9.Investors' Perception About Mutual Fund. Financial Markets

The information is presented in a direct manner, lacking unnecessary information, and written in a style which is easy for a range of readers to understand. They provide a thorough description of the development of the instrument, the norm population used, and an example of the survey, thus enabling the study to be replicated. A table of the frequencies and percentages of respondents’

In the United States, a society plagued by capitalism, investing has become a way of life. To most Americans it begins with opening a savings account and slowly allowing that money to grow through the compounded interest rate over the years. While it may not seem like a big step in generating more income, nonetheless, this is a positive movement in the market of investments. With the many types of investments available knowing which are reliable, or safe, or yield good returns, are just some of the questions on the investors mind. Within each asset class there are investments to suit different kinds of risk, duration, returns and liquidity.

Some studies do examine the portfolio management along with the market volatility, impact however; the scope is often limited to a Bangalore. This study takes a look at the awareness of Mutual fund industries its growth in India. If one considers the transactions by domestic mutual funds (MFs) in the equity market an indicator of domestic investor participation in the stock market, domestic investors have been active participants in recent times. But the common perception that domestic investors lack market-moving influence is not entirely based on fact.

Mutual funds are an easy, convenient way to invest, without having to worry about choosing individual stocks. A mutual fund can be defined as a single portfolio of stocks, bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by

As it was already mentioned in research design, one type of primary data used for this research was questionnaire. Questionnaire consisted of 18 questions and the sample size was 58 respondents.

The objective of this chapter is to describe the procedures used in the analysis of the data and present the main findings. It also presents the different tests performed to help choose the appropriate model for the study. The chapter concludes by providing thorough statistical interpretation of the findings.

In today’s day and age, there is a tremendous number of financial vehicles that each and every investor can place their money in. Investors place their money into each of these financial tools in order to make any sort of profit. Obviously, investors do whatever is in their power to make the largest profit possible. Bonds, stocks, and mutual funds are three of these many options for financial growth. Unfortunately, people that may have heard of these do not take advantage of them at all. Bonds, stocks, and mutual funds are relatively simple financial vehicles and people today do not jump on the opportunity to invest. A large majority of people do not explore their options when it comes to allowing their money grow exponentially.

Collecting, analysing and interpreting financial data has always been the important objectives of the members in the financial markets, ranging from governments, big time billionaire corporations to even the small individual financial analysts. This is because by gaining a keen understanding of the current financial situation in the market, another objective can be pursued, which is forecasting. One of such forecast is regarding investor expectations in the market. Investors often refer to individuals who commits money to investment products with the expectation of financial return. Since most investors become the main pillars of finance for corporations, by gaining an understanding of

3. How the performance of the mutual fund is directly linked to other aspects of the market.

2.4 Collection and analyses of data: The primary data should be collected through structured questionnaire by the researchers from the selected respondents. The secondary data will be collected through personal contact and visit. The data so collected will be analyzed by different statistical techniques and methods.

It took another 150 year for pooled investments to arrive to the United States. On March 21, 1924, Massachusetts Investors Trust launched the first modern day mutual fund, providing individual investors with a cost effective way to achieve a diversified portfolio. Moreover, individual investors gained the benefit of having their investments managed by professionals. Since then, academics and practitioners alike have debated ad nauseam the value-add delivered by fund managers. Jensen (1968) evaluated the performance of mutual funds from 1945 to 1964 and concluded that on average, fund managers were not able to predict security prices well enough to outperform the market. Concurring with Jensen, Samuelson (1974) found that it was nearly impossible to find a fund manager who can outperform the market by holding a subset of securities of the market. Henceforth, Samuelson advocated for the creation of a naïve portfolio that tracks the S&P 500 Index (a market proxy). On August 31, 1976, the Vanguard Group launched the first index fund for individual investors, the First Index Investment Trust. The introduction of this index fund initiated the active-passive debate; the persistent dialogue around mispriced securities sustains

When an investor considers to investment money, the first challenge that almost every investor face is numerous options to choose from stocks, bonds, mutual funds & so on. “Equity is one the key asset class which beats inflation in the long run.” (The Times of India, 5th Feb 2015). “Equity mutual funds help investors generate better inflation-adjusted returns, without spending a lot of time and energy on it. While most people consider letting their savings 'grow ' in a bank, they don 't consider that inflation may be nibbling away its value.” (The Hindu, 14th March 2016). Purpose of this study is to analyze the past performance of three global equity mutual funds of State Street Global Advisors (SSGA) & Northern Trust (NT) on the basis of equivalent investment style, asset manager, historical returns & application of statistical tools. This will help in understanding performance of mutual funds in terms of risk & return, asset manager’s investment strategies & asset manager’s performance.

Becoming major suppliers of funds in the financial market, mutual funds have become a very popular investment in recent years. Because of the diversity of investments, portfolio management’s expertise, and liquidity, mutual funds have grown rapidly over the past few years. One of the most popular group’s investing in mutual funds is people with self-driven retirement plans. This provides professionally handled money and pooled risk. There are more than 8,000 different mutual funds, with more than 88 million households owning shares of one or more.

The Equity Index Fund (GEQZX) is a Biblically Responsible Investment (BRI) fund created by GuideStone Funds. The objective stated in the prospectus is to gain the same performance as the S&P 500 Index by investing in the same components. The screening process is to recreate the S&P 500 by investing in the same assets which include 486 different holdings. All of the companies in the mutual fund will have the same weight as they do in the index it is following. The mutual fund does maintain some cash with a 2% allocation for liquidity purposes. The mutual fund has shared close returns. The returns are within 1% of the benchmark, S&P 500, as shown in Figure 1 acquired from GuideStone’s website. There are two share classes which are Investor and Institutional. To invest in the Investor Class shares a minimum initial investment of $1,000 is required. Subsequent investments must be at least $100. The management fee is 0.10%. The gross expense ratio is 0.43%. The net expense ratio is 0.42%. There is no 12 b-1, Redemption fees, or Sales Charge. The portfolio turnovers for each year between January 1, 2011 and December 31, 2015 were 4%, 3%, 4%, 5%, and 6% respectively. The fund’s sector allocation is 12.8% Consumer Discretionary, 8.8% Consumer Staples, 7.8% Energy, 16.6% Financial Services, 12.6% Health Care, 10.7% Industrials, 20.8% Technology, 3% Materials, 3.1% Telecommunications, and 3.8%

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