Measuring the Level of Awareness of Mutual Fund Investors

Abstract

Mutual Funds in India are gaining popularity now days and the contribution of investment is rising in these types of investments. But the awareness level of investors in this regard needs attention. The rise of Mutual Fund Industry is totally dependent upon the level of awareness among its investors. So, it becomes important to check the awareness level of the investors so that the growth of this sector could be understood and the potential could be checked to attract more investors. The main aim of the current study is to check the awareness level of the Indian investors in mutual funds. In this study, theory of planned behavior is being used as a base to examine the level of awareness of an investor. The results are based on 300 responses from the primary data collected from North India. To check the awareness level, the underlying factors are taken as General Information, Easiness & Benefits and Cautiousness. With this, the relationship between annual income of the investor with the preferred mutual fund scheme and the relationship between the age level and the choice of mutual fund investment has also been checked. For this purpose, the Simple Percentage Analysis, Chi-Square Test, Karl Pearson’s Correlation and One Way ANOVA has been used. The results of this study clearly show the awareness level of investors, With this, it is also proved that the annual income have an impact on the choice of mutual fund investment and age plays a significant role while the preferred mutual fund scheme is decided.