DOI: 10.36347/sjebm.2014.v01i03.005

Pages: 105-115

Abstract: The study deals with preference and perception of investors towards mutual fund. Its main objective is to study the factors responsible for the preference for mutual funds as an investment option. The study also examines the investment objectives undertaken by investors while investing in Financial Instruments and finds out the highly used/preferred source of information for various investments options to invest in their most preferred Financial Instrument. This data is collected from 160 respondents residing at Delhi through a structured questionnaire. Descriptive statistics namely rank order, frequency tables, cross tabs, bar charts and factor analysis are used for the purpose of data analysis. It is found that “Benefits & Transparency” is the major factor that is responsible for the investor’s preference for mutual funds. It is also observed from the study that most of the investors studied under present study are moderate risk taker and are interested in Balanced Fund, through which they can earn higher returns at low risk. People in India still think with the perspective of savings rather than taking risk and investing in high ended equity markets. Even investors who invest in mutual funds are unclear about how they function and how to manage them. So, proper information must be provided to the investors in order to increase the loyalty among the investors towards Mutual Funds.