A Study on Investment Willingness of Small Income Salaried Class over Investment in Mutual Funds and SIP

Abstract

The present study is based on the investment willingness of the small income salaried class people and its investment habit as well as their willingness to invest in mutual funds and SIP. In today’s era the mutual funds and SIP have emerge as new investment tools particularly for small income class of people. Mutual funds and SIP provide the chance to invest in equities and debts of big stock where individual investors of small income group cannot invest. Mutual funds are available in various types as per the need of the investors and SIP provides the chance to invest a minimum amount per month regularly to buy a part of stock every month. Mutual funds and SIP are giving high returns to the investors and also provide the chance to earn maximum profit out of its dealing. Apart from these features the class of small income salaried people is mostly unaware about this and not willing to invest their money in mutual funds and SIP. The small income salaried class people are not getting fullest information about the mutual funds operation and its function hence they are not ready and willing to invest their money in it. They are also not risk takers hence they are willingly opts out mutual funds and SIP from their list of investment. They are giving preference to the traditional investment tools as investment options over the mutual funds and SIP due to the formalities and risk involved in it. The present study is aim to throw the light on the willingness and preferences of small income salaried class over the mutual funds and SIP as investment tools. This paper will be useful to understand the reasons of small income salaried class for not investing their money in mutual funds and SIP. Similarly, this paper is also focus on the efforts required from the mutual fund agents and mutual funds companies to attract more and more small income salaried class people.