A Analysis of Selection Behavior of Retail Investors Towards Mutual Funds: A Study with Reference to Ahmedabad District Gujarat

Abstract

The masses in India prefer to save in safe financial instruments. The safety of the money invested is not compromised, and at times, they do not mind accepting lesser returns on their investment. An average small investor generally advocates the phenomenon of risk adversity. But, return on investment in capital markets comes with the associated risk. Going with direct investment in capital market is an expensive proposal, and requires expert knowledge and keeping money in the above mentioned saving instruments does not seem advisable. Therefore, the easy route left with the small investor for earning better return on investment is by investing in mutual funds. However despite the high growth of mutual funds in India, there is a limited understanding of the investor preferences and individual decision making. In fact, the individual investors differ in mutual fund investment decisions. The mutual fund investors consider host of factors while investing in mutual funds. This study attempts to analyze the selection behavior of retail investors towards mutual funds.