© 2019 IJSRST | Volume 6 | Issue 3 | Print ISSN: 2395-6011 | Online ISSN: 2395-602X

Themed Section: Science and Technology

DOI : 10.32628/IJSRST196314
A Study on The Investment Pattern of Investors Towards Mutual Fund in The
Ludhiana City
Praveen Kaur, Radhika Jindal
Assistant Professor, PCTE Ludhiana, Punjab, India
ABSTRACT

Mutual funds have emerged as a tool of one’s financial well-being. As information and awareness is rising more
and more people are enjoying the benefits of investing in mutual funds. This study is conducted to discover the
factors that influence the behavior of investors and their investment pattern while investing in mutual funds
including the factors that stops the investors to invest in mutual funds. By a descriptive research on a sample of
more than 100 respondents from the Ludhiana city, it shall be found that which factors and risks the young
investors considers before investing. The findings will help the asset management companies to identify the
areas of improvements in order to create greater awareness among young investors regarding investment in
mutual funds.
Keywords : Commodities, Equity Shares, Systematic Investment Plan.

I. INTRODUCTION tax consequences. Each outlet has a greater or lesser

degree of uncertainty associated with each factors.
Investment is a commitment of funds in real assets or
financial assets. There are various avenues of Investment is the process of putting money to work
investment in accordance with individual preferences. to earn income. Investing even a small amount can
Investments are made in different asset classes produce considerable growth over long period.
depending on individual’s risk and return Investors continuously plan for their investments to
characteristics. Investment choices are physical assets fulfill major needs like financial protection, career
and financial assets. Gold, Commodities and Real building, asset purchase, marriage, children’s’
estate are examples of physical assets, which have a education, retirement funding etc. For this investors
physical form. Financial assets are securities, which need to take decision regarding how much to invest?
are certificates embodying a financial contract And where to invest? To choose wisely, investors
between parties. Bonds, Equity shares, Deposits and need to know investment options thoroughly. It is
Insurance policies are some of the examples of financial services institutions and intermediaries
financial assets. which help the investors for transforming saving into
investment, production and growth. It is a
Wise investment of personal saving necessitates a mechanism or arrangement for the mobilization of
clear understanding of objectives of saving. Every funds, their transfer and allocation. A financial
investment channel can be viewed as a package services intermediary has enormous value in the
offering a unique combination, which fulfils the financial market. A mutual Fund is recognized as a
objectives of: (i) principal value, (ii) expected income, medium as well as long term investment option.
(iii) ease of converting principal into cash, and (iv)

IJSRST196314 | Received : 20 April 2019 | Accepted : 04 May 2019 | May-June-2019 [ 6 (3) : 110-125]
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The first introduction of mutual fund in India high-quality government debt, holding these bonds
occurred in 1963, when the Government of India until maturity in order to provide interest streams
launched Unit Trust of India. A mutual fund is Bond funds: These funds invest and actively trade in
an investment vehicle made up of a pool of various types of bonds. Bond funds are often actively
money collected from many investors for the purpose managed and seek to buy relatively undervalued
of investing in securities such bonds in order to sell them at a profit.
as stocks, bonds, money market instruments and Balanced funds: The objective of these funds is to
other assets. Mutual funds are operated by provide the mixture of safety, income and capital
professional money managers, who allocate the appreciation.
fund's investments and attempt to produce capital Equity funds: Funds that invest primarily in stocks
gains and/or income for the fund's investors. A represent the largest category of mutual
mutual fund's portfolio is structured and maintained funds.Generally, the investment objective of this
to match the investment objectivesstated in class of funds is long term capital growth
its prospectus. Global/International funds: International fund (or
foreign fund) invests only in assets located outside
Appreciation or reduction in value of investments is your home country.
reflected in Net Asset Value (NAV) of the concerned Specialty funds: This classification of mutual funds is
scheme, declared by the fund from time to time. more of an all-encompassing category that consists of
funds that have proved to be popular. These type of
Mutual Fund Schemes are managed by respective mutual funds forgo broad diversification to
Asset Management Companies (AMC). Different concentrate on a certain segment of a economy or a
business groups, financial institutions and banks targeted strategy.
sponsors these AMCs either alone or in collaboration Index funds: These are passively managed funds that
with other firms. An asset management company seek to replicate the performance of a broad market
(AMC) is a company that invests its clients' pooled index such as the NIFTY and SENSEX
funds into securities that match declared financial Exchange traded funds: These ever most popular
objectives. Asset management companies provide investment vehicles pool investments and employ
investors with more diversification and investing strategies consistent with mutual funds, but they are
options than they would have by themselves. AMCs structured as investment trusts that are traded on
manage mutual funds, hedge funds and pension plans, stock exchanges, and have the added benefits of the
and these companies earn income by charging service features of stocks
fees or commissions to their clients.
1.2 REVIEW OF LITERATURE
1.1.1 TYPES OF MUTUAL FUNDS: Trivedi, Swain and Dash (2017) conducted a research
Money market funds: The money market consists of on a study of investor’s perception towards a mutual
safe (risk-free) short term debt instruments, mostly fund decision: an Indian perspective and focused on
government treasury bills. the relationship between investment decision and
Income funds: These funds are named for their factors like liquidity, financial awareness, and
purpose: to provide current income on a steady basis. demography. It was found low risk funds and
These funds invest primarily in government and liquidity of fund scheme is having impact on the

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investor’s perception for investing in the mutual fund.

It was an analytical and descriptive research; primary Sharma (2012) conducted a research on Indian
source of data collection is used for present study investor’s perception towards mutual funds with an
with the sample size of 200 respondents. attempt to investigate the reasons responsible for
lesser recognition of mutual fund as a prime
Kumar and Rajkumar (2014) conducted a research on investment option. The study is primarily based upon
awareness and knowledge of mutual fund among the primary data collected from a structured survey
investors with special reference to Chennai to through questionnaire and was administered on 100
evaluate the knowledge, general and variable effects plus respondents online as well as in person. It was
about the investors’ perception and performance of found out that three factors named as fund/scheme
investment avenues. A survey was conducted among related attributes, monetary benefits and sponsors’
250 mutual fund Investors in Chennai as per simple related attributes may be offered to investors for
random sampling and found out that many securing their patronage.
respondents have clear knowledge about the
potential advantages of investing in mutual funds. II. METHODS AND MATERIAL
Saini, Anjum and R.Saini (2016) conducted a research
on investors’ awareness and perception about mutual OBJECTIVES OF THE STUDY
funds with an objective to analyze the investors’
• To know the level of awareness regarding mutual
awareness and perception regarding investing in
funds among the investors of Ludhiana.
mutual funds. Data for the study is collected from a
• To know the perception of investors regarding
sample of 200 investors in Chandigarh by using
the perceived risk and return in mutual funds.
stratified sampling and it was found out that mostly
• To know the investment pattern of the investors
the investors have positive approach towards
on the basis of selected demographic variable that
investing in mutual funds, in order to maintain their
is income.
confidence in mutual funds they should be provided
with timely information relating to different trends
RESEARCH DESIGN
in the mutual fund industry.
Goel and Khatik (2017) conducted a study on
investors' awareness and preference towards mutual The nature of this study is a descriptive type, and the
funds as an investment option with an objective to aim of the study draws a picture of the study’s topic,
know the Investors' awareness and preference thus a quantitative research strategy is used in this
towards Mutual Funds as an Investment option. study. A descriptive research method is used for the
Primary data using judgment sampling through research.
questionnaire method as well as secondary data from
wide range of literature from various journal 1.3.3 SAMPLING PLAN
publications had been utilized. It was found out that
majority of investors have heard about mutual funds The samples for the study is collected through simple
but still a important fraction of them have not questionnaires intended to collect information about
initiated to investment because of having lacking in the respondents’ knowledge regarding mutual funds.
full knowledge of mutual funds. The distribution of questionnaires was done through
an online platform and physical hard form.

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1) TARGET POPULATION computed in SPSS to know the dependency of the

The study is intended towards the responses from various variables on the investment in mutual funds
investors of the city of Ludhiana, Punjab. The by the investors in the city of Ludhiana.
sampling unit used for the study will be both the
investors NEED AND SCOPE OF STUDY
2) SAMPLING TECHNIQUE Mutual fund has been focused as an investment
Simple random sampling technique is used in the avenue in past few years only. The financial growth
study. and stability of an economy plays a vital role in this
3) SAMPLE SIZE area. Mutual fund industries are gaining importance
because the salaried class people and the middle
A sample size is a part of the population chosen for a
income people prefer their investment preferable
survey or experiment. More than 100respondents are
avenue for their investment destination .Gradually
studied through questionnaire method of collecting
educated citizens are gaining the knowledge of saving
primary data. The optimum sample size has been
and investment cycle and its effects in an economy.
selected by using the Cochran’s Formula at 95%
confidence level and 10% being the margin of error.
5) DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION

Cochran’s Formula :

4) RESEARCH INSTRUMENT
The research instrument is the questionnaire
consisting of questions related to the objective of the
research. It contains 18-20 questions covering the
different aspects through which the analysis will be
done.
Figure 1 : Percentage breakup of factors which the
DATA COLLECTION investors prefer

Two methods are used for data collection. The

Analysis: The above data says that out of the sample
primary data is collected through well-structured
investors in Ludhiana city 37.6% people prefer high
questionnaire and is adopted from prior studies.
returns, 28.7% people go for safety while investing
their money, 20.8% people prefer low risk, 6.9%
DATA ANALYSIS TOOLS/ TECHNIQUES
people prefer liquidity and 5.9% people look for
This study used qualitative data analysis to compile marketability option in the investment.
finding from the research. Statistical software like
SPSS will be used to study the relation between the Interpretation: High return is that one factor which is
perceived risk or return and investment in mutual most preferred by the investors in Ludhiana city and
funds. The collected data as responses was coded and the next most preferred factor which investors look
feed into the software and various tests like Weighted for is the safety of money.
mean and Chi-square were applied. The Variables are

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purchase decision of mutual funds is highly

influenced from television.

Awareness and influence from internet

35
30
25
20 Awareness and
Figure 2 : Percentage breakup of investment avenues
15 influence from
considered profitable internet
10

Analysis: By analyzing the above data it can be said 5

that 23.8% people feel mutual funds more profitable, 0

1 2 3 4 5
19.8% people feels fixed deposits more profitable,
19.8% people considers postal savings, 12.9% people
Figure 4 : Awareness and influence from internet
considers gold and silver more profitable, 11.9% feels
(1 is the lowest and 5 is the highest ranking)
real estate more profitable, 7.9% people consider
saving account more profitable, 4% feels postal
Analysis: All the respondents got aware from the
savings more profitable.
internet about the mutual funds and 10 people said
that there purchase decision of mutual funds is least
Interpretation: Majority of the people in Ludhiana
influenced from internet and 18 people said that
city considers mutual funds as the most profitable
there purchase decision of mutual funds is highly
investment option.
influenced from internet.

Awareness and influence from Awareness and influence from

television newspaper/journals
40
35
30
30
20 Awareness from
25
10 television
20 Awareness and
0 influence from
1 2 3 4 5 15 newspaper/journ
10 als
Figure 3 : Awareness and influence from television 5
(1 is the lowest and 5 is the highest ranking)
0
1 2 3 4 5
Analysis: Total 96 people got aware from television
regarding mutual funds and 14 people said that there Figure 5 : Awareness and influence from
purchase decision of mutual funds is least influenced newspapers/journals (1 is the lowest and 5 is the
from television and 15 people said that there highest ranking)

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Analysis: All the respondents got aware from the (1 is the lowest and 5 is the highest ranking)
newspaper/journals about the mutual funds and 16 Analysis: All the respondents got aware from the
people said that there purchase decision of mutual sales representatives about the mutual funds and 19
funds is least influenced from newspaper/journals and people said that there purchase decision of mutual
10 people said that there purchase decision of mutual funds is least influenced from sales representatives
funds is highly influenced from newspaper/journals. and 13 people said that there purchase decision of
mutual funds is highly influenced from sales
Awareness and influence from
representatives.
friends/relatives
35
Interpretation: From the above graphs it can be
30
interpreted that people in Ludhiana city was aware
25
and influenced the most from the internet and then
20 Awareness and
from television regarding mutual funds.
15 influence from
friends/relatives
10
5
0
1 2 3 4 5

Figure 6 : Awareness and influence from

friends/relatives
(1 is the lowest and 5 is the highest ranking)
Analysis: All the respondents got aware from the
friends/relatives about the mutual funds and 16
Figure 8 : Percentage breakup of preventive factors
people said that there purchase decision of mutual
funds is least influenced from friends/relatives and 8
Analysis: After analyzing the data it was observed
people said that there purchase decision of mutual
that lack of knowledge about the mutual funds is the
funds is highly influenced from friends/relatives.
factor which prevents most of the people to invest in
mutual funds, 34.7% people do not invest in mutual
Awareness and influence from sales funds due to lack of knowledge, 27.7% considers
representatives difficulty in selection of schemes as a factor which
25 prevents them to invest in mutual funds. 14.9%
20 people avoid investing in mutual funds because of
15 Awareness and bitter past experience. 9.9% people are having lack of
influence from
10 sales confidence in service being provided another 9.9%
5 representatives people hesitates from investing in mutual funds
0 because of inefficient investment advisors and only 1%
1 2 3 4 5 people avoid investing in mutual funds because they
believe that they will get low returns.
Figure 7 : Awareness and influence from sales
representatives

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Interpretation: The factor which prevents the Analysis: It is clear from the above data that most of
investors of Ludhiana city to invest in mutual funds is the people (46.5%) prefer to invest in open ended
the lack of knowledge regarding which kind of schemes because of the liquidity that these schemes
schemes can fulfill their investment objectives. offer. 32.7% people considers suitable to invest in
close ended schemes and another 20.8% people finds
suitable to invest in interval schemes.

Interpretation: It has been interpreted that people in

the city invest in open ended schemes as it offers a
great degree of liquidity to the investors and there is
no exit load in such schemes.

Figure 9 : Percentage breakup of preferred mode of

investment

Analysis: There are four modes of investing in mutual

funds, and out of 101 respondents 59.4% people opt
for systematic investment plan, 25.7% people opt for
lump sum mode, 9.9% people go for systematic
withdrawal plan, 5% people opted for systematic Figure 11 : Percentage breakup of mutual fund
transfer plan. schemes opted by investors

Interpretation: Most of the people in Ludhiana city Analysis: The data collected from the respondents of
are investing in mutual funds through the mode of Ludhiana city says that 25.7% people invest in
systematic investment plan. It is a good mode of income schemes, 22.8% people invest in balanced
investment and gives you the benefit of rupee cost schemes, 19.8% people invests in growth schemes,
averaging. 13.9% people invests in tax saving schemes, 12.9%
people invests in money market schemes, 5% people
invests in index schemes.

Interpretation: Most of the people in the city go for

income schemes. These kinds of schemes give the
investors monthly income but the returns are less as
compared to the growth schemes.

Figure 10 : Suitability of schemes

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WEIGHTED MEAN
Influence of liquidity on
W
Scale
X WX
purchase
Highly 70
60
5 favorable 58 290 Influence of liquidity on
50
purchase
Favorable 40
4 26 104 30
Somewhat 20
10
3 favorable 17 51 0
Not very
2 favorable 0 0
Not at all
1 favorable 0 0

Weighted mean = 445/15 =29.667 Figure 12 : Influence of liquidity on purchase

Analysis: Out of all the respondents, 20 people

consider that liquidity highly influences their
purchase decision, 61 people said liquidity influence
their purchase decision, 17 people said that liquidity
somewhat influence their purchase decision, 2 people
said that liquidity does not much influence their
purchase decision, 1 person said that liquidity does
not influence the purchase decision.

STATISTICAL TOOL
INCOME OF RSPONDENTS AND MODE OF INVESTMENT

Income of respondents * Mode of investment in mutual funds Crosstabulation

Mode of investment in mutual funds
systematic systematic systematic
investment transfer withdrawl
lumpsum plan plan plan Total
Income of below 1 Count 3 15 2 3 23
respondents lakh Expected
Count 5.9 13.7 1.1 2.3 23
between Count 10 15 1 3 29
1 lakh Expected
to 2 Count
lakhs 7.5 17.2 1.4 2.9 29

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between Count 11 10 1 4 26
2 lakhs Expected
to 3 Count
lakhs 6.7 15.4 1.3 2.6 26
between Count 2 9 1 0 12
3 lakhs Expected
to 4 Count
lakhs 3.1 7.1 0.6 1.2 12
between Count 0 2 0 0 2
4 lakhs Expected
to 5 Count
lakhs 0.5 1.2 0.1 0.2 2
above 5 Count 0 9 0 0 9
lakh Expected
Count 2.3 5.3 0.4 0.9 9
Total Count 26 60 5 10 101
Expected
Count 26 60 5 10 101

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 19.142a 15 .207
Likelihood Ratio 24.072 15 .064
Linear-by-Linear
.460 1 .498
Association
N of Valid Cases 101
a. 16 cells (66.7%) have expected count less than 5. The
minimum expected count is .10.

INTERPRETATION: The significance value (0.207) is much more than the alpha value (0.05). Therefore, we can
say that there is no significant relationship between income and mode of investment. Mode of investment is
independent of income.

INCOME OF RESPONDENTS AND INVESTMENT PATTERN

Income of respondents * Investment pattern in mutual funds

Crosstabulation
Investment pattern in mutual funds
once in
six once in very
monthly months a year rare Total
Income below 1 Count 5 10 1 7 23

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Income of respondents * Investment pattern in mutual funds

Crosstabulation
of lakh Expecte
responde d Count 5 8.4 4.3 5.2 23
nts between Count 5 2 14 8 29
1 lakh Expecte
to 2 d Count
lakhs 6.3 10.6 5.5 6.6 29
between Count 2 17 3 4 26
2 lakhs Expecte
to 3 d Count
lakhs 5.7 9.5 4.9 5.9 26
between Count 4 4 1 3 12
3 lakhs Expecte
to 4 d Count
lakhs 2.6 4.4 2.3 2.7 12
between Count 0 2 0 0 2
4 lakhs Expecte
to 5 d Count
lakhs 0.4 0.7 0.4 0.5 2
above 5 Count 6 2 0 1 9
lakh Expecte
d Count 2 3.3 1.7 2 9
Total Count 22 37 19 23 101
Expecte
d Count 22 37 19 23 101
Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 50.010a 15 .000
Likelihood Ratio 50.025 15 .000
Linear-by-Linear
6.709 1 .010
Association
N of Valid Cases 101
a. 14 cells (58.3%) have expected count less than 5. The minimum expected count is .38.

INTERPRETATION: The significance value (0.0) is less than the alpha value (0.05). Therefore, we can say that
there is significant relationship between income and investment pattern. Investment pattern is dependent on income.

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INCOME OF RESPONDENTS AND PURCHASE OF MUTUAL FUNDS

Income of respondents * Purchase of mutual funds Crosstabulation

Purchase of mutual funds
directly
from brokers brokers/sub
AMC only brokers Total
Income of below 1 Count 6 12 5 23
respondents lakh Expected
Count 8.7 8.7 5.7 23
between Count 13 9 7 29
1 lakh Expected
to 2 Count
lakhs 10.9 10.9 7.2 29
between Count 11 7 8 26
2 lakhs Expected
to 3 Count
lakhs 9.8 9.8 6.4 26
between Count 5 4 3 12
3 lakhs Expected
to 4 Count
lakhs 4.5 4.5 3 12
between Count 0 1 1 2
4 lakhs Expected
to 5 Count
lakhs 0.8 0.8 0.5 2
above 5 Count 3 5 1 9
lakh Expected
Count 3.4 3.4 2.2 9
Total Count 38 38 25 101
Expected
Count 38 38 25 101

Chi-Square Tests
Asymp. Sig.
Value df (2-sided)
Pearson Chi-Square 7.204a 10 .706
Likelihood Ratio 7.925 10 .636
Linear-by-Linear
.035 1 .853
Association
N of Valid Cases 101
a. 9 cells (50.0%) have expected count less than 5. The minimum
expected count is .50.

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INTERPRETATION: The significance value (0.706) is much more than the alpha value (0.05). Therefore, we can
say that there is no significant relationship between income and purchase of mutual funds. Source of purchase of
mutual funds is independent of income.

INCOME OF RESPONDENTS AND SUITABILITY OF SCHEMES

Income of respondents * Suitability Crosstabulation

Suitability
open close
ended ended interval
schemes schemes schemes Total
Income of below 1 Count 12 5 6 23
respondents lakh Expected
Count 10.7 7.5 4.8 23
between Count 10 11 8 29
1 lakh Expected
to 2 Count
lakhs 13.5 9.5 6 29
between Count 14 10 2 26
2 lakhs Expected
to 3 Count
lakhs 12.1 8.5 5.4 26
between Count 7 4 1 12
3 lakhs Expected
to 4 Count
lakhs 5.6 3.9 2.5 12
between Count 0 0 2 2
4 lakhs Expected
to 5 Count
lakhs 0.9 0.7 0.4 2
above 5 Count 4 3 2 9
lakh Expected
Count 4.2 2.9 1.9 9
Total Count 47 33 21 101
Expected
Count 47 33 21 101

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Chi-Square Tests
Asymp. Sig. (2-
Value df sided)
Pearson Chi-Square 14.708a 10 .143
Likelihood Ratio 14.372 10 .157
Linear-by-Linear Association .039 1 .844

N of Valid Cases 101

a. 9 cells (50.0%) have expected count less than 5. The minimum expected count
is .42.

INTERPRETATION: The significance value (0.143) is much more than the alpha value (0.05). Therefore, we can
say that there is no significant relationship between income and suitability of mutual fund schemes. Suitability of
mutual fund schemes is independent of income.

INCOME OF RESPONDENTS AND MUTUAL FUND SCHEMES OPTED

Income of respondents * mutual fund schemes opted Crosstabulation

mutual fund schemes opted
money tax
growth income balanced market saving index
schemes schemes schemes schemes schemes schemes Total
Income of below 1 Count 6 5 4 3 5 0 23
respondents lakh Expected
Count 4.6 5.9 5.2 3 3.2 1.1 23
between Count 7 7 5 5 4 1 29
1 lakh Expected
to 2 Count
lakhs 5.7 7.5 6.6 3.7 4 1.4 29
between Count 4 7 9 3 1 2 26
2 lakhs Expected
to 3 Count
lakhs 5.1 6.7 5.9 3.3 3.6 1.3 26
between Count 0 4 4 2 0 2 12
3 lakhs Expected
to 4 Count
lakhs 2.4 3.1 2.7 1.5 1.7 0.6 12
between Count 0 1 0 0 1 0 2
4 lakhs Expected
to 5 Count
lakhs 0.4 0.5 0.5 0.3 0.3 0.1 2
above 5 Count 3 2 1 0 3 0 9
lakh Expected
1.8 2.3 2 1.2 1.2 0.4 9

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Count

Total Count 20 26 23 13 14 5 101

Expected
Count 20 26 23 13 14 5 101

Chi-Square Tests
Value df Asymp. Sig. (2-sided)
Pearson Chi-Square 25.889a 25 .414
Likelihood Ratio 31.243 25 .181
Linear-by-Linear Association .208 1 .648
N of Valid Cases 101
a. 28 cells (77.8%) have expected count less than 5. The minimum expected count is .10.

INTERPRETATION: The significance value (0.414) is • Most of the people in Ludhiana city understand
much more than the alpha value (0.05). Therefore, that mutual funds are subjected to market risk.
we can say that there is no significant relationship They understand that returns from the funds
between income and mutual fund schemes opted. depends on the volatility of the market,
Mutual fund schemes opted is independent of income. therefore, they feel that the risk involved in
investing in mutual funds is moderate.
III. FINDIGS, CONCLUSION AND • Majority of the people in Ludhiana city considers
RECOMMENDATIONS mutual funds as the most profitable investment
option.
FINDINGS OF THE STUDY • Majority of the people in the city considers the
past returns from the scheme before investing in
• Many people in Ludhiana are investing in mutual
another mutual fund schemes. This shows that
funds but still there is some percentage of
the past returns play a very important role in
population in the city which is unaware
selecting a scheme for investment purpose.
regarding the benefits of investing in mutual
• People in Ludhiana city do not invest much of
funds.
their savings in mutual funds this could be
• High return is that one factor which is most
because of the lack of knowledge regarding the
preferred by the investors in Ludhiana city and
availability of different schemes which could
the next most preferred factor which investors
benefit them and can fulfill their investment
look for is the safety of money.
objectives.
• People in Ludhiana city is aware and influenced
• Most of the people in Ludhiana city are investing
the most from the internet and then from
in mutual funds through the mode of systematic
television regarding mutual funds.
investment plan.
• The factor which prevents the investors of
• People in Ludhiana city invest in mutual funds
Ludhiana city to invest in mutual funds is the
not much frequently. They invest in mutual
lack of knowledge regarding which kind of
funds once in six months.
schemes can fulfill their investment objectives.

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• In Ludhiana city, people purchase mutual fund CONCLUSION Mutual fund industry has still to
schemes from both brokers and asset struggle to gain more investors. Financial literacy
management companies (AMCs). among females and youths will definitely bring huge
• People in the city invest in open ended schemes success to this industry. For that reason the
as it offers a great degree of liquidity to the government is looking to provide financial studies at
investors and there is no exit load in such the school level. Adults who are already investing in
schemes. mutual funds should not withdraw from the same as
• Most of the people in the city go for income they attain experience in the field. In Indian market
schemes. These kinds of schemes give the where financial instruments are capturing almost
investors monthly income but the returns are less every unit of the society, mutual fund industry has a
as compared to the growth schemes. great scope if it gives more attention to the factors
• The factor which influences the purchase of which will ultimately lead to the satisfaction of the
mutual fund schemes most is safety of capital. investors which will help mutual fund industry to
People in Ludhiana city wants their capital not boom up. The various target groups, their awareness
just to remain same but they want their capital to and financial literacy, their age group and gender
grow as well along with the returns. differences play a vital role to upgrade the mutual
• Investment pattern of investors is dependent on fund industry. Mutual fund has been focused as an
the income of respondents. It means that income investment avenue in past few years only. The
of respondents’ affects whether the investors financial growth and stability of an economy plays a
invests monthly, once in six months, once in a vital role in this area. Gradually educated citizens are
year, very rare. gaining the knowledge of saving and investment
cycle and its effects in an economy. Many has opted
IV. CONCLUSION for SIP. But still there are some lacking in our
economy especially in the field of mutual fund
Mutual fund has been focused as an investment investment criteria. Many people still hesitate to
avenue in past few years only. The financial growth enter to this field. The research paper implies the
and stability of an economy plays a vital role in this various areas on which this industry has to struggle.
area. Gradually educated citizens are gaining the The various target group, their awareness and
knowledge of saving and investment cycle and its financial literacy, their age group and gender
effects in an economy. Many has opted for SIP. But differences play a vital role to upgrade the mutual
still there are some lacking in our economy especially fund industry
in the field of mutual fund investment criteria. Many
people still hesitate to enter to this field. The research V. RECOMMENDATIONS
paper implies the various areas on which this
industry has to struggle. The various target group, Mutual fund has been focused as an investment
their awareness and financial literacy, their age group avenue in past few years only. The financial growth
and gender differences play a vital role to upgrade the and stability of the economy plays a vital role in this
mutual fund industry Mutual fund has been focused area. Gradually educated citizens are gaining the
as an investment avenue in past few years only. The knowledge of saving and investment. Many as opted
financial growth and stability of an5.3 for SIP. But still there is some lacking in our

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 Praveen Kaur, Radhika Jindal Int J Sci Res Sci Technol. May-June-2019; 6 (3) : 110-125

economy especially in the field of mutual fund [9]. Prabhu, G., & Vechalekar, N. M. (2014).
criteria. Many people still hesitate to enter in this Perception of Indian Investor towards
industry. To boost the mutual fund investment, AMC investment in mutual funds with special
shall educate the public to the benefits of mutual reference to MIP Funds.In IOSR Journal of
funds through the advertisement, publicity Economics and Finance (IOSR-
campaigns. JEF).Proceedings of 7th International Business
Research Conference, Indian Education
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