Volume : 5, Issue : 9, September - 2016

INVESTOR BEHAVIOR TOWARDS MUTUAL FUND: A CHALLENGE TO MUTUAL FUND INDUSTRY IN INDIA

Dheeraj Agrawal

Abstract :

<p>&nbsp;Behavior of the individual is a psychological process and to understand it sometimes become a bit difficult. When there is a involvement of money, people become very conscious and starts comparisons. As investment in Mutual Fund products involve risk so people most of the times avoid investing in these products and move towards safe investments. So this study is related to understand the behavior of investor in selection of a Mutual Fund product. The objectives of the study are to identify the preference of investor among different alternative investment avenues available to them and to analyze the factors affecting investor behavior in the Mutual Fund investment. The data was analyzed using Correlation Analysis, Regression Analysis, Cronbach&rsquo;s Alpha etc. The study shows that bank deposits are most preferred investment avenue by the investor over other alternatives available, there is a significant positive impact of Fund related qualities, Fund sponsor qualities &amp; Investor related services on behavior of the investor. To influence the behavior of the investor Mutual Fund organization should provide variety of products with customized options so that investor get attract towards investments in Mutual Fund products.</p>