MUTUAL FUNDS AND INVESTORS BEHAVIOUR

Abstract

Mutual funds have been widely acknowledged as a popular investment tool for individuals who are looking to increase their wealth and accomplish their financial objectives for a considerable amount of time. Over the past few years, the study of mutual funds and investor behavior has garnered a substantial amount of attention due to the fact that it is a complex and ever-changing topic. It is essential for both financial professionals and regular investors to have a solid understanding of the complexities of mutual funds and the factors that influence investor behavior. A intriguing connection between mutual funds and investor behavior is going to be investigated, and this preface will lay the context for that investigation. The purpose of this section is to provide a complete overview of the topic, focusing on the most important ideas and topics that will be discussed in later chapters. By delving into the world of mutual funds, we are able to learn about the many investing techniques that are utilized by fund managers, the risks and rewards that are associated with the various types of funds, and the influence that market conditions have on the performance of funds. An investigation into the actions taken by investors in relation to mutual funds is also of equal importance. The judgments, biases, and emotions of investors are critically important factors that contribute to the formation of the dynamics of the mutual fund sector. Exploring the psychological aspects of investing can offer light on the reasons why specific investment choices are made, the role that information processing plays, and the influence that market movements have on investor emotion. We hope that by the end of this investigation, readers will have a full grasp of mutual funds and investor behavior, which will enable them to make educated decisions on their investments and confidently traverse the complex world of finance. Keywords: Mutual Funds, Investor Behaviour, Investment Psychology, Portfolio Management, Risk Tolerance, Asset Allocation, Market Sentiment, Behavioural Finance, Fund Performance, Market Volatility.