Factors Driving Selection of MF in India Pre Pandemic and Post Pandemic

Abstract

Mutual funds are considered one of the best options for investment during uncertain times. They offer diversified holdings instantly and are less risky than directly investing in stocks. Investors choose mutual funds as their investment by considering some important factors. This study aims to investigate various factors that influence selection of a mutual fund before the pandemic and during the pandemic with an objective to understand how factors change with an advent of a black swan event. The study has been conducted among 70 investors residing in Surat, Gujarat. These investors have been randomly selected to collect primary source of data. The study consists of both primary and secondary source of data in order to reach to the conclusions of the study. Investors consider various factors while deciding the investment options but this study is limited to 5 major factors that observed the change before and during the pandemic. The 5 major factors taken into consideration are investment objective, risk tolerance, time horizon, asset allocation and market conditions. The study concludes that there are significant changes in each factor. Investors have started investing in low risk investments for shorter duration with safety and income as their income objective. Investors now consider prevailing market conditions before making investments. The findings of this study will help mutual fund companies to identify areas for improvement and create new and innovative product by considering the most influencing factors of the investors during this uncertain market.