The Impact of Inflation and Unemployment on Mutual Fund Investment Decisions: A Study on MBA Students

The Impact of Inflation and Unemployment on Mutual Fund Investment Decisions: A Study on MBA Students

A Project Report

Of
MASTERS OF BUSINESS ADMINISTRATION

ADITI JINDAL (12317853),Student, Mittal School of Business, Lovely Professional University      ,Phagwara (Punjab)

DEVANSH CHAUDHARY (12316517) Student, Mittal School of Business, Lovely Professional University ,Phagwara (Punjab)

SOURAV KUMAR RAM(12301995) Student, Mittal School of Business, Lovely Professional University ,Phagwara (Punjab)

Under the Guidance
DR.ABHISHEK SHARMA
Mittal School of BUSINESS
Lovely Professional University ,Phagwara(Punjab)

ABSTRACT

Investment choices are heavily impacted by macroeconomic forces, with unemployment and inflation as two key variables determining financial actions. Although experienced investors tend to utilize historical events and market information to respond to economic conditions, novice investors, including MBA students—are learning to make their financial choices. The purpose of this research is to investigate the influence of inflation and unemployment on investment decision-making in mutual funds among MBA students, who have financial acumen but a lack of practical investment experience. The study is grounded on primary data gathered from a random sample of 60 MBA students using structured questionnaires. The research investigates how inflation influences investment behavior by decreasing purchasing power, raising uncertainty, and changing risk perception. It also analyses the impact of unemployment, which has a direct effect on disposable income, financial security, and investment confidence. Through analyzing students' attitudes toward these economic conditions, the research aims to determine their investment choices, risk appetite, and financial planning behaviors. Collected information is worked out by employing descriptive statistics, correlation analysis, and trend assessment to understand main investment decision-making patterns. The outcome of this study provides vital insight into the thinking of young professionals concerning and handling economic uncertainty issues as related to investing in mutual funds. Research provides an indicator of financial knowledge gaps and psychological biases affecting decision-making among such young professionals with some recommendations regarding developing financial consciousness programs by finance teachers, investment houses, and government policy-making units. By closing the gap between theoretical finance and actual investment behavior, this research adds to the emerging area of behavioral finance. It underlines the necessity of improved financial education and informed investment planning in order to assist young investors in effectively facing economic hardships.

Keywords: Mutual Fund Investments, Inflation, Unemployment, Investment Decision-Making, MBA Students, Behavioral Finance, Financial Literacy, Risk Perception, Economic Uncertainty, Investment Preferences.