Mutual Fund Investors’ Investment Behaviour- An Empirical Analysis

Abstract

Mutual Fund is a set or pool of money by the contribution of individual investors, as the investment offers an opportunity to invest in diversified instruments like shares, debentures and other securities. Therefore, investors of all categories could those to invest on their own in multiple options but opt for mutual funds for sole reason that all benefits come in the package. Hence, the paper attempts to study the investment behaviour of investors in mutual funds.  The research studies the concepts of investors’ preference in selecting mutual funds, factors influencing investment decisions, association of demographic variables with investment decision and the problems faced by investors. The data collection was done with mutual funds investors in Chennai city with the well structured questionnaire using five point Likert scales. Further, the data analysis used for the study is percentage analysis, weighted mean rank and Chi-square analysis. The results reveal that, mutual fund investors invest based on the past experience through NPA and take expert advice (Fund Manger). Further, the investors who are salaried and professional in between the age of 36-45 have more than five years of investment experience. Further, the problem the investors face is risk factor is high as there is no safety for funds.