AN INTEGRATED CONCEPTUAL FRAMEWORK FOR UNDERSTANDING MUTUAL FUND INVESTMENT DECISIONS AMONG WORKING PROFESSIONALS

Abstract

ABSTRACT
Due to its potential for wealth growth, diversification, and expert fund management, investing in mutual funds has become one of the most popular investment options among working professionals. However, a complex interplay of financial, behavioural, technological, demographic, and psychological factors influences investment decisions. Previous research has mostly examined these factors in isolation, leading to a lack of understanding of how they interact to influence investment behaviour. By combining knowledge from the behavioural finance, financial literacy, technology adoption, and investment decision-making literatures, this conceptual paper seeks to develop an integrated framework that explains mutual fund investment decisions among working professionals. Using a qualitative conceptual research methodology, the study draws from a comprehensive analysis of academic publications, books, industry reports, and policy papers released between 2015 and 2026.
As important factors influencing mutual fund investing decisions, the suggested framework incorporates financial literacy, risk tolerance, investment experience, income, behavioural biases, social impact, digital financial literacy, FinTech adoption, and investor awareness. The framework is supported by well-known theories such as the Theory of Planned Behaviour, Prospect Theory, Behavioural Finance Theory, Modern Portfolio Theory, and the Technology Acceptance Model. By offering a thorough theoretical framework that can direct further empirical research, the study adds to the corpus of current knowledge. In order to create successful investor education programs and improve financial inclusion among working professionals, the suggested framework also has useful implications for mutual fund companies, financial advisors, legislators, and researchers.