India is now being ranked as one of the fastest growing economic system of the world. The position of Indian insurance and mutual fund industry as a major financial provider in the financial market has been truly remarkable over the past decade or so. Indeed, since 1992, several research studies have highlighted the importance of these two as important investment vehicles in the Indian capital market environment. But there are very few existing Behavioral Finance ' studies on factors influencing the selection of mutual fund and life insurance schemes and very little information is available on perceptions, preferences, attitudes and behaviors of investors. Again, there may be no attempt to analyze and compare Indian retail investors selection behavior towards mutual funds and life insurance, particularly in the post-liberalization period. With this context, this paper makes a serious attempt to research investors ' actions in selecting these two investment vehicles from an Indian perspective through a comparative study.