Abstract: The increasing participation of individual investors in equity mutual funds has grab attention to the behavioural factors influencing investment decisions. While theoretical finance assumes rational decision-making, behavioural finance highlights the role of psychological biases in shaping investor preferences. This study examines the behavioural determinants affecting individual investor preference for equity mutual funds, along with the influence of demographic variables. Primary data were collected from 272 individual investors through a structured questionnaire. The data were analyzed using descriptive statistics, Chi-square tests, and regression analysis. The results reveal a high level of awareness of equity mutual fund investments among respondents. Gender was found to have no significant association with equity mutual fund preference, whereas age showed a significant relationship. Regression results indicate that behavioural biases such as overconfidence, herd behaviour, and risk perception have a significant positive influence on equity mutual fund preferences. The study concludes that investor behaviour is shaped by both demographic and psychological factors, underscoring the importance of behavioural finance in explaining equity mutual fund investment decisions.

Keywords: Equity Mutual Funds, Preference for Equity Mutual Funds, Investor Preferences, Behavioural Biases.