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An Analytical Study on Investors¡¯ Preference towards Mutual Fund Investment: A Study in Dhaka City, Bangladesh

Author

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  • Noor Nahar Begum
  • Sarabia Rahman

Abstract

Mutual fund is an investment instrument which assembles the savings of millions of small and retail investors into large capital formation. The fundamental objective behind investment in mutual fund is to earn good return with relatively low risk. Mutual fund is acting as an important investment alternatives for general investors. In Bangladesh, mutual fund was first introduced by Investment Corporation of Bangladesh (ICB) in 1980. The main purpose of doing this research is to analyze the investors¡¯ preference towards mutual fund and factors affecting the investors¡¯ preference towards mutual fund. By using 5-point Likert scale in structured questionnaire, researchers have measured the factors affecting the attitude of investors towards mutual fund. Descriptive statistical tools like chi square test have been used for analyzing the data. It is found that, the demographical factors- gender, income and savings have significant influence on the investor¡¯s attitude towards mutual funds investment. Investors prefer mutual fund as safety of life and return on investment. It is identified that, most of the investors are not satisfied with their investment. The study has suggested some important policy measures such as regulatory change, creating investors awareness, encouraging the private companies to raise fund through mutual fund.

Suggested Citation

  • Noor Nahar Begum & Sarabia Rahman, 2016. "An Analytical Study on Investors¡¯ Preference towards Mutual Fund Investment: A Study in Dhaka City, Bangladesh," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(10), pages 184-191, October.
    • Handle: RePEc:ibn:ijefaa:v:8:y:2016:i:10:p:184-191
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    References listed on IDEAS

    as
    1. Henry Kaiser, 1958. "The varimax criterion for analytic rotation in factor analysis," Psychometrika, Springer;The Psychometric Society, vol. 23(3), pages 187-200, September.
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    More about this item

    Keywords

    mutual fund; investment; investors¡¯ preference;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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