EXECUTIVE SUMMARY

Mutual Funds provide a platform for a common investor to participate in the

Indian capital market with professional fund management irrespective of the
amount invested. The Indian mutual fund industry is growing rapidly and this is
reflected in the increase in Assets under management of various fund houses.
Mutual fund investment is less risky than directly investing in stocks and is
therefore a safer option for risk averse investors. Monthly Income Plan funds offer
monthly returns and invest majorly in debt oriented instruments with little
exposure to equity. However it has been observed that most of the investors are not
aware of the benefits of investment in mutual funds. This is reflected from the
study conducted in this research paper. This paper makes an attempt to identify
various factors affecting perception of investors regarding investment in Mutual
funds. The findings will help mutual fund companies to identify the areas required
for improvement in order to create greater awareness among investors regarding
investment in mutual funds.

The concept of mutual fund emerged in Netherlands in 18th century and

introduced in India by Unit Trust of India in1960s. As the mutual fund industry
provides an option of diversified investment structure with varying degree of risk,
it was supposed to be the most lucrative market for Indian investors. It was
believed that it will surely tap the savings of common man. But in practice it failed
to become a primary choice for investment to Indian investor. During almost six
decades (1965-2011) the value of assets under management of mutual fund
industry experienced great swings. As against the developed countries where
almost every second investor is a mutual unit holder, the product could not get
much popularity in India. In this reference, the present paper attempts to
investigate the reasons responsible for lesser recognition of mutual fund as a prime
investment option. It examines the investors perception with reference to distinct
features provided by mutual fund companies to attract them for investing in
specific funds/schemes. The study uses principal component analysis as a tool for
factor reduction. The paper explored three factors named as fund/scheme related
attributes, monetary benefits and sponsors related attributes (having respectively
six, four and four variables) which may be offered to investors for securing their
patronage. The results are expected to provide fruitful insight to mutual fund
companies for tailoring their offers suitable to cater the needs and expectations of
Indian investors.

CONTENT

TOPICS
1. INTRODUCTION
2. REVIEW OF LITERATURE
3. RESEARCH GAP AND OBJECTIVES
4. SCOPE OF THE STUDY
5. FORMULATION OF HYPOTHESES
6. RESEARCH METHODOLOGY
7. DATA ANALYSIS
8. FINDING & SUGGESTIONS
9. CONCLUSION
10.BIBLIOGRAPHY
11.ANNEXURE

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