Journal 

of Business Management & Social Sciences Research (JBM&SSR)          ISSN No: 2319‐5614   
Volume 2, No.8, August 2013                                                                                                                                 
_________________________________________________________________________________ 
 
A Study On Customer Perception Towards
UTI Mutual Funds At Trichy Town
Ms.R.IDHAYAJOTHI, Assistant Professor, Centre for Research Department of Commerce, Srimad Andavan Arts
and Science College, Trichy
Dr.O.T.V.LATASRI, Head of the Department, Centre for Research Department of Commerce, Srimad Andavan Arts
and Science College, Trichy.
Ms.R.MALINI, Assistant Professor, Centre for Research Department of Commerce, Srimad Andavan Arts and
Science College, Trichy

ABSTRACT
Financial market was affected by the ‘financial behaviour of investors’. With the reforms of indutria1 policy, public
sector, financial sector and the money developments in the Indian money market and capital market, mutual funds that
has become an important portal for the small investor. Mutual fund was also influenced by their financial behaviour
(VA. Avadhani, 2005).
Donald R. Lichtenstein derived the behaviour and expectation of the Investors from Understanding your Investors in
journal of consumer affairs. Which suggests that the vast majority of equity mutual fund managers do not posses
differential information that allow them to achieve above average market returns for their investor. In a market
economy, different in scheme choices across the investor may reflect in differences in individual tastes and preferences
and/or differences in information.
This paper analyse the ‘customer attitude towards UTI mutual funds. In that we study the perception, interest of the
customers and the performance of the UTI mutual funds. For our study the data was collected through both primary
and secondary sources. Primary data was collected through a questionnaire. The research was done in the form of
direct personal interviews. The total sample consists of 120 respondents. The data were collected through the survey
method. Simple Percentage Analysis and Cross Table Analysis are the main statistical tools used for this study.
Key Words: Mutual Fund, Portfolio, Perception, Simple Percentage and Cross Table Analysis.

Perception UTI mutual fund follows an investment approach of

Perception is the process of attaining awareness or
understanding of the environment by organizing and
interpreting sensory information. All perception
involves signals in the nervous system, which in turn
result from physical stimulation of the sense organs.
Perception depends on complex functions of the
nervous system, but subjectively seems mostly
effortless because this processing happens outside
conscious awareness.
Perceptions vary from person to person. Different
people perceive different things about the same
situation. But more than that, we assign different
meanings to what we perceive. One might change
one’s perspective or simply make things mean
something else.
Introduction of UTI Mutual Fund
UTI’s investment philosophy is to deliver consistent
and stable returns in the medium to long term with a
fairly lower volatility of fund returns compared to the
broad market. It believes in having a balanced and
well-diversified portfolio for all the funds and a
rigorous in-house research based approach to all its
investments. It is committed to adopt and maintain
good fund management practices and a process based
investment management.
giving as equal an importance to asset allocation and
sectoral allocation, as is given to security selection
while managing any fund. It combines top-down and
bottom-up approaches to enable the portfolios/funds
to adapt to different market conditions so as to
prevent missing an investment opportunity.
Problem Statement
In India, though the mutual fund industry has been in
existence since 1964, (with the establishment of
UTI); no major study has been done regarding the
investor behavioural aspect with specific reference to
MFs, in India. It should be noted that the
“expectations” of investors play a vital role in the
financial markets. They influence the price of the
securities, the volume traded and various other
financial operations in actual practice. These
‘expectations’ of investors are influenced by their
“perception” and humans generally relate perception
to action.
The beliefs and actions of many investors are
influenced by the dissonance effect and endowment
effect. A study on the Investors Perception about
Investment in Mutual Funds this is study attempt to
evaluate the behavioural aspects of fund selection
techniques of individual investors and also to assess

www.borjournals.com                                                               Blue Ocean Research Journals          1 
 
Journal of Business Management & Social Sciences Research (JBM&SSR)          ISSN No: 2319‐5614
Volume 2, No.8, August 2013                                                              
_________________________________________________________________________________ 
the conceptual awareness of MFs during the period,
March 2012- August 2012).
Need For The Study
Now a day’s service to customers is an important
issue. The service rendered by UTI has deteriorated
and is also subject to criticism from all quarters. What
is customer service today may be different from
service of tomorrow and a bad service thereafter. The
customers of UTI are often facing delays, refusal of
service and grievances in services of agents and like.
UTI mutual fund is now entering a new phase of
development, shifting the emphasis towards
improvement in the quality of customer service and
thereby achieving operating efficiency and
profitability. The study on ‘customer attitude towards
UTI mutual funds was important to Trichy town as
the sale of UTI mutual funds was very less as
compared to other funds. The marketing and sales
personnel at wished to know the reason for this less
rice towards UTI mutual fund schemes.
Objectives Of The Study:
a) To study the investment pattern and the
perception of the customers of UTI mutual fund.
b) To study the interest of customers on additional
investment in UTI mutual fund.
c) To study the present performance of UTI mutual
fund with that of the past.
Data Collection Method: Survey Method
Data was collected through both primary and
secondary data sources. Primary data was collected
through a questionnaire. The research was done in the
form of direct personal interviews.
   
                                                                   
A primary data is a data, which is collected for the
first time for a particular interest to collect more
information. In this study, the primary data was
collected using questionnaire.
Secondary Data
Secondary data consist of information that already
exists somewhere, having been collected for some
other purpose. In this study secondary data was
collected from company, magazines and brochures.
SAMPLING DESIGN
The sample consists of the entire customers of Trichy
town who have invested in UTI mutual funds. The
entire population consists of 120 respondents who
have invested in UTI mutual fund schemes.
Scope Of The Study
The research study undertaken does not probe too
much about whether the respondents have a very fine
insight into UTI mutual funds. The research revolves
around a general awareness level and attitude of the
customers towards UTI mutual funds. The research
would reveal results about the customer attitude
towards UTI mutual fund, their investments patterns,
UTI, customer service and to improve the marketing
of UTI mutual funds.
Statistical Tools
Simple Percentage Analysis and Cross Table
Analysis are the main statistical tools used for the
study.
Calculation of Percentage:

Primary Data
Table 1 Source Primary Data
Distribution of Respondents Based on Gender Category
Male 89 74.16
Female 31 25.84
Total 120 100
Distribution of Respondents Based on Age Category
Below 20 2 1.6
21-30 26 21.6
31-40 40 33.33
41-50 23 19.16
Above 50 29 24.16
Total 120 100
Distribution of Respondents Based on Educational Status
HSC 5 4.17

www.borjournals.com                                                               Blue Ocean Research Journals          2 
 
Journal of Business Management & Social Sciences Research (JBM&SSR)          ISSN No: 2319‐5614   
Volume 2, No.8, August 2013                                                                                                                                 
_________________________________________________________________________________ 
 
Graduate 73 60.83
Post Graduate 33 27.5
Professional 9 7.5
Total 120 100
Distribution of Respondents Based on Occupation
Salaried 92 76.66
Self Employed 9 7.5
Professional 9 7.5
Retired 10 8.34
Total 120 100

Table 1 denotes out of 120 respondents, 74.16% of
the respondents are male and 25.84% of the
respondents are female. In the age categories, 33.33%
of the respondents are in the age group of 31-40
years, 60.83% of the respondents are graduates,
27.5% of the respondents are postgraduates and 7.5%
of the respondents are professionals are shown in the
educational status. 76.66% of the respondents are
salaried, 7.5% of the respondents are self-employed
and professionals, remaining 8.34% of the
respondents are retired. This source of data was
collected by primary data collection method.

TABLE – 2

Distribution based on guidance and advice

Excellent 35 29.17
Satisfactory 71 59.17
Poor 14 11.66
Total 120 100
Supply and collection of forms by agents
Excellent 89 74.17
Satisfactory 25 20.83
Poor 6 5
Total 120 100
Opinion about the schemes NAV
Excellent 27 22.5
Satisfactory 73 60.83
Poor 20 16.66
Total 120 100
Source: Primary Data
29.17% of the respondents have stated that the excellent, regarding opinion about the schemes NAV,
guidance and service offered by UTI agents are 22.5% of the respondents have stated that the NAV of
excellent, 59.17% of the respondents have stated that their scheme is excellent, 60.83% of the respondents
it is satisfactory shown in Table 2. 74.17% of the have stated that it is satisfactory
respondents have stated that the agent service is

www.borjournals.com                                                               Blue Ocean Research Journals          3 
 
Journal of Business Management & Social Sciences Research (JBM&SSR)          ISSN No: 2319‐5614   
Volume 2, No.8, August 2013                                                                                                                                 
_________________________________________________________________________________ 
 
TABLE – 3
Distribution on period of investment
Below 1 year 40 33.33
1-3 year 60 50
More than 3 years 20 16.67
Total 12 100
Distribution on frequency of investment
Monthly 34 28.33
Quarterly 21 17.5
Half yearly 17 14.6
Annually 48 40
Total 120 100
Distribution based on % of income invested
Below 5% 38 31.6
5%-10% 68 56.6
11%-15% 12 10
Above 15% 2 1.6
Total 120 100
Distribution based on type of scheme invested
Debt 8 6.67
Equity 79 65.83
Balanced 13 10.83
All 20 16.67
Total 120 100
Distribution based on reason for investment
Capital gain 78 65
Regular income 20 16.67
Tax benefits 14 11.67
Liquidity 8 6.66
Total 120 100
Source: Primary Data
Table 3 shows that 33.33% of the respondents are income in UTI mutual fund, the type of scheme
investors of UTI mutual fund for less than 1 year, investment 65.83 % of the respondents have invested
regarding frequency of investment 28.33% of the in equity schemes, the major reason for investments
respondents invest monthly in UTI mutual fund, 65% of the respondents have invested for the purpose
56.6% of the respondents invest 6%-10% of their of capital gains.

TABLE – 4

Highly Highly
Distribution of opinion Satisfied No opinion Dissatisfied Total
Satisfied Dissatisfied

Satisfaction 77 16 0 21 6 120
Percentage % 64.16 13.33 0 17.5 5 100

www.borjournals.com                                                               Blue Ocean Research Journals          4 
 
Journal of Business Management & Social Sciences Research (JBM&SSR)          ISSN No: 2319‐5614   
Volume 2, No.8, August 2013                                                                                                                                 
_________________________________________________________________________________ 
 
Capital appreciation 68 17 0 35 0 120
Percentage % 56.67 14.16 0 29.17 0 100
Portfolio 29 20 62 9 0 120
Percentage % 24.17 16.66 51.17 7.5 0 100
Management 7 14 77 8 14 120
Percentage % 5.83 11.67 64.17 6.66 11.67 100
Performance 11 22 48 25 14 120
Percentage % 9.17 18.33 40 20.83 11.67 100
Source: Primary Data

Table 4 indicates that, out of 120 respondents 77 satisfied, management shows that 64.17% are marked
respondents are satisfied and the percentage was as no opinion and the performance cater 20.83% are
64.16%, Capital appreciation 56.67% respondents are dissatisfied and 9.17% are satisfied in the UTI mutual
satisfied, regarding portfolio 16.66% are highly funds.

TABLE – 5
Distribution of Table relating occupation and type of scheme invested

Debt Equity Balanced All Grand Total

Occupation /
Type of scheme No. of % No. of % No. of % No. of % No. of %
invested Responde Responde Respo Respon Respon
nts nts ndents dents dents

Salaried
8 6.66 80 66.67 4 3.33 0 - 92 76.66
Self employed
0 - 0 - 9 7.50 0 - 9 7.50
Professional
0 - 0 - 0 - 9 7.50 9 7.50
Retired
0 - 0 - 0 - 10 8.33 10 8.33

Grand Total 8 6.66 80 66.67 13 10.83 19 15.83 120 100

Source: Primary Data
Table 5 indicates that, out of 120 respondents, 9
Professional respondents and 10 Retired
respondents are invested in all types of UTI mutual
fund and the
percentage denotes 7.50% and 8.33%. The major
portion of investment scheme is Equity, which was
invested by the salaried people and the percentage
was 66.67%, and 6.66% in Debt and remaining
3.33% in balanced schemes. The self-employed
people invested in the balanced fund, the
percentage denotes 7.50%.
Findings
a) Out of 120 respondents 74.16% respondents
are male and 25.84% respondents are female.
b) 33.33% of the majority of the respondents are
in the age group of 3l - 40 years.
c) 60.83% of the majority of the respondents are
graduates.
d) 76.66% of the majority of the respondents are
salaried.
e) 64.16% of the majority of the respondents are
satisfied with the schemes of UTI mutual fund.
f) 50% of the majority of the respondents are
investors of UTI mutual fund between 1 - 3
years.
g) 65.83% of the majority of the respondents
have invested in equity schemes.
h) 65% of the majority of the respondents have
invested in UTI mutual fund for capital gains.
i) 59.17% of the majority of the respondents
have stated that the guidance and advice
offered by UTI agents are satisfactory.
j) 74.17% of the majority of the respondents
have stated that the agent service of UTI on
supply and collection of forms is excellent.

www.borjournals.com                                                               Blue Ocean Research Journals          5 
 
Journal of Business Management & Social Sciences Research (JBM&SSR)          ISSN No: 2319‐5614   
Volume 2, No.8, August 2013                                                                                                                                 
_________________________________________________________________________________ 
 
k) 56.67% of the majority of the respondents [2] Kothari, C.R. Second Edition (1997), Research
satisfied with the capital appreciation of UTI Methodology- Methods and Techniques.
mutual fund. [3] M.Y. KHAN, “Financial Services”, Tata
l) 51.17% of the respondents have no opinion McGraw-Hill Publishing Company Limited
about the schemes portfolio. (2005), 3rd Edition.
m) 64.17% of the respondents have no opinion [4] V.A.Avadhani (2003). Himalaya Publishers,
about the management of schemes. Security Analysis and Portfolio Management.
n) 60.83% of the respondents have stated that the [5] www.amfiindia.com
NAV of their scheme is satisfactory. [6] www.mutualfunds.com
o) 40% of the majority of the respondents have [7] www.utimf.com
stated that the performance of UTI mutual fund
is neutral.  
p) 66.66% of the salaried respondents have
invested in equity schemes.

Suggestions
a) Most of the respondents are not aware of the
schemes portfolio, dividends and scheme
management of UTI mutual fund. To create
awareness proper guidance can be given to
them.
b) A regulated investor friendly seminar can be
organized to suit the timings of the investing
public. Such seminars can be interactive
sessions.
c) Since the guidance and advice offered by the
UTI agents are not up to the mark, the agents
should be trained and they should be more
conscious on advising a particular scheme.
d) Efforts should be taken to popularise UTI
mutual fund through appropriate publicity
measures so that it reaches the rural areas and
the nook and corner of the city.
e) As majority of the respondents are salaried,
which should be concentrated on and the
company should popularize schemes like
Systematic Investment Plan to increase their
market penetration through promotional
activities.

CONCLUSION
The study revealed that the investors have
greatest preference for capital appreciation.
The level of awareness about UTI mutual fund
schemes can be enhanced through the efforts
of the company. Since many investors are not
sure of investing again in UTI mutual fund, the
company should take efforts to make them
invest again. The statistical analysis of data
has given insight into investor demographics
and their investment preferences. UTI mutual
fund has its own brand name and thereby it
must improve its operations through its
performance and service.

References:
[1] C.R.Kothari (2003), New Age International (p)
Ltd, Research methodology.

www.borjournals.com                                                               Blue Ocean Research Journals          6