Mutual Fund as an Investment Option: An Analysis of Investor's Perceptions

Abstract

Indian mutual fund industry is playing an important role to provide an alternative avenue to an array of small active investors in a scientific and professional manner. Investment objectives of investors vary due to various demographic factors. It is the need of the hour to identify and measure certain demographic factors affecting investment objectives of small active investors investing in mutual fund. The present study focuses on small active investors of Gangtok (Sikkim) and Siliguri (West Bengal) to fulfill this need.  The research work is exploratory and empirical in nature with descriptive statistics and chi-square test based on the data of the investment objectives of small active investors who are investing in mutual fund. The study concludes that as far as the demographic factors are concerned, geography, age, occupation and income have significant influence on choice of investment decisions in mutual fund.