A Study On Investor’s Preference Towards Mutual Fund Investments In Comparison To Other Investment Avenues With A Special Reference To Systematic Investment Plans

Abstract

Today, investors have to choose from a variety of investment avenues. Amongst fund raisers there is stiff competition, each attracting investors with well marketed schemes. In this environment of choice and competition, investment decisions have become difficult. The various investment modes have advantages & disadvantages. A prudent investor tries to balance these benefits and shortcomings of different investment modes before investing in them. Amongst the various investment modes, Mutual Fund is the most suitable investment mode for laymen. It offers an opportunity to invest in a diversified and professionally managed portfolio at a relatively low cost. The objective of this research is to study the mutual fund investment avenue, understand the reasons for opting for this mode and factors influencing investor’s decisions. Secondary data was collected, gaps identified, and a questionnaire prepared. Responses of about 70 respondents were statistically analyzed and the findings are that age, education, family size, income levels and such personal characteristics influence investment decision and can be reflected in the portfolio assets. There is a tendency towards mutual fund investments and to SIP in mutual funds of a particular type of investor. Given the need for funds for economic growth, awareness could make earning people of all age groups and education levels include mutual funds in their portfolio. The trust of the mutual fund industry must be to ensure liquidity, safety and returns to investors.