Investor Decision-Making In Hybrid Mutual Funds: Analyzing Socio-Economic And Psychological Influences In India’s Emerging Markets
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Abstract
This study explores the socio-economic and psychological factors influencing investor decision-making in hybrid mutual funds within India’s emerging markets. The rapid growth of hybrid mutual funds, driven by the need for diversification and balanced risk, makes it crucial to understand the underlying motivations that guide investor choices in this sector. The research identifies key determinants such as income levels, education, risk tolerance, and investment goals, while also considering psychological biases like overconfidence, loss aversion, and herd behavior. Through a detailed analysis of investor profiles and market trends, the study finds that socio-economic variables play a significant role in shaping investment behavior, though psychological factors often lead to suboptimal decision-making. The implications of these findings are critical for fund managers and policymakers, as they highlight the need for targeted financial education and investor awareness programs. By addressing the psychological biases and socio-economic disparities, market participants can make more informed investment decisions, potentially leading to better financial outcomes. The study offers a comprehensive framework for understanding investor behavior, and future research could extend this analysis by exploring the impact of regulatory changes, digital platforms, and evolving market conditions on hybrid fund investments.