A CRITICAL INVESTIGATION IN ANALYSING THE KEY DETERMINANTS INFLUENCING THE INDIVIDUAL INVESTORS IN SELECTING EQUITY MUTUAL FUNDS IN THE CURRENT ECONOMIC CONDITIONS

Abstract

When investing in the stock market, shareholders of mutual funds are able to have access to the expert market information of market professionals. They enable the diversification of risk with an expenditure of cash that is kept to a bare minimum. It is becoming more difficult to choose just one mutual fund strategy due to the vast number of options available. In 2017, there were 114,131 different mutual fund schemes that offered infinite possibilities for investment. Investors almost always opt for the investment strategy that promises the highest potential returns. In advertisements for mutual funds, it is common practise to brag about the returns that certain funds have produced in the past. In addition to this, there is the proviso that the outcomes of the past are not always indicative of the outcomes of the future. One could be left wondering why mutual funds spend so much money promoting their success given how little information this provides new investors. In addition, information on critical operational features of mutual funds may be made available to investors in the form of public filings, which may be accessed by investors.