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PUNJAB AGRICULTURAL UNIVERSITY

Synopsis of Research Proble of !BA S"#$en"

Name of the student : AMANDEEP KAUR GREWAL

Admission No : L-2014-!-0"-MA

Ma#o$ !u%#e&t : usiness Mana'ement

(ie)d of !*e&ia)i+ation : (inan&ia) mana'ement

Mino$ !u%#e&t : E&onomi&s

Ma#o$ Ad,iso$ : D$ Mohit Gu*ta

%& Ti"le

A../.UDE AND EA/R .WARD! !3!.EMA./ /NE!.MEN. PLAN!: A !.UD3 (

MU.UAL (UND /NE!.R! /N LUD/ANA /.3

'& In"ro$#c"ion

/n,estment is a&ti,it5 that is en'a'ed in %5 *eo*)e 6ho ha,e sa,in'7 o$ in othe$ 6o$ds *eo*)e

in,est thei$ sa,in's /n,estment in,o),es em*)o5ment of fund 6ith the aim of a&hie,in' additiona)

in&ome o$ '$o6th in ,a)ues .he$e a$e )a$'e num%e$s of in,estment a,enues fo$ in,esto$s Li,esto&87

)and and *$e&ious meta)s a$e some of the t$aditiona) in,estment o*tions Du$in' 19th &entu$57

$e,o)ution in in,estment too8 *)a&e th$ou'h the %an8in' s5stem as it *$o,ide man5 in,estment o*tions

)i8e (ied de*osits ;(Ds assets fo$ a &ommon in,estment o%#e&ti,e .he

mone5 that is &o))e&ted f$om in,esto$s is then in,ested in the &a*ita) ma$8et su&h as sha$es7 de%entu$es

and othe$ se&u$ities %5 fund mana'e$ An5 &a*ita) 'ains o$ )osses f$om su&h in,estments a$e *assed on

to in,esto$s in *$o*o$tion of the num%e$ of units he)d %5 them

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/t is ad,isa%)e to s*$ead out the in,estments $athe$ than )um*-sum ones e$e7 Mutua) (und

*$o,es to %e %enefi&ia) as the5 *$o,ide featu$es )i8e s5stemati& in,estment *)ans .he *un&h )ine

famous in the in,estment indust$5 ?!5stemati& /n,estment P)ans @ !ma)) !a,in's7 i' Retu$ns ho)ds

,e$5 6e)) No6ada5s in,estin' th$ou'h !/P is t$eated as a ,e$5 %enefi&ia) $oute of ma8in' in,estment

in mutua) funds .he *)an of in,estin' the fied amount of mone5 e,e$5 month o$ Bua$te$ o,e$ an

etended *e$iod of time 6ithout &onside$in' the ma$8et is u* o$ do6n is 8no6n as !5stemati&

/n,estment P)an

.his s&heme he)*s $edu&e the a,e$a'e &ost *e$ unit of in,estment th$ou'h a method &a))ed

Ru*ee ost A,e$a'in' Ru*ee &ost a,e$a'in' is an effe&ti,e ma$8et-time$ me&hanism that e)iminates

the need to time the ma$8ets A)) one has to do is to in,est a fied7 *$e-de&ided amount of mone5 on a

*$e-de&ided date o,e$ a )on' *e$iod of time !in&e the amount in,ested *e$ month o$ Bua$te$ is

&onstant7 one %u5s mo$e units 6hen the *$i&e is )o6 and fe6e$ units 6hen he *$i&e is hi'h As a $esu)t

the a,e$a'e unit &ost 6i)) a)6a5s %e )ess than the a,e$a'e sa)e *$i&e *e$ unit7 i$$es*e&ti,e of the ma$8et

$isin'7 fa))in' o$ f)u&tuatin'

!5stemati& in,estin' in a mutua) fund is the ans6e$ to *$e,entin' the d$a6%a&8s of eBuit5

in,estment and sti)) en#o5in' the hi'h $etu$ns.his *$ote&ts the in,esto$ f$om ma$8et insta%i)it5 and

he)*s him to d$a6 maimum %enefit as the in,estment is done at $e'u)a$ %asis i$$es*e&ti,e of ma$8et

&onditions /t 'i,es o**o$tunities to sma)) in,esto$s to in,est thei$ sma)) amount and to ta8e

ad,anta'es of finan&ia) ma$8et As &ommon in,esto$ doesn=t ha,e enou'h time and $esou$&es7 !/P

*$o,es to %e a ,ia%)e o*tion fo$ them /t is ,e$5 simi)a$ to the $e'u)a$ sa,in' s&hemes )i8e $e&u$$in'

de*osits Mutua) (und 'i,es us man5 $easons fo$ in,estin' th$ou'h !/P ne $eason is it $edu&es $is8

%e&ause of Ru*ee ost A,e$a'in' !e&ond is !/P &an %e sta$ted 6ith ,e$5 sma)) amount of mone5 !o

it is )i'hte$ on the 6a))et the$ is timin' the ma$8et is not ne&essa$5 Mo$eo,e$ )on' te$m finan&ia)

'oa) &an %e a)i'ned 6ith !/P as it he)*s to %ui)d fo$ futu$e %5 the *o6e$ of om*oundin' ne othe$

$eason fo$ &hoosin' !/P is that it fo))o6s dis&i*)ined a**$oa&h to6a$ds in,estment and thus he)*s in

&ont$o))in' the emotions and he)*s us in&u)&ate the ha%it of sa,in' and %ui)din' 6ea)th fo$ the futu$e

.he in,estment *$io$it5 of a *e$son is %ased on se,e$a) fa&to$s )i8e his>he$ a6a$eness7

en,i$onment7 )e,e) of e*osu$e7 intensions7 %e)iefs7 $es*onsi%i)ities and so on E,e$5 indi,idua) is

uniBue %e&ause of the indi,idua)it5 of his>he$ %eha,io$a) t$aits .hese t$aits *e$ha*s7 assume a

&om*$ehendin' the need fo$ in,estments and ma8in' the ne&essa$5 de&ision 6ith the he)* of

dis&$etion .his uniBueness indeed7 %e&omes an ine,ita%)e &ha))en'e to %e ana)5+ed /f e*)o$ed

*$o*e$)57 the unde$*innin' $ea)it5 of dis&$e*an&ies in the in,estment *)annin'7 a**a$ent)5 %$an&h out

due to this uniBueness of e,e$5 indi,idua) 6hen he>she tu$ns to %e an in,esto$ !in&e in,estin'

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th$ou'h !/P7 has %e&ome one of the ma#o$ inst$uments7 it %e&omes ine,ita%)e to stud5 the attitude and

%eha,io$ of mutua) fund in,esto$s to the same

/n this &ontet7 this stud5 is aimed to a&hie,e the fo))o6in' o%#e&ti,es:

1< .o stud5 the im*o$tan&e of sou$&es of info$mation $e'a$din' s5stemati& in,estment *)an

2< .o stud5 the attitude of mutua) fund in,esto$s to6a$d s5stemati& in,estment *)an

"< .o stud5 the %eha,io$ of mutua) fund in,esto$s to6a$d s5stemati& in,estment *)an

(& Re)ie* of Li"era"#re

A %$ief $e,ie6 of $e)e,ant studies has %een *$esented in fo))o6in' se&tion

/**o)ito ;1992< ana)5+ed that ,i'i)an&e amon' mutua) fund in,esto$s *)a5s an im*o$tant $o)e

in 'ene$atin' an effi&ient eBui)i%$ium in that ma$8et .he $esu)ts indi&ated that in,esto$s $ea&t to ne6

info$mation a%out *$odu&t Bua)it5 in the mutua) fund indust$5 and the5 $ea&t dis*$o*o$tionate)5 6he$e

the e*e&ted *a5offs a$e hi'he$ Mo$eo,e$7 $etu$ns 6ithin mutua) funds a$e se$ia))5 &o$$e)ated

a*on et al;199C< in,esti'ated the manne$ in 6hi&h &onsume$s ma8e in,estment de&isions

fo$ mutua) funds /n,esto$s $e*o$ted that the5 &onside$ man5 non*e$fo$man&e $e)ated ,a$ia%)es When

in,esto$s a$e '$ou*ed %5 simi)a$it5 of in,estment de&ision *$o&ess7 a sin')e sma)) '$ou* a**ea$s to %e

hi'h)5 8no6)ed'ea%)e a%out its in,estments o6e,e$7 most in,esto$s a**ea$ to %e nai,e7 ha,in' )itt)e

8no6)ed'e of the in,estment st$ate'ies o$ finan&ia) detai)s of thei$ in,estments

Le''io and Lien ;2001< found Do))a$ ost A,e$a'in' st$ate'5 to %e su% o*tiona)

fo$m a mean ,a$ian&e e*e&ted uti)it5 of 6ea)th *e$s*e&ti,e .he5 int$odu&ed a %eha,io$a) $ationa)e

fo$ the *e$sisten&e of do))a$ &ost a,e$a'in' Usin' *$os*e&t theo$5 to &$eate an a)te$nati,e uti)it5

fun&tion that does not $eBui$e in,esto$ to %e st$i&t)5 $is8 a,e$se7 the5 em*i$i&a))5 tested statman=s

&on#e&tu$e fo$ fou$ in,estment st$ate'ies and fo$ a)te$nati,e sto&8 in,estments .he5 found that )oss

a,e$sion does not e*)ain the eisten&e of do))a$ &ost a,e$a'in' in,estment st$ate'5

Ra#es6a$i and Ramamoo$th5 ;2002< studied the finan&ia) %eha,iou$ and fa&to$s inf)uen&in'

fund>s&heme se)e&tion of $etai) in,esto$s %5 &ondu&tin' (a&to$ Ana)5sis usin' P$in&i*a) om*onent

Ana)5sis7 to identif5 the in,esto$=s unde$)5in' fund>s&heme se)e&tion &$ite$ia7 so as to '$ou* them into

s*e&ifi& ma$8et se'ment fo$ desi'nin' of the a**$o*$iate ma$8etin' st$ate'5 5 unde$standin' of the

diffe$ent mutua) fund *$odu&ts7 the in,esto$s &an ea$n %ette$ $etu$ns eha,io$ of an in,esto$ &han'es

e,en 6ith &han'e in sin')e fa&to$ of fund

ha)am ;200"< found the im*o$tant fa&to$s inf)uen&in' the in,estment on mutua) funds a$e

$etu$n7 &a*ita) a**$e&iation7 ta sa,in' *u$*ose7 )iBuidit57 ma$8eta%i)it5 and safet5 Ma#o$it5 of the

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in,esto$s *$efe$ in $ea) estate in,estments7 fo))o6ed %5 mutua) fund s&hemes7 'o)d and *$e&ious

meta)s Ma#o$it5 of the in,esto$s in mutua) funds a$e em*)o5ees .he5 *$efe$$ed on)5 '$o6th o*tions

&om*a$ed to in&ome o*tions Ma#o$it5 of the in,esto$s a$e ,e$5 mu&h inte$ested to ta8e the $e-

in,estment %enefit $athe$ than the $e'u)a$ di,idend

Ran'anathan ;200C< studied that finan&ia) )ite$atu$e &onside$s that in,esto$s a$e $ationa) ut

that is not the &ase as the in,esto$s %eha,io$ is d5nami& fa&to$7 6hi&h is %ased u*on %e)ief7 *e$&e*tions

and e*e&tations e eamined the ,a$ious fa&to$ inf)uen&in' the %eha,io$ of in,esto$ 6hi)e se)e&tin'

funds and *uts )i'ht on %eha,io$ finan&e .he $esea$&he$ t$eated finan&ia) ma$8et as an a''$e'ate of

statisti&a) o%se$,ation7 te&hni&a) and fundamenta) ana)5sis /t studied ho6 the finan&ia) %eha,io$ of

in,esto$s affe&ts the finan&ia) ma$8et7 *a$ti&u)a$)57 the mutua) funds 6hi&h ha,e %e&ome an im*o$tant

*o$ta) fo$ the sma)) in,esto$s

!u)tana ;2010< studied that the &ha$a&te$isti&s of the /ndian indi,idua) in,esto$s and an

attem*t to dis&o,e$ the $e)ationshi* %et6een a de*endent ,a$ia%)e ie Ris8 .o)e$an&e )e,e) and

inde*endent ,a$ia%)es su&h as A'e7 Gende$ of an indi,idua) in,esto$ /ndian in,esto$s a$e hi'h

in&ome7 6e)) edu&ated7 sa)a$ied7 and inde*endent in ma8in' in,estment de&isions and &onse$,ati,e

in,esto$s ($om the em*i$i&a) stud5 it 6as found that i$$es*e&ti,e of 'ende$7 most of the in,esto$s

;41< had )o6 $is8 to)e$an&e )e,e) and man5 othe$s ;"4< ha,e hi'h $is8 to)e$an&e )e,e) $athe$ than

mode$ate $is8 to)e$an&e )e,e) /t 6as a)so found that the$e is st$on' ne'ati,e &o$$e)ation %et6een a'e

and $is8 to)e$an&e )e,e) of the in,esto$

!in'h ;2012< eaminedthat most of $es*ondents 6e$e sti)) &onfused a%out the mutua) funds

and ha,e not fo$med an5 attitude to6a$ds the mutua) fund fo$ in,estment *u$*ose /t has %een

o%se$,ed that most of the $es*ondents ha,in' )a&8 of a6a$eness a%out the ,a$ious fun&tion of mutua)

funds Mo$eo,e$7 as fa$ as the demo'$a*hi& fa&to$s a$e &on&e$ned7 'ende$7 in&ome and )e,e) of

edu&ation si'nifi&ant)5 inf)uen&e the in,esto$s= attitude to6a$ds mutua) funds n the othe$ hand the

othe$ t6o demo'$a*hi& fa&to$s )i8e a'e and o&&u*ation ha,e not %een found inf)uen&in' the attitude ofin,esto$s= to6a$ds mutua) funds

Rathnamani ;201"< &on&)uded that man5 in,esto$s *$efe$$ed to in,est in mutua) fund in o$de$

to ha,e hi'h $etu$n at )o6 )e,e) of $is87 safet5 and )iBuidit5 .he 6o$)d of in,estment has %een

&han'in' da5 to da57 so in,esto$=s *$efe$en&es to6a$d in,estment *atte$n a)so &han'ed /n the

demo'$a*hi& *$ofi)e most of the in,esto$s a$e 6i))in' to in,est on)5 10 in thei$ annua) *e$sona)

in&ome7 a$ound "9 of in,esto$s %e)on's to a'e $an'e of "1 to 40 5ea$s /n this stud5 in,esto$s 6e$e

found 6i))in' to ta8e mode$ate and )o6 )e,e) $is8 and most of the in,esto$s %e)on'ed to mode$ate

in,estment st5)e /n o$de$ to ha,e mo$e in,esto$s to in,est in mutua) funds7 mutua) fund &om*anies

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ha,e to %$in' some a6a$eness *$o'$am a%out the %enefits of in,estin' in mutua) funds7 and the safet5

and se&u$it5 *$o,ided %5 mutua) fund &om*anies in this &han'in' sto&8 ma$8et situation

Kuma$ and ansa) ;2014< found that most of the in,esto$ used to in,est in mutua) fund fo$ not

mo$e than " 5ea$s and the5 used to Buit f$om the fund 6hi&h 6e$e not 'i,in' desi$ed $esu)ts EBuit5

o*tion and !5stemati& in,estment *)annin' mode of in,estment 6e$e on to* *$io$it5 in in,esto$s= )ist

/t 6as a)so found that maimum num%e$ of in,esto$s did not ana)5+e $is8 in thei$ in,estment and the5

6e$e de*endin' u*on thei$ %$o8e$ and a'ent fo$ this 6o$8 /t is $eBui$ed f$om 'o,e$nment and

$e'u)ato$5 %odies *oint of ,ie6 that mo$e )a6s shou)d %e the$e to se&u$e the funds of in,esto$s to %e

e*)oited7 mo$e ta $e%ate shou)d %e 'i,en on mutua) fund in,estment7 *$o*e$ and effe&ti,e '$ie,an&e

s5stem7 $i'ht of in,esto$ edu&ation7 and mo$e &ont$o) on asset mana'ement &om*anies shou)d %e

the$e

/t is e,ident f$om the a%o,e )ite$atu$e that ma#o$it5 of the in,esto$s *$efe$ fist safet5 and

se&u$it5 fo$ the in,estment and se&ond)5 the5 a$e inte$ested to 'et maimum %enefits fo$ thei$

in,estments /n )i'ht of a%o,e )ite$atu$e7 the stud5 6i)) attem*t to identif5 the attitude and %eha,io$ of

in,esto$s to6a$ds s5stemati& in,estment a,enues in mutua) fund

+& Research !e"ho$olo,y

(o$ the &om*)etion of o%#e&ti,es *$ima$5 data 6i)) %e &o))e&ted f$om mutua) fund in,esto$s in

Ludhiana &it5 .he *o*u)ation of stud5 &onsists of a)) the mutua) fund in,esto$s in Ludhiana &it5 (o$

the *u$*ose of stud57 mutua) fund in,esto$ is o*e$ationa))5 defined as ?/n,esto$ 6ho has in,ested in

an5 of the eBuit5 mutua) fund s&heme of an5 asset mana'ement &om*an5 th$ou'h s5stemati&

in,estment *)an fo$ at)east t6o 5ea$s and is &u$$ent)5 *u$suin' the same A )ist of mutua) fund

%$an&hes o*e$atin' in Ludhiana &it5 6i)) %e *$e*a$ed ($om the *$e*a$ed )ist 10 %$an&hes 6i)) %e

se)e&ted $andom)5 and f$om ea&h of the se)e&ted %$an&h7 name and &onta&t detai)s of at)east 20 mutua)

fund in,esto$s 6ho a$e in,estin' th$ou'h !/P 6i)) %e &o))e&ted .he$efo$e7 sam*)in' f$ame 6i)) &onsist

of 200 in,esto$s and f$om the sam*)in' f$ame 100 in,esto$s 6i)) %e $andom)5 se)e&ted P$ima$5 data6i)) %e &o))e&ted th$ou'h st$u&tu$ed and non-dis'uised *e$sona))5 administe$ed Buestionnai$e

uestionnai$e 6i)) &onsists of ,a$ia%)es $e)atin' to sou$&es of info$mation7 attitudes and %eha,io$

to6a$ds !5stemati& /n,estment P)an A**$o*$iate statisti&a) too)s afte$ identif5in' natu$e of data

dist$i%ution 6i)) %e a**)ied

-& Collabora"ion.if any/0 Nil

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1& References

a*on N7 (it+simons G F and P$in&e R A ;199C< An indi,idua) )e,e) ana)5sis of the mutua) fund

in,estment de&isionJ Finan Serv Res%20 9-H2

ha)am G ;200"< /n,esto$s %eha,iou$a) *atte$n of in,estment and thei$ *$efe$en&es of mutua)

funds Southern Economist+%:1"-1C

/**o)ito R A ;1992

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A4VIS5RY C5!!ITTEE

Sr& No& Nae 4esi,na"ion an$ 4epar"en" Si,na"#re

1 D$ Mohit Gu*ta

;Ma#o$ Ad,iso$