Analysis of Investment Pattern of Mutual Funds Investors- An Empirical Study in Orissa- Suman Chakraborty and Sabat Kumar Digal

Abstract

Mutual fund industry in India has developed rapidly and gained a lot of popularity from the past couple of decades, especially after the incorporation of Unit Trust of India in 1964. There has concomitantly evolved a rich plausible academic literature consisting of numerous topics related to mutual funds. One of the most frequently addressed topics in the current literature is Investor’s perception and preferences about various mutual funds schemes and the factors which influence different classes of investors to invest in mutual funds. With this background, a survey was conducted among 200 mutual fund investors in nine urban and semi-urban cities of Orissa (India).On the basis of literature review, nine factors are chosen and grouped into four major components by applying Principal Component Analysis. The Study reveals, that safety, past return and liquidity are the most influencing factors in inducing most of the investors to opt for the mutual fund schemes. For the purpose of the study, parametric and non-parametric statistical methods have been employed. From the research point of view, such a study will help in developing and expanding knowledge in this field of personal investment.