A Study on Investor’s Attitude and Preference towards Mutual Fund Investments with Reference to Tuticorin City

Abstract

Purpose: This study examines the growth, investment patterns, and challenges faced by mutual fund investors in Tuticorin, India. The primary objective is to analyze the reasons driving mutual fund investments and identify the key problems investors encounter.

Design/Methodology/Approach: The research employs a survey methodology, using a sample of 340 investors selected through systematic random sampling. Data were collected using a well-structured questionnaire and analyzed using statistical tools such as percentage analysis, and correlation analysis

Findings: Study found middle-income individuals are increasingly drawn to mutual funds due to their perceived advantages of steady returns, lower risk, and flexibility. Gender and education significantly influence investment choices, with educated individuals showing a preference for mutual funds. The study also reveals that government employees and private sector workers dominate mutual fund investments, with most investors earning over INR 40,000 per month. While mutual funds offer attractive opportunities, investors face challenges such as high fees, market volatility, and lack of diversification.

Originality: The originality of this research lies in its focus on the Tuticorin region, providing insights into the unique factors driving mutual fund investments in a port city with a diverse economic landscape. The findings highlight the importance of investor education and enhanced regulatory measures to address market risks and malpractices, ensuring better outcomes for investors.

Paper Type: Empirical Research Paper