To Study on Why People Avoid Investing in Mutual Funds in Ahmedabad City
DOI:
https://doi.org/10.59890/cdg5yx30Keywords:
Mutual Funds, Investment Behavior, Financial Literacy, Investor Perception, Ahmedabad, Behavioral Finance, Risk AversionAbstract
Although an increasing number of people in India are becoming aware about mutual fund investments, the potential for mutual fund investment in urban cities such as Ahmedabad is still largely untapped. The objective of this primary research is to understand and examine the major psychological, behavioral, socio-economic and informational determinants for not investing in mutual funds by residents of Ahmedabad City. The research employs a quantitative research technique with the aid of a structured questionnaire that was administered to 301 respondents with assorted demographic characteristics. The results indicate that financial illiteracy, fear of risk in the market, mistrust in intermediaries, and the preference for traditional saving instruments are some of the major drivers. Furthermore, social influence, misperception on mutual fund performance and less support from the advisor also intensify the unwillingness. The results provide practical implications for financial institutions, advisors, and policymakers to improve investor knowledge and confidence. It also implies the importance of targeted investor education and the simplification of mutual funds
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