Analytical Study of Mutual Fund Investment Patterns Among Working Professionals in Mysuru: A Factor Analysis Approach

Abstract

Dr. Hrushikesh B¹

The rapid expansion of India's mutual fund industry, propelled by SEBI's investor education initiatives and growing digital financial infrastructure, has led to a significant surge in participation among the urban salaried class. Despite this growth, the behavioural determinants shaping the investment choices of working professionals in Tier-II cities such as Mysuru remain relatively underexplored in the academic literature. This study undertakes a systematic investigation of the mutual fund investment patterns prevailing among working professionals in Mysuru, Karnataka, employing an Exploratory Factor Analysis (EFA) framework to identify the underlying latent constructs that influence investment behaviour. Data were collected from a structured questionnaire administered to 320 respondents drawn from key employment sectors including information technology, healthcare, education, banking, and government services. The instrument comprised 28 validated items measured on a five-point Likert scale. EFA with Varimax rotation yielded six robust factors, collectively accounting for 68.74% of the total variance: Return Expectation and Risk Orientation, Regulatory Trust and Institutional Credibility, Financial Literacy and Digital Engagement, Social Influence and Information Channels, Long-term Financial Goal Orientation, and Accessibility and Operational Convenience. The Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy was 0.814, and Bartlett's test of sphericity was statistically significant (p < 0.001), affirming the suitability of the dataset for factor analysis. The findings offer theoretically grounded and practically actionable insights for asset management companies, financial regulators, and policy architects seeking to deepen mutual fund penetration in Tier-II urban markets across India.