Changing Behaviour of Retail Mutual Fund Investors: A Comprehensive Review with Special Reference to the Patna Region
DOI:
https://doi.org/10.66635/7gv29w38Keywords:
Mutual funds, Retail investors, Investor behaviour, Financial literacy, Patna regionAbstract
This review paper deals with the changing behavior of the investors in retail mutual fund with special reference to the Patna region. Individual investors have found mutual funds to be an attractive investment opportunity, with the benefits of professional fund management, diversification, liquidity, and the rise of Systematic Investment Plans (SIPs). The paper highlights the literature review of literature on investor awareness, financial literacy, risk perception, behavioural biases, digital investment platforms, and regional investment preferences. It is emphasising the trend among retail investors to move away from traditional savings vehicles like gold, insurance, real estate and fixed deposits into market-linked vehicles, which has been a gradual process. The Patna region saw this behavioural change being affected by the rise in financial literacy, ease of access to digital mediums, involvement of the middle class, guidance and financial counselling, and increased interest in SIP investment. But factors like lack of financial knowledge, market risk, reliance on advisors and the desire for fixed income persist in influencing investors' choices. The review highlights the need of conducting more studies on the retail mutual funds investors of Patna region. The paper suggests that investor education, digital education, transparency in advisory services and awareness programmes can help boost the participation of retail investors in mutual funds.
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