IUP Publications Online
Home About IUP Magazines Journals Books Archives
     
Recommend    |    Subscriber Services    |    Feedback    |     Subscribe Online
 
The IUP Journal of Bank Management
Investment Behavior Towards Mutual Fund: Are Demographic Variables Really Significant? A Study on Bank Employees of Tripura
:
:
:
:
:
:
:
:
:
 
 
 
 
 
 
 

Investor behavior towards mutual fund is an emerging area of behavioral science. There exist behavioral biases in the event of taking investment decision. The investment behavior is influenced by different factors. Hence, in the present study, based on a review of literature, factors influencing the investment behavior were identified. These factors include demographic and socioeconomic variables of the investors. In the present paper, the impact of demographic and socioeconomic variables on the investment behavior of the bank employees in Tripura towards mutual funds is analyzed. Gender, family income and experience have significant impact on risk perception.

 
 
 

Mutual fund is a trust that pools the savings of a number of investors. The money collected is then invested in different types of securities under the supervision of expert fund manager. The incomes generated through this investment are shared by unit holders in proportion to the number of units owned by them.

In order to obtain the best return out of an investment, a comprehensive understanding of human nature from a financial perspective is of paramount importance. Moreover, investors are also required to develop a positive vision, prudence, patience and desire (Ansari and Moid, 2013). Investors do not behave wisely in taking decisions relating to investment. They have certain drawbacks like cognitive and emotional behavior which play a vital role in the investment decision of individuals. They have behavioral biases in the event of taking investment decision. The most crucial challenge in this regard is faced by the investors while making investment decisions. Benartzi and Thaler (1999) determined the influence of time horizon on investment behavior. Psychological biases and social norms may influence such investment behavior (Kahneman and Tversky, 1979). Every investor differs from the others in all aspects due to various factors like demographic and socioeconomic factors.

 
 
 
Bank Management Journal, Investment Behavior Towards Mutual Fund, Demographic Variables Really Significant, A Study on Bank Employees of Tripura