Mutual funds are financial intermediaries concerned with mobilizing savings of those who have surplus and the canalization of these savings in those avenues where there is a demand for funds. These intermediaries employ their resources in such a manner as to provide combined benefits of low risk, steady return, high liquidity and capital appreciation through diversification and expert management. In recent times, the mutual fund industry has emerged as the most dynamic segment in the Indian financial system. Reforms in the Indian economic system and the opening up of the economy have been the reasons for the tremendous growth in the Indian capital market. This study analyzes the impact of different demographic variables on the attitude of investors towards mutual funds. Apart from this, it also focuses on the benefits delivered by mutual funds to investors. To this end, 200 respondents of Agra region, having different demographic profiles were surveyed. The study reveals that the majority of investors have still not formed any attitude towards mutual fund investments. The main reason behind this has been observed to be the lack of awareness of investors about the concept and working of the mutual funds. Moreover, in India, mutual funds are back in fashion. By the end of August 2006, the assets under management of mutual funds surpassed the figure of Rs. 300,000 cr. It indicates that there is a lot of scope for the growth of mutual fund companies in India, provided there are funds to satisfy everybody's needs and sharp improvements in service standards and disclosure.

It is said that `necessity is the mother of invention'. Innovation has always been the spirit of human nature. In the financial sector also, several new instruments have been innovated in tune with market needs. The constraints of banks to provide growth with market yields for the investors' section of society has given birth to one more new instrument, the mutual fund.

Mutual fund is a trust that pools the savings of a number of investors who share a common financial goal. The money collected is then invested in the capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unitholders in proportion to the number of units owned by them. The parties involved in mutual funds are unitholders, sponsors, trustees, asset management company, custodian, etc., and this is regulated by the Securities Exchange Board of India (SEBI).

During the last few years, the mutual fund industry has emerged as the most dynamic segment in the Indian financial system. The reforms of economy, industrial policy, public sector and financial sector; and the opening of the economy have been the main reasons for the tremendous growth of the Indian capital market. The Indian mutual fund industry came into existence in 1963 as a part of development in the capital market and to help small investors. In the last few years, the mutual fund industry has gained momentum and has become an important and dynamic sector of the capital market.

Management Research Journal, Securities Exchange Board of India, SEBI, Mutual Fund Industry, Indian Financial System, Indian Capital Market, Indian Economic System, Net Asset Value, NAV, Professional Management, Marketing Strategies, Data Collection Method, Mutual Fund Investments.