A Study on Individual Investor Decision Making on Mutual Fund as a Wealth Creation Tool with Special Reference to Chennai City

Abstract

A mutual fund is a trust that pools the savings of several investors with similar investment objectives. The money collected from investors is invested by a competent fund manager in securities such as shares and debentures. The primary goal of the study is to identify the variables that affect investors' decisions regarding mutual funds. In the study both primary and secondary data are taken, and for the primary data well-structured questionnaire was sent to the investors. From the study it is concluded that returns, liquidity, safety investment, capital appreciation are some of the factors influencing investor decision on mutual funds. The results of the study indicate that multiple key factors play a vital role in influencing an investor’s decision to invest in mutual funds. Chief among these are anticipated returns, the liquidity of the investment, the perceived safety and associated risk levels, and the potential for long-term capital growth. Furthermore, additional elements like the historical performance of mutual funds, the credibility of the fund management company, transparency in operations, ease of investment, and recommendations from financial professionals also contribute to shaping investor preferences. The study concludes that gaining insight into these influential factors can assist mutual fund firms and financial consultants in crafting more targeted and investor-friendly strategies, thereby encouraging more informed investment decisions and increased engagement in the mutual fund market