Investor Satisfaction in Mutual Fund Markets

Abstract

Mutual funds play an important role within the economic development of the respective countries. The active involvement of mutual funds within the economic development are often seen by their dominant presence within the money and capital markets world over past decade. open-end fund industry in emerging markets has become highly competitive thanks to the extraordinary growth being experienced by it in terms of total funds being managed, number of players and selection of latest innovative open-end fund schemes being offered to the investors .The highly competitive nature of this industry necessitates that open-end fund marketers must fully understand the investment behaviour of individual investors (hereon investors) to be ready to effectively market their open-end fund schemes (hereon MFs). the present state of data about the investor behaviour is found to not be quite satisfactory and actually it's inadequate when applied to know the investment behaviour of MF investors. The findings will help the open-end fund industry also as government agencies charged with regulating the market place in making their marketing and public policy decisions, respectively. Further this may improve consumer behaviour theory by deepening our understanding of how investors make buying decisions for the intangible financial products.