A STUDY ON AWARENESS ABOUT ANALYTICAL TOOLS AND ITS USE BY RETAIL INVESTOR IN MUTUAL FUNDS INVESTMENT

ABSTRACT In recent years, the Indian economy has witnessed significant growth in the mutual funds industry, particularly marked by the substantial increase in retail investors through the expansion of SIP (Systematic Investment Plan) contributions. Attracted by the attractive returns generated by mutual funds, Indian investors have flocked to this investment avenue. However, it is crucial for investors to understand the associated risks and the tools available to mitigate them. Numerous tools such as CAGR, IRR, Sharpe Ratio, Treynor’s Ratio, Standard Deviation etc. exist for analyzing scheme performance, assessing risks, and conducting comparative analyses. This paper examines the actual usage of these tools by individual retail investors. While the use of these tools is on the rise, there remains a need to educate investors properly with appropriate guidelines. Simply using complex financial terminology is insufficient; understanding, practicing, and correctly applying these concepts can transform fund selection dynamics and significantly enhance the investor experience in mutual fund investments. Keywords – Mutual Funds, Investments, Returns, Risks, CAGR, IRR