| Title : | Attitude and selection behavior of individual mutual fund investors in Nepal | | Material Type: | printed text | | Authors: | Mansun K.C, Author | | Publication Date: | 2016 | | Pagination: | 72p. | | Size: | GRP/Thesis | | Accompanying material: | 5/B | | General note: | Including bibilography | | Languages : | English | | Descriptors: | Mutual funds
Nepal
| | Class number: | 332.632 | | Abstract: | Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being part of financial market mutual funds industry is responding very fast by understanding the dynamics of investor‟s perception towards rewards. They are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy (Walia & Kiran, 2009). Mutual funds provide an option of investing without getting loss in the complexities. Most importantly, mutual funds provide risk diversifications among the primary tenets of portfolio management. Majority of the investors are not necessarily well qualified to apply the theories of portfolio structuring to their holdings and hence would be better off leaving the job to a professional. The basic needs which an investor tries to fulfill through the investment includes security of original capital, wealth accumulation, comfort factor, tax efficiency, life cover, income, simplicity and ease of withdrawal (Ajaz& Gupta, 2012). Sinday & Zanvar (2010) analyzed the effect of demographic factors on investor‟s level of risk tolerance regarding the choice of investment. The result of the study showed that demographic factors of investors such as age, educational qualification, income level, effect the investor‟s level of risk tolerance.Chetan & Sharma (2014) examined the awareness among the investor community in choosing the best mutual fund scheme. Study showed that sufficient amount of information about mutual funds is not available publicly. The result shows that age and income level are negatively related to favorable attitude towards mutual fund. From above discussions, it can be concluded that studies devoted to attitude and selection behavior of individual mutual fund investors are of greater significance. It has become imperative to study mutual funds from a different angle, i.e., to focus on investor‟s expectations and uncover the unidentified parameters that account for their dissatisfaction. Taking a lead from this, an attempt is also made to find out the important mutual fund product attributes that are essential to influence the purchases decision of the investors.
The major objective of the study is to analyze the investor‟s perception towards mutual fund. The other specific objectives are to evaluate the awareness level of investor regarding mutual fund, to examine the investment pattern with respect to demographic variables like age, gender, education level and income level, to find out the factors individual investor consider in investment choices of mutual fund schemes, to analyze factors investor values in forming favorable attitude toward mutual fund.
All the data required for this analytical study has been obtained mainly from primary sources. To reduce the complexity of data responses questionnaire were distributed, among those investors only who had prior experience of mutual fund investment. Besides, an effort has also been made to describe factors and other demographic characteristics of an individual investor contributes to selection behavior of mutual fund schemes in Nepal consisting of 165 respondents taken from 8 investment banks, 3 brokerage firms and 2 independent research and management firms. The questions were asked in the form of Likert scale questions. The Likert scale questions of different variables were measured in 5 point scale. The study has identified three factors which reflect investor‟s favorable attitude towards MF, and in selection behavior of different MF schemes. Among them the most important is monetary and financial factor, Information and image factor followed by market awareness if individual investors.Majority of investors i.e. 40.6 percent confident in their abilities, 57 percent take full charge of their investment decision, 58.2 percent have specific acquired investment skills and 52.1percent have knowledge about the how capital market works and how to reap benefit through transactions. Majority of respondents (43 percent) are partially aware about mutual fund investment, 23 percent of respondent are only aware about their invested particular fund schemes. The first preferred factor that is responsible for investment in mutual fund is return potential, second ranked factor is affordability, third diversification, fourth professional management and final and fifth rank is liquidity. The study concludes that financial factor, market awareness factor, Information and image factor, age, occupation, qualification and annual income of investor have significant effect over forming favorable attitude of investor towards mutual fund and in selection behavior mutual fund schemes. The major conclusion of the study is that increase in age of the investors leads to decrease in the investment in mutual fund. Similarly, better the monetary and financial position of the investors, favorable would be the attitudes towards investment in mutual fund. Likewise, good market information also leads to favorable attitudes towards mutual fund investors. The study also shows that market related information condition have positive relationship with favorable attitude towards investment in mutual fund which indicates that the information condition about mutual fund will encourage investors to demonstrated favorable attitude and willingness to invest in different fund schemes. |
Attitude and selection behavior of individual mutual fund investors in Nepal [printed text] / Mansun K.C, Author . - 2016 . - 72p. ; GRP/Thesis + 5/B. Including bibilography Languages : English | Descriptors: | Mutual funds
Nepal
| | Class number: | 332.632 | | Abstract: | Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being part of financial market mutual funds industry is responding very fast by understanding the dynamics of investor‟s perception towards rewards. They are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy (Walia & Kiran, 2009). Mutual funds provide an option of investing without getting loss in the complexities. Most importantly, mutual funds provide risk diversifications among the primary tenets of portfolio management. Majority of the investors are not necessarily well qualified to apply the theories of portfolio structuring to their holdings and hence would be better off leaving the job to a professional. The basic needs which an investor tries to fulfill through the investment includes security of original capital, wealth accumulation, comfort factor, tax efficiency, life cover, income, simplicity and ease of withdrawal (Ajaz& Gupta, 2012). Sinday & Zanvar (2010) analyzed the effect of demographic factors on investor‟s level of risk tolerance regarding the choice of investment. The result of the study showed that demographic factors of investors such as age, educational qualification, income level, effect the investor‟s level of risk tolerance.Chetan & Sharma (2014) examined the awareness among the investor community in choosing the best mutual fund scheme. Study showed that sufficient amount of information about mutual funds is not available publicly. The result shows that age and income level are negatively related to favorable attitude towards mutual fund. From above discussions, it can be concluded that studies devoted to attitude and selection behavior of individual mutual fund investors are of greater significance. It has become imperative to study mutual funds from a different angle, i.e., to focus on investor‟s expectations and uncover the unidentified parameters that account for their dissatisfaction. Taking a lead from this, an attempt is also made to find out the important mutual fund product attributes that are essential to influence the purchases decision of the investors.
The major objective of the study is to analyze the investor‟s perception towards mutual fund. The other specific objectives are to evaluate the awareness level of investor regarding mutual fund, to examine the investment pattern with respect to demographic variables like age, gender, education level and income level, to find out the factors individual investor consider in investment choices of mutual fund schemes, to analyze factors investor values in forming favorable attitude toward mutual fund.
All the data required for this analytical study has been obtained mainly from primary sources. To reduce the complexity of data responses questionnaire were distributed, among those investors only who had prior experience of mutual fund investment. Besides, an effort has also been made to describe factors and other demographic characteristics of an individual investor contributes to selection behavior of mutual fund schemes in Nepal consisting of 165 respondents taken from 8 investment banks, 3 brokerage firms and 2 independent research and management firms. The questions were asked in the form of Likert scale questions. The Likert scale questions of different variables were measured in 5 point scale. The study has identified three factors which reflect investor‟s favorable attitude towards MF, and in selection behavior of different MF schemes. Among them the most important is monetary and financial factor, Information and image factor followed by market awareness if individual investors.Majority of investors i.e. 40.6 percent confident in their abilities, 57 percent take full charge of their investment decision, 58.2 percent have specific acquired investment skills and 52.1percent have knowledge about the how capital market works and how to reap benefit through transactions. Majority of respondents (43 percent) are partially aware about mutual fund investment, 23 percent of respondent are only aware about their invested particular fund schemes. The first preferred factor that is responsible for investment in mutual fund is return potential, second ranked factor is affordability, third diversification, fourth professional management and final and fifth rank is liquidity. The study concludes that financial factor, market awareness factor, Information and image factor, age, occupation, qualification and annual income of investor have significant effect over forming favorable attitude of investor towards mutual fund and in selection behavior mutual fund schemes. The major conclusion of the study is that increase in age of the investors leads to decrease in the investment in mutual fund. Similarly, better the monetary and financial position of the investors, favorable would be the attitudes towards investment in mutual fund. Likewise, good market information also leads to favorable attitudes towards mutual fund investors. The study also shows that market related information condition have positive relationship with favorable attitude towards investment in mutual fund which indicates that the information condition about mutual fund will encourage investors to demonstrated favorable attitude and willingness to invest in different fund schemes. |
|
Refine your search Apply to external sourcesAttitude and selection behavior of individual mutual fund investors in Nepal / Mansun K.C
