An Empirical Study on investors behavioural pattern towards mutual fund with reference to four major cities of Gujarat State

Abstract

The study is about the investor s behavioural pattern towards mutual fund investment with reference to Gujarat state. It seems that many investors are preferring mutual fund investment in order to get high returns and with low level of risk than direct investment in stock market, safety and liquidity with professional management. Day by day investment pattern of investors keeps on changing and behavioural pattern of investors is highly influenced by their socio- economic profile and the characteristics of investment. newlineMutual dun is a set up having all features of trust and acts like trustee of investors and invest their money in different avenues of money market and capital market and earns high return with the skilled and professional fund managers which is distributed among the investors. In India now a days people are preferring mutual fund investment which is becoming popular and has achieved the trust of investors but still its not like developed countries like the US and the UK, to increase the mutual fund investment up to that level and to create such awareness this research has been done and suggestions are given to mutual fund companies which would be helpful to them for creating more investment in mutual fund. newlineThe conclusions are drawn only with respect to investors of Gujarat. This study concludes that several demographic factors like age, marital status, gender, city, level of income, occupations and qualifications etc. have major impact on investment decision of investors towards mutual fund. There has been a remarkable growth noticed in the mutual fund industry in India in last dickey. Increasing number of Asset based Management Companies which are providing various schemes and different modes of investment to the Investors has encouraged more and more investors. There are certain factors that affect investment decision with respect to mutual fund are Safety, Returns, Transparency, Liquidity, Tax benefits and flexibility.