Identification of Factors for Investments in Mutual Funds through Banks

Abstract

The mutual fund industry is at a flux. Things are changing at a very fast pace. If the mutual fund industry does not take its due shape and corrective action, some other modes of investments will supersede it. There are people who have surplus funds to invest. It is the mode of investment that gives better and safe returns, and having liquidity and providing other benefits such as taxes are going to be the decisive factors. In this situation, banks as distribution partners for mutual funds have immense potential. This article explores the factors important for selling mutual funds through banks and how they are associated with one another. Exploratory and confirmatory factor analyses have been used to find out the results. A structural model is developed to provide the mutual funds industry a direction to their distribution issues using banks as an important selling point.