Navigating Hybrid Mutual Funds: An Analysis of Investor Preferences and Behavior in India

Abstract

 This study investigates investor behavior towards hybrid mutual funds in India, focusing on demographic influences, financial literacy, risk tolerance, and factors affecting investment decisions. Utilizing a quantitative research design, data were collected through structured surveys administered to 400 respondents. The analysis revealed significant correlations between demographic factors and investment preferences, with younger investors displaying higher risk tolerance and a greater inclination towards hybrid funds. Financial literacy was positively correlated with risk tolerance, while guidance from financial advisors notably influenced investors’ perceptions. The findings suggest that understanding these behavioral patterns is crucial for financial institutions aiming to tailor their products effectively. Ultimately, the study highlights the importance of financial education and personalized advisory services in fostering informed investment decisions. This research contributes valuable insights that can enhance the mutual fund industry’s responsiveness to evolving investor needs, ultimately supporting market growth and stability.