Mutual fund plays a crucial role on bringing stability to the financial system and efficiency to resource allocation. It provides a novel way of mobilizing from small investors and allowing them to participate in the equity and other securities of the industrial organization with low risk. A mutual fund is the ideal investment vehicle for today’s complex and modern financial scenario, there has been growing importance of mutual funds investment in India, when compared with other financial instruments. Investment goals vary from person to person. The mutual funds industry grew successfully about substantial returns to the investors and the public sector. Investors of all categories could choose to investors their own in multiple options but opt for mutual funds for the sole reason that all benefits come in a package. The main aim of the present paper is to find out the investors perception on mutual fund investment. The research has taken a sample size of 150 respondents in Rajamahendravaram have been selected by convenience sampling method. For measuring various phenomena and analyzing the collected data effectively and efficiently to draw sound conclusions, a number of statistical techniques basically chi-square test for testing of hypothesis has been used and for analyzing the various factors responsible for investment in mutual funds.