Role of Investor Awareness in Rural Areas – in Mutual Funds Industry

Abstract

The Indian mutual fund industry has experienced remarkable growth in recent years. However, rural participation continues to lag significantly behind. This study investigates the role investor awareness plays in bridging this gap. Using a sample of 350 rural respondents across five states—Uttar Pradesh, Maharashtra, Tamil Nadu, Odisha, and Rajasthan—the study highlights how demographic factors, education, and access to information shape investment behaviors in rural areas. Findings indicate an awareness–action gap, with high levels of interest but limited actual investment. The study emphasizes that localized awareness campaigns, digital access, and trust-building measures are crucial for expanding mutual fund adoption in rural India.