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

Knowledge Levels of Mutual Fund Investors


Affiliations
1 Assistant Professor, GITAM School of International Business, GITAM University, Visakhapatnam, A.P
     

   Subscribe/Renew Journal


As an anonymous saying goes "Knowledge is one factor of production that does not give diminishing returns". When this is extended to the knowledge of the investors it can be presumed that with increased level of knowledge the investors would derive maximum utility only when they use the acquired knowledge by experimenting with innovative and risky investment opportunities. But the level of knowledge - high or low will in turn affect the risk perception of an investor or it may be vice versa i.e. the low or high risk appetite may be due the levels of knowledge. With this background the researcher in the present study makes an attempt to understand knowledge (limited to mutual fund investments) of respondents and find if there exists any relationship between risk and knowledge.

Keywords

Risk Perception, Knowledge Levels, Mutual Fund Investors, Mutual Funds
Subscription Login to verify subscription
User
Notifications
Font Size


  • Al-Ajmi, J.Y., 2008. Risk Tolerance of Individual Investors in an Emerging Market. International Research Journal of Finance and Economics, Issue 17, 15-26.
  • Alexander, G.J.; J. D. Jones, and P. J. Nigro, 2009. Mutual Fund Shareholders: Characteristics, Investor Knowledge, and Sources of Information. Retrieved from www.ingentaconnect.com/content/els/10570810/1998/... /art0002.
  • Cianci, A.M.,and S. Kaplan, 2008. The Effects of Management’s Preannouncement Strategies on Investors’ Judgements of the Trustworthiness of Management. Journal of Business Ethics, Vol. 79: 423- 444.
  • Detzler, M.L., 2002. The Value of Mutual Fund Rankings to the Individual Investor. Journal of Business and Economic Studies, Vol. 8(2):48-72.
  • Diacon, S., 2004. Investment Risk Perceptions: Do consumers and Advisers agree? International Journal of Bank Marketing, Vol.22 (3):180-199.
  • Ganesan, P., K. T. Rengamani, H. M. Sajjad, 2006. Can ULIP Products Lure Mutual fund Investors? A Case Study of Indian Retail Investor. Journal of Management Research, Vol. 1 (4): 39:48.
  • Grossman, S. and J. Stiglitz, 1980. On the Impossibility of Informationally Efficient Markets. American Economic Review, Vol.70: 393-408.
  • Grossman, S., 1976. On the Efficiency of Competitive Stock Market when Traders have Diverse Information. Journal of Finance, Vol 31: 573-585.
  • Huberman, G., 2001. Familiarity Breeds Investment. Review of Financial Studies, Vol.14:659-680.
  • Indro, D.C., 2004. Does Mutual Fund Flow Reflect Investor Sentiment? The Journal of Behavioral Finance, Vol.5 (2):105-115.
  • Iyer and Bhaskar, 2002. Investors’s Psychology: A Study of Investor Behavior in Indian Capital Market. Finance India, Vol. XVI (4):1357-1375.
  • Karlsson, A., and L. Norden, 2008. Investor Competence, Information and Investment Activity. Working Paper Series, Stockholm University. Retrieved on 17th August http://papers.ssrn.com/sol3/papers.cfm?abstract_id=10 0719.
  • Karmarkar, M., 2001. Investment Behavior of Household sector- A study of a Rural Block in West Bengal, The Indian Journal of Commerce, 58-65.
  • Martenson, R. 2008. Are Men better investors than Women? - Gender Differences in Mutual Fund and Pension Investments. Journal of Financial Services Marketing, Vol: 13(1):72–81.
  • NCAER, 2000. Survey of Investors, Securities Exchange Board of India, New Delhi.
  • Qamar, F., 2003. Saving Behavior and Investment Preferences among Average Urban Households. The Indian Journal of Commerce, Vol.56 (1): 36-49
  • Rooij, M., A. Lusardi and R. Alessie, 2007. Financial Literacy and Stock Market Participation. DNB Working Paper No. 146, Michigan Retirement Research Center Research Paper No. 2007-16. Retrieved on 17th August 2009 from http://papers.ssrn.com/sol3/papers.cfm?abstract_id=10 14994.

Abstract Views: 231

PDF Views: 0




  • Knowledge Levels of Mutual Fund Investors

Abstract Views: 231  |  PDF Views: 0

Authors

K. Lubza Nihar
Assistant Professor, GITAM School of International Business, GITAM University, Visakhapatnam, A.P

Abstract


As an anonymous saying goes "Knowledge is one factor of production that does not give diminishing returns". When this is extended to the knowledge of the investors it can be presumed that with increased level of knowledge the investors would derive maximum utility only when they use the acquired knowledge by experimenting with innovative and risky investment opportunities. But the level of knowledge - high or low will in turn affect the risk perception of an investor or it may be vice versa i.e. the low or high risk appetite may be due the levels of knowledge. With this background the researcher in the present study makes an attempt to understand knowledge (limited to mutual fund investments) of respondents and find if there exists any relationship between risk and knowledge.

Keywords


Risk Perception, Knowledge Levels, Mutual Fund Investors, Mutual Funds

References