Analysis of Factors Affecting Investors’ Perception of Mutual Fund Investment

Abstract

Consumer behavior is an important area of research studies. To evaluate the prospects of any kind of product irrespective of its nature, one should be aware of the behavior of the consumer. If we look into the financial market in general, the research studies have been conducted based on statistical observation, technical analysis and fundamental analysis. Investor’s expectation is a very important factor in this regard that needs to be analyzed by all alternative investment avenues. The success of any mutual fund, a popular means of investment, depends on how effectively it has been able to meet the investor's expectation. The present study focuses on measuring the investors' expectation and their preference. It also attempts to gauge the factors that they take into consideration before making any investment in mutual fund as well as the awareness level among individual investors regarding mutual fund investment. The sample survey has been conducted in Kolkata city during the period November 2008-January 2009. A sample of 100 individual mutual fund investors has been surveyed through a pre-tested questionnaire. The individual investors include people who have invested in mutual funds and have some knowledge about the basic terminologies involved with mutual funds. An attempt has been made to identify the factors perceived to be important by the investors before investing in any mutual fund. This study will add value to the body of knowledge in this field, from the point of view of researchers and academicians.