Summer Internship Project

A STUDY ON INVESTORS PERCEPTION

AND CONSUMER BEHAVIOR TOWARDS
MUTUAL FUNDS

(A Project with ICICI PRUDENTIAL AMC)

Submitted in partial fulfillment of the requirements for

Master of Management Studies (MMS)
Academic Year: 2022

Submitted by,
(ATHARVA UPPALWAR)
Roll No. (60)
MMS-A, Batch: 2022-2024
Chetana’s R. K. Institute of Management and Research,
Bandra (E), Mumbai 400 051
 Declaration

I hereby declare that this report submitted in partial fulfillment of the requirement of the award
for the Master of Management Studies to Chetana’s R.K. Institute of Management and Research,
is my original work and not submitted for award of any degree or diploma fellowship or for
similar titles or prizes.

I further certify that I have no objection and grant the rights to Chetana’s R.K. Institute of
Management and Research to publish any chapter/ project if they deem fit in Journals/Magazines
and newspapers etc. without my permission.

Place : Mumbai

Date : 9th May to 4th July

Name : Atharva Uppalwar

Class : M.M.S DIV-A

Roll No. : 60
 Certificate

This is to certify that the project submitted in partial fulfillment for the award of Master of
Management Studies of Chetana’s R.K. Institute of Management and Research is a result of the
bonafide research work carried out by Mr. / Ms. (PUT YOUR NAME) under my supervision and
guidance, no part of this report has been submitted for award of any other degree, diploma,
fellowship or other similar titles or prizes. The work has also not been published in any
Journals/Magazines.

Date:
Place: Mumbai

Director Project Guide: Prof. Geeta Sheeti

CRKIMR
 Acknowledgements

Without the collaboration and assistance of Prof. Geeta Sheeti who is our mentor for the project
report who pointed me in the right direction and provided crucial information regarding report, it
would not have been feasible for me to write and shape this report.
A wonderful opportunity for me to thank you to everyone who has helped me during my summer
project report work.
I would like to thank Mumbai University for providing me an opportunity to do project work on
this topic as a part of MBA curriculum. Along with this I would also like to thank our institute
Director CA Suhas Gharat Sir and Prof, Geeta Sheeti and other faculty members for there
assistance and encouragement, motivation and valuable advice from time to time that guided me
towards fulfilment of my project report successfully.
Please accept my sincere gratitude.

Atharva Uppalwar
Name of the Student
 Executive Summary

In recent years, mutual funds have been a popular tool for safeguarding one's financial security.
Mutual funds have aided households in sharing in the prosperity as well as contributing to India's
success story of Indian Business as knowledge and consciousness increase and more people are
reaping the rewards of mutual fund investing. The primary cause of the low number of retail
mutual fund investors is that 8 out of 10 Indians who earn a living are unaware of the advantages
of mutual funds. However, as consumers learn about investing in mutual funds prospects and
advantages, the quantity of those who choose to invest as much as one in five people now invest
in mutual funds.
Converting someone who knows nothing about mutual funds into a new customer requires
knowing which prospective investors are most likely to purchase mutual funds and knowing how
to use the right arguments and sales techniques that they will find significant and pertinent to
their choice.
This project allowed me to apply my analytical skills while also providing me with an excellent
learning experience. Based on market research on investor saving and investing habits as well as
mutual fund investment preferences, this project report presents analysis and recommendations.
This report will assist in understanding the mutual fund preferences of the investors, including
which asset management company (AMC) they prefer, the type of product they prefer, the option
(growth or dividend) they prefer, and the investment strategy they use (systematic investment
plan versus lump sum).
The constantly changing mutual fund business in India is examined in depth in the study on
investors' perceptions and consumer behavior about mutual funds. In light of the growing
number of investors and the rise in financial literacy, the study uses a mixed-methods approach
to thoroughly examine important aspects. Assessing investors' awareness and knowledge of
mutual funds, comprehending the elements that influence investment decisions, gauging investor
happiness and trust, and detecting potential obstacles or issues in the market are some of the
goals. The study intends to collect a variety of viewpoints from different demographics and
geographic areas by integrating quantitative surveys with qualitative interviews. The results will
provide insight into the sources influencing investors' comprehension, the influence of different
elements on investment decisions, and the degree of satisfaction and reliability related to mutual
fund investments. In addition, the study will identify possible roadblocks including market
volatility and regulatory issues, providing industry stakeholders with useful information.
 Table of Contents

Chapter No. Particulars Page No.

Chap. 1 Introduction
1.1 Introduction to the Task

1.2 Introduction to the Industry

1.3 Introduction to the Company

1.4 Introduction to the Project

Chap. 2 Project Details

2.1 Literature Review

2.2 Objectives

2.3 Study Methodology

2.4 Study Limitations

Chap. 3 Data Analysis and Findings

Chap. 4 Conclusions &

Recommendations
4.1 Conclusions
4.2 Recommendations
Chap. 5 Case Study(As a discussion)

Annexures
Tables/ Charts/Figures
Bibliography/Webliography
Questionnaire
 Chapter 1
Introduction to Industry

Introduction to the Task

1. Preparing and Delivering presentations to Potential Clients of ICICI Prudential AMC.

2. Learning about various investment products offered by ICICI Prudential AMC and its

competitors.

3. Assisting Bankers in addressing client queries and resolving customers issues.

4. Explaining the products to Sales officers and Relationship Managers of Banks and

collaborating with them to execute sales.

5. Assisting in lead generation efforts by researching and identifying potential leads or

prospects who may be interested in the company's investment products or services.

6. Communicating with clients and prospects via email, phone calls, or in-person meetings to

provide information about the company's offerings, answer inquiries, and schedule

appointments for the sales team.

7. Was a part of SIP sales drive during my internship, where I was assigned to HDFC, Kotak,

and Axis Bank. My primary responsibility was to maximize the sales of ICICI's mutual fund

products, surpassing the sales of competing products offered by these banks.

 Introduction to the Industry/Sector

Due to the expansion of long-standing financial services organisations as well as the arrival of
new players, India's financial sector is expanding quickly. The sector is made up of mutual
funds, commercial banks, insurance companies, co-ops, pension funds, non-banking financial
institutions, and other smaller financial organisations. More organisations are now able to
operate in the market thanks to the banking regulator's recent approval of the establishment of
new businesses, such as payment banks. However, in India, where the financial sector is
predominantly a banking sector, commercial banks hold more than 64 percent of the total assets
held by the financial system.

Several measures have been put in place by the Indian government to control, liberalise, and
grow this industry. In an effort to facilitate MSMEs' access to funding, the Reserve Bank of India
(RBI) and the Indian government have implemented many measures. These measures include
launching the Credit Guarantee Fund Scheme for MSMEs, creating the Micro Units
Development and Refinance Agency (MUDRA), and giving banks guidelines on collateral
requirements. The combined efforts of the public and private sectors have made India's capital
market one of the most active in the world.

As of July 31, 2023, the Indian mutual fund industry's assets under management (AUM) were
valued at ₹ 46,37,565 crore. SIP investments totalled Rs. 1.5 lakh crore, or $18.09 billion, in
mutual fund schemes in India. By the end of December 2021, equity mutual funds reported a net
inflow of Rs. 22.16 trillion (US$ 294.15 billion). November 2022 had a 21-month low of US$
274.8 million (Rs 2,258.35 crore) for net inflows; in December, that figure was higher at US$
888 million (Rs 7,303.39 crore).

An important component of India's financial sector, the insurance industry has been expanding
quickly. In FY23, the total first-year premium collected by life insurance firms came to US$
32.04 billion. Furthermore, during FY23 (till December 2022) the non-life insurance industry
produced premiums of Rs. 1.87 lakh crore (US$ 22.5 billion).
The top stock market in India, the Bombay Stock market (BSE), and Ebix Inc. intend to
collaborate to launch a new distribution exchange platform that would strengthen the nation's
insurance distribution network. 40 initial public offerings (IPOs) raised a total of US$ 7.17
billion in FY23. By FY23 (till December 2022), there were 2,113 companies listed on the
National Stock Exchange (NSE), up from 135 in 1995.

Source: - https://www.ibef.org/x

Source: -https://www.ibef.org/
Growth of the mutual fund Industry in India: -

In India, the mutual fund market has expanded quickly in recent years. The industry's assets
under management (AUM) increased from ₹7.61 trillion (US$100 billion) in 2013 to ₹46.38
trillion (US$610 billion) as of August 2023. Several factors, such as the following, have
contributed to this growth:

 Increasing investor awareness of mutual funds: The Indian government and financial
institutions have been working to increase investor understanding of mutual funds.
Educational campaigns, seminars, and other initiatives have been used to accomplish this.

 Rising middle class in India has more money available to invest due to an increase in
disposable income. As a result, there is now more demand for mutual funds, which
provide investors with a convenient and diverse investment option.

 Promotion of Systematic Investment Plans (SIPs):-SIPs are encouraged because they are
a well-liked method of investing in mutual funds. They give investors the option to make
a set monthly commitment, which helps to spread out costs and lower risk.

 Falling interest rates: Due to India's declining interest rates, mutual funds are now a more
appealing investment choice. This is due to the possibility of higher returns offered by
mutual funds compared to fixed income assets.
more favorable regulatory environment The Indian securities market's regulator, the
Securities and Exchange Board of India (SEBI), has taken action to strengthen the
regulatory framework for mutual funds. The industry is now more open to investors and
transparent as a result.

.
  Better regulatory environment: The Securities and Exchange Board of India (SEBI), which
oversees the Indian securities market, has made measures to make it easier for mutual funds to
operate. Because of this, the sector is now more open to investors. SIPs are a well-liked method
of buying mutual funds. They give investors the option to make a set monthly commitment,
which helps to spread out costs and lower risk.

Source: -AMFI website

In the upcoming years, the Indian mutual fund market is anticipated to continue expanding. This
is caused by the previously listed elements as well as the nation's continuous economic
development and progress. The Association of Mutual Funds in India (AMFI) reported that by
2027, the AUM of the sector is anticipated to reach ₹100 trillion (US$1325 billion).
Growth drivers and Future trends of Mutual Funds industry: -

 The growth of online investment: - The increasing use of technology has made investing
in mutual funds easier for investors. What's causing this is the creation of online trading
platforms and smartphone apps.
 The popularity of passive funds is rising: -Passive funds, such as index funds and
exchange-traded funds (ETFs), are becoming more and more popular among investors.
This is because compared to actively managed funds, they offer higher returns and fewer
costs.
 The introduction of new goods and services: - Companies that offer mutual funds
frequently introduce new goods and services to cater to the needs of various investors.
This comprises goods catered to particular investor types, such as equity funds for
women and millennial retirement funds.
 Index and passive investing: Two potentially growing types of passive investing are
exchange-traded funds (ETFs) and index funds. Those looking to cut costs may find these
investment vehicles appealing since they aim to mimic the performance of a certain
market index at a cheaper cost. Personalization and customization Mutual fund companies
may prioritize providing more adaptable investing options. Investors might be able to customize
their portfolios to suit their unique preferences, risk tolerance, and financial objectives.
 Hybrid Funds: -As investors seek balanced exposure to various asset classes, hybrid
funds—which incorporate both equity and debt components may gain popularity.
 Innovations in technology: Improvements in fintech and artificial intelligence may result
in new investment products, better risk assessment instruments, and more effective fund
management procedures.
Introduction to the company- ICICI Prudential AMC Ltd

Source: - https://www.icicipruamc.com/

Background of Organization: -

ICICI Bank and Prudential Plc merged to establish ICICI Prudential in 1993. The Prudential
Group is one of the biggest, most established, and most influential insurance companies.
The ICICI Prudential Mutual Fund played a major role in the establishment of the CRISIL rating
system in India. Just like a CIBIL score evaluates a person's creditworthiness, the CRISIL score
evaluates the state of mutual funds in India.
Data released as of September 30, 2018, indicates that the ICICI Pru Mutual Fund's Average
Assets Under Management, or AAUM, is Rs 468196.92 Crore. It is governed by the trustees of
ICICI Prudential Trust Ltd. and has been in existence for over 30 years.
The Mutual Fund was established and incorporated in 1993. It currently oversees assets of more
than Rs. 5.1 trillion as of March 31, 2023. The company is expanding quickly and employs some
of the most well-known fund managers in the industry.
The wide range of funds offered by the Mumbai-based ICICI Prudential Mutual Fund caters to
all socioeconomic backgrounds. You can quickly and with minimal documentation start a SIP or
deposit a lump sum with ICICI Prudential through Groww.
Prudential Group intends to sell 3.7% of its mutual fund holdings in order to lower its total
shareholding to less than 25% in order to abide by SEBI standards
ICICI Prudential Mutual Fund is among the top two asset management companies in India. It is
among the most established and lucrative mutual funds. The majority of their products have
received the "AAAmfs" rating, which denotes a high level of assurance and dependability.

Company Profile: -

Type Private
Traded as ICICI PRU Asset Management Company
(IPRU3219)
Industry Banking Industry, Finance, Financial
Services
Founded Founded in 1993 as ICICI Asset
Management Company
Headquarters Mumbai, Maharashtra, India
Key People Mr. Nimesh Shah - Managing Director &
CEO
Mr. Sankaran Naren - Executive Director
& CIO.
Mr. B Ramakrishna - Chief Financial
Officer
Products Mutual Funds, PMS and AIF Investments
Total income Rs 28,381 crores
Profit before Tax Rs 20,071 crores
Total Assets Rs 91,515 crores
Asset under management Rs 5.7L Cr
Number Of Locations 350
Employees 3072
Investor Base 87 Lakh Investors
Competitor HDFC AMC, UTI Mutual Fund, etc.
Source: - https://www.icicipruamc.com/
Growth Propositions
ICICI Prudential AMC is in a good position to gain from the Indian mutual fund industry's long-
term expansion. For the following five years, the Indian mutual fund market is anticipated to
expand at a CAGR of 15-20%. Several factors are driving this rise, including
1. Rising disposable incomes
2. Increasing awareness of mutual funds.
3. Growing penetration of mutual funds in rural areas
4. Government's initiatives to promote mutual fund investments.

ICICI Prudential AMC has a number of strengths that will help it capitalize on the growth
opportunities in the mutual fund industry. These strengths include:
1. Strong brand recognition
2. Wide distribution network
3. Experienced and qualified investment team
4. Comprehensive product suite
5. Innovative investment solutions

Future Plans

ICICI Prudential AMC is focused on executing on the following key strategies to achieve
sustainable growth in the future:

1. Expand its distribution network.

2. Launch new and innovative investment products.
3. Invest in technology to improve its operational efficiency
4. Focus on investor education and awareness.
Industry Recognition

ICICI Prudential AMC has won numerous awards and accolades for its performance and
achievements. Some of the recent awards won by the company include:

1. Best Asset Management Company (India) – Asia money Best Bank Awards 2023
2. Best Asset Management Company (India) - The Banker India Awards 2023
3. Best Asset Management Company (India) - Global Finance World's Best Investment Banks
Awards 2023.

ICICI Prudential AMC is a leading asset management company with a strong financial stature,
growth propositions, and future plans. The company is well-positioned to benefit from the long-
term growth of the Indian mutual fund industry.
 Introduction to the Project

1. Gaining a thorough understanding of investor attitudes and actions in relation to mutual funds
is the aim of this study.

2.Examining preferences, attitudes, and decision-making.

processes of investors, the aim is to provide valuable knowledge that can benefit both investors
and financial institutions. Through this study, I want to uncover the factors influencing
investment choices and help investors make informed decisions, ultimately contributing to the
growth of the mutual fund industry.

3.This research seeks to address a critical gap in the understanding of how investors perceive and
interact with mutual funds, a popular and essential investment vehicle.

4.The study will explore the various dimensions of investor behavior, including risk tolerance,
investment goals, information sources, and satisfaction levels. By analyzing these factors, we
aim to offer actionable insights for mutual fund managers, policymakers, and financial advisors
to better tailor their offerings and services to meet investor needs.

5 The purpose of this study is to obtain a comprehensive understanding of investor attitudes and
behaviors about mutual funds.
 Chapter 2
Project Details

Literature Review

1. Padmaja, R., 2013. A study of Consumer Behavior towards Mutual Funds with special
reference to ICICI Prudential Mutual Funds, Vijayawada. International Journal of
Management research and Business strategy, 2(2), pp.1-14.

(Padmaja, International Journal of Business Strategy and Management Research,

2013) .
In conclusion, despite the fact that mutual funds, particularly for elderly people, offer
good returns, many investors continue to choose conventional solutions because they lack
knowledge. Governments should promote investing through programs like the Rajiv
Gandhi Equity Savings Scheme and mutual fund companies must provide clearer
information. Such initiatives might help the beleaguered mutual fund sector.

2. A study conducted in Karur District by M. Thirumalaikumar on investors'

perceptions of ICICI mutual funds.

(Thirumalaikumar) In conclusion, there is room for expansion in the mutual fund sector in
India, but the proportion of individual investors is still low. Attitudes are influenced by
demographics, and decisions are influenced by financial knowledge. Companies must
spread knowledge and provide instruction to encourage saving through mutual funds. The
contribution of ICICI Bank is significant. For an industry to expand and adapt, it is
important to comprehend investor behavior.

3. Magdum, A. and Samant, C.G.A., 2019. A Comparative Study on Mutual Fund Schemes
of Selected AMC’s in India. Management.

(Magdum, 2019) In this study, CAPM was used over a five-year period to evaluate equity-
based mutual fund schemes in India. Companies in the private sector, particularly ABSL
and ICICI, outperformed their rivals in the public sector, such SBI and UTI. Seven out of
seven ABSL plans, three out of four ICICI schemes, and UTI all outperformed. Five of
the eight methods that SBI implemented performed better than expected. Compared to
public sector funds, those in the private sector demonstrated lower risk and higher
returns.
4. Sehdev, R. and Ranjan, P., 2014. A study on Investor's perception towards mutual fund
investment. Sch. J. Econ. Bus. Manage, 1, pp.105-115.

(Sehdev, 2014) 160 respondents from New Delhi participated in the study, which looks at
investor preferences for mutual funds. It shows a preference for debt and balanced funds,
which are then followed by sectorial and equity-diversified funds. Mutual fund
preferences are influenced by variables such as transparency, returns, information,
liquidity, and institutional activity. The respondents' top resource for information on
investments is the Internet.

5. Zafar, A.S., 2013. A Strategic Study on Investors Preferences of Mutual Funds in

India. structure, 2(8).

(Zafar, 2013) Investors are looking for wealth creation through financial markets as a
result of economic expansion brought on by liberalization and globalization. Mutual
funds provide managed risk and diversity. Prospectus information influences investor
decisions. This study assists mutual fund companies in comprehending and enhancing
service quality to satisfy India’s investor requirements.

6. Sumathy, M. and Jisha, T.P., Awareness and Perception of Investors towards Mutual
Fund Investments.

(Sumathy) It's critical to evaluate individual awareness and perceptions of mutual funds as
investing possibilities expand. The relationship between awareness and information
sources, income, education, investor considerations, and investment types is examined in
this study. Mutual funds collect money for suitable plans in order to entice investors with
competitive returns. Introduce innovative programs and communicate clearly to increase
investor engagement and trust, which will help the industry expand.

7. Devi, G.K.S., Mutual Funds as the Investors’ Vehicle of Choice for Investment.

(Devi) The study's overall finding is that a variety of products with better returns and
safety are needed to make up for people's loss of interest in saving and investing. It's
critical to strengthen the relationship between investors and mutual funds, which calls for
open communication about the risks and policies. The mutual fund market in India has
unrealized potential and is in competition with deposits and securities. Capable AMC and
monitoring practices are required to increase consistency and investor confidence.
 Building investor trust through skilled management is key for maximizing mutual fund
investments. Professional fund management and market-driven valuation are also
important.

8. In 2016, Sathish, P. and Srinivasan, K.S. An empirical study evaluating the performance
of specific open-ended mutual fund schemes in India. Global Management Review, 10(3).

(Sathish, 2016)From January 2010 to December 2014, the study analyses the performance
of 20 equity-diversified open-ended mutual fund schemes. It uses a variety of metrics to
analyze risk and return. Every scheme produced profitable results. With the highest
return, ICICI Prudential Mid Cap Fund Growth stood out. Through standard deviation
and beta numbers, funds demonstrated lower risk than the market. Based on Sharpe and
Treynor metrics, certain schemes displayed positive risk-adjusted performance. Jensen
alpha values were all positive for all schemes.
Research Objectives

1. To evaluate the individual investors' savings goals.

2.To determine which savings option individual investors prefer.

3.To understand the respondent’s preference of schemes.

4.To assess the preferred investment horizon of the investors

5.To analyze preferences of investors towards equity mutual fund through SIP.

6.To analyse perceptions of investors towards equity mutual fund through SIP.

7. To research the relationship between an investor's behaviour and their demographics (age,
gender, education, occupation, yearly income, yearly savings, marital status, and family size).

.
Methodology

Research Design- Descriptive Research

Type of Data: Primary research and Secondary

Primary Research: Primary data is collected through survey taken through google form.

Secondary data: Internet, Journals, Financial reports, research papers.

Data Collection Technique: Survey

Data Collection Source: Both Primary and Secondary sources are used to complete the study
and report making.

Data Collection Tool: Structured Questionnaire

Nature of Research: Descriptive

Approach of Research: Quantitative

Sample Size-100

Sampling Unit: Individual from the age group of 20 & above.

Sampling Method: Stratified sampling method

 CHAPTER-3

DATA ANALYSIS AND FINDINGS

1.Age group of respondents

Age Group No of Respondents Percentage

Less than 20 0 0
20-30 64 64%
30-40 19 19%
50 and above 17 17%
Total 100 100%

50 and above
17%

30-40
19%

20-30
64%

Less than 20 20-30 30-40 50 and above

Interpretation
According to the above table, 64% of respondents are between the ages of 20 and 30; 19% are
between the ages of 30 and 40; and 17% are over the age of 50.
Conclusion
The age range of 20 to 30 represents the bulk of responses (64%)
2. Gender of the Respondents

Gender No. of Respondents Percentage

Male 74 74%

Female 36 36%

Total 100 100%

36%

74%

Male Female

Interpretation
It may be inferred from the preceding table that 30% of respondents are female and 70% of
respondents are male.

Conclusion: Men make up the majority of responses (70%)

3. Occupation of the Respondents

Occupation No. of Respondents Percentage

Government employee 39 39%
Private employee 36 36%
Business 13 13%
Other (retired, agriculture
etc.) 12 12%
Total 100 100%

Other (retired, agriculture

etc.)
12% Government
Business employee
13% 38%

Government employee

Private employee

Business

Private employee Other (retired, agriculture

etc.)
36%
Interpretation

According to the above table, 38% of respondents work for the government, 36% for private
companies, 13% run their own businesses, and 12% are employed in other fields (such as
agricultural or retried).

Conclusion
The bulk of responders (39%) work for the government.
4. Monthly income of the Respondent

No of
Monthly Income Respondents Percentage
Less than Rs.50000 40 40%
Rs 50000-100000 52 52%
More than 1 Lakh 8 8%
Total 100 100%

More than 1 Lakh

8%

Less than Rs.50000

40%

Rs 50000-100000
52%

Interpretation
According to the above table, 40% of respondents have monthly incomes of less than Rs. 50,000,
52% have incomes between Rs. 50,000 and Rs. 100,000, and 8% have incomes exceeding Rs. 1
lakh.

Conclusion
The bulk of respondents (52%) have monthly incomes between Rs. 50000 and Rs. 10,000000.
5.Preferred investment Avenue
Preferred investment
Avenue No of Respondents
Fixed Deposits 21
Recurring Deposits 5
Stocks 28
Gold 2
Real Estate 12
Mutual Funds 32

35

30

25

20
32
15 28
21
10
12
5 5
2
0
Fixed Recurring Stocks Gold Real Estate Mutual
Deposits Deposits Funds

Interpretation
From the above table it is interpreted that 32% of the respondent’s preferred
investment in mutual funds followed by stocks 28% and fixed deposits 21%.

Inference
The majority (32%) of the respondents preferred investment avenue is Mutual
Funds.
6. Factors influencing investment in Mutual Fund

Not at all
Influence Most Less Importan
Factor Important Important Neutral Important t Total
High risk 36 41 19 4 0 100
Tax saving 32 40 26 2 0 100
Liquidity of
fund 24 44 29 2 1 100
Safety and
security 23 47 25 4 1 100
Regular
income 19 47 24 8 2 100
Regular saving 19 44 29 6 2 100
Risk involved 17 47 26 3 7 100
Diversification 17 47 24 12 0 100
Easy payment 20 41 23 12 4 100

Easy payment
Diversifica- 10% High risk
tion 17%
Risk 8%
in-
volved
8%
Tax saving
15%

Regular sav-
ing
9%

Regular Liquidity of
income fund
9% Safety and security 12%
11%
Factors influencing investment in Mutual Fund

Interpretation
According to the above table, 17% of respondents are in favour of high risk, 16% of tax savings,
12% of fund liquidity, 11% of safety and security, 10% of easy payment, 9% of regular saving,
9% of regular income risk, 8% of risk involved, and 8% of diversification of their investments.

Conclusion
Risk is regarded by the majority of respondents (17%) as the most crucial element when making
an investment.
7.Investment Purpose

Investment Purpose No of Respondents

Earn higher returns 35
Tax Benefits 8
For Retirement 20
Regular Income 25
Diversification 12

Diversification 12

Regular Income 25

For Retirement 20

Tax Benefits 8

Earn higher returns 35

0 5 10 15 20 25 30 35

Interpretation:
The critical analysis of the chart depicts that 35% of the respondents prefer to invest in the
investment vehicle that offers high returns on their invested value. Whereas 12% of the
respondents invest to diversify their risk.8% of the respondents invest to avail the taxation
benefits.25% of respondents invest for other purpose such as to earn regular income and 20%

invest for retirement purpose.

8.Investment horizon

Experience No. of Respondents Percentage

Less than 2 years 15 15%
2 years to 6 years 36 36%
6 years to 10 years 30 30%
Above 10 years 19 19%
Total 100 100%

Less than
Above 10 2 years
years 15%
19%
Less than 2 years
2 years to 6 years
6 years 6 years to 10 years
to 10 2 years
years to 6 Above 10 years
30% years
36%

Interpretation
From the above table it is interpreted that 36% have an investment horizon 2-6 years,30% have
investment horizon of 6-10 years,19% have investment horizon of 10 years and 15% have

investment horizon less than 2 years.

9. The respondent’s preference of schemes.

Preference of Schemes No of Respondents

Equity Oriented Schemes 44
Debt Schemes 12
Hybrid Schemes 38
Other Schemes 6
Total 100

45
40
35
30 44
25 38
20
15
12
10 6
5
0
Equity Oriented Debt Schemes Hybrid Schemes Solution Oriented
Schemes Schemes

Interpretation
According to the above table, 44% of respondents said they would rather invest in equity-
oriented schemes, 38% said they would rather invest in hybrid schemes, 12% said they would
rather participate in debt schemes, and 6% said they would rather invest in solution-oriented
schemes.
10.Different types of funds
Different types of No of
funds Respondents
Small Cap 12
Mid Cap 16
Large Cap 10
Multi Cap 24
Value fund 33
Elss 4
Sectoral Fund 1
Total 100

32.5

27.5

22.5

17.5

12.5

7.5

2.5

Small Cap Mid Cap Large Cap Multi Cap Value fund Elss Sectoral
Fund
Series1 12 16 10 24 33 4 1

Interpretation
From the above table it is interpreted that 33% of the people want to invest in Value Fund
followed by multi cap 24%,16% wants to invest in Mid Cap fund.

Inference
The majority of the respondents 33% wants to invest in Value Funds
11. Future investment in mutual Funds

Not Sure
9%
No
18%

Yes
No
Not Sure

Yes
73%

75
65
55

45 73
35
25
15 18
9
5
Yes No Not Sure
Column2 73 18 9

The majority of investors 73% wants to invest in mutual funds in future while 18% have voted
'No' and 9% have voted 'Not Sure’
 Conclusion

Investors' consumer behavior and perception of mutual funds are influenced by a variety of
factors, including demographic factors, financial factors, psychological factors, and the role of
financial advisors. Policymakers and regulators can play a role in promoting investor awareness
and education about mutual funds, as well as developing regulations to protect investors from
fraud and abuse. These days, people are searching for investments that would yield strong returns
while remaining safe. The purpose of this study was to determine what factors affect investors'
perceptions of investing in mutual funds. It is emphasized that middle-class investors concur that
consistent income and investing liquidity are important factors. There is a perception that
investing at great risk yields big profits. The investment's flexibility would result in the funds
performing well. Investors of all ages look for a variety of additional criteria outside of those
taken into account for the study that can entice them to invest in the mutual fund sector.
It is necessary to take action in order to boost investors' self-esteem and confidence. This can be
accomplished by teaching investors about mutual fund investing and by maintaining appropriate
contact. They should be provided with appropriate and sensible information via a variety of
communication channels so that they are aware of the most recent market trends. Mutual funds
remain, and will continue to be, the nation's only financial product.
 Recommendations

1. According to the report, mutual fund providers need to carry out more promotional
operations to raise consumer knowledge of their various products rather than just their
generic offerings. Many respondents were ignorant of the different kinds of mutual fund
schemes, their risks, and the mutual fund products themselves.

2. According to the study, there is a good chance that investments in mutual funds will be
made in the future, as indicated by the 73% of respondents who voted "Yes." On the
other hand, 18% of voters said they would rather not invest in mutual funds in the future,
while 9% said they were not sure. The "No" and "Not Sure" categories, however, need to
raise some red flags.

3.Exploiting the Semi Urban sector, an emerging sector with much of potential.
According to the locations of their current branch offices, the majority of mutual funds
are active in major cities and metro areas. They must open more distribution centres at
the various urban and semi-urban markets if they need to expand their market.

4. To implement a programme in schools and colleges to raise knowledge of various

investing options.
 CHAPTER-4 (ANNEXURES)

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 Webliography

 https://www.icicipruamc.com/
 https://www.ibef.org/
 https://www.moneycontrol.com/
 https://www.amfiindia.com/
 https://www.valueresearchonline.com/
 https://www.mutualfundssahihai.com/