Authors: Nitish kumar, Dr Sajad Ahmad Mir
Abstract: Mutual funds have emerged as one of the most relevant investment avenues for Indian retail investors because they provide diversification, professional management, flexibility, and accessibility through Systematic Investment Plans (SIPs). This study examines investor awareness and preference toward mutual funds in India, with special reference to retail investors. It focuses on the level of awareness, preferred investment avenues, mutual fund category preference, SIP adoption, and the key barriers that prevent wider participation. The study is based on a descriptive and analytical survey design using primary data collected from 100 respondents through a structured questionnaire. Secondary sources from regulatory bodies, industry reports, and academic literature were also used to strengthen the discussion. The findings show that awareness of mutual funds is moderate to high among the respondents, SIPs are the dominant investment mode, and equity mutual funds are the most preferred category. Mutual funds were also identified as the most preferred investment avenue in the sample, ahead of fixed deposits and gold. At the same time, lack of knowledge, fear of market risk, and limited surplus income remain major barriers to investment. The study concludes that awareness alone does not guarantee participation; investor confidence, financial literacy, and simple communication are equally important. Practical recommendations are offered for investors, mutual fund companies, and regulators to improve informed participation in the Indian mutual fund market.
