As an anonymous saying goes “Knowledge is one factor of production that does not give diminishing returns”. When this is extended to the knowledge of the investors it can be presumed that with increased level of knowledge the investors would derive maximum utility only when they use the acquired knowledge by experimenting with innovative and risky investment opportunities. But the level of knowledge – high or low will in turn affect the risk perception of an investor or it may be vice versa i.e. the low or high risk appetite may be due the levels of knowledge. With this background the researcher in the present study makes an attempt to understand knowledge (limited to mutual fund investments) of respondents and find if there exists any relationship between risk and knowledge. Key words: Risk Perception, Knowledge levels, Mutual Fund Investors, Mutual Funds.