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Investor-centric strategies for Indian mutual fund industry: inferring from the behavior of individual investors

Author

Listed:
  • T. G. Saji

    (Sri C Achutha Menon Government College)

  • Ratheesh K. Nair

    (Government College)

Abstract

This research proposes a roadmap for investor-centric strategies to mutual fund firms in India for expanding their client base consists of current and potential investors. Based on the responses of 800 investors collected under a perception survey, using discriminant function analysis, the study works out the sustainable marketing mix variables that impel innovation in product design and distribution for Indian mutual fund industry. The study suggests the revision of prevailing investor strategies profiling with novel products of fewer risks, better governance and regulations, speedy and efficient grievance redressal and professionalism in investor services can impart market dynamism to mutual fund instruments in Indian context. However, the post-investment behavioral paralytics like disposition effect, cognitive dissonance and herd behavior are much critical in determining the strategic effects.

Suggested Citation

  • T. G. Saji & Ratheesh K. Nair, 2017. "Investor-centric strategies for Indian mutual fund industry: inferring from the behavior of individual investors," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 44(3), pages 209-225, September.
    • Handle: RePEc:spr:decisn:v:44:y:2017:i:3:d:10.1007_s40622-017-0157-5
    DOI: 10.1007/s40622-017-0157-5
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    References listed on IDEAS

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    More about this item

    Keywords

    Investment decisions; Mutual funds; Factor loadings; Discriminant function;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models

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