A Study on Investors Perception towards Mutual Funds in the State of Odisha

The development of financial market has led to birth of various instruments of investment. These instruments have led to the creation of numerous opportunities for investors to invest in a variety of fields and to earn profitable returns with minimum risk. Mutual funds are investment vehicle that gathers and collect funds from investors, who share a common goal and then invests their savings in a wide variety of securities in such a way that the investors get a return and capital appreciation in low risk under the guidance of a team of experts. The main purpose of investment in mutual fund is receiving a return which would be at least close to the benchmark of mutual fund. Consequently, the investors will always want to invest in those mutual fund schemes. The aim of the study is to examine the perception of people regarding mutual funds. The primary data was collected through interviews, personal visits, formal and informal talks and questionnaires. Questionnaires were collected using mail and by hand. For the primary survey a sample of 200 respondents were taken into consideration and the analysis was carried out using SPSS statistical package. Structured Questionnaire was used in empirical analysis and discussion. During the period of study 350 questionnaires were distributed and 235 responses were obtained. Out of 235 responses some were rejected as they were partially filled. The respondents were selected by using convenience sampling which included both investors and non-investors. The findings suggest that more than half of the respondents have an incorrect notion about it. They feel mutual funds are very risky investment.