Investor Perception on Mutual Fund with Special Reference

International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064

Index Copernicus Value (2013): 6.14 | Impact Factor (2013): 4.438

Volume 4 Issue 1, January 2015 www.ijsr.net

Licensed Under Creative Commons Attribution CC BY

Investor Perception on Mutual Fund with Special Reference to Ananthapuramu, Andhra Pradesh

Mahabub Basha Shaik

Accounting Analyst, Neovia Logistics Services India Pvt Ltd, Bangalore – 560066, India

Abstract: In India Financial Markets provides various investment avenues to the investors. Among the various financial products, Mutual fund ensure the minimum risk and maximum returns to the investors, Mutual fund companies collect the savings of the investors and make a big corpus of these savings and invested in a well-diversified portfolio of different companies. It is generally believed that mutual funds are able to diversify the risk. Mutual Fund is vehicle for investment in stock and bonds. Each Mutual Fund has a specific stated objective. So the present study aims at Perception of investors towards Mutual funds with special reference to Ananthapurmu, Andhra Pradesh. Keywords: Investment, Diversified, Portfolio, Financial Products, Risk, Return 1. Introduction A mutual fund is a financial intermediary that pools the savings of investors for collective investment in a diversified portfolio of securities. A fund is “mutual” as all of its returns, minus its expenses, are shared by the fund’s investors. The Securities and Exchange Board of India (Mutual Funds) Regulations, 1996 defines a mutual fund as a ‘a fund established in the form of a trust to raise money through the sale of units to the public or a section of the public under one or more schemes for investing in securities, including money market instruments’. 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. These could range from shares to debentures to money market instruments. The income earned through these investments and the capital appreciations realized by the scheme are shared by its unit holders in proportion to the number of units owned by them (pro-rata). Mutual funds as an intermediation mechanism and products play an important role in India’s financial sector development. Apart from pooling resources from small investors, they also provide informed decision making mechanism to them. A Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed portfolio at a relatively low cost. Mutual fund in Indian context is a challengeable phenomenon. In a short span of less than one decade it has changed the investment pattern of medium and small investors in India. Consequently study of mutual fund has become an essential ingredient of any business and finance program. Besides, the investors should know how a mutual fund operates and what should they expect from them, if they really want to benefit from this new vehicle of investment. 2. Literature Review

Gupta (1994) surveyed household investor to find investors’ preferences to invest in mutual funds and other available financial assets. The findings of the study were more relevant, at that time, to the policy makers and mutual funds to design the financial products for the future. Syama Sunder (1998) conducted a survey with an objective to get an in-depth view into the operations of private sector mutual fund with special reference to Kothari Pioneer. The survey tells that knowledge about mutual fund concept was unsatisfactory during that time in small cities like Visakhapatnam. It also suggested that agents can help to catalyse mutual fund culture, open-ended options are much popular than any other schemes, asset management company’s brand is chief consideration to invest in mutual fund. Ken L. Bechmann and Jasper Rangvid (2007) examine Danish mutual funds. Theauthors describe what is special about Danish mutual funds, as well as the dimensions along which Danish funds are comparable to other European funds. They discuss how Danish mutual funds have performed in absolute terms and in relation to other European mutualfunds, and focus also on the costs to the investor of purchasing Danish mutual funds certificates. Badrinath & Gubellini (2011) have investigated two types of funds that make more extensive use of derivatives, global funds and specialized domestic equity fund and found that risk and return characteristics of these two groups of funds are significantly different from funds employing derivatives sparingly or not all and that fund managers time their use of derivatives in response to past returns. 3. Objectives of the Study This research paper focused attention on number of factors that highlights investors perception about mutual funds, these are to find, 1. To find out the awareness level of investors regarding

mutual funds.

Paper ID: SUB15756 1768

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Binod Kum‘Attitude toOption”, Jou15. Mehta, RajaChallenging32-33. Aabhas PandTest?” ICFASingh, ChandIndia – anApplied FinaRavi Vyas (and Perceptio& CommerceBanerjee, ACreation throPortfolio Org

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o the AMC’rospective invte sector emps are found to g to the agethe mutual fun once in a yfund and slowschemes and

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International Journal of Science and Research (IJSR) ISSN (Online): 2319-7064

Index Copernicus Value (2013): 6.14 | Impact Factor (2013): 4.438

Volume 4 Issue 1, January 2015 www.ijsr.net

Licensed Under Creative Commons Attribution CC BY

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Author Profile

Mahabub Basha Shaik, Accounting Analyst at Neovia Logistics Services India Pvt Ltd, Bangalore, Earned MBA from JNTUniversity Hyderabad in the year 2009. Completed project

work on “Security Analysis and Portfolio Management” under guidance of Dr. AJ. Prasad, Hyderabad, India


Documents

Investor Perception on Mutual Fund with Special Reference