Factors affecting the financial investors’ decision in the adoption of mutual funds

Abstract

Mutual fund industry in India has been rapidly growing during the past few years. Presently, most investors prefer to invest on mutual funds as compared with direct investment in stock market because they realize this sector as safe heaven or more beneficial. The present study focuses on distinctive major factors moving the financial investors in adoption of mutual funds. Questionnaire with twenty variables and statements is developed while taking into account the recommendation of experts of the sphere and the responses from the investors collected based on the five Likert scale on the variables. Demographic profile of the investors is elaborated with frequency distribution and the results and discussion are made on with the help of factor analysis. The validity of the data is checked through Cronbach’s Alpha and pre-analysis confirmation for judging the correctness of the whole sample for sphericity is checked through Kaiser-Meyer-Olkin test.

Keywords

• Mutual fund
• Financial investment
• Factor effecting the decision