analysis of investors’ perceptions towards mutual...

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International Journal of Multidisciplinary Research

Vol.1 Issue 8, December 2011, ISSN 2231 5780

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ANALYSIS OF INVESTORS’ PERCEPTIONS TOWARDS MUTUAL

FUND SCHEMES (WITH REFERENCE TO AWARENESS AND ADOPTION OF

PERSONAL AND FAMILY CONSIDERATIONS)

DR.K.LAKSHMANA RAO*

*Research Scholar, Department of Commerce & Management Studies,

Andhra University, Visakhapatnam.

ABSTRACT

The behavioral finance has been recognized as an important area in the study of recent finance literature. It implicit objective is to discover and remedy the deviation from the rational decision making in the investment process. The purpose of this study is to examine

the role of various social-economic factors affectively the investment decision of the investors. The results an obtained from a survey and has been analyzed by the chi-squire test.

The result shows that, socio- economic factors are significantly influence the investment behaviour of the investors.

KEYWORDS: Mutual fund, awareness, adoption, schemes, investors and investment. _____________________________________________________________________

INTRODUCTION

Mutual Fund is a trust that pools the savings of a number of investors who share a common

financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and

the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of

securities at a relatively low cost.

MUTUAL FUND OPERATION

The simplest mutual funds definition is that they are an investment group set up by professional investors and headed by an investment manager. Individuals are then able to invest small amounts of money into the fund for making a reasonable profit. There are an

incredibly large number of mutual funds. While some mutual funds aim to produce short term, high yield profits, others look for the long term profit. But, large segment of people are

scared to invest in the capital market. Some personal and family factors are pulling them in deciding different type of investments. Age, Gender and marital status are some of the socio demographic factors that share the investors’ decision and preference in making investments.

Many studies have shown that age interact with financial information and issues differently. The surveyed literature indicates that younger have different attitudes towards financial

decisions than elder ones. The majority of the published research studies examining the relationship between age and risk tolerance have found that risk tolerance decreases with age.

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The elder is more likely to have low level of risk tolerance; it implies that with age increasing

investors have a decreasing preference for investment on risky assets.

Next to age and income, Gender is the third most powerful determinant of investment

decisions. Gender has also been found to be an important differentiating factor in the classification of risk tolerance as females have consistently been shown to have a lower preference for risk than males. Marital status has also been presumed to impact on financial

risk tolerance; however, the precise nature of the relationship is not clear from revie wed literature. In the forthcoming sections attempts have been made to study the association

between these Personal and family factors and their investment decisions.

REVIEW OF LITERATURE

Rajarajan (2000)1 has attempted to identify predictors of individual investors' expected rate

of return by investigating relationship of demographic variables such as age, income, occupation, employment status and stage in life cycle with investment behavior of an individual in the paper titled, "Predictors of Expected Rate of Return by Individual

Investors". The study was conducted by administering questionnaire to a sample size of 405 investors. The investigation was made across 12 variables. Multiple regression analysis was

used by the researcher to examine the relationship between expected rate of return on investments by individual investors and their demographics. Some investment related characteristics (including risk bearing capacity of investor) were also studied. The study

found that factors like investment size, portfolio choice, and risk bearing capacity are positively related to rate of returns. The variable locus of control was inversely related to rate

of return. The paper concluded that the rate of return was not strongly related to any socio economic variable except age. The author has empirically proved the significant relationship between expected rate of return on investments and demographic variables.

SEBI-NCAER survey (2000)2 was carried out to estimate the number of households, the population of individual investors, their economic and demographic profile, portfolio size,

and investment preference for equity as well as other savings instruments. Data was collected from three lakhs geographically dispersed rural and urban households. Findings of the surve y are: the investors' choice of investment instruments matched the risk perceived by them.

Bank Deposit was the most preferred investment avenue across all income class; 43% of the non- investor households (estimated around 60 million households) apparently lack awareness

about stock markets; and: a relative comparison shows that the higher income group has a greater share of investments in mutual funds compared with low income groups, suggesting that mutual funds have not truly become investment vehicle for small investors'.

Nevertheless, the study predicts that in the next two years (i.e., 2000 hence) the investment of households in mutual funds is likely to increase.

Crosnan and Gneezy (2004)3 in the research work titled "Gender Differences by Preferences" have done an exhaustive review of various studies on gender differences over a period of time. The authors have highlighted the differences in perception on the basis of gender. The

paper explains that there is vast difference as to how men or women perce ive the areas of risk taking, social behavior and competition behavior. The paper establishes that women take less

risk than men. According to the authors the various factors that might be responsible for such a difference in preference may be age, marital status, number of children and culture. The paper further discusses that gender difference by preference is reduced when the outcome is

unsure as in the case of lottery as the perceptions are made on a subjective idea of outcome.

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Similarly the paper establishes the lack of difference in perception when a population

consisting of managers and professionals was studied. The study disclosed that there is no significant difference in the way men or women. Managers think of performance, risk and

other fund characteristics. The authors concluded the study by stating that women are risk averse than men as far as investment decision involving risk was concerned.

The research article by Giessen and Ruenzi (2009)4 titled “Sex Matters: Gender Differences

in the Mutual Fund Industry", 74 investigates gender differences between female and male US mutual fund managers. The research is carried along three broad dimensions of: risk

taking, investment styles, and trading activity. The primary data is gathered from the CRSP Survivor Bias Free Mutual Fund Database. The data for analysis is only of actively managed equity funds that invest more than 50% of their assets in stocks and excludes bond, money

market and index funds. Performance measures of the study are obtained by us ing various statistical tools like regressions, significance testing, Fame’s regression models etc. The findings of the study are that

1. Female fund managers are moderately more risk averse than male fund managers:

2. Female fund managers follow significantly less extreme investment styles as compared to

male fund managers: 3. Female managers investment styles are more stable over a period of time: 4. Male managers trade more than female managers. The authors conclude by elucidating that a fund investor may prefer female manager to manage the fund.

Many researchers are studied different dimensions of investors’ socio-economic profiles of investment to mutual fund schemes. They are found out some important factors

influences their risk perception, investment decisions and savings patron of investors’ investment. Above the literature, there are taken factors are age, gander, marital status, income and educational qualifications. In my research point of view I had taken family and

personal considerations of individual investors to awareness and adoption of different mutual fund schemes.

OBJECTIVES AND METHODOLOGY

The present study is undertaken with the following specific objectives.

To assess the investors’ Awareness of the Mutual Fund schemes and

To study the investors’ Adoption of the Mutual Fund schemes.

The present study attempts to evaluate the investor’s awareness and adoption towards the mutual fund schemes. For the purpose, individual mutual funds investors have been selected. The individual investors’ perception has been confined to the Visakhapatnam,

Vizianagaram and East Godavari districts in Andhra Pradesh only.

This study is based on only primary data sources. For the studying the perception of

investors has been administered of structured questionnaire of the respondents.

350 respondents have been selected for this study, for Visakhapatnam, Vizianagaram and East Godavari districts only. From the total population of the investors of different MF

schemes, different segments are taken in to consideration.

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The data collected form primary source is subjected to statistical treatments. Simple

statistical tools like Percentages, Cross-tabulation, and Chi-square Tests have been used. The chi-square test has been adopted to examine the association between the personal and family

factors with the awareness and adoption of the MF schemes.

TABLE NO.1. PERSONAL AND FAMILY PROFILES OF SAMPLE RESPONDENTS

AGE Respondents %

Below 20 years 7 2.0

21-30 years 45 12.9

31-40 years 140 40.0

41-50 years 109 31.1

51-60 years 31 8.9

Above 60 years 18 5.1

Total 350 100

SEX

Male 298 85.1

Female 52 14.9

Total 350 100

RESIDENCE

Rural 35 10.0

Urban 263 75.1

Semi-Urban 52 14.9

Total 350 100

Size of Family Members

1-2 40 11.4

3-4 197 56.3

5-6 93 26.6

7 and Above 20 5.7

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Source: survey

Majority of the respondents is from 31 to 50 years age, which represents 71.10 per

cent as can be seen from Table no 1. Only 7.10 per cent constitute from both below 20 years and above 60 years. 85.1 per cent constitutes male, who are exercising their preferences in investing.75.1 per cent are from urban and remaining 24.9 per cent is from semi-urban and

rural areas. A major sample size constituting married individuals may indicate that married respondents are aware of the need of savings and investments as it would provide a better

future for themselves and their children. Hence they may look out for alternative investment avenues like mutual funds.

In addition to the above analysis an attempt has also been made to study the

relationship between level of awareness and adoption of the Mutual Fund schemes with different personal and family factors.

In the present highly competitive and volatile market scenario, it is a difficult task to

assess success and failure of any financial service or product. In the last four decades there have been phenomenal changes in the capital market operations. Many new products and

services have been introduced to the financial services industry. A good number of investors have opted for different types of investment vehicles. The government of India with regular amendments and new legislative measures has tried to organize the industry more and more

by giving invitation to new investors. One of the most remarkable observations today is that the leading financial institutions like UTI, other public sector banks and private sector banks

have been many folds with different MF products with attractive features to invite good number of investors into the industry. As per the experience, it is observed that the investors have adopted the scheme of those organizations, which have a good track record of keeping

their promises. Now, the question of the hour is that whether or not the Personal and family factors of the investors have any impact on consumption habit of the mutual funds or not.

Total 350 100

Earning Members

1 160 45.7

2 104 29.7

3 55 15.7

4 Above 31 8.9

Total 350 100

Marital Status

Married 219 62.57

Unmarried 131 37.43

Total 350 100

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RELATIONSHIP BETWEEN AGE AND MUTUAL FUND SCHEMES’ AWARENESS

AND ADOPTION

Amongst different Personal and family factors, age has been found as one of the

important and influential variable in influencing purchasing behavior of the customers. Particularly in case of tangible products this relationship has been tested. But, here, in this study the attempt is made to find out whether or not any relation between the age and

awareness and adoption of different mutual fund schemes exists by the investors. The impact of investor’s age on their awareness and adoption of different schemes have been evaluated

and the observations have been presented in the Table No. 2 and 3.

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TABLE: 2. STATEMENT OF ASSOCIATION BETWEEN AGE AND MF SCHEMES AWARENESS

Schemes Equity Fund Balanced Fund ELSS Debt Fund MMMF

Ages yes % no % yes % no % yes % no % Yes % no % yes % no %

below 20 5 1.43 2 0.57 4 1.14 3 0.86 6 1.71 1 0.29 5 1.43 2 0.57 3 0.86 4 1.14

21-30 23 6.57 22 6.29 31 8.86 14 4.00 39 11.14 6 1.71 37 10.57 8 2.29 35 10.00 10 2.86

31-40 131 37.43 9 2.57 126 36.00 14 4.00 121 34.57 19 5.43 124 35.43 16 4.57 81 23.14 59 16.86

41-50 86 24.57 23 6.57 82 23.43 27 7.71 78 22.29 31 8.86 89 25.43 20 5.71 58 16.57 51 14.57

51-60 29 8.29 2 0.57 23 6.57 8 2.29 26 7.43 5 1.43 19 5.43 12 3.43 13 3.71 18 5.14

Above -60 11 3.14 7 2.00 13 3.71 5 1.43 10 2.86 8 2.29 8 2.29 10 2.86 7 2.00 11 3.14

Total 285 81.43 65 18.57 279 79.71 71 20.29 280 80.00 70 20.00 282 80.57 68 19.4 197 56.29 153 43.71

Chi-

Square 50.29772511 16.77219509 16.91873707 28.77863819 14.1045316

DF 5 5 5 5 5

p-value 0.0001 0.005 0.0047 0.0001 0.015

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TABLE: 3. STATEMENT OF ASSOCIATION BETWEEN AGE AND MF SCHEMES’ ADOPTION

Schemes

Equity Fund Balanced Fund ELSS Debt Fund MMMF

Ages Ye

s % no % yes % no % yes % no %

Ye

s % no %

Ye

s % no %

below 20

4 1.14 3 0.86 5 1.43 2 0.57 4 1.14 3 0.86 2 0.57 5 1.43 1 0.29 6 1.71

21- 30 37 10.5

7 8 2.29 19 5.43 26 7.43 37

10.5

7 8 2.29 41

11.7

1 4 1.14 26 7.43 19 5.43

31-40 71 20.2

9 69

19.71

39 11.1

4 101

28.86

74 21.1

4 66

18.86

67 19.1

4 73

20.86

65 18.5

7 75

21.43

41-50 43 12.2

9 66

18.86

31 8.86 78 22.2

9 40

11.43

69 19.7

1 59

16.86

50 14.2

9 47

13.43

62 17.7

1

51-60 23 6.57 8 2.29 18 5.14 13 3.71 25 7.14 5 1.43 21 6.00 10 2.86 22 6.29 9 2.57

Above-60

7 2.00 11 3.14 8 2.29 10 2.86 7 2.00 11 3.14 5 1.43 13 3.71 8 2.29 10 2.86

Total 185 52.8

6 165

47.14

120

34.29

230

65.71

187

53.43

162

46.29

195 55.7

1 155

44.29

169 48.2

9 181

51.71

Chi-

Square 18.3695 30.81826 39.43695 36.06663 12.71618

DF 5 5 5 5 5

p-value 0.0025 0.0001 0.0001 0.0001 0.0262

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It is observed from Table No.2 and 3 that the respondents between 31 to 40

years of age have highest awareness and adoption of different mutual fund schemes. Next to this segment other two segments of the respondents are 41

to 50 years and 51 to 60 years those have good awareness and have adopted schemes accordingly.

Equity fund Schemes are aware by 37.43 per cent respondents in the 31 to 40

years age group, and at the same time when the adoption rate is compared, it is observed that in the same age group (31-40 years), 20.29 percent respondents

have purchased this scheme. Above 61 years and 20 years below of age have both low awareness and adoption of Equity fund Schemes.

It is observed that the respondents in the 31-40 years age group have highest awareness of all the schemes mentioned in the Table No.2, which average

33.31 percent. There are negligible differences in their awareness of the different schemes. More or less the 31-40 years age group investors have tried to acquire more information about all those schemes. Next to this age group

are in 41-50 years age group with approximately awareness counting 22.45 percent and in 51-60 years with 6.28 percent respectively. But in above 61

years age and below 20 years age, the respondents awareness are comparatively very less, and accordingly also their investments are comparatively much less.

Again when the respondents adoption rates are examined, it is observed that this is the same 31-40 years age group respondents has highest adoption

percentage, with approximately for all these schemes, is 18.05 percent, followed by 41-50 years Age with 12.57 percent and 21-30 years with 9.14 percent.

As the P-values of the all mutual fund schemes are less than 0.05( level of significance) , so I conclude that there is an associa tion between age group of

awareness and adoption of all mutual fund scheme.

RELATIONSHIP BETWEEN RESIDENTIAL STATUS AND MUTUAL FUND

SCHEMES’ AWARENESS AND ADOPTION

The concept of mutual fund has come with the objective of mobilizing resources from small as well as medium investors, who are otherwise not going for

investing in corporate securities. How small may be the quantum of investment, but one can buy mutual fund products. But, it is experienced that the people who are residing in urban area are getting more exposure to different savings product, even

though the marketers are trying to reach with both urban and rural people. To examine the trend of awareness and adoption of the mutual fund schemes indifferent

residential status, an analysis is attempted here and the observations have been presented in the Table No. 4 and 5.

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TABLE: 4 STATEMENT OF ASSOCIATION BETWEEN RESIDENTIAL STATUS AND MF SCHEMES’ AWARENESS

7


yes %

n

o % yes %

n

o % yes %

n

o % yes %

n

o % yes % no %

Rural 25 7.14 10 2.86 23 6.57

12 3.43 28 8.00 7 2.00 6 1.71

29 8.29 25 7.14 10 2.86

Urban 218

62.29

45

12.86

229

65.43

34 9.71

206

58.86

57

16.29

230

65.71

33 9.43

146

41.71

117

33.43

Semi-Urban 42

12.00

10 2.86 27 7.71

25 7.14 42

12.00

10 2.86 34 9.71

18 5.14 36

10.29 16 4.57

Total 285

81.43

65

18.57

279

79.71

71

20.29

276

78.86

74

21.14

270

77.14

80

22.86

207

59.14

143

40.86

Chi-

Square 2.700693 37.88414 0.185782 91.38903 5.810008

DF 2 2 2 2 2

p-value 0.2592 0.0001 0.9113 0.0001 0.0547

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TABLE: 5 STATEMENT OF ASSOCIATION BETWEEN RESIDENTIAL STATUS AND MF SCHEMES’ ADOPTION

Schemes


yes % no % yes % no % yes % no % yes % no %

Ye

s % no %

Rural 8 2.29 27 7.71 20 5.71 15 4.29 15 4.29 20 5.71 16 4.57 19 5.43 17 4.86 18 5.14

Urban 185

52.86 78

22.29

136

38.86

127

36.29

136

38.86

127

36.29

156

44.57

107

30.57

129

36.86

134

38.29

Semi-

Urban 14 4.00 38

10.8

6 28 8.00 24 6.86 25 7.14 27 7.71 29 8.29 23 6.57 23 6.57 29 8.29

Total 207

59.14

143

40.86

184

52.57

166

47.43

176

50.29

174

49.71

201

57.43

149

42.57

169

48.29

181

51.71

Chi-

Square 55.06176 0.405321 1.087801 2.406125 0.404984

DF 2 2 2 2 2

p-value 0.0001 0.8166 0.5805 0.3003 0.8167

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No doubt about the fact that the urban people have up-to-date and modern

living standard due to their exposure to the new products and services. The marketers of the products and services start their marketing activities from the

urban segment. In my observation from Table No. 4 and 5, it is observed that the Urban People have greater awareness and adoption of the scheme.

From the rate of awareness and adoption of different schemes it is a question

mark about the understanding of the features of different schemes by the investors. They have more or less same level of awareness (52 to75.42 per

cent) and adoption (43.43 to 56.86 per cent) for different types of the schemes.

As the P-values of the balanced fund and debt fund schemes are less than

0.05( level of significance) , so I conclude that there is an association between respondents residential status and awareness of balanced fund and debt fund schemes, and one more interesting observation is equity fund , ELSS and MMMF

schemes are greater than level of significance, so there is no assoc iation between respondents residential status and awareness of equity, ELSS and MMMF schemes .

In the adoption point of view, as the p-value of the equity fund schemes is less than level of significance, so I conclude that there is an association between respondents residential status and adoption of the equity fund scheme., one more important

observation is remaining all mutual fund schemes are greater than level of significance, so there is no association between residential status and adoption of the

balanced fund, ELSS, debt fund and MMMF schemes.

RELATIONSHIP BETWEEN RESPONDENTS’ NUMBER OF FAMILY

MEMBERS AND MUTUAL FUND SCHEMES’ AWARENESS AND

ADOPTION

It is usually believed that the savings behaviour of the people is influenced by

available surplus income at the disposal. Whereas, there is a corresponding effect on the quantum of expenditure with the increase in number of family members. So obviously uses of savings instrument will have reciprocal effect. Here an attempt is

made to evaluate the impact of number of family members in the awareness and adoption of the schemes. The observations have been presented in the TableNo.6 and

7.

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TABLE: 6. STATEMENT OF ASSOCIATION BETWEEN NUMBER OF FAMILY MEMBERS AND MF SCHEMES’ AWARENESS


Family Members

yes %

no %

Yes %

no %

Yes %

no % yes % no % yes % no %

1 _ 2 36

10.2

9 4 1.14 35

10.0

0 5 1.43 34 9.71 6 1.71 35

10.0

0 5 1.43 31 8.86 9 2.57

3 _ 4 176

50.29

21 6.00

145

41.43

52 14.86

157

44.86

40 11.43

134

38.29 63 18.00

117

33.43 80 22.86

5 _ 6 68

19.4

3

2

5 7.14 62

17.7

1

3

1 8.86 54

15.4

3

3

9 11.14 43

12.2

9 50 14.29 29 8.29 64 18.29

7 Above 18 5.14 2 0.57 17 4.86 3 0.86 16 4.57 4 1.14 17 4.86 3 0.86 17 4.86 3 0.86

Total 298

85.14

52 14.86

259

74.00

91 26.00

261

74.57

89 25.43

229

65.43

121 34.57

194

55.43

156 44.57

Chi-

Square 14.49268 7.662275 18.6961 27.73039 38.3476

DF 3 3 3 3 3

p-value 0.0023 0.0535 0.0003 0.0001 0.0001

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TABLE: 7. STATEMENT OF ASSOCIATION BETWEEN NUMBER OF FAMILY MEMBERS AND MF SCHEMES’ ADOPTION


Family Member

s

ye

s % no %

Ye

s % No %

Ye

s % no %

ye

s % no %

ye

s % no %

1 _ 2 23 6.57 17 4.86 31 8.86 9 2.57 28 8.00 12 3.43 16 4.57 24 6.86 19 5.43 21 6.00

3 _

4 56

16.0

0

14

1 40.29 57

16.2

9

14

0 40.00 48

13.7

1

14

9 42.57 36

10.2

9

16

1 46.00 39

11.1

4

15

8 45.14

5 _ 6 43

12.29 50 14.29 34 9.71 59 16.86 23 6.57 70 20.00 16 4.57 77 22.00 19 5.43 74 21.14

7 Above 12 3.43 8 2.29 11 3.14 9 2.57 9 2.57 11 3.14 6 1.71 14 4.00 5 1.43 15 4.29

Total 134

38.29

216 61.71

133

38.00

217 62.00

108

30.86

242 69.14 74

21.14

276 78.86 82

23.43

268 76.57

Chi-

Square 20.83416 35.89768 36.12704 11.30986 14.86156

DF 3 3 3 3 3

p-value 0.0001 0.0001 0.0001 0.0102 0.0019

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It is observed from the Table No. 6 that the families containing 3-4 family

members have greater awareness of mutual fund schemes, followed by the families containing 5-6 numbers. Likewise, as it is seen in Table 7, also, it is

also found that there two families have higher adoption of different categories of schemes.

But, when scheme-wise awareness and adoption rates with number of family

members are compared, it is observed that there are no significant differences in awareness and adoption of the schemes. This trend reveals that the

marketing strategy adopted by the firms have not brought clearly in differentiating amongst the schemes.

As the P-values of the equity fund, ELSS, debt fund and MMMF schemes are less than 0.05( level of significance ), so I conclude that there is an association between respondent family members and awareness of the equity fund, ELSS, debt

fund and MMMF schemes , and one more interesting observation is balanced fund scheme is greater than level of significance, so there is no association between

respondents family members and awareness of balanced fund scheme. And in the adoption point of view, as the p-values of all the mutual fund schemes are less than level of significance, so I conclude that there is an association between respondent’s

family members and adoption of the all mutual fund schemes.

RELATIONSHIP BETWEEN NUMBER OF FAMILY EARNING MEMBERS

AND MUTUAL FUND SCHEMES’ AWARENESS AND ADOPTION

Generally, it is observed that with increase in earning members in the family, the quantum of income is multiplied and accordingly the standard of living of the

concerned family is improved. At the same time they prefer and adopt new products and services. An attempt is made here to evaluate such increased income over the

awareness and adoption of the schemes. The observations have been presented in the table No. 8 and 9.

It is observed that with increase in earning family members, there is neither

increase in awareness or adoption of the schemes. Rather it is noticed that there is reverse trend in both awareness and adoption of the schemes.

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TABLE: 8. STATEMENT OF ASSOCIATION BETWEEN NUMBERS OF EARNINGS FAMILY MEMBERS &MF SCHEMES’

AWARENESS


Earning

Members

ye

s %

n

o % yes %

n

o %

Ye

s % no % yes % no % yes % no %

1 155

44.29 5 1.43

157

44.86 3 0.86

142

40.57 18 5.14

141

40.29 19 5.43

144

41.14 16 4.57

2

10

0

28.5

7 4 1.14 95

27.1

4 9 2.57

10

0

28.5

7 4 1.14 99

28.2

9 5 1.43 90

25.7

1 14 4.00

3 31 8.86 24 6.86 28 8.00

27 7.71 28 8.00 27 7.71 20 5.71 35 10.00 24 6.86 31 8.86

4 Above 24 6.86 7 2.00 16 4.57 15 4.29 19 5.43 12 3.43 9 2.57 22 6.29 13 3.71 18 5.14

Total 310

88.57

40 11.43

296

84.57

54 15.43

289

82.57 61 17.43

269

76.86 81 23.14

271

77.43 79 22.57

Chi-

Square 76.97781 99.75563 65.64597 121.6429 77.68915

DF 3 3 3 3 3

p-value 0.0001 0.0001 0.0001 0.0001 0.0001

ZENITH



ww

w.z

enit

hre

sear

ch.o

rg.in

1

91

TABLE: 9. STATEMENT OF ASSOCIATION BETWEEN NUMBERS OF EARNINGS FAMILY MEMBERS &MF SCHEMES’

ADOPTION

schemes Equity Fund Balanced Fund ELSS Debt Fund MMMF

Earning

Members

Ye

s % no %

Ye

s

% no % Ye

s

% no % Ye

s

% no % Ye

s

% no %

1 115

32.86

45 12.86

93 26.5

7 67

19.14

84 24.0

0 76

21.71

78 22.2

9 82

23.43

88 25.1

4 72

20.57

2 69 19.7

1 35

10.0

0 52

14.8

6 52

14.8

6 15 4.29 89

25.4

3 61

17.4

3 43

12.2

9 49

14.0

0 55

15.7

1

3 15 4.29 40 11.43

14 4.00 41 11.7

1 21 6.00 34 9.71 13 3.71 42

12.00

18 5.14 37 10.5

7

4 Above 9 2.57 22 6.29 9 2.57 22 6.29 9 2.57 22 6.29 7 2.00 24 6.86 6 1.71 25 7.14

Total 20

8

59.4

3

14

2

40.5

7

16

8

48.0

0

18

2

52.0

0

12

9

36.8

6

22

1

63.1

4

15

9

45.4

3

19

1

54.5

7

16

1

46.0

0

18

9

54.0

0

Chi-Square 47.81 22.40701 40.17089 25.11308 18.03035

DF 3 3 3 3 3

p-value 0.0001 0.0001 0.0001 0.0001 0.0004

ZENITH



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92

In case of most of the schemes, awareness level is around 40 percent, whereas the

adoption percentage is less than to the awareness level.

As the P-values of all mutual fund schemes are less than 0.05 (level of significance), so it

can be concluded that there are an association between respondent family member’s earnings and awareness and adoption of all mutual fund schemes.

SUGGESTIONS

Based on the investigation through the survey, the following suggestions are made for the policy makers, mutual fund asset management companies and the investing public:

1. Majority of the investing respondents were found to be in the age group of 31 to 50 years. Investment schemes tailored to the senior citizens need to be developed by mutual funds.

2. People belonging to the age group more than 60 years were found to be less aware of different investment schemes. Mutual funds cannot afford ignoring the increasing number

of aged Indian society and hence measures to increase the awareness of these senior citizens about different investment schemes need to be designed and implemented.

3. It was found from the study that urban people were more aware of the benefits and costs

of different investment schemes than the rural. As more than 80 percent of the Indian society resides in rural areas, it is strongly recommended to increase the awareness of the

rural population about the existing investment schemes.

CONCLUSION

In my concluding words, I have the opinion that the three leading categories of agencies

involved i.e., (i) the Regulatory authorizes like SEBI, IRDA; (ii) AMFI and (iii) MF Asset Management Companies have to conduct educational and orientation programmes in

collaboration with yet other three kinds of leading organizations i.e., (i) Universities, (ii) Institutes and (iii) Stock Exchanges, on various aspects of MF Schemes, so that the investors will enhance their knowledge for making more prudent investment decisions. Further studies

may be undertaken to unfold various other aspects like Performance and Challenges of Mutual Funds. Such studies will provide guidance to the Investors on the changes and challenges faced

by the Mutual Funds. This kind of integrated effort will produce a lot of value addition to the Wealth of the Nation.

REFERENCES

1. Rajarajan, V., 2000. Predictors of Expected Rate of Return by Individual, Investors. The Indian Journal of Commerce, Vol.53 (4), 65:70, Oct-Dec.

2. NCAER, 2000.Survey of Investors, Securities Exchange: Board of India, New Delhi. 3. Crosnan, R., and U.Oneezy, 2004.Gender Differences by Preferences. Retrieved from

http://www.hks.harvard.edu/ wappp /research/ rachelcrosonandurigneez.pdf.

4. Giessen and Ruezi (2009) “Sex Matters: gender Differences in the Mutual Fund Industry”.

analysis of investors’ perceptions towards mutual...

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