Factors Affecting Investment in Mutual Funds

Author(s)

Varun Sagar Singal and Dr. Rishi Manrai

Affiliations

1. UG Student, Symbiosis Center for Management Studies, NOIDA
2. Assistant Professor, Symbiosis Center for Management Studies, NOIDA

Abstract

Mutual funds act as a medium for retail investors to invest their savings in the professional funds management system, irrespective of the sum invested. It enables masses to enter the Indian Financial Market with much more ease. Indian Mutual Funds industry is growing rapidly which is reflected with the growth in assets under management under various AMC’s year on year. Investment in mutual funds is less risky when compared to investment in equities market. Less risk combined with moderate returns and professional management act as a magnet for the risk averse investors to invest their savings in the financial markets.

This project aims at finding out the factors affecting investment decision on mutual funds and the impact of behavioral factors on an investor. This project also aims at finding about the factors that prevent the people to invest in mutual funds. The findings will help mutual fund companies to identify the areas required for improvement and can also improve their marketing strategies. It will help the MF companies to create new and innovative product according to the orientation of investors.

Investor perception cites a significant impact on the investment decision making process. It is important to understand few basic factors such as level of awareness and impact of date of inception of the fund which play a significant role in guiding the investment decision making process of a retail investor.

Keywords

Mutual Fund Performance, Invest- ment, Risk-returns, Factors Affecting, Behavior

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