Mutual Fund is a vehicle that attracts small and medium investors, therefore, strengthen the capital market. There are many reasons to invest in mutual funds such as dividend statements, tax benefits, lower risk and asset value, costs, etc. The mutual fund industry in India has undergone a most successful phase in the last 10 years. The AUM has shown tremendous growth from the start of Rs.25 crore in 1965 to Rs.701443 crore in March 2013. The growth in the number of schemes offered by Indian mutual funds from 403 regimes in 2002-03 to 1294 Schemes in 2011-12 It has shown the inclination of the investors towards the mutual fund. Resources mobilised by public sector funds are Rs. 314706 crore in 2002-03 and reached a high of Rs.10, 019023 crore in 2009-10 of which the share of the fund's public sector fund is about 80 percent of the total fund mobilised. But this tremendous growth in the mutual fund industry in India remains far behind other developed nations. Against this backdrop, primary and secondary data were collected. Percentage analysis and chi-square test have been used to test hypotheses.