An efficient financial sector mobilizes savings and allocates it to those investments which yield the highest rate of return. Savings are the difference between income and consumption of an individual. An increase in the volume of real domestic savings means that resources that would have been used for consumption are released for investment. India has high level of saving rate because of high level of saving motives of individuals. Every individual seems to understand the basic principle of investment. Investment means the purchase made by an individual of a financial or real asset that produces a return proportion to the risk assumed over some future investment period and for achieving this investor decides on how and where to deploy his/her saving. Saving motive is thus, a desire to reserve certain mixture of income for future. The main objective of investor is to invest in different speculation avenues that deliver expected returns and help to chance the risk in future. The investor has some motive for making an investment. The salaried employee category of investorhowever gives more importance to create more stand-in savings to meet the risk in future.The present study aims to determine and identify investor’s preference relating to making an investment in public and private sector mutual funds. It further analyses the investor’s satisfaction level of an investment in public and private sector mutual funds. Hence, the study establishes the responsiveness of the investors towards investing in mutual funds.