Rajesh Kothari1 and Narendra Sharma2

1Faculty of Management Studies, Rajasthan University, Jaipur - 302004, Rajasthan, India
2AdamSmith Institute of Management, (ICFAI Academy), Gopalpura Bye Pass, Jaipur - 302017, Rajasthan, India

1E-mail: rajeshkothari123@yahoo.co.in, 2E-mail: icfai@in.com

Abstract

Mutual funds are those kinds of services which have heterogeneity at maximum level. For example, Reliance mutual fund has almost same tax planning fund as that of Birla sun life mutual fund. So, perceiving service quality becomes more tiresome task for customer in this industry. In the present paper, we have explored Parasuraman’s 5 dimensions of services for mutual funds in India. By doing some statistical analysis, we identified that high familiarity of corporate brand in mutual fund industry in India is more influential than any other factor. So advertising, for increasing this awareness can help in better recall thereby adding value towards perceived service quality for mutual funds in India. Post-liberalization Print advertisements for mutual funds have used risk-return, credibility, transaction cost and convenience information to influence the perception of the prospective investors. The authors have discovered changes in this information for mutual funds over period of time and reason for dissatisfaction amongst mutual fund holders.

Keywords: Mutual Funds, Service Quality, Familiarity and Unfamiliarity, Advertising, Investors.