Abstract: A mutual fund is neither risk-free nor guaranteed to pay a stable return, even though it does not require direct portfolio formulation. Hence, the investor requires adequate knowledge of mutual funds to analyse the various alternatives. This study examines the level of Mutual Fund Literacy (MFL) and explores the factors affecting it among university teachers at The University of Burdwan. Primary data were collected from 63 University teachers and analysed using statistical tools and techniques. The study's outcome suggests a moderate level of MFL among the selected teachers. The Censored-Tobit regression model suggests that factors such as age, gender, marital status, discipline, and designation are key drivers that determine MFL. However, factors such as investment tenure and investment mode failed to determine the MFL of university teachers. The study will make a positive contribution to policy-making by helping policymakers and the government identify the key factors that require more attention. Keywords: Mutual Fund, Mutual Fund Literacy, Financial Literacy, Investment Decision, Stock Market Participation.