Publication Details
Abstract
In India Mutual funds have emerged as one of the fastest-growing investment options. They offer professionally managed portfolio along with liquidity and diversification, and opportunities for long-term wealth creation. During the last decade, the mutual fund sector in India has expanded substantially as reflected in the rise in Assets Under Management, investor folios, and SIP’s contributions. Despite this growth, many retail investors still hesitate to invest in mutual funds. This hesitation limits wider participation and affects the aggregate increase of the mutual fund industry. Therefore, understanding the factors responsible for investor hesitation has become focused area of research. The study analysed the factors responsible for retail investors' hesitation towards mutual fund investment. It also analyses investors' perception and provides suitable measures to reduce investment hesitation. The study revealed that investor perception is strongly related to investment opportunities. It is also related to investment challenges. However, the relationship with challenges is weaker. The results of regression states that opportunities of investment have a remarkable impact on investor perception. Investment challenges do not have a remarkable influence when opportunities and challenges are examined simultaneously. The analysis further indicates that gender, education, residential area, and monthly income are related to investor perception. However, age, occupation, marital status, and monthly savings do not show a significant relationship. The findings suggest that strengthening investor’s financial knowledge can reduce investor hesitation. Simple and clear investment information can also help. Enhanced investor awareness may therefore contribute to greater participation in mutual fund investment.