“A STUDY ON INVESTOR’S PERCEPTION TOWARDS MUTUAL FUND WITH

SPECIAL REFERENCE TO RELIANCE MUTUAL FUND, CALICUT”

A Project Report Submitted to the University of Calicut in partial fulfillment of the

requirement for the award of the degree of

MASTER OF COMMERCE

BY

AMRUTHA S NAIR

(Register No: PWAQMCM003)

Under the supervision and guidance of

Ms. Shaswati T

DEPARTMENT OF COMMERCE

PROVIDENCE WOMEN’S COLLEGE

CALICUT-673009

2016-2018
 Department of Commerce

Providence Women’s College

Calicut-673009

CERTIFICATE OF DEPARTMENT

This is to certify that the project report entitled “A STUDY ON INVESTOR’S

PERCEPTION TOWARDS MUTUAL FUND WITH SPECIAL REFERENCE TO

RELIANCE MUTUAL FUND” is a record of genuine work done by the candidate

AMRUTHA S NAIR, during the period of her study at Providence Women’s College,

Malaparamba, Calicut in partial fulfillment of the requirement of M.com Degree examination

of the year 2016-2018 of the University of Calicut.

Place:

Date:
 Department of Commerce

Providence Women’s College

Calicut-673009

CERTIFICATE OF INTERNAL GUIDE

This is to certify that project titled “A STUDY ON INVESTOR’S PERCEPTION

TOWARDS MUTUAL FUND WITH SPECIAL REFERENCE TO RELIANCE

MUTUAL FUND” is a bonafide work carried out by AMRUTHA S NAIR, a candidate for

the award of Master of Commerce of University of Calicut under my guidance and direction.

Place: Signature of guide:

Date: Name:
 Department of Commerce

Providence Women’s College

Calicut-673009

CERTIFICATE

This is to certify that this project work titled that ‘A STUDY ON INVESTOR’S
PERCEPTION TOWARDS MUTUAL FUND WITH SPECIAL REFERENCE TO
RELIANCE MUTUAL FUND ’ is a bonafide piece of work done by AMRUTHA S
NAIR (PWAPMCM003) in partial fulfilment as required for the degree of master of
commerce (M.Com) as per the University of Calicut.

Viva voice examination held on …………………………

…………………………… …………………………………

Internal examiner External examiner

 DECLARATION

I, AMRUTHA S NAIR, 4th semester M.Com student, Providence Women’s College,

Malaparamba, hereby declare that the project report entitled “A STUDY ON INVESTOR’S

PERCEPTION TOWARDS MUTUAL FUND WITH SPECIAL REFERENCE TO

RELIANCE MUTUAL FUND ” in partial fulfillment of the requirements for the award of

degree of Master of Commerce of the University of Calicut is an authentic and original work

done by me under the guidance and supervision of Ms. SHASWATI T, Department of

Commerce, Providence Women’s College, Malaparamba and it has not formed the basis for

the award of any degree, diploma or similar title to any candidate in any university.

Place : AMRUTHA S NAIR

Date :
 ACKNOWLEDGEMENT

With great pleasure, I am presenting this project entitled “A STUDY INVESTOR’S

PERCEPTION TOWARDS MUTUAL FUND WITH SPECIAL REFERENCE TO
RELIANCE MUTUAL FUND ”. Concentration, dedication, hard work and application are
essential but not the only factor to achieve the desired goal. Those must be supplemented by
the guidance, assistance and cooperation of experts to make it success.

At first, I thank ALMIGHTY for being with me throughout the completion of the
project work.

I am extremely grateful to my institute for providing me the opportunity to undertake

this research project in the prestigious field.

With profound pleasure, I extend my extreme sincere sense of gratitude and

indebtedness to my project guide Ms. SHASWATI T for extensive and valuable guidance
that was always available to me ungrudgingly and instantly, which help me complete my
project without difficulty.

I express my deep and sincere gratitude to Mr. VINEETH Managing Director of

RELIANCE MUTUAL FUND, Calicut, for providing me firsthand knowledge.

Finally, I am thankful to my friends and entire family members for their great support and
encouragement.

AMRUTHA S NAIR
 LIST OF CONTENTS

CHAPTER NO TITILE PAGE NO

1 INTRODUCTION

1.1 Introduction
1.2 Statement of the problem
1.3 Objective of study
1.4 Hypothesis
1.5 Scope of study
1.6 Research Methodology
1.7 Limitation of study

2 LITERATURE REVIEW

3 PROFILES

3.1 Industry profile

3.2 Company profile
3.3 Product Profile

4 DATA ANALYSIS
&INTERPRETATION

Testing of hypothesis
5
FINDINGS

5.1 Summary
5.2 Findings
5.3 Suggestions
5.4 Conclusions
BIBLIOGRAPHY
ANNEXURE
 LIST OF TABLES

TABLE PAGE
NO. TITLE NO.
5.1 GENDER OF RESPONDENTS 33

5.2 34
QUALIFICATION OF RESPONDENTS

5.3
MONTHLY INCOME OF THE INVESTORS 35
5.4 36
PERCENTAGE OF INCOME INVESTED
5.5 37
FACTORS INFLUENCING THE MOST IN MUTUAL
FUND SELECTION

5.6 38
MOSTLY USED MUTUAL FUND
5.7 39
RISK TAKING BEHAVIOUR
5.8 RELIANCE MUTUAL FUND SCHEME INVESTORS 40
PREFER FOR INVESTMENT

5.9 41
SOURCE OF AWARENESS ABOUT RELIANCE
MUTUAL FUND

5.10 MODE OF INVESTMENT. 42

5.11 43
EXPECTED RETURN ON INVESTMENT

5.12 PERCEPTION ABOUT SAFETY 44

5.13 45
EXPECTATION FROM RELIANCE MUTUAL FUND

5.14 FACTOR THAT MADE INVESTOR TO CHOOSE 46

RELIANCE MUUAL FUND

5.15 47
AWARENESS ABOUT MUTUAL FUND
5.16 48
INVESTORS HAVING CONTRIBUTION IN PORTFOLIO
CONSTRUCTION
5.17 49
KNOWLEDGE LEVEL OF INVESTORS ABOUT
VARIOUS SCHEMES
5.18 50
INVESTORS WHO WOULD LIKE TO SWITCH TO
OTHER COMPANIES

5.19 51
SECOND OPTION OF INVESTORS AFTER RELIANCE
MUTUAL FUND

5.20 SERVICE REQUIRED TO IMPROVE FURTHER 52

5.21 FACTOR THAT MAKE RELIANCE MUTUAL FUND

BETTER THAN OTHERS
5.22 REASON WHY INVESTORS PREFER MUTUAL FUND
OVER DIRECT TRADING
5.23 RATING RELIANCE MUTUAL FUND IN SOLVING
INVESTORS GRIEVANCES
5.24 SATISFACTION LEVEL OF INVESTORS
LIST OF CHARTS

CHART PAGE
NO. TITLE NO.
5.1 GENDER OF RESPONDENTS 33

5.2 34
QUALIFICATION OF RESPONDENTS

5.3
MONTHLY INCOME OF THE INVESTORS 35
5.4 36
PERCENTAGE OF INCOME INVESTED
5.5 37
FACTORS INFLUENCING THE MOST IN MUTUAL
FUND SELECTION

5.6 MOSTLY USED MUTUAL FUND 38

5.7 39
RISK TAKING BEHAVIOUR
5.8 40
RELIANCE MUTUAL FUND SCHEME INVESTORS
PREFER FOR INVESTMENT

5.9 41
SOURCE OF AWARENESS ABOUT RELIANCE
MUTUAL FUND

5.10 42
MODE OF INVESTMENT.
5.11 EXPECTED RETURN ON INVESTMENT
5.12 PERCEPTION ABOUT SAFETY 44
5.13 45
EXPECTATION FROM RELIANCE MUTUAL FUND

5.14 46
FACTOR THAT MADE INVESTOR TO CHOOSE
RELIANCE MUUAL FUND

5.15 47
AWARENESS ABOUT MUTUAL FUND
5.16 48
INVESTORS HAVING CONTRIBUTION IN PORTFOLIO
CONSTRUCTION
5.17 49
KNOWLEDGE LEVEL OF INVESTORS ABOUT
VARIOUS SCHEMES
5.18 50
INVESTORS WHO WOULD LIKE TO SWITCH TO
OTHER COMPANIES

5.19 51
SECOND OPTION OF INVESTORS AFTER RELIANCE
MUTUAL FUND

5.20 52
SERVICE REQUIRED TO IMPROVE FURTHER

5.21
FACTOR THAT MAKE RELIANCE MUTUAL FUND
BETTER THAN OTHERS

5.22
REASON WHY INVESTORS PREFER MUTUAL FUND
OVER DIRECT TRADING

5.23 RATING RELIANCE MUTUAL FUND IN SOLVING

INVESTORS GRIEVANCES
5.24 SATISFACTION LEVEL OF INVESTORS
CHAPTER 1

 INTRODUCTION
 STATEMENT OF THE PROBLEM
 OBJECTIVES OF STUDY
 HYPOTHESIS
 SCOPE OF STUDY
 RESEARCH METHODOLOGY
 LIMITATION OF STUDY
1.1 INTRODUCTION

The term investment is used to describe the process of investing money in shares, debentures,
fixed deposits, gold, real assets, life policies, mutual funds, and money market instruments.
These outlets where the money is invested are known as investment assets. By investing, an
investor commits the present funds to one or more assets to be held for some time in
expectation of some future return in terms of interest or capital gain. Individual investor
considers a number of factors before deciding to invest their funds in various securities
involving varying degrees of risk and return. In the present economic scenario, the option
available to them is different and the factor motivating the investors to invest is governed by
their socio- economic profile including expected return and risk tolerance. In short, the
investment decision making process is a multi-faceted subject to change over a period of
time. An attempt has been made in this study to identify the perceptual factors which
influence the investors to invest in mutual funds. There are a number of investment
opportunities available to an investor. Each of these investments has its own risk and return
features. The proverb “never put all the eggs in the same basket” guides the investor to
diversify the risk. Diversification refers to the process whereby an investor invests his funds
in more than one investment opportunity. An investor must learn to analyze and measure the
risk and return of the portfolio. All investors may not be in a position to undertake
fundamental and technical analysis before they decide about their investment options. Neither
do they have the resources nor the expertise to do so. Instead of investing directly, the
investors particularly, small investors may go for indirect investment through the mutual
funds. Instead of becoming the shareholder or bondholder of a company, these investors
would become the unit holders of mutual funds. In almost all the capital markets throughout
the world, mutual funds have gained a significant position. The mutual fund industry plays a
significant role in the development of the economy as well. Its buoyant growth leads to lower
intermediation costs, more efficient financial markets, and increased vibrancy of the capital
markets and higher local ownership of financial assets. If retail investment is directed through
the mutual fund route, it will lead to greater wealth creation in the long run. Thus, the
industry can be one of the causative factors for a healthy economy.

Mutual fund is a retail product designed to target small investors, salaried people and others
who are intimidated by the mysteries of stock market but, nevertheless, like to reap the
benefits of stock market investment. SEBI has played a vital role in regularizing the mutual
fund business. From time to time it has tried to plug the loopholes prevailing in the system
and safeguard the interest of investors who has been backbone of this unprecedented growth.
As of now big challenge of mutual fund industry is to mount on investor awareness and to
spread further to the semi urban and rural areas. Since the need of this study has been aroused
in order to see the preference awareness and the investor’s attitude regarding the mutual
funds. Investment is a commitment of funds made in the expectation of some positive return.
If the investment is properly undertaken, the return will be commensurate with the risk the
investor assumes. Investment goals vary from person to person business to business. While
some want security, others give more weightage to returns alone. With objectives defying any
range, it is obvious that the products required will vary as well. Investments generally involve
real assets. Real assets are tangible, material thing such as buildings, automobiles, and gold
etc. financial assets are pieces of paper representing an indirect claim to real assets held by
someone else.

1.2 STATEMENT OF PROBLEM

This study gives information about mutual fund industry as well as the awareness level
among the people for mutual funds. It deals with investor’s attitude and how the mutual
funds are performing in the current market situation. This study facilitates the general
people who can understand the importance and explore the new option for investment in
the mutual funds

1.3 OBJECTIVES OF THE STUDY:

 To study the preference of investors on mutual funds with special reference to

Reliance Mutual Fund.
 To study investors perception about investing in mutual fund.
 To find out the factors which influencing the investors to prefer the investment in
mutual funds.
 To study how effectively company is reaching their customers need.
 To study the satisfaction level towards Reliance Mutual Fund
1.4 HYPOTHESIS

Null Hypothesis -There is no significant relationship between opinion of customers of

Reliance Mutual Fund towards the choices of mutual fund schemes.

Alternative hypothesis:There is significant relationship between opinion of

customers of Reliance Mutual Fund towards the choices of mutual fund schemes.

1.5 SCOPE OF THE STUDY

The study is to find out the preference of the investors who have been invested in mutual
funds. The information considered for analysis and interpretation are confined to
demographic factors, preference of the mutual funds, types of schemes preferred and so on.
The primary data is collected from the investors. The collected data gives the individual
investor’s perception will give a valuable insight regarding their expectation about an ideal
fund and schemes. This study has been done with the database provided by the company,
only with reference to their importance. This study tries to get the preferences, inference of
the respondents.

1.6RESEARCH METHODOLOGY

Research Methodology is a way to systematically solve a problem. It may be understood as a

science of study where research is done scientifically. It includes various steps that are
generally adopted by a researcher in studying his research problem.

1.6.1 Research design:

The research design carried out was Descriptive. Descriptive research, also known as
statistical research, describes data and characteristics about the population or phenomenon
being studied. Descriptive research answers the questions who, what, where, when, "why"
and how.

1.6.2 Sampling design:

An explicit plan for obtaining samples from given population is known as sampling design.
It is an overall plan for selecting objects from the universe before survey is undertaken.

 Sampling technique

Convenience sampling technique was used. Accidental sampling (sometimes known as grab,
convenience or opportunity sampling) is a type of non-probability sampling which involves
the sample being drawn from that part of the population which is close to hand. That is, a
population is selected because it is readily available and convenient. It may be through
meeting the person or including a person in the sample when one meets them or chosen by
finding them through technological means such as the internet or through phone.

 Sample unit
The research was conducted in Reliance Mutual Fund, calicut YMCA branch.

 Sample size

Sample size taken for this study is 50 investors of Reliance Mutual Fund.

1.6.3 SOURCES OF DATA COLLECTION

Data are collected from investors in Calicut city. The sources of data collection methods are
as follows;

 Primary data

Primary data is those where the data are collected for the first time. Questionnaire
was used as a tool for primary data collection.

 Secondary data
Secondary data were collected from books, journals, websites and magazines.

1.6.4 Statistical tool for data collection

Questionnaire: A questionnaire was devised to fetch the above mentioned information

from the investors. Most of the questions in the questionnaires were objective in nature
which helped the people to fill it with utmost ease.

1.6.5 Statistical tool for analysis

Percentage analysis: Percentage method refers to a specified kind which is used in making
comparison between two or more series of data. Percentages are based on descriptive
relationship. It compares the relative items. Since the percentage reduces everything to a
common base and thereby allow meaning comparison. Percentage = Number of respondents
x 100 Total no of respondents.

Chi-square: The Chi square test procedure tabulates a variable into categories and computes
a chi square statistic. This goodness-of-fit test compares the observed and expected
frequencies in each category to test that all categories contain the same proportion of values
or test that each category contains a user-specified proportion of values. Statistical method to
test whether two (or more) variables are: (1) independent or (2) homogeneous. The chi-square
test for independence examines whether knowing the value of one variable helps to estimate
the value of another variable. The chi-square test for homogeneity examines whether two
populations have the same proportion of observations with a common characteristic.

(𝑂−𝐸)2
Chi-square=∑
𝐸

PERIOD OF STUDY

Project period is 21 days. Starting from 28th March 2018 to 20th April 2018.

1.7 LIMITATIONS OF THE STUDY

For the research work, data was collected and interpreted with utmost reliability and
consistency but due to prejudices of a few respondents, certain limitations of the study
are as follows:
 The study depicts the present scenario in the selected city of Calicut and
hence the result may not be applicable to another period of time.
 The study is limited to 50 respondents of the selected city of Calicut.
Answer to the questionnaire depends upon the beliefs and prejudices of
investors.
 It is assumed that respondents are true and honest in expressing their
views and have filled the questionnaire honestly and without any bias.
  The present study is restricted to information collected about the Mutual
Fund Investors with the help of questionnaire.

CHAPTERIZATION

CHAPTER 1- Introduction,Statement of problem,Objectives of the

study,Hypothesis,Scope,Research methodology,Limitations

CHAPTER 2- Review of literature.

CHAPTER 3- Industry Profile, Companyprofile, Product profile.

CHAPTER 4- Data analysis &interpretation, Testing of Hypothesis

CHAPTER 5- Summary, Findings, Suggestions, Conclusion.

CHAPTER 2
REVIEW OF LITERATURE
Vijayalakshmi and Jayasathya (2009)in their study entitled “A Study on the Factors
Influencing the Selection of Mutual Fund Company”. The main focus of the study is, on the
factors influencing the respondents on their choice of Mutual Fund Company. The study
found most important factors consider before investing in the mutual fund are objective of the
scheme, past performance of a research team, services provided by the company etc,. The
best way of surviving and prospering in the competitive environment is through providing
prompt, relevant and efficient information about Asset under Management, Net Asset Value
and information about the scheme.

Gupta, Chawla and Harkawat (2011)in their study titled “An Analysis of Investor‟s
Perception Regarding Mutual Fund” examined to know the perception of investors towards
mutual funds it was found that 80% of the investor knows about mutual funds, so awareness
level of mutual fund is there. Majority of investors are willing to invest in mutual funds. The
investment of about 11 per cent to 30 per cent saving is done in mutual funds and expected
returns are between10 per cent to 30 per cent. So if the mutual funds firms provide a good
return investors are willing to invest in mutual 56 funds irrespective of its occupation and
time frame. Investors are willing to invest in 1 to 5 years time frame. Asset management
companies can provide the right kind of need base solutions to their Investors.

Kandavel (2011) in his study titled “Perception of the Retail Investors towards Investment in
Mutual Funds in Puducherry: An Empirical Study” looked at the perception level of the retail
investors towards investment in mutual funds. The small investors purchase behaviour does
not have a high level of coherence due to the influence of different purchase factors. The
buying intent of a mutual fund product by a small investor can be due to multiple reasons
depending upon customers risk return trade off. Presently, more and more funds are entering
the industry and their survival depends on strategic marketing choices of mutual fund
companies, to survive and thrive in this highly promising industry, in the face of such
cutthroat competition. Therefore, the mutual fund industry today needs to develop products to
fulfill customer needs and help customers understand how its products cater to their needs.
Das (2012) in his study entitled “Small Investor‟s Perceptions on Mutual Funds in Assam:
An Empirical Analysis” The objectives of the study are to identify the small investor‟s
perceptions on mutual funds and to analyse the factors affecting small investors‟ perception
towards mutual fund. The study aims at finding out the attitude of the small investors towards
investment in mutual funds in Assam. By adopting convenience sampling, 250 respondents
living in five different commercial towns of Assam were selected for this study. It is
concluded that the MFs business in Assam is still in as embryonic stage. So, concerted efforts
are needed for its success. The success depends upon high returns, professional competence
of Fund managers.

Sarish and Jain(2012) in their study entitled “Analysis Regarding Mutual Funds Awareness
and Opinion” attempted to know about opinion of investor towards mutual funds and their
preference, the investment rationale studied by mutual funds investors, investor awareness
about investment in mutual funds. Statistical tools like Chi- square test and z test are applied.
He found that Investors Monthly income ranges between 20000 - 40000 (40%) 61 and 40001
and above (30%). Most preferred investment is insurance (25%), fixed deposit (23%) and
mutual funds (20%), Post Office, NSC, others (20%).The most preferred factor for
investment is Return on investment (40%) and safety (40%). Liquidity is the second preferred
option (15%), 80% of the investors was aware of mutual funds. Investors know about Mutual
Fund mostly through Advertisement (45%) and Financial Advisors and Banks (25%).

Singh(2012) in his study entitled “A Study On Investors‟ Attitude towards Mutual Funds as
an Investment Option” examined the impacts of various demographic factors on investors‟
attitude towards mutual fund have been studied. The study shows that most of respondents
are still confused about the mutual funds and have not formed any attitude towards the
mutual fund for investment purpose. It has been observed that most of the respondents having
lack of awareness about the various function of mutual funds. Moreover, as far as the
demographic factors are concerned, gender, income and level of education have significantly
influence the investors‟ attitude towards mutual funds. On the other hand the other two
demographic factors like age and occupation have not been found influencing the attitude of
investors‟ towards mutual funds. As far as the benefits provided by mutual funds are
concerned, return potential and liquidity have been perceived to be most attractive by the
invertors‟ followed by flexibility, transparency and affordability. Apart from the above, in
India there is a lot of scope for the growth of mutual fund companies provided that the funds
satisfy everybody‟s needs and sharp improvements in service standards and disclosure.
Dimple and Ritu (2012)in their study titled “Buying Behaviour and Perception of Retail
Investors towards Mutual Fund Schemes” focused on how investment behaviour of fund
investors varies in terms of preference and selection of MF schemes. It can be concluded that
investors invest their money in mutual fund with the objective of good return, safety and tax
benefit. In all nine investment avenues, the most preferred investment vehicle is bank deposit.
Investors give equal importance to mutual fund and share/bond. Growth schemes and
balanced schemes are most preferred in comparison to other schemes. Fixed maturity
schemes are least preferred by mutual fund investors. According to this study it can be said
that most important factor considered by mutual fund investors is quality of fund/scheme. It
is further revealed that the investors are influenced by the sponsor‟s past performance of risk
and return, the reputation enjoyed by the sponsor and their expertise in managing money
when they invest their money in mutual fund scheme.

Vipparthi and Margam(2013) in their study entitled “Perceptions of Investors on Mutual

Funds: A Comparative Study on Public and Private Sector Mutual Funds” The study at first
tests whether there is any relation between demographic profile of the investor and selection
of mutual fund alternative from among public sector and private sector. For the purpose of
analysis perceptions of selected investors from public and private sector 68 mutual funds are
taken into consideration. The major perceptual factors identified are Liquidity, Security,
Flexibility, Transparency, Returns and Tax benefits along with Monetary and Core product as
the most influencing factors.

Swain and Sahoo (2013)in their study entitled “Investors Perception and Growth Prospects
of Mutual Funds: With Special Reference to SBI Mutual Fund” made an attempt to
understand the financial behaviour of Mutual Fund investors in connection with the
preferences of Brand (AMC), Products, and Channels etc. He observed that many of people
have fear of investment in Mutual Fund. They think their money will not be secure in Mutual
Fund. They need the knowledge of Mutual Fund and its related terms.

Padmaja (2013)in her study titled “A Study of Consumer Behaviour Towards Mutual Funds
With Special Reference To ICICI Prudential Mutual Funds, Vijayawada” examined about
investors‟ awareness towards mutual funds, investor perceptions, their preferences and the
extent of satisfaction towards mutual funds. She found the people lack awareness and
information towards mutual funds; hence awareness relating to mutual funds must be
increased among the investors to encourage them to invest in mutual funds. Even among the
investors who invest in mutual funds are unclear about how they function and how to manage
them. Proper information must be provided to the investors in order to increase the loyalty
among the investors. Investors‟ fee must be reduced by reducing paper work. Better
commission should be paid to Asset Management Companies. If mutual 70 funds are offered
to rural and semi urban investors at subsidized rates like agricultural loans, the demand for
mutual funds increases in rural and semi urban areas also. Advertising campaigns must be
conducted in rural areas to increase awareness among rural investors.

Theoretical framework
MUTUAL FUNDS

Mutual fund is a trust that pools money from a group of investors (sharing common financial
goals) and invest the money thus collected into asset classes that match the stated investment
objectives of the scheme. Since the stated investment objectives of a mutual fund scheme
generally form the basis for an investor's decision to contribute money to the pool, a mutual
fund can not deviate from its stated objectives at any point of time.

Every Mutual Fund is managed by a fund manager, who using his investment management
skills and necessary research works ensures much better return than what an investor can
manage on his own. The capital appreciation and other incomes earned from these
investments are passed on to the investors (also known as unit holders)in proportion of
number of units they own..
ADVANTAGE OF MUTUAL FUNDS

 Professional Fund Management

 Services
 Diversification
 Affordability
 Cost effectiveness
 Liquidity
 Tax breaks
 Transparency.

DISADVANTAGES OF MUTUAL FUNDS

 High expense ratio and sales charges.

 Management abuses.
 Tax inefficiency.
 Poor trade execution.

MUTUAL FUND SCHEMES

They are classified on the basis of its structure and its investment objective.

 BASED ON STRUCTURE
 OPEN ENDED FUNDS An open-end fund is one that is available for subscription
all through the year. These do not have a fixed maturity. Investors can conveniently
buy and sell units at Net asset value (“NAV”) related prices. The key feature of this
scheme is liquidity.
 CLOSED-ENDED FUNDS The fund is open for subscription only during a specific
period. Investors can invest in the scheme at the time of the initial public issue and
thereafter they can buy or sell the units of the scheme on the stock exchanges where
they are listed. The objective of the fund is to declare regular dividend.
 BASED ON INVESTMENT OBJECTIVE
 GROWTH FUNDS The aim of growth funds is to provide capital appreciation over
the medium to long- term. Such schemes normally invest a majority of the stock
exchanges where they are listed. The fund may declare dividend but the main
objective is only capital appreciation.
 INCOME FUNDS These are also known as debt funds since they invest in debt
instruments issued by the government, private companies banks and financial
institutions. These funds target low risk and stable income to the investors. While
returns in these funds may be regular, their scale may fluctuate depending on the
prevailing interest rates and the credit quality of the debt securities.
 BALANCED FUNDS These funds, as the name suggests, are a mix of both equity
and debt funds. They invest in both equities and fixed income securities in line with
pre-defined investment objectives. The aim at providing a balanced mix of capital
appreciation through investments in equities coupled with investments in stable
instruments like bonds etc.
 LIQUID FUNDS Also known as Money market funds as they invest in securities of
short term nature, typically securities of less than one-year maturity like Treasury
Bills issued by the government, Certificate of Deposits issued by banks and
Commercial Paper issued by companies as well as in the inter- bank call money
market. These funds are considered to be at the lowest rung in the hierarchy of risks.
Evolution of Mutual Fund Industry in India

The mutual fund revolution that was sweeping the other countries bypassed India
also. The formation of Unit Trust of India marked the evolution of the Indian mutual
fund industry in the year 1963. The primary objective at that time was to attract the
small investors and it was made possible through the collective efforts of the
Government of India and the Reserve Bank of India.

UTI commenced its operations from July 1964 and different provisions of the UTI Act
laid down the structure of management, scope of business, powers and functions of
the trust as well as accounting, disclosures and regulatory requirements for the trust.
Even though the growth of the mutual fund industry was very slow in the beginning,
it accelerated when the public sector and private sector mutual funds entered the
market after the year 1987. The mobilization of funds and the number of players
operating in the industry reached new heights as investors started showing more
interest in mutual funds. Investors' interests were safeguarded by SEBI and the
Government offers tax benefits to the investors in order to encourage them. SEBI
also introduced SEBI (Mutual Funds) Regulations, 1996 and set uniform standards for
all mutual funds in India.

The mutual fund industry can be broadly put into four phases according to the
development of thesector. Each phase is briefly described as under.
First Phase – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament by the,
Reserve Bank of India and functioned under the Regulatory and administrative
controlof the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the
Industrial Development Bank of India (IDBI) took over the regulatory and
administrative control in place of RBI. The first scheme launched by UTI was Unit
Scheme 1964. At the end of 1988 UTI had Rs.6,700 crores of assets under
management.

Second Phase – 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public
sectorbanks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual
Fundestablished in June 1987 followed by can bank Mutual Fund (Dec 87), Punjab
NationalBank Mutual Fund (Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India
(Jun90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in
June1989 while GIC had set up its mutual fund in December 1990.At the end of 1993,
themutual fund industry had assets under management of Rs.47,004 crores.

Third Phase – 1993-2003 (Entry of Private Sector Funds)

1993 was the year in which the first Mutual Fund Regulations came into being, under
which all mutual funds, except UTI were to be registered and governed. The
erstwhileKothari Pioneer (now merged with Franklin Templeton) was the first private
sectorMutual fund registered in July 1993.The 1993 SEBI (Mutual Fund) Regulations
were substituted by a more comprehensiveAnd revised Mutual Fund Regulations in
1996. The industry now functions under theSEBI (Mutual Fund) Regulations 1996. As
at the end of January 2003, there were 33Mutual funds with total assets of Rs.
1,21,805 crores.

Fourth Phase – since February 2003: In February 2003, following the repeal of the
Unit Trust of India Act 1963 UTI wasBifurcated into two separate entities. One is the
Specified Undertaking of the Unit TrustOf India with assets under management of
Rs.29,835 crores as at the end of January2003, representing broadly, the assets of US
64 scheme, assured return and certainOther schemes.The second is the UTI Mutual
Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It isRegistered with SEBI and functions
under the Mutual Fund Regulations. ConsolidationAnd growth.
COMPANY PROFILE
Reliance Mutual Fund
Reliance Mutual Fund (RMF) is one of India's leading mutual funds, with Average Assets
Under Management (AAUM) of ` 2,44,903.56 Crores (January 2018 - March 2018 Quarter
Q4) and 81.7243 lakhs folios (as on 31st March,2018). Reliance Mutual Fund, a part of the
Reliance Anil DhirubhaiAmbani (ADA) Group, is one of the fastest growing mutual funds in
India. RMF offers investors a well-rounded portfolio of products to meet varying investor
requirements and has presence in 160 cities across the country. RMF constantly endeavours
to launch innovative products and customer service initiatives to increase value to
investors.Reliance Mutual Fund (RMF) has been established as a trust under the Indian Trusts
Act, 1882 with Reliance Capital Limited (RCL), as the Settler/Sponsor and Reliance Capital
Trustee Co. Limited (RCTC), as the Trustee.

Reliance Mutual Fund has been registered with the Securities & Exchange Board of India
(SEBI) vide registration number MF/022/95/1 dated June 30, 1995. The name of Reliance
Capital Mutual Fund was changed to Reliance Mutual Fund effective March 11,2004 vide
SEBI's letter no. IMD/PSP/4958/2004 dated March 11,2004. RMF was formed to launch
various schemes under which units are issued to the public with a view to contribute to the
capital market and to provide investors the opportunities to make investments in diversified
securities. RCAM a subsidiary of Reliance Capital Limited, which holds 92.93% of the paid-
up capital of RCAM, the balance paid up capital being held by minority shareholders.
Reliance Capital Ltd. is one of India’s leading and fastest growing private sector financial
services companies, and ranks among the top 3 private sector financial services and banking
companies, in terms of net worth. Reliance Capital Ltd. has interests in asset management,
life and general insurance, private equity and proprietary investments, stock broking and
other financial services. Sponsor : Reliance Capital Limited Trustee : Reliance Capital
Trustee Co. Limited Investment Manager / AMC : Reliance Capital Asset Management
Limited Statutory Details : The Sponsor, the Trustee and the Investment Manager are
incorporate under the Companies Act 1956. Vision Statement To be a globally respected
wealth creator with an emphasis on customer care and a culture of good corporate
governance. Mission Statement To create and nurture a world-class, high performance
environment aimed at delighting our customers.

VISION STATEMENT

To be a globally respected wealth creator with an emphasis on customer care and a culture of

good corporate governance.

MISSION STATEMENT

To create and nurture a world-class, high performance environment aimed at delighting our

customers.

MAIN OBJECTIVES

 To carry on the activity of a mutual fund as may be permitted at law, and formulate
and devise various collective schemes of savings and investments for people in India
and abroad, and also ensure liquidity of investments for the unit holders.
 To deploy funds thus raised so as to help the unit holders earn reasonable returns on
their savings.
 To take such steps as may be necessary from time to time to realise the effects without
any limitation

The Corporate Governance Policy:

Reliance Capital Asset Management Limited has a vision of being a leading player in the
mutual fund business and has achieved significant success and visibility in the market.
However, an imperative part of growth and visibility is adherence to good conduct in the
marketplace. At Reliance Capital Asset Management Limited, the implementation and
observance of ethical processes and policies has helped us in standing up to the scrutiny of
our domestic and international investors. Management: The management at Reliance Capital
Asset Management Limited is committed to good corporate governance, which includes
transparency and timely dissemination of information to its investors and unit holders. The
Board of Directors of RCAM is a professional body constituting inter-alia of, well-
experienced and knowledgeable independent members. Employees: Reliance Capital Asset
Management Limited has at present, a code of conduct for all its officers. It has a clearly
defined prohibition on insider trading policy and regulations. The management believes in the
principles of propriety and utmost care is taken while handling public money, making proper
and adequate disclosures. All personnel at RCAM are made aware of their rights, obligations
and duties as part of the Dealing Policy laid down in terms of SEBI guidelines. They are
taken through a well-designed HR program, conducted to impart work ethics, the Code of
Conduct, information security, Internet and e-mail usage and a host of other issues. One of
the core objectives of RCAM is to identify issues considered sensitive by global corporate
standards, and implement policies/guidelines in conformity with the best practices as an
ongoing process. RCAM gives top priority to compliance in true letter and spirit, fully
understanding its fiduciary responsibilities.

Sponsors Reliance Capital Limited: Reliance Mutual Fund schemes are managed by Reliance
Capital Asset Management Limited, a subsidiary of Reliance Capital Limited, which holds
86.80% of the paid-up capital. the balance paid up capital being held by minority
shareholders. Reliance Mutual Fund (RMF) has been sponsored by Reliance Capital Ltd
(RCL). The promoter of RCL is AAA Enterprises Private Limited. Reliance Capital Limited
is a Non Banking Finance Company and is one of the India’s leading and fastest growing
financial services companies, and ranks among the top three private sector financial services
and banking companies in India, in terms of networth. Reliance Capital Limited has interests
in asset management and mutual funds, life and non-life insurance, private equity and
proprietary investments, stock broking and other activities in the financial services sector.

BOARD OF DIRECTORS

 MR. KANU DOSHIB

 MR. MINORU KIMURA.
 MR. S C TRIPATHI
  MS. AMEETA
 GENERAL VED PRAKASH MALIK (RETD.)
 MR. SUNDEEP SIKKA
 MR. AKIRA SHIBATA
 MR. ANMOL AMBANI

CNBC TV18 - CRISIL Mutual Fund of the Year Award for 2009: Reliance Mutual Fund has
won the ‘CNBC TV18 - CRISIL Mutual Fund of the Year’ Award in the Category – Mutual
Fund House of the Year (Awarded by CRISIL Fund Services, CRISIL Limited). In total 37
fund houses were considered as the award universe. Fund Houses winning at least one award
for their schemes in the category level awards for 2009 were eligible to be in contention for
the award. The award is based on consistency of fund house’s performance across various
scheme categories in the four quarterly CRISIL Composite Performance Rankings (CPRs)
released during the calendar year 2009. The individual CRISIL CPR ranks for their schemes
were aggregated on a weighted average basis to arrive at the final ranks for fund houses. The
mutual fund house with the highest final score is the “Mutual Fund House of the Year”. The
award has been granted for the year 2009 and will be in vogue till the announcement of the
award for the next year in the same category. A detailed methodology of the CRISIL CPR is
available at www.crisilfundservices.com. Past performance is no guarantee of future results.
Rankings and Award Source: CRISIL Fund Services, CRISIL Limited.
 CHAPTER 4

 DATA ANALYSIS AND INTERPRETATION

 TESTING OF HYPOTHESIS

Table 4.1

Gender of the respondents:-

 Response No of respondent Percentage %

Male 43 86%

Female 7 14%

Total 50 100%

Figure 4.1

Figure showing gender of the respondents.

14%

Male
Female

86%

Interpretation:

The survey reveals that 86% of investors are male and 14% of investors are female.

Table 4.2

Qualification of the respondents:-

 Response No of respondents Percentage

Diploma 12 24%

PG 14 28%

Profession 16 32%

UG 8 16%

TOTAL 50 100%

Figure 4.2

Figure showing qualification of the respondents

16%
24%

Diploma
PG
Profession
UG
32%
28%

Interpretation:

The study reveals that 32% of the investors are professionals,28% are PG.16% of respondents
are undergraduate

Table 4.3

income (P.M) of Investors

 Response No of percentage
respondents
5000-15000 4 8%
15000-25000 2 4%
25000-35000 20 40%
35000-45000 1 2%
Above 45000 23 46%
Total 50 100%

Figure 4.3

Figure showing income (P.M) of Investors

50%
46%
45%
40%
40%
35%
30%
25%
20%
15%
10% 8%
4%
5% 2%
0%
5000-15000 15000-25000 25000-35000 35000-45000 Above 45000

Interpretation:

The study reveals that , 46% of the investors are having income above 45000 per month.2%
of the investors earn an monthly income of 35000-45000.

Table 4.4

Percent of income invested in Reliance Mutual Fund

 Response No of Respondents Percentage
Up to 10% 14 28%
10-20% 11 22%
20-30% 19 38%
Above 40% 6 12%
Total 50 100%

Figure 4.4

Figure showing percent of income invested in Reliance Mutual Fund

12%

28%
upto 10%
10-20%
20-30%

38% Above 40%

22%

Interpretation:

The study reveals that 38% of the investors invest 20-30% of their income in RMF.Only 12%
of investors invest above 40% of their monthly income.

Table 4.5

Factors influencing the most while selecting mutual funds

 Response No of respondents Percentage (%)
Liquidity 6 12%
High return 40 80%
Tax benefits 3 6%
Company reputation 1 2%
Low risk 0 -
Total 50 100%
Figure 4.5

Figure showing factors influencing the most while selecting mutual funds

2%

6% 12%

liquidity
high return
tax benefits
company reputation

80%

Interpretation:

The study reveals that high return is the factor that influence 80% of the investors while
selecting mutual fund.Only 2% of people consider company reputation while selecting the
mutual fund.

Table 4.6

Mostly used mutual fund by the respondents

 No of
Response respondents Percentage
Equity 38 76%
Debt 8 16%
Money market instruments 4 8%
Total 50 100%

Figure 4.6

Figure showing mostly used mutual fund by the respondents

80% 76%

70%

60%

50%

40%

30%

20% 16%

10% 8%

0%
Equiy Debt moneymarket
instruments

Interpretation:

The study reveal that 76% of the investors use equity for investment,16% use debt for
investment and 8% of investors use moneymarket instruments.

Table 4.7

Risk taking behavior of the respondents

 Response No of respondents Percentage (%)
Risk averse 3 6%
Moderate risk taker 15 30%
High risk taker 32 64%
Total 50 100%

Figure 4.7

Figure showing risk taking behavior of the respondents

70%
64%

60%

50%

40%
30%
30%

20%

10% 6%

0%
Risk averse Moderate risk taker high risk taker

Interpretation:

The study reveals that 64% of investors are ready to take high risk,30% are moderate risk
taker and only 6% are risk averse.

Table 4.8
 Reliance Mutual Fundscheme people prefer for investment

Response No of respondents Percentage

Growth 33 66%
Income 5 10%
Balance 4 8%
Others 8 16%
Total 50 100%

Figure 4.8

Figure showing which reliance mutual fund scheme people prefer for investment

16%

8% Growth
Income
Balance
10%
others
66%

Interpretation:

The study reveals that 66% of the investors prefer growth fund for investment. Only

8% of investors prefer balance fund for investment

Table 4.9
 Source of awareness about reliance mutual funds

Response No of respondents Percentage %

Advertisements 5 10%

Banks 19 38%

Financial advisor 12 24%

Peer groups 10 20%

Others 4 8%

TOTAL 50 100%

Figure 4.9

Figure showing source of awareness about reliance mutual funds of the respondents

8% 10%

Avertisements
20% Banks
Financial advisor
38% Peer groups
Others
24%

Interpretation:

The study reveals that 38% of investors know about RMF through banks. Only 10% of the
people knew about reliance mutual fund through advertisement.

Table 4.10
 Table showing mode of Investment

Response No of respondents Percentage (%)

One time investment 5 10%
SIP 45 90%
Total 50 100%

Figure 4.10

Figure showing mode of Investment

0% 0%

10%

One time investment

SIP

90%

Interpretation:

The study reveals that 90% of the investors prefer systematic investment plan over one time
investment. The remaining 10% use the one time investment plan.

Table 4.11
 Expected return on investment.

Response No of respondents Percentage (%)

Less than 10% - -
10 to 15 20 40%
15 to 20 28 56%
Above 20 2 4%
Total 50 100%

Figure 4.11

Figure showing expected return on investment

4%

40%
10-15%
15-20%
Above 20%
56%

Interpretation:

The study reveals that,56% of the investors expect a return of 15-20% on their
investment.zero percent investors expect a return less than 10%.
 Table 4.12

Perception about safety

Response No of respondents Percentage

Yes 25 50%
No 25 50%
Total 50 100%

Figure 4.12

Figure showing is RMF completely safe.

0%

yes
50% 50%
no

Interpretation:

The study reveals that, 50% of the investors perceive mutual fund is completely safe and 50%
not safe.

Table 4.13
 Expectation from mutual fund

Response No of respondents Percentage (%)

Better return & 42 84%
safety
Regular return 3 6%
Tax benefit 5 10%
Low risk & cost - -
Total 50 100%
Figure 4.13

Figure showing expectation regarding RMF

90% 84%
80%

70%

60%

50%

40%

30%

20%
10%
10% 6%

0%
Beter return & safety Regular return Tax benefit

Interpretation:

The study reveals that ,84% of the investors expect better return and safety regarding RMF.
No one expect low risk and cost .6% expect a regular return.

Table 4.14
 Factor that made investors to choose Reliance Mutual Fund

Response No of respondents Percentage %

Robust distribution network 9 19.%
Lineage 13 28.%
Expertise 6 13%
Reliance SIP insure 20 40%
TOTAL 50 100%

Figure 4.14

Figure showing Factor that made investors to choose Reliance Mutual Fund

19%
Robust distribution
network
40% Lineage

Expertise

28% Reliance SIP insure

13%

Interpretation:

The study reveals that,40% of the investors invest due to the reliance SIP insure.13%
investors choose reliance mutual fund for the expertise.

Table 4.15
 Awareness level about portfolio construction

Response No of respondents Percentage

Yes 31 62%
No 19 38%
Total 50 100%

Figure 4.15

Figure showing awarenesslevel about portfolio construction

0%

38%

yes
no

62%

Interpretation:

The study reveals that, 62% of the investors are aware about Portfolio construction and the
remaining 38% are not aware about portfolio construction.
 Table 4.16

Investors having contribution in portfolio construction

Response No of respondents Percentage

Yes 34 68%
No 16 32%
Total 50 100%

Figure 4.16

Figure showing investors having contribution in portfolio construction

0%

32%

yes
no

68%

Interpretation:

The study reveals that, 68% of the investors have contribution in portfolio construction and
32% have no contribution in portfolio construction.

Table 4.17
 Knowledge level about the various schemes
Response No of respondents Percentage %
Totally ignorant 6 12%
Partial knowledge 9 18%
Aware only of specific 8
schemes in which you
invested 16%
Fully aware 27 54%
TOTAL 50 100%

Figure 4.17

Figure showing of the knowledge level about the various schemes

60%
54%

50%

40%

30%

20% 18%
16%
12%
10%

0%
partial knowledge aware only few fully aware totall ignorant

Interpretation:

The study reveals that,54% of the investors are fully aware about the various schemes of
Reliance Mutual Fund and 12% are totally ignorant about the schemes.
 Table 4.18

Investors who would like to switch to others mutual funds

Response No of respondents Percentage

Yes 6 12%
No 44 88%
Total 50 100%

Figure 4.18

Figure showing investors who would like to switch to others mutual funds

0%

12%

yes
no

88%

Interpretation:

The study reveals that,88% of the investors will not like to switch to others and 12% of
investors would like to switch to other companies.

Table 4.19
 Second option of investors after Reliance Mutual Fund

Response No of respondents Percentage

SBI 18 36%
UTI 17 34%
HDFC 11 22%
AXIS 4 8%
Total 50 100%

Figure 4.19

Figure showing second option of investors

8%

36%
22% SBI
UTI
HDFC
AXIS

34%

Interpretation:

The study reveals that,36% of investors see SBI as the second option after Reliance Mutual
Fund.Only 8% prefer for AXIS mutual fund.

Table 4.20
 The service required to improve further.
Response No of respondents Percentage %
Transaction related services 16 32%
Account statement services 3 6%
Regular update 22 44%
Innovative products 3 6%
Customer services 6 12%
TOTAL 50 100%

Figure 4.20

Figure showing of the service required to improve further.

12%
Transaction related
services
6% 32% Account statement
services
Regular update

Innovative products

6%
Customer services
44%

Interpretation:

The study reveals that 44% of investors need improvement in the regular update service of
RMF.6% of investors require more innovative products from Reliance Mutual Fund.

Table 4.21
 Factors that makes RMF better than other companies

Response No of respondents Percentage (%)

Low cost 3 6%
Quality of products 30 20%
Safety 7 60%
Others 10 14%
Total 50 100%

Figure 4.21

Figure showing factors that makes RMF better than other companies

6%
14%

20%
low cost
quality of products
safety
others

60%

Interpretation:

The study reveals that for 60% of investors, safety is the factor that makes RMF better than
other companies. For 6% of investors low cost factor make Reliance Mutual Fund beter than
others.
 Table 4.22

The reason why Reliance Mutual Fundis preferred over direct trading

Response No of respondents Percentage

Fair return 17 34%
Professional management 14 28%
Safety & low cost 9 18%
All of the above 10 20%
Total 50 100%

Figure 4.22

Figure showing why Reliance Mutual Fund is preferred over direct trading.

40%
34%
35%

30% 28%

25%
20%
20% 18%

15%

10%

5%

0%
Fair return Proffesional Safety & low cost All of the above
management

Interpretation:

The study reveals that, 34% of the investors choose RMF over direct trading because of fair
return.18% respondents choose mutual fund over direct trading due to safety & low cost.
 Table 4.23

Rating for solving investors grievances

Response No of respondents Percentage %

Excellent 9 18%

Very good 14 28%

Good 24 48%

Average 3 6%
TOTAL 50 100%

Figure 4.23

Figure showing of the Rating for solving investors grievances

6%
18%

Excellent
Very good
Good
48% 28% Average

Interpretation:

The study reveals that,48% of the investor’s opinion is good aboutReliance Mutual Fund.28%
rate excellent for Reliance Mutual Fund and only 6% rate average.
 Table 4.24

Satisfaction level of investors

Response No of respondents Percentage

Fully satisfied 22 44%
Satisfied 25 50%
Dissatisfied 3 6%
Fully dissatisfied - -
Total 50 100%

Figure 4.

Figure showing satisfaction level of investors

6%

44% Fully satisfied

Satisfied
Dissatisfied
50%

Interpretation:

The study reveals that, 50% of the investors are satisfied with Reliance Mutual Fund and the
remaining 44% is fully satisfied and 6% is dissatisfied.
Hypothesis testing
 HYPOTHESIS

A hypothesis is supposition or proposed explanation made on he basis of limited evidence as

a starting point for further investigation. It is a proposition made as a basis for reasoning,
without any assumption of its truth.

Hypothesis is considered as the most important instrument in research. In any test of

hypothesis we begin with some assumption about the population from which the sample is
drawn. This assumption may be about the form of population or about the parameters of the
population. Such an assumption should be logically drawn.

A statistical hypothesis therefore may be defined as a tentative

conclusionlogically drawnconcerning the parameter or the form of the distribution of the
population.

Statistical test of hypothesis is a process or procedure under which a statistical hypothesis is

laid down and it is accepted or rejected on the basis of a random sample drawn from the
population. The tests conducted to accept or reject the hypothesis is known as statistical tests
of hypothesis.

The commonly used statistical tests are

 Z – test,

 t – test,

 χ2 test,

 F- test.

NULL HYPOTHESIS: It is defined as a statistical hypothesis which is stated for the

purpose of possible acceptance. The null hypothesis is the original hypothesis.

ALTERNATIVE HYPOTHESIS: Any hypothesis which is complementary to null

hypothesis is termed as alternative hypothesis. So when the null hypothesis is rejected we
accept the other hypothesis known as alternative hypothesis.

LEVEL OF SIGNIFICANCE
Confidence with which a null hypothesis is accepted or rejected depends on what is called
significant level. The level of significance is the risk the statistician is running in his decision.

The level of significance is denoted by α.

The level of significance is usually determined before conducting the test of hypothesis.

DEGREE OF FREEDOM

Degree of freedom is defined as the number of independent observations which is obtained

by subtracting the number of constraints from the total number of observations. The test
statistic followed in this study is chi-square test, so the degree of freedom being:

(r-1)*(c-1)

Where, r= No of rows

C= No of columns
STEPS FOR COMPUTING χ2 TEST

1. Calculate the expected frequencies which are denoted by E.

2. Find out the difference between the expected frequencies and observed frequencies.
That is:-
O-E

3. Square the difference between the observed frequencies and expected frequencies.
That is:-

(O-E)2

4. Divide the value obtained in step ‘3’ by expected frequencies. That is:-

(O − E)2
𝐸

5. Total all the values obtained in step’4’. Then we get value of χ2.that is:-

(𝑂 − 𝐸)2
∑
𝐸
6. Compute the degree of freedom by (r-1)*(c-1) and the level of significance.

7. Compare the calculated values with the table value of the chi-square for a given
degree of freedom at a particular level of significance.

8. If the calculated value is higher than the table value, we reject the null hypothesis.
Hypothesis:1

 Null Hypothesis: Statistically, there is no significant relationship between opinion of

customers of reliance mutual funds towards choice of mutual fund scheme.

 Alternative hypothesis: Statistically, there is significant relationship between opinions of

customers of reliance mutual funds towards choice of mutual fund scheme.

H0-There is no significant relationship between opinion of customers of reliance mutual

funds towards choice of mutual fund scheme.

OPINIONS EXCELLENC AVERAGE GOOD VERY GOOD TOTAL

E

SCHEMES

GROWTH 6 2 17 8 33

INCOME 0 0 3 1 4

BALANCE 0 0 4 1 8

OTHERS 3 1 0 4 5

TOTAL 9 3 24 14 50
 Calculation table for chi-square ( x2)

O E (O-E)2 (O-E)2/E
6 5.94 .003 .0005
2 1.98 .0004 .0002
17 15.84 1.35 0.08
8 9.24 1.54 0.19
0 0.72 0.52 -
0 0.24 0.06 -
3 1.92 1.17 0.39
1 1.12 0.01 0.01
0 0.90 0.81 -
0 0.30 0.09 -
4 2.40 2.56 0.64
1 1.40 0.16 0.16
3 1.44 2.43 0.81
1 0.48 0.27 0.27
0 3.84 14.75 -
4 2.24 3.10 0.78
Ɛx2 3.33
 THEORITICAL TESTING

By using chi-square we test the hypothesis:-

Calculated value of chi-square test is:-

∑(𝑂 − 𝐸)2 ÷ 𝐸

=3.33

TABLE VALUE OF χ2:

Degree of freedom = (r-1) (c-1)

= (4-1) (4-1) =9

Table value of χ2 for 9 degree of freedom at .05 level of significance is 16.91

INTERPRETATION
Since the test value is less than table value, null hypothesis H0 is accepted and H1 is
rejected..
That is: There is no significant relationship between opinions of customers of reliance mutual
funds towards choice of mutual fund scheme.
CHAPTER 5
SUMMARY

FINDINGS

SUGGESTIONS
CONCLUSION
SUMMARY

The project titled “A study on investor’s perception towards Mutual Fund with special
reference to Reliance Mutual Fund, Calicut”. The objective of the study was to study
investors perception about investing in mutual fund, to find out the factors which
influencing the investors to prefer the investment in mutual funds and to study how
effectively company is reaching their customers need.The research design used in the
study is descriptive method. A sample of 50 was selected for the study. The period of
study is 21 days. The source of data include both primary and secondary
data.Questionaire is the main source of primary data. Tools used for the study are
questionnaire and interviews. The data collected are analysed using diagrams,
percentageanalysis, chi-square test.Therefore the focus of the project is to know
whether there is significant difference between opinions of investors towards choice
of mutual fund schemes.
FINDINGS

 Study reveals that the factors influences the investors most are high return and
liquidity.
 It is found that majority investors are satisfied with the services of reliance mutual
fund
 There is no significant difference between Opinion of investors towards choice of
mutual fund schemes
 The study reveals that majority of the investors are ready to take risk.
 From the above study it is found that majority of investors are male.
 Female investors have little knowledge about the various schemes
 From the study it reveals that most of the respondent’s income are above 45000.
 Only few people look for company reputation while selecting the Mutual Fund
Company
 Moneymarket instruments are used by only a small percentage of respondents.
 Majority of the people prefer growth scheme for investment.
 The study reveals that most of respondents know about Reliance Mutual fund
through banks.
 Safety and quality of product are the main factors that made them to choose
reliance mutual fund for investment.
SUGGESTIONS

 The average attitude score reveals that the respondents are giving more importance to
the dividends and growth. Therefore the mutual funds should improve the scope of
dividends and growth of the mutual funds.
 By proper segmentation and by targeting the right product to the right customer,
mutual fund companies can hope to win the confidence of their customers and own
them for a lifetime. In this way the market scope for mutual funds can be expanded.
 More concentration should be shown towards the retired people as they have good
investment potential.
 More awareness should be given to females as they have little knowledge about the
various schemes
 Bringing various schemes that may provide high return can grab more attention from
investors.
 Improving transaction related services and regular updation of the market condition
can make the investors more aware about their investment.
 If public awareness can be given more, it can attract the middle income and low
income group.
CONCLUSION

Indian mutual fund has gained a lot popularity from the past few years.as the time
passes this industry is a buzz word in Indian financial system. Mutual Fund has
emerged as a tool for ensuring one’s financial wellbeing. Mutual Funds have not only
contributed to the India growth story but have also helped families tap into the success
of Indian Industry. As information and awareness is rising more and more people are
enjoying the benefits of investing in mutual funds.The present study analyses the
mutual fund investment in relation to investor’s behaviour.
In Reliance Mutual Fund, the investors are very much satisfied with their
services.Most of the people are interested to take risk and to earn a better return. The
awareness level of mutual fund among the investors are very good because most of
them are fully aware about the mutual fund which helps them to invest their money
wisely .
Hence, it can be concluded that the Reliance Mutual Fund is
Very much successful in providing better services and return to the investors. And
the perceive mutual fund as a better option that may provide them better return at low
risk.
BIBLIOGRAPHY AND ANNEXURE
 BIBLIOGRAPHY

Books and Journals:

• International journal of Business Economics and Management Research volume 2,

Issues 3 (March 2011)

• Security Analysis and Portfolio Management-Fischer & Gordon

• Investment Analysis and Portfolio Management- Prasanna Chandra

• A Comprehensive approach on Mutual Fund- Dr.PeeyushRanjan Agarwal

Website:-

www.sbimf.com

www.moneycontrol.com

www.valueresearch.com

www.google.com

www.mutaulfundsindia.com

www.investopedia.com
Questionnaire

Name: ……………………………………………..

Age: ………………

Gender:male female

1. Qualification

PG professional graduate diploma holder

Undergraduate

2. What is your income per month approximately?

 5000-15000 15000-25000 25000-35000 35000-

45000 above 45000

3. How much percentage of your income is used for Reliance

Mutual fund?

Up to 10% 10-20 20-30 30-40 above 40%

4. While investing your money in reliance mutual fund, which

factor you prefer most?

Liquidity low risk high return

Company reputation tax benefit

5. Which mutual fund have you used?

Equity Debt Money market instruments

6. What kind of investor are you?

Risk averse moderate risk taker high risk taker

7. Which reliance mutual fund scheme do you prefer for

Investment?

Growth income balance

8. How do you come to know about Reliance

Mutual Fund?

Advertisement peer groups banks

Financial advisor Others specify……….

9. Which mode of investment do you prefer?

One time investment systematic investment plan

10. What is your expected return?

 Less than 10% 10-15% 15-20%

Above 20%

11. Do you perceive reliance mutual fund

Investment is completely safe?

Yes No

12. What do you expect from reliance mutual fund?

Better return & safety Regular income Tax benefit Reduction in risk & cost

13. Why you prefer reliance mutual fund?

Robust distribution network Lineage

Expertise Reliance SIP insure

14.Are you aware about portfolio construction?

Yes No

15. Do you have any contribution in portfolio construction?

Yes No

16. Where do you find yourself as a reliance mutual fund

Investor?

Totally ignorant Partial knowledge of mutual fund

Aware only of any specific scheme in which

you invested Fully aware

17. Would you like to switch relationship to other company?

Yes No

If yes, please specify reason……………………………………..

18. Which is your second option after reliance mutual fund?

 UTI ICICI HDFC SBI Other specify……..

19. Which service of RMF you would like to improve?

Transaction related services Account statement services Regular update

Innovative products Customer services

20. Will you recommend RMF to others?

Yes No

21. Why RMF is better than others?

Customer services Quality of products Low cost

Safety Others specify

22. Are you able to get a fair return on RMF?

Yes No

23. Why do you prefer RMF over direct trading?

Convenience

Professional management Safety & low risk

Fair return All the above

24. How would you rate RMF in solving investor’s

grievances?

Excellent very good good average

Bad verybad

25.are you satisfied with the services?

Fully satisfied Satisfied

Fully dissatisfied disatisfied