A study on investment pattern of mutual funds with reference to select districts of Tamilnadu State

Investment is a commitment of funds for future periods against a return which is adequate to induce to part with money. It is in a wide form of contexts such as investment in ‘house’ or investment in mutual funds or investments in securities. This individually visualise a pay-off by putting their money in productive avenues. It forms a postponed consumption. For example, an employee who contributes a part of his salary to buy shares, his current consumption is curtailed and the return on shares/securities realised in future time periods would be available for future consumption. The present paper finds out the investment pattern of mutual funds with reference to Tamil Nadu State of selected districts. A sample of 278 respondents in Tamil Nadu State selected district namely, Cuddalore, Trichy, Coimbatore, Chennai, Tirunelveli on the basis of convenient sampling technique. Investor behaviour and mode of investment issues are taken as prime as it also decides the position of savings and consumption. The behaviour issues in relation to age, education and occupation emphasis more on active role in investment in securities particularly in mutual funds which yield more gains for the investor in comparison of others. Hence necessary data collected by direct structured interview using questionnaire. Then correlation, regression and factor analysis were applied. The results show that there is a positive and significant correlation between investor behaviour of mutual funds and demographic variables.