A comparative study on investor’s perception: Public sector mutual funds and private sector mutual funds

Knowing the perception of customers is very important in any industry. It provides insight into the customer behavior and his expectations from the industry players. A proper understanding of perception would definitely benefit the players.

Different schemes of large number of mutual funds have been in operation in India for a considerable period of time. During this period mutual fund industry experienced many several stages growth and ups and downs and also categorized broadly as private sector and public sector mutual funds. Private sector mutual funds have revolutionized the industry in terms of product and services. Therefore, it is important to know investors preference, i.e. to know whether the investors are tilted towards private sector or public sector mutual funds. This research paper is based on survey findings of 200 mutual fund investors. On the basis of observations of the study it has been observed that in aggregate, out of 200 respondents, 135(67.5%) investor were in favour of private sector whereas 65 respondents’ favored public sector (32.5%). The study reveals that private sector mutual funds have now not only captured market share but also mind share of the investors.