An Individual Perception and Consumer Behavior on Mutual Funds

An Individual Perception and Consumer Behavior on Mutual Funds

Abstract

A mutual fund is a professionally managed collective investment instrument that combines money from many participants to buy assets. Because there is no legal definition of a mutual fund, the word is usually used exclusively to collective investments that are regulated, accessible to the general public, and have an open-ended character. When opposed to direct investment in individual stocks, mutual funds offer both benefits and drawbacks. They now play a significant role in family budgets. As a result, the current research focuses on customer behavior toward mutual funds, with a specific focus on ICICI Prudential Mutual Funds Limited, Vijayawada. Data was gathered from both primary and secondary sources. 

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A systematic questionnaire was used to gather primary data. The data was collected using the convenience sample technique, and the whole research was performed in Vijayawada City. The research discusses investor knowledge of mutual funds, investor views, preferences, and the degree of satisfaction with mutual funds. Some recommendations were also given to raise mutual fund awareness and methods to pick suitable mutual funds to optimize returns.


Introduction

A mutual fund is a professionally managed collective investment instrument that combines money from many participants to buy assets. Because there is no legal definition of a mutual fund, the word is usually used exclusively to collective investments that are regulated, accessible to the general public, and have an open-ended character. Unit Trust of India was the first mutual fund established under a distinct statute, the UTI Act, in 1963, and began operations in 1964 with the issuance of units under the scheme US-64. 

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Mutual funds in India must be registered with the Securities Exchange Board of India (SEBI), which is the regulating authority for all mutual funds. The sole exception is the UTI, which is a company established by a separate Act of Parliament. When opposed to direct investment in individual stocks, mutual funds offer both benefits and drawbacks.


Conclusion

Mutual funds are a decent source of returns for the majority of families, and they are especially beneficial to retirees. However, ordinary investors continue to limit their options to traditional alternatives such as gold and fixed deposits, despite the fact that the market is inundated with numerous investment possibilities, such as mutual funds. This is due to a lack of understanding about how mutual funds operate, which causes many investors to be wary of mutual fund investments. 

For More Details About an Individual Perception and Consumer Behavior on Mutual Funds Please Visit Our Website


Or call us +91 9481545735

In reality, many individuals who invest in mutual funds are unfamiliar with how they work and how to manage them. As a result, companies that provide mutual funds must give potential investors with comprehensive information on mutual funds.

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