A Study on Service Quality on Investment Attributes of Equty Oriented Mutual Funds

Abstract

Mutual fund industry in India with more than 400 funds offers a various choice for investing. But the large number and variety of funds also poses a challenge in selection of the right fund that meets investor investment needs. In this study an attempt was made to understand Service Quality on various investments attributes such as

Rate of Return
Risk
Marketability
Tax shelter and
Convenience

Service Quality is characterized by the customer perception of service. Data has been collected from 400 mutual fund investors, who have been invested in equity oriented mutual funds in the past five years. The questionnaire on ServQual was administered to these investors.The mportant findings of this study shows that both foreign and Indian private sector mutual funds have been made tremendous progress in the aspect of ServQual on all attributes of investments. Whereas, public sector banks sponsored mutual fund baring SBI has not made much progress in ServQual on investment attributes.

ServQual is a 22 item scale with the following five dimensions:

1. Reliability - ability to perform the promised
service depending service dependably and
accurately.
2. Assurance – knowledge and courtesy of
employees and their ability to inspire trust
and confidence.
3. Tangibles – physical facilities, equipment
and appearance of personnel.
4. Empathy - caring, individualized attention
the firm provides its customers.
5. Responsiveness – willingness to help
customers and provide prompt service.