Investment in Mutual Funds: Risk or Return? A review based study

Abstract

The objective of this paper is to identify the factors affecting investment decision of investors with specific consideration on Mutual funds. The study will try to unravel the different factors of both rural and urban investors which affect their investment decisions with regards to mutual funds. The study is based upon the review of literature and will develop a conceptual model for the expansion of the research work. An in-depth review of literature is done by unravelling the scopus database using keywords and more than 100 of papers were studied for this research work. Different filters were used as inclusion and exclusion criteria for selecting specific papers which are directly or indirectly linked from the topic and give some insights to develop the research study. The study reveals that the investor’s perception is dependent on economic, social, geographic and demographic factors such as investors’ age, gender, marital status, occupation, financial education or awareness, access to banking and financial services, peer influence, and geographic location. These factors have their individual impact upon the investors’ choice of investment. The study is original in its own sense and tries to contribute to the literature by developing a conceptual framework.