Abstract Mutual Funds is a key investment avenue for retail investors. The present study tried to identify different factors influencing the investor’s perception while investing in Mutual funds. The study will assist the Asset management companies to develop new and innovative mutual funds/schemes according to the requirements of investors. The present study identified few factors influencing perception of retail investors in mutual funds/scheme selection. The retail investors are always unique and are an extremely heterogeneous group. Hence, investor’s mutual fund/scheme selection also chiefly differs. For this, the fund houses need to understand the selection behaviour of the investors to develop useful funds/schemes which meets the changing financial requirements of the retail investors. The data was collected data from 450 mutual fund investors through a structured questionnaire to identify the investors’ expectations and their preferences and the factors that influence the selection of mutual funds/ schemes in North Costal Andhra Pradesh.