A Study on Investors’ Perception Towards Equity Fund in Thiruvananthapuram District

The mutual fund industry in India has experienced significant growth since the liberalization of the Indian economy in 1991, emerging as an important financial intermediary. This study focuses on investors’ perception towards equity funds in Thiruvananthapuram district. The findings reveal a significant association between investors’ educational qualifications and their risk tolerance levels, as well as between occupation and risk tolerance levels. However, no significant link was found between occupation and the level of mutual fund knowledge, or between monthly savings and the level of mutual fund knowledge. The analysis further shows a strong positive correlation between expected returns and derived returns, and between risk and return of equity funds. Despite the potential benefits, certain equity schemes have underperformed due to weak risk-bearing capacity, poor timing, inadequate stock selection, and imperfect diversification by fund managers. The study suggests that fund managers must enhance their skills in these areas to improve returns. Overall, the research highlights the need for greater awareness, better financial advisory services, and investor education to strengthen confidence and participation in equity funds.