Investors Behaviour, Satisfaction and Advocacy in Mutual Funds. A Study with Reference to Mutual Funds Companies in Greater Chennai

Abstract or Introduction

This research aimed to provide empirical evidence on the behavior of the investor toward mutual funds. Data were collected using a questionnaire from 1500 mutual fund investors, from which 1494 questionnaires were used for the analysis. The present study further adds to the existing literature by exploring the behaviour of Indian individual investors towards the investment of their savings and their perception towards investment in mutual funds. A sample of 119 open-ended mutual fund schemes have been analysed during the period 01 January , 2016 to 31 June, 2019. The estimated and actual sample size was 1,494. Reliability was established with Cronbach values while Validity was established with Confirmatory Factor Analysis (convergent and discriminant validity).Univariate, Bivariate and Multi-variate analysis was used. Causal relationships were analysed using Structural Equation Modelling Further questionnaires have been analysed to judge the perception of investors towards various investment options and mutual funds. In this way, the present study is vast and holistic one that might be helpful for mutual fund companies, policy makers, governing bodies and investors.

The result showed that the preferences for mutual funds investors apropos investment behaviour, market trends, knowledge and returns were ascertained and analysed. Three variables that measure the investors behaviour, satisfaction and advocacy. This study forms a concrete theoretical framework for the researchers on investor’s behaviour in different mutualfunds. In this research numerous literatures prevailing worldwide has been examined using interpretative approach The perception about mutual fund investors about services, performance of schemes and management of funds were ascertained and analysed. A framework was conceptualised and the causal relations between investor behaviour, satisfaction and advocacy apropos mutual funds was assessed. The impact of demographics on research variables was also analysed. Suggestions have been given to foster better investor satisfaction and advocacy apropos mutual funds. The results provide better information and guidance to investors and policymakers on the factors that affect the behavior of mutual fund investors.