Investors Behaviour Towards Investment in Indian Mutual Funds

Abstract

India is going through a period of saving and investing, particularly with the development of its working class. The assets under administration of different fund companies have increased as a result of the rapid growth of the Indian mutual fund business. This study concentrated on a variety of variables that emphasize investors' preferences and behaviour toward mutual funds. Studies have been done on how different demographic and behavioural aspects affect investors. The study's design, methodology, and approach are survey-based and empirical. This study has collected data through primary and secondary data. Through the use of structured questionnaires, data is gathered. The hypotheses have employed frequency distribution, percentages, the chi square test, an analysis of variance (ANOVA), an average score calculation, and the Kruskal Wallis test. Additionally, Cronbach's Alpha (CFA) is used to gauge the variables' internal consistency.

The study's key conclusions point out that investors' investing decisions are influenced by demographic considerations. Additionally, it was discovered that older, more educated individuals favoured investments with high rates of return that were safe. Risk is avoided. The study would be helpful for academicians and scholars conducting additional research, as well as for brokers, dealers, investors, and share market administrators.

Research Applications/Limitations: This study helps to understand how investors behave when investing in mutual funds. Even with the utmost care, there were some limitations in this study that could have affected the results. It is challenging to extrapolate the results to a large population because only 100 samples of respondents of Hyderabad city were chosen for the convenience sampling method.

Relevant Applications: contributes to the corpus of information about investor behaviours, perceptions, and attitudes regarding investing in mutual funds, as well as the implications of such findings for policymaking by investors, organisations, and the government.

Originality/Value: This study presents a framework of pertinent standards and resources that will be helpful to people with an interest in the subject.