Investor Behaviour in Mutual Funds

Executive Summary

A mutual fund is a form of collective investment that pools money from investors and invests the money in stocks, bonds, short-term money market instrument, and/or other securities. It plays a significant role in the development of the financial market and this has been proved in the developed countries like United States, United Kingdom and Japan. The mutual funds in India have emerged as strong financial intermediaries and are playing a very important role in bringing stability in financial system and efficiency to resource allocation. Mutual fund help corporate in raising funds for their financial needs and provides an avenue of investment to investor by parking their savings. This leads to an overall growth of the Economy.

I have chosen HDFC Mutual Fund since it is one of the second largest mutual funds and well-established fund house in the country with consistent and above average fund performance across categories since its incorporation But blindly investing in any one type of security which gives a higher rate of return is very risky and the investors have to do a lot of study or analysis on various aspect of it before investing.

Therefore there is confusion prevailing between investors and corporate for the right choice of investment. There is a big gap between expectation and achieved level of satisfaction among the investors. Therefore to know the right choice of Investment Avenue, for faster growth of investor’s wealth, a study is conducted on “INVESTOR BEHAVIOUR IN MUTUAL FUNDS AND PERFORMANCE EVALUATION OF HDFC MUTUAL FUNDS”.

CHAPTER – 1

INDUSTRY PROFILE

1.1. Global Scenario

In the global context Mutual Funds have long been a popular investment avenue with Assets under Management (AUM) exceeding 60 percent of the Gross Domestic Product (GDP) in developed markets like the U.S. Historically, U.S. investors have been net buyers of equity mutual funds in the flat markets. The major...