Investors’ Preference Towards Mutual Fund: An Analytical Evidence From Kathmandu Valley

Abstract

This paper analysis investors’ preference towards mutual fund. The study was conducted inside the Kathmandu valley. In terms of familiarity with the various financial securities currently available in the Nepalese capital market, investors have high familiarity with fixed deposits, medium familiarity with shares and low familiarity with bonds and debentures and money market instruments. Incase of the preference for the structure of the mutual fund, more than two-third of the total respondent were in favor of Close Ended Mutual Funds. Potential investors of mutual funds prefer family members followed by self-analysis as a medium for getting understanding to create the awareness of mutual funds; TV Advertisement and Print Newspaper are effective, as these sources are preferred by the potential investors. This study concludes that mutual funds could be an admirable institution for bridging the gap between the individual savers and the established business in Nepal. Investors are showing more interest in mutual fund these days.