Mutual Fund Theory

DATA ANALYSIS

AGE

Less than 30 58 40.3%

31-40 56 38.9%

40-50 30 20.8%

The questionnaire was filled by 144 respondents out of which highest number of respondents was in the age group of less than 30. The pie chart and table shows the segregation of the respondents on the basis of age group. The data is collected from the age group of 20-50 as they are assumed to be the active participants in mutual fund industry as compare to elderly population

QUALIFICATION

Under Graduate 2 1.4% Graduate 43 29.7% Post Graduate 97 66.9% Other 3 2.1%

The data was collected from the sample with different educational qualification. Most of the respondents were having the post-graduation as a qualification. It can be seen from

PAST PERFORMANCE OF MUTUAL FUND: It is considered as one of the most important characteristic by 58% of the respondents in the selection of a mutual fund. It is believed that past performance of a fund plays an important role in the selection of that fund as an investment. It has also proven by various research papers that past performance of a fund plays an important role in determining its future returns.

II. CURRENT NAV OF MUTUAL FUND: It is also marked as an important characteristic of a mutual fund by almost 60% of the respondents. This states investors look for the current value of a NAV as a feature of a mutual fund.

III. REPUTATION OF MUTUAL FUND COMPANY: It recorded a mixed response as an important characteristic of a mutual fund, as some respondents believe it to highly important and nearly same number of respondents marked it as moderately important characteristic. Near about 8% of the population think it was not an important characteristic of a mutual fund.

IV. AVAILABILITY OF TAX BENEFITS: This is also recorded as an important characteristic of a mutual fund. It is solely because most of the people are salaried employees who try to minimize their taxable income. There are number of schemes which can provide tax shields such as ELSS

Following are the 5 sources along with the responses recorded and results:

I. TELEVISION: It is most important source of information for the investors. Many researchers have argued it to be the most effective source of information to the investors. This study also supports this argument as 76% of the respondents strongly agree to label as television the most effective source of information.

II. INTERNET: Internet as a source of information about mutual funds is on rising path. But, currently most respondents do not believe it to be as effective as television. Only 62% agree to internet as a source of information.

III. FRIENDS: This is the least regarded source of information about mutual munds. Almost 45% of the respondents show neutral view on it.

IV. SALES REPRESENTATIVES: there are 79 respondents who think it as source of information for mutual funds. But, on comparison with television and internet it does show a positive view as a source of