Perception Of Investors Towards Mutual Funds In The Sekondi-Takoradi Metropolis: A Case Of Databank Financial Service Limited

Abstract

The purpose of the study was to investigate investors` perception towards mutual funds with reference to Databank Financial Services Limited within the Sekondi-Takoradi Metropolis (STM). Descriptive survey design was adopted for the study. The Yamane`s sampling technique was used to select the 367 respondents who were investors of the bank. Questionnaire was used to collect the data. The data were analysed using both descriptive and inferential statistics. The study revealed that safety of the principal, ease of liquidation and return on investment are the most important factors that investors consider before they make investment in mutual funds. Also, it reveals that the majority of the respondents were males and were of middle age hence had sufficient energy to take on extra activities to enable them to earn additional income for investment in mutual fund. Clearly, most of the respondents are also married with dependents ranging from four to six and critical socio-demographic factors which influence investors` decision to select mutual fund as an investment options include marital status, educational level, training and education on mutual funds, family size, access to addition income sources and financial literacy. The study recommends that the benefits of mutual fund investment must be highlighted to attract more investors. The is the need to redesign mutual fund products to suit diverse investors or the general public for it to be more attractive in order to entice them to invest in mutual fund. Investors should be encouraged to seek additional income, such as engaging in personal entrepreneurship ventures, and farming in order to generate additional income.