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INTRODUCTION: -
Mutual Funds legally known as “open ended funds” Mutual Funds are very essential investment vehicles where investment takes place by investors with similar objective of investment pool their money and invest accordingly. Each unit of a scheme represents the proportion of pool owned by the unit holder (Investor).Mutual Fund are managed by respective Asset Management Companies. Different FIs, Business groups banks have these AMC these may be alone or collaboration with reputed international firms. Appreciation or reduction in value of investment is reflected in Net Asset Value (NAV) of the concerned scheme, which is declared by the fund on timely basis.Many more international Mutual Fund giants are expected to come in near future to Indian markets with the help of FDI.A mutual fund is one of the best investment vehicle for today’s modern and complex financial scenario.According to Association of Mutual Funds in India (AMFI), A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal and invest it in capital market instruments such as shares, debentures and other securities. The income earned and capital appreciation thus realised are shared by its unit holders in proportion to the number of units owned by them. Thus, it offers to common man an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.
In India, Mutual Fund industry started in 1963 with the formation of Unit Trust of India (UTI).
It was the first phase (1964–1987) of Indian mutual fund industry during which UTI enjoyed a complete monopoly.
In the second phase (1987–1993), Government of India allowed public sector banks and financial institutions to set up mutual funds.
Third phase (1993–2003) started with the entry of private sector and foreign funds.
The fourth phase (since February 2003 till date), is the age of consolidation and growth. As on 31 March 2012, there are 44 mutual fund companies with 1309 schemes and the average asset under management as Rs 66,47,920 million with a wide variety such as Open-Ended, Close-Ended, Interval, Growth, Income, Balanced, Equity Linked Savings Scheme (ELSS) and so on that caters to the investors’ needs, risk tolerance and return expectations. Because of the large number of mutual fund companies and schemes, retail investors are facing problems in selecting right funds. Also, it is of paramount importance for policy makers, governing bodies and mutual fund companies to analyse as which schemes are efficient performers. Therefore, to study the performance of mutual funds in terms of 2 efficiency and the methods of improving it is of crucial importance. In general, Net Asset Value (NAV) is taken as criteria for the performance measurement and it is based on the riskreturn trade off
REVIEW OF LITREATURE
. Clark (2008) suggests as a channel the mobile phone can Agument the number of channels available to consumers, There by giving consumers more low cost self service options by which to access funds, banking information and make payments.
. Vyas(2009) stated that Indian banks will target on non-online bank users who may lack regular access to desktop internet but are very likely to own a mobile device.
. Rotchanakitumnuai&specce(2013);Akini,Aksoy&Atilgan(2004)stated that millions of people are currently using a variety of e- banking technologies including mobile banking.
.Comnios et al. (2008) suggested that consumers will only transect on mobiles if there is convience and security
. Sharma and singh (2009) found that Indian mobile banking users are specially concern with security issues like financial frauds, account misuse and software installation and updation
. Dasgupta et al (2011) also affirms future of mobile banking in India in their studies. Suoranta (2003) found that the average mobile banking user is married, 25 to 34 years old, has intermediate education and average income inclerical work. She found that age and education have a major influence on the use of the mobile phone in banking services. The adoption theories assume that use of Internet banking precedes the adoption of the mobilephone in banking. However, Suoranta (2003) found that some mobile banking customers omit Internet banking adoption when adopting the mobile phone for banking actions. Polatoglu and Ekin (2001); Al-Ashban and Burney (2001); Karjaluoto (2002); Black et al. (2002) supports findings of Suoranat in their respective studies.
. Mas (2008); Lyman et al. (2008) foundthat there are a large number of different mobile phone devices and it is a big challenge for banks to offer mobile banking solution on Anytype of device. Some of these devices support J2ME and others support WAP browser or only SMS; presetting a serious challenge. Hayat (2009) suggests that for a banking regulator it is important to provide adequate protection for consumers, ensure economic stability, provide interoperability of electronic systems and guarantee security of transactions and Anti Money Laundering and Know-Your-Customer principles must also be applied to mobile payments. Comninos et al. (2008) suggest that unbanked will only transact electronically (online/mobile banking) if there is convenience and security. Sharma and Singh (2009) found that Indian mobile banking users are specially concern with securityissues like financial frauds, account misuse and user friendliness issue -difficulty in remembering the different codes for different types of transaction, application of software installation & updating due to lack of standardization. Banzal (2010) found that another major issue is the revenue sharingagreements between mobile service providers, banks, content providers
.Mobile banking is an application of m-commerce which enables customers to access bank accounts through mobile devices to conduct and complete bank-related transactions such as balancing cheques, checking account statuses, transferring money and selling stocks (Kim et al., 2009; Tiwari &Buse, 2007, p.64). Luo, et al (2010), defined mobile banking as an innovative method for accessing banking services viaa channel whereby the customer interacts with a bank using a mobile device (e.g. mobile phone or personal digital assistant (PDA)).There are challenges associated with m-commerce, and specifically mobile banking. Mobile devices with a small screen size, limited screen resolution and uncooperative keypad may make it difficult for the customer to use mobile banking (Kim et al., 2009). Mobile banking is also vulnerable to information and transaction eavesdropping risk, just like other e-commerce applicationssuch as Internet banking (Siau and Shen, 2003).
.Mobile banking is a part of new banking dimension i.e. branchless banking to make any bank digital. This branchless banking has great potential to extend the distribution of financial services to poor people who are not reached by traditional bank branch network; it lowers the cost of delivery, including cost of both to the banks of building and maintaining a delivery channel and to customers of accessing services (Ivatuary and Mas, 2008). The development of information technology has a enormous effect on development of more flexible payments methods and more-user friendly banking services (Dixit and Datta, 2010). Mobile Banking is one of the very latest services of banking business. This system has brought some very important operations of banking in the pockets of people. People can now know their balance, transaction history, products of the bank, transfer fund through their mobile at anytime from anywhere.
RESEARCH METHODOLOGY
.Type of study – primary
. Sampling technique - com
. Sample size – 100
. Sample unit – single users of mobile banking
. Type of Research – Descreptive
. Sources of study – books , newspapers ,journals ,magazines(secondary)
OBJECTIVES
1. To find out Reasons which contribute to users intention to use mobile banking
2. To find out adoption challenges and problems faced by mobile banking users
3. To identify steps which banks could take to increase mobile banking service users
SCOPE OF STUDY
On the basis of objectives following issues were discussed with Excisting customers
- mobile compatibility
- mindset about acceptance
- comfort level with excisting system
- security issues
- availiblity of facilities
- wilingness to adopt mobile banking services
- Recommendations