A Study on Investors Perception towards Large-cap Equity Oriented Mutual Funds in India

Abstract

Purpose: The large-cap equity fund is one of the mutual fund schemes and fund mobilized under this scheme is invested in equity securities of large-capitalized companies. This scheme is highly preferred scheme for investment by those who want to receive reasonably high return with less risk. The present study analyzes the profile, perception and satisfaction level of retail investors in large-cap equity funds. Methodology: This study is based on both primary and secondary data. The statistical tools used for analysing the data are percentage and likert five scale method. Findings: The investors’ profile and perception analysis revealed that the majority of the investors are mid-aged people and men investors are more than women. Most of the investors have graduation and post graduation and belong to the small saving group. The investors from employment occupation are significantly high. The advertisement and internet is the main source of information for most of the investors. It is found that majority of the investors preferred the existing schemes in open-ended category. The Systematic Investment Plan (SIP) is highly preferred mode of investment by the investors. Similarly Investors satisfaction analysis revealed that more than fifty percent of respondent investors are satisfied on return aspect, but less than fifty percent of respondent investors are satisfied on risk aspect. In overall, the investors have moderately satisfied with large-cap equity fund investment on an average basis. Implications: The study implies that investors’ satisfaction needs to be improved to the maximum extent in order to retain existing investors from switching process and to attract more investors towards investment in this scheme. Originality: There are many studies undertaken on investors’ satisfaction in mutual fund investment. But, from the literature studies, it is observed that no one study has focused on investors’ satisfaction towards large-cap equity mutual funds in particular in recent days.