The Indian mutual fund industry has emerged as an important component of the financial market by providing investors with opportunities for wealth creation, diversification, and professional investment management. With the growth of digital investment platforms, Systematic Investment Plans (SIPs), and increasing financial awareness, mutual funds have become a preferred investment option among different categories of investors. However, investors’ decisions are influenced by various factors such as risk perception, return expectations, financial knowledge, income level, and investment objectives.

The present study aims to examine investors’ awareness, perception, and investment behaviour towards mutual funds as an investment avenue. The study also focuses on identifying the major factors influencing mutual fund investment decisions and analysing the relationship between demographic characteristics and investment preferences. A descriptive research design was adopted for the study. Primary data was collected from 325 respondents belonging to different age groups, occupations, and income categories through a structured questionnaire. Convenience sampling method was used for collecting responses.

The collected data was analysed using percentage analysis and Chi-square statistical test to examine the association between demographic factors, risk perception, and mutual fund investment decisions. The findings reveal that investors are increasingly accepting mutual funds due to diversification benefits, professional management, and the convenience offered through digital platforms. The hypothesis testing indicates that age does not have a significant influence on mutual fund investment decisions, whereas risk perception significantly affects investors’ preference towards mutual fund investments.