The purpose of the current study is to investigate the various factors influencing on people to invest in mutual funds and examine the mediating role of investor’s perception. By using quantitative research approach and cross-sectional research design, 300 questionnaires are distributed among the individual investors and Smart PLS 3 is used to analyze the data. | A prospective study of factors that lead to invest in mutual funds A mediating role of investor s perception Accounting 5 2019 69 80 Contents lists available at GrowingScience Accounting homepage ac A prospective study of factors that lead to invest in mutual funds A mediating role of investor s perception Waseem Ul-Hameeda Muhammad Imranb Nadeem Maqboolc Sajjad Ahmedc and Muhammad Azeemd aPhD Candidate School of Economics Finance amp Banking Universiti Utara Malaysia Malaysia b PhD School of Business Management Universiti Utara Malaysia Malaysia c Department of Management sciences Islamia university of Bahawalpur Pakistan d School of Technology Management amp Logistics Universiti Utara Malaysia UUM Malaysia CHRONICLE ABSTRACT Article history The purpose of the current study is to investigate the various factors influencing on people to Received March 3 2018 invest in mutual funds and examine the mediating role of investor s perception. By using Received in revised format June quantitative research approach and cross-sectional research design 300 questionnaires are 11 2018 distributed among the individual investors and Smart PLS 3 is used to analyze the data. The Accepted July 5 2018 Available online results reveal that risk and return liquidity of assets demographic factors gender age and July 6 2018 material status convenience reduction in transection cost tax benefits and transparency were Keywords the key factors and maintained significant relationships with investment in mutual funds. Mutual funds Moreover investor s perception maintains mediating role between all these factors and Investor perception investment in mutual funds. The study contributes in literature by investigating the various Risk and return factors which influence on investors to invest in mutual funds. Moreover it also contributes Liquidity by investigating the mediating role of investor s perception. Tax 2019 by the authors licensee Growing Science Canada. .