A Study on Factors Influencing the Choice of Investors and Investor’s Behaviour towards Mutual Funds

Abstract

The ever-changing stock markets across the globe have always fuelled jitters among the investors, particularly the small and medium investors. Mutual Funds protect the interest of the small investors not only from the downside market risk through the diversification of risks, but also provide the benefits from the upward market returns. The study mainly focuses on the investor’s inclination towards mutual funds and the impact of demographic factors on their risk perception, investment pattern and risk taking ability. Study also focuses on the factors influencing Investors while investing in mutual funds. 200 respondents contacted from doaba region of Punjab. 113 respondents out of 200 are investing in mutual fund schemes. Returns on schemes have emerged to be the most important factor and entry & exit load least important that affects the choice of the investors in selecting Mutual fund schemes. Most of the demographic factors have no significant association with investment pattern, risk perception and risk taking ability.