Indian Mutual Fund Industry Research Articles

A Comparative Study of the Mutual Fund Schemes of Reliance and Unit Trust of India

The mutual fund industry has experienced phenomenal growth in the past two decades. The increase in the number of schemes with increased mobilisation of funds in the past few years shows the importance of the Indian mutual funds industry. Proper assessment of various fund performance and their comparison with other funds helps retail investors for making investment decisions. Among various financial products, mutual fund ensures the minimum risks and maximum returns to the investors. The development of various mutual funds products has proven to be one of the most catalytic instruments in generating momentous investment growth in the Indian capital market. In this context, close monitoring and evaluation of mutual funds have become essential. Therefore, choosing profitable mutual funds for investment is a very important issue. The main objectives of this research work are to analyse the financial performance of select mutual fund schemes of reliance and UTI through the statistical parameters such as alpha, beta, standard deviation, r-squared, Sharpe ratio. The findings of this research study will be helpful to investors for their future investment decisions.

Comparative analysis of sip with Traditional Investment Options In India

The mutual fund industry in India has seen dramatic improvements in terms of quantity as well as quality of services. To attract the investors towards this industry different options of investment are provided to the investors and different innovations are tried in terms of funds offered and as well as for ways of investment. The major improvement in the industry which is still so famous is investment through SIP i.e. Systematic Investment Planning, through which small investors were attracted and motivated to go for their investment in mutual funds. Earlier the investors had options like bank recurring deposit, public provident fund, post office deposit ( such as NSC, KPV, etc) and for particularly for the mutual fund investors had to go with lump sum investment .

The Indian Mutual Fund Industry: From Inception to Advancement

Inception of the Indian mutual fund industry was a consequence of progressive liberalization that brought about dramatic changes in the Indian financial system. Liberalization of economic policies caused rapid growth of the capital market, money market, and financial services industry. The Indian mutual fund industry is one of the major results of financial novelty in the Indian context. However, its popularity as an investment option is still debatable. The study was concerned with the journey of the Indian mutual fund industry since its beginning in India. To serve the purpose, the study focused on the following areas : historical perspectives of the Indian mutual fund segment, growth aspect of the mutual fund industry, and the last section highlighted major challenges, issues, and growth prospects of the Indian mutual fund industry.

The Indian Mutual Fund Industry: From Inception to Advancement

The Indian Mutual Fund Industry: From Inception to Advancement

Growth of Mutual Fund Industry in India

Mutual funds (MFs) are the financial intermediaries that collect the savings from the investors and invest them into securities in capital market and earn income from it. The earning is distributed among the investors in the form of return on investment and they reinvest some portion of their earnings again in MFs. Professionals manage such funds for consideration. Through MFs, an investor can have exposure to various investment avenues such as money market, fixed income to high yield debts, gold and other commodities, real estate equities, etc. Even investment in India and abroad is now accessible through investment in MFs in India. Unit Trust of India (UTI) was the first mutual fund in India established on 1964. Mutual fund industry in India received a boost when it was thrown open to private sector in 1993 and to foreign MFs in 1994. Till December 2014, there were 45 MFs in India with seven in public sector and 38 in the private sector. The study is conducted to find out the major players in the mutual funds industry in India both in public and private sectors. It also investigates the various resources from which they mobilised the funds and trends of their investments in the various schemes offered by them. This study is an attempt to find out the growth of mutual funds industry in India.

Attribute-based perceptual mapping of mutual fund schemes: a study from an emerging market

The mutual fund industry in India has undergone considerable changes and is maturing over the years. The rationale behind the present study is to know the perception of financial advisors towards few selected equity mutual fund schemes. This study attempts to find that whether the perception of financial advisors is based on real numbers or personal preferences. The technique called multidimensional scaling (MDS) technique is used to figure out the perceptual map, on the given responses. The researchers have concluded that there is a gap between the perception of the financial advisors on the various attributes of the mutual fund schemes and the actual figures. Thus, to enhance the confidence of investors in mutual funds, the advisors must resort to proper technical and fundamental analysis of the schemes instead of following their personal preferences or biases.

Perception and Behaviour of Mutual Fund Investors

The mutual fund industry in India has emerged as a dominant financial intermediary in Indian capital market. As of April 2014, the industry comprising of 45 Asset Management Companies managed financial assets of Rs. 14000 billions contributed by 80 million investors spread all over the country. Majority of the funds (approximately) 96% of the funds are open-ended type and the remaining 4% of the funds are close-ended type. The assets have been grown at a compounded annualized growth rate of 48 per cent over a period of five decades, 1964–2014 of mutual funds in the country (as per figure available from association of mutual funds in India). The impressive growth can be attributed to the entry of commercial banks and the private players in mutual funds industry coupled with the rapid growth of the Indian capital markets during the last couple of years.

A Study on Mutual Fund Investors Behaviour with Specific Reference to Akola

Mutual funds have emerged as an important segment of financial markets and have delivered value to the investors. Mutual funds investment is not very much risky as compared to investment in stock market. Indian mutual fund industry provides reasonable options for an ordinary man to invest in the share market. The surplus of schemes provides variety of options to suit the individual objective whatever their age, financial position, risk tolerance, and return expectations. Important outcome of the study is investors fund selection varies as per age and villages not affected by education level and occupation. The factors that make impact on decision making are past performance and reputation of fund, withdrawal facility and company services. Investors are overconfident in term that they have selected best scheme. Investor acknowledges gains are due to better result of investing companies and losses are the effect of incorrect information provided by the friends. As of now big challenge for the mutual fund industry is on investor awareness and to spread further to the semi-urban and rural areas.

Performance Analysis of Select Equity and Debt Oriented Mutual Funds

Private sector mutual funds entered the Indian mutual fund industry after the economic reform in 1991. Consequently, different private asset management companies launched various schemes and by the end of the decade the industry was flooded with different schemes. Against this backdrop, the criteria of selecting mutual fund became more complex in context of accommodating both return and risk measurement. For this reason fund managers are more concern to retain the investors’ confidence. The goal of this paper is to compare the performance of equity and debt oriented mutual fund schemes based on risk- return relationship model and measures.

Switching Behavior and Problems Encountered by the Investors in the Mutual Funds Market

In the past one year, Nifty has declined 16% but except some sectors like FMCG and pharma sector funds, other sector funds have failed to beat their respective benchmarks.In the past one year, the Indian Mutual Fund markets have declined 16 percent whereas the FMCG sector funds (up 14.49%) and pharma sector funds (down 3.17%) have been the least impact. Among the laggards, energy & power sector funds (down 28.10%) topped the list followed by infra sector funds (down 26.33%) the sector funds category (except FMCG and pharma sector funds) has failed to outperform their respective sector benchmarks in the span of one-year.Due to all these reasons the investors may switch from one Mutual Fund to another in same family funds or switch from one family to another. It depends upon their mindset, current market conditions and the performance of the funds. These switching behaviour among the investors were usually seen in the market since the investors were frequently selling their Mutual Funds and invest in some other funds in expectation of high returns. It is highly imperative to examine the reasons for switching among the investors for some policy implication.Of late, fund house have been merging sector funds or theme based funds into diversified equity funds to broaden their investment objective to provide better returns in the long run.The reasons for switching were drawn from various reviews (Bal and Mishra, 1990; Barua and Srinivasan, 1982; Agarwal, 1992; and Subash and Mukesh, 1992).In the present study the reasons for switching was fourteen. The investors were asked to rate these fourteen reasons at five point scale from highly agree to highly disagree. The assigned marks on these scales are from 5 to 1 respectively. In this reference, the present paper studies investor’s switching behaviour and problem encountered by the retail investor in Indian mutual fund industry. The paper is based upon the results drawn from a survey of 524 respondents. The study attempts to explore Indian investor’s switching behaviour and problem encountered into while investing into the mutual funds.

An Empirical Study of Investors Behavior in Indian Mutual Fund Industry

Mutual funds have emerged as an important segment of financial markets and so far have delivered value to the investors. No industry can flourish without a proper regulatory mechanism. These initiatives would help towards making the Indian mutual fund industry more vibrant and competitive. Since, the need of study has been aroused in order to see the factors influencing the retail investors to prefer investment regarding the mutual funds in Rajasthan, India. The study is based on the formulation of the following hypotheses: Hypothesis 1: Gender of the investor and risk orientation are two independent attributes of the investors. Hypothesis 2: Increase in age decreases the risk tolerance level. Correlation between age and risk tolerance. In order to study the factors influencing the retail investors to prefer investment in mutual funds in Rajasthan, chi square test, analysis of one-way variance. The present study looks at the small investors purchase behavior does not have a high level of coherence due to the influence of different purchase factors. If the study provokes the authority concerned to take some positive measures for expanding the scope of mutual funds investment.

Mechanisms to be a Winner in the Indian mutual fund Industry: A Case Study of HDFC AMC

The Indian mutual fund market is still under penetrated, as even in today’s scenario, most of India’s population prefers to channelise their savings into fixed deposits, real estate, and gold rather than in the capital market. The given case study discusses the practices to be followed by an asset management company (AMC) to spread out its market share. The case is based on the largest AMC in India, according to market capitalization, which is HDFC Asset Management Company Limited. HDFC as an AMC is shouldering its responsibilities quite well and can offer some operational tactics to be followed by other mutual fund market participants. The foundation for its success lies in the basic functionalities of the organisation and its belief in serving investors’ interest and practicing ethical values. We have not come across any earlier studies based on HDFC AMC in consideration of market mechanisms, corporate social activities by the firm, and practical implications for the Indian Mutual Funds Market. Through this case study, we offer some practical implications that could be helpful for other players in the Indian Mutual Fund market.

A Study of Trend in Asset Allocation among Public and Private Sector Sponsored Mutual Funds in India and its Impact on Performance of Open-Ended Equity Funds

Indian Mutual Funds industry has an existence over 5 decades in the Indian markets, with US-64 scheme of Unit Trust of India (UTI) during 1964-87 as an introduction to the Indian investor to the concept of mutual fund. This industry has ever since, seen tremendous changes till date; with the entry of public sector bank sponsored mutual funds during 1987-1993 and private sector joining then after. The MF industry had shown a remarkable growth with the existence of both public sector and private sector players, post-liberalization. Among all others, one of the mutual fund peculiarities is the fund manager’s ability of asset allocation which reflects the fund manager’s inclination for positive returns from the sectoral performance which shall directly affect the returns generated by the funds. This paper attempts to study the impact of asset allocation on the performance of the open-ended equity funds of AMC’s under study.

Building a Sustainable Independent Financial Advisor Model in India's Rapidly Changing Mutual Fund Environment

The Indian mutual fund Industry has witnessed a slew of changes initiated by Sebi with a view to protect the individual mutual fund investor since 2009, beginning with the removal of the entry load.The distribution segment has witnessed changes leading to development of new models. The Independent Financial Advisor (IFA) segment in particular has been deeply affected and has seen a substantial decline in the number of active IFAs. This paper traces the development of the IFA model in Indian context, discusses the model adopted by other distribution channels namely Banks currently. The paper further outlines a model for making the IFA segment sustainable. The paper analyses primary data of IFA studies undertaken at two different points of time during the course of the last 3 years and thereby constitutes an exhaustive research work for this segment.

Mutual Fund Industry in India

Mutual Fund Industry in India

A Study of Risk Orientation of Retail Investors in Indian Mutual Fund Industry with Special Reference to Rajasthan, India

Mutual Funds markets are constantly becoming more efficient by providing more promising solutions to the investors. Mutual funds industry is responding at a good pace and understanding the investor’s perception, still they are continuously following this race in their attempt to differentiate their products responding to sudden changes in the economy. The need of an hour is to analyze investor’s perception and expectations, and share important information to support financial decision making of mutual funds. Financial markets are becoming more exhaustive with financial products looking for new innovations and to some extent innovations are also visible in designing mutual funds portfolio but these changes need arrangement in accordance with investor’s expectations the risk they perceive, the knowledge they possess about the mutual fund industry. The risk orientation represents the risk bearing capacity and interest of the investors. Even though, the mutual funds is a risk less investment avenues in the capital market, it is also involved with market risks. The risk orientation among the investors is highly essential to invest on mutual funds and their investment behaviour. Thus, it has become essential to study mutual funds from a different angle, i.e, to focus on investor’s expectations and discover the unidentified parameters that account for their dissatisfaction.In order to achieve the objective of developing an understanding about retail investor’s risk orientation, and knowledge regarding the mutual funds a well structured questionnaire was designed. Responses of retail investors and were collected through filled questionnaire with pre-explained objectives of research. The pre-structured questionnaires were distributed among those investors only who had prior experience of mutual fund investment. For this selective systematic sampling was taken for consideration. For reliability of questionnaire 524 individual investors were selected from six cities of Rajasthan namely Ajmer, Jaipur, Udaipur, Jodhpur, Bikarer and Kota. Main focus of questionnaire was to obtain responses of retail investors regarding how they evaluate mutual funds services in terms of risk orientation, and knowledge on their investment. The main objective of this research paper includes:Objective 1 To examine whether the life cycle influences the Risk Orientation of retail investors in the state of Rajasthan.Objective 2 To study the perception of risk involved in Mutual Fund by retail investors.Present research paper identifies the Risk orientation, among the Retail investors Regarding Indian mutual fund industry with the help of Regression Analysis and Chi Square test and factor Analysis. A study at aggregate level tested by chi-square test is also depicted.

Retail Investors Participation in Indian Mutual Fund Industry -- A Matter of Concern

Indian mutual fund industry has grown during the last few decades. Since its inception in 1964, the industry has introduced several products to cater the needs of investors. Various report published by AMFI states that the retail investors share in the Asset Under Management is significantly low as compared to the developed nations. During the last 49 years, Indian mutual fund industry could not attract the retail segment in spite of having vast investment potential in this segment. This paper highlights the present state of retail investors’ participation in the Indian mutual fund industry and the key issues that need to be addressed by the fund houses.

Problems and Prospects of Mutual Funds in India

Mutual funds have already taken over banks and financial institutions in US, in offering the most optimum returns on a set of diversified portfolios. The trend in India is looking much the same with many mutual fund schemes gaining the confidence of investing populace so much that the public sector banks and financial institutions have started their own mutual funds owing to the fear of global trend. But, this does not mean that mutual funds are full of benefits or virtues. They have their own set of problems regarding costs, services, regulations, profitability, participation, financial instability and others, which have been causing big concern to investors. The growing realisation on such issues is adversely affecting the investors’ stake in mutual funds industry in India. But, fostering economic variables in the country are giving faith for its vividness. The present study is an attempt to examine the factors responsible for this contradictory state of mutual funds in India so as to throw light on its future prospects.

Mechanisms To Be a Winner in the Indian Mutual Fund Industry: A Case Study of HDFC AMC

Mechanisms To Be a Winner in the Indian Mutual Fund Industry: A Case Study of HDFC AMC

A Critical Analysis of Selected Mutual Funds in India

Mutual funds allow for portfolio diversification and relative risk aversion through collection of funds from the households and investment of the same in the stock and debt markets. Fixed- Income Funds in India are a kind of mutual fund which makes investment in debt securities that have been issued either by the companies, banks, or government. Fixed- Income Funds in India are also known as debt funds and income funds.Using various statistical measures the present study aims to evaluating the performance of a few selected income or debt mutual funds schemes of India on the basis of their daily NAV. Popularity of income schemes has only increased in the last decade. Income mutual funds they have seen tremendous growth in their number of schemes from 91 on 31st march 2001 to 330 on 31st march 2010. 506 in 2008 was the maximum ever in terms of total schemes floating in the market. This category has seen a decline only twice in the last decade. First fall was posted in the year 2003 and the second fall was reported in the year 2010. One striking fact which comes to light is the huge percentage contribution of income schemes towards the total AUM of the Indian mutual funds industry.