Investment Criteria in Mutual Funds: An Empirical Study from Retail Investors' Perspective

Abstract

In India, during the past few decades, mutual funds have become one of the most widely used investment solutions for regular investors. Mutual funds have emerged as a popular option for investors looking to diversify their investment portfolio due to their large range of investment opportunities, simplicity of use, and expert administration. Before purchasing mutual funds, Indian small- and medium-sized investors take into account a number of investment factors. The fund's historical performance as well as your level of risk tolerance and time horizon for investments are some of the important considerations. Other crucial factors include the type of fund, the track record and qualifications of the fund management, and the costs of the investment. Retail investors are also getting more knowledgeable and educated about mutual fund investments as a result of the development of technology and digital platforms. They can now easily invest through internet platforms, evaluate various funds, and assess their prior success. Retail investors now have a wider range of options and find it simpler to invest in mutual funds that match their investment requirements and financial objectives thanks to this improved accessibility.