This study examines the effect of risk perception, return perception, socio-economic conditions, level of venality, innovation in investment schemes and awareness about mutual funds on investor behavior. Responses are taken from both mutual funds investors & non investors. Respondents' occupation is used as uniformity tool and the binary logistic model is applied for data analysis. Population of study are individual investors from all over the Pakistan. The study results are based upon 460 questionnaires survey in Lahore, Islamabad and Karachi using snowball sampling technique. Results reveal that investor's behavior can be positively explained with investment preference criteria, innovation in investment schemes and awareness. It will help to enhance the investor base in mutual funds. It is also found that return perception, level of venality and institutional high risk factors have the adverse effect on investor's behavior. This study is the first attempt to configure and understand the systematic effects of various determinants towards actual investor's behavior of Mutual funds in Pakistan.