ABSTRACT The mutual fund industry in India has evolved as a significant investment avenue for both small and large investors over the last few decades. This paper attempts to understand the general behavioural trends of Indian investors towards mutual fund investments by examining psychological, demographic, and economic factors that influence their decisions. The study highlights that investors’ choices are primarily driven by risk perception, awareness level, income, and education. With the advent of technology and digital platforms, access to mutual funds has become easier, leading to growing participation among young investors. However, many retail investors still lack adequate knowledge about the different categories of funds, market risks, and long-term benefits. This study emphasizes the importance of financial literacy, investor education, and transparency in the mutual fund ecosystem. It concludes that creating awareness, simplifying processes, and improving trust can further enhance mutual fund penetration in India and contribute to the growth of the Indian capital market. Keywords: Investor Behaviour, Mutual Funds, Risk Perception, Financial Awareness, Investment Decision, India