Post on 14-Apr-2018
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A STUDY ON THE INVESTMENT BEHAVIOUR AND
LIFE STYLE CHARACTERISTICS OF MUTUAL
FUND INVESTORS IN VIJAYAWADA CITY
ACADAMIC GUIDE : Dr. R.KASILINGAM
ORGANISATIONAL GUIDE : R.SATYANARAYANA
WORK CARRIED FOR
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CONTENTS
Objective and Research Methodology
Analysis and Interpretation
Suggestions & conclusion
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OBJECTIVE & RESEARCH METHODOLOGY
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OBJECTIVE OF THE STUDY
To find out the profile of mutual fundinvestors in Vijayawada city
To find out the investment behavior of
mutual fund investors such as avenuesinvested, frequency of the investment,source of influence and factors considered
To find out the life style characteristics ofmutual fund investor by using AIO scale
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RESEARCH METHODOLOGY
Design: Descriptive approach
Convenience sampling method is used for this study
Study is based on primary data
Sample size is 110 investors
Questionnaire consists of close-ended and 5-point
scale
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Statistical tools used for the analysis are
Frequency Analysis
Chi-square Test
Correspondence Analysis
Factor Analysis
One-way ANOVA
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ANALYSIS & INTERPRETATION
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FREQUENCY ANALYSIS ON DEMOGRAPHICS
Gender Frequency PercentMale 95 86.4
Female 15 13.6Total 110 100.0
Occupation Frequency PercentService 53 48.2Business 12 10.9Retired 9 8.2
Professional 26 23.6Others 10 9.1Total 110 100.0
Monthly Income Frequency PercentBelow 15000 49 44.515000-25000 36 32.725000-45000 17 15.545000-55000 8 7.3
Total 110 100.0
Age Frequency PercentBelow 25 22 20.0
25-35 49 44.535-45
22
20.0
45-55 15 13.6
Above 55 2 1.8Total 110 100.0
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Frequency Analysis for other variables
Investment Objective Frequency PercentHigh return 41 37.3
Regular Income 32 29.1Tax saving 11 10.0
Capital Appreciation 16 14.5Safety 10 9.1Total 110 100.0
Investment
frequency Frequency PercentMonthly 59 53.6Quarterly 17 15.5
Half yearly 20 18.2Annually 14 12.7
Total 110 100.0
Purpose of saving Frequency PercentWealth Creation 26 23.6Future Needs 62 56.4
Children's Education 12 10.9House Building 5 4.5
Marriage Purpose 5 4.5Total 110 100.0
Duration Frequency Percent
Long term 35 31.8Medium term 50 45.5
Short term 25 22.7Total 110 100.0
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Frequency analysis on Investment schemes
Investment Schemes Frequency PercentGrowth Schemes 56 50.9Income Schemes 22 20.0
Balanced Schemes 10 9.1Money Market Scheme 3 2.7Tax Saving Schemes 10 9.1
Index Schemes 4 3.6Sector Specific Schemes 5 4.5
Total 110 100.0Around 51 percent of the respondents invest in growth schemes
and 20 percent respondents invest in income schemes. The
respondents invest in other schemes are of less percent. By this
we can infer majority of respondents invest for high return.
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Chi-square test between Demographics
and Investment schemes
Pearson Chi-Square Value Df Asymp. Sig.(2-sided)
Age 38.697a 24 .029Occupation 49.707a 24 .002
Monthly income 34.579a 18 .011
low significance value (typically below 0.05) indicates that theNull Hypothesis is rejected
and there is association between the investment schemes of
respondents and demographic variables
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Correspondence analysis between age
and Investment schemes
Most of the respondents 25-35 age group prefer to invest in growth schemes and
respondents of 35-45 age group prefer to invest in income schemes and balanced sch
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Lifestyle characteristics of Mutual Fund
Investors
lifestyle characteristics of mutual fund investors is analyzed ba
three variables. They are
Activities
Interest
opinion
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KMO and Bartletts test on Activities
Kaiser-Meyer-Olkin Measure of Sampling
Adequacy. .389
Bartlett's Test ofSphericity
Approx. Chi-Square 87.307Df 28Sig. .000
The value of KMO more than .05 indicates that factor analysis is usefuPresent data. Here, the significant value is 0.000 which indicates that t
exist significant relationships among the variables
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Total variance explained on activities
Compon
entInitial Eigenvalues Rotation Sums of Squared Loadings
Total % ofVariance
Cumulative
% Total% of
VarianceCumulative
%1 1.606 20.074 20.074 1.529 19.118 19.1182 1.507 18.842 38.916 1.492 18.655 37.7733 1.173 14.668 53.585 1.265 15.812 53.5854 1.033 12.916 66.5015 .914 11.423 77.9246 .831 10.383 88.3077 .618 7.725 96.0328 .317 3.968 100.000The total variance accounted by all the three factors is 53.585 percent. This
means that significant amount of variance is explained by the reduced three
factors alone. Therefore it is better to take three variables alone for further
analysis. Among the three factors, the first factor accounts for around 19 percent
of variance
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Rotated component Matrix on Activities
Activities Component1 2 3
My vacation plans are perfect. .863I seldom participate in social
activities. .816
Im a spender than a saver. .743I spend a lot in shopping .681
I like to try new and different things .496I spend most of time in work. .769I would rather spend a quiet
evening at home than go out to a
party.
.559
-
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Factor Analysis on Activities
Based on the statements included into thefactors are named. The reduced three factors
can be as shown below
Perfect planners
High rollers
Task performers
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Perfect planners
Occupation F Sig.Perfect
planners 2.849 .027
Influence of occupation on perfect planner
From the above Table it can be inferred that the significant values isbelow 0.05, which implies that null hypothesis is rejected .This means
that there is significant difference between occupation of the
respondents depending on the factor perfect planner.
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Duncan Occupation and Perfect planners
Occupation NSubset for alpha = 0.05
1 2Others 10 3.0000Service 53 3.1604
Professional 26 3.3462Retired 9 3.3889 3.3889
Business 12 4.0000Sig. .264 .054
The Duncan table shows that the opinions of the respondents belonging to
the Business fall in the second group while the other category employee
falls in the first group. This means that though there is a difference of opinion
in the respondents, By this we can infer that business group people are
perfect planners.
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Means plot occupation & perfect planners
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Perfect planners
ANOVA F Sig.Age .519 .722
Monthly income .676 .569Investment objective 1.060 .380
Influence of age, income and investment objective on perfect planners
From the above Table, it can be inferred that the significant valuesare above 0.05, which implies that null hypothesis is accepted. This
means that there is no significant difference between age
categories, monthly income groups and investment objective on
perfect planners.
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Cont...
Same analysis has been carried for other factors
High rollers
task performers
other lifestyle characteristics based on
interest
opinion
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SUGGESTIONS & CONCLUSION
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suggestionsAs found in the study, AMCs should concentrate
investors from business and professional occupationalgroups
AMCs should aggressively promote their systematic
investment plan among lower and middle income groups
AMCs should promote long term schemes that should
fulfill investors future needs
Higher income groups must be attracted according to
their investment objective
Investors should be made aware of different investment
schemes because they make their own investment
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CONT
Schemes should be targeted in such a way they shouldcorrelate with age, occupation and income of investors
Investors should be educated about investment schemes
that most suits their purpose
The distribution service must be effectively and efficiently
managed to gain more investors
More awareness program should be done in banks togain more market
It is imperative to be innovative a head of market trends
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Conclusion
The present study has important implications regardingthe profile of mutual fund investors and it has come out
with certain interesting facet of mutual fund investor. The
mutual fund investors prefer to invest in different mutual
funds according to their investment objective. Thisconfirms that mutual fund investor behavior has a
significant relation towards their demographic profile and
investments schemes they choose. The investment
schemes should be designed and promoted in such a way
it should fulfill investors investment objective. Theschemes can be effectively marketed by using different
promotional strategies.
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Chaithanyakumar s