ANALYZING MUTUAL FUND PERFORMANCE AND ITS INFLUENCE ON RETAIL INVESTOR BEHAVIOR

Abstract

Mutual funds have emerged as one of the most popular investment avenues for retail investors due to their ability to provide diversification, professional management, and relatively lower risk compared to direct stock market investments. This study focuses on analyzing the performance of mutual funds and examining their impact on the investment decisions of retail investors. The research evaluates various performance indicators such as returns, risk levels, portfolio diversification, and fund management efficiency to understand how mutual funds perform in the dynamic financial market. The study also investigates the factors influencing retail investors when selecting mutual fund schemes, including past performance, risk perception, fund manager reputation, expense ratios, and market conditions. Data collected through surveys and secondary financial reports are analyzed to understand investor behavior, preferences, and awareness regarding mutual fund investments. The findings highlight that mutual fund performance plays a significant role in shaping investor confidence and investment choices. Furthermore, the study reveals that informed retail investors tend to rely on performance metrics and professional fund management while making investment decisions. The research emphasizes the importance of financial literacy and transparent information in helping investors choose suitable mutual fund schemes. Overall, the study provides insights into the relationship between mutual fund performance and retail investor behavior, offering useful implications for investors, fund managers, and financial institutions