ANALYZING THE EFFECT OF PAST PERFORMANCE ON CURRENT INVESTOR PREFERENCES IN MUTUAL FUND INVESTMENTS AT IIFL

Abstract

Mutual funds have emerged as one of the most popular investment avenues among individual investors due to their ability to provide diversification, professional fund management, liquidity, and affordability. The growing awareness of financial planning and wealth creation has significantly increased investor participation in mutual fund schemes. However, investor preferences toward mutual funds vary depending on factors such as risk tolerance, return expectations, investment objectives, income levels, age, educational background, and market awareness. This study examines the preferences of investors in selecting mutual fund schemes and identifies the key factors influencing their investment decisions. The research focuses on understanding investor attitudes toward different categories of mutual funds, including equity funds, debt funds, hybrid funds, and sectorspecific funds. It also analyzes the importance of factors such as safety, returns, liquidity, tax benefits, fund performance, and fund manager reputation in shaping investor choices. The study is based on primary and secondary data collected from investors and relevant financial sources. Statistical tools and analytical techniques are used to evaluate investor behavior and investment patterns. The findings reveal that most investors prefer mutual funds as a long-term investment option due to their potential for higher returns and professional management. Risk and return considerations are found to be the most significant determinants of investment preference.