Description
Awareness is the state or ability to perceive, to feel, or to be conscious of events, objects, or sensory patterns.
A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION OF MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE. By T.JAYA VEERA PANDIYAN (Reg. No: 35104124) of S.R.M ENGINEERING COLLEGE PROJECT REPORT Submitted to S.R.M SCHOOL OF MANAGEMENT In partial fulfillment of the requirements for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION in SRM INSTITUTE OF SCIENCE AND TECHNOLOGY (Deemed University) S.R.M Nagar Kattankulathur-603203 MAY 2006
BONAFIDE CERTIFICATE
Certified that this project report titled “A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION OF MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE” is an original work done by Mr.T.JAYA VEERA PANDIYAN (Reg.no 35104124) of fourth semester, SRM school of Management, SRM Institute of Science and Technology, (Deemed University) Kattankulathur, during the academic year 2006, who carried out the research under my supervision. Certified further ,that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other certificate.
Faculty Guide
HOD/Dean
Internal Examiner
External Examiner
PLACE: KATTANKULATHUR DAT E :
2
DECLARATION
I ,T.JAYA VEERA PANDIYAN ,student of SRM school of Management, SRM Institute of Science and Technology, (Deemed University) Kattankulathur ,ad here by declare that this project report titled “A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION OF MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE” is an original work done by me and submitted to the SRM school of Management for the award of Master Degree in Business Administration .I further declare that any part this project itself has not been submitted elsewhere for award of any degree .
PLACE: KATTANKULATHUR DATE :
3
ACKNOWLEDGEMENT I thank my parents, who have constantly encouraged, and continuously supported for my entire academic study.
I express my sincere gratitude to Dr.Mrs.JAYSHREE SURESH B.A.,MBA.,Ph.D. Head of the department, SRM School of Management for giving me the opportunity to develop this project.
I express my sincere thanks to our guide Mr. P.SARAVANAN
Faculty
guide, SRM School of Management for his valuable guidance for the completion of this project.
I am greatly privilege to express Mr. R.SUNDAR RAMAN, Regional Area Manager Integrated Enterprises (India) Limited, Coimbatore region for allowing me to do Project in the esteemed organization and his encouragement and guidance for the completion of this project.
I express my sincere thanks to all my friends and family members for their constant support, blessings and co-operation, which they gave me at all steps of this project work.
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CONTENTS LIST OF TABLES
S.NO CHAPTER 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Introduction Review of literature
PARTICULARS
PAGE.NO
1 2 4 5 6 7 10
Objectives of the study Scope of study Statement of problem Research methodology Limitations of project CHAPTER 2
2.1 2.2
Company profile Industry profile CHAPTER 3
11 15
3.1 3.2
Project data analysis and interpretation Chi-square test CHAPTER 4
21 55
4.1 4.2
Findings Suggestions CHAPTER 5
61 62
5.1
Conclusion ANNEXURES Questionnaire Bibliography
63
64 65
S.NO 1 2
PARTICULARS Educational qualification of respondents Income level of respondents
PAGE.NO 21 23
5
3 3.1
Respondent who has any investment Respondents interest to invest their money who have no investment
25 27
3.1.1
Pattern of investment the respondent are interested to invest money
29
4 5 6 7 8 9 10 11 12 13 14 15
Factors considering before an investment Awareness level of mutual funds Reason for non-awareness about mutual fund Respondents expectation Information about mutual fund. Assessment of the performance of mutual fund. Fund preferred by the respondents Mutual fund company preferred by the respondents Satisfactory level of returns the mutual fund Basis for the selection of mutual fund Channel for making investment Respondents interest to any kind of investor awareness programme on financial product
31 33 35 37 39 41 43 45 47 49 51 53
LIST OF CHARTS
S.NO 1 2 3
PARTICULARS Educational qualification of respondents Income level of respondents Respondent who has any investment
PAGE.NO 22 24 26
6
3.1 3.1.1 4 5 6 7 8 9 10 11 12 13 14 15
Respondents interest to invest their money who have no investment Pattern of investment the respondent are interested to invest money Factors considering before an investment Awareness level of mutual funds Reason for non-awareness about mutual fund Respondents expectation Information about mutual fund. Assessment of the performance of mutual fund. Fund preferred by the respondents Mutual fund company preferred by the respondents Satisfactory level of returns the mutual fund Basis for the selection of mutual fund Channel for making investment Respondents interest to any kind of investor awareness programme on financial product
28 30 32 34 36 38 40 42 44 46 48 50 52 54
CHAPTER I 1.1 INTRODUCTION The decade of the nineties brought India to new era of liberalization and globalization .these has been a radical change in the economy policy in India, from a state controlled to market economy, centralized planning and state control which had outlived their utility in the wake of changes in the international economic environment, made way for structural adjustment programs and economic liberalization. The objective of the reforms here to remove the entry barriers for domestic private sector institutions and FIIs, increase transparency in operations of financial intermediaries and promote an environment of healthy competition. The market regulations have been empowered to
7
play their role as watching and supervisory structures have been strengthened to prevent market failures and protect the interests of the investors The Indian citizen has a lot of avenues to invest his funds. a prudent investor can earn a high return by investing his funds in various areas like company deposits,debentures,shares,mutual funds etc. the Indian is looking at new avenues for earning decent return. However the recent scandal has dampened investors’ confidence. He is looking away from the equity, mutual funds etc., which is very evident from the ever lowering stock market prices and inconsistent performance mutual funds. The investors looking for more safe avenues like bank deposits and debentures to park his money. To bring back investors confidence various regulatory bodies like SEBI ,RBI etc, has brought about sweeping reforms .it remains to be seen how much the measures would boost the confidence of the investor . Indian capital and the money market will be needed to play a vital role towards integrating India with global economy. So it is absolutely essential that measures are taken to revive the financial market 1.2 REVIEW OF LITERATURE A STUDY ON INVESTOR PERCEPTION ON MUTUAL FUND SCHEMES FOR KARVY CONSULTANTS LTD., CHENNAI by Mr. P. PAVAN KUMAR on April 14th 2000 for University of Madras . This project deals with the investor perception on mutual funds .to point out the salient features of different schemes in India, gives the overall view of mutual funds in India and the awareness of Karvy Consultants Limited among the investors in Chennai. He found out mostly the investors preferred fixed income investments like bank deposits and company deposits rather than other investment avenues .over 50 percentage of the respondents are
8
aware of mutual funds but some of the new concepts like opportunity funds ,IT funds ,Gilt funds ,money market funds are still new to them. Some of the investors have lost their faith in mutual funds industry and also in operations of the stock market with recent sprits. Most of the respondents are not willing to take risk in investing in mutual funds. Over 50 percentage of the respondents are approaching agents for investments in mutual funds and other investment avenues. Majority of the respondents are approaching Karvy Consultants Ltd., for their investments in mutual funds. The respondents are satisfied with the services rendered by Karvy Consultants Ltd., regarding their helping with guidance and advice, supplying and collecting applications forms but also dissatisfied with giving information about the new schemes and sorting out problems or complaints with mutual funds. Finally he suggested that the details of the schemes, their advantages and introduction of new schemes should be explained to them and also the safety schemes should be stressed .To create awareness about the company, the services rendering and about the mutual funds, publicity campaigns should be conducted. Finally ,the investors are very well satisfied with Karvy Consultants Ltd.,regarding and supplying and collecting the applications forms ,guidance and advices but they are dissatisfied with pooling of knowledge of new schemes and sorting out the complaints and problems with the mutual funds . If they do these services better, the satisfaction of the investors will be high.
1.3 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
9
The study is aimed to find out the consumer awareness level of mutual funds.
SECONDARY OBJECTIVE:
1. To study about the investments level of respondents.
2. To find out the satisfactory level of mutual fund.
1.4 SCOPE OF THE STUDY The study is confined to R.S Puram and Saibaba colony, Peelamedu ,Coimbatore areas only .the nature and scope of the study covering the investors perception and preferences regarding various mutual fund schemes available in India ,including of public ,private ,NBFC,UTI sectors. 1.5 STATEMENT OF PROBLEM Finance is the life blood of any business firm and also needed for the individuals .For getting smart returns ,the individuals are investing their valuable money in various investment avenues .for this ,the individual investors are generally approaching the agents for investing their money in profitable investment avenues and also for getting other related services from them .Their investment is based on these awareness of the mutual funds and products so ,the present study concentrates on” General public awareness and customer satisfaction of mutual funds – in focus with integrated enterprises (India) limited Coimbatore”.
1.6 RESEARCH METHODOLOGY
1.5.1SOURCE OF DATA COLLECTION This study is based on the primary as well as secondary data. The research adopted major techniques of data collection for eliciting data i.e., questionnaire, and schedule.
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(A) PRIMARY DATA Primary data regarding this study was collected through the direct and indirect methods of data collection. questionnaire. (B) SECONDARY DATA These are data’s already exist in records secondary data was collected from various, journals, books and may a gins. 1.5.2 SAMPLING The required data in personnel research may be obtained by sampling method. The study utilizes, which comes under non-probability sampling. A total sample size taken for this study is 300. 1.5.3 QUOTA SAMPLING It is a special form of stratified sampling. The number to be selected from each stratum, which is known as quota, is selected in advance; here also the universe is divided in the strata on the basis of charms of population. The sample units are chosen so that each stomata is represented to be impotents in the population in quota sampling the units are choose on non- random manner while stratified sampling they are choose on random basis. Thus in the selection process each number by universe does not have a non – chances of being choose. 1.5.4 DATA DESIGN The respondents those who are involved in the study This is obtained directly from the peoples of thermally with the help of
Professionals
Business men
11
Farmers
1.5.5 TOOLS FOR DATA COLLECTION The Researcher obtained the response from the respondents by using structured and openended questionnaire. 1.5.6 ABOUT QUESTIONNAIRE The collection of data for the study was done by direct interview with 300 people. The average time taken for each interview was seven minutes 1.5.7 DATA PROCESSING AND ANALYZING INSTRUMENTS After the information has been collected it needs to be interpreted. This is very difficult task and requires high degree of skill judgment and objectivity. In the absence of these, there is every lively-hood of the data being misused to prove things that are not at all true. 1.5.8 PERCENTAGE ANALYSIS The data collected has been tabulated and the percentage of respondents for each factor has been calculated using tally mark operation data has been converted is to quantitative figure. The percentage of analysis has been done to draw the conclusion. Percentage refer is the special kind of ration. Percentages are used in making comparison between two or more series of data. Percentages can also used to compare the relative terms, the distribution of two or more series of data. The easy and simplicity of calculating the general understanding of its purpose and the universal applicability of the present static have made it most widely and standardized tool in researches. Since the percentage reduced everything to a common base and there by allow meaning full comparison to be made with the data the percentage analysis is conducted by dividing the number of respondents with. Population of sample. 1.5.9 CHI-SQUARE TEST
12
The chi-square test is an important test amongst the several tests of significant developed by statisticians. Chi-square symbolically written as X2. is a statistical measure used is the context of sampling analysis for comparing a variance to a theoretical variance. The test is in fact a technique through the use of which it is possible for all researchers to 1. 2. 3. Test the goodness of fit Test the significance of association between two attributes Test the homogeneity or the significant of population variance.
1.5.10 PERCENTAGE ANALYSIS FORMULA
Percentage =
Number of respondents X100 Total Number Population
RANK CORRELATION =
1-
6? D2 n( n 2 - 1)
CHI-SQUARE = Where, O = Observed value ,
( O E )2 E
E = Expected value
Table value of Chi-Square at 5% level of significant with 1 degree of freedom = 3.841
1.7 LIMITATIONS
?
The study was limited to the Respondents of the respondents of Coimbatore. So the researcher could only accommodate with respondents furnished.
?
The area of research was very wide and to lack of sufficient time and money, the time required to conduct a detailed research was limited
?
Respondent’s attitude may change while on collecting data.
13
?
Some times the obtained data is not corrected from respondents.
CHAPTER II 2.1COMPANY PROFILE
We professionally managed public Limited started over the operations on April 15th 1974 at Kumbakonam; founded Mr. P. Vaidyanathan (chairman) started it as private Limited and later it was renewed as a pubic Limited Company .we are Category 1 Merchant Banker approved by SEBI, Category 1 Registrar & STA approved by SEBI and a well knowned Depositary Participant through NSDL and the customers found as reliable through our standards towards the operations and it enhanced our features to goodwill.
SERVICE SPECTRUM • • • •
More than 100 Branches across the country Serving over 5 Lac Investor Families More than 2 Lac Demat Accounts A trusted household-name in Investment Counseling
SALIENT FEATURES •
Investment Advisory Services Marketing Corporate Fixed Deposits, Debentures, Public Sector Bonds, Mutual Funds, UTI and Public Issues.
• • •
Depository Services Opening of Depository Accounts, Demat and other related activities Insurance Services Marketing Life, Health & General Insurance Schemes Stock Broking Services Facilitating Buying & Selling of Securities through NSE
OUR QUALITY POLICY:
To build and sustain an organisation where quality is the hallmark of every operation with absolute integrity to customers.
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GUIDING PRINCIPLES OF QUALITY: • • • • •
Customers is our focus-quality means meeting customers requirements with excellence Staff commitment and motivation to form the way of life Quality is build into the process and out come through prevention rather than correction The level of quality is measured by the cost of non conformance quality improvement is the continuous process
CORPORATE MOTTO
Building Trust - Building Confidence - Building Relationship through Absolute Integrity & Transparency, because Integrity is in our soul!
CUSTOMER’S PERSPECTIVE: • Convenience: Offers invaluable convenience –single some solution for all investment needs
and range of financial services
•
Proximity
national wide network)Time and money saved on reaching the applications and
cheques to various companies
•
Investors relation centre:
Acting as a vital links and binds corporates and investors
complaints grievances redressal faster through national wide computer networked branches
•
Up-to-date and unbased information: Provides up to date information on the investment on
the investment scene and opportunities through “integrated share news” a complementary update.
•
Value added beneifits: Enriching the value of the customers by offering innovative services
in tune with the times.
THE BOARD OF DIRECTORS
The Board of Directors of the company are
• •
Mr. P. Vaidyanathan - Chairman Mr. M. Jayaraman - Whole time Director
15
• •
Mr. S. Sundar - Whole time Director Mr. R. Sridhar – Director
OUR ASSOCIATION •
We are associated with National Securities Depository Limited, (NSDL), the Largest Depository in India for carrying out the depository service. We are registered Depository Participant and serving over 2,00,000 clients. We are the Depository registrar for more than 80 Corporate Clients.
•
We are also associated with Central Depository Services Limited (CDSL). We are doing Depository Services and registry Services with over 80 major Corporate Clients.
OUR RANKING • • • • •
Largest Investment Consultant to individuals Largest Service Provider to investors to Corporates Largest fund mobilizers for Corporates Largest Depository Participant Largest Network of branches
OUR STRENGTH • •
Serving nearly half a million investor's families. 1000 Staff strength comprising Marketing, back office Processing, Front Desk Counselors, Software and administrative team.
• •
Branches connected through Virtual Private Network.(VPN). Deploying latest software technology for on-line processing.
BUSINESS STATISTICS
16
Retail Investing Clients Depository Clients Corporate Clients Personal Financial Schemes Nature Retail Investments Depository Transactions Back Office Processing
5,00,000 2,10,000 101 2,000
Business Volume
INR 1 Billion 1.1 Million 0.5 Million INR 635 Millions
Revenue (INR)
100 Million 37 Million 14 Million 6 Million
Transactions Personal Financial Schemes
2.2 INDUSTRY PROFILE MUTUAL FUNDS
Mechanism of pooling the resources by issuing the unit to investors and investing funds in securities. These investments are later spread across different industries and sectors thus reducing the risk. In accordance with portion of money invested by investors mutual fund issues units. Investors of mutual fund are known as unit holders. Finally the profit of loss will be shared among investor. 1964 – UTI Unit Trust of India started in view of entering in investment options etc. Till 1986 – monopoly in this field.
17
From 1986 – 1993 SBI, can bank entered in the field of mutual funds investments followed by GIC, LIC, etc., In 1992, the securities and exchange Board of India (SEBI) was format to prefect the investor funds Development of mutual funds and to regulate the securities market. From one single player in the year 1985 it grew up to 8 in the year 1993. In 1993 private members were allowed to maintain funds, which result in entry of international players in this field thus JP. Morgan, Morgan Stanley etc. Companies came in to picture. Later the benefit in taxation leads to the enlargement of investments in mutual fund Business.
MUTUAL FUND COMPANIES JRG DEALS WITH
1. Franklin Templeton 2. ICICI prudential 3. HSBC 4. HDFC 5. Can Bank 6. UTI 7. SBI 8. Reliance 9. Tata 10. Sahara 11. Fidelity 12. Birla sun life 13. ING Vysa
MAJOR UNIT OF A MUTUAL FUND
18
It should have a trust, a sponsor a fund manager (Access management company – AMC) in the below companies any one can start a mutual fund registering of SEBI with its objectives and its offer document. The sponsor will look after the expense of the mutual fund where as the fund manager (AMC) is the alacrity to study the market and invest the amount from investors in different industries and sectors. In basis of market value the profit and loss can be accessed which in turn results in more deposits and withdrawals.
N.A.V. NET ACCESS VALUE
NAV for a particular scheme is the market value of a particular day. The total market value divided by total units gives NAV of a unit.
DIFFERENT TYPES OF MUTUAL FUNDS SCHEMES First Division Based On Maturity
Open-ended scheme / fund and closed ended scheme / fund.
OPEN ENDED SCHEME ? ? ? ? ?
The one that is available for Subscription and respondents pm continuous basis. No fixed maturity period. Investors can buy and self-units at NAV related prices on a daily basis. The important feature is liquidity Disclose NAV on daily basis.
CLOSED ENDED SCHEME ?
It has a stipulated maturity period.
19
?
The fund is open for sub scrimption only for a specified period at the time of scheme at the time of initial public issue and there after they can purchase or sell units of the scheme on the stock exchange where the units are listed.
?
Some closed – ended funds provide exist open by selling the units back to the mutual fund by derided repurchase at NAV related price.
? ?
Two exist option either to repurchase unit or through listing at stock exchange. Disclose NAV in weekly basis.
5.2 Schemes According To Investment Objective
Mainly classified as
? ? ? ?
Growth /equity oriented scheme Income/debt oriented scheme Balanced fund Money market/ liquid fund.
20
GROWTH LIQUIDLY ORIENTED FUND
The aim of growth fund is to provide capital appreciation or a long – term period.
? ? ? ?
Normally invest in equities Highly risk Give various options to investor’s like dividend capital appreciation etc. It’s good for long-term investors.
Further Classification Can Be ? ? ?
Diversified – allocate fund in different sector – Risky Sector – invest in a particular sector – very risky Index fund – as per weight age in sensex.
INCOME / DEBT ORIENTED SCHEME ? ? ? ? ? ? ?
Aimed to give regular and steady income to investors Generally invest in fixed income securities like bonds, government securities etc. Less risky compared to equity & beams. Investments are not affected by fluctuation in market Limited opportunities of capital appreciation Here the change in NAV will be because of change in interest rates in country. The NAV may increase or not
21
The divisions under income are
MONEY MARKET / LIQUID FUND ? ? ? GILT FUND ? ? ?
Invest exclusively in Government securities Less Risky NAV fluctuate only on change in interest rate of company Aimed for easy Liquidity, capital preservation and moderate income. These schemes invest in safer short period in treasons bills etc. Fluctuations in retunes are much less compared to other funds.
TAX SAVING SCHEME ? ?
Tax benefit scheme provided by M.F. Companies Most investment will be in equities.
BALANCED FUNDS ? ? ? ? ?
Aimed to provide both growth and regular income to investor Funds will be invested both inequity and in fixed income Appropriate for investors looking or moderate growth. Invest normally as a 40-60% in equity income. They are less volatile.
22
CHAPTER III PROJECT DATA ANALYSIS AND INTERPRETATION
TABLE NO.1: EDUCATIONAL QUALIFICATION OF RESPONDENTS
Category
Below S.S.L.C S.S.L.C P.D.C U.G Degree P.G Degree Others
No. Respondents
50 50 39 121 30 10
Percentage
16.6% 16.6% 13% 40.3% 10% 3.4%
Total INFERENCE
300
100%
The above table shows that 16.6% of respondents are having education qualification below SSLC, 16.6% of respondents the SSLC qualified, 13% of respondents having P.D.C and 40.3% having degree and 10% of respondents belongs to other category like opinion IIT etc.
FIGURE NO.1: EDUCATIONAL QUALIFICATION OF RESPONDENTS
23
140 120 100 80 60 40 20 0
No. Respondents Percentage
Be lo w
Category
Below 5000 5001- 10000 10001- 15000 15001 – 20000 Above 20000
.L .C S. S .L .C P. D U .C .G D eg P. re G e D eg re e O th er s
TABLE NO 2: INCOME LEVEL OF RESPONDENTS No. Respondents
120 60 60 35 25
S. S
Percentage
40% 20 20 11.6 8.4
Total
300
100
INFERENCE
24
The above table shows that 40% of the respondent’s monthly incomes is below 5000, 20% having 5001 - 10000, 20% having the income of 10001 - 15000, 11.6% respondents, are earning 15001 - 20000 and 8.4% Respondents income is above 20000.
FIGURE NO 2: INCOME LEVEL OF RESPONDENTS
140 120 100 80 60 40 20 0 Below 5000 5001- 10000 10001- 15000 15001 – 20000 Above 20000 Percentage
No. Respondents
TABLE NO 3: TABLE SHOWING THE RESPONDENT WHO HAS ANY INVESTMENT
Category
No. of Respondents
Percentage
Yes
260
86.6%
No
40
13.4%
Total
300
100
INFERENCE
25
The above table shows that 86.6% Respondents have any investment and balance 13.4% who have no investment
FIGURE 3: THE RESPONDENT WHO HAS ANY INESTMENT
Yes
No
TABLE NO 3.1: RESPONDENTS INTREST TO INVEST THEIR MONEY WHO HAS NO
INVESTMENT
Category
No. of Respondents
Percentage
Interested
40
100%
Not interested
0
0
Total
40
100%
INFERENCE
26
The above table shows that out of 40 Respondents all the Respondents who have no investment are interested to invest their money.
FIGURE NO 3.1: RESPONDENTS INTREST TO INVEST THEIR MONEY WHO HAS NO
INVESTMENT
No. of Respondents
Percentage
TABLE NO 3.1.1: TABLE SHOWING THE PATTERN OF INVESTMETN THE RESPONDENT
ARE INTRESTED TO INVEST MONEY
Category
No. of Respondents
Percentage
Bank deposit
33
82.5%
Mutual Funds
2
5%
Share
5
12.5%
LIC
0
0
Other
0
0
27
Total
40
100%
INFERENCE
The above table shows that, out of 40 Respondents 82.5% Respondents are interested to invest is bank deposited 5% in mutual fund, 12.5% in share and no body interested in LIC and others.
FIGURE NO 3.1.1 THE PATTERN OF INVESTMETN THE RESPONDENT ARE INTRESTED
TO INVEST MONEY
45 40 35 30 25 20 15 10 5 0 Bank deposit Mutual Funds Share LIC Other Total
No. of Respondents
Percentage
28
TABLE 4: THE FACTORS CONSIDERING BEFORE AN INVESTMENT
Category
Experts opinion Market Trend Advertisement Consultant Past performance Family / Friends advise
No. of Respondents
130 20 200 260 260 150
Score
.12 .01 .19 .25 .25 .14
Total
? 1020
.100
INFERENCE
The above table shows that out of 1020 respondents’ 260 respondents considering consultant and post performance before an investment and 20 considering market trends.
FIGURE NO 4: THE FACTORS CONSIDERING BEFORE AN INVESTMENT
29
Family / Friends advise Past performance Consultant
Advertisement
Market Trend
Experts opinion
0
50
100
150
200 Score
250
300
No. of Respondents
30
TABLE NO 5: THE AWARENESS LEVEL OF MUTUAL FUNDS.
Category
No. Of Respondents
Percentage
Aware
90
30%
Not aware
210
70%
Total
300
100%
INFERENCE
The table shows that out of 300 Respondents 30% aware of mutual funds and 90% not aware of mutual fund.
FIGURE NO 5: THE AWARENESS LEVEL OF MUTUAL FUNDS.
250 200 150 100 50 0 Aw are No. Of Respondents Not aw are Percentage
31
TABLE NO 6: THE REASON FOR NON-AWARENESS ABOUT MUTUAL FUND
Reason
No. Of Respondents
Percentage
Not interested
10
4.8%
Lack of information
195
92.9%
Others (more Risk, non security etc.)
5
2.3%
Total
210
100%
INFERENCE
The above table shows that out of 210 Respondents, 4.8% of Respondents Reasons for non awareness is not interest and 92.9% is lack of information and 2.3% other reasons like, more Risk, Non security, etc.,
FIGURE NO 6: THE REASON FOR NON-AWARENESS ABOUT MUTUAL FUND
32
Not interested
Lack of information
Others (more Risk, non security etc.)
33
TABLE NO 7: TABLE SHOWING RESPONDENTS EXPECTATION
Category
Rank
Investor awareness programme
0.998
II
Service of executives
0.997
III
More advertisement
0.994
IV
Conduct personnel meeting
0.999
I
INFERENCE
The above table shows conduct personnel meeting got first rank and investor awareness programmes second rank and third rank goes to service of executives and fourth goes to More advertisement.
FIGURE NO 7: RESPONDENTS EXPECTATION
34
1 0.999 0.998 0.997 0.996 0.995 0.994 0.993 0.992 0.991 1
Category
Inves tor awareness programm e Service of executives More advertis ement Conduct personnel m eeting
TABLE NO 8: TABLE SHOWING THE INFORMATION ABOUT MUTUAL FUND.
Source
No. Of Respondents
Percentage
Advertisement
30
33.3%
Friends & relatives
21
23.3%
Agents of distributors
10
11.11%
Journals & Magazines
23
25.5%
Consultants
3
3.8%
Others
4
3.3%
Total
90
100%
INFERENCE
35
The above table shows that out of 90 Respondents who are having awareness about M.F 33.3% Respondents getting information about M.F from Advertisement, 23.3% from friends and relatives 11.11% from agents or distributions, 25.5% from journals & magazines, 3.3% from consultant. And 3.3% from other sources.
FIGURE NO 8: THE INFORMATION ABOUT MUTUAL FUND.
Advertisement Journals & Magazines
Friends & relatives Consultants
Agents of distributors Others
TABLE NO 9: THE ASSESSMENT OF THE PERFORMANCE OF MUTUAL FUND.
Category
No. Of Respondents
Percentage
Past performance
50
55.5%
NAV
20
22.2%
Market value
10
11.2%
36
Ratings
5
5.6%
Returns
5
5.6%
Total
90
100%
INFERENCE
The above table shows that out of 90 respondents, the majority of Respondents (55.5%) accessing the performance on the base of past performance and 22.2% on NAV, 22.2% on Market value 11.1% on Ratings and 44.4% Respondents accessing on the basis of Returns from the M.F. FIGURE NO 9: THE ASSESSMENT OF THE PERFORMANCE OF MUTUAL FUND.
Past performance
NAV
Market value
Ratings
Returns
TABLE NO 10: TABLE SHOWING THE FUND PREFFERED BY THE RESPONDENTS
Category
No. Of Respondents
Percentage
37
Equity
35
38.8%
Balanced fund
15
16.7%
Debt fund
20
22.3%
Gilt fund
2
2.2%
Index fund
0
0
Sector fund
18
20%
Total
90
100%
INFERENCE
The above table shows that, out of 90 respondents 38.8% Preferred equity fund, 16.7% preferred balance fund and 0% index fund and 20% preferred debt fund, 2.2% preferred gilt fund and 0% index fund and 20% preferred sector fund.
FIGURE NO 10: THE FUND PREFFERED BY THE RESPONDENTS
38
Sector f und Index f und Gilt f und Debt f und Balanced f und Equity 0 10 20 30 40 Percentage No. Of Respondents
TABLE NO 11: MUTUAL FUND COMPANY PREFERRED BY THE RESPONDENTS
No.
I II III IV V VI VII VIII
M.F. Company
Prudential ICICI UTI HSBC HDFC Tata M.F Reliance SBI Can bank
No. Of Respondents
25 21 12 10 8 8 3 2
Percentage
27.8% 23.5% 13.3% 11.2% 8.8% 8.8% 3.3% 2.2%
39
IX
Franklin Templeton
1
1.1%
TOTAL INFERENCE
90
100%
The table shows that the majority of the respondents (27.8%) prefer prudential ICICI and a few (1.1%) prefer Franklin Templeton.
FIGURE NO 11: MUTUAL FUND COMPANY PREFERRED BY THE RESPONDENTS
Prudential ICICI UTI HSBC HDFC Tata M.F Reliance SBI Can bank Franklin Templeton
TABLE NO 12: SATISFACTORY LEVEL OF RETURNS THE MUTUAL FUND
Category
No. Of Respondents
Percentage
Highly satisfied
6
6.6%
40
Satisfied
30
33.35
Neutral
50
55.6%
Dissatisfied
4
4.5
Total
90
100%
INFERENCE
The above table shows that, out of 90 respondents 6.6% highly satisfied, 33.3% satisfied 55.6% neutral and 4.5% dissatisfied.
FIGURE NO 12: SATISFACTORY LEVEL OF RETURNS THE MUTUAL FUND
60 50 40 30 20 10 0 Highly satisfied Satisfied Neutral Dissatisfied No. Of Respondents Percentage
TABLE NO 13: THE BASIS FOR THE SELECTION OF MUTUAL FUND
41
Category
No. Of Respondents
Percentage
Safety
42
46.7%
Liquidity
4
4.4%
Yield
30
33.3%
Diversification
14
15.6%
Total
90
100%
INFERENCE
The above table shows that out of 90 respondents 46.7% selecting M.F on the basis of safety 4.4% on the basis of liquidity, 33.3%on the basis of yield and 15.6% on the basis of diversification.
FIGURE NO 13: THE BASIS FOR THE SELECTION OF MUTUAL FUND
42
Diversif ication
Yield Percentage Liquidity No. Of Respondents
Saf ety 0 20 40 60
43
TABLE NO 14: THE SHOWING OF THE CHANNEL FOR MAKING INVESTMENT Channel No. Of Respondents Percentage
Broking company
61
67.7%
Banking forms
22
24.5%
Agents
7
7.8
Any other
0
0
Total
90
100%
INFERENCE
The above table shows that out of 90 respondents’ 67.7% respondents making their investment through broking firms, 24.5% through banking firms and 7.8% through agents.
FIGURE NO 14: THE SHOWING OF THE CHANNEL FOR MAKING INVESTMENT
44
Broking company Banking forms Agents Any other
TABLE NO 15: RESPONDENTS INTEREST TO ANY KIND OF INVESTOR AWARENESS
PROGRAMME ON FINANCIAL PRODUCT
Category
No. Of Respondents
Percentage
Mutual fund
50
16.6%
Insurance
123
41%
Stock market
127
42.4%
Any other
0
0
Total
300
100%
INFERENCE
45
The above table shows that out of 300 respondents 16.6% respondents interested to mutual fund awareness programme, 41% insurance and 42.4% stock market.
FIGURE NO 15: RESPONDENTS INTEREST TO ANY KIND OF INVESTOR AWARENESS
PROGRAMME ON FINANCIAL PRODUCT
Mutual fund Insurance Stock market Any other
3.2 CHI-SQUARE TEST 1. THE EDUCATIONAL QUALIFICATION AND THE PATTERN OF INVESTMENT
46
X2 –test for income and pattern of investment
NULL HYPOTHESIS (H0)
The educational qualification and pattern of investment are not related
ALTERNATIVE HYPOTHESIS (H1)
The educational qualification and pattern of investment are related
Educational qualification
U.G Degree SSLC
No. Of Respondents
121 50
Category
Bank deposit Mutual Fund
No. Of Respondents
200 50
Observed frequency related educational qualification and pattern of investment 200 50 250 Calculation of expected frequency E(x11) = E(x12) = E(x21) = E(x22) = (321X250)/421 (321X171)/421 (100X250)/421 (100X171)/421 = 190.61 = 130.38 = 59.38 = 40.61 121 50 171 321 100 421
X2 –TEST FOR INCOME AND PATTERN OF INVESTMENT S.no
1 2
0
200 121
E
190.61 130.38
(o-e)
9.4 -9.38
(o-e)2
88.36 87.98
O - E2 E
0.46 0.67
47
3 4
50 50
59.38 40.61
-9.38 9.39
87.98 88.17
1.48 2.17 4.78
Calculated value of X2 Level of significance = 5% Degree of freedom
= 4.78
= (r-1) x (l-1) = 2-1 x 2-1 =1x1 =1
Table value of X2
=
3.841
Calculated value of X2 is greater than table value of X2 Hence H1 is accepted and H0 is rejected So there is a relation between educational qualification and pattern of investment.
2. THE PATTERN OF INVESTMENT
X2 –test for income and pattern of investment
NULL HYPOTHESIS (H0)
The income and pattern of investment are not related
ALTERNATIVE HYPOTHESIS (H1)
The income and pattern of investment are related
Income
Below 5000 5001-10000
No. Of Respondents
120 60
48
Category
Bank deposit Mutual Fund
No. Of Respondents
200 50
Observed frequency related income and pattern of investment 120 60 180 Calculation of expected frequency E(x11) =
320 x 180 430 320 x 250 430
200 50 250
320 110 430
= 133.95
E(x12) =
= 186.05
E(x21) =
110 x 180 430
110 x 250 430
= 46.05
E(x22) =
= 63.95
X2 –TEST FOR INCOME AND PATTERN OF INVESTMENT S.no
1 2 3 4
0
120 200 60 50
E
133.95 186.05 46.05 63.95
(o-e)
-13.95 13.95 13.95 -13.95
(o-e)
2
O - E2 E
1.45 1.05 4.23 3.05 9.79
194.60 194.60 104.60 194.60
Calculated value of X2 Level of significance = 5% Degree of freedom
= 9.79
= (r-1) x (l-1)
49
= 2-1 x 2-1 =1x1 =1 Table value of X2 = 3.841
Calculated value of X2 is greater than table value of X2 Hence H1 is accepted and H0 is rejected So there is a relation between income and pattern of investment.
3. THE AWARENESS LEVEL OF MUTUAL FUNDS AND THE PATTERN OF INVESTMENT
X2 –test for income and pattern of investment
NULL HYPOTHESIS (H0)
The awareness level of mutual funds and pattern of investment are not related
ALTERNATIVE HYPOTHESIS (H1)
The awareness level of mutual funds and pattern of investment are related
Awareness
Aware Not Aware
No. Of Respondents
210 90
50
Category
Bank deposit Mutual Fund
No. Of Respondents
200 50
Observed frequency related awareness level of mutual funds and pattern of investment 210 90 300 Calculation of expected frequency E(x11) = E(x12) = E(x21) = E(x22) = (410X300)/550 (410X250)/550 (410X300)/550 (410X300)/550 = 223.63 = 186.36 = 76.63 =63.63 200 50 250 410 140 550
X2 –TEST FOR INCOME AND PATTERN OF INVESTMENT (o-e)2
185.77 186.04 186.04 185.77
S.no
1 2 3 4
0
210 200 90 50
E
223.63 186.36 76.36 63.63
(o-e)
-13.63 13.64 13.64 -13.63
O - E2 E
0.83 0.99 2.43 2.91 4.78
Calculated value of X2 Level of significance = 5% Degree of freedom
= 7.16
= (r-1) x (l-1) = 2-1 x 2-1 =1x1 =1
Table value of X2
=
3.841
Calculated value of X2 is greater than table value of X2
51
Hence H1 is accepted and H0 is rejected So there is a relation between awareness level of mutual funds and pattern of investment.
CHAPTER IV 4.1 FINDINGS ? ? ? ? ?
Majority of respondent have any investment 100% of respondents who are interested to invest the money. Majority of respondents are to invest their money is bank deposit. It is found that majority of the respondents pattern of investment is bank deposit. Majority of the respondent considering consultant and past performance for their investment.
? ? ? ? ? ? ? ? ?
It is found that majority of respondents are not aware of mutual fund. The majority reason for non-awareness programme and more advertisement. The majority of respondent getting information from mutual fund from advertisement. Majority of the respondent assessing the performance on the basis of past performance. A good majority of respondents prefer equity fund. Prudential ICICI is the most choosable M.F. Majority of respondents are not satisfied with the present level returns from M.F. Majority of respondents selected the fund on the basis of safety. It is clear that majority of the respondent’s select broking company for making investments.
?
Majority of respondents are interested to know about stock market.
52
4.2 SUGGESTIONS
1. 2. 3. The broking firm should provide more service to the consumers for more investment Conduct more awareness programme on different financial product. It is advisable to choose TV and out door Medias, since they are the most out standing media for advertisement. 4. 5. 6. Introduce new attractive schemes Introduce more tax saving schemes. More dividends will attract more customers.
CHAPTER V 5.1 CONCLUSIONS
Majority of the respondents are not aware of mutual funds, so By conducting more consumer awareness creating programmes the company can give more information about the mutual funds and the mutual funds company .This study will definitely help the company to improve their service and market share if they adopt the strategy which I suggested.
ANNEXURES QUESTIONNAIRE
A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE.
53
1. Name 2. Address
: :
3. Education :
F F o o o
Below S.S.L.C S.S.L.C Degree PG Technical Studies Below 5000 5001-10000 10001-15000 15001-20000 Above 20000
4. Monthly Income:
F F F o o
5. Do you currently have any investment?
F
Yes
FNo
a) If No, are you interest to invest money
F
Yes
FNo
b) Mark your choice choice of investment
F Bank Deposit F M.F
F LIC F Share F
Others
c) If you have investment, then what type of investment do you process pattern of investment
F Bank Deposit F Shares F LIC
F M.F F
Others
6. What are the important Factors Considering before an investment?
F F F
Expert’s Opinion Advertisement Past Performance
F Market trend F Consultant F Family / Friends Advise
7. Are you aware of mutual fund?
F
Yes
F
No
54
8. What Reason do you posses?
F F
Not interested Other reasons
F
lack of information
9. Are you interested in knowing about mutual funds?
F
Yes
F
No
If yes, what you are expecting Investor awareness programme Service of executives More advertisement perspectives Conduct personnel meeting
F Yes F Yes F Yes F Yes F No F No
F No
F No
10. If you are aware, specify your source of information about Mutual Fund
F Advertisement
F Friends& Relatives
FAgents or Distributors
F Journals & Magazines
F Consultant F Others
11. In what ways do you assess the performance of mutual fund?
F Past performance F NAV F Ratings F Returns
F Market Value
12. Which type of fund do you prefer mostly?
F Equity fund
F Balance Fund
F Debt Fund
F GILT Fund F Index Fund F Sector fund
13. Which of the following M.F Company do you prefer mostly for investment?
F Franklin Templeton F Can bank F HDFC
F SBI F prudential ICICI F UTI
F Tata M.F F HSBC F Reliance
14. What is your level of satisfaction towards the current level of the returns?
F Highly Satisfied F Dissatisfied
F Satisfied
F Neutral
15. On what basis you have selected the allocation of fund
F Safety
F Liquidity
F Yield
F Diversification
16. Specify your usual investment channel
F Broking Company F Banking Firms
F Agents
55
F Any other
17. Are you interested in any kind of investor awareness programmes on financial product?
F M.F
F Insurance
F Stock Market
F Any other
18. Do you have any complaint regarding present mutual fund investment?
BIBLIOGRAPHY Books referred: • •
Mutual funds in India
by Sathak F Mc Graw hill publications fourth edition by kothari , Wishwa Prakesh Publication,
Research Methodology,Methods & Tecniques
NewDelhi ,1996
Magazines: • • • Business Today - monthly magazine March and April 2006 Capital market - monthly magazines March and April 2006 Integrated share news - a fortnight magazine published by integrated enterprises (India)Ltd.
Periodicals: • • The Economic Times from Feb 20th to April 30th Business Line from Feb 20th to April 30th
Websites: • • • • •
www.iepindia.com www.indiainfoline.com www.karvy.com www.sharekhan.com www.amfi.com
56
doc_856017134.pdf
Awareness is the state or ability to perceive, to feel, or to be conscious of events, objects, or sensory patterns.
A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION OF MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE. By T.JAYA VEERA PANDIYAN (Reg. No: 35104124) of S.R.M ENGINEERING COLLEGE PROJECT REPORT Submitted to S.R.M SCHOOL OF MANAGEMENT In partial fulfillment of the requirements for the award of the degree Of MASTER OF BUSINESS ADMINISTRATION in SRM INSTITUTE OF SCIENCE AND TECHNOLOGY (Deemed University) S.R.M Nagar Kattankulathur-603203 MAY 2006
BONAFIDE CERTIFICATE
Certified that this project report titled “A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION OF MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE” is an original work done by Mr.T.JAYA VEERA PANDIYAN (Reg.no 35104124) of fourth semester, SRM school of Management, SRM Institute of Science and Technology, (Deemed University) Kattankulathur, during the academic year 2006, who carried out the research under my supervision. Certified further ,that to the best of my knowledge the work reported herein does not form part of any other project report or dissertation on the basis of which a degree or award was conferred on an earlier occasion on this or any other certificate.
Faculty Guide
HOD/Dean
Internal Examiner
External Examiner
PLACE: KATTANKULATHUR DAT E :
2
DECLARATION
I ,T.JAYA VEERA PANDIYAN ,student of SRM school of Management, SRM Institute of Science and Technology, (Deemed University) Kattankulathur ,ad here by declare that this project report titled “A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION OF MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE” is an original work done by me and submitted to the SRM school of Management for the award of Master Degree in Business Administration .I further declare that any part this project itself has not been submitted elsewhere for award of any degree .
PLACE: KATTANKULATHUR DATE :
3
ACKNOWLEDGEMENT I thank my parents, who have constantly encouraged, and continuously supported for my entire academic study.
I express my sincere gratitude to Dr.Mrs.JAYSHREE SURESH B.A.,MBA.,Ph.D. Head of the department, SRM School of Management for giving me the opportunity to develop this project.
I express my sincere thanks to our guide Mr. P.SARAVANAN
Faculty
guide, SRM School of Management for his valuable guidance for the completion of this project.
I am greatly privilege to express Mr. R.SUNDAR RAMAN, Regional Area Manager Integrated Enterprises (India) Limited, Coimbatore region for allowing me to do Project in the esteemed organization and his encouragement and guidance for the completion of this project.
I express my sincere thanks to all my friends and family members for their constant support, blessings and co-operation, which they gave me at all steps of this project work.
4
CONTENTS LIST OF TABLES
S.NO CHAPTER 1 1.1 1.2 1.3 1.4 1.5 1.6 1.7 Introduction Review of literature
PARTICULARS
PAGE.NO
1 2 4 5 6 7 10
Objectives of the study Scope of study Statement of problem Research methodology Limitations of project CHAPTER 2
2.1 2.2
Company profile Industry profile CHAPTER 3
11 15
3.1 3.2
Project data analysis and interpretation Chi-square test CHAPTER 4
21 55
4.1 4.2
Findings Suggestions CHAPTER 5
61 62
5.1
Conclusion ANNEXURES Questionnaire Bibliography
63
64 65
S.NO 1 2
PARTICULARS Educational qualification of respondents Income level of respondents
PAGE.NO 21 23
5
3 3.1
Respondent who has any investment Respondents interest to invest their money who have no investment
25 27
3.1.1
Pattern of investment the respondent are interested to invest money
29
4 5 6 7 8 9 10 11 12 13 14 15
Factors considering before an investment Awareness level of mutual funds Reason for non-awareness about mutual fund Respondents expectation Information about mutual fund. Assessment of the performance of mutual fund. Fund preferred by the respondents Mutual fund company preferred by the respondents Satisfactory level of returns the mutual fund Basis for the selection of mutual fund Channel for making investment Respondents interest to any kind of investor awareness programme on financial product
31 33 35 37 39 41 43 45 47 49 51 53
LIST OF CHARTS
S.NO 1 2 3
PARTICULARS Educational qualification of respondents Income level of respondents Respondent who has any investment
PAGE.NO 22 24 26
6
3.1 3.1.1 4 5 6 7 8 9 10 11 12 13 14 15
Respondents interest to invest their money who have no investment Pattern of investment the respondent are interested to invest money Factors considering before an investment Awareness level of mutual funds Reason for non-awareness about mutual fund Respondents expectation Information about mutual fund. Assessment of the performance of mutual fund. Fund preferred by the respondents Mutual fund company preferred by the respondents Satisfactory level of returns the mutual fund Basis for the selection of mutual fund Channel for making investment Respondents interest to any kind of investor awareness programme on financial product
28 30 32 34 36 38 40 42 44 46 48 50 52 54
CHAPTER I 1.1 INTRODUCTION The decade of the nineties brought India to new era of liberalization and globalization .these has been a radical change in the economy policy in India, from a state controlled to market economy, centralized planning and state control which had outlived their utility in the wake of changes in the international economic environment, made way for structural adjustment programs and economic liberalization. The objective of the reforms here to remove the entry barriers for domestic private sector institutions and FIIs, increase transparency in operations of financial intermediaries and promote an environment of healthy competition. The market regulations have been empowered to
7
play their role as watching and supervisory structures have been strengthened to prevent market failures and protect the interests of the investors The Indian citizen has a lot of avenues to invest his funds. a prudent investor can earn a high return by investing his funds in various areas like company deposits,debentures,shares,mutual funds etc. the Indian is looking at new avenues for earning decent return. However the recent scandal has dampened investors’ confidence. He is looking away from the equity, mutual funds etc., which is very evident from the ever lowering stock market prices and inconsistent performance mutual funds. The investors looking for more safe avenues like bank deposits and debentures to park his money. To bring back investors confidence various regulatory bodies like SEBI ,RBI etc, has brought about sweeping reforms .it remains to be seen how much the measures would boost the confidence of the investor . Indian capital and the money market will be needed to play a vital role towards integrating India with global economy. So it is absolutely essential that measures are taken to revive the financial market 1.2 REVIEW OF LITERATURE A STUDY ON INVESTOR PERCEPTION ON MUTUAL FUND SCHEMES FOR KARVY CONSULTANTS LTD., CHENNAI by Mr. P. PAVAN KUMAR on April 14th 2000 for University of Madras . This project deals with the investor perception on mutual funds .to point out the salient features of different schemes in India, gives the overall view of mutual funds in India and the awareness of Karvy Consultants Limited among the investors in Chennai. He found out mostly the investors preferred fixed income investments like bank deposits and company deposits rather than other investment avenues .over 50 percentage of the respondents are
8
aware of mutual funds but some of the new concepts like opportunity funds ,IT funds ,Gilt funds ,money market funds are still new to them. Some of the investors have lost their faith in mutual funds industry and also in operations of the stock market with recent sprits. Most of the respondents are not willing to take risk in investing in mutual funds. Over 50 percentage of the respondents are approaching agents for investments in mutual funds and other investment avenues. Majority of the respondents are approaching Karvy Consultants Ltd., for their investments in mutual funds. The respondents are satisfied with the services rendered by Karvy Consultants Ltd., regarding their helping with guidance and advice, supplying and collecting applications forms but also dissatisfied with giving information about the new schemes and sorting out problems or complaints with mutual funds. Finally he suggested that the details of the schemes, their advantages and introduction of new schemes should be explained to them and also the safety schemes should be stressed .To create awareness about the company, the services rendering and about the mutual funds, publicity campaigns should be conducted. Finally ,the investors are very well satisfied with Karvy Consultants Ltd.,regarding and supplying and collecting the applications forms ,guidance and advices but they are dissatisfied with pooling of knowledge of new schemes and sorting out the complaints and problems with the mutual funds . If they do these services better, the satisfaction of the investors will be high.
1.3 OBJECTIVES OF THE STUDY
PRIMARY OBJECTIVE:
9
The study is aimed to find out the consumer awareness level of mutual funds.
SECONDARY OBJECTIVE:
1. To study about the investments level of respondents.
2. To find out the satisfactory level of mutual fund.
1.4 SCOPE OF THE STUDY The study is confined to R.S Puram and Saibaba colony, Peelamedu ,Coimbatore areas only .the nature and scope of the study covering the investors perception and preferences regarding various mutual fund schemes available in India ,including of public ,private ,NBFC,UTI sectors. 1.5 STATEMENT OF PROBLEM Finance is the life blood of any business firm and also needed for the individuals .For getting smart returns ,the individuals are investing their valuable money in various investment avenues .for this ,the individual investors are generally approaching the agents for investing their money in profitable investment avenues and also for getting other related services from them .Their investment is based on these awareness of the mutual funds and products so ,the present study concentrates on” General public awareness and customer satisfaction of mutual funds – in focus with integrated enterprises (India) limited Coimbatore”.
1.6 RESEARCH METHODOLOGY
1.5.1SOURCE OF DATA COLLECTION This study is based on the primary as well as secondary data. The research adopted major techniques of data collection for eliciting data i.e., questionnaire, and schedule.
10
(A) PRIMARY DATA Primary data regarding this study was collected through the direct and indirect methods of data collection. questionnaire. (B) SECONDARY DATA These are data’s already exist in records secondary data was collected from various, journals, books and may a gins. 1.5.2 SAMPLING The required data in personnel research may be obtained by sampling method. The study utilizes, which comes under non-probability sampling. A total sample size taken for this study is 300. 1.5.3 QUOTA SAMPLING It is a special form of stratified sampling. The number to be selected from each stratum, which is known as quota, is selected in advance; here also the universe is divided in the strata on the basis of charms of population. The sample units are chosen so that each stomata is represented to be impotents in the population in quota sampling the units are choose on non- random manner while stratified sampling they are choose on random basis. Thus in the selection process each number by universe does not have a non – chances of being choose. 1.5.4 DATA DESIGN The respondents those who are involved in the study This is obtained directly from the peoples of thermally with the help of
Professionals
Business men
11
Farmers
1.5.5 TOOLS FOR DATA COLLECTION The Researcher obtained the response from the respondents by using structured and openended questionnaire. 1.5.6 ABOUT QUESTIONNAIRE The collection of data for the study was done by direct interview with 300 people. The average time taken for each interview was seven minutes 1.5.7 DATA PROCESSING AND ANALYZING INSTRUMENTS After the information has been collected it needs to be interpreted. This is very difficult task and requires high degree of skill judgment and objectivity. In the absence of these, there is every lively-hood of the data being misused to prove things that are not at all true. 1.5.8 PERCENTAGE ANALYSIS The data collected has been tabulated and the percentage of respondents for each factor has been calculated using tally mark operation data has been converted is to quantitative figure. The percentage of analysis has been done to draw the conclusion. Percentage refer is the special kind of ration. Percentages are used in making comparison between two or more series of data. Percentages can also used to compare the relative terms, the distribution of two or more series of data. The easy and simplicity of calculating the general understanding of its purpose and the universal applicability of the present static have made it most widely and standardized tool in researches. Since the percentage reduced everything to a common base and there by allow meaning full comparison to be made with the data the percentage analysis is conducted by dividing the number of respondents with. Population of sample. 1.5.9 CHI-SQUARE TEST
12
The chi-square test is an important test amongst the several tests of significant developed by statisticians. Chi-square symbolically written as X2. is a statistical measure used is the context of sampling analysis for comparing a variance to a theoretical variance. The test is in fact a technique through the use of which it is possible for all researchers to 1. 2. 3. Test the goodness of fit Test the significance of association between two attributes Test the homogeneity or the significant of population variance.
1.5.10 PERCENTAGE ANALYSIS FORMULA
Percentage =
Number of respondents X100 Total Number Population
RANK CORRELATION =
1-
6? D2 n( n 2 - 1)
CHI-SQUARE = Where, O = Observed value ,
( O E )2 E
E = Expected value
Table value of Chi-Square at 5% level of significant with 1 degree of freedom = 3.841
1.7 LIMITATIONS
?
The study was limited to the Respondents of the respondents of Coimbatore. So the researcher could only accommodate with respondents furnished.
?
The area of research was very wide and to lack of sufficient time and money, the time required to conduct a detailed research was limited
?
Respondent’s attitude may change while on collecting data.
13
?
Some times the obtained data is not corrected from respondents.
CHAPTER II 2.1COMPANY PROFILE
We professionally managed public Limited started over the operations on April 15th 1974 at Kumbakonam; founded Mr. P. Vaidyanathan (chairman) started it as private Limited and later it was renewed as a pubic Limited Company .we are Category 1 Merchant Banker approved by SEBI, Category 1 Registrar & STA approved by SEBI and a well knowned Depositary Participant through NSDL and the customers found as reliable through our standards towards the operations and it enhanced our features to goodwill.
SERVICE SPECTRUM • • • •
More than 100 Branches across the country Serving over 5 Lac Investor Families More than 2 Lac Demat Accounts A trusted household-name in Investment Counseling
SALIENT FEATURES •
Investment Advisory Services Marketing Corporate Fixed Deposits, Debentures, Public Sector Bonds, Mutual Funds, UTI and Public Issues.
• • •
Depository Services Opening of Depository Accounts, Demat and other related activities Insurance Services Marketing Life, Health & General Insurance Schemes Stock Broking Services Facilitating Buying & Selling of Securities through NSE
OUR QUALITY POLICY:
To build and sustain an organisation where quality is the hallmark of every operation with absolute integrity to customers.
14
GUIDING PRINCIPLES OF QUALITY: • • • • •
Customers is our focus-quality means meeting customers requirements with excellence Staff commitment and motivation to form the way of life Quality is build into the process and out come through prevention rather than correction The level of quality is measured by the cost of non conformance quality improvement is the continuous process
CORPORATE MOTTO
Building Trust - Building Confidence - Building Relationship through Absolute Integrity & Transparency, because Integrity is in our soul!
CUSTOMER’S PERSPECTIVE: • Convenience: Offers invaluable convenience –single some solution for all investment needs
and range of financial services
•
Proximity
national wide network)Time and money saved on reaching the applications andcheques to various companies
•
Investors relation centre:
Acting as a vital links and binds corporates and investors
complaints grievances redressal faster through national wide computer networked branches
•
Up-to-date and unbased information: Provides up to date information on the investment on
the investment scene and opportunities through “integrated share news” a complementary update.
•
Value added beneifits: Enriching the value of the customers by offering innovative services
in tune with the times.
THE BOARD OF DIRECTORS
The Board of Directors of the company are
• •
Mr. P. Vaidyanathan - Chairman Mr. M. Jayaraman - Whole time Director
15
• •
Mr. S. Sundar - Whole time Director Mr. R. Sridhar – Director
OUR ASSOCIATION •
We are associated with National Securities Depository Limited, (NSDL), the Largest Depository in India for carrying out the depository service. We are registered Depository Participant and serving over 2,00,000 clients. We are the Depository registrar for more than 80 Corporate Clients.
•
We are also associated with Central Depository Services Limited (CDSL). We are doing Depository Services and registry Services with over 80 major Corporate Clients.
OUR RANKING • • • • •
Largest Investment Consultant to individuals Largest Service Provider to investors to Corporates Largest fund mobilizers for Corporates Largest Depository Participant Largest Network of branches
OUR STRENGTH • •
Serving nearly half a million investor's families. 1000 Staff strength comprising Marketing, back office Processing, Front Desk Counselors, Software and administrative team.
• •
Branches connected through Virtual Private Network.(VPN). Deploying latest software technology for on-line processing.
BUSINESS STATISTICS
16
Retail Investing Clients Depository Clients Corporate Clients Personal Financial Schemes Nature Retail Investments Depository Transactions Back Office Processing
5,00,000 2,10,000 101 2,000
Business Volume
INR 1 Billion 1.1 Million 0.5 Million INR 635 Millions
Revenue (INR)
100 Million 37 Million 14 Million 6 Million
Transactions Personal Financial Schemes
2.2 INDUSTRY PROFILE MUTUAL FUNDS
Mechanism of pooling the resources by issuing the unit to investors and investing funds in securities. These investments are later spread across different industries and sectors thus reducing the risk. In accordance with portion of money invested by investors mutual fund issues units. Investors of mutual fund are known as unit holders. Finally the profit of loss will be shared among investor. 1964 – UTI Unit Trust of India started in view of entering in investment options etc. Till 1986 – monopoly in this field.
17
From 1986 – 1993 SBI, can bank entered in the field of mutual funds investments followed by GIC, LIC, etc., In 1992, the securities and exchange Board of India (SEBI) was format to prefect the investor funds Development of mutual funds and to regulate the securities market. From one single player in the year 1985 it grew up to 8 in the year 1993. In 1993 private members were allowed to maintain funds, which result in entry of international players in this field thus JP. Morgan, Morgan Stanley etc. Companies came in to picture. Later the benefit in taxation leads to the enlargement of investments in mutual fund Business.
MUTUAL FUND COMPANIES JRG DEALS WITH
1. Franklin Templeton 2. ICICI prudential 3. HSBC 4. HDFC 5. Can Bank 6. UTI 7. SBI 8. Reliance 9. Tata 10. Sahara 11. Fidelity 12. Birla sun life 13. ING Vysa
MAJOR UNIT OF A MUTUAL FUND
18
It should have a trust, a sponsor a fund manager (Access management company – AMC) in the below companies any one can start a mutual fund registering of SEBI with its objectives and its offer document. The sponsor will look after the expense of the mutual fund where as the fund manager (AMC) is the alacrity to study the market and invest the amount from investors in different industries and sectors. In basis of market value the profit and loss can be accessed which in turn results in more deposits and withdrawals.
N.A.V. NET ACCESS VALUE
NAV for a particular scheme is the market value of a particular day. The total market value divided by total units gives NAV of a unit.
DIFFERENT TYPES OF MUTUAL FUNDS SCHEMES First Division Based On Maturity
Open-ended scheme / fund and closed ended scheme / fund.
OPEN ENDED SCHEME ? ? ? ? ?
The one that is available for Subscription and respondents pm continuous basis. No fixed maturity period. Investors can buy and self-units at NAV related prices on a daily basis. The important feature is liquidity Disclose NAV on daily basis.
CLOSED ENDED SCHEME ?
It has a stipulated maturity period.
19
?
The fund is open for sub scrimption only for a specified period at the time of scheme at the time of initial public issue and there after they can purchase or sell units of the scheme on the stock exchange where the units are listed.
?
Some closed – ended funds provide exist open by selling the units back to the mutual fund by derided repurchase at NAV related price.
? ?
Two exist option either to repurchase unit or through listing at stock exchange. Disclose NAV in weekly basis.
5.2 Schemes According To Investment Objective
Mainly classified as
? ? ? ?
Growth /equity oriented scheme Income/debt oriented scheme Balanced fund Money market/ liquid fund.
20
GROWTH LIQUIDLY ORIENTED FUND
The aim of growth fund is to provide capital appreciation or a long – term period.
? ? ? ?
Normally invest in equities Highly risk Give various options to investor’s like dividend capital appreciation etc. It’s good for long-term investors.
Further Classification Can Be ? ? ?
Diversified – allocate fund in different sector – Risky Sector – invest in a particular sector – very risky Index fund – as per weight age in sensex.
INCOME / DEBT ORIENTED SCHEME ? ? ? ? ? ? ?
Aimed to give regular and steady income to investors Generally invest in fixed income securities like bonds, government securities etc. Less risky compared to equity & beams. Investments are not affected by fluctuation in market Limited opportunities of capital appreciation Here the change in NAV will be because of change in interest rates in country. The NAV may increase or not
21
The divisions under income are
MONEY MARKET / LIQUID FUND ? ? ? GILT FUND ? ? ?
Invest exclusively in Government securities Less Risky NAV fluctuate only on change in interest rate of company Aimed for easy Liquidity, capital preservation and moderate income. These schemes invest in safer short period in treasons bills etc. Fluctuations in retunes are much less compared to other funds.
TAX SAVING SCHEME ? ?
Tax benefit scheme provided by M.F. Companies Most investment will be in equities.
BALANCED FUNDS ? ? ? ? ?
Aimed to provide both growth and regular income to investor Funds will be invested both inequity and in fixed income Appropriate for investors looking or moderate growth. Invest normally as a 40-60% in equity income. They are less volatile.
22
CHAPTER III PROJECT DATA ANALYSIS AND INTERPRETATION
TABLE NO.1: EDUCATIONAL QUALIFICATION OF RESPONDENTS
Category
Below S.S.L.C S.S.L.C P.D.C U.G Degree P.G Degree Others
No. Respondents
50 50 39 121 30 10
Percentage
16.6% 16.6% 13% 40.3% 10% 3.4%
Total INFERENCE
300
100%
The above table shows that 16.6% of respondents are having education qualification below SSLC, 16.6% of respondents the SSLC qualified, 13% of respondents having P.D.C and 40.3% having degree and 10% of respondents belongs to other category like opinion IIT etc.
FIGURE NO.1: EDUCATIONAL QUALIFICATION OF RESPONDENTS
23
140 120 100 80 60 40 20 0
No. Respondents Percentage
Be lo w
Category
Below 5000 5001- 10000 10001- 15000 15001 – 20000 Above 20000
.L .C S. S .L .C P. D U .C .G D eg P. re G e D eg re e O th er s
TABLE NO 2: INCOME LEVEL OF RESPONDENTS No. Respondents
120 60 60 35 25
S. S
Percentage
40% 20 20 11.6 8.4
Total
300
100
INFERENCE
24
The above table shows that 40% of the respondent’s monthly incomes is below 5000, 20% having 5001 - 10000, 20% having the income of 10001 - 15000, 11.6% respondents, are earning 15001 - 20000 and 8.4% Respondents income is above 20000.
FIGURE NO 2: INCOME LEVEL OF RESPONDENTS
140 120 100 80 60 40 20 0 Below 5000 5001- 10000 10001- 15000 15001 – 20000 Above 20000 Percentage
No. Respondents
TABLE NO 3: TABLE SHOWING THE RESPONDENT WHO HAS ANY INVESTMENT
Category
No. of Respondents
Percentage
Yes
260
86.6%
No
40
13.4%
Total
300
100
INFERENCE
25
The above table shows that 86.6% Respondents have any investment and balance 13.4% who have no investment
FIGURE 3: THE RESPONDENT WHO HAS ANY INESTMENT
Yes
No
TABLE NO 3.1: RESPONDENTS INTREST TO INVEST THEIR MONEY WHO HAS NO
INVESTMENT
Category
No. of Respondents
Percentage
Interested
40
100%
Not interested
0
0
Total
40
100%
INFERENCE
26
The above table shows that out of 40 Respondents all the Respondents who have no investment are interested to invest their money.
FIGURE NO 3.1: RESPONDENTS INTREST TO INVEST THEIR MONEY WHO HAS NO
INVESTMENT
No. of Respondents
Percentage
TABLE NO 3.1.1: TABLE SHOWING THE PATTERN OF INVESTMETN THE RESPONDENT
ARE INTRESTED TO INVEST MONEY
Category
No. of Respondents
Percentage
Bank deposit
33
82.5%
Mutual Funds
2
5%
Share
5
12.5%
LIC
0
0
Other
0
0
27
Total
40
100%
INFERENCE
The above table shows that, out of 40 Respondents 82.5% Respondents are interested to invest is bank deposited 5% in mutual fund, 12.5% in share and no body interested in LIC and others.
FIGURE NO 3.1.1 THE PATTERN OF INVESTMETN THE RESPONDENT ARE INTRESTED
TO INVEST MONEY
45 40 35 30 25 20 15 10 5 0 Bank deposit Mutual Funds Share LIC Other Total
No. of Respondents
Percentage
28
TABLE 4: THE FACTORS CONSIDERING BEFORE AN INVESTMENT
Category
Experts opinion Market Trend Advertisement Consultant Past performance Family / Friends advise
No. of Respondents
130 20 200 260 260 150
Score
.12 .01 .19 .25 .25 .14
Total
? 1020
.100
INFERENCE
The above table shows that out of 1020 respondents’ 260 respondents considering consultant and post performance before an investment and 20 considering market trends.
FIGURE NO 4: THE FACTORS CONSIDERING BEFORE AN INVESTMENT
29
Family / Friends advise Past performance Consultant
Advertisement
Market Trend
Experts opinion
0
50
100
150
200 Score
250
300
No. of Respondents
30
TABLE NO 5: THE AWARENESS LEVEL OF MUTUAL FUNDS.
Category
No. Of Respondents
Percentage
Aware
90
30%
Not aware
210
70%
Total
300
100%
INFERENCE
The table shows that out of 300 Respondents 30% aware of mutual funds and 90% not aware of mutual fund.
FIGURE NO 5: THE AWARENESS LEVEL OF MUTUAL FUNDS.
250 200 150 100 50 0 Aw are No. Of Respondents Not aw are Percentage
31
TABLE NO 6: THE REASON FOR NON-AWARENESS ABOUT MUTUAL FUND
Reason
No. Of Respondents
Percentage
Not interested
10
4.8%
Lack of information
195
92.9%
Others (more Risk, non security etc.)
5
2.3%
Total
210
100%
INFERENCE
The above table shows that out of 210 Respondents, 4.8% of Respondents Reasons for non awareness is not interest and 92.9% is lack of information and 2.3% other reasons like, more Risk, Non security, etc.,
FIGURE NO 6: THE REASON FOR NON-AWARENESS ABOUT MUTUAL FUND
32
Not interested
Lack of information
Others (more Risk, non security etc.)
33
TABLE NO 7: TABLE SHOWING RESPONDENTS EXPECTATION
Category
Rank
Investor awareness programme
0.998
II
Service of executives
0.997
III
More advertisement
0.994
IV
Conduct personnel meeting
0.999
I
INFERENCE
The above table shows conduct personnel meeting got first rank and investor awareness programmes second rank and third rank goes to service of executives and fourth goes to More advertisement.
FIGURE NO 7: RESPONDENTS EXPECTATION
34
1 0.999 0.998 0.997 0.996 0.995 0.994 0.993 0.992 0.991 1
Category
Inves tor awareness programm e Service of executives More advertis ement Conduct personnel m eeting
TABLE NO 8: TABLE SHOWING THE INFORMATION ABOUT MUTUAL FUND.
Source
No. Of Respondents
Percentage
Advertisement
30
33.3%
Friends & relatives
21
23.3%
Agents of distributors
10
11.11%
Journals & Magazines
23
25.5%
Consultants
3
3.8%
Others
4
3.3%
Total
90
100%
INFERENCE
35
The above table shows that out of 90 Respondents who are having awareness about M.F 33.3% Respondents getting information about M.F from Advertisement, 23.3% from friends and relatives 11.11% from agents or distributions, 25.5% from journals & magazines, 3.3% from consultant. And 3.3% from other sources.
FIGURE NO 8: THE INFORMATION ABOUT MUTUAL FUND.
Advertisement Journals & Magazines
Friends & relatives Consultants
Agents of distributors Others
TABLE NO 9: THE ASSESSMENT OF THE PERFORMANCE OF MUTUAL FUND.
Category
No. Of Respondents
Percentage
Past performance
50
55.5%
NAV
20
22.2%
Market value
10
11.2%
36
Ratings
5
5.6%
Returns
5
5.6%
Total
90
100%
INFERENCE
The above table shows that out of 90 respondents, the majority of Respondents (55.5%) accessing the performance on the base of past performance and 22.2% on NAV, 22.2% on Market value 11.1% on Ratings and 44.4% Respondents accessing on the basis of Returns from the M.F. FIGURE NO 9: THE ASSESSMENT OF THE PERFORMANCE OF MUTUAL FUND.
Past performance
NAV
Market value
Ratings
Returns
TABLE NO 10: TABLE SHOWING THE FUND PREFFERED BY THE RESPONDENTS
Category
No. Of Respondents
Percentage
37
Equity
35
38.8%
Balanced fund
15
16.7%
Debt fund
20
22.3%
Gilt fund
2
2.2%
Index fund
0
0
Sector fund
18
20%
Total
90
100%
INFERENCE
The above table shows that, out of 90 respondents 38.8% Preferred equity fund, 16.7% preferred balance fund and 0% index fund and 20% preferred debt fund, 2.2% preferred gilt fund and 0% index fund and 20% preferred sector fund.
FIGURE NO 10: THE FUND PREFFERED BY THE RESPONDENTS
38
Sector f und Index f und Gilt f und Debt f und Balanced f und Equity 0 10 20 30 40 Percentage No. Of Respondents
TABLE NO 11: MUTUAL FUND COMPANY PREFERRED BY THE RESPONDENTS
No.
I II III IV V VI VII VIII
M.F. Company
Prudential ICICI UTI HSBC HDFC Tata M.F Reliance SBI Can bank
No. Of Respondents
25 21 12 10 8 8 3 2
Percentage
27.8% 23.5% 13.3% 11.2% 8.8% 8.8% 3.3% 2.2%
39
IX
Franklin Templeton
1
1.1%
TOTAL INFERENCE
90
100%
The table shows that the majority of the respondents (27.8%) prefer prudential ICICI and a few (1.1%) prefer Franklin Templeton.
FIGURE NO 11: MUTUAL FUND COMPANY PREFERRED BY THE RESPONDENTS
Prudential ICICI UTI HSBC HDFC Tata M.F Reliance SBI Can bank Franklin Templeton
TABLE NO 12: SATISFACTORY LEVEL OF RETURNS THE MUTUAL FUND
Category
No. Of Respondents
Percentage
Highly satisfied
6
6.6%
40
Satisfied
30
33.35
Neutral
50
55.6%
Dissatisfied
4
4.5
Total
90
100%
INFERENCE
The above table shows that, out of 90 respondents 6.6% highly satisfied, 33.3% satisfied 55.6% neutral and 4.5% dissatisfied.
FIGURE NO 12: SATISFACTORY LEVEL OF RETURNS THE MUTUAL FUND
60 50 40 30 20 10 0 Highly satisfied Satisfied Neutral Dissatisfied No. Of Respondents Percentage
TABLE NO 13: THE BASIS FOR THE SELECTION OF MUTUAL FUND
41
Category
No. Of Respondents
Percentage
Safety
42
46.7%
Liquidity
4
4.4%
Yield
30
33.3%
Diversification
14
15.6%
Total
90
100%
INFERENCE
The above table shows that out of 90 respondents 46.7% selecting M.F on the basis of safety 4.4% on the basis of liquidity, 33.3%on the basis of yield and 15.6% on the basis of diversification.
FIGURE NO 13: THE BASIS FOR THE SELECTION OF MUTUAL FUND
42
Diversif ication
Yield Percentage Liquidity No. Of Respondents
Saf ety 0 20 40 60
43
TABLE NO 14: THE SHOWING OF THE CHANNEL FOR MAKING INVESTMENT Channel No. Of Respondents Percentage
Broking company
61
67.7%
Banking forms
22
24.5%
Agents
7
7.8
Any other
0
0
Total
90
100%
INFERENCE
The above table shows that out of 90 respondents’ 67.7% respondents making their investment through broking firms, 24.5% through banking firms and 7.8% through agents.
FIGURE NO 14: THE SHOWING OF THE CHANNEL FOR MAKING INVESTMENT
44
Broking company Banking forms Agents Any other
TABLE NO 15: RESPONDENTS INTEREST TO ANY KIND OF INVESTOR AWARENESS
PROGRAMME ON FINANCIAL PRODUCT
Category
No. Of Respondents
Percentage
Mutual fund
50
16.6%
Insurance
123
41%
Stock market
127
42.4%
Any other
0
0
Total
300
100%
INFERENCE
45
The above table shows that out of 300 respondents 16.6% respondents interested to mutual fund awareness programme, 41% insurance and 42.4% stock market.
FIGURE NO 15: RESPONDENTS INTEREST TO ANY KIND OF INVESTOR AWARENESS
PROGRAMME ON FINANCIAL PRODUCT
Mutual fund Insurance Stock market Any other
3.2 CHI-SQUARE TEST 1. THE EDUCATIONAL QUALIFICATION AND THE PATTERN OF INVESTMENT
46
X2 –test for income and pattern of investment
NULL HYPOTHESIS (H0)
The educational qualification and pattern of investment are not related
ALTERNATIVE HYPOTHESIS (H1)
The educational qualification and pattern of investment are related
Educational qualification
U.G Degree SSLC
No. Of Respondents
121 50
Category
Bank deposit Mutual Fund
No. Of Respondents
200 50
Observed frequency related educational qualification and pattern of investment 200 50 250 Calculation of expected frequency E(x11) = E(x12) = E(x21) = E(x22) = (321X250)/421 (321X171)/421 (100X250)/421 (100X171)/421 = 190.61 = 130.38 = 59.38 = 40.61 121 50 171 321 100 421
X2 –TEST FOR INCOME AND PATTERN OF INVESTMENT S.no
1 2
0
200 121
E
190.61 130.38
(o-e)
9.4 -9.38
(o-e)2
88.36 87.98
O - E2 E
0.46 0.67
47
3 4
50 50
59.38 40.61
-9.38 9.39
87.98 88.17
1.48 2.17 4.78
Calculated value of X2 Level of significance = 5% Degree of freedom
= 4.78
= (r-1) x (l-1) = 2-1 x 2-1 =1x1 =1
Table value of X2
=
3.841
Calculated value of X2 is greater than table value of X2 Hence H1 is accepted and H0 is rejected So there is a relation between educational qualification and pattern of investment.
2. THE PATTERN OF INVESTMENT
X2 –test for income and pattern of investment
NULL HYPOTHESIS (H0)
The income and pattern of investment are not related
ALTERNATIVE HYPOTHESIS (H1)
The income and pattern of investment are related
Income
Below 5000 5001-10000
No. Of Respondents
120 60
48
Category
Bank deposit Mutual Fund
No. Of Respondents
200 50
Observed frequency related income and pattern of investment 120 60 180 Calculation of expected frequency E(x11) =
320 x 180 430 320 x 250 430
200 50 250
320 110 430
= 133.95
E(x12) =
= 186.05
E(x21) =
110 x 180 430
110 x 250 430
= 46.05
E(x22) =
= 63.95
X2 –TEST FOR INCOME AND PATTERN OF INVESTMENT S.no
1 2 3 4
0
120 200 60 50
E
133.95 186.05 46.05 63.95
(o-e)
-13.95 13.95 13.95 -13.95
(o-e)
2
O - E2 E
1.45 1.05 4.23 3.05 9.79
194.60 194.60 104.60 194.60
Calculated value of X2 Level of significance = 5% Degree of freedom
= 9.79
= (r-1) x (l-1)
49
= 2-1 x 2-1 =1x1 =1 Table value of X2 = 3.841
Calculated value of X2 is greater than table value of X2 Hence H1 is accepted and H0 is rejected So there is a relation between income and pattern of investment.
3. THE AWARENESS LEVEL OF MUTUAL FUNDS AND THE PATTERN OF INVESTMENT
X2 –test for income and pattern of investment
NULL HYPOTHESIS (H0)
The awareness level of mutual funds and pattern of investment are not related
ALTERNATIVE HYPOTHESIS (H1)
The awareness level of mutual funds and pattern of investment are related
Awareness
Aware Not Aware
No. Of Respondents
210 90
50
Category
Bank deposit Mutual Fund
No. Of Respondents
200 50
Observed frequency related awareness level of mutual funds and pattern of investment 210 90 300 Calculation of expected frequency E(x11) = E(x12) = E(x21) = E(x22) = (410X300)/550 (410X250)/550 (410X300)/550 (410X300)/550 = 223.63 = 186.36 = 76.63 =63.63 200 50 250 410 140 550
X2 –TEST FOR INCOME AND PATTERN OF INVESTMENT (o-e)2
185.77 186.04 186.04 185.77
S.no
1 2 3 4
0
210 200 90 50
E
223.63 186.36 76.36 63.63
(o-e)
-13.63 13.64 13.64 -13.63
O - E2 E
0.83 0.99 2.43 2.91 4.78
Calculated value of X2 Level of significance = 5% Degree of freedom
= 7.16
= (r-1) x (l-1) = 2-1 x 2-1 =1x1 =1
Table value of X2
=
3.841
Calculated value of X2 is greater than table value of X2
51
Hence H1 is accepted and H0 is rejected So there is a relation between awareness level of mutual funds and pattern of investment.
CHAPTER IV 4.1 FINDINGS ? ? ? ? ?
Majority of respondent have any investment 100% of respondents who are interested to invest the money. Majority of respondents are to invest their money is bank deposit. It is found that majority of the respondents pattern of investment is bank deposit. Majority of the respondent considering consultant and past performance for their investment.
? ? ? ? ? ? ? ? ?
It is found that majority of respondents are not aware of mutual fund. The majority reason for non-awareness programme and more advertisement. The majority of respondent getting information from mutual fund from advertisement. Majority of the respondent assessing the performance on the basis of past performance. A good majority of respondents prefer equity fund. Prudential ICICI is the most choosable M.F. Majority of respondents are not satisfied with the present level returns from M.F. Majority of respondents selected the fund on the basis of safety. It is clear that majority of the respondent’s select broking company for making investments.
?
Majority of respondents are interested to know about stock market.
52
4.2 SUGGESTIONS
1. 2. 3. The broking firm should provide more service to the consumers for more investment Conduct more awareness programme on different financial product. It is advisable to choose TV and out door Medias, since they are the most out standing media for advertisement. 4. 5. 6. Introduce new attractive schemes Introduce more tax saving schemes. More dividends will attract more customers.
CHAPTER V 5.1 CONCLUSIONS
Majority of the respondents are not aware of mutual funds, so By conducting more consumer awareness creating programmes the company can give more information about the mutual funds and the mutual funds company .This study will definitely help the company to improve their service and market share if they adopt the strategy which I suggested.
ANNEXURES QUESTIONNAIRE
A STUDY ON GENERAL PUBLIC AWARENESS AND CUSTOMER SATISFACTION MUTUAL FUNDS – IN FOCUS WITH INTEGRATED ENTERPRISES (INDIA) LIMITED, COIMBATORE.
53
1. Name 2. Address
: :
3. Education :
F F o o o
Below S.S.L.C S.S.L.C Degree PG Technical Studies Below 5000 5001-10000 10001-15000 15001-20000 Above 20000
4. Monthly Income:
F F F o o
5. Do you currently have any investment?
F
Yes
FNo
a) If No, are you interest to invest money
F
Yes
FNo
b) Mark your choice choice of investment
F Bank Deposit F M.F
F LIC F Share F
Others
c) If you have investment, then what type of investment do you process pattern of investment
F Bank Deposit F Shares F LIC
F M.F F
Others
6. What are the important Factors Considering before an investment?
F F F
Expert’s Opinion Advertisement Past Performance
F Market trend F Consultant F Family / Friends Advise
7. Are you aware of mutual fund?
F
Yes
F
No
54
8. What Reason do you posses?
F F
Not interested Other reasons
F
lack of information
9. Are you interested in knowing about mutual funds?
F
Yes
F
No
If yes, what you are expecting Investor awareness programme Service of executives More advertisement perspectives Conduct personnel meeting
F Yes F Yes F Yes F Yes F No F No
F No
F No
10. If you are aware, specify your source of information about Mutual Fund
F Advertisement
F Friends& Relatives
FAgents or Distributors
F Journals & Magazines
F Consultant F Others
11. In what ways do you assess the performance of mutual fund?
F Past performance F NAV F Ratings F Returns
F Market Value
12. Which type of fund do you prefer mostly?
F Equity fund
F Balance Fund
F Debt Fund
F GILT Fund F Index Fund F Sector fund
13. Which of the following M.F Company do you prefer mostly for investment?
F Franklin Templeton F Can bank F HDFC
F SBI F prudential ICICI F UTI
F Tata M.F F HSBC F Reliance
14. What is your level of satisfaction towards the current level of the returns?
F Highly Satisfied F Dissatisfied
F Satisfied
F Neutral
15. On what basis you have selected the allocation of fund
F Safety
F Liquidity
F Yield
F Diversification
16. Specify your usual investment channel
F Broking Company F Banking Firms
F Agents
55
F Any other
17. Are you interested in any kind of investor awareness programmes on financial product?
F M.F
F Insurance
F Stock Market
F Any other
18. Do you have any complaint regarding present mutual fund investment?
BIBLIOGRAPHY Books referred: • •
Mutual funds in India
by Sathak F Mc Graw hill publications fourth edition by kothari , Wishwa Prakesh Publication,
Research Methodology,Methods & Tecniques
NewDelhi ,1996
Magazines: • • • Business Today - monthly magazine March and April 2006 Capital market - monthly magazines March and April 2006 Integrated share news - a fortnight magazine published by integrated enterprises (India)Ltd.
Periodicals: • • The Economic Times from Feb 20th to April 30th Business Line from Feb 20th to April 30th
Websites: • • • • •
www.iepindia.com www.indiainfoline.com www.karvy.com www.sharekhan.com www.amfi.com
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