Determinants of Mutual Fund Investors’ Awareness and Investment Decisions: An Empirical Study of Kurnool District, Andhra Pradesh

The mutual fund industry has emerged as one of the most prominent investment avenues for retail investors due to its professional management, diversification benefits, and relatively lower risk. Investor awareness plays a vital role in influencing investment decisions, particularly in semiurban and developing regions. The present study aims to examine the level of awareness among mutual fund investors in Kurnool District of Andhra Pradesh and to identify the key factors influencing their investment decisions. The study is empirical in nature and is based on primary data collected from mutual fund investors in Kurnool District through a structured questionnaire. Various dimensions of investor awareness, including knowledge of mutual fund schemes, risk–return characteristics, Net Asset Value (NAV), tax benefits, and regulatory aspects, are analyzed. Further, factors such as risk perception return expectations, liquidity, past performance of funds, financial literacy, advisory services, and promotional activities are examined to assess their influence on investment decisions. Statistical tools such as descriptive statistics, factor analysis, correlation, and regression analysis are employed for data analysis. The findings of the study indicate that investors in Kurnool District possess a moderate level of awareness about mutual fund investments, and their investment decisions are significantly influenced by return expectations, perceived risk, and recommendations from financial advisors and peers. The study underscores the need for strengthening investor education initiatives and enhancing transparency and communication by asset management companies to improve awareness levels and encourage informed investment behaviour in the region.