LITERATURE REVIEW

(Mr. Kanwal Gurleen Singh, Dr. Sukhmani, Ms. Neha Kalra

2022) examined the ‘Mutual funds in Indian Scenario’ to
make an in depth analysis of Indian mutual fund industry and to
explore the future prospect of mutual funds in India.
They found out that Investors are gradually moving away from
traditional investment avenues such as banks, post offices, and
government securities due to declining interest rates. Mutual
funds are gaining popularity as a viable investment option,
offering investors access to the stock markets and bonds while
providing professional expertise. The mutual fund industry in
India has grown substantially, providing safety, liquidity, and
growth to investors. The awareness of mutual funds among
investors has increased, leading to further growth opportunities
for the industry. Patient investors who make long-term
investments are likely to retire comfortably and sleep well,
despite not having exciting anecdotes to share at parties. With
the availability of thousands of mutual funds, individual stocks,
and investment plans, investors have a plethora of options to
choose from.
B' and 'C' class cities are growing rapidly. Today most of the
mutual funds are concentrating on the 'A' class cities. Mutual
fund can penetrate rural like the Indian insurance industry with
simple and limited products.

(Sumathy Mohan, Jisha Tp, 2022) conducted a research to

explore ‘Awareness and perception of investors towards
mutual fund investments’ to measure the level of awareness
of investors on mutual fund investment and to examine the
factors influencing the investors for investing mutual fund.
They found out that Mutual fund investment has gained
popularity among individuals, but it is observed that only
qualified persons are investing in them. While high-income and
low-income groups are not willing to invest much in mutual
funds, the middle-income groups are the ones who are
predominantly investing in them. Individuals mostly get
information about mutual funds through advertisements,
financial advisors, and social media. The primary reason for
people to invest in mutual funds is the better return policy they
offer. There is a direct relationship between the level of income
and the period of investment. Most investors prefer investing in
growth income funds and regular return funds.
To attract the young generation towards mutual fund
investments, awareness should be spread among schools and
colleges. Fund managers should invest money according to the
objectives of investors. Adequate information about mutual
funds should be provided to the common people through
advertisements. Since investors may not have sufficient
knowledge about the schemes of mutual funds, it is crucial that
the managers are experts and provide timely information to
them.

(Elizabeth Nedumparambil, K. Bhandari, 2022) conducted a

research to explore ‘Risk factors, uncertainty, and
investment decision in mutual funds in India’.
They found out that there exists a statistically significant
relation between the performance of a fund and flows. It
indicated that a naïve model, wherein the performance of a
fund is evaluated solely based on the excess returns generated
over the risk free rate, is used by investors in India. It
suggested that investors fail to adjust for exposure to the risk
factors when choosing between funds. It suggested that the
CAPM outperforms both the TFM and the FFM in explaining the
mutual fund flows which means e investors discount only the
returns associated with the market risk while evaluating
alternative investment opportunities. In other words, on an
average, investors are more likely to adjust for market risk while
assessing the performance of a fund. They found out that
uncertainty is a significant determinant of investment decisions.
They found that the mutual fund investors in India places
highest weight on returns, adjusted for market return or risk-
free return, while evaluating alternative funds. This implies that
investors fail to discount returns associated with market, size,
value, and momentum factors; and reward the fund managers
with additional funds. the study suggested that majority of the
mutual fund investors in India are naïve and make investment
decisions based on superficial information. They found out that
impact of uncertainty varies depending on the market
conditions, and that in general uncertainty has a negative
impact.

(Dr. Puneet Kaur, Dr. Harpreet Kaur, 2022) conducted a

research to study ‘Mutual funds as investment vehicle from
consumers’ perspective’ to study the market trends of mutual
fund investment in India, to find out the customer’s perception
towards mutual funds as an investment option, in comparison
to the various investment avenues available and to find out if
there is a relation between demographics like age, gender and
occupation of the individual and the investment decision made
by them towards mutual funds.
They found out that most of the respondents belong to age
group of 18-24 years. The factors which respondents prefer
while investing in mutual funds are tax benefits and lesser risk
associated. They are more focused with regard to mutual funds
as well as fixed deposits due to moderate amount of risk
associated. The channel preferred by respondents as per the
study are financial advisors and the mode preferred while
investing is Systematic Investment Plan (SIP) with the
expectation in returns is 10% - 15%. They also found out that
investors are only aware regarding the specific scheme in
which they have already invested or have partial knowledge
about mutual funds. there is significant difference between age
group of consumers and their perception towards investment in
mutual funds. There is also significant difference between
gender and consumers’ perception towards investment in
mutual funds.

(Dr. Umang Mittal, Divya Sharma, 2022) conducted this

research to study ‘SEBI rules and regulations of Mutual
Funds in India’ to understand different rules and regulations
laid down in India to regulate the mutual fund and various
process of SEBI in regulating Mutual Fund Markets.
They found out that SEBI has taken necessary step towards
ensuring due diligence and transparency in all investment
decisions. SEBI protects the interest of investors that’s why
SEBI regulate mutual fund as well. However, the penalties must
be more serious and appropriate, so that the market
participants can save from malpractices. SEBI also regulate
and register the financial intermediaries. It must ensure that
new norms for corporate disclosures have more depth and are
implemented over a shorter time period.

(Surendra Verma, Dinesh Nema, 2022) conducted a research

on ‘An empirical study on mutual funds in India’ to analyse
the resource mobilization by the mutual fund industry, the
sector-wise status of resource mobilization by mutual fund
industry, the scheme-wise status of resource mobilization by
mutual fund industry.
They found out that from 2014 onwards several regulatory
measures were taken by the SEBI to rationalize mutual fund
schemes in order to bring uniformity, which plays a crucial role
in the development of the mutual fund industry in India.The
study noticed that there is a shift in saving from physical assets
to financial investments mainly due to the implementation of
several new regulations such as demonetization, Benami
transactions (prohibition) amendment Act 2016, and Real
estate regulation and development Act 2016 (RERA).The
Indian mutual fund industry recorded the highest ever resource
mobilization as net Assets under Management (AUM) recorded
more than ₹ 30 trillion in the financial year 2021.The mutual
fund net Assets under Management (AUM) as a percentage of
GDP has touched a record high of 15.4 percent in the financial
year 2021.The study also found that mutual fund net Assets
under Management (AUM) to total bank deposit ratio increased
to 31.3 percent in the financial year 2021. On the basis of
sector-wise classification, the study found that a major portion
of the resource is mobilized by the private sector mutual funds
companies, as of 31st March 2021 it is 82.57 percent of total
net assets under management. On the basis of scheme-wise
classification, the study found that Debt-oriented schemes
(Income schemes) account for the majority of mutual funds and
it is in decreasing trends as it decreases to 46.62 percent from
64.10 percent between 2015 to 2021. The Equity oriented
schemes (Growth schemes) account for the second position of
mutual funds and on average it contributes 32.36 percent
during 2015-2021. The Balanced schemes are in increasing
trends as the study shows the Balanced scheme increased to
10.91 percent from 2.45 percent during 2015-2021. The
Exchange-traded funds are also in increasing trends as the
study shows the Exchange traded fund increased to 9.83
percent from 1.35 percent during 2015 to 2021.

(Dr Ninad Murlidhar Gawande, Dr. Sudha Swaroop, Dr.

Reena Singh, Mr Ankur Lohiya, Dr. Rohit Bansal, Dr. Sunil
Adhav, 2022) conducted a research for a ‘Study on investor’s
perception towards mutual funds in India’ to analyze the
investors’ behaviour towards mutual funds.
They found out that most of the respondents are ready to take
moderate risk in their portfolio. Majority of the respondents feel
that they are partially aware and only some respondents are
fully aware about mutual fund investments. The respondents
are also asked about their belief in the wealth creation through
the mutual fund. Majority of the respondents believe in that at
very high level, very few respondents do not have such belief.
The respondent’s belief on the regular return from the mutual
fund investment shows that only some respondents have very
high belief. Investors' perceptions of risk, investors' perceptions
of the individual investments they hold, the characteristics of
mutual fund features, and the quality of fund management were
found as elements that effect investors' views of mutual funds.
However, it is essential for companies in India that deal in
mutual funds to have a solid understanding of the most
significant factors that should be taken into consideration while
establishing mutual fund products and other investment plans.
It is concluded that the perception towards the investment is
strongly influence on the mutual fund investment.

(Dr. Madhavi Sripathi, Ms. A.V.L.Srilekha, 2022) conducted a

research for ‘A study on Performance of Equity Diversified
Mutual funds’ to analyse the fluctuations in National Stock
Exchange (NSE) of selected equity diversified mutual funds, to
evaluate the risk and return of selected equity diversified
mutual fund, to evaluate the performance of selected equity
diversified mutual funds.
They found out that equity diversified mutual funds are the best
available tools in modern financial markets, but one has to be
clear about the tools in mutual funds and how they can be
effectively used. There is an increasing trend in mutual funds
as it reduces the risk of individual investors. Mutual fund
companies offer different schemes based on the market trend.
In this context, most of the employees are interested to invest
in systematic investment plan (SIP) business persons are
interested to invest in equity funds etc. This equity diversified
mutual funds help the investors to reduce the risk helps to get
more return in the mutual funds.