Mutual funds have become an important investment avenue for individual investors because they provide diversified exposure to financial securities under professional management. This study examines the major factors that influence individual investors while making mutual fund investment decisions, with emphasis on risk, expected return, investment objectives, liquidity, diversification, past performance, costs and investor awareness. The study adopts a descriptive research design based on secondary information obtained from official regulatory and industry sources and relevant literature. The analysis indicates that mutual fund selection is influenced by a combination of financial and investor-specific considerations rather than by return expectations alone. Risk level and alignment with financial objectives are particularly important because mutual fund investments are subject to market-related risks. Diversification and professional management can make mutual funds attractive to individual investors, while clear disclosures and investor education can support informed decisions. The paper provides a structured framework for understanding mutual fund investment behaviour and highlights the importance of matching scheme characteristics with an investor's risk tolerance, investment horizon and financial goals.

Awanti Sureshrao Kathuke, Dr Ujwala Narkhede, "A Study on Mutual Funds and Their Impact on Investment Decisions of Individual Investors" International Journal of Scientific Research and Engineering Development, V9(5): Page(652-654) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.