Mutual Fund Purchases by High Net Worth Individuals in India

Mutual Funds (MFs) are an investment avenue for small investors. However, it has been observed that Indian MFs industry is dominated by institutional investors who hold about 65% of the Indian mutual fund assets, whereas retail investors account for only 1.3%. In the last decade, High Net Worth Individuals (HNWIs) have emerged as prominent players in the MF segment. A number of studies have been conducted to identify factors that motivate small investors to invest in Mutual Funds. There is sufficient amount of research that would help identify factors, which influence non Indian HNWIs, but research relating specifically to Indian HNWIs is lacking. This study aims to identify factors that drive Indian HNWIs to invest in Mutual Funds.