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Understanding the Indian Retail Investor: A Study on Mutual Funds and Investment Behaviour
Subject area: Management and Commerce · Area of research: Finance
DOI: https://doi.org/10.64388/IREV10I1-1720205
Abstract
Mutual funds have become one of the most accessible gateways for ordinary people to participate in financial markets, offering professional management and instant diversification without the burden of tracking individual stocks. This article examines how everyday investors think about, choose, and engage with mutual funds, drawing on a primary survey of 100 respondents alongside a review of academic literature on investor psychology and fund performance. The study finds that while awareness of mutual funds is now widespread, genuine financial sophistication still lags behind, and that returns, more than any other single factor, drive investment choices. The findings point to clear opportunities for asset managers and policymakers to deepen financial literacy, widen participation among under-represented groups, and make small, consistent investing the default habit for a new generation of investors.
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How to cite this paper
@article{1720205,
author = {Sahana B L, Vanisha D Patel, Reetika Gandigawad},
title = {Understanding the Indian Retail Investor: A Study on Mutual Funds and Investment Behaviour},
journal = {Iconic Research And Engineering Journals},
year = {2026},
volume = {10},
number = {1},
pages = {3527-3533},
issn = {2456-8880},
url = {https://www.irejournals.com/formatedpaper/1720205.pdf},
abstract = {Mutual funds have become one of the most accessible gateways for ordinary people to participate in financial markets, offering professional management and instant diversification without the burden of tracking individual stocks. This article examines how everyday investors think about, choose, and engage with mutual funds, drawing on a primary survey of 100 respondents alongside a review of academic literature on investor psychology and fund performance. The study finds that while awareness of mutual funds is now widespread, genuine financial sophistication still lags behind, and that returns, more than any other single factor, drive investment choices. The findings point to clear opportunities for asset managers and policymakers to deepen financial literacy, widen participation among under-represented groups, and make small, consistent investing the default habit for a new generation of investors.},
month = {July},
doi = {https://doi.org/10.64388/IREV10I1-1720205}
}