A Study of Factors Influencing Individual Investors in Mutual Funds Selection

Abstract

The objectives of this research paper is to study the fundamental factors impacting the behaviour of an individual investor investing in mutual funds and the factors impacting selection of investment schemes of individual investors and investor’s perception about mutual funds. Investors have a wide range of investment possibilities at their disposal. Individual investors face dilemma where to investment when there are so many financial products available for investment. Investors seek a variety of information for arriving at a reliable investment options. Along with return, they want their investment corpus offer a hedge or protection against inflation. Mutual Funds are a preferred class of investment for millions of people worldwide in the financial industry. There are many different schemes available right now, and asset management companies (AMCs) compete with one another by releasing new products or repositioning existing ones. A new product adds to the confirmation of individual investors. Therefore, AMCs need to know how investors choose their investments and what would satisfy the investors the most. So in order to the assets and analyse what factors influence the individuals to determine their desired scheme, this study employed a survey tool. Responses attained from 442 investors were put a factor analysis.