A STUDY ON INVESTORS PERCEPTION TOWARDS LARGE-CAP EQUITY ORIENTED MUTUAL FUNDS IN INDIA

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. This study is based on both primary and secondary data. The study concludes that the majority of the investors are mid-aged people and men investors are more than women. Most of the investors have graduation and belong to the small saving group. The investors have moderately satisfied with large-cap fund investment on an average basis.

The large-cap equity fund is one of the mutual fund schemes and fund mobilized under this scheme is invested in equity securities of largecapitalized 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. This study is based on both primary and secondary data. The study concludes that the majority of the investors are mid-aged people and men investors are more than women. Most of the investors have graduation and belong to the small saving group. The investors have moderately satisfied with large-cap fund investment on an average basis.

…………………………………………………………………………………………………….... Introduction:-
India has largest economy in the world and its development largely depends on multiple factors, among these few are playing very important role and one among these is capital formation. The Capital formation is process which makes availability of fresh capital for economic activities and it is a one of the major functions of financial system. But, in India level of capital formation is low compared to developed countries and it lacks the economic development of the country. The urgent need of hour is that increasing the level of capital formation and making it available for industries and manufacturing activities to maximum extent. In this direction, some institutions are already actively working and motivating people to make more savings and investment in efficient way. In particular, mutual fund companies are playing very significant role in capital formation by mobilizing funds from savers especially from small saving holder. 118

Results Discussion:-
The analysis of the study has three sections. The first section explains the demographic profile of respondentinvestors and in the second third section, the perception and satisfaction of investors in large-cap equity mutual funds have been analyzed and interpreted.

Profile of the Respondent-Investors
The analysis of demographic factors is a pre-requisite for research study before it gets into the main area of the study. This is because the demographic factors are primary factors which have an influence on the investment decision of individual investors. In this view, the demographic profile of respondent-investors is presented in table 1.

Monthly Savings:
Savings is related to income and financial obligation of individuals. In turn, investment is directly related to savings. Higher savings lead to high investment or vice-versa. Keeping this in view the sample respondents are classified according to their monthly savings. The majority of the respondent-investors have savings between 11-20 percent of their income. The 84 respondents accounting 23.33 percent have savings between 20 to 30 percent in the income. And 87 respondents have savings which are less than 11 percent of income. The respondents having savings above of 30 percent are comparatively less. From the analysis, it is said that majority of the people have savings between 11-20 percent.

Investors Perception towards Large-cap Equity Mutual Funds
The perception of respondent-investors is analyzed on various aspects of mid-cap equity mutual funds. The details of it are presented in table 2.

. Investment
It is observed from the table that 221 respondents accounting 61.39 percent are investing less than 11 percent of their saving in large-equity mutual funds. The number of respondents investing 11 to 20 percent of their savings is 16.11 percent. The respondents investing higher percentage of their savings in large-cap equity mutual funds are less. The study clearly shows that majority of the respondents are investing less than 1/10 th of their saving in mutual funds.

Sources of information
From the table, it is clear that 303 number of respondents constituting 84.17 percent information relating to the mutual funds from advertisement. The internet followed by brokers and scheme information document are also a major source of information for mutual fund investors. The friends and newspapers are a source of information 121 about mutual fund for investors. From this analysis it is very clear that advertisement and internet agents are the main source of information for investors.

Types of mutual funds
From the table, it is noticed that therefore are three types in mutual funds namely open ended scheme close ended scheme and interval scheme. It is observed that out of 360 respondents, 306 respondents accounting for 85 percent are invested in open ended scheme. The 62 respondents having a share of 17.2 2 percent are invested funds in closed ended scheme. The number of respondents invested in interval scheme is 12 which constitute 3.33 percent in total number of respondents.

Nature of funds
There are two types of funds based on nature. One is new fund offer and another one is existing mutual fund scheme. In respect of large cap equity Mutual Fund, 102 respondents are chosen new fund offer for investment. These respondents constitute 28.3 3 percent in total. The number of respondents has chosen existing mutual fund scheme are 312 which accounts is 6.67 percent.

Investment way
There on two ways for investment. One is indirect investment and second one is direct investment. In respect of large cap equity mutual fund schemes, most of the investors are choosing indirect investment way that is through agents or broker for distributors. From the table it is noticed that 274 respondents have made an investment through agents or brokers.
The percentage of these respondents is 76.1 1 percent which is more than three fourth of total number of respondents. The respondents who have made an investment directly are 167 which constitute 46.3 9 percent.
Hence it is very clear that most of the mutual fund investors are investing funds through their agents or brokers.

Mode of investment
From the table it is observed that 310 respondents accounting 86.1 1 percent are making an investment in large cap equity mutual fund scheme through SIP. 89 respondents having a share of 24.7 2 percent are making investment in lump sum. The 53 respondents having a share of 14.7 2 percent are making investment in large cap equity mutual fund scheme with irregular intervals. Finally the analysis shows that SIP is the most popular mode of investment in large cap equity mutual fund scheme.

Investment Methods
It is very interestingly noticed that 242 respondents which accounts 67.2 2 percent are using auto debit system for making a payment towards investment in large cap equity Mutual Fund. The 166 respondents having a share of 46.11 percent is making an investment through cheque. The online and other kinds of methods are used by 20.33 percent and 9.17 percent respectively 8. Expected Level of Risk The above table reveals that Out of 360 respondents, 187 respondents are expecting moderate risk in their investment. The percentage of these respondents is 51.9 4 percent which is little more than one tooth of total number of respondents. The 94 respondents accounting 26.11 percent are expecting high risk. Coming to the next, 51 respondents having a share of 14.1 7 percent are expecting low risk. It is also important to note that 28 respondents having a share of 7.78 percent are not at all ready to take any risk.

Experience about Expected Risk
It is importantly seen that 237 respondents having a share of 65.8 3 percent are experienced expected risk in their investment. Whereas 123 respondents are not experiencing expected level risk in investment.

Expected Annual Return
From the table it is noted that 179 respondents are expecting return in the range of 16 to 20 percent. The percentage of these respondents is 49.7 2 percent. The 123 respondents are expecting return above 20 percent. The 58 respondents are expecting return in the range of 11 to 15 percent. Thus, it is very important that no one respondents or expecting return at less than 11 percent.

Experience about Expected Return
In connection with expected annual return of respondents, it is observed that 185 respondents having a share of 51.39 percent are receiving expected annual return from their investment. However, there are 175 respondents which accounts 48.61 percent are not receiving expected return from their investment.

Investment Time Horizon
From the table it is noticed that out of 360 respondents, 243 respondents accounting 67.5 percent are investing funds for longer period of time that is above 11 years. The number of respondents making investment for less than 11 years is 117 which account 32.50 percent. These investors need to change their investment time horizon in order make their investment more worth. 122

Respondent-investors' Satisfaction towards Investment in Large-cap Equity Investment
In this section, the analysis is made on investors' satisfaction on investment in large-cap equity funds. The details of it are presented in table 3.  The total satisfied respondents are 65.83 (i.e. 237 respondents) percent. This part of success is to be enjoyed by the fund managers. However, there are 30.84 percent respondents who have dissatisfaction on the return of the scheme. This clearly tells that schemes performance is not good. There are also 3.33 percent respondents who have a neutral opinion. A sizeable chunk of investors are not satisfied with the return. The investment basically made for the purpose of generating a good return. When it is not possible dissatisfied may switch over to add more to the problems. Hence, the fund managers rework the strategies to meet the expectations of investors or they should convince the investors stating unavoidable and unfavourable market conditions. 4. Investment Services: In the survey, it is found that 23.05 percent respondents have satisfied with investment services. It accounts for less than 1/3 rd of total respondents. The more number of respondents (55.28 percent) have dissatisfaction on investment services. The respondents with a neutral opinion are 21.61 percent. It is hereby noted that investment services need to be improved as it is first ranked factor in respect of influencing on investment decision according to the analysis carried out in the previous table i.e. 5.33. 5. Relationship: With regard to relationship, out of total respondents, 56.94 percent of respondents are satisfied and 19.44 percent respondents are dissatisfied. So it is found that dissatisfied respondents are comparatively less. Though there are nearly 1/4 th of respondents with a neutral opinion on the relationship between investors and mutual fund houses. Therefore it is necessary to incorporate as an important issue and AMCs should give due importance to this factor. 6. Redemption services: Redemption services are another important factor on which total 39.44 percent respondents are satisfied. Out of total satisfied respondents, highly satisfied respondents are less than just satisfied respondents. There are 23.33 percent respondents who have dissatisfaction on redemption services. In dissatisfaction, highly dissatisfied respondents are more than just dissatisfied respondents. It is important to note that there are a large number of respondents who have a neutral opinion on redemption services. The hard earned money saved and invested with a primary motive of getting it back to meet the contingencies or the set goals. If the redemption services are not upto mark, the basic objective of investment will be defeated. 7. Grievance Redressal Services: Grievance redressal service is a kind of system where investors' complaints are to be addressed. There are 43.33 percent respondents satisfied on grievance redressal services. Out of satisfied respondents, 22.50 percent are highly satisfied and 20.83 percent are just satisfied respondents. The 16.95 percent respondents are dissatisfied. Here it is important to note that 143 (39.72 percent) respondents have a neutral opinion towards grievance redressal services. It is almost 2/5 th of total respondents. The analysis shows that there are only 17 percent respondents dissatisfied over the redressal mechanism. Though the number is less, there is a mis-match between the claim by fund houses (based on secondary data) and opinion with respect to grievances redressal mechanism. The truth is to be unearthed by the regulators in the interest of the investors. The onus lies on the fund houses to keep the trust of investors. 8. Fund Management: About fund management, there are 67.23 percent satisfied respondents who comprise both highly satisfied respondents (i.e. 36.67 percent) and just satisfied respondents (i.e.30.56 percent). The 24.17 percent respondents are dissatisfied o fund management system. The 8.61 percent of respondents have a neutral opinion. So it is found that fund management is an important issue for investors. Respondents satisfied on fund management are reasonable. 9. NAV Updating: NAV Updating is required for investors to know about their economic wealth in the marketplace. The 64.44 percent respondents are satisfied with NAV updating service. It is accounted nearly more than 3/5 th of total respondents. Out of total satisfied respondents, 21.11 percent respondents are highly satisfied and 43.33 percent respondents are just satisfied. The dissatisfied respondents are 27.23 percent which comprises both highly dissatisfied and just dissatisfied. Total 30 respondents are having a neutral opinion on NAV updating. NAV updating is not done one to one. it is generally updated on the website. This information is available to everybody. Almost more than 1/3 of respondents, including respondents under neutral zone, do not have positive opinion on this service. It may be a lack of awareness. Hence, the fund houses should create awareness to have informed investors with them. Otherwise, these investors may mis-carry the information hampering the prosperity of the fund. 10. Transparency: With regard to transparency, more than 50 percent of respondents are satisfied. Among satisfied respondents, highly satisfied respondents are more. The dissatisfied respondents are less than 1/3 rd of total respondents. The respondents with a neutral opinion are 16.67 percent which is reasonably high. Transparency is the deciding factor which influences the growth of fund and fund houses. Though the majority of unit-124 holders considered for the study have given their positive responses, almost the equal number of respondents are not satisfied with regard to transparency. 11. Exit Load: Exit load is an amount to be charged at time of redemption. The 30.28 percent respondents are highly satisfied with exit load. The just satisfied respondents are 27.22 percent. Put together satisfied respondents are 57.50 percent of total respondents. The dissatisfied respondents are 10.28 percent which is comparatively least. But respondents with a neutral opinion are 32.22 percent. So it seems to be very high. The exit load is generally applicable when the unit-holder redeems units within 365 days from the date of investment. These unit-holders who are dissatisfied may be dissatisfied on the rate which is applied in the form of exit load that should be reasonably charged. 12. Promptness in giving information: Information, that too reliable information, is the most important and powerful variable in the investment world. The reliable and timely dissemination of information triggers the potential investors towards a particular fund and fund house and develops a sort of cohesiveness of existing unit-holders with the fund. 54.72 percent respondents are satisfied. The highly satisfied respondents are 16.39 percent and 38.33 percent are just satisfied. The dissatisfied respondents are 31.12 percent which includes both highly dissatisfied and just dissatisfied. The respondents with a neutral opinion are nearly 15 percent. So it found that dissatisfied respondents are reasonably high. On the analysis, it can be formed that the fund houses offering large-cap funds are not quite successful in satisfying the respondents on this factor. 13. Clarification towards technical doubts: Clarification towards technical doubts is a factor which is considered to measure the satisfaction level of investors towards their investment in large-cap funds. There are satisfied respondents of 66.67 percent which comprises both highly satisfied and just satisfied respondents. It is observed that just satisfied respondents are more than two times of highly satisfied respondents. The 23.33 percent of respondents are dissatisfied. And there are 10 percent respondents with a neutral opinion. The technically may arise particularly to small investors. They need to be clarified to increase the investor-base. The brighter-side is a positive sign and a motivating factor. However, the fund management should be look at the other side for the prosperity still, 1/3 of respondents have not got proper clarification. This needs to be addressed. 14. Reminding next contribution payment times: It is found that there are more than 3/4 th of total respondents who are satisfied with reminding next contribution payment times. The number of highly satisfied respondents and just satisfied respondents are almost same in a satisfied group. percent with a neutral opinion on the factor. If the service mentioned in serial number 14 above is efficient, the pressure on this factor can drastically be reduced.
From a thorough analysis and interpretation, it is found that satisfied respondents are reasonably moderate. Reminding next contribution payment time factor has comparatively highest satisfied responses. Investment service factor has the least satisfied responses. It is also found that respondents with a neutral opinion seems to be high in respect of all factors except return and reminding next contribution payment time factors.

Findings and Suggestions:-
The major findings and suggestions of the research study are given below:

Findings
1. It is found that middle-aged people (31 to 50 years) are very conscious in savings and investment. 2. It is also found that investment habit among men is more than that of women. 3. Respondents from the employment zone are more interested in mid-cap funds investment. 4. It is viewed that advertisement, followed by internet and agents are the main source of information for a large number of investors. 5. It is found that open-ended scheme is the most preferred and popular scheme than close-ended and interval scheme. 6. The study reveals that existing mutual funds are highly preferred funds by the majority of investors for investment.
125 7. The agent/distributor is a more familiar investment way as the more number of respondent-investors have adopted this route for investment. 8. The study pointed out that SIP is a highly preferred mode of investment for a large number of investors in largecap funds. 9. It is pointed that majority of respondent-investors have been using the auto-debit system for making payment in large-cap funds. 10. It is found that more than 50 percent of respondent-investors are willing to take a moderate risk in large-cap equity mutual funds. 11. It is also pointed that majority of the investors are expecting return above 15 percent and none of the investors is expecting return less than 10 percent. 12. The study is shows that satisfied respondent-investors are less on risk aspect.. 13. It is also noted that respondent-investors have moderately satisfied with large-cap fund investment in overall.
Suggestions:-To AMCs 1. As it is observed, young investors are comparatively less in total respondent-investors. So that it is necessary to motivate young people for investment in mutual funds. 2. AMCs are necessary to form schemes exclusively for women in order to attract them towards savings and investment in mutual funds. 3. The direct scheme is comparatively less preferred scheme even though the return on the direct scheme is higher than indirect scheme. It is happened because of lack of awareness and some other problems. So that AMCs are hereby advised to go with more and more advertisement. 4. It is highly noted that respondent-investors have low satisfaction with risk aspects. Therefore, it is advised the fund managers to use portfolio revision strategies effectively to improve the performance of the scheme. 5. The fund managers are advised to update with the new risk management tools so that they would be able to reduce risk to a greater extent and by that investors may be more satisfied.
To Investors 1. The mutual funds are well regulated investment avenues like bank deposit etc. Hence, it is advised the investors to invest regularly in large-cap funds to reap the higher returns. 2. Equity investment gives return at a high rate in long-run. So that investors are advised to invest funds for a long-term period as possible. 3. Investment in mutual funds is subject to market risk. Therefore, investors are advised to keep a vigilant eye on fund performance. This helps investors to take switching decision.

Conclusion:-
In the changed scenario, mutual funds are playing vital role in economic development of the nation. The AMCs are offering different schemes for investors and all these schemes are classified as equity scheme, debt scheme and balanced scheme. In equity category, there are different types based on different factors and each scheme has unique features relating to risk and return. The large-cap equity scheme is one which is largely preferred scheme by the investors who wish to take less risk to earn reasonably high return. This is only a scheme which addresses the risk issue in equity investment.