Factors affecting inclination of Investors towards Mutual Funds -Systematic Investment Plans (SIP): An Empirical Study of Retail Investors

Abstract

Investment plays a vital role in the economy and is considered a crucial tool for bolstering a nation's GDP. The concept of investment varies from person to person, depending on their individual needs and their understanding of market conditions. Effective investment management is essential for investors to navigate the market successfully and achieve desirable returns. Mutual funds are a retail financial product tailored to attract small investors, such as salaried individuals, who may find the stock market daunting but still want to benefit from stock market investments. Professionally managed mutual funds have gained significant popularity among Indian investors over the past few years. The increased financial awareness among the public has driven growth in the number of investments made in these fund houses. A sample of 291 respondents was collected from retail investors. The factors affect the inclination of investors towards Mutual funds are Professional Management, Diversification, Ease of Investment, and Liquidity.