STUDY ON INVESTOR'S PERCEPTION TOWARDS MUTUAL FUND INVESTMENTS IN GUJARAT

Abstract

The Indian economy is growing with economic reforms in the field of trade, commerce and industry which eventually increases the investment size in the capital market. The need and scope for mutual fund operations has increased tremendously as it is meant for converting savings of small investors into investment. The major reason behind the growth of the Mutual Fund industry is the reduction in the interest rates by the government on different financial instruments meant for small investors. This study mainly focuses on understanding the perception of investors of Gujarat towards Mutual Fund Investments. In this study, focus is given on analysing the preferred asset class and perception of investors falling under different income classes. Moreover, the study is concerned with the objectives of investors and type of mutual fund investment they prefer to meet their objectives in future. It was found that majority of the investors consider Mutual Fund as a systematic option for making investments in Stock market. They consider Mutual funds as an option for long term investment where the majority invest via SIP/STP mode. Hence, the findings from this research are that most of the investors consider mutual funds as a new age investment option and hence, the industry will grow at a rapid pace in the near future.