Jaipuria International Journal of Management Research

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Factors Affecting Small Investors Behavior: Empirical Evidence from Mutual Fund Investors of a District of Uttarakhand


Affiliations
1 Research Scholar, Department of Commerce and Management, Kumaun University, Bhimtal, Uttarakhand, India
2 Professor, Department of Commerce and Management, Kumaun University, Bhimtal, Uttarakhand, India
3 Associate Professor, Symbiosis International (Deemed ) University (SIU), Pune, Maharashtra, India
     

   Subscribe/Renew Journal


Purpose: This study is meant to analyze investment behavior of the small investors towards mutual funds at district level of a state and to determine various factors which prompt the small investors to invest in mutual funds.

Design/Methodology/Approach: This study is descriptive in nature and used factor analysis on the data collected from 108 respondents out of 120 to whom questionnaire was distributed. For research, primary data is collected and used and secondary data is used for literature review. In this study authors have taken the principal component analysis approach to determine the variables affecting the behavior of small investors towards the mutual fund investments.

Findings: The study revealed that mainly males between 34-41 age group in middle class income range had been investing in mutual funds. This study concludes that the fund manager experience, fund performance, scheme risk and the low risk and high returns are the main factors appraised by the small investors while investing in mutual funds.

Research Implications: This study can be used by the mutual fund companies in creating their strategies for attracting the small investors. Deploying their best fund managers, introducing diversified schemes, with high growth and liquidity, and showcasing tax benefits, past fund performance, low risk and time horizon may prove success strategies for attracting small investors towards mutual funds.


Keywords

Investors Behaviour, Mutual Funds, Small Investors, Investment Behaviour.
User
Subscription Login to verify subscription
Notifications
Font Size

  • Kaur, I. (2018). Mutual Fund Investor's Behaviour towards Information Search and Selection Criteria. Qualitative Research in Financial Markets, 10(4), pp.395-414.

  • Kaur, I. & Kaushik, K.P. (2016). Determinants of Investment Behaviour of Investors Towards Mutual Funds. Journal of Indian Business Research, 8(1), pp.19-42.

  • Arathy B, Aswathy, A. N., Anju, S.P. & Pravitha, N R.(2015). A Study on Factors Affecting Investment on Mutual Funds and its Preference of Retail Investors. 5(8).

  • Chaubey, D.S. & Dimri, R.P. (2009). Investment Pattern: A Psychographic Study of Investorsof Garhwal Region of Uttarakhand. International Journal of Management Sciences, 5(1)pp.17-33.

  • Chawla, Deepak. (2014). An Empirical Analysis of Factors Influencing Investment in Mutual Funds in India. Global Business Review. 15. 493-503. 10.1177/0972150914535136.

  • Dhar, S., Salema, S. & Saha, A. (2018). Factors Affecting Individual Investor Behavior: Empirical Evidence from Mutual Fund Investors in Dhaka City. Management Development, 31(3&4), pp. 79-101.

  • Jamaludin, N., Smith, M. & Gerrans, P. (2012). Mutual Fund Selection Criteria: Evidence from Malaysia. Asian Review of Accounting, 20(2), pp.140-151

  • Kandavel, D. (2011). Factors Influencing the Retail Investors to Prefer Investment in Mutual Funds in Puducherry: An Empirical Study. International Journal of Engineering and Management Research, 1(7).

  • Mishra, R. (2015). Perceptions of Investors towards Mutual Funds: An Analytical Study in Odisha. International Journal on Recent and Innovation Trends in Computing and Communication,3(7), pp.4489-4892.

  • Singal, V.S. & Manrai, R. (2018). Factors Affecting Investment in Mutual Funds. Journal of General Management Research, 5(2), pp.96-107.

  • Singh, B.K. (2012). A Study on Investors’ Attitude towards Mutual Funds as an Investment Option. International Journal of Research in Management, 2(2), pp.61-70.

  • Singh, K.K., Dimri, P. & Singh, J.N. (2014). Green Data Base Management System for the Intermediaries of Indian Stock Market. Conference on IT in Business, Industry and Government (CSIBIG), Indore, 2014, pp. 1-5, doi: 10.1109/CSIBIG.2014.7056996.

  • Trivedi, R., Swain, P. & Dash, M. (2017). A Study of Investor's Perception Towards Mutual Fund Decision: An Indian Perspective. International Journal of Economic Research. 14, pp. 209-19.

  • Ul Hameed, W., Imran, M., Maqbool, N., Ahmed, S. & Azeem, M. (2019). A Prospective Study of Factors that Lead to Invest in Mutual Funds: A Mediating Role of Investor’s Perception. Accounting, pp, 69-80. 10.5267/j.ac.2018.7.002.

  • Veluchamy, R. & Selvaveerakumar, B. (2014). A Study on Factors Influencing for Investment in Mutual Fund among the Investors with reference to Madurai District. Shanlax International Journal of Commerce,2(2), pp. 8191.

  • Wadhwa, B., Kaur, D. & Vashist, A. (2015), Investors Attitude towards Mutual Funds' Investments: A Study of Delhi-NCR Region. IJRSMS, 3(1), pp. 29-32.


Abstract Views: 547

PDF Views: 1




  • Factors Affecting Small Investors Behavior: Empirical Evidence from Mutual Fund Investors of a District of Uttarakhand

Abstract Views: 547  |  PDF Views: 1

Authors

Sachin Rohatgi
Research Scholar, Department of Commerce and Management, Kumaun University, Bhimtal, Uttarakhand, India
P. C. Kavidayal
Professor, Department of Commerce and Management, Kumaun University, Bhimtal, Uttarakhand, India
Krishna Kumar Singh
Associate Professor, Symbiosis International (Deemed ) University (SIU), Pune, Maharashtra, India

Abstract


Purpose: This study is meant to analyze investment behavior of the small investors towards mutual funds at district level of a state and to determine various factors which prompt the small investors to invest in mutual funds.

Design/Methodology/Approach: This study is descriptive in nature and used factor analysis on the data collected from 108 respondents out of 120 to whom questionnaire was distributed. For research, primary data is collected and used and secondary data is used for literature review. In this study authors have taken the principal component analysis approach to determine the variables affecting the behavior of small investors towards the mutual fund investments.

Findings: The study revealed that mainly males between 34-41 age group in middle class income range had been investing in mutual funds. This study concludes that the fund manager experience, fund performance, scheme risk and the low risk and high returns are the main factors appraised by the small investors while investing in mutual funds.

Research Implications: This study can be used by the mutual fund companies in creating their strategies for attracting the small investors. Deploying their best fund managers, introducing diversified schemes, with high growth and liquidity, and showcasing tax benefits, past fund performance, low risk and time horizon may prove success strategies for attracting small investors towards mutual funds.


Keywords


Investors Behaviour, Mutual Funds, Small Investors, Investment Behaviour.

References





DOI: https://doi.org/10.22552/jijmr%2F2021%2Fv7%2Fi1%2F209138