Perception Towards Investing in Mutual Funds in India-An Empirical Analysis of Investors in Nagpur City

The mutual fund industry in India has made available a reasonable option for a small investor to invest in the capital market. The Indian Mutual Fund industry experienced appreciable growth in past few years with the presence of many private players having global expertise. When it comes to small investors, the perception of the investor plays significant role for investment in mutual funds. Hence the present study tries to understand the perception of the investors investing in equity and equity linked saving schemes of mutual fund in Nagpur City in India in terms of factors which discriminates between such investors and non-investors using Logistic Regression Model. The major findings of the research are; amongst the various factors motivating investors to invest in mutual funds, the returns on investment and lock in period are the two important and significant factors, amongst the various sources of information for the respondents, the internet and friends & relatives are the two significant factors and amongst the major factors hindering investment in mutual funds, high risk and inefficient investment advisors are the significant factors influencing the decision making of the investors in MF which discriminates between investors and non-investors in mutual fund.