UNDERSTANDING INVESTOR BEHAVIOR TOWARDS MUTUAL FUNDS: INSIGHTS AND STRATEGIES

Abstract

This study explores the investment behavior and perceptions of mutual fund investors in Chennai, focusing on the key factors that influence their decisions and investment patterns. The research investigates demographic variables, financial literacy, risk perception, and the role of financial awareness in shaping mutual fund investments. Through an analysis of investor attitudes and behaviors, the study identifies the main drivers of mutual fund adoption and highlights the psychological factors affecting investment choices. The findings reveal significant differences in investment preferences across age groups and educational levels, emphasizing the importance of financial education and awareness. The study is based on a sample of 85 mutual fund investors from Chennai. A quantitative research methodology was employed, utilizing a structured questionnaire to collect primary data, and binary logistic regression was used to assess the relationship between various factors and mutual fund investment behavior. The study provides actionable insights for financial institutions and policymakers to enhance strategies for engaging diverse investor segments, particularly in emerging markets like Chennai.