A Study on Investor’s Investment behaviour towards Mutual Funds in Chennai City

Abstract

Mutual fund is a trust that pools the saving of a number of investors who share a common financial goal. The money is collected and invested in capital markets such as shares, debentures, and other financial securities. Thus the mutual fund is the most suitable investment for the investors and provides opportunity to invest in a diversified professionally managed of securities at low cost. The structure of mutual fund is determined by SEBI regulations and the four parties are sponsor, board of trustees, an asset management company, and a custodian.

The objectives of the study were to known the investors perception towards mutual fund; to rank the mutual funds based on investors preference; to study the factors influencing investment decision in mutual fund; to identify the reasons for early redemption of mutual fund schemes; to study the problems faced by investors in mutual fund. For conducting study mutual fund investors has chose as the target audience. The data was collected from both primary and secondary sources. Primary data was collected from 104 respondents through a well structured questionnaire with closed ended questions. The secondary data had been collected from books, journals and internet. The study was descriptive in nature with convenience sampling method employed. A well-structured questionnaire was distributed to the respondents. EXCEL and SPSS were the statistical tools used to analyze the data and the findings were presented through graphs and charts with interpretations. Reveals 39 percent of the respondents invest in monthly (SIP),  reveals 30 percent of them five or more than five years of investing in mutual fund schemes, reveals 62 percent of the respondents prefer the equity fund, reveals 69 percent of the respondents prefer open ended schemes.