A mutualfund is the answer to all these situations. It appoints professionally qualified and experienced staff that manages each of these functions on a full time basis. The large pool of money collected in the fund allows it to hire such staff at a very low cost to each investor. In effect, the mutualfund vehicle exploits economies of scale in all three areas - research, investments and transaction processing. While the concept of individuals coming together to invest money collectively is not new, the mutualfund in its present form is a 20 th century phenomenon. In fact, mutual funds gained popularity only after the Second World War. Globally, there are thousands of firms offering tens of thousands of mutual funds with different investment objectives. Today, mutual funds collectively manage almost as much as or more money as compared to banks.
Abstract: The mutualfund is the indirect investment and the help the mobilise the small investment from the small investors this was started by the unit trust of India fist time in India This study has conducted based on the secondary data with the objective to study the net asset value, growth and amount of investment in the mutualfund. And the suggestion will be given to the mutualfund industry.
A MutualFund is a pool of money, collected from investors, and is invested according to certain investment objectives with a common financial goal. A MutualFund is created when investors put their money together. This research paper is attempt by an author to study and analyze Investment Policy of selected Equity scheme of ICICI Dynamic Plan, HDFC Top 200 Plan, IDFC Classic Fund, Reliance Fund, researcher has also try to find out Funds fundamentals , Asset Allocation, And concluded based on the findings of this paper.
The major conclusion drawn from my study was not surprising; I found a strong relationship between scheme returns and index returns but a weak correlation between the two main variables under study. However, we can always find exceptions to the study, there may be funds that may have consistently outperformed the index due to its high or low turnover ratio, but whether that outperformance can be completely attributed to turnover is questionable. Consistent outperformance may be a result of other management styles and strategy such as market timing and stock selection. Unlike other studies carried out about turnover and scheme return in the Indian mutualfund context, my analysis is based on an extensive data set and an in depth statistical analysis which helps me to validate my conclusion.
Prabakaran and Jayabal (2010) evaluated the performance of mutualfund schemes. The study conducted is on the sample of 23 schemes which were chosen based on the priority given by the respondents in Dharmapuri district in a survey and covers the study from April 2002 to March 2007. The study used the methodology of Sharpe and Jensen alpha for the performance evaluation of mutual funds. Alka Solanki (May 2016) evaluated the performance of reliance open-ended equity schemes with growth option. The period of study spans from 1 st April 2007 to 31 st March 2016. The study conducted a sample of 10 schemes from reliance mutual
Lenard et., al. (2003) empirically investigated investor’s attitudes toward mutual funds. The results indicate that the decision to switch funds within a fund family is affected by investor’s attitude towards risk, current asset allocation, investment losses, investment mix, capital base of the fund age, initial fund performance, investment mix, fund and portfolio diversification. The study reported that these factors are crucial to be considered before switching funds regardless of whether they invest in non-employer plans or in both employer and non-employer plans. Bollen (2006) studied the dynamics of investorfund flows in a sample of socially screened equity mutual funds and compared the relation between annual fund flows & lagged performance in SR funds to the same relation in a matched sample of conventional funds. The result revealed that the extra- financial SR attribute serves to dampen the rate at which SR investors trade mutual funds. The study noted that the differences between SR funds and their conventional counterparts are robust over time and persist as funds age. The study found that the preferences of SR investors may be represented by conditional multi-attribute utility function (especially when SR funds deliver positive returns). The study remarked that mutualfund companies can expect SR investors to be more loyal than investors in ordinary funds.
The researcher has selected only 50 samples from the total number of Birla Sun Life MutualFund Company in Krishnagiri District, Tamil Nadu. This study mainly focuses on Krishnagiri district, Birla Sun Life MutualFund beneficiaries only. Most of the primary data required for the study have been collected from sample respondents. Research on Birla Sun Life MutualFund is one of the emerging aspects in the recent days. The researcher found it difficult to gather the data on Birla Sun Life MutualFund in India as well as in Tamil Nadu. Hence, the limited sources of data have been applied in the study. Since there are a large number of mutualfund companies in our country, only that Birla Sun Life MutualFund who are contributing something to the satisfaction and status of the investors are considered for the study.
Over the span of thirteen years it has been noticed that the average monthly effects (AME) of the variables under study are having varying level of results (Table No 1). In terms of Equity mutualfund inflows it has been noticed that on an average the months from April to August shows a negative flow, whereas in case of Mutualfund outflows the June to November period shows a negative average figure. Moreover, on a Net flow basis of equity mutual funds, the December to March period shows a negative result. The results of these variables shows that the effects of any potential information prevails in the economy for few months to affect the performance of the Equity Mutualfund Inflows, Outflows and Net flows.
Singh and Vanita (2002) 2 in the paper "MutualFund Investors' Perceptions and Preferences-A Survey" have examined the investors' preferences and perception towardsmutualfund investments by conducted a survey of 150 respondents in the city of Delhi. The study has investigated in the following research issues: 1) the basic objectives form Vestments and average time horizon; 2) investment experiences; 3) risk, return, safety and diversification; 4) preferences of financial assets and investment schemes of mutual funds. The findings of the study were that the investors' preferred to invest in public sector mutual funds with an investment objective of getting tax exemptions and stayed invested for a period of 3-5 years and the investors evaluated past performance. The study further concludes by stating that majority of the investors were dissatisfied with the performance of their mutualfund and belonged to the category who held growth schemes.
the secondary data and the study has been conducted on the performance of the balanced scheme of the Franklin India mutualfund to study the how balance has made in the mutualfund while fulling the objectives of the investors.
Abstract: The mutualfund is an indirect investment help the investor to diversify the investment in different avenues. These help investors in several ways by giving different opportunities to invest in the schemes. This study had made attempt to know the investors buying factors and the decision towards the mutualfund. In order to achieve these objectives a structed questionnaire is prepared and distributed to 50 respondents of Mangalore region and based on the responses findings and suggestion is drawn.
1. Growth of mutualfund industry The common store industry in India began in 1963 with the development of Unit Trust of India, at the activity of the Government of India and Reserve Bank. Unit Trust of India (UTI) was set up on 1963 by an Act of Parliament. It was set up by the Reserve Bank of India and worked under the Regulatory and authoritative control of the Reserve Bank of India. In 1978 UTI was de-connected from the RBI and the Industrial Development Bank of India (IDBI) assumed control over the administrative and authoritative control in place of RBI. The primary plan propelled by UTI was Unit Scheme 1964. Toward the finish of
In recent times, mutual funds have become a hot favourite of millions of people all over the world. The driving force of mutual funds is the ‘safety of the principal’ guaranteed, plus the added advantage of capital appreciation together with the income earned in the form of interest or dividend. People prefer Mutual Funds to bank deposits, life insurance and even bonds because with a little money, they can get into the investment game. One can own a string of blue chips like ITC, TISCO, Reliance etc., through mutual funds. Thus, mutual funds act as a gateway to enter into big companies hitherto inaccessible to an ordinary investor with his small investment.
he mutualfund is a type of professionally-managed collective investment scheme which pools money from many investors. The profit gained from investments is shared to unit holders in proportion to the number of units owned by them. Thus, a MutualFund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The story of mutualfund 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 launching of innovative schemes in India has been rather slow due to prevailing investment psychology and infrastructural inadequacies. Mutual funds have evolved over the years keeping in view the changes in the economic and financial systems, as well as the legal environment of the country. According to the requirements and changes in the investors’ perceptions and expectations, new products are launched. Past studies revealed that mutualfund in India is growing but the industry is still struggling to win the investors’ confidence and to reach the beyond top 15 cities in India. One of the main reasons for lack of growth is that the lack of investors’ confidence especially from the semi-urban and rural areas. The Mutualfund industry in India is slowly shifting from top 15 cities to beyond top 15 locations to expand their market base and to tap the untapped B15 potential market avenues (Indian mutualfund industry: Challenging the status quo, setting the growth path, CII and PwC, Mutualfund Summit, 2013). Various strategies were devised by the AMFI (Association of Mutual funds of India), SEBI (Securities and Exchange Board of India) & investment advisory firms to penetrate into semi-urban and rural areas. This study determines the investors’ perception towards the various distribution channels of investment advisory firms.
In this study, Investors in general have appetite to invest in that instrument which may generate maximum return with minimum risk. To avail the advantage of economic process sizable amount of hybrid monetary product came into existence and investment firm is one in all them. Thus within the light-weight of those ever-growing developments a careful analysis of the investment firm Dr.Shantanu Mehta, Charmi Shah are analysis the Preference of Investors for Indian Mutual Funds and its Performance Evaluation In this study, Mutual funds have opened new vistas to millions of small investors by virtually taking investment to their doorstep. In India, a little capitalist usually goes for such reasonably data, which do not provide hedge against inflation and often have negative real returns. He finds himself to be associate odd man go into the investment game. Mutual funds have come back, as a far required facilitate to those investors.
The study provides evidence of the tendency of mutual funds in India to form herds while trading the stocks. The overall HM computed over all stock-quarters is 13 percent, under the restriction of at least 1 fund trading a specific stock within the quarter. The result can be interpreted as if 100 funds trade a given stock, then approximately 13 more funds trade on the same side of the market, than would be expected if the fund managers chose their stocks independently as interpreted by earlier study of herding on portugese mutual funds by Júlio Lobão (2002). The Indian mutual funds seem to herd more than the mature markets. The study also concludes that large cap stocks herd more than small caps, which support our Hypothesis. The dataset consists of a clear defined group of funds, investing in the same type of holdings and based on consistent reported snapshots of holdings. Hence, the difference compared to the more developed markets could to some extent depend on those facts applied to a sample of funds during a different time period.
The objectives of studytowardsmutualfund as per the sample size and method Which is applied to the study and found that the investors are not choosing or feeling confident in investing in mutualfund because they think that mutualfund is risky than other investment options The awareness level of mutualfund among the investors are very low because of only having the partial knowledge about the mutualfund which prevent them to Invest in mutualfund to avoid risk bearing factor and fear of losing money The objective of study to know about the perception of common investor about mutual funds of PSU and private entities in different cities. The awareness level of mutualfund among the investors are very low because of only having the little knowledge about the mutualfund which prevent them to invest in mutual funds. To avoid risk bearing factors and danger of great loss. What we observed there is enough money with them in tire two cities of people but they are in confusion in absence of awareness.
Indian mutualfund has increased a lot of recognition from the past not many years. The present research analyses the mutualfund investments in next of kinfolk to investor’s awareness. The Industrial growth and development to a huge widen depends on property formation. Wealth formation mainly depends on the savings of the people. Investors’ opinion and perception have been studied relating to diverse issues like type of mutualfund scheme, main objective following investing in mutualfund scheme, role of financial advisors and brokers, investors’ opinion relating to factors that catch the attention of them to invest in mutual funds, sources of in turn, deficiency in the services provided by the mutualfund managers, tackle before the Indian mutualfund industry etc. This study will discuss the past performance of the Indian mutualfund industry and the pace of growth it achieved after being yield to regulatory changes by SEBI, international factors and its non performance that affected the industry and its attitudes. Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. Today they play an important role in household finances. The research explains about investors’ awareness towardsmutual funds, investor perceptions, their preferences and the position of satisfaction towardsmutual funds. Some suggestions were also made to increase the awareness towardsmutual funds and measures to select suitable mutual funds to maximize the returns.
factors like age, gender, marital status, level of market knowledge, educational qualification of retails investors and the number of dependents. Devasenathipathi, Saleendran and Shanmugasundaram (2007) in their study disclosed that 30% of the respondents in the sample group of 200 had awareness of mutual funds through consultant’s advisory services, 46% respondents in the age group of 25-35 years had a lot of interest and more investments in mutual funds and 31% of the respondents had maintained mutualfund investments to meet future expenses. The study also unfolded that dividend had been the most preferred investment option for the respondents and 49% of the respondents had preferred to invest in equity fund other than the debt and balanced fund. Shanmugsundaram and Balakrishnan (2011) analyzed the investorbehaviour on result announcement. It was concluded that when the result announced by the company were better than expected, 38% of the respondents desired to invest more and 40% of the respondent desired to hold the securities and 22% of investor wished to book the profit. Research further concluded that maximum number of respondent fell in the age of 21-30 years category out of which 75% of the respondents fell in the income level of below Rs.3,50,000 and 50% of the respondent were below the income level of Rs.1,50,000. Singh, and Chander (2003), identified that estimation of risk and return, portfolio selection and NAV are important criteria for mutualfund appraisal. The ANOVA results concluded that occupational status and age had immaterial influence on the choice of scheme. The important factors in the selection of schemes for salaried and retired investors were attributed to the past track record, safety and future growth prospects. Investors also expected prompt service, reliable information and also repurchase facility from the companies. Majority of retail investors
By the overall observation of various mutual funds like UTI mutual funds, HDFC mutual funds, SBI mutual funds etc. The mutualfund investors always expect more return from their investment. Now more and more investors were attracting towardsmutualfund investment for high returns, liquidity, tax benefits, diversification etc. This study helps to know the empirical study on investors’ perception towards investment in mutual funds. If the mutualfund companies adopts and uses these suggestions it can attract more new investors to their mutualfund schemes and the general growth in the mutualfund industry can be seen.