The Perception of Individual Investors towards the Performance of Mutual Funds

Abstract

The mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. This pool of money is invested in accordance with a stated objective. Mutual funds provide a mechanism to invest in the stock market without knowing the complexities of the stock market. Mutual funds provide the best option to the investors who have no knowledge of the stock market. Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The objectives of the study are to analyze the perception of individual investors towards the performance of mutual funds. The study aims at finding out the perception of the small and household investors towards investment in mutual funds in twin cities of Hyderabad and Secunderabad. The necessary data are collected by administering a structured questionnaire to 200 randomly selected investors based on simple random sampling method. Simple statistical tools like Cross Tables and Chi square test are used for analysing the data.