FACTORS AFFECTING INVESTOR BEHAVIOUR - A STUDY OF MUTUAL FUNDS

1. INTRODUCTION
The introduction of a mutual fund in India took place in 1963, when the Government of India
launched Unit Trust of India. UTI enjoyed a monopoly in the Indian mutual fund market until 1987,
when a host of other government-controlled Indian financial companies established their own
funds.. This market was made open to private players in 1993.
2. MARKET SIZE
The size of mutual fund industry is growind day by day.The total Asset Under Management
popularly known as AUM has increased from 1lakh crores in January 2000 to 12 lakh crores in
the year 2015. As per the Association Of Mutual Funds in India the size and growth of mutual
fund industry is outstanding .
3. GROWTH RATE

Mutual funds would be one of the major instruments of wealth creation and wealth saving in
the years yet to come. The AUM has shown a tremendous growth from Rs.25 crore in 1965
to Rs.701443 crore in March 2013.
4. POTENTIAL SIZE DOWN THE LINE

Indian mutual funds market is expected to grow at a CAGR of 14.97% by 2020.This is

due to Indias rapidly increase in per capita income of urban India with considerable
amount of disposable income and increasing participation of women.
5. RECENT TRENDS

Due to the high percentage of millennials in the trends shows that the investment in high
risk category mutual funds has increased at a high pace . The new schemes with high
risk and comparatively high return are being introduced in order to meet the expectation
of new generation.

6. MAJOR PLAYERS

ABN-AMRO
BIRLA SUNLIFE
DEUTSCHE
ESCORTS
FRANKLIN TEMPLETON
STANDARD CHARTERED

SBI
RELIANCE
HDFC
ICICI
TATA
LIC

7. MAJOR GOVERNMENT POLICY

Investor interests were safeguarded by SEBI and the Government offered tax benefit to
investor in order to encourage them. SEBI (mutual fund) regulation 1996 was introduced
by SEBI that set standards for all mutual funds in India. Various investor awareness
programmed were launched both by SEBI and AMFI with an objective to educate
investors.
8. MAJOR CHALLENGES

The challenges faced are low customer awareness and financial literary pose which act as
the biggest challenge to channelize the household savings into mutual funds. Factors that
are crucial to the mutual fund investing are the availability of the large number of mutual fund
schemes that makes investment decision complex and difficult.
9. OTHER RELEVENT DATA

Within the 60 districts, a lions share of the mutual fund presence originates from Mumbai. It
is primarily due to the fact that Mumbai houses the headquarters (or the financial
headquarters) of most of the large companies, leading to getting a bulk of investments
through the non-retail or institutional avenue. Furthermore , there remains a large untapped
market waiting to be explored and serviced.