CHAPTER 3

RESEARCH METHODOLOGY

Research is not only concerned to the revision of the facts and building up to date knowledge
but discover new facts involved through the process of dynamic changes in the society.
Methodology is defined as a system of methods and rule to facilitate the collection and
analysis of data. It provides the starting point for choosing and approach made of theories,
data, concept and definition of the topic (Hart, 1998).
2.1 Research design
Research design is a framework or blueprint for conducting the marketing research projects.
It explains the procedure necessary for obtaining the information needed to structure or solve
research problems. The present research design was exploratory in the initial stages then after
gaining the insights into the problem it was verified and quantified by conclusive research.
The form of conclusive research design adopted for the study.
The objective of exploratory research is to explore or search through a problem or situation to
provide insights and understanding. Descriptive studies involve collection of data through
structured design and survey method is followed in order to get the needed information. It is
typically based on representative sample which was used to description and define the
behavior of the respondents.
2.2 Research Methodology
The researcher adopted convenient sampling technique for the selection of study area. A
sample of 107 respondents (salaried class individuals in Mumbai) was taken. Well-structured
questionnaire was used for collecting primary data by survey method.
The study is designed to gather descriptive information for conducting study in more
practical manner. For testing hypothesis and interpreting relationship analytical study is used,
therefore the study makes use of quantitative research approach.
2.3 Objectives of Research
1. To know more about the mutual fund.
2. To analyse the perception of investors towards the mutual fund as an investment.
3. To study the benefits and limitations of mutual fund.
4. To study working of mutual fund.
5. To find out investors preference towards mutual fund.
2.4 Hypotheses of the Study
H0 – Most of the investors does not prefer mutual fund for investment as compare to other
investment option.
H1 - Most of the investors prefer mutual fund for investment as compare to other investment
option.
2.5 Scope of the Study
This paper provides information about Future of Mutual Funds industry as well as awareness
level amongst people for Mutual Funds. Also this report gives an outlook how the mutual
funds are performing in the current market situation as an alternate investment avenue. And
the people preference about the investment. This paper on mutual funds is informative the
students who want to understand and undertake assignments in the Mutual fund industry.
This study helps to the general people who can understand the importance and explore the
new option for investment in Mutual Funds. Different financial institutions provide services
that are both complementary to and competitive with each other. A well-built financial
system directly contributes to the growth of the country.
2.6 Limitation of Study
1) Time:
The study is related to the period of one months but this period is not sufficient for the
comparative study of tax planning. Within three months it is not possible to collect data from
respondents and it is limitation for the research work.
2) Respondent’s bias:
As the topic is related to individuals tax planning, many respondents were opposed to give
details regarding tax related matters income. Study is related to individual tax matter hence
mostly respondents have not responded fully and accurately.
3) Area of research:
For this topic the three months time period is less, Therefore the area selected for the research
study is also limited
2.8 Data Collection Methods and Instruments
This research primarily used the primary data. The data is mainly in quantitative form. The
intended primary data is collected through Survey Method. The survey conducted through a
Questionnaire Method as instrument of data collection. The researcher intended to include in
the questionnaire roughly not more than 20 questions. While preparing a questionnaire a care
is taken to include such questions which shall try to meet the need of obtaining responses in
line with the predetermined objectives of the study. Apart from the primary data, some
secondary information (wherever it is required) is collected through authentic reports,
journals, books and manuals
2.9 Data Analysis Methods.
This work primarily demands quantitative data analysis through the interpretation of
responses obtained from the questionnaire. These responses anlayzed through descriptive
statistics for understanding the basic statically characteristics of the qualitative data.
2.10 Sampling techniques
The researcher adopted convenient sampling method. In this sampling a questionnaire was
distributed to salaried class people in Mumbai city by making Google form. To understand
the problems a selected research was done by the researcher based on the knowledge and
personal judgment.

2.11 Sample size

The sample in the study was restricted to 107 respondents keeping in mind of research
objectives and constraints. The respondents were classified into two groups based gender i.e.
male and female.
Particulars No. Of Respondents
Male
Female

2.12 Data collection method

To fulfill the specific objective both primary and secondary sources were used to collect the
data. Primary data is the core methodology used by the research to conduct the research. A
structured questionnaire was the main tool for collecting the primary data. There was formal
and informal data collection from salaried class people in Mumbai to study on awareness
about tax planning amongst and investment avenues preferred by salaried class people in
Mumbai. Relevant and reliable data was collected from various secondary data from reports,
journals, research papers, etc. Updated information was also gathered from authentic
websites.