Investment in mutual funds is based on
market risk as it is connected with the stock market
investment and the rate of return depends on the
fluctuations in the market. IT professionals in Kerala,
India mainly look into mutual funds as a safe mode
investment as it provides better returns than other mode
of investments like bank deposits, recurring deposits,
gold, real estate etc. Majority of the IT professionals
earns high number of perks and they look for an
investment which can save their tax and beat the
inflations. IT professionals mainly invest their money in
tax related investments like ELSS ie Equity linked saving
schemes in order to save the tax and can with draw the
money after the three-year lock in period specified by
ELSS Schemes. The study gives a limelight on how the
IT professionals uses mutual fund as investment for
future prospects like saving money for retirement,
building a corpus for buying a house, children’s
marriage and education. The various behavioral bias like
the loss aversion, herding behavior, overconfidence and
disposition effect is also included in the study.
Keywords :
Behavioural Finance, loss aversion Bias, anchoring Bias, Herding behaviour Bias, Disposition Effect bias, Overconfidence Bias.