TO ANALYZE THE INVESTMENT PREFERENCES OF SALARIED INDIVIDUALS IN MUTUAL FUND

Abstract

The aim of the present study is to find out the investment preferences of the salaried class, with particular reference to mutual funds, as an innovative and convenient investment avenue. The Indian mutual fund industry has witnessed remarkable expansion. It has evolved into a vibrant and diverse industry from the erstwhile government-run schemes. Mutual funds today provide various types of schemes such as equity-oriented, debt schemes, and hybrid schemes. The advantage is that they are suitable for different classes of investors with varied risk profiles. This kind of investment involves professional fund management, diversification of risks, and liquidity. According to most salaried and survey-based primary research, a majority of the salaried and The study reveals that the major mutual fund investors are in the age group of 31-40 years. The preference for balanced and open-ended schemes has been observed due to their flexibility and Moderately balanced risk and return profile. Most individuals have a preference for security, diversification, and short-term investment horizon, indicating that they are financially literate yet prudently inclined. Moreover, Individuals tend to take individual responsibility for investments. The level of income is also an important factor with many investors belonging to the ₹2-4 lakhs bracket and investing small amounts below Rs. 50,000. Most respondents exhibit moderate levels of risk but have a good understanding of fund manager's performance and the need for transparency in mutual fund structure. As per the research findings, mutual funds have become popular among the working class owing to their accessibility and the fact that they offer higher returns as compared to traditional investments such as FDs, gold, and real estate. However, there is considerable scope for growth in the Indian mutual fund industry considering the low levels of awareness and financial penetration. In summary, mutual funds are a good investment choice for salaried people, particularly as they are increasingly financially literate and goal-oriented. Asset management companies should also focus on investor education and come up with user friendly investment platforms and innovative schemes to suit the risk profiles and financial objectives of investors to further boost their participation. To convert hesitant savers into active mutual fund investors, it will be critical to encourage SIPs, enhance digital outreach and provide personalized advisory services.