Title: Factors that affect mutual fund investment decision of Indian investors

Authors: Amarjit Gill; Nahum Biger; Harvinder S. Mand; Sukhinder S. Gill

Addresses: College of Business Administration, Trident University International, 5757 Plaza Drive, CA 90630, USA. ' School of Business, Academic Center Carmel, Shaar Palmer 4, Haifa, 33031, Israel. ' Sikh National College, Banga, Sahid Bhagat Singh Nagar, 144505, East Punjab, India. ' Global Pacific Financial Services Ltd., 10430 – 144 Street, Surrey, BC, V3T-4V5, Canada

Abstract: The paper seeks to extend the findings of Gill and Biger (2009) related to gender differences and factors that affect stock investment decision of Western Canadian investors by examining the affects of: 1) investors' investment expertise; 2) investors' knowledge of 'neutral information'; 3) investors' consultation with investment advisors on their decisions to invest in mutual funds. The present study is based on a sample of people living in Punjab and Delhi areas of India. Subjects were asked about their beliefs and feelings in relations to their investment decisions with particular reference to investments in mutual funds. We found that the degree of mutual fund investment decision is related to the degree of Indian investors' perceptions about their: 1) investment expertise; 2) general knowledge about the economy and the concept of mutual funds; 3) consultation with investment advisors. Family size also plays some role in the decision to invest in mutual funds. The valuable and useful recommendations for the investment managers and investment advisors have also been provided in the paper.

Keywords: investment expertise; economy; mutual funds; investor consultation; financial advisors; decision making; India; investment decisions; family size.

DOI: 10.1504/IJBAF.2011.045020

International Journal of Behavioural Accounting and Finance, 2011 Vol.2 No.3/4, pp.328 - 345

Published online: 20 Jan 2012 *

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