Literature review on investors’ preference towards mutual funds

Most of the individual investors are finding it difficult to identify and diversify their investment across different portfolios. This is due to lack of complete knowledge about investment principles or due to lack of skills needed to play actively with the complex system of taking quick decision for proper handling of portfolios. To cope up with these difficulties, the investors are turning to specialized institutions like Mutual Funds. Mutual funds are financial intermediaries, which collect the savings of investors and invest them in a large and well-diversified portfolio of securities such as money market instruments, corporate and Government bonds and equity shares of joint stock companies. This facilitates to take the full benefits of diversification. Further, varieties of schemes of mutual funds throw opportunities to suit to the varied requirements of different investors. The present study focus on the past studies conducted by various academicians, researchers to know the investor's preference towards mutual funds.