INVESTORS BEHAVIOR TOWARDS MUTUAL

FUNDS IN SURAT CITY

Name: Asmita Chhabra

Roll Number: 105

Under the Guidance of: Krunal Soni

 INTRODUCTION

■ A mutual fund is a professionally overseen investment avenue that pools cash from
numerous financial specialists to buy securities such as stocks, bonds, money
market instruments and other assets. The essential preferences of mutual funds are
that they give a larger amount of liquidity, they provide with diversification, and they
are overseen by proficient investors. On the down-side, investors in a mutual fund
must pay various charges and costs.
■ Mutual funds are operated by professional money managers, who allocate the
fund's investments and attempt to produce capital gains and/or income for the
fund's investors.
 RESEARCH METHODOLOGY

■ Introduction: The research study will basically cover up the analytical part in
terms of investors behavior towards the mutual fund investment.
■ Problem Statement: The study was conducted to know the investor’s behavior
towards Mutual Funds, most of the investors are facing problem with certain
discourages regarding features of Mutual Funds, and how they have a
perception towards Mutual Funds.
■ Objectives of the Study:
■ To analyze investors behavior towards mutual funds.
■ To analyze the impact of various demographic factors on investors attitude
towards mutual funds.
■ To study the different characteristics of Mutual Funds affecting investors
behavior.
■ Research Design : As the research design to be followed will be exploratory in
nature at the initial stage further on descriptive research design is followed.
■ Target Population : Target population of the study is Investors of Mutual Funds
particularly in Surat city.
■ Sampling Method : By adopting convenience sampling the essential data were
collected.
■ Sample Size : The total number of sample size that has been taken for the
study is 108 respondents.
■ Duration of Study : The duration of the study is approximately 3 months i.e.
from the month of January to March.
■ Data Collection Tool : The basic tool for collecting the data for the mutual fund
is to conduct the survey in the field as per the segregation of the population
through the Questionnaire. We get the information about the mutual fund
based on their knowledge, past experience about the mutual fund and factors
affected for the selection of their particular investment fund.
■ The secondary data has been collected from the various sites, research tools,
published book, journals, other authorized agency’s reports.
■ Methodology : For efficient and effective utilization of collective data, we have
used various statistical tools like Chi Square test, Hypothesis, ANNOVA test for
the various factors associated with the mutual fund investment, Cross
Tabulation.
■ Chi square test is also known as Chi square test for independence. The test is
applied when you have two categorical variables from a single population. It is
used to determine whether there is a significant association between the two
variables.
■ Apart from Chi square and Hypothesis testing, Measures of dispersion
techniques (Mean, Median and Mode) have been used to identify the
investor’s choice of investment.
■ Data Analysis Tool : The data and the information collected are processed and
analyzed using SPSS software.
 DATA ANALYSIS AND
INTERPRETATION
■ From this study of knowing about the Investors Behavior Towards Mutual Funds it
has been interpreted through various results of the tests and analysis done says
that ;
■ Firstly, the maximum number of respondents are from the age group 18-24, which
also can be related to the other demographic factor of occupation where maximum
respondents are students.
■ Then it is interpreted that most of the investors take a moderate risk in investing into
mutual funds.
■ The majority of the respondents do savings for their personal needs, whereas they
invest into Mutual Funds for Financial Security, Wealth Creation and Child’s
Education majorly.
■ It is analyzed that the investors got the information about Mutual Funds
majorly through the source of family, friends or relatives or through
advertisements And the major of the Investors purchase the Mutual Funds
from the medium of Brokers.
■ The majority of Investors invest in Equity whereas a low percentage of
investors have been investing in debt, liquid and gold. Whereas maximum of
investors invest in HDFC company.
■ From the sector based question we could interpret that almost 62% of the
Investors chose Banking Fund as their investment option into Mutual Funds.
■ Further , we could interpret through various tables and charts through the
tests like chi-square tests, homogeneity tests, cross tabulations, annova test.
■ Thus, these tests give the results that the sampling adequacy of the factors is
high.
■ The age of the respondent with occupation of the respondent and
qualification of the respondent show a highly correlated and has a
significance level less than 0.05, whereas the age of respondent with monthly
income of the respondent show a low correlation but if we take significant
level of 0.01 then the correlation between them can be seen.
■ Moreover through the homogeneity test of the factors return , uncertainty and
corporate governance show a P value greater than 0.05 which means the data
is homogenous.
■ Through the normality test, analysis shows the Normal distribution of the data
which has been proved thorough Kolmogorov-Smirnova test.
FINDINGS

OBJECTIVE QUESTIONS DISCUSSIONS

1. To analyze the Investor’s
behavior towards investment
in Mutual Funds.
How much of a risk taker are
you?
Majorly 49% of the investor’s
as analyzed are moderate risk
takers. So we get to know
through this that there are
some least investors who take
high risks.
OBJECTIVES QUESTIONS DISCUSSIONS
2) To analyze the impact Demographic Factors- Age, From the Cross Tabulations analyzed
of various demographic Qualification, Occupation, between the age group and the other
factors on investors Monthly average Income. demographic factors. Also we come to
attitude towards mutual know that in all cases there is a
funds. significant difference between the
demographic factors and high
correlation also seen.

From the Chi-Square tests we come to

know that the significant difference is
there in most factors.
From the Pearson’s and Spearmen
correlation the high correlation between
the demographic factors can be seen
and hence the null hypothesis is also
rejected
OBJECTIVES QUESTIONS DISCUSSIONS
3.) To study the different Which features of Mutual According to the analysis quick
characteristics of Mutual Funds Funds allures you the most? process, better returns, simple
affecting investors behavior. to invest and tax benefits are
the mostly preferred features
that allures the investors to
invest in mutual funds.

From the various tests of

knowing the features affecting
investors behavior we get to
know that the sampling
adequacy is high, also a
significant difference between
the factors is seen. With the
help of Normality tests, the
normal distribution of the data
has been proved.
Likewise the data has been
found homogeneous.
OBJECTIVES
3.) To study the different
characteristics of Mutual Funds
affecting investors behavior.
QUESTIONS DISCUSSIONS
Which features discourages According to the analysis
you the most? inefficient investment advisor,
unpredictability and difficulty in
selection of the scheme are the
features that most highly
discourages the investors to
invest in mutual funds.
From the various tests of
knowing the features affecting
investors behavior we get to
know that the sampling
adequacy is high, also a
significant difference between
the factors is seen. With the
help of Normality tests, the
normal distribution of the data
has been proved.
Likewise the data has been
found homogeneous.
 CONCLUSIONS

■ From the above study, I can conclude that according to the objectives of the study the
perception of the investor towards Mutual Funds has been proved through the various
tests done with the help of the SPSS Software, that the investors have a moderate level
of knowledge about the Mutual Funds , whereas the most of the investors have been
investing for a less number of time i.e. generally less than 2 years.
■ The demographic factors also have a significant difference between them, also the
sampling adequacy, homogeneity also has been proved. We can say through the analysis
that there are generally moderate risk takers, most of the investors invest in Equity class,
Banking funds, Maximum of them invest in the SBI-MF and have an investment need
mostly as a personal need. The investors in Surat are generally looking for the shorter
period of investment.