A STUDY ON INVESTORS’ PERCEPTION AND INVESTMENT BEHAVIOUR TOWARDS MUTUAL FUNDS IN THE DIGITAL ERA

Abstract

Mutual funds have become an important investment avenue for individuals seeking diversification, professional management and relatively convenient access to financial markets. The decision to invest in a mutual fund, however, is influenced not only by expected returns but also by risk perception, investment knowledge, liquidity, past experience, financial goals and confidence in fund managers and institutions. This study examines investors’ perception towards mutual fund investment and identifies the major factors that influence their investment decisions. The study uses a descriptive research design and considers primary responses from 100 hypothetical respondents for academic analysis. Variables considered include awareness, safety, return expectation, liquidity, tax considerations, professional management, systematic investment plans and risk. The analysis indicates that investors generally view mutual funds positively, particularly because of diversification and professional management. At the same time, risk, lack of product knowledge and uncertainty regarding returns remain important concerns. The paper suggests stronger investor education, clearer product communication and goal-based financial guidance to improve informed participation in mutual funds.