Perceptual Mutual Fund Performance Model : An Indian Investor's Perspective

This paper presents a perceptual model of mutual fund performance that attempts to go beyond the conventional models. Model presented in this paper is based on the perception of individual investors about various selected parameters affecting the performance of mutual fund. As all the conventional as well as contemporary models available in the wide literature canvas, encompasses a very limited scope and perspective of mutual fund performance. Considering the global amplification and increasing awareness of investors, this model is the need of the hour. For assessing mutual fund performance five determinants were considered. Primary data was gathered by means of the questionnaire mode. Findings of the present research study provide a compact cluster of factors playing influential role in framing the perception of mutual funds. The fact revelations and conclusions of this study make essential inputs to the academic literature in the form of inferences for investors and for fund management companies by identifying the influential decision making factors regarding mutual funds. Hence the determinants which this model ascertains are highly practical and pertinent to all categories of mutual funds. Nevertheless, to give robustness to the model by subjecting the theoretical model to undergo through the structural equation modeling technique of analysis