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Risk Perception of Mutual Fund Investors


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1 School of Business Studies, Islamic University of Science and Technology, Jammu and Kashmir, India
     

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Every investor likes return and dislikes risk, but risk is deeply ischolar_mained in all financial markets. A positive relationship persists between risk and return. Mostly investors are risk averse, which means that if everything else is the same, they will select the investment that offers greater certainty. The main objective of this study is to reveal the risk perception of Mutual Fund Investors of Jammu and Kashmir, as risk perception of individual investors usually affects their investment decision. The study considers some of the important factors for understanding the risk perception of individual/retail mutual fund investors of Jammu and Kashmir. For measuring the respondents’ perceptions, the study employs the Likert scale technique. The study employs the Factor Analysis technique to identify the underlying dimensions or factors that explain the correlations among a set of variables regarding the risk perception of mutual fund investors.

Keywords

Mutual Fund Investors, Risk Perception, Factor Analysis, Risk Averse, Market Risk.
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  • Risk Perception of Mutual Fund Investors

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Authors

Sharika Hassan
School of Business Studies, Islamic University of Science and Technology, Jammu and Kashmir, India
Asif Iqbal Fazili
School of Business Studies, Islamic University of Science and Technology, Jammu and Kashmir, India

Abstract


Every investor likes return and dislikes risk, but risk is deeply ischolar_mained in all financial markets. A positive relationship persists between risk and return. Mostly investors are risk averse, which means that if everything else is the same, they will select the investment that offers greater certainty. The main objective of this study is to reveal the risk perception of Mutual Fund Investors of Jammu and Kashmir, as risk perception of individual investors usually affects their investment decision. The study considers some of the important factors for understanding the risk perception of individual/retail mutual fund investors of Jammu and Kashmir. For measuring the respondents’ perceptions, the study employs the Likert scale technique. The study employs the Factor Analysis technique to identify the underlying dimensions or factors that explain the correlations among a set of variables regarding the risk perception of mutual fund investors.

Keywords


Mutual Fund Investors, Risk Perception, Factor Analysis, Risk Averse, Market Risk.

References