Factors affecting mutual fund investors in India: A review

Abstract

This study identified different factors which are motivating investors to invest in mutual fund and factors which are discouraging them not to invest in mutual fund. This study considered 20 research papers and mostly researchers have used one way ANOVA and Regression Analysis to find out important factors. There are various factors identified through this study like Tax benefit, Past performance, advisor effect, risk involved are major factors which are motivating them and factors like lack of knowledge and awareness, negative feedback by friends and relatives, Lack of procedural clarity, High risk, Difficulty in selecting the mutual fund scheme, Ineffective management of fund manager, improper regulation and Lack of proper grievance redressal system and behavior of investors are discouraging the investors to invest in mutual fund. This study suggests recommendations for the mutual fund companies and suggestions for future research.