A study on exploring investor’s opinion on mutual funds: trends and insights

Abstract

The research investigates the attitudes of Indian investors towards mutual funds, investing, and the picture created through such digital interactions as SIPs (Systematic Investment Plans) and theme-based funds, The study was performed with 26 respondents who mainly belonged to the younger and more tech-savvy groups and shared their views through a quantitative survey via Google Forms. The studies imply that the investor community shows a clear preference for equity funds and systematic investment plans (SIPs) as the main tools of long-term wealth accumulation. The users also depend on app-based services such as Groww and Zerodha Coin. Thematic funds are slowly but surely being accepted, with some being cautiously noticed, especially those that are investing in technology, healthcare, and renewable energy. Most investors, even if they have concerns regarding market ups and downs, still maintain that mutual funds are less risky and more stable than direct equities in economic downturns because of their maturity level. However, this paper's urban bias and small sample size limit the extent of its influence; still, it indeed illustrates the digitization's potent effect of opening up access and raising investor confidence. Moreover, it highlights the necessity of financial literacy and open channels that will, gradually, cause retail investors' interest in mutual funds to increase. The study associates financial literacy, digital innovation, and the development of even stronger investor habits to a higher mutual fund usage. However, for the generalization of the results beyond the research area, there are limitations related to: small sample size, urban and youth bias, reliance on self-reported data, and lack of comprehensive statistical modeling. Nevertheless, the outcomes provide significant consequences for younger target groups in terms of investment firms' product development and marketing, for the regulators in terms of encouraging transparency, for the education providers in terms of offering customized literacy programs, and for the fintech companies through trust and personal touch.