A Study on Mutual Fund Investor Awareness

Mutual funds have emerged as one of the most preferred investment avenues among retail investors due to their ability to provide diversification, professional management, liquidity, and long-term wealth creation opportunities. Despite the rapid growth of the mutual fund industry in India, investor awareness and financial literacy continue to influence investment decisions significantly. The present study examines the level of awareness among investors regarding mutual fund investments and identifies the factors influencing their investment behaviour. The research also evaluates investors' understanding of risk, return, Systematic Investment Plans (SIPs), Net Asset Value (NAV), taxation benefits, and fund selection criteria. The study is based on primary and secondary data. Primary data were collected through a structured questionnaire administered to mutual fund investors, while secondary information was gathered from books, research journals, annual reports, and publications issued by financial institutions and regulatory bodies. Descriptive statistical techniques were employed to analyse investor responses and interpret investment patterns. The findings indicate that investor awareness has improved considerably due to technological advancements, digital investment platforms, and financial literacy initiatives. However, several investors continue to possess only basic knowledge regarding mutual fund products and remain dependent on financial advisors or recommendations from friends and family while making investment decisions. Risk perception, expected return, convenience, tax benefits, and investment objectives emerged as the primary determinants influencing investment choices. Younger and educated investors demonstrated relatively higher awareness levels compared with other demographic groups. The study concludes that enhancing financial literacy through investor education programmes, digital awareness campaigns, and simplified investment information can significantly improve investor confidence and participation in mutual fund investments. The findings may assist policymakers, asset management companies, financial advisors, and researchers in understanding investor behaviour and designing strategies that promote informed investment decisions and strengthen financial inclusion.