Retail investors in India prefer less risky mutual funds for better returns.
The study looked at 144 Indian mutual funds from 2014 to 2018 to see if there is a connection between how much money investors put into a fund and how well the fund has been doing recently. They found that when funds perform well, more people invest in them. This shows that investors in India pay attention to a fund's recent performance. The results also revealed that investors tend to choose less risky funds to invest in. This research gives us a better understanding of how investors behave when it comes to mutual funds in India, especially after some new rules were put in place by the government.