Analysing Investor Perceptions and Preferences in Mutual Funds: A Case Study of Belagavi City, India

Abstract

A significant part of creating wealth is investing, and decisions are heavily influenced by the   opinions and tastes of investors. This study investigates the reasons behind investors' preference for mutual funds, highlighting elements including prospective returns, convenience, transparency, management, and diversification. Analysing investor preferences and perceptions, determining important influencing factors, and evaluating the relationship between risk tolerance and investor awareness of different mutual fund schemes are the main goals. Convenience sampling was used to gather 100 samples using a descriptive methodology, and the chi-square test was used to analyse the results. The results show that even while mutual funds have grown, investor involvement is still uneven because of issues with experience, market awareness, and financial literacy. To close the knowledge gap and promote mutual fund investing, financial institutions are advised to implement financial literacy initiatives and awareness campaigns.