Investors' Perception towards mutual fund in Nepal

Abstract

The main objective of the study is to identify the investors’ perception towards mutual fund in Nepal. There can be many factors that affect the interest of the investors while investing in primary market. This research tries to find the preference of the investors regarding investment in mutual fund and the main focus of the study is on the factors influencing the Investors’ Perception of general investors in primary market of Nepal. This research study has explained theoretical review and different literature review related to mutual fund. The study aimed to provide a descriptive analysis of all the variables used, under the present context. Primary data for the study was collected from mutual fund investors of Kathmandu Valley through structured questionnaire. The questionnaire was distributed to 111 respondents, out of which 11 respondents had missing information. Pearson correlation and regression analysis were conducted to identify the relationship between independent variable (fund scheme, risk and return and investor’s level of knowledge) and dependent variable (Investors’ Perception in mutual fund). SPSS 23 was used to find the result of the data analysis and interpretation. Under regression analysis, the regression model that investor’s level of knowledge variable has positive significant impact on Investors’ Perception in mutual fund whereas fund scheme has no impact on Investors’ Perception in mutual fund. This means investors are more concerned about these factors while making Investment Perception in mutual fund. The conclusion drawn by this research is that investor’s level of knowledge is found to be strong variable on Investors’ Perception in mutual fund among fund scheme and risk and return. However, a significant finding from the study is that the majority of the respondents like their level of knowledge from the stock brokers, family and friends while making Investment Perception in mutual fund. The conclusions are provided after interpreting and analyzing the collected data through primary sources. This study has some limitations and to overcome this, a further research can be done by including more specific factors.