Conclusion

At the outset, mutual fund offers the investing public a broad opportunity to invest. Under
various schemes float by it which fulfills the investor’s expectations of a risk-free investment
in Kotak Mahindra bank. funds is a process in which a large number of people collect their
small contribution, called the premium, in a pool and out of their losses are paid to the
suffering person. Even in a competitive scenario, mutual fund of Hyderabad has registered
the world’s highest growth rate and creating history in the funds sector. mutual fund strength
quick changes with time, responding to changing needs and aspirations of the people.
Evidently, mutual fund today stands as a global stage ever adapting to world-class standards
of service in terms of tailor-made schemes, computerization and strategic planning. Thus, the
study investigates the investor’s preferences, and the factors that determine investing in
mutual fund. Based on the analysis, the study concludes that the success of every investment
decision has become increasingly important in recent times. Making a sound investment
decision requires both knowledge and skill apart from other factors. Skill is needed to
evaluate risk and return associated with an investment with minimum risk involved if He
carefully analysis the information published. Knowledge is required regarding the complex
Kotak Mahindra bank investers alternatives available, in the economic environment. 

Mutual fund is essential to evade risk next to uncertain events. Valuable human life must be
protected. Funds bestows help hand to reduce risk. The survey finds varied perceptions of
investors towards Max mutual fund of Hyderabad. Majorityof the respondents are self-
motivated and influenced by newspapers while trade cover policies. Mutual fund is perceived
as coverage of risk, making returns as well as avenue of savings. The study reveals that the
majority of investors are expecting 11to 15 return on their investment. Pre-sale services of
max mutual fund of Hyderabad are presumed well, though the following sales services needs

52
to be improved. As a whole, the majority of investors are either satisfied or highly satisfied
with the products of max mutual fund. 

In the current Hyderabad market, the investment habits of Hyderabad consumers are
changing very frequently. Individuals have their own perception towards various types of
investment plans. The study of this research work focused on consumers’ perception of
investment towards mutual fund Services. The objectives of the study were to evaluate the
factors underlying consumer perception towards investment in mutual fund policies; and to
compare the differences in consumer perception of male and female consumers. The tests that
were used for our research activities were-Item to Total Correlation Test, which we applied
on 26 items and only one was dropped out, 25 items being accepted. Next was the Reliability
Test to check the reliability of the items. The result was 0.915. Therefore, the items were
highly reliable. Then we applied the Factor Analysis Test, and the six factors that came out
were Consumer Loyalty, Service Quality, Ease of Procedures, Satisfaction Level, Company
Image, and Company-Client Relationship

The consumer’s perception of mutual fund policies is positive. It developed a positive mind
sets for their investment pattern in funds policies. Still, some actions are needed to develop
the funds market. The major factors playing the role in developing consumers’ perception
towards mutual fund Policies are Consumer Loyalty, Service Quality, Ease of Procedures,
Satisfaction Level, Company Image, and Company-Client Relationship.

The mutual fund industry has to go ahead. A lot of opportunities are still waiting. This
research will help in developing market share, loyalty and further development in the
insurance sector.

mutual fund of Hyderabad dominates the Hyderabad mutual fund industry. In today’s
competitive world, customer satisfaction has become an important aspect to retaining
customers, not only to grow but also to serve. Increased competition, a wide range of product
offerings and multiple distribution channels cause companies to value satisfied and highly
profitable customers. Customer service is the critical success factor in a company and
providing top notch customer service differentiates great customer service from indifferent
customer service.

53
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58
 APPENDIX

Calculation for Standard Deviation, Sharpe Ratio, Beta and R-Square Mirae Asset
Kotak Mahindra bank in Hyderabad Opportunities Fund- Regular Plan-Growth

Date NAV Benchmark B Returns NAV Returns Risk Free Excess Return
BSE200 Rate
09-Apr-08 9.98 1955.24 0 0 0.000233 -0.00023288

10-Apr-08 9.98 1948.02 -0.003692641 0 0.000233 -0.00023288

11-Apr-08 10.06 1964.03 0.008218601 0.008016032 0.000233 0.00778316
15-Apr-08 10.2 2003.97 0.020335738 0.013916501 0.000233 0.01368363
16-Apr-08 10.29 2017.16 0.006581935 0.008823529 0.000233 0.00859065

59
 17-Apr-08 10.44 2051.87 0.017207361 0.014577259 0.000233 0.01434438
21-Apr-08 10.65 2088.3 0.017754536 0.020114943 0.000233 0.01988207
22-Apr-08 10.76 2101.03 0.006095867 0.010328638 0.000233 0.01009576
23-Apr-08 10.73 2093.05 -0.003798137 -0.002788104 0.000233 -0.00302098
24-Apr-08 10.67 2089.97 -0.001471537 -0.005591799 0.000233 -0.00582468
25-Apr-08 10.78 2130.19 0.019244295 0.010309278 0.000233 0.01007640
28-Apr-08 10.82 2122.83 -0.003455091 0.003710575 0.000233 0.00347770
29-Apr-08 11.06 2166.63 0.020632834 0.022181146 0.000233 0.02194827
30-Apr-08 11.06 2157.52 -0.004204687 0 0.000233 -0.00023288
02-May-08 11.21 2191.69 0.015837628 0.013562387 0.000233 0.01332951
05-May-08 11.21 2186.33 -0.002445601 0 0.000233 -0.00023288
06-May-08 11.09 2166.48 -0.009079142 -0.010704728 0.000233 -0.01093760
07-May-08 11.80 2160.64 -0.002695617 -0.000901713 0.000233 -0.00113459

Questionnaire

Que. 1 Age of the investors

1).18-24 2).24-30 3).30 & Above

Que.2 Mention your annual income?

1).Below 100000 2).100000-300000 3).300000-500000 4).500000& above

Que.3 Do you invest in mutual funds?

1).Yes 2).No

Que.4 If yes your most preferred asset Management Company SB

1).Axis Mutual fund
2).HDFC Mutual fund
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 3).Birla sun life Mutual fund
4).Kotak Mahindra bank Mutual fund
5).UTI Mutual fund

Que.5 Which among these are the safest investment options?

1).Mutual funds
2).Stock Markets
3).Bank deposit
4).Others ________

Que.6 Which of the factors given below prevent you from investing your funds in Mutual
funds?
1).Bitter past experience
2).Lack of knowledge
3).Inefficient investment advisors
4).Others __________

Que.7 While investing your money, how these factors affect your decision?
1).Liquidity
2).High return
3).Professional management
4).Brand management
5).Others

Que.8 Which scheme do you feel is acceptable?

1).Open ended scheme
2).Close ended scheme

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