Decoding Investor Behaviour: A Study On Investment Strategies, Risk Perception, And Satisfaction Levels Among Mutual Fund Investors

Abstract

This study examines the demographic, strategic, and behavioural determinants of investor satisfaction among mutual fund investors, addressing the gap in existing literature that typically studies these factors in isolation. Using primary data collected from 500 mutual fund investors through a structured questionnaire, the study analyses demographic profile, investment strategies, risk management practices, and reactions to market movements through percentage analysis, cross-tabulation, one-way ANOVA, and multiple regression analysis. The findings reveal that the typical investor is a middle-aged, educated, salaried individual with moderate income, investing primarily for retirement and children's education, and relying heavily on mutual fund distributor recommendations as both a strategy and a decision criterion. ANOVA results confirm that income, age, and occupation each significantly influence overall satisfaction, perceived strategy effectiveness, annual returns, and strategy performance ratings. The regression model explains 46.7% of the variance in overall satisfaction, with following market trends (β = 0.491), strategy used (β = 0.338), and income (β = 0.204) emerging as the strongest predictors, while confidence level and age show no significant independent effect. The study concludes that investor satisfaction is driven more by behavioural engagement and financial capacity than by psychological disposition alone, and offers practical suggestions for investors, distributors, fund houses, and policymakers to strengthen investor education and distributor accountability.