This study explores the preferences of non-investors when choosing between traditional savings instruments and mutual funds, with a focus on understanding the behavioral, psychological, and demographic factors influencing financial decision-making. Despite the increasing promotion of mutual funds as a viable investment avenue in India, a significant portion of the population continues to rely on traditional savings options such as savings accounts, fixed deposits, post office schemes, and gold. The research aims to identify the reasons behind this preference, evaluate awareness levels regarding mutual funds, and assess the perceived barriers to mutual fund investment. Data was collected through a structured questionnaire from a sample of 180 respondents. Quantitative analysis revealed that 53.3% of participants do not currently invest in mutual funds. Key deterrents include lack of knowledge, fear of loss, and absence of trusted financial guidance. Additionally, 56.7% of respondents perceive mutual funds as riskier than traditional methods, while a majority expressed interest in exploring mutual funds in the future if given proper education and support. Hypothesis testing further confirmed significant relationships between age, income, education, and investment behavior, though the strength of correlations varied
Doriya et al. (Thu,) studied this question.