Mutual Fund and Investors Attraction: An Empirical Evidence of Nepal

Abstract

Mutual fund and Investors attraction depends on the numbers of factors and it is differ from context to context. So, this study tries to assess the investor’s attractions towards mutual funds in Kathmandu valley. To fulfill the stated objectives 250 potential respondents were selected purposively and responses were collected through questionnaire. The collected data are analyzed with the help of descriptive and correlation analysis. In terms of familiarity with the various financial securities currently available in the Nepalese financial market, most of investors familiar with fixed deposits, medium familiarity with shares and very low familiarity with bonds and debentures and money market instruments. The analysis of the results concluded that investors attracted towards mutual fund due to its flexibility and secured type of investment mechanism, Professional management Service. At the same time study found that investors’ has increasing trends of awareness towards mutual funds in Kathmandu. Further, it is recommended that concern authority, regulations body, Issue Manager could conduct such training and awareness program showing the importance of mutual funds.