Investment in Mutual Fund: Risk and Return Tradeoff

Abstract

India is currently undergoing a phase characterized by heightened saving and investment activities, particularly driven by the burgeoning working class. The swift growth of the Indian mutual fund industry has resulted in a substantial increase in assets managed by various fund companies. This research examines multiple factors that elucidate investors' preferences and behaviors concerning mutual funds. The study investigates the influence of diverse demographic and behavioral elements on investors. The research design, methodology, and approach are grounded in surveys and empirical analysis, with data collected from both primary and secondary sources. Hypotheses were tested using frequency distribution, percentages, the chi-square test,  to ensure consistency. The findings reveal that investors' perceptions are shaped by economic, social, geographical, and demographic factors, including age, gender, marital status, occupation, financial literacy or awareness, access to banking and financial services, peer influence, and geographic location. Each of these factors uniquely impacts investors' investment decisions. This study distinguishes itself through its approach and seeks to contribute to the existing literature by developing a conceptual framework.