Factors affecting investment decision in mutual funds

Abstract

ABSTRACT newlineOver the years, the investment avenues are changed and investor s preference and newlinearea of interest has been changed i.e. most of the investors preferred banks, post office, newlinegold as investment option. But with the change of recent scenario in the economy, newlineinvestors explore the other options of the investment. With the help of financial literacy newlineof investors towards Mutual Funds through Government programs, the more and more newlineinvestors are taking interest to invest the money in Mutual Funds. Mutual fund provides newlinethe higher returns at low risk through diversified portfolio. The present is based on newlineprimary and secondary data. The primary data was collected through the well-structured newlinequestionnaire (based on the objectives and hypothesis) and the secondary data is used to newlineget knowledge about the growth of the industry. newlineThe present study identifies the preference and awareness level of the investors newlineand also tries to understand the problems faced by the investors while investing the newlinemoney in Mutual Funds in Tricity i.e. Chandigarh, Mohali and Panchkula. The study also newlineidentifies the factors which are affected to individual to invest money in different newlineavenues and the factors which are affecting the Mutual Fund Investors while investing newlinetheir money in Mutual Funds. newlineA sample of 500 respondents was interviewed through questionnaire. For newlineanalyzing the collected data, various statistical techniques are used i.e. percentage newlineanalysis, frequencies analysis, Ranking method, crosstab analysis and chi square test. newlineThe analysis of secondary data reveals that private sector ruling over the public newlinesector as Sector-wise mobilization of resources in the private sector (outflow) in the newlinefinancial year 2010-11 was 38.89 percent and in the public sector(outflow) was 61.11 newlinepercent in the financial year whereas in the financial year 2016-17 the share of the newlineprivate sector(inflow) has increased to 81.44 percent and the share of the public sector newlinewas 18.56 percent.