Role of Mutual Funds Advertising in Spreading Awareness amongst Investors and Selection of Mutual Fund Schemes in Aurangabad City

Abstract

This thesis is an attempt to study the role of Mutual Fund advertising in spreading awareness amongst investors and selection of Mutual Fund schemes. The study has been undertaken in the Aurangabad city. It answers the simple question that whether Mutual Fund Advertising is effective for creating awareness amongst the investors or not. The study includes Mutual Fund selection factors which are mostly considered by the investors and these factors are mapped with content shown in prevalent advertisements of Mutual funds. newlineIn recent years, Mutual fund industry is experiencing a big expansion in terms of asset under management, number of investors accounts, increased amount of investments in capital markets, new fund offers, etc. This massive growth was not possible without a shift in the investor s perception about Mutual Funds. The increasing investor s awareness about Mutual Funds investments is one of the important factors responsible for shift in the investor s perception. newlineAwareness about the product and service is a function of frequent advertising. As MFs are gradually advertising themselves in different formats and on various platforms awareness of investors should increase accordingly. But the prevalent Mutual Fund advertisements are not helping investors to increase awareness due to its scary nature of disclaimers (Mutual Funds are subject to market risks please read the offer document carefully before investing), inability to show desired content, (strict regulations of SEBI for marketing of funds), etc. Mutual Funds require complex buying decisions and cannot create demonstration effect in advertising as in the case of other products. It means apart from advertisement the industry undertakes other tasks which are taking effort to increase awareness. newlineSo, the problem remains as to how the Mutual Funds advertisements are effective in creating awareness and helps in selecting a right kind of scheme for investment. So, this research aims at finding a role of Mutual Fund advertising in spreading awareness amongs