Factors influencing investment decision in mutual funds (With special reference to Indore city)

Now a day's financial markets are appeared as well-organized and considerable to fight against inflation, mutual funds as a part of financial markets become popularized among investors because of their suitable nature and they also facilitates easy operations with good returns. Though they are not favored by many other investors as they are more depend upon unstable stock markets and struggling hard to discriminate product range to satisfy retail investor. It is thus, timed to understand and analyze investor's awareness and expectations, and depict some excessively valuable information to defend financial decision making of mutual fund investor and asset management companies. Financial markets are becoming more widespread with inclusive financial products trying innovations in designing mutual funds portfolio but these changes need fusion in association with investor's expectations. Thus, it has become crucial to study mutual funds from a different angle, which is to focus on investor's perception and expectations and disclose the incognito parameters that are attributed for their disapproval. This research paper focused attention on number of factors that highlights factors that are accountable to encourage an investor to invest in or pull out from mutual funds. The findings of the study may be proved to be great use to government and regulatory authorities for streamlining the working of asset management companies so as to put a check the exploitation of small investor who are the most needed reservoir of capital to flourish this mode of investing. Mutual fund companies should come forward with full support for the investors in terms of advisory services, participation of investor in portfolio design, ensure full disclosure of related information to investor, proper consultancy should be given by mutual fund companies to the investors in understanding terms and conditions of different mutual fund schemes, such type of fund designing should be promoted that will ensure to satisfy needs of investors, mutual fund information should be published in investor friendly language and style, proper system to educate investors should be developed by mutual fund companies to analyse risk in investments made by them, etc.