An analysis of retail mutual fund investors behaviour towards mutual fund investment with special reference to Cochin city, Kerala, India

No Thumbnail Available
Kumar, Priyanka Pradeep
Issue Date
MSc Management Practice
Dublin Business School
Items in Esource are protected by copyright. Previously published items are made available in accordance with the copyright policy of the publisher/copyright holder.
Financial market is being highly competitive and effectual by offering numerous investment choices for the investors. Mutual fund market is also actively responding to the dynamic changes of the market and the preference of the investors by modelling new portfolio choices for the investors. In the past few years, Indian mutual fund market has been tremendously mounting with many private players bringing global expertise to the Indian Mutual fund industry. Thus, in this scenario, where the market is becoming highly sophisticated, it is required to study the changing behaviour of the investors and unveil some significant data to support the financial decision making of mutual funds. As the financial market conditions calls for continuous innovations in investment products it is vital that the new designs match to the expectations and needs of the investors. Therefore, it is highly imperative to conduct research to study on the investor behaviour, the expectations of the investors, preference of the investors and the reasons for dissatisfaction. This research paper studies fund selection behaviour of the mutual fund investors which was conducted in Cochin city, India considering a sample size of 130 retail investors through a structured questionnaire. The study revealed that investors prefer systematic investment planning the most, and assesses the portfolios based on past performance, scheme returns and brand of the portfolio. The middle age group prefers mutual fund investment the highest as they derive better returns with lesser risk and gets the opportunity to invest in diversified portfolio with less investment. This paper would help for the AMC’s to design and develop new products and help in the managerial decision-making process.