life style characteristics of mutual fund investors (2)

7/30/2019 Life Style Characteristics of Mutual Fund Investors (2)

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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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life style characteristics of mutual fund investors (2)

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