A STUDY ON INVESTORS' BEHAVIOUR TOWARDS MUTUAL FUNDS WITH REFERENCE TO WEST BENGAL

The mutual fund industry in India has witnessed exponential growth over the past two decades, driven by increasing financial literacy, regulatory improvements, and the expansion of digital investment platforms. As an essential component of the capital market, mutual funds facilitate efficient resource allocation, mobilizing savings into productive investment channels. The industry's role in promoting financial inclusion is particularly noteworthy, as it enables retail investors to participate in wealth creation with relatively lower risks compared to direct equity investments. This study examines the behaviour of investors towards mutual funds in West Bengal, with a focus on their decision-making patterns and the influence of demographic factors on investment behaviour. The study employs a structured survey to analyse the preferences, awareness levels, risk tolerance, and key factors influencing investment decisions among mutual fund investors. A sample of 212 investors from West Bengal was selected to assess their investment behaviour and identify correlations between demographic variables and investment preferences. The findings reveal that factors such as age, income, and education significantly impact investment choices, with younger investors displaying a higher inclination towards mutual funds compared to older age groups. Additionally, financial literacy and past investment experiences play a crucial role in shaping investment decisions. The study emphasizes the need for enhanced investor education and transparent financial advisory services to promote mutual fund participation. The research provides insights for fund managers and policymakers to develop strategies that align with investor expectations, ensuring greater financial inclusion and market participation in the mutual fund industry.