A STUDY OF INVESTOR’S ATTITUDE TOWARDS MUTUAL FUNDS AS AN INVESTMENT OPTION

Abstract

Mutual fund as an investment avenue provides a platform to the investor who does not want to take high risk on their hard-earned investment. In India, mutual fund industry is growing rapidly and this industry has emerged as an important segment of the financial market of India, especially in channelizing and mobilizing the savings of millions of individuals into the investment in equity and debt instruments. Mutual fund investment is less risky than investing directly in stocks and is therefore a safer option for risk averse investors. A competent fund manager should analyse investor behaviour, perception, and attitude and understand their needs and expectations to gear up the performance to meet investor expectations and requirements. Also, the mutual fund industry today is one of the most preferred investment options of all over the world. It plays a crucial role in the economic development of a country. Mutual fund active involvement can be seen by their dominant presence in the money market as well as the capital market. They are also found very active in the stock market by way of ensuring stability as a supplier of large funds through steady absorption of floating stocks. Investors invest directly in individual securities or indirectly through a financial intermediary. Study intends to identify the usage of schemes and level of risk on the basis of their income level. The findings of the study indicate that the majority of the selected respondents have used open ended schemes with moderate risk.