A Study on Awareness and Investment Behaviour Towards Mutual Funds Among Generation Z College Students

Mutual funds have become an important investment option as they provide professional fund management and portfolio diversification. With the proliferation of online resources and financial information, Generation Z college students are more informed than ever before about the range of investment options. However, the information may not translate into action as students’ financial knowledge, their perception of the risks involved, and their income level can affect their investment behaviour. This paper seeks to assess the level of mutual fund awareness, financial knowledge, and investment behaviour of Generation Z college students. The paper employs a descriptive and analytical study design. The research approach is quantitative in nature. The data for the study were gathered from 53 respondents using a questionnaire administered through Google Forms. The analysis was done using percentage analysis, descriptive analysis, Cronbach’s alpha, Pearson correlation, regression analysis, and chi-square tests. The results of the study revealed that respondents had a fairly high level of awareness of mutual funds with a mean score of 3.73. Similarly, the level of financial knowledge among the respondents was high with a mean score of 3.56. Finally, investment behaviour had the highest mean score of 3.79. The study also established that there was a significant positive relationship between mutual fund awareness, financial knowledge, and investment behaviour. Moreover, the study found that awareness was a better individual predictor of investment behaviour than financial knowledge. The study recommends that financial literacy be emphasized so that students have a clear understanding of the intricacies of making investments in mutual funds and make informed decisions.