Scribd
Upload
152 views15 pages

Investor Preferences in Mutual Funds

This document analyzes survey data from 120 investors in Delhi about their investment preferences. Some key findings: - 38% of investors are private employees, 29% government employees, 25% businessmen - 36% of investors earn Rs. 20,001-30,000 monthly, 27% over Rs. 30,000 - 97.5% of investors have savings accounts, 74% fixed deposits, 60% mutual funds - 67% of investors are aware of mutual funds, with financial advisors the top info source - 60% of investors have invested in mutual funds, preferring SBI and ICICI funds - 65% prefer one-time investments, 35% systematic investment plans - 46% prefer

Uploaded by

garg_anshita
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Topics covered

  • Investment Research,
  • Advertisement Impact,
  • Investment Risks,
  • Investment Strategies,
  • Peer Group Influence,
  • Financial Literacy,
  • Equity Portfolio,
  • Investment Goals,
  • Monthly Income,
  • Investor Occupation
152 views15 pages

Investor Preferences in Mutual Funds

This document analyzes survey data from 120 investors in Delhi about their investment preferences. Some key findings: - 38% of investors are private employees, 29% government employees, 25% businessmen - 36% of investors earn Rs. 20,001-30,000 monthly, 27% over Rs. 30,000 - 97.5% of investors have savings accounts, 74% fixed deposits, 60% mutual funds - 67% of investors are aware of mutual funds, with financial advisors the top info source - 60% of investors have invested in mutual funds, preferring SBI and ICICI funds - 65% prefer one-time investments, 35% systematic investment plans - 46% prefer

Uploaded by

garg_anshita
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Topics covered

  • Investment Research,
  • Advertisement Impact,
  • Investment Risks,
  • Investment Strategies,
  • Peer Group Influence,
  • Financial Literacy,
  • Equity Portfolio,
  • Investment Goals,
  • Monthly Income,
  • Investor Occupation

ANALYSIS & INTERPRETATION OF THE DATA a). Occupation of the investors of Delhi Occupation Govt. Service Pvt.

Service Business Agriculture Others . No. of Investors 30 45 35 4 6

Interpretation: In Occupation group out of 120 investors, 38% are Pvt. Employees, 25% are Businessman, 29% are Govt. Employees, 3% are in Agriculture and 5% are in others. (d). Monthly Family Income of the Investors of Delhi Income Group <=10,000 10,001-15,000 15,001-20,000 20,001-30,000 No. of Investors 5 12 28 43

>30,000 Interpretation:

32

In the Income Group of the investors of Delhi, out of 120 investors, 36% investors that is the maximum investors are in the monthly income group Rs. 20,001 to Rs. 30,000, Second one i.e. 27% investors are in the monthly income group of more than Rs. 30,000 and the minimum investors i.e. 4% are in the monthly income group of below Rs. 10,000

(2) Investors invested in different kind of investments. Kind of Investments Saving A/C Fixed deposits Insurance Mutual Fund Post office (NSC) Shares/Debentures Gold/Silver Real Estate No. of Respondents 195 148 152 120 75 50 30 65

Interpretation: From the above graph it can be inferred that out of 200 people, 97.5% people have invested in Saving A/c, 76% in Insurance, 74% in Fixed Deposits, 60% in Mutual Fund, 37.5% in Post Office, 25% in Shares or Debentures, 15% in Gold/Silver and 32.5% in Real Estate.

4. Awareness about Response No. of Respondents Yes 135 No 65

Mutual Fund and its Operations

Interpretation: From the above chart it is inferred that 67% People are aware of Mutual Fund and its operations and 33% are not aware of Mutual Fund and its operations.

5. Source of information for customers about Mutual Fund Source of information Advertisement Peer Group Bank No. of Respondents 18 25 30

Financial Advisors

62

Interpretation: From the above chart it can be inferred that the Financial Advisor is the most important source of information about Mutual Fund. Out of 135 Respondents, 46% know about Mutual fund Through Financial Advisor, 22% through Bank, 19% through Peer Group and 13% through Advertisement.

6. Investors invested in Mutual Fund Response YES NO Total No. of Respondents 120 80 200

Interpretation: Out of 200 People, 60% have invested in Mutual Fund and 40% do not have invested in Mutual Fund.

7. Reason for not invested in Mutual Fund Reason Not Aware Higher Risk Not any Specific Reason No. of Respondents 65 5 10

Interpretation: Out of 80 people, who have not invested in Mutual Fund, 81% are not aware of Mutual Fund, 13% said there is likely to be higher risk and 6% do not have any specific reason.

9. Reason for invested in SPA Reason Associated with financial advisors No. of Respondents 35

Better Return Agents Advice

5 15

Interpretation: Out of 55 investors of SPA 64% have invested because of its association with Financial advisors , 27% invested on Agents Advice, 9% invested because of better return.

11. Preference of Investors for future investment in Mutual Fund Name of AMC No. of Investors

SBIMF UTI HDFC SPA ICICI Prudential Kotak Others

76 45 35 82 80 60 75

Interpretation: Out of 120 investors, 68% prefer to invest in SPA, 67% in ICICI Prudential, 63% in SBIMF, 62.5% in Others, 50% in Kotak, 37.5% in UTI and 29% in HDFC Mutual Fund.

12. Channel Preferred by the Investors for Mutual Fund Investment Channel No. of Respondents Financial Advisor 72 Bank 18 AMC 30

Interpretation: Out of 120 Investors 60% preferred to invest through Financial Advisors, 25% through AMC and 15% through Bank.

13. Mode of Investment Preferred by the Investors Mode of Investment No. of Respondents One time Investment 78 Systematic Investment Plan (SIP) 42

Interpretation: Out of 120 Investors 65% preferred One time Investment and 35 % Preferred through Systematic Investment Plan.

14. Preferred Portfolios by the Investors Portfolio Equity Debt Balanced No. of Investors 56 20 44

Interpretation: From the above graph 46% preferred Equity Portfolio, 37% preferred Balance and 17% preferred Debt portfolio

15. Option for getting Return Preferred by the Investors Option Dividend Payout Dividend Reinvestment No. of Respondents 25 10 85 Growth

Interpretation:

From the above graph 71% preferred Growth Option, 21% preferred Dividend Payout and 8% preferred Dividend Reinvestment Option.

16. Preference of Investors whether to invest in Sectoral Funds Response Yes No No. of Respondents 25 95

Interpretation: Out of 120 investors, 79% investors do not prefer to invest in Sectoral Fund because there is maximum risk and 21% prefer to invest in Sectoral Fund.

BIBLIOGRAPHY
ECONOMIC TIMES(NEWSPAPER)

[Link] [Link] [Link] CAPITAL

WWW. [Link] BUSINESS TIMES MAGZINES

ANNEXURE A study of preferences of the investors for investment in mutual funds. 1. Personal Details: (a). Name:(b). Add: (c). Age:Phone:-

(e). Occupation. Pl tick ()

Govt. Ser

Pvt. Ser

Business

Agriculture

Others

(g). What is your monthly family income approximately? Pl tick (). Up to Rs.10,000 Rs. 10,001 to 15000 Rs. 15,001 to 20,000 Rs. 20,001 to 30,000 Rs. 30,001 and above

2. What kind of investments you have made so far? Pl tick (). All applicable. a. Saving account b. Fixed deposits g. Gold/ Silver h. Real Estate c. Insurance d. Mutual Fund

4. Are you aware about Mutual Funds and their operations? Pl tick (). Yes No

5. If yes, how did you know about Mutual Fund? a. Advertisement b. Peer Group c. Banks d. Financial Advisors

6. Have you ever invested in Mutual Fund? Pl tick (). 6. YES NO If yes, in which Mutual Fund you have invested? Pl. tick ().

a. SBIMF

b. UTI

c. HDFC

d. SPA

e. Kotak

f. Other. Specify

7. If invested in SPA CAPITAL, you do so because (Pl. tick () a. SPA is associated with FINANCIAL ADVISORS. b. They have a record of giving good returns year after year. c. Agent Advice

9. Which Channel will you prefer while investing in Mutual Fund? (a) SPA Financial Advisor (b) SBI Bank (c) AMC 10. When you invest in Mutual Funds which mode of investment will you prefer? Pl. tick (). a. One Time Investment b. Systematic Investment Plan (SIP)

11. When you want to invest in mutual fund, which type of funds would you choose? a. Having only debt portfolio b. Having debt & equity portfolio. c. Only equity portfolio.

12. How would you like to receive the returns every year? Pl. tick (). a. Dividend payout b. Dividend reinvestment c. Growth in NAV

13. Instead of general Mutual Funds, would you like to invest in sectorial funds? Please tick (). Yes No

Common questions

Powered by AI

Delhi investors' preferences for specific Asset Management Companies (AMCs) are influenced by various factors, including brand association and financial expertise. SPA is the most preferred AMC by 68% of investors, likely due to its association with financial advisors, making it a trusted choice . ICICI Prudential and SBIMF are also popular, partly due to their established brand names and reported financial performance . Financial advisors play a crucial role in these decisions, as many investors rely on their recommendations for choosing AMCs . The association with financial advisors suggests that trust and expert guidance are significant factors in these preferences.

Investors' income levels likely influence their choice of investment channels. Higher-income investors, who are more frequently found in the Rs. 20,001 to Rs. 30,000 range (36% of investors), may prefer financial advisors (60% preference) due to their ability to pay for specialized services that might offer tailored advice and solutions . In contrast, those with lower incomes might utilize banks or AMCs directly, who provide more cost-effective yet less personalized options, as indicated by 25% using AMCs and 15% choosing banks . The ability to afford financial advisors suggests that higher incomes bring a preference for personalized financial services.

Delhi investors show a clear trend towards equity and balanced portfolios, with 46% preferring equity and 37% preferring balanced portfolios, compared to only 17% opting for debt portfolios . This trend indicates a greater appetite among investors for higher risk and potentially higher returns, which equity investments tend to offer. The preference for balanced portfolios also suggests a desire for some level of risk mitigation combined with growth opportunities. These choices likely reflect a strategic approach to maximizing returns while managing exposure to market volatility.

Among Delhi-based mutual fund investors, there is a notable preference for one-time investments over Systematic Investment Plans (SIPs). 65% of the respondents prefer a one-time investment, whereas 35% choose SIPs . This preference highlights a tendency towards making larger, less frequent investments, which could be influenced by the investors' confidence in managing lump sum investments or a preference for minimum procedural involvement compared to the recurring commitments that SIPs require.

The primary reason for not investing in mutual funds among surveyed individuals is a lack of awareness, cited by 81% of those who haven't invested . Additionally, 13% perceive higher risks associated with mutual fund investments compared to other options . A small fraction, 6%, did not have any specific reason . These findings suggest that increasing educational outreach and addressing risk perception are key strategies for encouraging broader participation in mutual fund investments.

A significant percentage of investors prefer not to invest in sectoral funds due to the perceived high risk associated with them, with 79% indicating a lack of preference for these funds . Sectoral funds, which focus investments in specific industries, are subject to higher volatility due to their lack of diversification and dependency on the performance of particular sectors. This increased risk does not align with the investment preferences of most investors, who might be more risk-averse or prefer diversified portfolios to safeguard their investments.

Financial advisors play a critical role in influencing investment decisions in SPA mutual funds. 64% of investors in SPA have chosen to do so because of its association with financial advisors , indicating the significant trust and reliance investors place on advisors' recommendations. This influence is further reflected in their role as the most important source of information about mutual funds for 46% of respondents . Such reliance underscores the impactful role advisors play in guiding investment choices, likely contributing to the formation of strategic, informed, and aligned investment decisions by investors.

The occupation distribution of investors in Delhi appears to influence their investment preferences. For example, a notable percentage of investors are private employees (38%) and government employees (29%), who might prefer stable investment options like savings accounts and fixed deposits, which have high participation rates at 97.5% and 74%, respectively . The preference for stability among these occupation groups could be due to their steady income, which contributes to risk aversion. In contrast, business people, who make up 25% of the investors, might lean towards higher-risk, higher-return investments such as mutual funds, where 60% of all investors participated .

There is a significant relationship between awareness and investment in mutual funds among the investors surveyed. 67% of people are aware of mutual funds and their operations . Correspondingly, 60% of the respondents have invested in mutual funds, indicating that awareness positively influences investment decisions . Among those who have not invested, 81% cited lack of awareness as the reason , suggesting that increasing awareness could potentially increase investment in mutual funds.

Income levels significantly impact investors' risk preferences concerning chosen return options. Investors in higher income brackets are more likely to prefer the growth option (71% preference), which caters to long-term capital appreciation but involves higher risk. This aligns with their ability to absorb potential losses better due to higher disposable incomes. Conversely, those in lower income brackets might opt for dividend payouts (21%) or reinvestment (8%) options , reflecting a preference for more immediate, albeit smaller, returns. These options typically appeal to risk-averse individuals who prioritize stable income over high-risk investments, demonstrating an inverse relationship between income and risk tolerance.

You might also like