Role of Investor’s demographic factors and personality traits on investing in Mutual fund schemes in Karnataka

“Financial Planning is the process of meeting one‘s life goals through the proper management of personal finances.” (Kapoor, 2008). Proper Personal Financial planning leads to financial satisfaction and well-being. As every person, family, or household has a unique needs and financial position, their financial planning must also be carefully planned to meet specific needs and goals. There are various investment avenues that are available in the financial market among them mutual funds are also an excellent investment avenue that offer good returns to the investors. The personality traits of investors influence the investments made by the investors in mutual fund schemes. Many personality psychologists believe that there are five basic dimensions of personality, which is referred as the “Big 5” personality traits. These five primary personality traits are extraversion, agreeableness, openness, conscientiousness and neuroticism. This study tries to tests the influence of the Big 5 personalities on investment decision of retail investors. The study is trying to know the level of influence of personality traits on investment decisions of individual investors. The study also examines the influence of demographic variables and personality traits on the investment decision making process of mutual fund investors in Karnataka.