GenZ Investor Psychology in Mutual Funds investment

Diya Vakharia

Ananya Nair

Dr.Laila Patel

L.S.Raheja College of Arts and Commerce (Autonomous)

Abstract : This research explores the psychological factors shaping Generation Z’s attitudes toward mutual fund investments. It focuses on elements such as risk tolerance, financial literacy, emotional drivers, peer influence, and the role of digital platforms in investment behavior. Data were gathered through a structured questionnaire targeting Gen Z individuals who actively invest in mutual funds. The results reveal that easy access through mobile apps, long-term financial planning goals, and the perception of mutual funds as safer compared to direct equity investments are major motivators. Social networks and online financial content also significantly impact investment decisions, sometimes leading to impulsive actions. While Gen Z investors are becoming more confident financially, gaps in practical investment knowledge remain. The study underscores the need for stronger financial education and transparent communication from mutual fund providers to promote informed and disciplined investing among young investors. Overall, the findings provide valuable insights into Gen Z investor psychology and offer actionable guidance for mutual fund companies seeking to engage this generation effectively.

Keywords: Generation Z, Mutual Funds, Investment Psychology, Financial Literacy, Risk Perception, Social Media Influence, SIPs