View AbstractThe current study is undertaken to identify the factors affecting investment behaviour of mutual funds investors. Secondary data has been used to accomplish the purpose of the study. Extant literature has been reviewed to gather information relating to investment behavior of mutual funds investors. The findings of the study reveals that investment in mutual funds is significantly affected by the attitude and risk perception of the investors, knowledge/ awareness about the investment schemes, various investment alternatives, information source, demographic variables like age, gender, marital staus & socio-economic variables like education, occupation and income level has direct and significant relationship with investment behaviour of mutual funds investors. Further, it is found that tax savings, safety of funds, flexibility, liquidity and diversification of risk significantly affects investment behaviour of mutual funds investors. It is culminated that investment in mutual funds enables the investors to attain financial, social and psychological goals. The current study shall prove to be a unique addition to the existing literature pertaining to behavioural finance. It looks into how for the socio-economic characteristics of individual investors influence their choice while making an investment in mutual funds. The current study would become a stepping stone for promising researchers, academicians, fund managers, assets management companies, financial analyst and policy makers to frame policies and provide appropriate solutions for managing investment in mutual funds both at the national and international level.