A STUDY TO ASSESS THE PERCEPTION OF MUTUAL

FUND INVESTORS
Project report submitted in partial fulfillment of the requirements for the award of
the degree of 4th semester

POST GRADUATION OF MASTER OF BUSINESS

ADMINISTRATION
Of
BANGALORE UNIVERSITY

BY
G R VIJAY
19X6CMD007
UNDER THE GUIDANCE OF

PROF. AYUB AHAMED KS

ASSISTANT PROFESSOR

RR INSTITUTE OF ADVANCED STUDIES

CHIKKABANAVRA, BANGALORE-90
2019-2021
INTRODUCTION
A mutual fund is a financial intermediary that allows a group of investors to
pool their money together with a predetermined investment objective. The
mutual fund will have a fund manager who is responsible for investing the
gathered money into specific securities (stocks or bonds). When investors invest
in a mutual fund, they are buying units or portions of the mutual fund and thus
lon investing becomes a unit holder of the fund. Mutual funds are considered as
one of the best available investments as compare to others they are very cost
efficient and also easy to invest in, thus by pooling money together in a mutual
fund, investors can purchase stocks or bonds with much lower trading costs than
if they tried to do it on their own. But the biggest advantage to mutual funds is
diversification, by minimizing risk & maximizing returns. Mutual funds are set
up to buy many stocks. Beyond that, investors can diversify even more by
purchasing different kinds of stocks which helps to spreading out investors’
money across different types of investments and hence, reduces risk
tremendously up to certain extent. It could take you weeks to buy all these
investments, but if you purchased a few mutual funds you could be done in a
few hours because mutual funds automatically diversify in a predetermined
category of investments

REVIEW OF LITERATURE
Rajesh Kumar, Deepak Sharma, Jarnail Singh Journal of the Gujarat
Research Society 21 (16), 2181-2188, 2019

This investigation on Investors recognition towards and late improvement and

advancement of Mutual Fund interests in Alwar city goes under the board territory
of administration advertising. In the wide idea of administration advertising it
solely focuses on the showcasing of money related administration in particular
common assets. Step by step Indian budgetary market is getting to be focused and
the supply of different monetary instruments should be in balance to the interest
points of view of the financial specialists.

Taejun Lee, Tai Woong Yun, Eric Haley Journal of Consumer Affairs 46 (2),
260-287, 2012

This study examines the relationship between financial disclosures and investors'
financial knowledge on investor decision making within the context of mutual
fund advertising. Experimental results suggest that mutual fund ads with financial
disclosures are more likely to generate higher levels of recall and positive thoughts
regarding advertised information for the mutual fund, more favorable attitudes
toward the mutual fund, and greater investment intention. Results also suggest that
the impact of advertising disclosure on the outcomes of financial behavior (e.g.,
recall, cognitive response, attitude toward mutual fund, and investment intention)
can be moderated by the level of an investor's financial knowledge.

Noor Nahar Begum, Sarabia Rahman International Journal of Economics

and Finance 8 (10), 184-191, 2016

Mutual fund is an investment instrument which assembles the savings of millions

of small and retail investors into large capital formation. The fundamental
objective behind investment in mutual fund is to earn good return with relatively
low risk. Mutual fund is acting as an important investment alternatives for general
investors. In Bangladesh, mutual fund was first introduced by Investment
Corporation of Bangladesh (ICB) in 1980. The main purpose of doing this
research is to analyze the investors’ preference towards mutual fund and factors
affecting the investors’ preference towards mutual fund. By using 5-point Likert
scale in structured questionnaire, researchers have measured the factors affecting
the attitude of investors towards mutual fund. Descriptive statistical tools like chi
square test have been used for analyzing the data. It is found that, the
demographical factors-gender, income and savings have significant influence on
the investor’s attitude towards mutual funds investment. Investors prefer mutual
fund as safety of life and return on investment.

Sanjay Kumar Mishra, Manoj Kumar Financial Literacy and the Limits of
Financial Decision-Making, 26-56, 2016
Understanding the investment behaviour, specifically information search and
processing behaviour of mutual fund (MF) investors is a key to the effective
marketing of MF schemes, and yet we have only limited understanding of it.
The limited insights into the investment behaviour of MF investors are available
from the existing studies dispersed across multiple domains of literature, viz.,
Traditional Finance, Behavioural Finance and Consumer Behaviour.

Journal of Financial and Quantitative Analysis, 907-936, 2008

We apply an event-study methodology on over 10,000 Morningstar star rating
changes and find that Morningstar has substantial independent influence on the
investment allocation decisions of retail mutual fund investors. It is the discrete
change in the star rating itself and not the change in the underlying performance
measures that drives flow. We document economically and statistically
significant positive abnormal flow following rating upgrades, and negative
abnormal flow following rating downgrades. In contrast to the cross-sectional
flow performance literature, we find evidence of investor punishment of
performance declines, some of which is evident immediately in the month of the
rating change.

NEEDS OF STUDY
1. Mutual fund industry provides reasonable options for an ordinary man to
invest for future aspects.
2. The basic study is to find out the customer perceptions in mutual funds
and for future investment offered by mutual fund companies.
 3. To also understand the customer perception towards investing in mutual
funds.
4. These initiatives would help towards making the customer more aware
regarding mutual funds, therefore a need is there to study the customer’s
perceptions regarding mutual fund

OBJECTIVES
 To study about the concept of mutual funds.
 To observe the impact of various perception factor on the purchasing
behavior of the investors.
 To determine the level of awareness towards mutual funds among
investors.
 To study investors perception relating to liquidity and investment
decision.

SCOPE OF THE STUDY:

The study to research focuses on the relationship between investment decisions
and factors like liquidity, financial awareness, and demography. It was found
low risk funds and liquidity of fund scheme are having impact on the investors’
perceptions for investing in mutual funds.

METHODOLOGY
Methodology is a systematic way of solving a problem it includes the research
methpds for soving a problem .

Data sources:

 Primary data : the primary data is collected from the

investor using a questionnaire.
 Secondary data: the data are collected from the various
company websites,magazine,and brochures.
 SAMPLING
The data sample are collected from the questions that are provided to the
different investor in the life insurance company. The survey was conducted by
visiting a different colleges.

o Sample size:
100

DATA COLLECTION
The secondary data will be collected from the annual reports, journals,
magazines and websites.

PLAN OF ANALYSIS
1. The required data for the study will be collected from the secondary data.

2. The collected data will be used to analyses through various approach.

3. At the final stage after data analysis and data interpretation, summary of
findings will be found, conclusions will be drawn and useful suggestion will be
made.

CHAPTER SCHEME
Chapter 1: Introduction: Introduction includes
Industry Profile
 Theoretical background of the study
 Importance of the topic
 Need to study the topic

Chapter 2: Review of Literature and Research Design Review of Literature and Gaps
 Statement of the Problem
 Scope of the Study
 Objectives of the Study
 Hypotheses (if any
 Sampling
 Tools for Data Collection
  Data Analysis
 Limitations of Study

Chapter 3: Data Analysis and Interpretation

Chapter 4: Summary of Findings, Conclusions and Suggestions

 Summary of Findings
 Conclusion
 Suggestions