Research Article June
2017
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International Journal of
Emerging Research in Management &Technology
ISSN: 2278-9359 (Volume-6, Issue-6)
Investors Perception and Satisfactions Levels towards Mutual
funds in Rayalaseema Region of Andhra Pradesh
Geetha Sineni
Reg.No:PP MAN 151
Research Scholar in Rayalaseema Univsersity,
Deapartment of Management,
Kurnool, Andhra Pradesh, India
Dr. S. Siva Reddy
Assistant Professor,
Department of Commerce,
Sri Ramakrishna Degree & PG College(Autonomous)
Nandyal, Kurnool(Dist) Andhra Pradesh, India
Abstract—
utual Fund has emerged as a tool forconfirming one’s financial security. As statistics and awareness
arerising, more and more people are enjoying the benefits of investing in mutual funds. Mutual funds
have originated in the USA and have become so popular that they have almost overtaken the bank
deposits and total assets of insurance funds. In India, the Mutual Fund industry had its origin with the establishment
of UTl Mutual funds have all come forward with different schemes suitable to the need of saving populace.It is in the
backdrop of some of these encouraging statistics that the Indian mutual fund industry has fostered itself. Since 1990
were when the mutual fund space unlocked up to the private sector, the industry has gone through a long path,
adapting itself continuously, to the changes that have come along. Progress in Assets Under Management (AUM)
veteran has been exceptional, growing at a CAGR(Compound Annual Growth Rate) of 34% over the last four years
the sale of mutual funds has recovered over the last few quarters, which implies regained assurance of stakeholders,
endeavoring to look at alternate investment opportunities and any consequent higher returns, though the markets
continue to be changing. The objectives of the study are to identify the rural and semi-urban investor's perceptions on
mutual funds and to analyse the satisfaction level of investors in Rayalaseema region of Andhra Pradesh. By adopting
convenience sampling, 600 respondents living in four districts of Rayalaseema (Anantapuram, Chittoor, Kurnool, and
YSR Kadapa) were selected for this study. Simple statistical tools are used for analysing the data whatsoever collected
in this study. The outcomes of the study have importantsuggestionsfor mutual fund companies. Considerate of semi-
urban and rural areas investor's perception is asignificant task for the asset managers to be effective in facing many
tasks and prospects.
Keywords— Assets Under Management(AUM),Asset Management Company (AMC); CAGR(Compound Annual
Growth Rate) ;Investment Option; Investor; Liquidity; LPG; Mutual Fund, factor analysis.
I. INTRODUCTION
Mutual funds are becoming the first investment convince for small investors who have a keen interest in the
stock market and are virtually replacing the fixed deposits,post office savings, banks, GPF, and other small economies. In
the current competitive scenario, the developed countries whose mutual funds are in India are becoming the prime
concern of the share market. The development of mutual funds in India is conventional to go beyond the growth of
banks, finance companies, and insurance companies in beside future.
Beginning of mutual funds goes back to the 18th century when it was first launched in Netherlands, and later
Mutual funds saw their rebirth in Switzerland and US in the 19th century At the time of 1964, the mutual funds had
entered into the Indian capital market to (or “intending to”) render the retail investors the advantage of diversification of
risk, assured returns, professional management. Since then they have grown through phenomenon senses regarding the
number, the size of operations, investor's base and scope.
The Liberalization, Privatization and the entry of private sector and foreign players into this industry. Therefore,
this has emanated as a highly competitive financial services sector today. Withjust one player in 1964, the industry has
grown phase by phase andby the end of March2016. 39 mutual funds were operating in the industry with assets under
their management amounting to Rs. 1,828,151 crores.
The changes in a number of the regulatory framework for investors‟ protection in generaland mutual fund
industry after the stock market debacle in 1992 attracted the investorstowards the safe investment vehicle of mutual
funds. In particular, the mutual funds, which are originally proposed for retail investors, have turned out to be the huge
Investment linkage for wealthy and institutional investors. However, the mutualfund industry started facing a problem of
outlay from 1998 with the failure of US-64, theflagship mutual fund scheme when its NAV turned negative.
1.1. Benefits of Investing in Mutual Funds:
Transparency:
Funds provide investors with updated information about the markets and schemes through factsheets, offer
documents, annual reports, etc
M