A

Project Report
on
Study of awareness and Preferences of investors towards mutual fund investments
at
Motilal Oswal Financial Services Ltd.
By
Rutuja Shrikant Kachi
Under the guidance of
Prof. samrudhi malani
Submitted to
Savitribai Phule Pune University
Partial fulfillment of the requirement for the award of the degree of
M.B.A.
Batch 2023-2024
Through
 Declaration

I, the undersigned hereby declare that the Project Report entitled “Study of
awareness and perception of investors towards mutual fund investments” written and
submitted by me to the Savitribai Phule Pune University, Pune in partial fulfillment of
the requirements for the award of degree of Master of Business Administration under the
guidance of Prof. Samruddhi Malani is my original work and the conclusions drawn
herein are based on the material collected by myself.

• Place : Pune Name and Signature of

• Date: Research Student
Acknowledgment
 Chapter – 1
Introduction to Research
1.1 Executive summary.
1.2 Objective of the study
1.3 Scope of study
1.4 Importance of study
1.5 Need/ purpose of study
[Link] to Research -
1.1 Executive summary.
1.2 Objective of the study

 To analyses the investors preferences towards the mutual fund

 To study and understand the different investment pattern of investors.
 To study and understand steps of mutual fund investment.
 To study and understand how to diversify the risk in mutual fund.
 To study and understand the investors goals & mindset while
investing in mutual fund.
1.3 Scope of study

 Awareness and Understanding:

Investigate the level of awareness and understanding among investors
regarding mutual fund concepts, including how they work, their
benefits, and associated risks.
 Risk Perception:
Assess how investors perceive the risk associated with mutual fund
investments. This may involve exploring their risk tolerance and how
it aligns with their investment choices.
 Return Expectations:
Examine investors' expectations regarding the returns they anticipate
from mutual fund investments and whether these expectations align
with historical performance data.
 Decision-Making Factors:
Analyze the factors that influence investors' decisions to invest in
mutual funds. This may include considerations such as past
performance, fees, tax implications, and the role of financial advisors.
 Investment Goals:
Explore the investment goals and objectives of the participants, such
as saving for retirement, education, or wealth accumulation.
 Time Frame:
Determine the time frame for the study, including historical data and
current perceptions. This will help provide a temporal context for the
research.
 Demographic Focus:
Define the target population, including age, income levels, education,
and investment experience. The scope may be narrowed to specific
demographic groups if needed.
 1.4 Importance of study

The study of awareness and perception of investors towards mutual

fund investment is important for several reasons:

 Investor Education:
Understanding how investors perceive mutual funds is crucial for
improving investor education. By identifying gaps in knowledge and
addressing misconceptions, the study can help educate investors
about the benefits, risks, and opportunities associated with mutual
funds.
 Informed Investment Decisions:
Investor perception can significantly impact their investment
decisions. By gauging their perception of risk and return, this study
can guide investors in making more informed and rational investment
choices.
 Market Development: A better understanding of investor perception
can aid in the development and growth of the mutual fund market.
Mutual fund companies and financial institutions can use this
knowledge to create more tailored and effective investment products.
 Risk Management:
Assessing how investors perceive risk is essential for risk
management in the financial industry. When investors have a more
accurate perception of risk, it can contribute to more stable and
sustainable financial markets.
 Product Design:
Mutual fund companies can use insights from the study to design
products that better align with investors' needs and expectations,
ultimately leading to increased investor participation.
 Marketing Strategies:
Knowing how investors prefer to receive information about mutual
funds and make investment decisions can inform marketing
strategies. Companies can target the right communication channels
and methods to reach potential investors effectively.
 Regulatory Guidance:
Regulators and policymakers can benefit from this study to create
and refine regulations and guidelines that protect investors and ensure
the fairness and transparency of the mutual fund industry.
  Economic Growth:
A healthy and informed investment environment is critical for
economic growth. When investors are confident and make sound
investment decisions, it can have a positive impact on the broader
economy.

In summary, the study of awareness and perception of investors

towards mutual fund investment is essential for improving investor
education, market development, risk management, and the overall
health and efficiency of the financial industry. It benefits investors,
mutual fund companies, regulators, and the economy as a whole.

1.5 Need/ purpose of study

 Investor Protection:
Understanding how investors perceive mutual funds is essential for
investor protection. By identifying areas where investors lack
awareness or hold misconceptions, regulatory bodies can develop
policies and regulations to safeguard the interests of investors.
 Risk Mitigation:
An awareness study can help identify gaps in investors' perception of
risk. This knowledge can be used to design risk mitigation strategies,
educate investors on the actual risks involved, and reduce the
likelihood of uninformed or impulsive investment decisions.
 Market Stability:
Misinformed or irrational investor behavior can lead to market
volatility and instability. A study of this nature can contribute to
market stability by shedding light on the factors influencing investor
decisions and helping to mitigate undue market fluctuations.
 Investor Confidence:
When investors have a better understanding of mutual fund
investments, they are more likely to invest with confidence. This, in
turn, can have a positive impact on the overall health of the financial
markets and the economy.
 Financial Literacy:
 Financial literacy is a critical component of informed investing. The
study can serve as a tool to assess the financial literacy of investors
and identify areas where educational initiatives are needed.
 Transparency and Fairness:
The study can uncover any misunderstandings or misconceptions
related to mutual fund fees, terms, or performance expectations. This
information can lead to more transparent and fair practices within the
industry.
 Policy Formulation:
Regulators can use the study's findings to develop policies and
guidelines that enhance transparency, protect investors, and foster a
fair and efficient financial market.
 Societal Impact:
Informed investors make more rational financial decisions, which
can have a positive impact on their personal financial well-being and,
by extension, on society
 Chapter – 2
Theoretical Framework
2.1 Concept Mutual Fund?
2.2 History of Mutual fund.
2.3 Ways/modes of Mutual Fund
Investment
2.4 Documents required to invest
2.5 Factors should consider before
investing in mutual funds?

2.6 Structure of Mutual Funds

2.7 Advantages of Mutual Funds
 Concept of Mutual Fund.

2.1 What is a Mutual Fund?

A mutual fund is a professionally managed investment vehicle that
pools money from various investors and invests it in a diversified
portfolio of stocks, bonds, money market instruments, or other
securities. The returns generated from these investments are
distributed among the investors in proportion to their
[Link] funds are managed by financial professionals
known as fund managers, who have the expertise in analyzing and
managing investments. The funds collected from investors in mutual
funds are invested by the fund managers in different financial assets
such as stocks, bonds, and other assets, as defined by the fund’s
investment objective. Where and when to invest are some of the
things taken care of by the fund managers. fund’s managers charges
a fee to the investor known as the expense ratio. It is not a fixed fee
and varies from one mutual fund to another. SEBI has defined the
maximum limit of the expense ratio that can be charged on the basis
of the total assets of the fund.
Mutual funds are regulated by governmental bodies and are required
to publish information including performance, comparisons of
performance to benchmarks, fees charged, and securities held.

• According to kamm, j.o.

“ an organization formed for the investment of funds obtained
from individuals and institutional investors who in exchange
for the fund receive shares which can be redeemed at any time
at their underlying asset values.”
 2.2 History of Mutual fund.

The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank. The history of
mutual funds in India can be broadly divided into four distinct phases.

FIRST PHASE – 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set
up by the Reserve Bank of India and functioned under the Regulatory and
administrative control of 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 hadRs.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 sector
banks and Life Insurance Corporation of India (LIC) and General Insurance
Corporation of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund
established in June 1987 followed by Can bank Mutual Fund (Dec 87), Punjab National
Bank Mutual Fund (Aug89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun
90), Bank of Baroda Mutual Fund (Oct 92). LIC established its mutual fund in June
1989 while GIC had set up its mutual fund inDecember1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47,
004crores.

THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS)

With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 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 erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual
funds setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets
undermanagement was way ahead of other mutual funds.
FOURTH PHASE – SINCE FEBRUARY2003:

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 with assets under management of Rs.29,835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among
different

private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September, 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421schemes.
 2.3 Ways/modes of Mutual Fund Investment
An investor can invest in mutual funds in the following ways:

1. Lumpsum: When you want to invest a significant amount in a mutual

fund in one go. For example, if you had a sum of Rs 1 lakh to invest then
you could go in for lumpsum investment and invest the entire amount of
Rs 1.0 lakh at one go in a mutual fund of your choice. The units allotted to
you will depend on the NAV of that fund on that particular day. If the
NAV is Rs 1000, you will end up getting 100 units of the mutual fund.

2. SIP: You also have the option to invest small amounts periodically. In the
above example, say, you don’t have Rs 1 Lakh but can commit to an
investment of Rs 10,000 per month for 10 months, and you can align your
investments with your cash flows. This way of investing is known as
a Systematic Investment Plan (SIP). SIP encourages regular investment of
fixed amounts monthly, quarterly and so on, depending on your need and
the options available with the mutual fund.
2.4 What are the documents required to invest in mutual funds?
Need Following Documents For BSE Star Online Platform Of Mutual
Fund Registration.

1) PAN Card soft copy

2) Aadhar card soft copy front and back side clear image.

3) Cancel Cheque image or Passbook first page image.

4) Mobile No and Email id

5) Nominees name

6 ) Profession

7 ) Income Range..0 to 5 lakh 5 to 10 lakh or Retired or..

8) mothers name

9) Signature Photo

10) Place of Birth

2.5What factors should consider before investing in mutual funds?

 Goals
What do you want from your mutual fund investment? Are you
saving for your retirement, your children's college or investing money
for future generations? The answers to these questions can help you
narrow down which funds would work best.
 Time horizon
Mutual funds are typically better suited for long term investors. If you
think you'll need your money in the near future, say within three to
five years, then a mutual fund may not be the best option. This is
because the return in that amount of time – once removing the cost of
fees – may not be enough to make the investment worth it.
  Risk tolerance
Determine how comfortable you are with risk and invest accordingly.
Understanding your risk tolerance can help you select funds with
strategies and asset allocations that fit this profile.
 Historical background :-
The success of any fund depends upon the competence of the
management, its integrity, periodicity, experience. A good historical
record could be a better than new fund. mutual funds in India.

The different types of mutual funds available can be classified

broadly based on structure, asset class, and investment goals. Going a
step further, funds can also be categorized based on risk.

2.4 Structure of Mutual Funds

Based on the ease of investment, mutual funds can be:

• Open-ended funds:
These funds do not limit when or how many units can be purchased.
Investors can enter or exit throughout the year at the current net asset value.
Open-ended funds are ideal for investors seeking liquidity.
• Close-ended funds:
Close-ended funds have a pre-decided unit capital amount and also allow
purchase only during a specified period. Here, redemption is bound by the
maturity date. However, to facilitate liquidity, schemes trade on stock
exchanges.
• Interval funds:
A cross between open-ended and close-ended funds, interval mutual funds
permit transactions at specific periods. Investors can choose to purchase or
redeem their units when the trading window opens up.

2. Mutual Fund Asset Class

Depending on the assets they invest in, mutual funds are categorized under:

• Equity funds:
Equity funds invest money in company shares, and their returns depend on
how the stock market performs. Though these funds can give high returns,
they are also considered risky. They can be categorized further based on
their features, like Large-Cap Funds, Mid-Cap Funds, Small-Cap Funds,
Focused Funds, or ELSS, among others. Invest in equity funds if you have a
long-term horizon and a high-risk appetite.

• Debt funds:

Debt funds invest money into fixed-income securities such as corporate

bonds, government securities, and treasury bills. Debt funds can offer
stability and a regular income with relatively minimum risk. These schemes
can be split further into categories based on duration, like low-duration
funds, liquid funds, overnight funds, credit risk funds, gilt funds, among
others.

• Hybrid funds:

Hybrid funds invest in both debt and equity instruments so as to balance out
debt and equity. The ratio of investment can be fixed or varied, depending
on the fund house. The broad types of hybrid funds are balanced or
aggressive funds. There are multi asset allocation funds which invest in at
least 3 asset classes.

• Solution-oriented funds:

These mutual fund schemes are for specific goals like building funds for
children’s education or marriage, or for your own retirement. They come
with a lock-in period of at least five years.

• Other funds:

Index funds invest based on certain stock indices and fund of funds are
categorized under this head.

3. Mutual Funds based on Investment Goals

You can also choose a fund based on your financial objective:

• Growth funds:
Funds that invest primarily in high-performing stocks with the aim of capital
appreciation are considered growth funds. These funds can be an attractive
option for investors seeking high returns over a long period.

• Tax-saving Funds (ELSS):

Equity-linked saving schemes are mutual funds that invest mostly in

company securities. However, they qualify for tax deductions under Section
80C of the Income Tax Act. They have a minimum investment horizon of
three years.

• Liquidity-based funds:

Some funds can be categorized based on how liquid the investments are.
Ultra-short-term and liquid funds, are ideal for short-term goals, while
schemes like retirement funds have longer lock-in periods.

• Capital protection funds:

These funds invest partially in fixed income instruments and the rest into
equities. This could ensure capital protection, i.e., minimal loss, if any.
However, returns are taxable.

• Fixed-maturity funds (FMF):

These funds route money into debt market instruments, which have either
the same or a similar maturity period as the fund itself. For instance, a three-
year FMF will invest in securities with a maturity of three years or lower.

• Pension Funds:

Pension funds invest with the idea of providing regular returns after a long
period of investment. They are usually hybrid funds that give low but have
potential to provide steady returns in future.
4. Risk
Mutual fund are not free from risks. It is so because basically the mutual
funds also invest their funds in the stock market on shares which are volatile
in nature and are not risk free.
 Market Risk :-
There are certain risks associated with every kind of investment on
shares. They are called as market risk. These market risk can be
 reduced, but cannot be completely eliminated even by a good
investment management. Price of shares are subject to wide price
fluctuation depending upon market condition over which nobody has
a control. Every economy has to pass through a cycle and its impact
on business cycle.
 Scheme risk :-
There are certain risks inherent in the scheme itself. It all depends
upon the nature of the scheme. Some scheme is select for short term.
So it not give the growth as much expected.
 Investment risk :-
Whether the mutual fund makes money in shares or loses depends
upon the investment expertise of the Asset management company
(AMC). If the investment advice goes wrong, the fund has to suffer a
lot. The investment expertise of various funds are different and it is
reflected on the returns which they offer to investors.
 Political risk :-
Successive government bring with them new economic ideologies
and policies. It is often said that many economic decisions are
politically motivated. Changes in government bring in the risk of
uncertainty which every player in the financial service industry has to
face.

2.5 Advantages of mutual fund.

If mutual funds are emerging as the favourite investment vehicle, it is

because of the many advantages they have over other forms and the
avenues of investing, particularly for the investor who has limited
resources available in terms of capital and the ability to carry out
detailed research and market monitoring. The following are the major
advantages offered by mutual funds to all investors:

1. Portfolio Diversification:

Each investor in the fund is a part owner of all the fund’s assets, thus
enabling him to hold a diversified investment portfolio even with a small
amount of investment that would otherwise require big capital.
2. Professional Management:
Even if an investor has a big amount of capital available to him, he benefits
from the professional management skills brought in by the fund in the
management of the investor’s portfolio. The investment

management skills, along with the needed research into available

investment options, ensure a much better return than what an investor can
manage on his own.
Few investors have the skill and resources of their own to succeed in today’s
fast moving, global and sophisticated markets.
3. Reduction/Diversification of Risk:

When an investor invests directly, all the risk of potential loss is his own,
whether he places a deposit with a company or a bank, or he buys a share
or debenture on his own or in another from. While investing in the pool of
funds with investors, the potential losses are also shared with other
investors. The risk reduction is one of the most important benefits of a
collective investment vehicle like the mutual fund.
4. Often, investors hold shares or bonds they cannot directly, easily and
quickly sell. When they invest in the units of a fund, they can generally
cash their investments any time, by selling their units to the fund if
open-ended, or selling them in the market if the fund is close-end.
Liquidity of investment is clearly a big benefit.
5. Convenience and Flexibility:

Mutual fund management companies offer many investor services that a

direct market investor cannot get. Investors can easily transfer their holding
from one scheme to the other; get updated market information and so on.
6. Choice of Schemes:

Mutual Funds offer a family of schemes to suit your varying needs over a
lifetime.

7. Transparency:

You get regular information on the value of your investment in addition to

disclosure on the specific investments made by your scheme, the
proportion invested in each class of assets and the fund managers
investment strategy and outlook.
Company profile
3.1 Introduction to organization.
Motilal Oswal Financial Services Ltd.:
Motilal Oswal Financial services company offering a range of financial products and
services. The company entered into the investment banking in 2005, followed by private
equity fund in 2006.
In February 2006, Motilal Oswal Financial Services Ltd. acquired Peninsular Capital
Markets, a Cochin, Kerala based broking company for Rs. 35 crores. The company tied
up with State Bank of India in 2006, Punjab National Bank in 2007 and Axis Bank in
2013 to offer online trading to its customers.
In January 2010, Motilal Oswal Financial Services Ltd. set up Mutual fund business
named as Motilal Oswal Asset Management Company (MOAMC).
The company offers a wide range of financial products and services to individual and
institutional clients. Some of the key areas of focus for Motilal Oswal Financial Services
Ltd. include:

1. Equity and Commodity:

The company provides broking services for trading in equities and commodities in
various stock exchanges in India.

2. Investment Banking:
Motilal Oswal is involved in providing services related to investment banking,
including activities such as mergers and acquisitions, capital raising, and advisory
services.

3. Asset Management:
The company manages mutual funds and other investment products for retail and
institutional investors.

4. Private Equity:
Motilal Oswal Financial Services is engaged in private equity investments,
where it invests in private companies or projects.

5. Wealth Management:
The company offers wealth management services to high-net-worth individuals
(HNIs) and families, providing customized investment strategies and financial
planning.

6. Retail Broking:
This involves providing broking services to retail investors for trading in equities,
derivatives, currencies, and commodities.

7. Institutional Broking:
 Motilal Oswal caters to institutional clients such as mutual funds, insurance
companies, and foreign institutional investors (FIIs) by offering them brokerage
and research services.

8. Portfolio Management Services (PMS):

The company manages portfolios on behalf of clients, tailoring them to meet
specific investment objectives.

9. Online Trading:
Motilal Oswal provides online trading platforms for investors to execute trades
across various asset classes.

10. Distribution of Financial Products:

The company distributes various financial products such as mutual funds,
insurance policies, and fixed-income products.

11. Real Estate Investment Advisory:

This involves providing advisory services for real estate investments.

12. Home Finance:

Through its subsidiary Aspire Home Finance Corporation Ltd. (AHFCL), Motilal
Oswal is involved in providing housing finance solutions.

Motilal Oswal Financial Services has established a strong presence in the Indian
financial market and is known for its research-based approach to investment decisions. It
serves clients across various cities and towns in India.

Service offered:

 Equity and Commodity Broking

 Investment Banking
 Asset Management
 Private Equity
 Wealth Management
 Retail Broking
 Institutional Broking
 Portfolio Management Services (PMS)
 Online Trading
 Distribution of financial products like mutual funds, insurance, etc.

Subsidiaries and Associated Companies:

 Motilal Oswal Securities Ltd.

 Motilal Oswal Asset Management Company Ltd.
 Motilal Oswal Private Equity Investment Advisors Pvt. Ltd.
 Motilal Oswal Real Estate Investment Advisors II Pvt. Ltd.
  Aspire Home Finance Corporation Ltd. (AHFCL)
 Motilal Oswal Trustee Company Ltd.
 Motilal Oswal Wealth Management Ltd.
 MOAMC Employees Welfare Trust.
 Motilal Oswal Financial Services:

 Market Size: 15291.5 CR

 Total Customer: 360,350,220

 Average Return: 26.12%

 Active Clients: 8,96,851

Founders:

Motilal Oswal
Ramdeo Agrawal

Website:

[Link]

Company Size:

More than 10000+ employees

Headquarters:

Prabhadevi, Mumbai

Company type:

Public

Founded:

1987

Specialities:

Retail brokering and distribution, institutional equities, mutual fund, wealth

management, investment banking, private equity, home finance.
 Research methodology

4.1Introduction to Research
4.2Research methodology.
4.3Research design
4.4collection of data.
4.5sampling method
 Research methodology

4.1 Introduction to Research

To study and understand investors preferences towards mutual fund and
their investment and awareness of mutual fund. This research focuses on
various factors that influence investor preferences, past performance, time
horizon, risk diversification and study involve the comparison between the
other investment option with mutual fund such as stocks, real estate, Bank
deposit, post office etc.
This research uses a variety of research methods, such as survey,
interviews, or focus groups, to collect this data as a sample of investors.
This data analyzed with using statistical tools and technique to understand
the preferences of investors.
This research aims to provide the complete understanding of investors
awareness and preferences towards mutual funds and identify the area of
investment for investors to investment. This study can helpful to financial
advisor, Mutual Fund Company or investors for choosing the mutual fund as
an good investment option.

4.2Research methodology.
The research methodology of a study on awareness and perception of
investors toward the mutual fund it is depending in the research question,
data availability, available resources. Research methodology involve the
systematic plan, research design, data collection, analysis or interpretation
of data. Some common method can be use this type of study.

3 Type of Research
4 Collection of Data
5 Sampling Method

Type of Research.
1. Quantitative Research: This type of research involves the collection
and analysis of numerical data. It often uses statistical methods to
draw conclusions and generalize findings. Surveys, experiments, and
structured observations are common methods in quantitative research.
This research help to understand the awareness and preferences of
investors in mutual fund.
2. Qualitative Research: Qualitative research is conducted to study and
analyses the human behavior. Qualitative research is carried out when
there is need to develop new idea and theories that can be tested and
analyses. The prime objective of qualitative research is to get an in-
depth knowledge about a particular behavior by collecting fresh and
new information by using various techniques. This research helps to
understand the behavior regarding and preferences toward mutual
fund.
3. Historical Research : This type of research examine past performance
of mutual fund and their returns and how it has been perceived by the
investors. It can be used to understand how investor perception have
changed over time and how historical performance has influenced
current perception.
4. Empirical Research: empirical research is data oriented. This kind of
research provides insights through observation or experiences. In this
research the primary data are collected, analyses, and tested to prove
some hypotheses. Empirical research can be conducted through both
the qualitative and quantitative approach.

4.3 Research design

1. Exploratory research:
Exploratory research design aims to get a better understanding of the
problem by explaining the concept and developing hypotheses
 regarding the research study. Various techniques are used in
exploratory research such as survey, focus group, case study, etc.
Exploratory research does not emphasized upon sampling but tries to
gather information from who are considered knowledgeable.

4.4 collection of data.

1. Primary Data.
The data collected by the researcher himself for finding the solution
of a particular problem or situation is known as primary data. This
type of data is characterized by its originality as it is freshly
collected.
 Various methods of conducting primary data such as survey,
observations, interviews, etc.
2. Secondary Data.
When a researcher uses data which are previously collected by some
other researchers, institutions, or agencies for their own purpose are
called secondary data.
 Various methods of collecting secondary data such as
published source like report and journals.

4.5 sampling method

When conducting a study on the awareness and preferences of
investors towards mutual fund investments, selecting an appropriate
sampling method is crucial to ensure the results are representative of
the target population. Here are a few common sampling methods you
might consider:
1. probability sampling method:
i. Simple random sampling : simple random sampling
technique in that equal chance of each and every unit in the
population.
In that equal opportunity of being selected in the sample.
ii. Stratified sampling : stratified random sampling in that
sample selected from different homogeneous part of a
universe. (e.g., age, income, investment experience).
iii. Systematic sampling: selection of one unit at random the
other unit are selected systematically a specific interval if
 time. For example, if you have a list of investors, you could
select every 10th investor from the list.
iv. Multi stage or cluster sampling: under this method, the
random selection is made of primary , intermediate and
final unit given from a given population.

2. Non- probability sampling method.

i. Judgmental Sampling:
Relies on the researcher's judgment to select participants who
are considered most relevant to the study. This method is
subjective and depends on the researcher's knowledge and
expertise.
ii. Quota Sampling: In a quota sample, quotas are set up according
to some specified characteristic such as so many in each of
several age, income groups, investment experience.
iii. Convenience Sampling:
Select participants based on their availability and willingness to
participate. This method is quick and easy but may introduce
bias since participants self-select.
iv. Purposive Sampling: Choose participants based on specific
criteria relevant to the study. This method allows you to select
participants with particular characteristics or experiences
related to mutual fund investments.

4.6 Statistical tool

Bar
Pie

Remaining. Mission vision

Why should consider
Chapter 5 - Data Analysis & Interpretation
 Data Analysis & Interpretation

1) Age Group wise classification.

Age No. of Percentage

Group Respondent
20-30 15 30%
30-40 10 20%
40-50 15 30%
Above 10 20%
50
Total 50 100%

age group
50-60
20%
20-30
30%

40-50
30%
30-40
20%

20-30 30-40 40-50 50-60

Interpretation:
In above sample population there were 20-30 age group people’s responses
were 15 and 30-40 age group people were 10 respondents, 40-50 age group
people were 15 respondents, above 50 age group people were 10
respondents
In this above Pie chart, we see that 20-30 and 40-50 age group people were
more careful about their investments.

2) Occupation wise classification

Occupation No. of Respondent Percentage

Business 10 10%
Employees 8 8%
Govt. Employees 17 17%
Students 15 15%
Total 50 50%

Occupation Business

Business Employees

Students 20% Govt. Employees

30% Students

Employees
16%

Govt. Employees
34%
Interpretation:
In Occupation wise classification is from Business sector 10 responses for
the sample collected Employees 8 respondent were careful about their
investment, Govt. Employees (Teachers) were 17 respondent careful about
their investment and 15 Students responses were collected.

1) Income Level wise classification.

Income level No. of Respondent Percentage

5000-10000 15 30%
10000-15000 15 30%
15000-20000 10 20%
More than 20000 10 20%
Total 50 100%

16
Income level
14

12

10

0
5000-10000 10000-15000 15000-20000 More than 20000
Interpretation
In this above Bar Graph, we can see that 30 people were earning
5000-15000 a month, and 15000-20000 were 10 and 15000 and above
earners were 10 people.

2) In which area investors like to make Investment.

No. of
Investment Option Percentage
Respondent

Gold 10 20%
Saving account 9 18%
Fixed deposit 17 34%
Real estate 2 4%
Mutual fund 8 16%
Stock market 4 8%
Total 50 100%
 Investment Option Gold
Stock Market saving Account
8% Gold
20% Fixed Deposit

Mutual Fund Real Estate

16% Mutual Fund
Stock Market

Real Estate
4%
saving Account
18%

Fixed Deposit
34%

Interpretation
In above pie chart most of the people were opting for investment
option like Gold, Fixed Deposits, Saving Account which are safest option for
investment. And there were only 8% of the population were opting for
stock market because it’s a very risky and volatile sector for investment.

3) Are you of aware mutual fund?

Attributes No. of Respondent Percentage

Yes 21 42%
No 29 58%
Total 50 100%
 Awareness of Mutual Fund

Yes
42%

No
58%

Yes No

Interpretation
In above pie chart shows that there were very less people were aware
about the mutual fund concept i.e. 42% of the population was aware.

4) Which investment plan you prefer to invest in mutual fund?

No. of respondent Percentage

Systematic investment 17 17%
 plan
Lump sum investment 6 6%
plan
total 23 23%

Preference Type to Invest

6%

SIP
LUMSUM
17%

5) Which type of mutual fund have you invested in mutual fund?

Types No. of respondent Percentage

Debt funds 4 4%
 Hybrid fund 7 7%
Equity fund 12 12%
Total 23% 23%

Type of investment in mutual fund

4%

Debt Fund
12%
Hybrid Fund
7% Equity Fund

6) How much can you invest monthly?

Amount No. of respondent Percentage

1000-2000 7 70%
 2000-5000 10 10%
5000-10000 3 3%
More than 10000 3 3%
Total 50 50%

monthly Basis Investment

3%
7% 1000-2000
3% 2000-5000
5000-10000
More than 10000

10%

7) How many years of investment experience do you have? Or you

preferred?
 Duration No. of Percentage
respondent
Short term (0-1) 13 13%
Medium term (1-5) 17 17%
Long term (more than 5yrs) 20 20%
Total 50 50%

25

20

15

Duration of Investment
10

0
0-1 years 1-5 years More than 5 yrs

8) How would you describe your risk tolerance level?

Risk No. of respondent Percentage

Low Risk 7 7%
Moderate Risk 15 16%
 High Risk 27 27%
Total 50 50%

4.5

3.5

2.5
Risk Tolerence Level
2

1.5

0.5

0
Low Risk Moderate Risk High Risk
 9) What are your primary investment goals?

Goals No. of respondent Percentage

Wealth growth 12 12%
Capital preservation 10 10%
Income generation 9 9%
Retirement planning 17 17%
Education fund 14 14%
Total 50 50%

primery investment goals

12%
14% Wealth growth
Capital preservation
Income generation
10%
Retirement planning

17% Education fund

9%
 10) How do you usually make investment decision?

No. of Percentage
Options respondent
Individual research 17 17%
Financial advisor 15 15%
recommendation
Peer recommendation 9 9%
Past performance Data 9 9%
Total 50 50%

Investment Decision

Individual research
9%
17% Financial advisor
recommendation
9% Peer recommendation

Past performance Data

15%
 11) How did you first learn about mutual fund?
No. of Respondent Percentage
Financial Advisor 10 10%
Family and Friends 15 15%
Online Research 7 7%
Media (TV, Newspaper) 18 18%
Total 50 50%

Learn about Mutual Fund

10%

Financial Advisor
18%
family and friends

15% Online Research

Media (TV, Newspaper)

7%
 12) What factors influenced you to start investment in mutual
fund.

No. of Respondent Percentage

Financial advisor 15 15%
recommendation
Past performance Data 8 8%
Peer recommendation 15 15%
Growth rate 12 12%
Total 50 50%

Factors influenced to invest in MF

12% 15%
Financial advisor
Past Data
Peer Recommendation
15% growth rate

8%
Findings