| Pub. Date | : October, 2023 |
|---|---|
| Product Name | : The IUP Journal of Accounting Research and Audit Practices |
| Product Type | : Article |
| Product Code | : IJARAP071023 |
| Author Name | : Ahana Joy and Jasmine V M |
| Availability | : YES |
| Subject/Domain | : Finance |
| Download Format | : PDF Format |
| No. of Pages | : 17 |
Besides large institutional investors, small and medium investors also play an active role in the investment market, and it is noticed that mutual funds are a major attraction for retail investors. Mutual funds allow investors to pool their savings in complicated securities, stocks and/or bonds and enjoy the benefits of diversification. At the same time, the decision to invest in and exploit the benefits of a mutual fund largely depends on how knowledgeable and competent the investors are. In this backdrop, the study seeks to determine the level of investor awareness regarding mutual fund investments. The sample for the study comprised 50 respondents from the northern region of Kerala, India who had invested in mutual funds. It is found that investors have an average level of mutual fund knowledge, and there are no disparities in their knowledge levels based on gender, educational background and age group. The findings underline the need for developing awareness among potential investors with regard to mutual fund investments.
Investment means acquiring or investing in an asset or a property to save money and create wealth. It requires huge dedication and sacrifice of time, money and effort. The main purpose of investment is to earn returns from the asset invested (Dash, 2010). Today, many individuals follow the practice of investment to build an income. Investors are classified into large and small investors based on the size of their investment. Large investors like institutional investors are the major players in the market as they have big money, while small investors invest in smaller quantities (Asthana et al., 2004). Liberalization and globalization have created a conducive atmosphere for small and medium investors. Even though many small investors make a profit out of their investment, a majority end up with losses due to lack of professional knowledge or guidance (Nofsinger, 2001). Mutual funds have emerged as a popular channel for retail investors since it diversifies the unsystematic risk in the portfolio, reducing investment risk.