Author ORCID Identifier

0000-0001-8848-0659

Date of Award

17-8-2025

Document Type

Thesis

School

School of Management

Programme

Ph.D.-Doctoral of Philosophy

First Advisor

Dr.R.Amudha

Keywords

Mutual Funds, Retail Investors, Financial Theories, Exchange Traded Funds, Mutual Fund Portfolio

Abstract

As evidenced by the practices passed down through generations the importance of savings and investments is well established in Indian culture. Indian investors consider investment as an essential commitment to financial sustainability and safeguarding dependents. Indians implement investment strategies during their working years to ensure long term financial security and support for future generations.

These cultural practices support the foundation of personal finance in India and well established financial theories (MPT, CAPM and EMH) guide optimising investment outcomes (SEBI, 2020). The effects of inflation and increased life expectancy made Indian investors aware of the need for a substantial financial corpus and broader portfolio diversification. Investing in capital-appreciating asset classes with broader portfolio diversification has been simplified by the increased accessibility of mutual funds (SEBI, 2020).

The growth of the Indian mutual fund sector and the increasing contribution of retail investors emphasises the need to understand the various aspects that impact mutual fund investment. The study suggested optimal scheme selection application that facilitates informed decision-making towards wealth creation and long term financial security. A Mixed-method research design was employed for the analysis, combining descriptive methods to examine primary data and experimental methods to analyse secondary data.

The study employed a novel method involving virtual portfolio creation and XIRR calculations in Microsoft Excel to systematically compare the performance of ETF and ELSS relative to a benchmark index. Primary data collected through the questionnaire has revealed that factors like mutual fund literacy, ETF literacy, annual income, and investment experience and risk tolerance have the most substantial positive impact on returns. Secondary data evaluation of the performance of active and passive schemes highlights the performance of ELSS and ETFs through XIRR evaluations by virtual portfolio and analysis of performance metrics. The research findings suggest that passive schemes are the most efficient investment option for retail investors seeking consistent and stable returns.

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