Factors affecting investor's perception of mutual fund investment W.R.T Andhra Pradesh

Abstract

Investment in mutual funds is effected by the perception of the investors. Statement of the problem is ‘size of investors with small savings has been growing rapidly, yet they are having little expertise and they are novice in choosing mutual funds schemes’. Financial markets are constantly becoming more efficient by providing more promising solutions to the investors and some factors influencing success of mutual fund. Hence, there is a need to study investor's perception regarding the mutual funds. Primary data was collected by canvassing structure questionnaire and collected pertinent data from 632 respondents. The respondents have been selected based on the judgment sampling technique, and sample spread over erstwhile Andhra Pradesh in three regions of Andhra, Rayalaseema and Telengana. Hypotheses have been tested using analysis of variance (ANOVA) and Chi-square. The analysis finding suggest that majority of investors perception about mutual funds and are willing to invest in mutual fund. Most preferred scheme is star rating schemes. The study was conducted during 2011–2015.