ASSESSING RELATIVE WEIGHT OF DETERMINANTS OF INVESTMENT IN INDEX SCHEME OF MUTUAL FUNDS

Abstract

The main aim of this study is to assess the relative weight of determinants of investment in Index schemes of mutual funds. The target population for the study came out to be 880. Using a simple random sampling method, the sample size was determined to be 268. Of these, 262 bank employees responded to the questionnaire, and the rest 6 were reluctant. A 95% confidence interval and ±5% margin of error have been used to estimate the overall sample confidence level. For the practice of data, the collection questionnaire method was used. Ordinal logistic regression and Kendall are used to assess the relative weight of determinants of investment in different index schemes of mutual funds. The study discovered that various psychological characteristics like risk perception and attitude are significant determinants of mutual fund investment in Tripura. Also, the interaction effect with demographic and psychological factors influences the volume of investment in mutual funds in Tripura. The study has good inputs for the fund managers of mutual fund Companies. They can know the determinants of investments in mutual funds and their impact on the volume of investment. This study will guide the policymaker on which determinants should be given more weight. The study will assist in designing a strategy for what level of training is required to improve psychological factors toward investment in the mutual fund. The study is very original. It is first attempted to assess the relative weight of determinants for preferring index schemes of the mutual fund.