An Empirical Analysis of Investment Behaviour towards Mutual Funds in India

الملخص

An investment tool known as a mutual fund enables investors to pool their money in order to buy a diverse portfolio of securities. The purpose of the current study is to comprehend the behaviour of individual investors in Chennai city of Tamil Nadu, India when they are making investments. The primary data used in the research study was collected from 394 different respondents using a structured questionnaire. For the purpose of the research study, convenience sampling, a nonprobability sampling, was used to select respondents. Various factors that affect people's investment decisions with regard to mutual fund investments have been identified using exploratory factor analysis. The current research study was successful in illuminating seven important factors that affect how individual investors behave when making mutual fund investments. Credibility of the fund and other characteristics of the fund are two important underlying factors that are extracted. It is determined how these elements relate to demographic variables. The past performance of the mutual fund issuer, tax-saving funds, and growth funds with capital gains have been found to be the most important considerations for mutual fund investors. It is surprising to learn from our study that more than 64 percent of investors want a higher return along with lower risk, tax benefits, and capital growth. Our findings are consistent with those of numerous researchers who have carried out studies over a variety of time periods, showing that past performance is a significant factor in investors investment decisions and that the majority of investors make their own investment decisions. As a result, fund managers make every effort to produce high returns in order to maintain a solid track record of performance and gain a competitive edge.