Summer Internship Report

On

(Customer Perception towards Mutual Fund as a tool of Investment)

Completed At

BAJAJ CAPITAL

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

AWARD OF THE DEGREE OF
Post Graduate Diploma In Management
To
Jaipuria Institute of Management, Noida
2020-2022

Under The Guidance of: - Submitted By: -

Dr. Puneet Dublish Harshit Verma
(SIP Mentor) PGFB2017
Mr. Nitin Ambardar
(Industry Mentor)

Session 2020- 2022

I
 STUDENT’S DECLARATION

I declare that the Report on “Customer Perception towards Mutual Fund as a tool of
Investment” is an original work done by me in accordance with the guidelines prescribed by
the SIP office for preparation of Summer Internship Project Report and the work has not been
submitted anywhere else for review.

Harshit Verma

Roll. No. – PGFB2017

PGDM (2020-22)

II
III
CERTIFICATE FROM COMPANY

IV
 ACKNOWLEDGEMENT

I would like to thank Bajaj Capital Limited for giving me an opportunity to get trained under
their direction. This training would not have been completed without the continuous guidance
and support of my Industry mentor Mr. Nitin Ambardar (Associate Vice President).

I express my heartfelt gratitude to “Mr. Sanjiv Bajaj (Joint Chairman & Managing Director)”
for his guidance encouragement and tutelage during the Internship despite this extremely busy
schedule.

I also thank my faculty mentor Dr. Puneet Dublish for his continuous support, and directional
guidance during the project. Lastly, I am thankful to all the people who have given their
precious time and provided me the complete support without which the project would not have
been completed. I also thank them for giving their valuable suggestions during the entire period
of Summer Internship.

Harshit Verma
PGFB2017

V
 ABSTRACT

A mutual fund is essentially a financial intermediary that allows a group of participants to

combine their cash and invest in a specific asset class. Financial markets are always improving
their efficiency by offering more enticing alternatives to clients. The primary concern for the
mutual fund industry is increasing investor knowledge and expanding into semi-urban and rural
areas. These steps will help to keep the mutual fund industry alive and competitive. The study's
goal is to learn about customers' impressions about mutual funds. The descriptive research
method is used in the study. The researcher distributed the questionnaire to 150 people, and
113 people took part in the survey. Chi-square analysis was done to determine the association
between the dependent and independent variables. The survey discovered that the majority of
those who took part in the study were under the age of 28 and had completed their studies up
to the level of graduation. Customers who invested the amount in mutual funds had expanding
income as their primary investment goal and were somewhat satisfied with mutual funds'
overall perception based on returns. Respondents who invest in mutual funds believe they
accept high risk in exchange for a high return. The empirical data show that demographic
indicators are strongly related to satisfaction with mutual fund investing, except for gender and
annual income, which are not. Investors today have a wealth of investment options open to
them in the financial markets. According to investors, the key reason for mutual funds' rising
popularity is the assurance of redemption at net asset prices. Investors have realized the benefits
of mutual funds. When selecting mutual funds, investors should consider more than one or two
characteristics, such as greater returns, degree of transparency, good service, wealth
management, and mutual fund reputation.

VI
 TABLE OF CONTENTS

S. NO. NAME PAGE NO.

STUDENT DECLARATION II

III

CERTIFICATE FROM COMPANY IV

ACKNOWLEDGEMENT V

ABSTRACT VI

TABLE OF CONTENT VII

LIST OF TABLES IX

LIST OF FIGURES XI

1 INTRODUCTION 1

1.1 INDUSTRY PROFILE 6

1.2 COMPANY PROFILE 7

1.3 SIGNIFICANCE OF STUDY 9

2 LITERATURE REVIEW 10

3 Chapter -3 : Research Methodology 12

3.1 – Objectives of Research 12

3.2 -Type of Research used 12

3.3 -Scope of Research 12

3.4 -Source of Data Collection 12

3.5 -Sampling Technique 12

3.6 -Sample Size 13

3.7 Hypothesis Of The Study 13

VII
 TABLE OF CONTENTS

S. NO. NAME PAGE NO.

3.8 -Limitation Of The Study 13

4 Chapter-4 : Data Analysis 14

5 Chapter-5 : Findings 37

6 Chapter-6 : Conclusion 39

7 RECOMMENDATIONS 40

REFERENCE 41

APPENDIX 42

VIII
 LIST OF TABLES

TABLE NAME PAGE NO.

NO.
1 Table 1: Age of respondents 14

2 Table 2: Gender of respondents 14

3 Table 3: Education level 15

4 Table 4: Occupation 16

5 Table 5: Annual income 16

6 Table 6: Marital status 17

7 Table 7: Investment experience 18

8 Table 8: Awareness of mutual fund 18

9 Table 9: Source of information 19

10 Table 10: Purchase of mutual fund 20

11 Table 11: Mostly prefer to investment 20

12 Table 12: Amount spending mutual fund 21

13 Table 13: Reason for not investing in mutual fund 22

14 Table 14: Issues faced by mutual fund investors 22

15 Table 15: Investment objective behind investment in mutual 23

fund
16 Table 16: Factors influencing investment in mutual fund 24

17 Table 17: Type of schemes 24

18 Table 18: Features of mutual fund 25

19 Table 19: Perception towards mutual fund based on return 26

20 Table 20: Risk feel that investing in mutual funds 26

21 Table 21: Returns have expected while investing in mutual 27

funds

IX
TABLE NAME PAGE NO.
NO.
22 Table 22: Issues in investing on mutual funds 28

23 Table 23: Level of satisfaction towards mutual funds 29

24 Table 24: Mean and standard deviation for the level of 30

preferences
25 Table 25: Mean and standard deviation for investment 31
awareness
26 Table 26: Association between the age and satisfaction 32
towards mutual fund
27 Table 27: Association between gender and satisfaction 33
towards mutual fund
28 Table 28: Association between education and satisfaction 34
towards mutual fund
29 Table 29: Association between occupation and satisfaction 35
towards mutual fund
30 Table 30: Association between annual income and satisfaction 36
towards mutual fund

X
 LIST OF FIGURES

FIG NO. NAME PAGE NO.

1 Figure 1: Age of respondents 14

2 Figure 2: Gender of respondents 15

3 Figure 3: Education level 15

4 Figure 4: Occupation 16

5 Figure 5: Annual income 17

6 Figure 6: Marital status 17

7 Figure 7: Investment experience 18

8 Figure 8: Awareness of mutual fund 19

9 Figure 9: Source of information 19

10 Figure 10: Purchase of mutual fund 20

11 Figure 11: Mostly prefer to investment 21

12 Figure 12: Amount spending mutual fund 21

13 Figure 13: Reason for not investing in mutual fund 22

14 Figure 14: Issues faced by mutual fund investors 23

15 Figure 15: Investment objective behind investment in mutual 23

fund
16 Figure 16: Factors influencing investment in mutual fund 24

17 Figure 17: Type of schemes 25

18 Figure 18: Features of mutual fund 25

XI
TABLE NAME PAGE NO.
NO.
19 Figure 19: Perception towards mutual fund based on return 26

20 Figure 20: Risk feel that investing in mutual funds 27

21 Figure 21: Returns have expected while investing in mutual 28

funds
22 Figure 22: Issues in investing on mutual funds 28

23 Figure 23: Level of satisfaction towards mutual funds 29

24 Figure 24: Mean and standard deviation for the level of 30

preferences
25 Figure 25: Mean and standard deviation for investment 31
awareness
26 Figure 26: Association between the age and satisfaction 32
towards mutual fund
27 Figure 27: Association between gender and satisfaction 33
towards mutual fund
28 Figure 28: Association between education and satisfaction 34
towards mutual fund
29 Figure 29: Association between occupation and satisfaction 35
towards mutual fund
30 Figure 30: Association between annual income and 36
satisfaction towards mutual fund

XII
 CHAPTER-I
INTRODUCTION
1. INTRODUCTION
The Indian financial system is one of the largest in the world, with a wide range of bank,
economic, and financial market organizations and tools. The Indian financial system is
thoroughly examined to determine initiatives aimed at developing a healthful, effective, and
business system through interest rate liberalization, the advancement of financial products for
valuing debt levels and personal loans, the alignment of India's legislative and financial
reporting standards with global standards, monetary and financial policy adjustments, and so
on.
An investor is someone who invests money to profit from it. Investors who do not like to take
a chance on capital market volatility prefer mutual funds. The mutual fund sector has been in
India since 1963. The mutual fund raises money by selling its stakes to the public, similar to
any other business that can sell stock to the public. It then proceeds from selling its stakes to
fund its operations (along with any money made from previous investments). It invests in
various investment vehicles, including equities, bonds, and money market securities. In
exchange, the public contributed funds to the mutual fund by purchasing holdings in its
underlying schemes. Each unit in these schemes represents an investor’s stake in the underlying
fund, and the scheme’s NAV determines the fund’s appreciation. The NAV is directly related
to market developments, as the pooled funds are invested in either equity shares, debentures,
or treasury bills.
Today, investors have a plethora of investment possibilities. Bank deposits, bonds, stocks,
mutual fund investments, and corporate debentures are just a few of them. Investors place their
money in low-risk assets such as banks, bonds, and corporate debentures. On the contrary,
company stocks carry a significant degree of risk and offer a high rate of return. Recent trends
indicate that the average investor has lost money in equities over the last year. People are
increasingly turning to portfolio managers with experience in the stock market. Numerous
institutions around India offer wealth management services. The common investor has
discovered a secure haven in mutual funds.
Mutual funds are critical in mobilizing resources and allocating them efficiently to the
productive sources of the economic system. These funds are responsible for financial
intermediation, capital market development, and corporate sector growth worldwide. The
Indian economy’s liberalization, deregulation, and restructuring have necessitated the efficient
deployment of finite financial resources. Mutual funds have emerged as formidable financial
mediators during this development phase. They are critical in ensuring the financial system’s
stability and efficiency in resource distribution.
The mutual fund industry in India is a rapidly rising segment of the financial markets. They
have developed into a significant vehicle for mobilizing resources, particularly from small and
home depositors, for capital market investment. Mutual funds joined the Indian capital market
in 1964 to provide risk diversification, guaranteed returns, and professional management to
regular investors. Since then, they have developed exponentially in terms of number, size of
operation, investor base, and scope. As a participant in financial markets, the mutual fund
sector responds quickly by understanding the dynamics of investors’ perceptions of rewards.

1
However, they are still in a constant race to differentiate their products in response to economic
shocks. Each sort of investment, including mutual funds, carries a certain level of risk. Risk
refers to the chance that investors will lose money on an investment (both the principal and any
earnings) or will fail to profit from it. The investing aim and holdings of a fund are significant
factors in determining how hazardous the fund is. Reading the prospectus enables investors to
get familiar with the risks connected with a particular fund. Thus, it is critical to comprehend
and analyze investors’ perceptions of such risks and expectations to uncover some incredibly
significant data to aid in mutual fund financial decision-making.
A mutual fund pools the money of investors who share a common investment objective. The
money is invested in various securities based on the mutual fund scheme’s objectives, and the
gains (or losses) are distributed to investors in proportion to their contribution. Securities
investments span a broad range of companies and sectors. Diversification mitigates risk, as not
all equities will move in the same direction or proportionately at the same time. Mutual funds
distribute units to investors in proportion to their investment. Unitholders are investors in
mutual funds. Profits and losses are shared proportionately by investors. Mutual funds typically
offer various plans with varying investment objectives that are launched periodically. A mutual
fund must be registered with the SEBI, which supervises the securities markets before
accepting funds from the public.
A mutual fund is a type of collective investment vehicle. Mutual funds are critical in mobilizing
small investors’ assets and channeling them into productive companies in the Indian economy.
In India, a mutual fund can raise funds by selling units to the general public. It may be
established in the form of a trust by the Indian Trust Act. The mutual fund acts as a conduit
between investors and the stock market by pooling investors’ savings and investing them in the
stock market to create profits. As a result, mutual funds are comparable to portfolio
management services. While both are conceptually identical, they are not identical. Portfolio
management services are available to high net worth people; their investments are managed
independently based on their risk profile. Mutual funds aggregate the savings of small investors
into a single plan, and the returns are dispersed in the same proportion as the individuals’
deposits.
Mutual Fund
An MF is a type of financial instrument that consists of a pool of money that numerous
participants pool together to invest in stocks, stocks, and other assets. MFs are typically
managed by investment managers who distribute the fund’s assets while attempting to produce
capital gains or income for the fund in which it has invested. It develops and manages an MF
portfolio to fulfill the investment aim.
An MF gives small and individual investors access to professionally managed bond, stock, and
debt portfolios. That shareholder is entitled to a proportionate share of the fund’s profits or
losses. MFs invest in a wide range of securities, and the performance of the underlying stock
often measures their performance. It is assessed as a decrease in market value overall.
An MF is a mostly untapped market in India
According to a recent Boston Analytics report on Mutual Fund Investments in India, although
less than 10% of Indian families have invested in MFs, investors are afraid to participate in

2
MFs because of significant risk and lack of knowledge about how they operate. As of June
2013, 46 MFs were eligible.
The primary reason for not investing appears to be related to the city's size. Nearly 40% of
those in underground and Tier I cities saved a significant amount of money, while 33% of
people in Tier II cities said they didn't know where or how to spend these assets.

Advantages of Mutual Funds

Mutual funds have recruited retail investors for a variety of reasons over the years. Mutual
funds are where the great majority of retirement assets are placed. Some fusions have never
stopped raising funds.
Diversification
A fund manager can help you diversify your investments and reduce risk in your investments.
Diversification is marketed as a means of enhancing portfolio returns while decreasing
portfolio risk. Investors can reduce risk and diversify their portfolios by purchasing individual
business stocks and balancing them with industry stocks. On the other hand, a diverse portfolio
is not focused on a single sector of the economy. Buying a mutual fund is less expensive and
provides more diversification than investing in individual assets. Large mutual funds own a
diverse range of stocks from several industries. A corporation would be unable to construct this
portfolio with a limited amount of funds
Easy Access
The large portfolio bursary market’s equities are often traded, making their portfolios relatively
liquid. Mutual funds are the most cost-effective way to invest in such securities as multinational
stocks and exotic commodities.
Economies of Scale
Lower-cost mutual funds are also available. By investing in one, the investor saves the time
and effort required to identify and purchase numerous investments. Buying only one security
at a time incurs large transaction fees and restricts the investment’s longevity. Mutual funds
buy and sell a huge number of securities, so the cost of their transactions is less than the fee
they charge for them.
Freedom of choice and variety
Investors can consider a management team with a diverse set of management strategies and
performance objectives. A fund manager can concentrate on value, growth, or the larger
macroeconomy, among many other investment approaches. Similarly, counselors may use a
variety of strategies to manage the cash. Securities, mutual funds, trusts, and real estate are
some of the investment alternatives available to investors.

Disadvantages of Mutual Funds

Younger investors, inexperienced investors, and other individual investors can acquire
appealing investment options due to liquidity, diversification, and management abilities.
However, no asset is completely safe, and mutual funds have disadvantages.
Fluctuating Returns
There is no guarantee that the value of your mutual fund will not deteriorate like any other
investment. The interest rates and trustworthiness of common-service funds and their assets
vary.

3
High Costs
Mutual funds require professional investment managers, but they come at a high cost. These
payments reduce the total cost of the trust and are made regardless of how the trust performs.
Such taxes amplify losses in years when the fund is losing money. The running costs of a
mutual fund are significant. The expenses of this investment firm are entirely derived from the
manager’s compensation and the quarterly statements of the investors. These services will be
charged to investors.
Diversification
The term “diversification strategy” refers to a portfolio or investment plan that requires too
much uncertainty to provide negative results. Most investors appear to find investing too
difficult. They have so many concentrated stocks that holding several stocks does not reduce
their risk. Those shareholders should have revealed more information. If you invest in mutual
funds, you will not be diversified. A fund that solely invests in one industry or country is a less
desirable investment.
Lack of Liquidity
A mutual fund can consolidate and cash out the shares, but this option is only accessible after
each trading day.
Role of SEBI in Mutual fund
SEBI is the policymaker in charge of mutual funds and also governs the sector. It establishes
guidelines for mutual funds to protect investors’ interests. Mutual funds have significantly
different investment policies and asset allocation techniques. It is necessary to have consistency
in the functioning of mutual funds, which can be identical in schemes. It will make it easier for
shareholders to make investment decisions.
To encourage standardization and uniformity in comparable schemes, the Mutual Fund was
listed as follows:

• Debt Schemes
• Solution-Oriented Schemes
• Hybrid Schemes
• Equity Schemes
• Other Schemes

With a few exceptions, categorizing and streamlining mutual funds into these five primary
categories means that mutual fund businesses may only have one program in each sub-
category. It simplifies the fund selection process and works in the best interests of investors by
examining the risk choices they make before investing in any scheme.

AMFI
The essential job of AMFI within the Mutual Fund is to protect the interests of Indian
enterprises and asset management firms. It also supports transparency and accessibility of
investments to attract more people. As a result, to make mutual fund investments more
accessible, the funds of institutions, trustees, advisors, intermediaries, and other interested
persons should be registered on the AMFI website. There are presently 44 registered members,
including 42 asset management firms that are SEBI-registered. To promote transparency in the

4
mutual fund business, AMFI advertising frequently warns investors of their hazards. Through
a gift from participating AMCs, AMFI has launched MF utilities, a Mutual Fund Investment
Platform. This MF utility platform is free for investors and brings together various mutual funds
to make investing simple. Mutual funds are popular around the world due to the variety of
investment opportunities they provide. There’s much to be said for profile and preference.

Investments
An investment is the present engagement of assets around an amount of time. The
excitement of obtaining future assets could accommodate the shareholder for either the period
the assets are perpetrated, the actual inflation rate, or the likelihood (uncertainty of future
payments). People have invested because of the urge to withdraw money from those in the
present to the long term. Institution’s shareholders estimate potential cash requirements and
expect that their profits cannot satisfy specific future needs. Another intention is the willingness
to stimulate economic growth, enabling wealth creation, as the return on investment is not
assured.
Classification of investment
Investments by persons are produced with those who intend to develop capital growth,
tax deduction, or both. There will be numerous resources that give shareholders a confluence
of investment returns and earnings. There is still a broad range of commodity choices available
to investment firms to meet their expectations. All assets required for personal investment are
usually classified into two types:
Financial Assets
Significant opportunities for individual people are accessible throughout this grade of
resources. Investment funds are implicit allegations for financial assets. They are
unquantifiable and available in different forms such as securities, stocks, investment funds,
exchanged funds, property investment gets to know, or various equity and debt in different
ratios. Unintended assertions on valuable metals such as silver and gold are categorized as
investments. Financial assets premised on their features and traits are widely labeled into:

5
 • Debt
• Equity
• Hybrid instruments

Trend in India
India has emerged as one of the world’s significant economies, having enormous potential for
long-term growth. The Indian economy is developing faster and is brimming with investment
opportunities. According to Mckinsey, the income of the average Indian will grow by 2025. In
the years ahead, this would result in further spending.

1.1 INDUSTRY PROFILE

The Indian market, which is presently worth USD 310 million, is predicted to expand to USD
840 million by 2025, at a CAGR of 22%.
While the Payments and Alternative Finance segments accounted for more than 90% of the
sector’s investment flows in 2015, there has been a significant shift in the sector’s investment
distribution since then. By 2020, FinTech SaaS and InsurTechs will have raised a total of USD
14.5 billion and USD 21.5 billion, respectively, reflecting a 4-5X increase in funding over
2015.
There are four wealth and broking FinTechs, five insurance FinTechs, and eight SaaS FinTechs
among India’s more than 50 FinTechs with a valuation of more than USD 1 billion.
UPI is likely to grow dramatically in the coming years, with domestic and multinational
businesses continuing to dominate the industry and investing heavily in developing the
payments infrastructure.
Industry trend
• Digital Lending is a growing industry.
Increased ticket sizes and demand from Tier-II, III, and IV markets, combined
with improved risk management and service delivery approaches, have been observed
progressively.
• No-Cash Economy
The expected rapid rise in digital payments (driven by UPI) as India draws
closer to a cashless economy.
• Wealth Management services are increasingly being delivered via WealthTech
platforms
India presently has around 440 WealthTech startups offering personal finance
management, digital brokerage, financial research, and Robo advisers.
• Indian government encourages innovation in the field.
The Government of India is continuously developing a framework for growth
and innovation in the sector through initiatives such as the IMSC on Fintech, Joint
Working Groups on Fintech GIFT City.
• Technology in Insurance
Increased investment in the segment and AI and machine learning to generate
personalized product segments have been observed significantly over the previous few
years.

6
 • Blockchain
Broad adoption of blockchain technologies for various reasons, particularly in
the financial services and healthcare industries. Additionally, over the last few years,
prominent Indian developers and service providers have emerged in the area, enabling
a broad range of use cases for these technologies.
DRIVERS OF GROWTH
• Funds Amount
The sector’s innovation is fueled by the huge volume of funding from venture capital,
private equity, and institutional investors.
• India stack
Open API platforms for the India stack, namely Aadhar, UPI, Bharat Bill Payments,
and GSTN
• Innovative business models
Implementation of new business models enabled by artificial intelligence and machine
learning technologies
• Digital behavioral trends of the Indian populace
By 2020, India will have 550-600 million cellphones (60 percent more than in 2016),
and the number of internet users would have increased significantly over the last four
years (Primarily driven by lower data tariffs)
• India’s STEM capabilities are formidable.
India’s strong STEM mindset and educational institutions have facilitated the growth
of the sector’s talent pool.
1.2 COMPANY PROFILE

The Bajaj group was found during the turbulence and excitement of India’s freedom fight. The
founder of this company is ‘Jamunalal Bajaj.’ He was a friend and follower of Mahatma Gandhi
and was participated in the freedom struggle. Honesty, commitment, resourcefulness, and the
power to succeed are commonly traced back to those long days of uncompromising devotion
to a single purpose.
Since 1968, Rahul Bajaj is the CEO of this company. He is widely considered one of the most
outstanding business leaders in India. He has been recognized for his exploits in numerous
worldwide excursions, and he is as dynamic and aspirational as his forebears. Nowadays, Bajaj
is currently one of the major manufacturing companies of two-and three-wheelers. The former
revenue of seventy million rupees has been drastically increased to almost four billion rupees.
For almost four decades, Bajaj Capital has supported people in achieving their goals by
expanding their money and organizing their financial lives. Among other things, Bajaj Capital
offers financial advice, insurance, tax preparation, retirement planning, and kid future planning.
Bajaj Capital provides a comprehensive range of investment opportunities, including

7
practically all significant public and private companies and the government sector. Bajaj
Capital’s nationwide network of around 200 branches provides these services and products.
The organization serves individual Investors, Corporates, HNWIs, and Non-Resident Indians,
a SEBI-approved Category I Merchant Banker. Over 800,000 individual investors and 3000
institutional clients have recognized the company’s commitment to wealth building through
impartial, need-based, and research-based guidance.
Journey
The company has made significant contributions to the Indian capital market’s growth at every
stage. We pioneered the Companies Fixed Deposit in 1965. Today, we are actively involved in
the development of the Indian mutual fund business. This is a snapshot of our travels over the
years.
Vision
The most respected and recommended wealth creation and protection brand in India.
Mission
Provide need-based solutions at an affordable price, establishing long-term client connections
through a happy team and superior service.
Core value
• Entrepreneurial and ethical ideals
• Responsibilities
• Nurturing
• Collaboration
• Innovation
• Satisfied clients and teams
Services
• Bonds
• Insurance
• Mutual funds
• Real estate
• Fixed deposits
Competitors
• Sharekhan
• IIFL
• Indiabulls

SWOT analysis
Strengths
• A diverse array of financial products
• Well-known for mutual funds and term deposits
• Over 200 branches located throughout the US
Weaknesses
• Limited penetration in rural areas
• Lack of knowledge due to limited exposure
• Conservative investors prefer gold

8
Opportunity
• Capitalizing on expanding rural market prospects
• Earning urban youth seeking investment opportunities
Threats
• Strict economic measures by the government and RBI
• Foreign financial institutions enter the Indian market

1.3 SIGNIFICANCE OF THE STUDY

The study looked at mutual fund investors’ perceptions as well as their attitudes. This gives
you a complete overview of the mutual fund industry and its growth and potential. The current
study will be tremendously useful to politicians, and mutual fund administrators formulate
appropriate laws to promote mutual fund investor contentment and mutual fund business
profitability. Furthermore, this study will help future researchers explore mutual funds and
investor views in various other multi-dimensional disciplines. The current study supports
individuals in saving and investing their extra money for a range of beneficial purposes. As a
result, the country’s capital accumulation increases, and investors earn larger returns.

9
 CHAPTER-II
REVIEW OF LITERATURE
Saini et al. (2011) examined investor perceptions and investor behavior on a range of topics,
including the MF schemes, the MF purpose, the role of financial advisors, sources of
information, service deficiencies, investors’ attitudes towards the aspects that encourage them
to an investment portfolio, and the difficulties that Indian m faces. According to the report,
investors want liquidity, ease of use in offer paperwork, internet trading, regular SMS
notifications, and rigorous adherence to AMFI standards.
Walia and Kiran (2009) investigated investor perceptions of risk and returned to mutual funds.
The study analyzed investors’ perceptions of MF risk, MF returns in contrast to other financial
outlets, and MF transparency and disclosure standards. The study examined the difficulties
investors face as a result of poor MF services. According to the report, most individual
investors do not view mutual funds as high-risk investments. Indeed, on a ranking scale, it is
deemed to be superior to other financial routes. Additionally, the study found a substantial
degree of interdependence between investors’ income level and their impression of investment
returns from mutual funds.
Rajasekar (2013) researched to ascertain investors’ perceptions of their profile, income, saving
habits, investment habits, and personality factors. A survey was undertaken to ascertain the
level of investor preference, considering the numerous factors that influence investors’
decision-making. Due to the size of the investor population, a questionnaire survey was used
for the project. A sample size of 150 investors was used. The data indicate that the investor is
extremely concerned with their investments’ safety, growth, and liquidity. The majority of
respondents are quite satisfied with the perks and services provided by mutual funds
Singh (2012) did an empirical study on customers and discovered that most respondents were
unaware of mutual funds’ various activities. When it comes to MF investing, they are
bewildered. The survey revealed that demographic factors such as gender, wealth, and level of
education had a significant impact on how consumers felt about mutual funds. Age and
occupation, on the other hand, were determined not to affect an investor’s thinking. According
to the results, mutual funds’ return potential and liquidity were deemed the most desirable
investment benefits. Then there’s adaptability, openness, and affordability.
Sharma and Agrawal (2015) investigated the impact of demographic factors on MF investment
decisions. According to the survey, investor attitudes differ depending on their demographic
profile. The age, marital status, and occupation of investors directly impact their investment
decisions. Furthermore, the analysis indicates that the female sector is underutilized.
Furthermore, the research shows that liquidity and transparency are two important factors
influencing investment decisions.
According to Kumar and Bansal (2014), many parameters show investors’ attitudes toward
mutual funds. According to the report, many investors are ignorant of the MF investment
approach since they continue to rely on traditional investing patterns such as bank deposits and
postal savings. The majority of MF investors held the fund for a maximum of three years before
departing. The fund did not achieve the intended results specified in the MF scheme’s purpose
at its inception. Furthermore, the study discovered that most MF investors rely on brokers and
agents to invest in mutual funds.

10
Mane (2016) examined customer perceptions of mutual funds, specifically the schemes they
prefer, the plans they choose, and the reasons for their choices. Additionally, this research
examined alternative investment options that people prefer in addition to and apart from mutual
funds, such as postal savings schemes, recurring deposits, bonds, and stocks. The findings of
this study indicate that consumers are cautious about investing in new-age investments such as
mutual funds and preferring to hedge their bets through less hazardous investment options such
as recurring deposits.
According to Rathnamani (2013), many investors prefer to invest in mutual funds because they
provide a high rate of return with a low level of risk, safety, and liquidity. Today’s investment
world is evolving, and as a result, investors’ preferences for investment patterns have shifted
as well. According to the demographic profile, most investors are ready to invest only 10% of
their yearly personal income; around 39% of investors are between 31 and 40. Investors in this
study are willing to take moderate and low-risk investments; most investors have a moderate
investment style.

11
 CHAPTER-III
RESEARCH DESIGN

3.1 OBJECTIVES OF THE STUDY

• To analyse the investors’ satisfaction with mutual fund investments.
• To identify the preference of the customer towards MF schemes
• To determine the factor influencing the MF on investment
• To assess the customer’s level of awareness regarding investment;
• To make a suitable recommendation for increasing the customer’s investment in MF

3.2 Type of Research Used :-

In this research project, I have used the Descriptive Research for which the explanation is given
below :-
Descriptive research is chosen as testing objective because it deals with theories and by
examining the analyzed data of a single person or community’s characteristics to achieve the
research objectives. Descriptive analysis often deals with precise forecasts, the narration of
facts, and features relating to people, groups, or circumstances (Kothari 2008).

3.3 SCOPE OF THE STUDY

This study looks at the future of the Mutual Funds sector and the general public’s understanding
of Mutual Funds. Furthermore, this Mutual Funds project report provides management insight
into how mutual funds operate in the current market environment and the future. This mutual
fund research paper is aimed to educate students who want to understand and finish sector
assignments. This study also aids the general public by informing them on the importance of
and opportunities for investing in Mutual Funds. Different financial organizations provide
services that are both complementary and competitive. A solid financial system contributes
directly to a country’s economy. It requires, among other things, understanding the underlying
concept of mutual funds, mutual fund schemes, investment alternatives, investment
considerations, investor expectations for mutual funds, and investor preferences for various
mutual fund schemes
3.4 SOURCE OF DATA COLLECTION

Primary data from individuals from various income groups and job areas invested in different
alternatives and different investment sectors. Secondary data from different journals and books
were obtained
3.5 SAMPLING TECHNIQUE :-
Sampling Technique that we used in this research project is given below :-
Simple Random Sampling: It is one of the finest sampling technique which helps in saving
time of the researcher. It is the most trustable method for extracting information in which we
choose a single person from the population and it is chosen randomly, where each and every
person has similar probability of being selected and to be the part of a sample that we will use
for the research.

12
3.6 SAMPLE SIZE

The researcher sent the questionnaire to 150 respondents, in which 113 respondents
participated in the survey. Hence, the response rate for the study is 88% which is sufficient to
execute the study in an appropriate way

3.7 HYPOTHESIS OF THE STUDY

• To check whether “Age of investor ” varies the level of satisfaction with mutual fund
or not.
• To check whether “Gender” has an impact over the level of satisfaction on mutual fund
or not.
• To test whether the Education Background of an investor has an impact over the level
of satisfaction on mutual fund or not.
• To test whether the “Occupation” of an investor varies their level of satisfaction on
mutual fund or not.
• To know whether “level of satisfaction” on mutual fund is varied with “Annual Income
of an investor” or not.

3.8 LIMITATION OF THE STUDY

• The study is limited to respondents and cannot be considered as a general common

view.
• The analysis was based on the data collected with the interview schedule’s help, which
might have its limitation.
• The study is confined to the individual investors’ viewpoint, which could be biased

13
 CHAPTER - IV

DATA ANALYSIS

Table 1: Age of respondents

Particulars No. of respondents Percentage

20-28 years
43 38.1
28 to 38 years
39 34.5
38 to 48 years
31 27.4
Above 48 years 0 0.0

Total 113 100.0

The table above reveals that 38.1% of respondents belong to the age group of 20 to 28 years,
followed by 34.5% of respondents belonging to the age categories from 28 to 38 years, and
27.4% belong to the age categories of 38 48 years. It is also evident that most respondents who
participated in the study belong to the ages of less than 28 years.

Figure 1: Age of respondents

Table 2: Gender of respondents

Particulars No. of respondents Percentage

Male 53 46.9
Female 60 53.1
Total 113 100.0

The study inferred that 46.9% of respondents are male, and the remaining 53.1% of respondents
are female. Hence, it is concluded that 50% of respondents who participated in the study are
female.

14
 Figure 2: Gender of respondents

Table 3: Education level

Particulars No. of respondents Percentage

Diploma 17 15.0
Graduate 47 41.6
Postgraduate 36 31.9
Professional degree 13 11.5
Total 113 100.0

The table above indicates that 15% of respondents are educated up to diploma, followed by
41.6% have completed graduates degree, 31.9% of respondents have completed up to
postgraduates, and 11.5% are professional degree. Thus, it is evident that most respondents
who participated in the study have completed the studies up to graduates degrees.

Figure 3: Education level

15
Table 4: Occupation

Particulars No. of respondents Percentage

Self-employed 29 25.7
Banker 13 11.5
Teacher 15 13.3
Government employee 4 3.5
Others 52 46.0
Total 113 100.0

It has been found from the above table that 25.7% of respondents are working as self-employed,
followed by 11.5% of respondents are working as a banker, and 13.3% of respondents are
working as a teacher. Also, an identical government employee has participated in the study is
3.5%, and 46% are others. Therefore, it concluded that most of the respondents who
participated in the study are others.

Figure 4: Occupation

Table 5: Annual income

Particulars No. of respondents Percentage

Below 2 lakh 35 31.0
2 to 6 lakh 35 31.0
Above 6 lakh 43 38.1
Total 113 100.0
The table above shows that 31% of respondents who participated in the survey earn less than
2 lakh, followed by 31% of respondents earning between 2 and 6 lakh, and 38.1% are earning
more than 6 lakh. Thus, it is evident that most of the respondent those who participated in the
study are earning more than 6 lakh.

16
 Figure 5: Annual income

Table 6: Marital status

Particulars No. of respondents Percentage

Married 44 38.9
Unmarried 69 61.1
Total 113 100.0

Out of 113 respondents, it has been observed that 38.9% of respondents are married, and the
remaining 61.1% of respondents are unmarried. Hence, it is concluded that the majority of
respondents who participated in the study are unmarried.

Figure 6: Marital status

17
Table 7: Investment experience

Particulars No. of respondents Percentage

Less than two years 59 52.2

2 to 4 years 36 31.9
Above four years 18 15.9
Total 113 100.0

According to the table, 52.2 percent of respondents had less than two years of investing
experience, 31.9 percent have investing experience in mutual funds between 2 and 4 years, and
15.9 percent have invested in MF for more than four years. As a result, most of the respondents
in the study have less than two years of investment experience in bajaj capital.

Figure 7: Investment experience

Table 8: Awareness of mutual fund

Particulars No. of respondents Percentage

Yes 84 74.3
No 29 25.7
Total 113 100.0

It has been found from the above table that 74.3% of respondents are familiar with mutual
funds, and the remaining 25.7% are unaware. As a result, most respondents are familiar with
and interested in investing in mutual funds.

18
 Figure 8: Awareness of mutual fund

Table 9: Source of information

Particulars No. of respondents Percentage

Newspaper 16 14.2
Internet 36 31.9
TV 22 19.5
Friends 26 23.0
Agent 13 11.5
Total 113 100.0

From the table, it has been found that 14.2% of respondents are known about the mutual fund
by the newspaper, followed by 31.9% of respondents are known by internet, 19.5% of
respondents are known by TV, 23% are friends, and the remaining 11.5% are an agent.
Therefore, it is concluded that most of the respondents who participated in the study are come
to know about the mutual fund through the internet.

Figure 9: Source of information

19
Table 10: Purchase of mutual fund

Particulars No. of respondents Percentage

Online 42 37.2
Through broker 46 40.7
Post office 2 1.8
Bank branches 23 20.4
Total 113 100.0

The table shows that 37.2% of respondents have purchased their mutual fund scheme online,
followed by 40.7% of respondents who have purchased through broker, 1.8% of respondents
are purchase through the post office. The remaining 20.4% of respondents who have purchased
through the post office are purchased through bank branches. Thus, it concluded that most of
the respondents who participated in the study purchased the Bajaj capital mutual fund through
a broker.

Figure 10: Purchase of mutual fund

Table 11: Mostly prefer to investment

Particulars No. of respondents Percentage

Bank deposit 36 31.9
Equity shares 35 31.0
Mutual fund 42 37.2
Total 113 100.0

The table above shows that 31.9% of respondents mostly preferred to invest in bank deposits,
followed by 31% of respondents are preferred equity shares, and the remaining 37.2% of
respondents are preferred to invest in a mutual fund. Hence, it is evident that the highest number

20
of respondents who participated in the study prefers to invest the amount for their plans in the
mutual fund.

Figure 11: Mostly prefer to investment

Table 12: Amount spending mutual fund

Particulars No. of respondents Percentage

Less than 10000 49 43.4
10000 to 20000 38 33.6
Above 20000 26 23.0
Total 113 100.0

It has been observed from the table that 43.4% of respondents have invested the amount in a
mutual fund should be less than 10000, followed by 33.6% have invested between 10000 and
20000 and 23% of respondents have invested the amount is more than 20000. Thus, it is
inferred that most of the respondents who participated in the study have invested the amount
in a mutual fund should be less than 10000.

Figure 12: Amount spending mutual fund

21
Table 13: Reason for not investing in mutual fund

Particulars No. of respondents Percentage

Not aware of mutual fund 33 29.2

Difficult to understand 18 15.9

Not any specific reason 62 54.9

Total 113 100.0

It is found from the table that 29.2% of respondents are not aware of mutual funds, followed
by 15.9% of respondents who are difficult to understand the mutual fund scheme, and the
remaining 54.9% of respondents do not have any specific reason for not investing in a mutual
fund. Thus, it is concluded that most respondents who participated in the study are not having
any specific reason for not investing in the mutual fund.

Figure 13: Reason for not

investing in mutual fund

Table 14: Issues faced by mutual fund investors

Particulars No. of respondents Percentage

Low income 17 15.0
Unable to aware of market 48 42.5
Fees and commission 13 11.5
Poor service of broker 18 15.9
Non-availability of branch 17 15.0
Total 113 100.0

22
From the table above, it shows that 15% of respondents are facing low-income issues, 42.5%
of respondents are unable to aware of the market, 11.5% of respondents are facing the fees and
commission problem, 15.9% are poor service of a broker, and 15% are non-availability of the
branch. Hence, it is inferred that most of the respondents who participated in the study have
said that mutual fund investors cannot be aware of the market.

Figure 14: Issues faced by mutual fund investors

Table 15: Investment objective behind investment in mutual fund

Particulars No. of respondents Percentage

Growth in income 52 46.0
Tax saving 17 15.0
Earning high return 38 33.6
Future expense 6 5.3
Total 113 100.0

According to the above table, 46 percent of respondents have a mutual fund investment
objective of growth income, 15 percent are interested in mutual funds for tax savings, 33.6
percent have a mutual fund investment objective of earning a high return, and 5.3 percent
have a mutual fund investment objective for future planning. As a result, most respondents
had growth income as their primary investment goal when investing in mutual funds.

Figure 15: Investment objective behind investment in mutual fund

23
Table 16: Factors influencing investment in mutual fund

Particulars No. of respondents Percentage

High return 52 46.0
Risk 4 3.5
Liquidity 25 22.1
Tax exemption 29 25.7
Prompt services 1 .9
Schemes performance 2 1.8
Total 113 100.0

According to the table, 46 percent of respondents have a high return influencing their mutual
fund investment, followed by 3.5 percent influencing their mutual fund investment due to risk,
22.1 percent influencing their mutual fund investment due to liquidity, 25.7 percent influencing
their mutual fund investment due to tax exemption, and 0.9 percent influencing their mutual
fund investment due to tax exemption. As a result, the majority of respondents believe that high
returns affect mutual fund investment.

Figure 16: Factors influencing investment in mutual fund

Table 17: Type of schemes

Particulars No. of respondents Percentage

Equity fund 29 25.7

Balanced fund 23 20.4

Index fund 8 7.1

Debt fund 12 10.6

Growth fund 39 34.5

Others 2 1.8

Total 113 100.0

24
The table above reveals that 25.7% of respondents are preferred to invest the money in an
equity fund, followed by 20.4% have preferred the balanced fund, and 7.1% are preferred to
invest in an index fund. Besides, an identical 10.6% of respondents have preferred the debt
fund. 34.5% have preferred to invest in a growth fund, and 1.8% are others. Therefore, it is
concluded that the highest number of respondents have preferred to invest in a growth fund.

Figure 17: Type of schemes

Table 18: Features of mutual fund

Particulars No. of respondents Percentage

Diversification 12 10.6
Regular income 19 16.8
Better Return & Safety 53 46.9
Tax Benefit 28 24.8
Others 1 .9
Total 113 100.0

According to the table, 10.6 percent of respondents are attracted to mutual funds primarily for
diversification, 16.8 percent for regular income, 46.9 percent for better return and safety, 24.8
percent for tax benefits, and 0.9 percent for other reasons. As a result, it is stated that the
majority of the respondents who participated in the study are mostly attracted to mutual funds
due to higher returns and safety.

Figure 18: Features of mutual fund

25
Table 19: Perception towards mutual fund based on return

Particulars No. of respondents Percentage

High satisfactory 22 19.5
Satisfactory 40 35.4
Average 51 45.1
Total 113 100.0

According to the table, 19.5 percent of respondents are highly satisfied with the perception of
mutual funds based on return, 35.4 percent are satisfied with the perception of mutual funds
based on return, and the remaining 45.1 percent are averagely satisfied with mutual funds based
on return. As a result, it is found that the majority of respondents are averagely satisfied with
the overall perception of mutual funds based on returns.

Figure 19: Perception towards mutual fund based on return

Table 20: Risk feel that investing in mutual funds

Particulars No. of respondents Percentage

No risk 4 3.5
Low risk 48 42.5
High risk 60 53.1
Very high risk 1 .9
Total 113 100.0

26
According to the table above, 3.5 percent of respondents believe that investing in mutual funds
is risk-free, while 42.5 percent believe it is moderate risk, 53.1 percent believe it is a high risk,
and 0.9 percent believe it is extremely high risk. As a result, it is concluded that the majority
of those who participated in the study felt that investing in mutual funds is high risk.

Figure 20: Risk feel that investing in mutual funds

Table 21: Returns have expected while investing in mutual funds

Particulars No. of respondents Percentage

High 45 39.8
Low 22 19.5
Moderate 45 39.8
Very high 1 .9
Total 113 100.0

The table indicates that 39.8 percent of respondents expect a high return when investing in
mutual funds, 19.5 percent expect a low return, 39.8 percent expect a moderate return, and 0.9
percent expect a very high return. As a result, it is concluded that the majority of those who
participated in the study expect high and moderate returns while investing in mutual funds.

27
 Figure 21: Returns have expected while investing in mutual funds

Table 22: Issues in investing on mutual funds

Particulars No. of respondents Percentage

Lack of information in advertisements 11 9.7
Lack of initiatives by the industry 41 36.3
No clear idea about a public issue 58 51.3
Insufficient agent and brokers 3 2.7
Total 113 100.0

According to the table above, 9.7 percent of respondents are experiencing difficulties when
investing in mutual funds due to a lack of information in advertisements, followed by 36.3
percent experiencing difficulties due to a lack of industry initiatives, 51.3 percent experiencing
difficulties due to a lack of clarity about a public issue, and 2.7 percent experiencing difficulties
due to insufficient agent and brokers. As a result, it is concluded that most respondents are
having difficulties investing in mutual funds due to a lack of understanding of a public issue.

Figure 22: Issues in investing on mutual funds

28
Table 23: Level of satisfaction towards mutual funds

Particulars No. of respondents Percentage

Highly satisfied 15 13.3
Satisfied 33 29.2
Medium 56 49.6
Dissatisfied 8 7.1
Highly dissatisfied 1 .9
Total 113 100.0

The table above indicates that 13.3% of respondents are highly satisfied with mutual funds,
29.2% of respondents are satisfied, 49.6% are moderately satisfied, 7.1% are dissatisfied, and
0.9% are highly dissatisfied. Hence, it is evident that the majority of respondents are
moderately satisfied with investment in mutual funds

Figure 23: Level of satisfaction towards mutual funds

29
Table 24: Mean and standard deviation for the level of preferences

Particulars Mean Standard deviation

Bank Deposits 2.3097 1.10259
Post office savings schemes 3.2212 1.28685
Company Fixed Deposits 3.3186 .58654
Public Provident Funds 2.4513 .95423
Government Securities 2.5929 1.12311
Mutual Fund 2.5575 1.10144
Real estates 2.8761 1.41505
Gold/Silver 2.7434 1.55712

It has been observed from the table that the mean value of investment preference has a range
of 2.3 to 3.3. However, the highest mean value representing the company fixed deposit with
3.31, and the least mean value in bank deposit with 2.31. Although, the standard deviation may
vary from 0.5 to 1.6, which means that the standard deviation indicates the precision of the
statement. It is found that company fixed deposit has a high precision when compared to others.
As a result, it is assumed that most respondents prefer the investment level due to the company
fixed deposit.

Figure 24: Mean and standard deviation for the level of preferences

30
Table 25: Mean and standard deviation for investment awareness

Particulars Mean Standard deviation

Knowledgeable of investment avenues 2.3363 .63542
Track investment through TV/Newspapers 2.4248 .60953
Often get advice from financial experts 2.9381 .85860
Investment consist of opportunity and risk 2.4513 .99095
Experienced in Stocks and Mutual fund investments 2.8496 1.12774

The table above shows that the average value of investment awareness is 2.3 to 2.95. However,
the highest average value in the statement of “Often get advice from financial experts” with
2.93, and the least average value representing “Knowledgeable of investment avenues” with
2.33. Further, the standard deviation may vary from 0.6 to 1.2. It is evident that the statement
“Track investment through TV/Newspapers” has high precision compared to others. Thus, it is
concluded that most of the respondents have said that they Often get advice from financial
experts.

Figure 25: Mean and standard deviation for investment awareness

Table 26: Association between the age and satisfaction towards mutual fund

H0: Age is not associated with the satisfaction towards mutual fund

H1: Age is associated with the satisfaction towards mutual fund

31
 Satisfaction level Chi-square
Age Sig
Satisfied Medium Dissatisfied value
Below 28 14 28 1
years (32.6%) (65.1%) (2.3%)
28 to 38 13 22 4
17.521a .002
years (33.3%) (56.4%) (10.3%)
38 to 48 21 6 4
years (67.7%) (19.4%) (12.9%)

From the above table, it is evident that the respondents who belong to the ages less than 28
years had moderately satisfied (65.1%) on investment in a mutual fund, followed by the
respondents between the ages of 28 and 38 years have average satisfaction (56.4%) towards
investment in mutual fund and respondents who belong to the age categories of 38 to 48 years
were also satisfied (67.7%) with the mutual fund investment. However, the chi-square value is
17.521, and the significance value is 0.002, which is lesser than 5%. It is also concluded that
age is associated with satisfaction towards mutual funds and statistically significant.

Figure 26: Association between the age and satisfaction towards mutual fund

Table 27: Association between gender and satisfaction towards mutual fund

H0: Gender is not associated with the satisfaction towards mutual fund

H1: Gender is associated with the satisfaction towards mutual fund

32
 Satisfaction level Chi-square
Gender Sig
Satisfied Medium Dissatisfied value
26 24 3
Male
(49.1%) (45.3%) (5.7%)
2.050a .359
22 32 6
Female
(36.7%) (53.3%) (10.0%)

The table found that the male respondents are satisfied (49.1%) with investment in a mutual
fund, and the female respondents are moderately satisfied (53.3%) with investment in a mutual
fund. The value of the chi-square is 2.050, and then the p-value is 0.359. It is also clear that
there is no significant relationship between gender and satisfaction.

Figure 27: Association between gender and satisfaction towards mutual fund

Table 28: Association between education and satisfaction towards mutual fund

H0: Education is not associated with the satisfaction towards mutual fund

H1: Education is associated with the satisfaction towards mutual fund

33
 Education Satisfaction level Chi-square
Sig
level Satisfied Medium Dissatisfied value
2 14 1
Diploma
(11.8%) (82.4%) (5.9%)
24 18 5
Graduate
(51.1%) (38.3%) (10.6%)
12.658a .009
14 19 3
Post graduate
(38.9%) (52.8%) (8.3%)
Professional 8 5 0
degree (61.5%) (38.5%) (0.0%)

The table above indicates that respondents who educated up to diploma are moderately satisfied
(82.4%) towards mutual fund, followed by graduates respondents are satisfied (51.1%) towards
mutual fund, postgraduates respondents are moderately satisfied (52.8%) towards mutual fund,
and professional degree respondents are satisfied (61.5%) towards mutual fund. The value of
chi-square is 12.658, and the value of p is less than 5 per cent. It is therefore concluded that
education is associated with the satisfaction towards mutual fund.

Figure 28: Association between education and satisfaction towards mutual fund

Table 29: Association between occupation and satisfaction towards mutual fund

H0: Occupation is not associated with the satisfaction towards mutual fund

H1: Occupation is associated with the satisfaction towards mutual fund

34
 Satisfaction level Chi-square
Occupation Sig
Satisfied Medium Dissatisfied value
Self- 18 10 1
employed (62.1%) (34.5%) (3.4%)
8 4 1
Banker
(61.5%) (30.8%) (7.7%)
5 8 2
Teacher 36.676a .000
(33.3%) (53.3%) (13.3%)
Government 0 1 3
employee (0.0%) (25.0%) (75.0%)
17 33 2
Others
(32.7%) (63.5%) (3.8%)

The table above shows that the self-employed respondents are satisfied (62.1%) with mutual
fund investment, followed by banker respondents are satisfied (61.5%) with mutual fund
investment, respondents who are working as a teacher are moderately satisfied (53.3%) with
mutual fund investment, a government employee is dissatisfied (75%) with mutual fund
investment and others are moderately satisfied (63.5%) with mutual fund investment. However,
the chi-square value is 36.676, and the p-value is 0.000 (p<5%). Thus, it is concluded that the
occupation has a significant association with satisfaction towards investment in a mutual fund.

Figure 29: Association between occupation and satisfaction towards mutual fund

35
Table 30: Association between annual income and satisfaction towards mutual fund

H0: Annual income is not associated with the satisfaction towards mutual fund

H1: Annual income is associated with the satisfaction towards mutual fund

Annual Satisfaction level Chi-square

Sig
income Satisfied Medium Dissatisfied value
Below 2 13 21 1
lakh (37.1%) (60.0%) (2.9%)
13 19 3
2 to 6 lakh 5.371a .251
(37.1%) (54.3%) (8.6%)
Above 6 22 16 5
lakh (51.2%) (37.2%) (11.6%)

The table above indicates that respondents earning below 2 lakh are moderately satisfied with
investment in mutual funds (60.0%), followed by respondents between 2 and 6 lakh who are
moderately satisfied (54.3%). Respondents earning above 6 lakh are satisfied (51.2%) towards
investment in a mutual fund. The chi-square value is 5.371 and the p-value is 0.251 (p>5%)
respectively. Therefore, it is concluded that the annual income has no significant association
with satisfaction.

Figure 30: Association between annual income and satisfaction towards mutual fund

36
 CHAPTER-V
RESULTS
• The study reveals that most respondents who participated in the study belong to the age
in between 20 to 28 years
• The study reveals that more than 50% of respondents are female.
• According to responses it’s very clear and evident that most respondents who
participated in the survey have completed the studies up to graduates degrees.

• It can be concluded that most of the respondents who participated in the survey belongs
to others category in occupation.

• The study reveals that most of respondents have annual income more than 6 lakhs.
• The study reveals that most of the respondents who participated have less than two
years of investment experience in mutual fund.
• The study reveals that most of respondents are familiar with them and also interested
in investing in them.
• It can be concluded that most of the respondents who participated in the study are come
to know about the mutual fund through the help of internet.
• The study reveals that most of the respondents who participated in the survey, has
purchased the mutual fund through a broker/ a third party and Bajaj capital is one among
them all.
• The study reveals that the most of respondents who participated in the survey have
invested the amount less than 10000 in mutual fund.
• It can be concluded from the study that most respondents who participated in the survey
does not have any specific reason for not investing in the mutual fund.
• The study reveals that most of respondents invests in mutual fund to grow their income
over the period of time because it’s their primary investment goal.
• The study reveals that the majority of respondents believe that returns of a mutual fund
affects the amount which is to be invested in it.
• The study reveals that most of respondents wants to invest in growth fund category in
mutual fund.
• The study reveals that most of respondents are interested in investing mutual funds
because of the high returns and safety that they offer.

37
• In the study, it is found that the majority of respondents are averagely satisfied with the
overall perception of mutual funds based upon their returns.
• The study reveals that the majority of respondents those who participated in the survey
felt that investing in mutual funds is highly risky.
• Through the study we found that the majority of those who participated in the survey
expect high and moderate returns while investing in mutual funds.
• The study reveals that the majority of respondents are moderately satisfied with
investment in mutual funds.
• Through the study, we are able to found out that most of demographic parameters are
highly connected with the level of satisfaction with mutual fund investing, except for
the two factors like gender and annual income, which are not associated.

38
 Chapter – VI

CONCLUSION

Bajaj Capital should provide full support to investors in terms of advisory services, investor
participation in portfolio design, full disclosure of relevant information to investors, and
ensuring that mutual fund companies provide adequate consultation to investors for them to
understand the terms and conditions of various mutual fund schemes, such as the type of fund
design. Investors should be made well-informed about mutual funds through relevant, investor-
friendly language and styles. Bajaj Capital should emerge to enable investors to assess the risks
involved with their investments. The mutual fund business in India has grown tremendously,
garnering substantial investment from domestic investors and global investors. Increasing
middle family members with limited risk-bearing ability offer superior returns to other long-
term investments. The strong savings and rapidly liberalizing economies are likely to propel
the mutual fund industry to new heights.
The study aims to know customer perceptions of mutual funds. The study found that most of
the respondents who took part in the study were under the age of 28 and had completed their
studies up to the level of graduation. Customers of Bajaj Capital have fewer than two years of
mutual fund investment experience and bought them through a broker. Bajaj Capital Customers
may be unaware that the market had difficulties during the investment process. Customers who
invested the amount in mutual funds had growing income as their primary investment aim and
were moderately satisfied with mutual funds' overall perception based on returns. Respondents
who invest in mutual funds believe they are taking a high risk while anticipating a high return.
The empirical findings demonstrate that demographic parameters are highly connected with
satisfaction with mutual fund investing, except for gender and annual income, which are not
associated. Today, investors have a plethora of investment choices available to them in the
financial markets. According to investors, the primary reason for mutual funds' rapid popularity
is the certainty of redemption at net asset values. Investors have recognized the advantages of
mutual funds.

39
 CHAPTER-VII
RECOMMENDATIONS
• Customers’ perceptions of investing are contingent upon their investment objectives
and their level of satisfaction with the performance of mutual fund products. As a result,
it is suggested that they prefer the most suitable schemes for them, thereby shifting risk
to the mutual fund managers.
• Throughout the study period, the majority of investors placed their money in growth-
oriented funds. This indicates that mutual funds must make a greater effort to educate
investors about the earning potential gain out of their schemes.
• Education is also critical when it comes to mutual fund investing. Highly qualified
individuals use the internet to gather information. Their information-gathering habit is
distinct from that of other respondents. Bajaj Capital’s websites should be updated
regularly.
• Bajaj Capital should provide a diverse range of products with varying risk-reward
profiles to cater to the investment requirements of various segments.
• Bajaj Capital does not provide appropriate information about its schemes. As a result,
it is proposed that Bajaj Capital disseminate information to investors via newspapers,
prospects, and magazines, among others.
• Bajaj Capital’s investment portfolio should be effectively managed to deliver superior
service to its unitholders.
• The company should increase their promotional activity or they should make change in
their existing promotional/marketing activity and that will increase their brand
awareness in the market.
• The company can organize various types of webinars in order to increase the awareness
about mutual fund among the customers.
• It is suggested that investors should evaluate more than one or two variables when
selecting mutual funds, including higher returns, degree of transparency, excellent
service, wealth management, and mutual fund reputation.

40
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• Walia, N., & Kiran, R. (2009). An analysis of investor’s risk perception towards mutual
funds services. International Journal of Business and Management, 4(5), 106-120.
• Sharma, P., & Agrawal, P. (2015). Investors’ perception and attitude towards Mutual
funds as an Investment option. Journal of Business Management & Social Sciences
Research (JBM&SSR), 4(2), 115-119.
• Kumar, V., & Bansal, P. (2014). A Study on Investors’ Behaviour towards Mutual
Funds in Rohtak, Haryana. International Journal of Engineering and Management
Research (IJEMR), 4(1), 224-228.
• Mane, P. (2016). A Study of Investors Perception towards Mutual funds in the city of
Aurangabad. The SIJ Transactions on Industrial, Financial & Business Management
(IFBM), 4(2), 30-38.
• Rathnamani, V. (2013). Investor’s Preferences towards Mutual Fund Industry in
Trichy. OSR Journal of Business and Management (IOSR JBM), 6 (6), 48-55
• Rajasekar, D. D. (2013). A Study on Investor’s Preference towards Mutual funds
concerning Reliance Private Limited. Chennai-An Empirical Analysis. International
Research Journal of Business and Management (IRJBM), III, 38-44.

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 APPENDIX
QUESTIONNAIRE
1. Age
a. Below 28 years
b. 28 to 38 years
c. 38 to 48 years
d. Above 48 years
2. Gender
a. Male
b. Female
3. Education level
a. Diploma
b. Graduate
c. Postgraduate
d. Professional degree
4. Occupation
a. Self-employed
b. Banker
c. Teacher
d. Government employee
e. Others
5. Annual income
a. Below two lakh
b. 2 to 6 lakh
c. Above 6 lakh
6. Marital status
a. Married
b. Unmarried
7. Investment experience
a. Less than two years
b. 2 to 4 years
c. Above four years
8. Are you aware of mutual fund
a. Yes
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 b. No
9. How do you come to know about the mutual fund scheme
a. Newspaper
b. Internet
c. TV
d. Friends
e. Agent
10. How do you purchase the MF
a. Online
b. Through broker
c. Post office
d. Bank branches
11. What do you prefer mostly to investment
a. Bank deposit
b. Bonds
c. Equity shares
d. Mutual fund
e. Others
12. How much amount do you invest in MF
a. Less than 10000
b. 10000 to 20000
c. Above 20000
13. What is the reason for not investing in Mf
a. Not aware of MF
b. Difficult to understand
c. Not any specific reason
14. What are the issues faced by Mutual Fund Investors
a. Low income
b. Unable to aware of market
c. Fees and commission
d. Poor service of broker
e. Non-availability of branch
15. What is your investment objective behind investment in Mutual Fund
a. Growth in income
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 b. Tax saving
c. Earning high return
d. Future expense
16. What are the factors influencing investment in MF
a. High return
b. Risk
c. Liquidity
d. Tax exemption
e. Prompt services
f. Schemes Performance
17. Which type of schemes do you prefer to invest
a. Equity fund
b. Balanced fund
c. Index fund
d. Debt fund
e. Growth fund
f. Other
18. Which features of Mutual Fund allure you most
a. Diversification
b. Regular income
c. Better Return & Safety
d. Tax Benefit
e. Others
19. What is your perception towards Mutual Fund based on return
a. High Satisfactory
b. Satisfactory
c. Average
d. Dissatisfactory
e. High Dissatisfactory
20. What extent of risk do you feel that investing in mutual funds?
a. No risk
b. Low risk
c. High risk
d. Very high risk

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 21. How much returns you have expected while investing in mutual funds
a. High
b. Low
c. Moderate
d. Very high
22. Do you face any problems while investing in mutual funds
a. Lack of information in advertisements
b. Lack of initiatives by the industry
c. No clear idea about a public issue
d. Insufficient agent and brokers
23. What is your level of satisfaction towards mutual funds?
a. Highly satisfied
b. Satisfied
c. Medium
d. Dissatisfied
e. Highly dissatisfied
24. State the level of preferences on the following investment (1- Very high to 5- Very low)
Particulars 1 2 3 4 5

Bank Deposits

Post office savings schemes

Company Fixed Deposits

Public Provident Funds

Government Securities

Mutual Fund

Real estates

Gold/Silver

25. Investment awareness (1- strongly agree to 5- strongly disagree)

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Particulars 1 2 3 4 5

Knowledgeable of investment avenues

Track investment through TV/Newspapers

Often get advice from financial experts

Investment consist of opportunity and risk

Experienced in Stocks and Mutual fund investments

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