scholarly journals EFFECT OF FINANCIAL LITERACY, RISK ATTITUDE AND SAVING MOTIVES TO DISPOSITION BIAS ON MUTUAL FUNDS INVESTORS

2021 ◽  
Vol 2 (1) ◽  
pp. 27-33
Author(s):  
Jennifer Saputra ◽  
Dewi Astuti ◽  
Dewi Pertiwi
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Financial Literacy ◽  
Investment Decision ◽  
Risk Attitude ◽  
Binary Logistic Regression ◽  
Human Needs ◽  
Investment Decision Making ◽  
Considerable Impact ◽  
Spss Software

Investment is significant to prepare human needs in the future. To make investment decisions, investors will try to make their decisions as rationally as possible. However, one cannot deny that some irrational factors or biases also influence investment decision-making. This study examines financial literacy, risk attitude, and saving motives on disposition bias of mutual fund investors. The sample used is mutual fund investors, and the respondents themselves make decisions to sell or buy mutual funds. The total of respondents is 116 respondents. The regression method used in this study is binary logistic regression using SPSS software. This study found that financial literacy and risk attitude has a significant effect on disposition bias. Meanwhile, the variable saving motives have no considerable impact on disposition bias.

Mutual Funds

GIS Business ◽  
2019 ◽  
Vol 14 (4) ◽  
pp. 201-208
Author(s):  
Sonal Kumawat ◽  
Hemraj Kumawat ◽  
Vaishali Sharma ◽  
Pooja Verma ◽  
Priyanka
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decision ◽  
Indian Government ◽  
The Past ◽  
Adequate Knowledge ◽  
Investment Decision Making ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
Unit Trust

The Indian mutual fund industry witnessed a remarkable performance in the past 30 years. After independence, with the joint effort of the Indian government and the Reserve Bank of India, the establishment of Unit Trust of India marked the beginning of the mutual fund industry in India. With the opening of mutual fund industry in India, investors started taking the advantage of multiple investment opportunities. This leads to increase in savings to the funds along with banks. Mutual funds have given consistent favorable returns over the past year despite of slow growth. For making an investment in a highly sophisticated and complex financial market, investors need the support of financial experts to take an informed decision. These financial experts are mutual funds who act as an intermediary. Association of Mutual Funds in India is established to protect the interests of mutual funds along with its unit holders and to ensure the development of Indian mutual fund industry on ethical and professional lines. Today, investors prefers to invest in mutual funds amongst other investment options as mutual funds ensures protection of their interest by making an optimum investment decision making. Investment in mutual funds proved to be advantageous to those investors who are ready to take higher risk in order to earn higher return but they lack adequate knowledge of the market.

scholarly journals INVESTMENT DECISION MAKING TOWARDS INVESTING IN ISLAMIC UNIT TRUSTS AMONGST WOMEN

2021 ◽  
Vol 16 (Number 1) ◽  
pp. 43-54
Author(s):  
Nor Izzati Mohd Aziz ◽  
Salina Kassim
Keyword(s):  
Financial Literacy ◽  
Investment Decision ◽  
Risk Attitude ◽  
Sampling Technique ◽  
Men And Women ◽  
Financial Investment ◽  
Self Confidence ◽  
Investment Decision Making ◽  
Investment Volume ◽  
Unit Trust

The differences in skill expectations and knowledge are amongst factors that contribute to the variances when men and women choose financial products. Women are claimed to be risk averse, somewhat insecure, lacking self-confidence and interest in financial investment products. Nevertheless, the evolving working and educational environment has changed this stereotype, wherein women are increasingly more educated, knowledgeable, and are more exposed to investments. Gender equality between men and women in terms of the volume of investments has turned into a requirement that boosts economic growth with people being the most important factor to contribute through investing habit. This cannot be realised if only men are involved in investment. Financial institutions aim certain figures of targeted investment volume each year. As such, this study identified the factors of women investments, particularly in Islamic unit trusts. A total of 201 respondents were selected via the convenience sampling technique. The Likert scale questionnaires were analysed using SMART PLS software. As a result, several investment behaviours, including investment objectives, return expectations, awareness, and risk attitude, emerged as factors that influenced women investors to choose unit trusts. The study outcomes are beneficial in devising effective strategies that may attract women to invest in Islamic unit trust. Besides, certain agencies should conduct campaigns or seminars on financial literacy for this potential sector, so as to enhance their knowledge in investing in Islamic unit trusts.

The Performance of CSR Mutual Funds and Investment Decision-Making

2016 ◽  
Vol 1 (2) ◽  
pp. 229
Author(s):  
Jen-Der Day ◽  
Thuy Mai Trinh Nguyen ◽  
Chia Nan Wang ◽  
George Yungchih Wang
Keyword(s):  
Mutual Funds ◽  
Mutual Fund ◽  
Investment Decision ◽  
Statistical Significance ◽  
Forecast Accuracy ◽  
Sharpe Ratio ◽  
Decision Table ◽  
Information Ratio ◽  
Investment Funds ◽  
Investment Decision Making

<p>Nowaday, Corporate Socially Responsible (CSR) mutual funds are becoming a popular investment option for investors. However, no any research confirms whether CSR Mutual fund activity is better than market index or not. Besides, we should have one method can help con sequently investors in making the decision to select appropriate investment funds. In this study, we measure the financial performance of a sample of 15 CSR mutual funds in the world, with the monthly return over the period 2008-2013, then we propose the dession table. We first use the measures to evaluate the performance of mutual funds such as Alpha (α), Sharpe Ratio (SR), and Information Ratio (IR). And then, we use the obtained decision table to evaluate the predictability by each measure. The results indicate that only 3 of the 15 CSR mutual funds achieve good performance results based on the statistical significance of the two measures Sharpe Ratio and Information Ratio. In addition, the IR is suggested to evaluate and make investment decisions in the future and it also is the best one among the three measures. The decision table suggest investors a measure forecast accuracy way.</p>

scholarly journals The Effect of Financial Literacy on Investment Decision Making in Southern Lebanon

2020 ◽  
Vol 4 (1) ◽  
pp. 37
Author(s):  
Hassan Alaaraj ◽  
Ahmed Bakri
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Investment Decision ◽  
Pearson Correlation ◽  
Investment Risk ◽  
Investment Decision Making ◽  
South Lebanon ◽  
Convenience Sampling ◽  
Spss Software ◽  
Risk Investment

This study examines the effect of financial Literacy on investment decision making among investors in South Lebanon. Financial literacy is expressed in terms of knowledge and awareness while investors’ decision-making is described as the act of investors and the way they interpret, anticipate, investigate, and assess the steps and transaction for decision making. This includes investment risk, investment decision model and process. To achieve the research objective, a quantitative approach was applied in which 150 self-administered questionnaires were collected using convenience sampling. The sample includes customers of four different Banks in South Lebanon. The data was analyzed using SPSS software. Descriptive statistics were identified and proposed hypotheses were tested using Pearson correlation and multi-regression analysis. Results showed a positive significant relationship between financial literacy and investment decision making. Future studies are encouraged to expand the research to other regions in Lebanon over a longer time horizon in addition to applying other variables.

A Study on Investment Decision of Investors With Reference to Penetration of Mutual Funds in India

2016 ◽  
Vol 5 (2) ◽  
Author(s):  
Ratish C Gupta ◽  
Dr. Manish Mittal
Keyword(s):  
Decision Making ◽  
Real Estate ◽  
Mutual Funds ◽  
Capital Markets ◽  
Mutual Fund ◽  
Financial Services ◽  
Investment Decision ◽  
Fund Industry ◽  
Mutual Fund Industry ◽  
The Impact

The Indian mutual fund industry is one of the fastest growing and most competitive segments of the financial sector. The extent of under-penetration in the market is a sore point with the financial services industry, with a large amount of savings being channelized into fixed deposits, gold and real estate rather than the capital markets. The mutual fund industry is yet to spread its reach beyond Tier I cities. The top fifteen cities contribute to 85% of the pie, with the remaining 15% distributed among other cities. The study seeks to determine the impact of decision making of investors on current situation of mutual fund industry.

scholarly journals Pengaruh Financial Literacy, Representativeness Bias, Dan Bias Optimisme Terhadap Pengambilan Keputusan Investasi

2020 ◽  
Vol 2 (3) ◽  
pp. 2976-2991
Author(s):  
Silvia Putri ◽  
Halmawati Halmawati
Keyword(s):  
Decision Making ◽  
Linear Regression ◽  
Multiple Linear Regression ◽  
Empirical Evidence ◽  
Financial Literacy ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
State University ◽  
Investment Decision Making

This study aims to analyze 1) whether there is an influence of financial literacy on investment decision maknig. 2) Obtain empirical evidence whether there is an Representativeness bias making on investment decisions. 3) Does Bias optimisme affect investment decision making. In this study using Causality Design. Population and sampek are 104 respondents registered in the Indonesia Stock Exchange Investment Gallery (GIBEI) Faculty of Economics, State University of Padang. The method of analysis is multiple linear regression. The results of the study found 1) Financial literacy influences investment decisions on investment decision making.2) Optimum bias affects investment decisions on investment decision making. 3) Representativness influences investment decisions on investment decision making. 4) Together financial literacy variables, the optimum bias and representativness together influence the investment decision on investment decision making

scholarly journals Impact of Behavioral Biases on Investment Decision Making with Moderating Role of Financial Literacy

2018 ◽  
Vol 6 (2) ◽  
pp. 34-41
Author(s):  
Rizwan Khalid ◽  
◽  
Muhammad Javed ◽  
Khurram Shahzad ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Positive Impact ◽  
Investment Decision ◽  
Structure Questionnaire ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
The Impact ◽  
Moderating Role

The objective of this study is to examine the Impact of Overconfidence bias and Herding bias on Investment Decision Making with Moderating Role of Financial Literacy. The population was Investor, Employee and Graduate Student. A sample of 200 was selected using convenience technique. Data were collected through structure questionnaire adopted from different papers. Correlation and Regression analysis were performed to examine the result. The Results show that overconfidence bias and herding bias have a positive impact on investment decision making and Financial Literacy has positive impact on investment decision making. Based on the results and discussions of the study findings as well as the limitations, theoretical and practical implications of the study have been provided.

INVESTIGATING MEDIA AND COMMUNICATION CHANNEL SEARCH BEHAVIOUR OF RETAIL INVESTORS FOR INVESTMENT DECISION IN EMERGING FINANCIAL MARKETS

2021 ◽  
Vol 14 (8) ◽  
pp. 34-45
Author(s):  
Atul Shiva ◽  
Monica Sethi ◽  
Diksha Ahuja ◽  
Kritika Sharma
Keyword(s):  
Financial Markets ◽  
Mutual Funds ◽  
Mutual Fund ◽  
Word Of Mouth ◽  
Investment Decision ◽  
Search Behaviour ◽  
Financial Advice ◽  
Effective Manner ◽  
First Choice ◽  
Word Of Mouth Communication

The purpose of this study aims at investigating the major sources of information which drives the investor’s behaviour in investment decisions in Indian Financial Markets. Diverse sources are classified into three categories, that is, financial advice, word-of-mouth communication and specialised press to investigate their effects on the investment behaviour of investors. A total of 258 investors filled a survey on a questionnaire in the National Capital Region of India by using the purposive sampling method. For analysis of data, PLS-SEM was applied on the software version 3.2.9. The key outcome of the study revealed that financial advice was considered as first choice (β = 0.265, p<0.000) to build their investment decision primarily on weekly basis followed by word-of-mouth communication (β = 0.154, p<0.05). Lastly, the mutual fund investors prefer financial newspapers and financial reports published by mutual fund regulatory body and their companies in India to do mutual funds investment. This study proposed a conceptual model in the literature of information search behaviour for mutual funds and contributes significantly to the mutual fund companies and investment agencies to market financial products in an effective manner for investors.

Sign in / Sign up

Export Citation Format

Share Document