Investors’ perceptions of mutual fund risks an empirical study Vasudevan R.*, Dr. Peermohaideen** *Research Scholar, Mahatma Gandhi University, Megalaya, India **Associate Professor, Khader Moideen College of Arts & Science, Adhirampattinam, India Online published on 11 July, 2017. Abstract The Mutual Fund Industry is a fast growing sector of the Indian Financial Markets. They have become major vehicle for mobilization of savings, especially from the small and household savers for investment in the capital market. Mutual Funds entered the Indian Capital Market in 1964 with a view to provide the retail investors the benefit of diversification of risk, assured returns, and professional management. Every type of investment, including Mutual Funds, involves risk. Risk refers to the possibility that investors will lose money (both principal and any earnings) or fail to make money on an investment. A Fund's investment objective and its holdings are influential factors in determining how risky a fund is. Reading the prospectus will help the investors to understand the risks associated with that particular Fund. The study aimed to understand and analyze investor's perceptions of such risks and expectations, and unveil some extremely valuable information to support financial decision making of Mutual Funds. The detailed analysis revealed that investors perceive risk as under performance, risks in Mutual Fund investments are medium and the returns on Fund investments are not so satisfactory. Top Keywords Mutual Fund, Investors, Risk, Perception, and Return. Top |