ASSESSING THE ROLE OF INVESTORS PERCEPTION TOWARDS INVESTMENT IN MUTUAL FUNDS

ASSESSING THE ROLE OF INVESTORS PERCEPTION TOWARDS INVESTMENT IN MUTUAL FUNDS Author 1: Teluguntla Divya Student, Saveetha School of Management Author 2: Dr. CH. BALA NAGESWARARAO MBA, BL, M.Phil., PH.D Director, Saveetha School of Management ABSTRACT Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man. A Mutual Fund is an investment tool that allows small investors access to a well- diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The fund s Net Asset value (NAV) is determined each day. This study gives you the investors to understand the concept of mutual funds, criteria to invest, benefits, the idea about Asset management Company and provides the factors that impacts the investors while investing. The research has been done with the sample size of 120 people to give the clear idea and perception of investors to invest in mutual funds. KEY WORDS Investment, Mutual Funds, Asset Management Company, NAV, Return on Investment, Systematic Investment Plan (SIP). INTRODUCTION Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. The joint ownership of the fund is thus Mutual, i.e. the fund belongs to all investors. The money thus collected is then invested in capital market instruments such as shares, debentures and other 54

securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man. A Mutual Fund is an investment tool that allows small investors access to a well- diversified portfolio of equities, bonds and other securities. Each shareholder participates in the gain or loss of the fund. Units are issued and can be redeemed as needed. The fund s Net Asset value (NAV) is determined each day. Investments in securities are spread across a wide cross-section of industries and sectors and thus the risk is reduced. Diversification reduces the risk because all stocks may not move in the same direction in the same proportion at the same time. Mutual fund issues units to the investors in accordance with quantum of money invested by them. Investors of mutual funds are known as unit holders. When an investor subscribes for the units of a mutual fund, he becomes part owner of the assets of the fund in the same proportion as his contribution amount put up with the corpus (the total amount of the fund). Mutual Fund investor is also known as a mutual fund shareholder or a unit holder. Any change in the value of the investments made into capital market instruments (such as shares, debentures etc.) is reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is calculated by dividing the market value of scheme's assets by the total number of units issued to the investors. OBJECTIVES OF STUDY To find out the Preference of the investors for Asset Management of company (Most preferred channel) To understand the basic reasons for investment in mutual funds by investors To find out investors Awareness to level of financial product (Mutual Funds) NEED OF THE STUDY To provide basic information about Mutual Funds. A detailed process of Mutual Fund is given with that a person can easily get an idea about Mutual Fund and its process while investing. Before you decide on a mutual fund, figure out how it fits with the rest of the investments you own and your overall financial goals. Generally everyone are not aware of SIP. To get basic idea about SIPs this study is required 55

How SIPs will work and the complete process has been given to make the investors to get a clear idea of investment. To get answers of all the above questions this study is required and helpful to all the investors. LIMITATIONS OF THE STUDY Some of the persons were not so responsive. Possibility of error in data collection and interpretation. Possibility of error in analysis of data due to small sample size. Possibility of error can be in interpretation of data. CONCEPT OF MUTUAL FUND IN SIMPLE STEPS Step 1: Many investors with common financial objectives pool their money Step 2: Investors, on a proportionate basis, get mutual fund units for the sum contributed to the pool Step 3: The money collected from investors is invested into shares, debentures and other securities by the fund manager Step 4: The fund manager realizes gains or losses, and collects dividend or interest income Step 5: Any capital gains or losses from such investments are passed on to the investors in proportion of the number of units held by them. THREE-TIER STRUCTURE OF MUTUAL FUNDS The structure of Mutual Funds in India is governed by the SEBI (Mutual Fund) Regulations, 1996 (hereinafter referred to as SEBI Regulations). These regulations make it mandatory for Mutual Funds to have a Three-tier Structure of Sponsor Trustee- Asset Management Company (AMC). Sponsor: The sponsor is the promoter of the mutual fund. The sponsor establishes the mutual fund and registers same with SEBI. It appoints the trustees, Custodians and the AMC with prior approval of SEBI, and in accordance with SEBI Regulations. Sponsor is required to contribute at least 40% of the capital of the AMC. 56

Trustees: The Mutual Fund, which is a trust, is managed by a Trust Company or a Board of Trustees. Board of trustees and trust companies are governed by the provisions of the Indian Trust Act. The appointment of all the trustees has to be done with the prior approval of SEBI. There must be at least 4 members in the board of Trustees and at least 213 of the members of the board of trustees must be independent. One of the major tasks of the Trustees is to appoint AMC, in consultation with the Sponsor and SEBI regulations. Asset Management Company (AMC): Asset Management Company, registered with SEBI, can be appointed as investment managers of mutual funds. AMC must have a minimum net worth of 10 crore at all times. An AMC cannot be an AMC or Trustee of another Mutual Fund. AMC appoints the Fund Managers in consultation with trustees. MUTUAL FUND SCHEMES ON DIFFERENT BASIS SCHEMES ACCORDING TO MATURITY: OPEN ENDED FUND: An open ended fund or scheme is available for subscription and repurchase on a continuous basis and do not have a fixed maturity period. CLOSE ENDED FUND: A close ended fund has a stipulated maturity period.it is open for subscription only during specific period at the time of launch of scheme. GROWTH /EQUTIY ORIENTED SCHEME: The aim of these funds is to provide capital appreciation over the medium to long term. Typically such schemes invest a major part of their corpus in equities. INCOME/DEBT ORIENTED SCHEMES: The aim of these funds is to provide and steady income to investors. Income funds normally invest in fixed income such as securities such as bonds, corporate debentures, govt. securities and money market instruments. BALANCED FUNDS: These aim is to provide both growth and regular income. Balanced funds invest both in equities and fixed income securities as per the proportion indicated in their offer documents MONEY MARKET AND LIQUID FUNDS: These are also income funds and aim to provide easy liquidity, preservation of capital and moderate income. These funds invest exclusively in safer short term instruments such as treasury bills, certificates of deposits, commercial paper and inter-bank call money, govt securities etc. 57

GILT FUNDS: These funds invest exclusively in govt. securities which have no default risk. Due to change in interest rate and other economic factors, NAVs of these schemes also fluctuate. INDEX FUNDS: These funds replicate the portfolio of a particular index such as the BSE SENSEX, NSC NIFTY 50 SECTOR-SPECIFIC SCHEMES: These funds invest in the securities of only those sectors or industries as specified in the offer documents. The returns depend on the performance of the respective sectors / industries. TAX SAVING SCHEME: These schemes offer tax rebates to the investors under specific provisions of the income tax act, 1961 as the govt offer tax incentives for the investment in specified avenues. E, g equity linked saving scheme (ELSS). Pension schemes launched by the mutual funds also offer tax benefits. FUND OF FUND SCHEME: it s a scheme that invests primarily in other schemes of the same mutual fund or other mutual funds. As the scheme spread risks across a greater universe, investors can achieve greater diversification through one scheme. CHOOSING THE RIGHT MUTUAL FUND FOR YOU 1. EVALUATION: Each Mutual fund offers a variety of schemes to suit differing needs of investors. The Bank/ Brokerage house/ Individual Financial Advisor help you make the choice based on your needs. As an investor one may: a) For the short term or long term want to invest. b) Want regular income or growth. c) Want to target lower risk or higher returns. d) Be convinced of a particular sector and want to invest in it. Example: Remember, just like a salesman in a gift shop, your investment advisor can help you the most if he knows what you are looking for. 58

2. PURCHASE After you have decided to save, you may have to decide among the various investment and withdrawal options that any fund offers to its investors. Most of these schemes also offer various options to customize your operation of the fund to your needs: Systematic Investment Plan (SIP): Allows you to save a part of your income regularly. It is also used to reduce risk when investing in schemes targeting aggressive growth. SIP means systemic investment plan, in SIP we can monthly invest money in the mutual funds. It is the best way of investing for low class investors. Systematic Withdrawal Plan (SWP): Allows you to withdraw a part of your investment regularly. Used when you want to withdraw your investment for a specific regular payment, like insurance premium payments of monthly/quarterly frequency. Like SIP, same is SWP a person can withdraw monthly in order to meet his requirements. Automatic debit: Saves the hassle of writing a cheque when making an investment. Your account is debited automatically for the amount invested. Automatic credit: The reverse of Automatic Debit. It saves the hassle of enchasing a cheque when withdrawing an investment. Your account is credited automatically with the amount withdrawn. MERITS OF MUTUAL FUNDS 1. Professional Investment Management: By pooling the money of thousands of investors, mutual funds provide full time high level professional that few individual investors can afford to obtain independently. 2. Diversification: Mutual funds invest in a broad range of securities. This limits investment risk by reducing the effect of a possible decline in the value of any one security. Mutual fund shareowners can benefit from diversification techniques usually available only to investors wealthy enough to buy significant positions in a wide variety of securities 3. Ease of Investing: You may open or add to your account and conduct transactions or business with the fund by mail, telephone or bank wire. You can even arrange for automatic monthly investments by authorizing electronic fund transfers from your checking account in 59

any amount and on a date you choose. Also, many of the companies featured at this site allow account transactions online. 4. Total Liquidity, Easy Withdrawal: You can easily redeem your shares anytime you need cash by letter, telephone, bank wire or check, depending on the fund. Your proceeds are usually available within a day or two. 5. Market Cycle Planning: Investors who understand how to actively manage their portfolio, mutual fund investments can be moved as market conditions change. You can place your funds in equities when the market is on the upswing and move into money market funds on the downswing or take any number of steps to ensure that your investments are meeting your needs in changing market climates. Since it is impossible to predict what the market will do at any point in time, staying on course with a long-term, diversified investment view is recommended for most investors. 6. Periodic withdrawals: if u want to withdraw money from mutual funds, many funds allow you to arrange for a monthly fixed cheque to be sent to you. 7. Dividend: You can receive all dividend payments in cash. Or you can have them reinvested in funds free of charge, in which case the dividends are automatically compounded. This can make a significant contribution to your long term investments. 8. Automatic Direct Deposit: You can usually arrange to have regular, third-party payments - - such as Social Security or pension checks -- deposited directly into your fund account. This puts your money to work immediately, without waiting to clear your checking account, and it saves you from worrying about checks being lost in the mail. SYSTEMATIC INVESTMENT PLAN: What is an SIP? SIP, also known as Regular Savings Plan (RSP) in some countries, allows you to invest a fixed amount at pre-defined frequencies in mutual funds. A bank / post office recurring deposit is the only other investment option that is similar to SIP. There are basically two options that an investor could take when they are making investments, one would be to invest lump sum into mutual funds and the other would be to invest using an SIP. 60

The following are some of the benefits associated with investing in an SIP: Sip is actually a Systematic Investment Plan of investing in Mutual Fund. It is specially designed for those who aim to build wealth over a long period and want a better future for him and their dependents. The investment in a Mutual fund can be done in two ways. Onetime payment i.e. making payment to a fund at once and gets the units of the fund as per the Net Asset Value (NAV) of the fund on that day. Example: A person wishes to invest in a fund Rs. 24,000/-. On the day of Investment, the NAV of the fund was Rs. 10/-. He gets 2400 units @ Rs. 10/- per unit. Payment to the fund periodically, which is termed as Mutual Fund SIP. When you commit to invest a fixed amount monthly in a fund, it is called as Systematic Investment. It is actually beneficial for those investors who wish to invest a large amount in a fund and wishes to create a large chunk of wealth for long term but due to financial constraints are able to do so. The SIP provides them a way to invest in the fund of their choice in instalments. Example: A person wishes to invest Rs. 24000/- in a fund but due to other obligations, it is not possible for him to invest such an amount in a fund. He takes the SIP route and contributes to the fund Rs. 2000/- monthly for a year. At the end of the year, he ll have invested Rs. 24,000/- in the fund. When the NAV is high, he will get the fewer units and when the NAV is low, he ll get the more units. So, he ll get the benefit of averaging through the SIP route. The NAV in the first month was Rs. 10/-, he ll get 200 units in the first month. The NAV in the second month was Rs. 9.50/-, he ll get 210.52 units in second month. NAV: The NAV for the following month was Rs. 10, he ll get 200 units in the next month so, at the end of the year he may get more units as compared to the units he ll get through single investment. Systematic investment plans are a systematic and disciplined approach to investment and wealth creation. Instead of making a large investment at one time, in SIP you can invest small sums at regular intervals thus creating a habit of regular savings. 61

If you are a big spender and find your expenditures are more than your earnings then go for SIP mutual funds. This will force you to spend at least some part of your earnings every month. Mutual funds are a very safe way of investing money and SIP mutual funds are even better. These are perfect solutions to most of us who cannot afford to make a large investment at one go. This is a good way to save for your child's education, marriage or comfortable retirement for you and your spouse. The lowest start up investment amount is 500 rupees per month which is affordable by most people. CALCULATION OF NAV The net asset value of a mutual fund is the price at which the mutual funds are sold or bought. It is the market value of fund and is calculated after deducting liabilities. The value of all units of mutual fund portfolio are calculated on daily basis from this all expenses are subtracted, the result is then divided by total no. of units and the result is NAV. NAV is also termed as net book value. All mutual funds are required to publish their NAV at every business day as per SEBI rules and regulations. Mutual funds usually fall under two categories securities and cash, securities here include both bonds and stock therefore the total asset value of the fund will include its stock, cash at market value. NAV is simply the net value of the assets divided by no. of outstanding units. Dividends and interests incurred and liquid assets are also included in total assets, also liabilities are also included like money owed to creditors and other expenses accrued are also included. NET ASSET VALUE (NAV) =ASSETS DEBTS/NO. OF OUTSTANDNG UNITS Here, Assets = market value of the mutual fund investments + receivables + income accrued. Debts = liabilities + expenses incurred The market value of the stocks and debentures is usually the closing price on the stock exchange where these are listed. MARKET VALUE OF INVESTMENT = NAV * NO. OF SHARES YOU OWN NAV determines the buy or sell price of the mutual fund share, 62

NAV = CASH IN HAND ON VALUATION DATE + LONG TERM AND SHORT TERM ASSETS HELD BY THE FUND - OUTSTANDING FUND LIABILITIES / NO. OF OUTSTANDING SHARES IN THE FUND. NAV = ASSETS LIABILITES / TOTAL NO. OF COMMON SHARES RESEARCH METHODOLOGY: A Market Research was performed to find out the actuality from the investors about what they think about the various Investment Options. It was done to find out the investment patterns and behavior of the people i.e. how much they invest, what are the reasons behind their investments, and where they invest. Thus a questionnaire was devised to fetch the above mentioned information from the investors with special reference to the customers of the Karly stock broking ltd. Most of the questions in the questionnaires were objective in nature which helped the people to fill it with utmost ease. The sample size for the research was 120, which included all the classes of people aged 18 and above. Each question of the questionnaire is discussed on a separate page and the results are explained with the help of tables. DATA SOURCES: Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites. SAMPLING Sampling procedure & Techniques The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through personal visits to the un- known persons, by formal and informal talks and through filling up the questionnaire prepared. Sample size: The sample size of my project is limited to 120 only. Sampling Technique: Convenience Sampling Respondents: Young age above 18years 63

INTERPRETATION OF DATA 1) ANALYSIS OF AGE OF INVESTORS Age Frequency(Out of 120) Below 30 90 75 30-40 13 11 40 Above 17 14 Out of 120 respondents 75% are aged below 30 years, 11% are aged between 30 and 40 and 14% are above the age of 40 years. 64

2) ANALYSIS OF QUALIFICATION OF INVESTORS QUALIFICATION Frequency(Out of 120) Graduation/PG 86 71.7 Under Graduate 34 28.3 Out of 120 investors 71.7% are graduates followed by 28.3% of under graduates. 3) ANALYSIS OF INVESTORS OCCUPATION LEVEL OCCUPATION Frequency(Out of 120) Govt.Sector 20 16.67 Pvt.Sector 17 14.17 Business 18 15 Agriculture 3 2.5 Student 55 45.8 OTHERS 7 2.26 Out of 120 respondents 16.67% are working in Govt. sector, 14.17% are working in Pvt. Sector, 15% are also working as business persons, 2.5% are from agriculture and 45.8% are students and 2.26% are others 4) ANALYSIS OF INCOME DISTRIBUTION OF INVESTORS. INCOME Frequency(Out of 120) Below 100000 88 73.3 100000 500000 25 20.8 500000-1000000 5 4.17 Above 1000000 2 1.73 65

Out of 120 investors 73.3% are having income below 100000 followed by 20.8% investors whose income is 100000-500000 whereas 4.17% of investors are having income between 500000-1000000 and 1.73% are above 1000000. 5) ANALYSIS OF PREFERENCES OF CUSTOMER ABOUT TYPE OF INVESTMENT Frequency(Out of 120) Fixed deposit 44 36.67 Insurance 5 4.17 Mutual fund 30 25 Post office/nse 4 3.3 Share/Debenture 19 15.83 Gold/Silver 9 7.5 Real Estate 9 7.53 Out of 120 respondents Almost 36.67% of investors prefer for investment in fixed deposits and followed by insurance is 4.17% and 25% are likely to invest in mutual funds, 15.83% are likely to invest in shares/ debentures and 7.5% in gold/silver and 7.53% in real estate. 6) ANALYSIS OF INVESTORS AWARENESS ABOUT MUTUAL FUND Frequency(Out of 120) Aware 100 83.3 Not Aware 20 16.7 Out of 120 investors 83.3% are well aware about Mutual funds through different means and 16.7% are not well aware about mutual funds. 66

7) ANALYSIS OF MEDIUM TO KNOW ABOUT MUTUAL FUNDS Frequency(Out of 100) Advertisement 50 50 Peer Group 12 12 Banks 15 15 Financial Advisors 23 23 Out of 120 responses 100 are who aware of mutual funds got main aware through advertisements with almost 50% and followed by financial advisors with 23%, peer group with 12% and with banks at 15%. 8) ANALYSIS OF FREQUENCY OF INVESTORS INVESTED IN MUTUAL FUNDS: Frequency(out of 110) Invested 46 41.82 Not invested 64 58.18 Out of 120 responses ten peoples doesn t answered for this question so frequency is 100 out of these 100 responses almost 41.82% are investing in mutual funds and 58.18% are not investing in mutual funds. 9) CRITERIA BEFORE INVESTING IN A PARTICULAR MUTUAL FUND Frequency(out of 120) NAV 55 45.58 RATINGS 19 15.83 AMC 25 20.83 EXPERT ADVICE 21 17.5 67

Out of 120 respondents almost 45.58% are look NAV and 15.83 %respondents look at AMC before investing and 20.83% respondents will took expert advice and only 17.5 % look at ratings 10) ANALYSIS OF TYPE OF FUNDING IN MUTUAL FUNDS Frequency(Out of 46) SBI MF 5 10.86 Karvy 17 36.95 HDFC 14 30.43 IDBI 8 17.39 ICICI 2 4.37 Other 0 0 Out of 120 respondents who knows mutual funds are 100 respondents in these people only 46 people invested in mutual funds out of these 46 mostly 36.95% have invest in karvy and 30.43% respondents have invest in HDFC and 17.39% respondents are followed to invest in IDBI 11) ANALYSIS OF PREFERENCES OF INVESTORS TO INVEST MONEY IN ASSET MANAGEMENT CO. Frequency(Out of 120) SBI MF 42 35 UTI 7 5.83 RELIANCE 24 20 IDBI 18 15 KOTAK 7 5.83 ICICI 22 18.33 Out of 120 investors 35% choose SBI MF as AMC, 24% choose reliance, 15% also choose IDBI, 18.33% choose ICICI, 5.83% Choose KOTAK and 5.83% choose UTI as AMC. 68

12) ANALYSIS OF MODE OF SERVICE PREFERENCE WHILE INVESTING IN MUTUAL FUND Frequency(Out of 100) Financial Advisor 20 20 Banks 28 28 AMC 52 52 Out of 100 who are 52% are investing through AMC, 28% are through banks and 20% are through Financial Advisors. 13) ANALYSIS OF PLAN OF INVESTMENT YOU PREFER Frequency(Out of 120) One time investment 53 44.17 Systematic investment plan (SIP) 67 55.83 Out of 120 responses 55.83% are investing through SIP and 44.17 % are investing through One-time investment plan. 14) ANALYSIS OF RETURN OF INCOME, INVESTORS LIKELY TO RECEIVE EVERY YEAR Frequency(Out of 100) Dividend payout 52 52 Dividend reinvestment 19 19 Growth in NAV 29 29 Out of 100 investors only 19% investors like to receive dividend reinvestment, 29% like to receive dividend growth in NAV and most of the investors with 52% like to receive dividend payout. 69

15. ANALYSIS OF PREFERENCE OF FACTORS WHILE INVESTING MONEY IN MUTUAL FUNDS? Frequency (120) Liquidity 33 27.5 Low risk 22 18.33 High return 50 41.67 Trust 3 2.5 FUND DIVERSIFICATION 12 10 INTERPRETAION: Out of 120 responses, 41.67% are investing due to high return, 27.5% due to liquidity, 18.33% due to low risk and 10% of investors invest due to fund diversification. CONCLUSION: It was a good experience for me as it helped me enhance my knowledge as well as gave a good industry exposure for the period which would definitely prove to be very useful at the time of placements. The study performed using the historical data will help the company in two ways. Firstly, it would let the company know which of the funds under the given category Works well and which does not. It can design certain strategies for the funds which are still underperforming and are in their nascent stages. Secondly, it would help the organization, the financial consultants and the marketing team to provide a strategy for the investors who can now easily decide where to invest and where not to. The Market Research performed gave an insight of the actual investors, their investment behavior and their investment trends which would again help the company to make correct strategies to attract more customers and provide them what they are comfortable with. 70

SUGGESTIONS a. To better customer relationship management so as to reduce the time lag and improve customer feedback. b. To come up with more innovative schemes and products so as to expand over the largest customer base as possible. c. The most vital problem spotted is of ignorance. d. Investors should be made aware of the benefits. Nobody will invest until and unless investor is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing. Mutual funds offer a lot of benefit which no other single option could offer. But most of the people are not even aware of what actually a mutual fund is? They only see it as just another investment option. So the advisors should try to change their mind sets. The advisors should target for more and more young investors. Young investors as well as persons at the height of their career would like to go for advisors due to lack of expertise and time. BIBLIOGRAPHY Avramov, D., & Wermers, R. (2006). Investing in mutual funds when returns are predictable. Journal of Financial Economics, 81(2), 339-377. Berk, J. B., & Green, R. C. (2004). Mutual fund flows and performance in rational markets. Journal of political economy, 112(6), 1269-1295. Capon, N., Fitzsimons, G. J., & Prince, R. A. (1996). An individual level analysis of the mutual fund investment decision. Journal of financial services research, 10(1), 59-82. Del Guercio, D., & Tkac, P. A. (2002). The determinants of the flow of funds of managed portfolios: Mutual funds vs. Pension funds. Journal of Financial and Quantitative Analysis, 37(4), 523-557. Dwyer, P. D., Gilkeson, J. H., & List, J. A. (2002). Gender differences in revealed risk taking: evidence from mutual fund investors. Economics Letters, 76(2), 151-158. Dwyer, P. D., Gilkeson, J. H., & List, J. A. (2002). Gender differences in revealed risk taking: evidence from mutual fund investors. Economics Letters, 76(2), 151-158. Grinblatt, M., & Titman, S. (1992). The persistence of mutual fund performance. The Journal of Finance, 47(5), 1977-1984. Gruber, M. J. (2011). Another puzzle: The growth in actively managed mutual funds. In Investments And Portfolio Performance (pp. 117-144). Haslem, J. A., Baker, H. K., & Smith, D. M. (2008). Performance and characteristics of actively managed retail equity mutual funds with diverse expense ratios. Jensen, M. C. (1968). The performance of mutual funds in the period 1945 1964. The Journal of finance, 23(2), 389-416. Kozup, J., Howlett, E., & Pagano, M. (2008). The effects of summary information on consumer perceptions of mutual fund characteristics. Journal of Consumer Affairs, 42(1), 37-59. 71