Page 75 - 2018

M.Phil
(Social Science & Humanity)
A STUDY ON FACTORS AFFECTING SELECTION OF MUTUAL
FUND SCHEMES PERTAI-NING TO RETAIL INVESTORS

M.Phil. Scholar : Thavara Shabbirali S.
Research Supervisor : Dr. Kundan Patel

Regi. No.: 17055131008
Abstract :
The mutual fund is the most suitable investment for the common man as it offers an
opportunity to invest in a diversified, professionally managed basket of securities at a low
cost. The risk in mutual fund investment is relatively less compare directly investing in
stocks and therefore it is safe and secure option for risk averse investors. The objectives
of the study are to identify the major factors affecting selection of mutual fund schemes
by retail investor and to examine the impact of demographic factor differences on mutual
fund scheme selection decision. Investors are unique and are a highly variant group at
the retail level. Hence, their scheme selection is also differs. This necessitates the Asset
Management Companies (AMCs) to understand the scheme selection behavior of the
investors to design suitable products to meet the changing financial needs of the
investors. In this research study, primary and secondary source of data has been utilized
and Primary data has been collected through pre-coded structured questionnaire. In this
research study, convenient sampling method has been utilized to draw the samples from
target population. 388 Mutual Fund Investors were selected for this study from North
Gujarat Region.

The analysis was carried out using IBMM Statistical Package for the Social sciences
(SPSS) 20 version for windows. Frequency distribution, chi-square test, ANOVA are used
for analysis of this study. It is observed that the retail investors are now turning more to
mutual funds because of safety, liquidity, capital gains and transparency. The major
factors affecting selection of mutual fund schemes by retail investor of north Gujarat
region are growth opportunity, liquidity, income tax benefit and reputation or brand name
of fund. With regard to impact of demographic factor differences on mutual fund scheme
selection decision, it is concluded that there is a no significant difference in demographic
factor differences on mutual fund scheme selection decision. It is concluded that “Agent”
is major information sources followed by “Friends and relatives” which affects the
scheme selection decision by retail investors of north Gujarat region.

Key-Words: affecting factors, Mutual fund schemes, Retail Investors, mutual fund
scheme selection decision

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