According to the Type of Self-evaluation of Fund Investment Literacy Investment Propensity and Financial Investment Behavior

Mutual fund, as a financial investment option, has gained reasonable acceptance in India since its inception. While traditional forms of investment have its own merits, the sheen of mutual fund has also been realized by Indian investors. A huge investor class have scored mutual fund higher than its counterparts on many counts. While the popularity of this new age investment option is on a rise, however, a mixed view is also experienced. The present study explores the behaviour of investors’ towards mutual fund. The study is based on the premise of regression analysis and binary logistic regression has been used to develop a model that best represents the consumer behaviour. The best model selection is based on the information criteria of Akike. Also, from the model, the researchers have evaluated the probability of mutual fund purchase by consumers. Finally, the research work shows computation of odds ratio that signifies the extent to which the probability of purchasing mutual fund would change with unit change in the levels of the covariates. This study is descriptive in nature and is based on primary survey with a sample size of 376. The results reveal that high returns are the most preferred determinant of investment behavior followed by the liquidity which is also evident from the odds ratio computation.

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Influence of terror perceptions on individual investment behaviors: examining the moderating effects of present hedonic time perspective and consumer gender

Review of Behavioral Finance ◽

10.1108/rbf-11-2020-0281 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Jing-Yi Chen

Keyword(s):

Decision Making ◽

Sensation Seeking ◽

Time Perspective ◽

Low Ph ◽

Investment Behavior ◽

Content Type ◽

Financial Investment ◽

Time Perspectives ◽

Risky Investment ◽

Financial Investments

PurposeThe argument that terror perception and individual time perspectives can affect behaviors has become increasingly relevant. This study analyzed the association of terror perception with financial risk and developed an integrated framework of the interaction between terror perception (mortality salience) and time perspective to determine risky investment. People with different time perspectives have different acknowledgments of risk. Two studies of terror perception leading to more or less risky investment choices supported this framework to demonstrate that individuals exhibit more (less) risky investment behavior when terror perception is salient and they have a high (low) present hedonic time perspective.Design/methodology/approachTwo experiments were performed. Study 1 tested whether TP moderates the effects of terror priming (aging) on risky financial investment. Study 2 tested the effects of terror priming on risky financial investment decisions and the role of gender and the present hedonic TP (PH) in moderating these effects. The following hypotheses were then developed: H1: Participants with high PH primed with the aging condition will select riskier financial investments than those with low PH will (Study 1). H2: Male participants with higher PH primed in the death condition will select riskier financial investments than those in the control condition will (Study 2).FindingsBecause people with different TPs acknowledge risk differently, this article developed a new framework modeling MS on TP in risky investment selection. Two studies representative of MS affecting risky investment decision-making were conducted to test the framework. The results of the two studies indicated that individuals engaged in risky investment behavior more (less) when mortality was salient and the individual had high (low) PH. Moreover, gender influences these results. As anticipated, male participants with higher PH in the death-primed condition selected riskier financial investment than those in the control condition did. Additional research from a broader perspective is warranted.Originality/valueMany psychological factors of risky decision-making have been discussed, such as motivational systems or situational motivation, self-framing, control orientation, sensation seeking, dishonesty, and ambiguity (Sekścińska et al., 2016). However, few studies have examined temporal framing, also known as time perspective (TP), the psychological concept of a person's relationship with time. This study mainly discusses the effects of terror perception on risky financial decisions by using a theoretical framework based on TP, which influences the effects of MS on risky financial decision-making. When mortality is made salient, individuals with present hedonic TP have behaviors characterized by risk perception. Those with present hedonic TP are more likely to make risky financial investments because they prefer present pleasure and risk over future outcomes (Zimbardo and Boyd, 2015).

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