Preference and Perceptual Mapping of Mutual Fund Schemes

Abstract

There are different kinds of mutual fund schemes available with different features to cater to the needs of different people. But the investors may feel that some schemes may have similar features. In this study different mutual fund schemes are mapped using multidimensional scaling from customer perspective on the features of different schemes. The schemes taken for the study are Index fund, Growth fund, Income fund, Liquid fund, Mid-cap fund, Large-cap fund and Sectoral fund and attributes used are risk, safety, return, liquidity. From the study it is concluded that the preference of investors varies according to the investment experience, family income and number of earning members in the family. The investors also have similar perception about large cap and sectoral fund schemes with respect to risk. Each scheme varies from each other with respect to liquidity and safety. The findings from this study will be useful to the mutual fund operators to understand where there is a gap and where there is a cluster; accordingly they can bring new scheme for investment or restructure the existing scheme.