CHANGING PREFERENCES OF CONSUMERS FROM FIXED DEPOSITS TO MUTUAL FUNDS

Abstract

The Indian Mutual Fund Industry is more than five-decade-old and is a fast growing industry in the banking sector. Mutual Fund schemes have become the most preferred investment area in the recent years. Considering the good returns, safety, liquidity, comparative low risk and professional management, investors prefer the MF route for their investment plans. Mutual fund industry has experienced a high growth in last two decades. Rise in the number of schemes with increased mobilization of funds in past years note the importance of Indian mutual funds industry. To meet the expectations of large number of retail investors, the mutual funds need to function as successful institutional investors. Right assessment of various fund performance and comparison with other funds helps retail investors for making investment decisions properly. It provides different options to the Investor to meet to their needs and risk return profile of various categories of investors. The Investors get updates regularly through timely reports and statutory disclosures regarding the health of their schemes. SEBI has made it mandatory to give periodic reports and certain statutory disclosures by the different Mutual Funds. The main aim of this research is to study the changing preferences of consumers from fixed deposit to mutual funds with evaluation of the performance of mutual fund and comparison of these returns with fixed deposit rates and returns. Considering the interest of retail investors simple statistical techniques like means, return on investments and interest rates are used.