Customer Behavior towards Purchasing Mutual Fund- A Study of Dehradun City
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Abstract
-Mutual Fund is a retail product designed to target small investors, salaried people and others who are intimidated by the mysteries of stock market but, nevertheless, like to reap the benefits of stock market investing. At the retail level, investors are unique and are a highly heterogeneous group. Hence, their fund/scheme selection also widely differs. Investors demand inter-temporal wealth shifting as he or she progresses through the life cycle. This necessitates the Asset Management Companies (AMCs) to understand the fund/scheme selection/switching behavior of the investors to design suitable products to meet the changing financial needs of the investors. With this background a survey was conducted among 200 Mutual Fund Investors in Dehradun city to study the factors influencing the fund/scheme selection behavior of Retail Investors. This paper discusses the survey findings. It is hoped that it will have some useful managerial implication for the AMCs in their product designing and marketing.
Now mutual fund industry is facing competition not only from within the industry but also from other financial products that may provide many of the same economic functions as mutual funds but are not strictly MFs, and in this research project it is discussed which financial product customer like most and the reason why an investor wants that financial product and the reason found with the help of the survey conducted.
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WEBSITES
I. www.amfiindia.com
II. www.capitalmarket.com
III. www.mutualfundindia.com
IV. www.valueresearch.com