The contemporary Indian financial market is becoming competitive and the supply of various financial instruments needs to be in equilibrium to the demand perspectives of the investors. The prime drive of any investment is to get extreme return with a minimum risk and mutual funds offer the occasion for the investors. The research provides an insight into the types of risks which exist in a mutual fund scheme. The data was collected from mutual fund investors as well as non-mutual fund investors of this industry. The research focuses on the relationship between investment decision and factors like liquidity, financial awareness, and demography. It was found low risk funds and liquidity of fund scheme is having impact on the investor‟s perception for capitalizing in the mutual fund. Mutual funds act as a medium for retail investors to capitalize their reserves in the professional funds management system, irrespective of the sum invested. It enables masses to enter the Indian Financial Market with much more ease. Indian Mutual Funds industry is increasing speedily which is replicated with the growth in properties under management under numerous AMC‟s year on year. Investment in mutual funds is less hazardous when associated to speculation in equities marketplace. Less risk collective with reasonable revenues and professional management act as a magnet for the risk antagonistic investors to invest their reserves in the financial markets.
Volume 12 | Issue 3