An Analysis of Investor Perception Towards Mutual Fund Investment

Abstract

Mutual funds is widely recognized as popular investment alternative due to their diversification, professional management, liquidity & potential for long-term wealth creation. This study analyzes Investors' views on mutual funds by analyzing the influence of level of awareness, expected return, tax benefits, risk perception, and trust. The study gathered information from 110 MUTUAL FUND investors in Bangalore by using a structured questionnaire, and the responses are analyzed with the descriptive statistics & multiple regression analysis. The result indicates that the trust, risk perception, & Many investors consider tax benefits before making investment decisions perception, while the investor awareness and expected return do not show a strong effect. The learning points out that improving financial awareness, maintaining transparency, and building investor sureness may inspire more people to invest regarding Investment schemes and also support the overall increasing popularity of mutual fund industry. The findings also reveal that most investors prefer mutual funds because they provide better diversification, professional fund management, and flexible investment options such as Systematic Investment Plans (SIPs). The analysis suggests that trust in fund houses plays the most important role in influencing investment decisions, followed by risk perception and tax benefits. These results can help mutual fund companies, financial advisors, and policymakers understand investor expectations and improve investment awareness programs. The study highlights that increasing financial literacy, maintaining transparency, and providing reliable investment information can encourage more people to invest in mutual funds. This will not only improve investor confidence but also support the long-term growth and development of the mutual fund industry.