A Comprehensive Analysis of Multi-Factor Scale in Understanding the Perception of Mutual Fund Investors in Equity Schemes

Abstract

One of the most important factors that determine whether or not an economy can expand and thrive is the degree to which it provides incentives for investment in the sector. Certain specialized organizations are required to be involved to successfully mobilize the finances of the general public for the goal of achieving beneficial outcomes. Therefore, mutual funds are the best option for the average investor since they can provide a cost-effective way to participate in a professionally managed and diversified collection of assets. This makes them the ideal alternative for the normal investor.
 The purpose of this research is to investigate the many aspects of investor perception and investigate the significance of these aspects to finance professionals working in the sector of investment. A conceptual model of the flow of mutual funds is built, operationalized, and verified with the help of a sample size of 131 investors. The findings demonstrate that each of the five dimensions—namely, risk, return, fund features, fund manager, and fund group—plays a significant role in determining the perspectives that investors have on their decisions to invest in mutual funds. Methods of exploratory and confirmatory factor analysis were used to evaluate the dimensions.