Role of Mutual Fund in the Rural Households (Scheme Preference and Period of Investment)

S Sudalaimuth; B Angamuthu

S Sudalaimuth Reader, Department of Banking Technology, School of Management, Pondicherry University, Puducherry, Indiai
B Angamuthu Faculty, Department of Commerce & Management, Karpagam University, Coimbatore, Tamil Nadu, India

Keywords: Mutual Fund, Investment Scheme, Rural Investor, Financial inclusion, Scheme Preference, Investment Period

Abstract

The Indian financial market is one of the fastest emerging markets in Asia but in the present financial market, where a large number of private financial companies have disappeared but Mutual Fund (MF) offer the best and safest avenue of investment of household savings. In order to, Mutual Fund Industry (MFI) has involved the expansion of Mutual Fund Schemes (MFs) and it has grown at average rate of nine percent during the period from 2001 to 2009. This study aims to study the preference of MFs among rural households and their period of investment. This empirical research were used to questionnaire-cum-interview schedule and the primary data was collected from 226 respondents in rural households of Madhuranthakam Taluk, Kancheepuram District, Tamil Nadu state using multi-stage sampling method. This study found that 69 percent of the respondents have invested in monthly income plans. This is followed by more than 50% of the respondents have invested in growth funds, income funds and tax saving fund. Age group, marital status, educational qualification, occupation and family income of the respondents in the rural households associated with their period of investment in MFs.