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DOI: 10.5281/zenodo.17642374
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A S udy on In es o Beha iou Towa ds Mu ual Funds in India
Ms. T. Nandhini.
M.com. (Assis an P o esso o Comme ce)
M .M. Sa an aj. II M.com
.,
S i K ishnasamy A s and Science College, Me amalai.
ARTICLE INFO ABSTRACT
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Pape ID: IJRM-
691B34E6382CE
Recei ed: 2025-10-12
Published: 2025-11-18
DOI:
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0.5281/zenodo.176423
74
Page No: 31-37
The mu ual und indus y in India has e ol ed as a signi ican in es men a enue
o bo h small and la ge in es o s o e he las ew decades. This pape a emp s o
unde s and he gene al beha iou al ends o Indian in es o s owa ds mu ual und
in es men s by examining psychological, demog aphic, and economic ac o s ha in luence
hei decisions. The s udy highligh s ha in es o s’ choices a e p ima ily d i en by isk
pe cep ion, awa eness le el, income, and educa ion. Wi h he ad en o echnology and
digi al pla o ms, access o mu ual unds has become easie , leading o g owing pa icipa ion
among young in es o s. Howe e , many e ail in es o s s ill lack adequa e knowledge abou
he di e en ca ego ies o unds, ma ke isks, and long- e m bene i s. This s udy
emphasizes he impo ance o inancial li e acy, in es o educa ion, and anspa ency in he
mu ual und ecosys em. I concludes ha c ea ing awa eness, simpli ying p ocesses, and
imp o ing us can u he enhance mu ual und pene a ion in India and con ibu e o he
g ow h o he Indian capi al ma ke .
Keywo ds: In es o Beha iou , Mu ual Funds, Risk Pe cep ion, Financial
Awa eness, In es men Decision, India
In oduc ion
In es men plays a c ucial ole in he economic de elopmen o any coun y by
mobilizing sa ings and channelizing hem in o p oduc i e uses. In ecen yea s, mu ual unds
ha e eme ged as one o he mos a ac i e and con enien in es men a enues in India,
especially o e ail in es o s who p e e p o essional managemen and di e si ica ion o isk.
A mu ual und pools money om mul iple in es o s and in es s in di e si ied secu i ies such
as equi ies, bonds, and money ma ke ins umen s, he eby educing indi idual isk exposu e.
The Indian mu ual und indus y has shown emendous g ow h du ing he las wo
decades, suppo ed by inancial e o ms, echnological ad ancemen , and g owing awa eness
INTERNATIONAL JOURNAL OF RESEARCH IN MANAGEMENT
A ailable online on h p://www. spublica ion.com/ij m/ij m_index.h m
ISSN 2249-5908
Ci e This Pape : Ms. T. Nandhini.and M .M. Sa an aj. (2025). "A S udy on In es o
Beha iou Towa ds Mu ual Funds in India". INTERNATIONAL JOURNAL OF
RESEARCH IN MANAGEMENT (IJRM), ol. 15, no. 6, 2025, pp. 31-37. DOI:
h ps://dx.doi.o g/10.5281/zenodo.17642374
In e na ional Jou nal o Resea ch in Managemen ISSN 2249-5908
A ailable online on h p://www. spublica ion.com/ij m/ij m_index.h m Volume 15 No. 5, 2025
DOI: 10.5281/zenodo.17642374
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among he public. Wi h he apid expansion o digi al pla o ms, in es o s can now access,
compa e, and in es in mu ual und schemes om he com o o hei homes. Howe e , despi e
he inc easing popula i y o mu ual unds, he pa icipa ion o small and u al in es o s s ill
emains ela i ely low due o limi ed inancial li e acy, lack o us , and ea o ma ke
ola ili y.
In es o beha iou is in luenced by mul iple ac o s including psychological a i udes,
income le els, age, educa ion, social in luence, and pas expe iences. Many in es o s s ill
ely on adi ional sa ing ins umen s like bank deposi s and gold a he han ma ke -based
in es men s. Unde s anding he beha iou al pa e ns o in es o s is essen ial o und
manage s, inancial ad iso s, and policymake s o design e ec i e s a egies ha enhance
pa icipa ion and p omo e a cul u e o in o med in es ing.
The e o e, his s udy aims o analyze and in e p e he beha iou o Indian in es o s
owa ds mu ual unds, o iden i y he key ac o s ha d i e o es ic hei in es men
decisions, and o sugges measu es ha can s eng hen he mu ual und indus y in India.
Re iew o li e a u e :
The beha iou o in es o s owa ds mu ual unds has been widely s udied by
esea che s ac oss di e en coun ies, as i plays a c ucial ole in shaping he inancial ma ke .
Acco ding o Gup a (2022), in es men beha iou is la gely in luenced by indi idual
pe cep ions o isk and e u n, along wi h he in es o ’s inancial li e acy le el. The s udy
emphasized ha educa ed in es o s wi h highe income a e mo e likely o di e si y hei
in es men s ac oss a ious mu ual und schemes.
Sha ma and Singh (2021) obse ed ha beha iou al biases such as o e con idence,
he d men ali y, and amilia i y bias ha e a s ong impac on in es men decisions. In es o s
o en ely on iends, ela i es, o media ecommenda ions a he han conduc ing independen
analysis. Thei s udy also highligh ed ha ma ke ing campaigns and b and epu a ion o mu ual
und companies signi ican ly in luence in es o p e e ences.
Rao (2020) examined he demog aphic aspec s o mu ual und in es o s and ound ha
age, gende , and income le els ha e a conside able e ec on he choice o schemes. Younge
in es o s end o p e e equi y-o ien ed unds wi h highe e u ns, whe eas olde in es o s
gene ally p e e deb o balanced unds o sa e y.
In ano he s udy, Kuma and Bansal (2019) poin ed ou ha awa eness and us a e key
ac o s de e mining he success o mu ual und schemes in de eloping economies like India.
Lack o knowledge abou ma ke isks and limi ed accessibili y o in es men pla o ms o en
discou age pa icipa ion among u al and middle-income g oups.
Fu he , epo s published by AMFI (2023) and SEBI (2022) e ealed ha he mu ual
und indus y in India is expanding s eadily, wi h g owing adop ion o Sys ema ic In es men
Plans (SIPs). Howe e , he o e all pene a ion a e emains low compa ed o de eloped
In e na ional Jou nal o Resea ch in Managemen ISSN 2249-5908
A ailable online on h p://www. spublica ion.com/ij m/ij m_index.h m Volume 15 No. 5, 2025
DOI: 10.5281/zenodo.17642374
O iginal A icle
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na ions. These s udies collec i ely indica e ha enhancing in es o educa ion, anspa ency,
and accessibili y a e essen ial o sus ainable g ow h o he mu ual und sec o in India.
Objec i es o he S udy :
The main objec i e o his s udy is o analyze he beha iou o in es o s owa ds mu ual
und in es men s in India and o iden i y he ac o s in luencing hei in es men decisions.
The speci ic objec i es a e as ollows:
1. To examine he le el o awa eness and pe cep ion o in es o s ega ding mu ual und
schemes in India.
2. To iden i y he demog aphic ac o s such as age, gende , educa ion, occupa ion, and
income ha in luence in es o p e e ences.
3. To s udy he beha iou al ac o s including isk appe i e, in es men objec i es, and
inancial li e acy a ec ing mu ual und in es men choices.
4. To assess he ole o inancial ad iso s, ad e isemen s, and pee in luence in shaping
in es o decisions.
5. To unde s and he majo challenges aced by in es o s while in es ing in mu ual
unds.
6. To sugges sui able measu es o enhance in es o pa icipa ion and con idence in he
Indian mu ual und indus y.
Da a analysis and discussion ( heo e ical ) :
In his s udy, he analysis is based on seconda y da a collec ed om jou nals, a icles,
and epo s published by SEBI, AMFI, and o he inancial esea ch bodies. The indings e eal
ha he mu ual und indus y in India has wi nessed ema kable g ow h o e he pas decade,
p ima ily d i en by inc easing in es o awa eness and echnological de elopmen s. The
in oduc ion o online pla o ms and mobile in es men apps has simpli ied he p ocess o
in es ing, he eby a ac ing a la ge numbe o young in es o s.
Howe e , he beha iou al analysis o in es o s indica es ha isk pe cep ion con inues o
be a key de e minan o in es men choice. Mos small in es o s p e e deb o hyb id
unds as hey a e pe cei ed o be sa e compa ed o equi y-o ien ed schemes. Income le el and
educa ion also play a signi ican ole — indi iduals wi h highe income and inancial li e acy
end o di e si y hei po olios ac oss di e en asse classes.
The discussion also e eals ha Sys ema ic In es men Plans (SIPs) ha e become a
popula mode o in es men among sala ied indi iduals because hey p omo e disciplined sa ing
habi s and educe he impac o ma ke ola ili y. Ye , u al and semi-u ban in es o s emain
unde ep esen ed in he mu ual und ma ke due o lack o accessibili y, limi ed us , and low
inancial awa eness.
Mo eo e , ma ke ing campaigns, pee in luence, and media p omo ions ha e
eme ged as majo beha iou al igge s ha shape in es o s’ decisions. Fund houses wi h s ong
b and epu a ion and anspa en pe o mance eco ds end o a ac mo e in es o s.
In summa y, he analysis sugges s ha while he mu ual und sec o in India has made
In e na ional Jou nal o Resea ch in Managemen ISSN 2249-5908
A ailable online on h p://www. spublica ion.com/ij m/ij m_index.h m Volume 15 No. 5, 2025
DOI: 10.5281/zenodo.17642374
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signi ican p og ess, u he e o s a e equi ed o enhance in es o con idence, simpli y
in es men p ocedu es, and imp o e inancial li e acy ac oss all sec ions o socie y. A s onge
egula o y amewo k and consis en in es o educa ion ini ia i es can help in sus aining he
long- e m g ow h o he indus y
Resea ch Me hodology :
The p esen s udy i led “A S udy on In es o Beha iou Towa ds Mu ual Funds in
India” is desc ip i e in na u e and is p ima ily based on seconda y da a. The pu pose o he
s udy is o unde s and he a ious ac o s in luencing in es o beha iou and o iden i y he
challenges and oppo uni ies in he Indian mu ual und indus y.
1. Na u e o he S udy
The esea ch is desc ip i e and analy ical in na u e. I aims o desc ibe in es o
a i udes, p e e ences, and beha iou al pa e ns owa ds mu ual und in es men s using
al eady published da a and heo e ical concep s.
2. Sou ces o Da a
The s udy mainly elies on seconda y da a collec ed om:
● Resea ch pape s and jou nal a icles ela ed o in es o beha iou
● Repo s published by SEBI (Secu i ies and Exchange Boa d o India) and AMFI
(Associa ion o Mu ual Funds in India)
● Books, newspape s, and online inancial po als
● Go e nmen publica ions and o icial websi es
3. Sampling Design
Since his s udy is based on seconda y da a, no p ima y sampling has been conduc ed.
Howe e , a ious published epo s and su eys by egula o y au ho i ies and esea ch
ins i u ions ha e been analyzed o ensu e accu acy and eliabili y.
4. Tools o Analysis
The collec ed da a has been analyzed h ough quali a i e in e p e a ion and logical
easoning. G aphs, pe cen ages, and compa a i e s a emen s om published sou ces ha e
been e e ed o whe e e necessa y.
5. Pe iod o he S udy
The s udy co e s da a and epo s published du ing he pe iod 2019–2024, ocusing
on ecen de elopmen s and beha iou al ends among Indian in es o s.
In e na ional Jou nal o Resea ch in Managemen ISSN 2249-5908
A ailable online on h p://www. spublica ion.com/ij m/ij m_index.h m Volume 15 No. 5, 2025
DOI: 10.5281/zenodo.17642374
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6. Limi a ions o he S udy
1. The s udy depends en i ely on seconda y da a; hence, p ima y beha iou al esponses
could no be e i ied di ec ly.
2. The indings may a y depending on egional di e ences and changing ma ke
condi ions.
3. In es o psychology is dynamic, and he e o e, conclusions may no be uni e sally
applicable ac oss all in es o ca ego ies
Findings and Sugges ions:
Findings
Based on he analysis and e iew o li e a u e, he ollowing key indings ha e been de i ed:
1. Mos Indian in es o s s ill p e e adi ional sa ing ins umen s like bank deposi s and
gold due o ea o ma ke isk and lack o awa eness abou mu ual unds.
2. The awa eness le el abou di e en ypes o mu ual und schemes is ela i ely low,
especially among u al and middle-income in es o s.
3. Risk pe cep ion and e u n expec a ion a e he majo ac o s in luencing in es o
decisions.
4. In es o s wi h highe educa ion and income end o di e si y hei po olios and
p e e equi y-o ien ed mu ual unds.
5. Sys ema ic In es men Plans (SIPs) a e becoming a popula in es men op ion among
sala ied indi iduals due o hei lexibili y and low en y cos .
6. Financial li e acy and us play a c ucial ole in mo i a ing in es o s o in es in
mu ual unds.
7. Ma ke ing e o s, media exposu e, and pee ecommenda ions signi ican ly in luence
in es o beha iou .
Sugges ions
1. Financial ins i u ions and mu ual und companies should o ganize egula awa eness
and aining p og ams o educa e po en ial in es o s abou he bene i s and isks o
mu ual und in es men s.
2. Simpli ica ion o in es men p ocedu es and use o egional languages in p omo ional
ma e ials can help each u al in es o s mo e e ec i ely.
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DOI: 10.5281/zenodo.17642374
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3. The go e nmen and SEBI should con inue o s eng hen in es o p o ec ion measu es
o enhance anspa ency and us in he sys em.
4. Financial ad iso s should ocus on p o iding pe sonalized guidance based on
in es o s’ income, isk ole ance, and long- e m goals.
5. In oducing inancial li e acy modules in educa ional ins i u ions can p omo e an
in es men -o ien ed cul u e among he you h.
6. Mu ual und companies should emphasize long- e m weal h c ea ion a he han
sho - e m e u ns in hei ma ke ing s a egies.
Conclusion
The s udy concludes ha in es o beha iou owa ds mu ual unds in India is shaped
by a combina ion o demog aphic, psychological, and economic ac o s. Al hough mu ual
unds ha e eme ged as a p e e ed in es men a enue o many, a la ge po ion o he
popula ion s ill emains hesi an due o limi ed awa eness and ea o ma ke isk. The esea ch
highligh s ha inancial li e acy, us , and anspa ency a e he key elemen s o imp o ing
pa icipa ion in he mu ual und sec o . Technological ad ancemen s and he popula i y o SIPs
ha e made in es ing easie and mo e disciplined, especially among young in es o s.
To ensu e sus ainable g ow h o he mu ual und indus y, con inuous in es o
educa ion, e ec i e egula ion, and e hical ma ke ing p ac ices a e essen ial. I hese measu es
a e e ec i ely implemen ed, mu ual unds can become a powe ul ins umen o channelizing
household sa ings in o p oduc i e in es men s, he eby con ibu ing signi ican ly o India’s
economic de elopmen .
Re e ences:
1. Gup a, R. (2022). In es o Beha iou and Mu ual Fund In es men in India.
In e na ional Jou nal o Managemen and Social Science Resea ch, 11(3), 45–52.
2. Sha ma, P., & Singh, R. (2021). A S udy on Fac o s In luencing Mu ual Fund
In es men Decisions. Jou nal o Business and Economic De elopmen , 9(2), 33–41.
3. Rao, S. (2020). Demog aphic Analysis o Mu ual Fund In es o s in India. Indian
Jou nal o Finance, 14(5), 22–28.
4. Kuma , A., & Bansal, N. (2019). In es o Awa eness and T us in Mu ual Fund
In es men s. In e na ional Jou nal o Financial Resea ch, 10(1), 78–85.
5. AMFI (Associa ion o Mu ual Funds in India). (2023). Indus y Repo 2023.
Re ie ed om h ps://www.am iindia.com
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A ailable online on h p://www. spublica ion.com/ij m/ij m_index.h m Volume 15 No. 5, 2025
DOI: 10.5281/zenodo.17642374
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6. SEBI (Secu i ies and Exchange Boa d o India). (2022). Annual Repo 2021–22.
Re ie ed om h ps://www.sebi.go .in
7. Pandey, I. M. (2020). Financial Managemen . Vikas Publishing House, New Delhi.
8. Tandel, S. (2021). Beha iou al Finance and In es men Decisions. Himalaya
Publishing House, Mumbai.
9. RBI (Rese e Bank o India). (2023). Repo on Financial S abili y in India.
Re ie ed om h ps://www. bi.o g.in
