Risks, Knowledge and Factors Influencing Investment in Mutual Fund

Description

Risk, Knowledge and Factors influencing Investments in Mutual Funds is a book that provides detailed description of theory, and problem of risk, knowledge and other factors that influence individual investors’ choice of investment in alternate instrument like mutual fund. The study presented revealed that the respondent profile despite being young of age, married, comprising of dual earning couples, with one child and comparatively less dependents are highly risk averse and exhibits a classic Indian investor syndrome of conservative investments and security orientation. Risk profile of the respondents developed to gain deeper insights in to the perception of risk exhibits very low risk tolerance which is further displayed positive for significance when tested against the demographic variables. There was high risk aversion in female respondents, married respondents, respondents between the age group of 30-50 years, respondents with one or more than two children, and respondents between income levels of 20,000-40,000. The second area of analysis on knowledge levels of the respondents in relation to mutual fund plans and mutual fund terms showed that male sample displays higher level of mutual fund knowledge; higher levels of awareness are associated with marital status, single child and lack of dependents. Thirdly on examination of various factors that play a significant role in identifying the most important factor influencing the investors’ mutual fund decision-making was identified as security considerations using factor analysis.