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A STUDY ON INVESTORS

PERCEPTION TOWARDS
MUTUAL FUND WITH
SPECIAL REFERENCE TO
AXIS BANK (PUDUCHERRY)

Under the Guidance Of: By:


Shri. G. MADAN MOHAN Anitha Kumari
Asst. Professor, DMS, PU MBA 2nd year, DMS, PU
Flow Chart of Mutual Fund
Objectives of the
study

The researcher endeavours to study the level of awareness

among investors in Puducherry about investing in MF, and to


study relationship between the demographics of the investors
and various aspects related to investments, particularly in
MF.
Research Methodology
Research design : Descriptive study
Sample frame : Sample area for the study shall be
Axis Bank (Puducherry).
Sample Population : Sample population shall be the customers
of the Axis bank who have invested in mutual fund.
Sample size : 100
Sample technique : Random sampling
Research approach : Survey method
Data collected : Primary and secondary method
Sampling tool : Structured questionnaire method
Statistical package : SPSS 16.0
Data Analysis : Percentage, Correlation, Cross tab
& Chi-Square
Data Representation : using frequency table and graphical
representation.
FINDINGS OF THE STUDY
KIND OF INVESTMENTS INVESTORS
PREFERRED MOST
Chart Title
55
60 41 44
50 30
40
30 13 17 19
20
10
0

KNOWLEDGE LEVEL OF MUTUAL


FUND INVESTOR
40
32
40
35 17
30
25 11
20
15
10
5
0
SOURCE OF KNOWLEDGE ABOUT
MFS
Financial Advisors 42

Banks 27

Peer Group 4

Advertisement 24

0 5 10 15 20 25 30 35 40 45

% AMOUNT OF INVESTED IN
50
49
MFs
45
40
35
30 25
25
20 16

15 10
10
5
0
" " " " " " " "
MODE OF INVESTMENT
PREFERRED
MODE FREQUENCY

One Time Investment 37

Systematic Investment Plan 63

SOURCE OF
40 36 INFORMATION
35 29
30
25
16
20 14
15 10
10 6 5
5
0
0
70

60 58

LEVEL OF RISK 50
39
40

30

20

10
3
0
High Moderate Low

EXPERIENCE IN
More than 4 years 30

FINANCIAL
MARKETS
1 to 4 years 41

Less than a year 29

0 5 10 15 20 25 30 35 40 45
REASONS FOR INVESTING IN MUTUAL FUND OF AXIS BANK

REASONS FOR SELECTING AXIS MUTUAL FUND Frequency

Product knowledge of Axis staff 37


Performance knowledge of Axis mutual fund 20
Axis Brand Name 33
Axis mutual fund charge structure 10
Total 100

Majority of the respondents prefer investing in MF of a particular company due


to the knowledge possessed by the companys staff about their MF, while those
who choose MF company based on brand name are also closely following.
AMOUNT INVESTED IN MF * ANNUAL INCOME CHI-SQUARE
Amount invested in
MF * Annual Income Up to Rs. Rs. 1.2 to Rs. 3 to Above Rs.
1.2 lakh 3 lakhs 4.8 lakhs 4.8 lakhs Total
"less than 25,000" 5 25 13 6 49
"25,000 to 40,000" 2 14 5 4 25
"40,000 to 70,000" 1 3 1 5 10
"more than 70,000" 0 2 7 7 16
Total 8 44 26 22 100

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 19.856a 9 0.019

49% of the respondents have invested Rs. 25,000 annually in Mutual funds, and these groups are earning annual
income of Rs. 1.2 to 3 lakhs. Since the valuation of significance using chi-square at (df of 9) is 0.019, there
exists a significant dependency relationship between income of the respondents and the amount invested by the
mutual funds.
KIND OF INVESTMENTS / ANNUAL INCOME CROSS TAB

KIND OF
INVESTMENTS / ANNUAL Up to Rs. Rs. 1.2 to Rs. 3 Lakhs Above Rs.
Total
INCOME 1.2 Lakh 3 Lakhs to 4.8 Lakhs 4.8 Lakhs

Bank Deposits
2 20 6 13 41
Life Insurance
4 22 14 15 55
Mutual Funds
4 16 16 8 44
Post Office NSC
2 3 3 5 13
Shares / Debentures
1 7 5 4 17
Gold / Silver
2 10 8 10 30
Real Estate
1 6 8 4 19

It can be observed from the above table that most of the Mutual
Fund investors belong to the middle income group of 1.2-4.8 lakhs.
KIND OF INVESTMENTS * OCCUPATION CROSS TAB

KIND OF INVESTMENTS
* OCCUPATION Govt. Private Total
Sector Sector Business Agriculture Others

Bank Deposits
6 19 7 0 9 41
Life Insurance
6 25 16 0 8 55
Mutual Funds
4 21 12 0 7 44
Post Office-NSC
2 5 1 0 5 13
Shares / Debentures
2 10 3 1 1 17
Gold / Silver
3 18 4 0 5 30
Real Estate
1 8 4 1 5 19

It can be observed from the above table that majority of the mutual fund
investors are occupied in the private sector.
AMOUNT INVESTED IN MUTUAL FUNDS *
OCCUPATION
CROSS TABULATION (CHI-SQUARE)
AMOUNT INVESTED Occupation
IN MUTUAL FUNDS
Govt. Private
Sector Sector Business Agriculture Others Total
"less than 25,000" 5 30 7 0 7 49
"25,000 to 40,000" 4 10 8 1 2 25
"40,000 to 70,000" 2 7 1 0 0 10
"more than 70,000" 0 5 7 0 4 16
Total 11 52 23 1 13 100

Chi-Square Tests

Asymp. Sig. (2-


Value Df sided)
Pearson Chi-Square 19.378a 12 0.080

The value of significance using Pearson Chi-Square (df of 12) is 0.080, which
indicates that there is no significant dependency relationship between the amount invested
in mutual funds and occupation of the investors.
LEVELS OF RISK * AGE - (CHI-SQUARE)
RISK *AGE < 30 years 30 - 40 years 40-50 years > 50 years Total
High 2 1 0 0 3
Moderate 17 16 4 2 39
Low 25 22 8 3 58
44 39 12 5 100

(df of 6) is 0.976
LEVELS OF RISK * QUALIFICATION - (CHI-SQUARE)
RISK AND Less than Under Post Technical /
QUALIFICATION graduate Graduate Graduates Professional Total
High 0 1 1 1 3
Moderate 1 14 16 8 39
Low 2 26 19 11 58
Total 3 41 36 20 100
(df of 6) is 0.966
LEVELS OF RISK * OCCUPATION - (CHI-SQUARE)
RISK AND Govt. Private
OCCUPATION Sector Sector Business Agriculture TOTAL
Others
High 1 1 1 0 0 3
Moderate 3 20 11 1 4 39
Low 7 31 11 0 9 58
TOTAL 11 52 23 1 13 100
(df of 8) is 0.702
KNOWLEDGE LEVEL OF MUTUAL FUND * AGE CROSS-TAB (CHI-SQUARE)

Knowledge level of mutual 30 - 40 40-50 > 50


< 30 years TOTAL
fund investor / age years years years
Totally ignorant 20 16 2 2 40
Partial knowledge of mutual
13 12 6 1 32
funds
Aware only about the
6 5 4 2 17
specific scheme invested
Fully Aware 5 6 0 0 11
TOTAL 44 39 12 5 100

Chi-Square Tests

Asymp. Sig. (2-


Value df sided)
Pearson Chi-Square 10.202a 9 0.334

The value of significance using Pearson Chi-Square (df of 9) is 0.334, which indicates there is
no significant dependency relationship between the knowledge level of mutual fund and age.
KNOWLEDGE LEVEL OF MF * QUALIFICATION (CHI-SQUARE)
Knowledge level of mutual
fund investor * Qualification
Less than Under Post Technical /
graduate Graduate Graduate Professional Total
"Totally ignorant" 1 18 15 6 40
Partial knowledge of mutual
funds 1 10 12 9 32

Aware only about the specific


scheme invested 0 7 8 2 17

Fully Aware 1 6 1 3 11
Total 3 41 36 20 100

Chi-Square Tests

Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 8.554a 9 0.479

The value of significance using Pearson Chi-Square (df of 9) is 0.479, which indicates there
is no significant dependency relationship between the knowledge level of mutual fund and
qualification.
KIND OF AXIS MF INVESTMENT SCHEMES
Kind of Axis Investment
Less than 30 30 to 40 40 to 50 More than
Schemes * Age Total
years years years 50 years
"Axis equity" 12 16 4 1 33
Axis ELSS scheme 6 3 0 1 10
Axis triple advantage fund 9 4 1 0 14
Axis gold ETF fund 9 10 4 0 23
Other Fund 8 6 3 3 20
Total 44 39 12 5 100

Majority of the respondents belonging to the age group of 30 to 40 years, prefer to invest
in Axis equity fund. The value of the correlation is 0.077(+), which signifies the existence
of a positive correlation between the kind of Axis MF investment schemes preferred by
investors and their age.
Suggestions & Recommendations

Customers of Axis Bank seem to be attracted to the Mutual fund of Axis Bank
because of the good services provided by the bank staff and reasonable and average
returns, while customers prefer other Mutual fund companies because of the high
returns provided by such companies and Strong brokerage support.

Axis bank must publicise its schemes in a more effective manner, so that
information reaches the ignorant masses, not only about its schemes, but also about
Mutual fund investment in general.

The bank may organize awareness campaigns, such as organizing periodic


conferences and workshops about mutual fund investments and the schemes
available in the bank, so that ignorant masses may be transformed into prospective
market.
UE ..
TI N
C ON

The Bank should try to focus more on investors who are young, those who are
earning medium income and those who are occupied in the service sector.

Customer follow up should be timely so that the customer may not have problem in
getting any information regarding the company and about the new products.

Regular Market surveys should be conducted to be aware of changing needs and


demands of customers promptly.

Past performance should be checked as regards returns of the financial


instruments before investing. Better cooperation from the staff side of the company
will also enhance the companys image.

So that the customer may not have problem in getting any information regarding
the company and about the new products.
CONCLUSION

India still has a huge opportunity in mutual fund investment area.

Still it has immense scope to grow at a huge level. Hence, some

strides taken shall yield very good results, which will be good for the

Mutual fund industry in general, and Axis Bank in particular.