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    Consumer Behavior: Meaning

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    Shweta Thakral
    1. Many investors in Chandigarh lack awareness about mutual funds and their operations. 2. Those that do invest prefer higher returns and lower risk, with most investing in fixed deposits and savings accounts instead of mutual funds. 3. Awareness about mutual funds is growing, and as incomes rise more investors are participating, though some remain concerned about security of their money in mutual funds.

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    Consumer Behavior: Meaning

    Uploaded by

    Shweta Thakral
    33 views38 pages
    1. Many investors in Chandigarh lack awareness about mutual funds and their operations. 2. Those that do invest prefer higher returns and lower risk, with most investing in fixed deposits and savings accounts instead of mutual funds. 3. Awareness about mutual funds is growing, and as incomes rise more investors are participating, though some remain concerned about security of their money in mutual funds.

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    1. Many investors in Chandigarh lack awareness about mutual funds and their operations. 2. Those that do invest prefer higher returns and lower risk, with most investing in fixed deposits and savings accounts instead of mutual funds. 3. Awareness about mutual funds is growing, and as incomes rise more investors are participating, though some remain concerned about security of their money in mutual funds.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    33 views38 pages

    Consumer Behavior: Meaning

    Uploaded by

    Shweta Thakral
    1. Many investors in Chandigarh lack awareness about mutual funds and their operations. 2. Those that do invest prefer higher returns and lower risk, with most investing in fixed deposits and savings accounts instead of mutual funds. 3. Awareness about mutual funds is growing, and as incomes rise more investors are participating, though some remain concerned about security of their money in mutual funds.

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    Download as ppt, pdf, or txt
    of 38

    Consumer behavior

    Meaning

    Complex purchases
    Reasons for complexity

    I need more information

    Risk manipulation and its role

    Is mutual fund a complex buying decision

    Factors affecting

    Threat after 2008 crisis


    Mutual funds are a part of equity market

    A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is invested by the fund manager in different types of securities depending upon the objective of the scheme.

    How do mutual funds work?

    History of mutual funds in india


    FIRST PHASE: 1964 87
    Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. ,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. SECOND PHASE: 1987 1993 (Entry of Public Sector Funds) 1987 marked the entry of non UTI, public sector mutual funds set up by public sector banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC).

    Continued..
    THIRD PHASE: 1993 2003 (Entry of Private Sector Funds) 1993 was the year in which the first Mutual Fund came into being, under which all mutual funds, except UTI, were to be registered and governed. FOURTH PHASE: since February 2003 In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of India. The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC.

    STRUCTURE OF MUTUAL FUNDS IN INDIA

    ABOUT THE ORGANIZATION:


    SBI Mutual Fund is Indias largest bank sponsored mutual fund. SBI Mutual Fund is a joint venture between the State Bank of India and Socit Gnrale Asset Management , one of the worlds leading fund management companies that manages over US$ 500 Billion worldwide.

    OPERATION FLOW CHART

    ORGANIZATION

    Advantages of mutual funds

    (a) Age distribution of the Investors of Chandigarh


    No. of Investors 35 30 25 20 No. of Investors 15 10 5 0 <= 30 31-35 36-40 41-45 46-50 >50

    Educational Qualification of investors


    Number of Investors
    90 80 70 60 50 40 30 20 10 0

    88
    Number of Investors

    25
    Graduate/ Post Graduate

    7
    Under Graduate Others

    Occupation of the investors


    No. of Investors 50 45 40 35 30 25 20 15 10 5 0 Govt. Service Pvt. Service Business Agriculture Others

    No. of Investors

    (d). Monthly Family Income of the Investors


    45
    40 35 30 25 20 15 10 5 0
    <=10,000 10,001-15,000 15,001-20,000 20,001-30,000 >30,000
    Series1

    (2) Investors invested in different kind of investments.


    No. of Respondents 250 200 150 100 50 0
    de po si ts In su ra nc M ut e ua Po lF st un of d fic Sh e ar (N es SC /D ) eb en tu re G s ol d/ Si lve Re r al Es ta te A/ C

    No. of Respondents

    Sa vin

    Fi

    xe d

    (3) Preference of factors while investing


    No. of Respondents 70 60 50 40 No. of Respondents 30 20 10 0 (a) Liquidity (b) Low Risk (c) High Return (d) Trust

    (4) Awareness about Mutual Fund and its Operations


    No

    No. of Respondents

    Yes

    50

    100

    150

    (5) Source of information for customers about Mutual Fund


    No. of Respondents 70 60 50 40 No. of Respondents 30 20 10 0 Advertisement Peer Group Bank Financial Advisors

    (6) Investors invested in Mutual Fund


    No. of Respondents

    120

    100
    80 60 40 20 0 YES NO
    No. of Respondents

    7. Reason for not invested in Mutual Fund


    No. of Respondents 70 60 50 40 30 20 10 0 Not Aware Higher Risk Not any Specific Reason No. of Respondents

    8. Investors invested in different Assets Management Co. (AMC)


    No. of Respondents 40 35 30 25 20 15 10 5 0 Associated with SBI Better Return Agents Advice No. of Respondents

    9. Reason for invested in SBIMF


    No. of Respondents 40 35 30 25 20 15 10 5 0 Associated with SBI Better Return Agents Advice No. of Respondents

    10. Reason for not invested in SBIMF


    No. of Respondents

    Agents Advice

    Less Return

    No. of Respondents

    Not Aware

    10

    15

    20

    25

    30

    11. Preference of Investors for future investment in Mutual Fund


    No. of Investors 90 80 70 60 50 40 30 20 10 0 SBIMF UTI HDFC Reliance ICICI Prudential No. of Investors

    12. Channel Preferred by the Investors for Mutual Fund Investment


    No. of Respondents

    Financial Advisor Bank AMC

    13. Mode of Investment Preferred by the Investors

    Findings
    In family Income group, between Rs. 20,001- 30,000 were more in numbers, the second most were in the Income group of more than Rs.30,000 and the least were in the group of below Rs. 10,000. About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed Deposits, Only 60% Respondents invested in Mutual fund.

    Mostly Respondents preferred High Return while investment, the second most preferred Low Risk then liquidity and the least preferred Trust. Only 67% Respondents were aware about Mutual fund and its operations and 33% were not.
    Among 200 Respondents only 60% had invested in Mutual Fund and 40% did not have invested in Mutual fund. Out of 80 Respondents 81% were not aware of Mutual Fund, 13% told there is not any specific reason for not invested in Mutual Fund and 6% told there is likely to be higher risk in Mutual Fund.

    & Recommendations
    Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors.

    Mutual Fund Company needs to give the training of the Individual Financial Advisors about the Fund/Scheme and its objective, because they are the main source to influence the investors. Before making any investment Financial Advisors should first enquire about the risk tolerance of the investors/customers, their need and time (how long they want to invest). By considering these three things they can take the customers into consideration

    Conclusion
    1. They think their money will not be secure in Mutual Fund. 2. They need the knowledge of Mutual Fund and its related terms. 3. Many of people do not have invested in mutual fund due to lack of awareness although they have money to invest. 4. As the awareness and income is growing the number of mutual fund investors are also growing.

    There are many AMCs in Chandigarh but only some are performing well due to Brand awareness Some AMCs are not performing well although some of the schemes of them are giving good return because of not awareness about Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known Brand, they are performing well and their Assets Under Management is larger than others whose Distribution channels are also important for the investment in mutual fund. Financial Advisors are the most preferred channel for the investment in mutual fund. They can change investors mind from one investment option to others.

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