A

WINTER PROJECT REPORT

ON

“A STUDY ON FACTORS INFLUENCING INVESTMENT IN MUTUAL FUND”

SUBMITED BY:

PARMAR DIVYA P.

MBA SEMESTER - IV

IN PARTIAL FULLFILLMENT FOR THE AWARD OF THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION (MBA)

(2019-2021)

UNDER THE GUIDENCE OF

DR.NAMRATA KHATRI.

SUBMITTED TO:

DEPARTMENT OF BUSINESS AND INDUSTRIAL MANAGEMENT

MBA PROGRAMME

AFFILIATED TO VEER NARMAD SOUTH GUJARAT UNIERSITY, SURAT

ACADEMIC YEAR :- 2020-2021

1
DECLARATION

2
3
COLLEGE CERTIFICATE

4
 ACKNOWLEDGEMENT

I am Divya pravinbhai Parmar the student of Department of Business and Industrial Management,
G. H. Bhakta Management Academy, Surat, I wish to express my sincere thanks to my guide

Dr. Namrata khatri for making available all facilities in fulfilling the requirement for the research
work. And constant help and support at all stages of this project has enabled me to complete it.

Last but not least, I am also grateful to all the people who helped me directly and indirectly in
making this report successfully. And continuous support has boosted my moral towards working on
this report.

5
 EXECUTIVE SUMMARY

This study examines the factors that influence investment in mutual fund. The objective behind this
study is to identify various factors that influence investment in mutual fund and to prioritize those
factors that investor consider important while making investment in mutual fund.

This study is based on exploratory research design and both primary and secondary data have been
collected. The primary data is collected through structured questionnaire and secondary data were
collected through websites, journals, etc. 120 responses were collected in this study.

The results of the study discovered that investors have their primary objective of Tax saving,
maximizing returns and minimizing their risk in mutual fund. The investors always prefer high
returns as their first priority followed by low risk, liquidity and safety of money as factors that
influence them to make investment in mutual fund. The results of the study also indicate the
underlying factors of importance that were extracted namely company related factors and personal
factors. The relationship of these factors with the demographic details of investors is ascertained.
The study concludes that mutual funds are good investment tool & the factors and investors
perception plays a very vital role in the investment of mutual fund.

6
 INDEX

SR PARTICULARS PAGE NO.

NO.
1 INTRODUCTION
7-12
2 LITERATURE REVIEW
13-17
3 RESEARCH METHODOLOGY
18-20
4 DATA ANALYSIS
21-34
5 FINDING AND CONCLUSION
35-39

7
 INTRODUCTION

1. Investment:
An investment is an asset or item acquired with the goal of generating income or appreciation.
Appreciation refers to an increase in the value of an asset over time.

Investment is the act of committing money or capital to an endeavor a business, project, real estate,
etc. with the expectation of obtaining an additional income or profit. In general terms investment
means the use of money to gain higher rate of return against savings or the investments.

Investment is the use of capital to create more money through the acquisition of a security that
promises the safety of the principal and generates a reasonable return.

❖ Basic Objectives of investment:

Any investor who makes investment in any assets, securities or real Estate makes sure he gets
safety, income, capital growth, tax benefits & liquidity from the investment.

i) Safety: An investment can be termed as a safe investment when it gives you good returns with
relatively little or no risk at all. Though there are lots of investment options, but every
investment cannot be regarded as a safe investment.

ii) Income: It is money that an investor earns from an increase in the value of investments. It
includes dividends paid on stocks, capital gains derived from property sales and interest earned on
a savingsor money market account.

iii) Capital growth: It is an increase in the value of an investment over time. It is measured by the
difference between the current value, and market value, of an investment and its purchase price,
or the value of investment at the time it was acquired.

8
iv) Tax minimization: Minimizing taxes from investment activities is important because it’s one of
the few aspects of investing that an investor can gain significant control over. Paying attention to
the tax consequences of investing can substantially increase long-term wealth and increase
spendable income.

v) Liquidity: Liquidity generally refers to how easily or quickly a security can be bought or sold in
a secondary market. Liquid investments can be sold readily and without paying a hefty fee to get
money when it is needed.

❖ Factors that Influence in investment of Mutual Fund are:

a) Safety of money
b) Children marriage & education
c) Security of life after retirement
d) Tax saving
e) Regular & best returns
f) Education level, etc…

9
❖ Investment options in India:

10
2. Mutual Fund:
The SEBI (Mutual Funds) Regulations 1993 define a mutual fund as a fund established in the
form of a trust by a sponsor to raise money by the Trustees through the sale of units to the public
under one or more schemes for investing in securities in accordance with these regulations.

A mutual fund comprises four separate entities, namely sponsor, mutual fund trust, AMC and
custodian. The sponsor establishes the mutual fund and gets it registered with SEBI.

According to the Mutual Fund Fact Book (Published by the Investment Company Institute of the
U.S.) “A Mutual Fund is a service organization that receives money from shareholders, invests it,
earns returns on it, attempts to make it grow and agrees to pay the shareholder cash on demand
forthe current value of his investment”.

❖ How mutual fund work:

When you purchase a mutual fund, you are pooling money with investors. The money pooled
together by you and other investor are managed by a fund manager who invests in financial
assets such as bonds, stocks, etc. the mutual fund is managed on daily basis. The returns from it
are then passed on to the investor.

Below is the diagram of how it works:

10
➢ SETTING UP OF A MUTUAL FUND:-
A mutual fund is set up in the form of a trust, which has Sponsor, Trustees, Asset Management
Company (AMC) and Custodian.

SPONSOR-
The trust is established by a sponsor or more than one sponsor who is like promoter of a company.

TRUSTEES-
The trustees of the mutual fund hold its property for the benefit of the unit holders. The
trustees are vested with the general power of superintendence and direction over AMC. They
monitor the performance and compliance of SEBI Regulations by the mutual fund.

AMC-
Asset Management Company (AMC) approved by SEBI manages the funds by making
investments in various types of securities. A highly regulated organization that pools money
from many people into a portfolio structured to achieve certain objectives. Hence it is termed
as an Asset Management Company. Typically an AMC manages several funds - open-end
/closed-end across several categories
- Growth, income, balanced. Every mutual fund has an AMC associated with it.

CUSTODIAN-
The custodian, an independent organization, has the physical possession of all securities
purchased by the mutual fund, and undertakes responsibility for its handling and safe keeping.
For instance, the Stock Holding Corporation of India Ltd (SCHIL) is the custodian for most
fund houses in the country.

11
❖ Advantages of mutual fund:
i) Liquidity: It’s easy to get your money out of a mutual fund. Write a cheque, make a call,
andyou’ve got the cash.

ii) Convenience: You can usually buy mutual fund shares by mail, phone, or over the internet.

iii) Low cost: Mutual fund expenses are relatively less as compared with other investments.

iv) Transparency: All materials and facts are disclosed to investor as required by the
regulator. Funds provide investors with the updated information in the market.

v) Flexibility: Investors can switch from holdings from a debt scheme to an equity scheme and
vice- versa. Investors also benefit from the convenience and flexibility offered by mutual
fund.

vi) Tax benefits: There are some schemes which provide tax benefits to the customers/investors.

vii) Professional management: Most mutual fund pay a topflight professionals to manage
their investments. These managers decide what securities the investors will buy or sell.

❖ Disadvantages of mutual fund:

i) No guarantee: No investment is risk free. If the entire stock market declines in value, the
value of mutual fund shares will go down as well, no matter how to balance the portfolio.

ii) Fees and commission: All fund charges administrative fees to cover their day-to-day
expenses. Some funds charges sales commissions to compensate brokers, financial
consultants, or financialplanners.
iii) Management risk: When you invest in mutual fund, you depend on the fund manager to
make the right decisions regarding the fund portfolio. If the manager does not perform as
well as you expected him to perform, you might not make as much money on your
investment as you expected.

12
LITERATURE REVIEW

13
Literature Review: 1
Author: (Varun Sagar Singal, 2018)
Title: “Factors Affecting Investment in Mutual Fund”
Objectives:
- To find out the factors affecting investment decision on mutual funds and the impact of behavioural
factors on an investor.
- To finding about the factors that prevent the people to invest in mutual funds.
Sample design: In this study both exploratory as well as descriptive research design has been used.
And data are collected through self-administered structured questionnaire is used as survey for
primary data collection.
Sample methodology: The study is done on the proportionate quota sampling technique.
Sample size: The sample size in this study was 226 citizens of SDMC.
Conclusion: The study integrates constructs from the factors affecting investment in mutual funds
into an insightful investment model [IM] for adoption. The results indicate that the fundamental
factors and investor perception play a very vital role in the investment decision making process.

Literature Review: 2
Author: (Selim Aren, 2015)
Title: “The Factors Influencing Given Investment Choices of Individuals”
Objectives:
- To examine the effects of several factors such as demographic, investment decision criteria &
financial literacy on more preferred investment alternatives in Turkey.
Sample methodology: In this study the data are analyzed through hypothesis, validity and reliability
testes.
Sample Size: The sample of 112 respondent’s response was taken in this study.
Conclusion: this study provides considerable findings regarding the determinants of given investment
instruments (i.e., foreign currency, bank deposit, bond, stock and mutual fund). Besides, it can be
suggested for future research to include some notable psychological factors such as personality traits
and emotional intelligence into their research models.

14
Literature Review: 3
Author: (Rajesh Kumar, 2014)
Topic: “Factors Affecting Perception of Investors Towards Mutual Funds”
Objectives:
-Purpose behind making investment in mutual funds
-Sources of information relied upon by investors
-Investors’ perception regarding benefits offered.
Sample design: The researcher used primary data for data collection through structured questionnaire.
Sample methodology: The methods used in the research were tabulation, percentage, ranking, scoring
and weight average score, and coefficient of concordance etc.
Sample size: 200 respondents were taken from all over the Punjab state, 50 respondents from each
districts were taken.
Conclusion: Majority of the investors were satisfied with the performance of their mutual funds and
majority of them want to invest private sector mutual funds and growth and diversified schemes in
future. A very bright future has been expected of private sector mutual fund industry as against bright
future expected of public sector.

Literature Review: 4
Author: (T. Velmurugan, 2015)
Topic: “A Study on Factor Influencing Mutual Fund Investment - Special Reference to Investor in
Pharmaceutical Sector at Chennai Metro City”
Objectives:
-To identify the factors influencing mutual fund investment decision
-To prioritize the various factors and analyze the major factors which influence investment decision
in mutual fund.
Sample design: The researcher used primary data and collected data through structured questionnaire
from doctors, engineers and IT professionals.
Sample methodology: The analysis has done through various statistical techniques such as cronbach’s
alpha for reliability, regression, factor analysis etc.
Sample size: Researcher has collected data from 105 respondents of Chennai metro city.
Conclusion: It was concluded that in the analysis there were various factors that has been identified
for taking investment decision making in mutual funds. The most important factors are fund size,
rating by rating agency, redemption facility of funds, prompt settlement, and fund sustainability
playing crucial role in investor taking investment decision in mutual fund.

15
Literature Review: 5
Author: (Chawla, 2014)
Topic: “An Empirical Analysis of Factors Influencing Investment in Mutual Funds in India”
Objectives:
-To understand the mutual fund buying behaviour of individual investors.
-To identify the various attributes which investors consider important while investing in mutual funds.
-To extract the underlying factors of importance and their relative considerations for investors.
-To examine whether these extracted factors vary with demographic variables.
Sample design: The researcher has done exploratory research and conducted unstructured interviews
along with structured questionnaire.
Sample methodology: The researcher used reliability test using Cronbach’s alpha, scoring & one-way
ANOVA.
Sample size: This analysis includes sample of 431 responses from online and personally contacted
investors.
Conclusion: It has been found that past performance of the issuing company, tax-saving funds and
growth funds with capital appreciation are the important considerations for investors in a mutual fund.
It is surprising to know from our study that more than 54 per cent of investors want a capital
appreciation and higher return along with tax savings and low risk.

Literature Review: 6
Author: (Dr. V. Ramanujam, 2014)
Topic: “A Study on Factors Influencing for Investment in Mutual Fund among the Investors With
Reference to Madurai District”
Objectives:
-To study the mutual fund investment decision among the investors;
-To reveal the important factors among the different customer segments in mutual funds market
Sample design: Both primary as well as secondary data was used in the research and pre structured
interview was scheduled.
Sample methodology: The researcher used T-Test, One-way Analysis of Variance, factor analysis, &
multiple regression analysis was used for data analysis.
Findings: The highly considered factors to select the mutual fund scheme among the individual
investors are performance and nature of fund. The factors considered for selecting the mutual fund
identified by the factor analysis are the nature of fund, performance, company services, fund manager
and personal factor.

16
Literature Review: 7
Author: (Rao, 2016)
Topic: “Factors Influencing Investors in Mutual Funds Selection”
Objectives:
-To identify the factors that influence the investor’s fund/ scheme selection.
-To find out the savings objective of the investors
-To identify the savings methods preference of the investors.
Sample design: The study is based on descriptive design and the researcher has used primary data for
data collection through structured questionnaire.
Sample methodology: In this paper simple statistical techniques are used by researcher such as
percentage, mean, Standard deviations and factor analysis for data analysis.
Sample size: The sample size in the research was 382 from which 302 investors gave full, satisfactory
& complete questionnaire.
Conclusion: Mutual fund companies should allow the investors to participate in giving information
regarding the design of the products and to reveal their attitude, preferences towards the investment.
They should educate the investors as literacy levels in India are low and financial literacy even lower.
So, the opportunity lies in not getting more money from existing customers.

17
RESEARCH METHODOLOGY

18
 RESEARCH METHODOLOGY

1) Problem Statement:
“A Study on Factors Influencing Investment in Mutual Fund”

2) Objectives:
i. Primary Objective:
• To examine factors that influence investment in mutual fund

ii. Secondary Objectives:

• To identify the factors that influence mutual fund investment decision.
• To identify various attributes which investors consider important while investing in mutual
fund.

3) Variables of the study:

• Source of information
• Experience of investors
• Mutual fund schemes
• Security
• Objective of investors
• Investors choice
• Investors interest towards mutual fund

4) Research Design:
The study is based on exploratory research design in nature. A detail about present situation can
be found out by the exploratory study.

5) Sources of Data collection:

This project Primary & secondary data will be used for data collection. Primary data will be
collected through structured questionnaire & secondary data will be collected from websites,
various research papers etc.

6) Sample size:
For this research the sample size of 120 respondents will be collected.

7) Data collection instrument:

In this research study structured questionnaire is used as data collection instrument.

19
8) Analytical tools:
Descriptive statistics (Percentage).

9) Limitations of the study:

The present study is based upon the results of survey conducted on 120 mutual fund investors.
The implications of the study are subject to the limitations of sample size, psychological and
emotional characteristics of surveyed population.

20
DATA ANALYSIS

21
 DATA ANALYSIS

Q:1 Gender:

Male [ ] Female [ ]

Gender

Frequency Percent Valid Percent Cumulative Percent

Valid Male 95 41.3 79.2 79.2

Female 25 10.9 20.8 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Gender
Male Female

21%

79
%

Interpretation:

The demographic profile of respondents shows that the majority of investors are males 79% & 21% are
females. So, we can interpret that males are more interested in investing in mutual fund than females.

22
Q: 2 Age:

Below 20 [ ] 21 to 30 [ ]
31 to 40 [ ] 41 to 50 [ ]
Above 50 [ ]

Age

Cumulative
Frequency Percent Valid Percent Percent

Valid Below 20 22 9.6 18.3 18.3

21 to 30 69 30.0 57.5 75.8

31 to 40 12 5.2 10.0 85.8

41 to 50 13 5.7 10.8 96.7

Above 50 4 1.7 3.3 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Ag
Age
69 eee
80 eee
60 eee
40
eee
22
ee 12 13
20 4

0
Below 20 21 to30 31 to 40 41 to 50 Above 50

Interpretation:
As shown in the graph, majority of investor’s age is between 21 to 30 years i.e. 57.5% of investors are from
21 to 30 years out of 120 respondents, 18.3% of respondent’s age is Below 20 years, 10.8% respondent’s age
is from 41 to 50 years. 10% of respondent’s age is 31 to 40 years. 3% of above 50 years. This shows that the
age group of 21 to 30 years investors will be more influenced by the factors of the Mutual Fund.

23
Q:3 Qualification:

Schooling [ ] Under graduate [ ]

Graduate [ ] Post graduate [ ]

Qualification

Cumulative
Frequency Percent Valid Percent Percent

Valid Schooling 3 1.3 2.5 2.5

Under graduate 21 9.1 17.5 20.0

Graduate 16 7.0 13.3 33.3

Post graduate 80 34.8 66.7 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Qualificatio
Qualification
non 80
80

60

40
21
16
20
3

0
Schooling Under graduate Graduate Post graduate

Interpretation:
The table shows the education level of the respondents. The majority 66.7% respondents are post
graduate, 13.3% are graduate, 17.5% of respondents are under graduate, 2.5% of respondents have
done schooling. So, we can interpret that educated people are more interested in investing in Mutual
Fund.

24
Q: 4 Occupations:
Salaried [ ] Business [ ]
Retired [ ] Housewife [ ]

Occupation

Cumulative
Frequency Percent Valid Percent Percent

Valid Salaried 33 14.3 27.5 27.5

Business 71 30.9 59.2 86.7

Retired 9 3.9 7.5 94.2

House wife 7 3.0 5.8 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Occupation

80 71

60
33
40

20 9 7

0
Salarie Busines Retired House
d s wife

Interpretation:

The occupation of the respondents is shown in graph. The majority of respondent are Business
59.2%, 27.5% of respondents are Salaried, 7.5% are retired respondents, 5.8% are housewife, So,
we can interpret that businessman, Salaried and others are more likely to get influence by factors of
in Mutual Fund.

25
Q: 5 Annual Incomes:
Below 2,00,000 [ ] 2,00,001 to 4,00,000 [ ]
4,00,001 to 6,00,000 [ ] 6,00,001 to 8,00,000 [ ]
Above 8,00,00 [ ]

Annual income

Cumulative
Frequency Percent Valid Percent Percent

Valid Below 2,00,000 73 31.7 60.8 60.8

2,00,001 to 4,00,000 31 13.5 25.8 86.7

4,00,001 to 6,00,000 8 3.5 6.7 93.3

6,00,001 to 8,00,000 6 2.6 5.0 98.3

Above 8,00,000 2 .9 1.7 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

73
Annual Income
80 Annuaincom
60 e 31
40
8 6
0
20 2
Below 2,00,00 4,00,00 6,00,00 Above
1 1 1
2,00,000 to to to 8,00,00
0
4,00,00 6,00,00 8,00,00
0 0 0

Interpretation:

As the table and graph shows that income level of the respondents. The majority of respondents
have the income of below 2,00,000 (60.8%), 25.8% of respondents have income of 2,00,001 to
4,00,000, 6.7% of respondents have income of 4,00,001 to 6,00,000, & 5.0% of respondents have
income of 6,00,001 to 8,00,000 and 1.7% of respondents have income of above 8,00,000. So, we
can interpret that most of the investors belong to middle class and upper class.

26
Q: 6 Marital status:
Married [ ] Unmarried [ ]

Marital status

Cumulative
Frequency Percent Valid Percent Percent

Valid Married 47 20.4 39.2 39.2

Unmarried 73 31.7 60.8 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Marital Status

80

60

40
73
20 47

0
Married Unmarried

Interpretation:

The table and graph shows the respondents marital status. The majority of respondents are
unmarried (60.8%), and 39.2% of respondents are married. So we can interpret that unmarried
respondents may get more influenced by factors of mutual fund.

27
Q: 7 Which of the following in investment you prefer the most besides Mutual fund?
Shares [ ] Bonds [ ]
Post Office Savings [ ] Public Provident Fund [ ]
Fixed Deposit [ ]

Which_of_the_following_investment_you_prefer_the_most_besides_mutual fund

Cumulative
Frequency Percent Valid Percent Percent

Valid shares 52 22.6 43.3 43.3

Bonds 13 5.7 10.8 54.2

Post office savings 10 4.3 8.3 62.5

Public provident fund 18 7.8 15.0 77.5

Fixed deposits 27 11.7 22.5 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Which of the following investment you prefer the

most besides mutual fund?

60
50
40
30 52
20
10 18 27
13 10
0
Shares Bonds Post Publi Fixe
office c
provident d
deposits
saving fund
s

Interpretation:

The table and graph shows the most preferred investment besides mutual fund by the respondents
are Shares (43.3%), Fixed deposits (22.5%) and Public provident fund (15%), Bonds (10.8%) and
Post office savings (8.3%). So, we can interpret that most of the respondents prefer Shares and fixed
deposit in bank after mutual funds.

28
Q: 8 What is your primary objective of investment?
Maximizing return [ ] Tax Saving [ ]
Minimizing risk [ ] Safety of principle [ ]
Maintaining liquidity [ ] Diversification of risk [ ]
Capital Appreciation [ ]

What_is_your_primary_objective_of_investment

Cumulative
Frequency Percent Valid Percent Percent

Valid Maximizing return 26 11.3 21.7 21.7

Tax saving 48 20.9 40.0 61.7

Minimizing risk 10 4.3 8.3 70.0

Safety of principle 7 3.0 5.8 75.8

Maintaining liquidity 6 2.6 5.0 80.8

Diversification of risk 20 8.7 16.7 97.5

Capital appreciation 3 1.3 2.5 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

What is your primary objective of

investment?
48
5
0
4 26
20
0
10
3 7 6 3
0
2
0
1
0
0

Interpretation:

The above table & graph shows the primary objective of respondent for investing in mutual fund. The
majority of respondents have primary objective of Tax saving (40%). Than respondents prefer
maximizing return (21.7%). The other objectives are respondents prefer. So, it can be interpreted that
most of the investors have their primary objective of Tax saving & maximizing their returns.

29
Q:9 Which mode of instrument you preferred the most while making investment in
Mutual Fund?

Lump sum Instrument [ ] Systematic Investment Plan [ ]

Both [ ]

Which_mode_of_instruments_you_preferred_the_most_while_making investment

Cumulative
Frequency Percent Valid Percent Percent

Valid Lump sum instrument 22 9.6 18.3 18.3

systematic investment plan 54 23.5 45.0 63.3

Both 44 19.1 36.7 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

Which mode of instruments you preferred the

most while making investment in mutual fund?

60 54
50 44
40
30 22
20
10
0
Lump sum instrument Systematic investment plan Both

Interpretation:

The table & graph shows the most preferred mode of instrument in mutual fund by the respondents.
The majority of respondent prefers to invest through Systematic investment plan (45%). Both (36.7%)
and Lump sum investment instrument is preferred by 18.3%

30
Q:10 From the following which sources influence your investment decision in Mutual
Fund?
Friends & Relatives [ ] Agents & Brokers [ ]
Outdoor Media [ ] Print Media [ ]
Broadcast Media [ ] Electronic Media [ ]

From_the_following_which_sources_influence_your_investment_decision

Cumulative
Frequency Percent Valid Percent Percent

Valid Friends & Relatives 25 10.9 20.8 20.8

Agents & Brokers 52 22.6 43.3 64.2

Outdoor media 8 3.5 6.7 70.8

Print media 7 3.0 5.8 76.7

Broadcast media 7 3.0 5.8 82.5

Electronic media 21 9.1 17.5 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

From the following which sources influence your

investment decision in mutual funds?

60 52
50
40
30 25
21
20
10 8 7 7
0
Friends & Agents & Outdoor Print Broadcast Electronic
Relatives Brokers media media media media

Interpretation:

From the table we can interpret the sources by which the respondents are influenced to make
investment in mutual fund. The most of the respondents are influenced by the Agent & Brokers
(43.3%) and Friends & Relatives (20.8%) sources of investment in mutual fund, 17.5 % of the
respondents are influenced by the Electronic media, 6.7% of the outdoor media. So, we can interpret
that most of the investors came to know about mutual fund from the friends and family, agents and
brokers and electronic media.

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Q:11 Rate the mutual fund schemes in which you prefer to invest in:

Mutual fund Most preferred Preferred Netural Not preferred

schemes
Balanced fund
Debt fund
Sectoral fund
Money market
fund
Equity fund
Growth fund
Tax saving fund
Income fund

Rate the mutual fund schemes in which you prefer to invest in.

100
90
80
70
60
50
40
30 Most preferred
20 Preferred
10
0 Neutral
Balace Debt Sectoral Money Equity Growth Tax Not preferred
fund Income
fund fund market fund fund fund
fund saving
fund

Interpretation:
The above result show that the respondents rate the mutual fund schemes in which they invest in. 75%
respondents are most preferred mutual fund schemes, 15.8% respondents are preferred, 5% Not preferred
and 4.20% respondent are Neutral. So, most of the respondents are Most preferred to rate the mutual fund
schemes to invest in mutual fund.

32
Q:12 Rate the following factors that you prefer while making investment in Mutual
fund?

Factors Most Important Netural Not Not at all

important important important
Low risk
High return
Liquidity
Safety of
money
Regular
income
Tax benefit
Diversification
Expertise
Past
performance
Company
reputation

Rate_the_following_factors_that_you_prefer_while_making_investme

Cumulative
Frequency Percent Valid Percent Percent

Valid Most important 91 39.6 75.8 75.8

Important 15 6.5 12.5 88.3

Neutral 9 3.9 7.5 95.8

Not important 4 1.7 3.3 99.2

Not at all important 1 .4 .8 100.0

Total 120 52.2 100.0

Missing System 110 47.8

Total 230 100.0

33
 Rate the following factors that you prefer while making investment in mutual fund?

100
90
80
70
60
50 Most important
40
30 Important
20
10 Neutral
0 Not important
Not at all important

Interpretation:

The above results show that the respondents are rate to prefer factors while making investment in mutual
fund.75.8% respondents are rate the factors most important to prefer while making investment in mutual
fund, 12.5% for important and 3.33% for not important the factors that respondent rate for prefer to invest
in mutual fund.

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FINDING

35
 FINDING

“Finding states the facts about research”

From this research, it is found that,

➢ The majority of investors are male 79.2% and female were 20.8%.
➢ 57.5% of the respondents (Investors) are aged 21 to 30, 18.3% of the respondents are aged
Below 20, 10.8% of the respondents are aged 41 to 50, 10% of the respondents are aged 31
to 40 and only 3.3% of the respondents are aged Above 50.
➢ 66.7% investors are Post graduate, 17.5% investors are Under graduate, 13.3% investors
are Graduate and only 2.5% investors are schooling.
➢ 59.2% investors are Businessman, 27.5% investors are Salaried, 7.5% investors are Retired
and 5.8% investor are House wife.
➢ 60.8% of investors income are Below 2,00,000, 25.8% investors income are 2,00,001 to
4,00,000, 6.7% investors income are 4,00,001 to 6,00,000, 5% investors income are
6,00,001 to 8,00,000 and 1.7% income are Above 8,00,000.
➢ The majority of investors are Unmarried 60.8% and married were 39.2%.

➢ It has been found that the majority of investors have their primary objectives of Tax saving,
Maximizing returns, Diversification of risk along with Minimizing of risk. 40% of investors
prefer Tax saving as their primary objective while making investment in mutual fund out
of rest of the other objectives such as Maximizing return, Diversification of risk,
minimizing risk, safety of principle etc. This shows that investors have very high
expectations from their fund managers.
➢ The majority of 43.3% investors are preferred Shares and 22.5% of investor are preferred
bank fixed deposit as their investment option besides mutual fund. Rest of the other factors
like15% Public provident fund, 10.8% Bonds, 8.3% post office savings. Were preferred
after the Tax saving and bank fixed deposit by the investors as their investment options
besides mutual fund.
➢ The 45% of investors prefer to make investment through Systematic investment plan,
18.3% of investors prefer their mode of instrument to be

36
 done through Lump sum instrument and 36.7% of investors preferred both as their mode of
instrument for making investment in Mutual fund.
➢ 43.3% of investors were influenced to make investment in Mutual fund from their Agent
and Brokers, 20.8% of investors were influenced by the Family and Friends & 17.5% of
investors were influenced through electronic media to make investment in mutual fund,
6.7% were influenced through outdoor media and 5.8% & 5.8% influenced through print
and broadcast media.

➢ The study included the analysis of factors which resulted in two major factors that are
consideredimportant by investors while making investment in Mutual Fund. The First factor
was named as personal factor of investors which includes Low risk, tax benefit, High
return, Liquidity. Second factor was named as company related factor such as company
reputation, past performance, expertise, regularity of income etc. 75.8% investors are rate
the factors most important to prefer while making investment in mutual fund, 12.5% for
important and 3.33% for not important.

➢ The study indicate that the investors rate the mutual fund schemes in which they invest in,
75% investors are most preferred mutual fund schemes, 15.8% investors are preferred
various schemes, 5% investors are not preferred schemes and 4.20% investors are neutral
about mutual fund schemes to invest in.

37
CONCLUSION

38
 CONCLUSION

From the research, it can be concluded that mutual fund are good investment tool.
The results indicate that the factors and investors perception plays a very vital role in the
investment of mutual fund. The aim of the study was to seek out all the possible factors that
influence investment in mutual fund and its impact on the investor’s decision making process.
The factors in the study were low risk. High returns, liquidity, diversification, company
reputation, past performance etc. were included. The major factors that influence investors to
make investment in mutual fund are low risk, tax benefits & liquidity.
Tax saving and Maximizing returns has been considered as investor’s primary objective
followed by minimizing risk & safety of principle. The investors preferred both lump sum
investment and systematic investment as their mode of instrument in mutual fund.
The main sources that influence investment in mutual fund are Agent and brokers, Family & Friends.
There is a tendency that investors are more likely to invest in shares and fixed deposit due to the
security attached to it. In order to make mutual fund success, companies need to create more
awareness and understand the psychological factor that affects the investor’s decision to make
investment in mutual fund

39
BIBLIOGRAPHY

40
 BIBLIOGRAPHY

➢ https://www.scribd.com/document/436566561/Research-paper

➢ https://www.researchgate.net/publication/274990926_An_Empirical_Analysis_of_Factors_Influ
encing_Investment_in_Mutual_Funds_in_India 

➢ https://1library.net/document/zlmoxmly-influencing-investment-special-reference-investor-
pharmaceutical-chennai-velmurugan.html&nbsp

➢ ijrmbs.com › rajesh_k_2...

➢ https://en.m.wikipedia.org/wiki/Mutual_fund

➢ http://iosrjournals.org › papers PDF Factors Influencing Investors In Mutual Funds Selection

➢ https://cyberleninka.org/article/n/567851.

➢ https://www.researchgate.net/publication/322820716_A_STUDY_ON_FACTORS_INFLUENC
ING_FOR_INVESTMENT_IN_MUTUAL_FUND_AMONG_THE_INVESTORS_WITH_REFER
ENCE_TO_MADURAI_DISTRICT

Chawla, D. (2014). An Empirical Analysis of Factors Influencing Investment in Mutual

Funds inIndia. Global Business Review, 493 to 503.

Dr. V. Ramanujam, B. S. (2014). A STUDY ON FACTORS INFLUENCING FOR

INVESTMENTIN MUTUAL FUND AMONG THE INVESTORS WITH REFERENCE
TO MADURAI
DISTRICT. Shanlax International Journal of Commerce, 81 to 91.

Rajesh Kumar, N. G. (2014). "Factors Affecting Perception of Investors towards Mutual Fund".
International Journal of Research and Development, 27 to 32

Rao, M. S. (2016). Factors Influencing Investors In Mutual Funds Selection. IOSR Journal of
Business and Management, 41 to 49.

Selim Aren, S. D. (2015). "The Factors Influencing Given Investment Choices of Individuals".
Procedia Social and Behavioral Science, 126 to 135.
Varun Sagar Singal, D. R. (2018). "Factors Affecting Investment in Mutual Fund". Journal of
General Management Research, 96 to 107.

41
T. Velmurugan, N. V. (2015). A Study on Factor Influencing Mutual Fund Investment -
Special Reference to Investor in Pharmaceutical Sector at Chennai Metro City. International
Journal of Pharmaceutical Sciences Review and Research, 214 to 219.

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ANNEXURE

43
 QUESTIONNAIR

Dear Respondent,
I am Divya Parmar a student of final year currently pursuing my Masters of Business
Administration (MBA) at Department of Business and industrial management (VEER NARMAD
SOUTH GUJARAT UNIVERSITY). I am conducting a research on “A Study on Factors
Influencing Investment in Mutual fund”. This research project is taken as a study purpose and it is
not related with any other purpose. I kindly request you to complete the questionnaire with the
honest answers which would take approximately 10-15 minutes of your valuable time. Your
responses will be kept “Highly Confidential”.

Q: 1 Gender
Male [] Female []

Q: 2 Age
Below 20 [] 21 to 30 []
31 to 40 [] 41 to 50 []
Above 50 []

Q: 3 Qualification
Schooling [] Under Graduate []
Graduate [] Post graduate []

Q: 4 Occupation
Salaried [] Business []
Retired [] House wife []
Others []

Q: 5 Annual Income
Below 2,00,000 [] 2,00,001 to 4,00,000 []
4,00,001 to 6,00,000 [] 6,00,001 to 8,00,000 []
Above 8,00,001 []

44
Q: 6 Marital status:
Married [ ] Unmarried []

Q: 7 Which of the following investment you prefer the most besides Mutual fund?
Shares [] Bonds []
Post Office Savings [] Public Provident Fund []
Fixed Deposits [] Others []

Q: 8 What is your primary objective of investment?

Maximizing return [] Tax Saving []
Minimizing risk [] Safety of principle []
Maintaining liquidity [] Diversification of risk []
Capital Appreciation []

Q: 9 Which mode of instrument you preferred the most while making investment in Mutual Fund?
Lump sum Instrument []
Systematic Investment Plan []
Both []

Q: 10 From the following which sources influence your investment decision in Mutual Fund?
Friends & Relatives [] Agents & Brokers []
Outdoor Media [] Print Media []
Broadcast Media [] Electronic Media []

Q:11 Rate the mutual fund schemes in which you prefer to invest in.

Mutual fund schemes Most Preferred Netural Not

preferred preferred
Balanced fund
Debt fund
Sectoral fund
Money market fund
Equity fund
Growth fund

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 Tax saving fund
Income fund

Q: 12 Rate the following factors that you prefer while making investment in Mutual fund?

Factors Most Important Netural Not Not at all

important important important
Low risk

High return

Liquidity

Safety of money

Regular income

Tax benefit

Diversification

Expertise

Past
performance
Company
reputation

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47