|
Abstract:
|
Unfortunately, in India it is a fact that most of the investors are not
interested in mutual funds. Those who are investing, they are investing
only very small amounts. But what is important to be noted here is that when compared to other financial instruments, investments in mutual
funds are safer and also yields more returns on the investment portfolio.
Moreover as an investment avenue mutual fund is available for those
investors who are not willing to take any exposure directly in the security
market. It also helps such investors to build their wealth over a period of
time. At the retail level, investors are unique and are highly
heterogeneous, and the mutual fund schemes' selection will also differ
depends on their expectations. Hence, investors’ expectation is a very
important factor in this regard that needs to be analysed by all the
investment houses. Hence, the factors that drive the investment decisions
of individual investors to meet their expectations by investing money in
mutual funds need an in-depth analysis. These driving forces include the
preference of investors on mutual fund compared to various available
avenues of financial investments, risk attitude of investors, influence of
characteristics of instruments of mutual funds on investors, the
investment specific attitudes of investors, and influence of qualities of
fund management on investors. The success of any mutual fund, a
popular means of investment, depends on how effectively an Asset
Management Company has been able to understand the level of influence
of these factors on the decision of investors to invest in mutual funds.
For a substantial growth in the mutual fund market, there must be a high
level precision in the design and marketing of the products of mutual
funds taking into account these driving forces by the Asset Management
Companies. Therefore, there is a need to conduct a detailed study on
investments in mutual funds in this direction. A review of available
literature also revealed that no detailed study on mutual funds has so far
been attempted in this direction; hence the present study on Driving
Forces of Investment Decisions in Mutual Funds is undertaken. |