“Investors attitude towards mutual funds in Malaysia”

Date : May 2016 - Dec 2016

Currently, funds are rapidly increasing every day; their survival depends upon mutual fund companies of marketing strategies. In such cutthroat competition, Mutual Fund Companies should understand small investors as well as particularities of the Bursa Malaysia. Under present situation, this research is an attempt to comprehend the investors’ attitude towards mutual funds. For that the research which reflected attitude towards funds identified five main variables, among which important are monetary variable, risks and return and promotional measures. On the other hand, Investors’ expectation was found to be least. Firstly, ‘Monetary Factor’ was found to have adjusted R square of 39% and it contains the significance value 0.00 which shows that there is a relationship between investor’s attitude and monetary variable. The sub-variables having most significant P value were ‘Entry and Exit Barriers’ and ‘Better Performance Better Fund’ with significance value of 0.00. It shows that these both sub variables have a prominent effect on investor’s attitude. Secondly, ‘Investors expectations’ showed the adjusted R value of 4% which is very low. Further it also showed the significant value of 0.82 which concludes that investors’ expectations does not have influential effect on investor’s attitude. However, sub variable ‘tax incentive’ had a significance value of 0.00 which can be determining factor in relationship between investors attitude. Thirdly, ‘Promotional Measures’ with the anova significant value of 0.29 displays and accepted our hypothesis that there is a relation between investor’s attitude and promotional measures. However, only one sub-variable ‘fringe benefits like insurance etc.’ showed a strong relationship with p-value of 0.00. On the other hand, remaining sub-variable were not found to have a strong relationship with investor’s attitude.