Investigating the Determinants of Mutual Funds Investment Decision: Evidence from Earning Professionals of Bangladesh

Surveying 105 respondents with at least bachelor's degrees and earnings, this study aims to identify the determinants influencing investors to invest in mutual funds. Compared to other South Asian countries like India and Pakistan, the development of mutual funds in Bangladesh is not in a significant stage. Based on Structural Equation Modeling (SEM), this study has done the socio-demographic analysis, sampling adequacy test through KMO and Bartlett's Test, validity and reliability test through Cronbach's Alpha, Exploratory Factor Analysis (Extracting factors through Eigenvalues, scree plot, rotated factor matrix). The findings of the SEM model show that investors emphasize risk and return factors, and they are risk-averse investors. Reduced risk, better return, regular income, capital appreciation, liquidity, diversification of investment and long-term income features appeal to investors to invest in mutual funds.