Factors Affecting Personal Investment in Mutual Funds via Mobile Applications: An Empirical Analysis

https://doi.org/10.56225/finbe.v3i2.364

Authors

  • Dewi Rahmayanti Faculty of Economic and Businesses, Universitas Bengkulu, Bangka Hulu, Sumatera, 38371 Bengkulu, Indonesia
  • Ridwan Nurazi Faculty of Economic and Businesses, Universitas Bengkulu, Bangka Hulu, Sumatera, 38371 Bengkulu, Indonesia
  • Doni Aidul Adha Faculty of Economic and Businesses, Universitas Bengkulu, Bangka Hulu, Sumatera, 38371 Bengkulu, Indonesia

Keywords:

Mutual funds investment, Mobile platforms, Intention, Financial literacy,, Investment experience

Abstract

Investing in mutual funds involves delegating financial decisions to an investment manager, and technological advances have made investments accessible on mobile platforms, providing various convenient features. This research empirically investigates whether individuals' behavior to invest in mutual funds on mobile platforms is still influenced by intention, possessing adequate financial literacy, and investment experience. Utilizing the construct Theory of Reasoned Action (TRA), the scale measured consists of 22 indicators related to the selected constructs and variables. Data were collected from 237 individual respondents from Indonesian society who have or have never invested in mutual funds on mobile platforms. PLS-SEM was used for statistical analysis. The findings reveal that attitudes, subjective norms, and financial literacy positively impact intention. Then, intention, financial literacy, and experience strongly influence individuals to invest in mutual funds via mobile platforms. This indicates that investing in mutual funds on mobile platforms is still based on strong intentions, adequate financial literacy, and experience in investing. The findings of this research will contribute to understanding individual behavior in investing, especially in using technology in investment. Furthermore, the important findings in this research can provide valuable guidance for policymakers, such as governments, Indonesian stock exchanges, and investment managers.

Downloads

Download data is not yet available.

References

AbdAlla, A. N., Faraj, M. A., Samsuri, F., Rifai, D., Ali, K., & Al-Douri, Y. (2019). Challenges in improving the performance of eddy current testing: Review. Measurement and Control, 52(1–2), 46–64. https://doi.org/10.1177/0020294018801382

Ajzen, I. (2012). The Theory of Planned Behavior. In Handbook of Theories of Social Psychology: Volume 1 (pp. 438–459). SAGE Publications Ltd. https://doi.org/10.4135/9781446249215.n22

Akhtar, F., & Das, N. (2019). Predictors of investment intention in Indian stock markets. International Journal of Bank Marketing, 37(1), 97–119. https://doi.org/10.1108/IJBM-08-2017-0167

Ali, F. H., & Mehta, A. M. (2020). Is Smartphone Loafing Energizing, Creative, Innovative and Productive at the Workplace? Academy of Marketing Studies Journal, 24(3), 1–12.

Ali, F. H., & Qazi, A. A. (2019). Can social media platforms enable co-creation as a tool in political marketing? The South Asian context. South Asian Studies, 34(01), 81–102.

Awais, M., Laber, M. F., Rasheed, N., & Khursheed, A. (2016). Impact of financial literacy and investment experience on risk tolerance and investment decisions: Empirical evidence from Pakistan. International Journal of Economics and Financial Issues, 6(1), 73–79.

Bağci, H., & Kahraman, Y. E. (2020). The Effect Of Gender On Financial Literacy. Finans Ekonomi ve Sosyal Araştırmalar Dergisi, 4(4), 492–503. https://doi.org/10.29106/fesa.615866

Bongini, P., & Cucinelli, D. (2019). University students and retirement planning: never too early. International Journal of Bank Marketing, 37(3), 775–797. https://doi.org/10.1108/IJBM-03-2018-0066

Cheung, G. W., Cooper‑Thomas, H. D., Lau, R. S., & Wang, L. C. (2024). Correction to: Reporting reliability, convergent and discriminant validity with structural equation modeling: A review and best-practice recommendations. Asia Pacific Journal of Management, 41(2), 785–787. https://doi.org/10.1007/s10490-023-09880-x

Chin, W. W. (1998). Commentary: Issues and opinion on structural equation modeling. In MIS quarterly (pp. 7–16). JSTOR.

Chou, S.-R., Huang, G.-L., & Hsu, H.-L. (2010). Investor attitudes and behavior towards inherent risk and potential returns in financial products. International Research Journal of Finance and Economics, 44(1), 16–30.

Fachrudin, K. R., & Fachrudin, K. A. (2016). The Influence OF The influence of education and experience toward investment decision with moderated by financial literacy. Polish Journal of Management Studies, 14(2), 51–60. https://doi.org/10.17512/pjms.2016.14.2.05

Fishbein, M., & Ajzen, I. (1977). Belief, attitude, intention, and behavior: An introduction to theory and research. Philosophy and Rhetoric, 10(2), 130–132.

Gunawan, I. M. I., & Suartina, I. W. (2021). Pengaruh Perceived Ease Of Use, Product Knowledge, Dan Trust Terhadap Minat Menggunakan Aplikasi Reksadana Bibit. WidyaAmrita: Jurnal Manajemen, Kewirausahaan Dan Pariwisata, 1(4), 1150–1160.

Hair, J. F., Black, W. C., Babin, B. J., Anderson, R. E., & Tatham, R. L. (2006). Multivariate data analysis 6th Edition (pp. 4–4). Pearson Prentice Hall. New Jersey. humans: Critique and reformulation ….

Hair Jr., J. F., Matthews, L. M., Matthews, R. L., & Sarstedt, M. (2017). PLS-SEM or CB-SEM: updated guidelines on which method to use. International Journal of Multivariate Data Analysis, 1(2), 107–123. https://doi.org/10.1504/IJMDA.2017.10008574

Happ, R., & Förster, M. (2019). The relationship between migration background and knowledge and understanding of personal finance of young adults in Germany. International Review of Economics Education, 30(1), 100141. https://doi.org/10.1016/j.iree.2018.06.003

Jiang, J., Liao, L., Wang, Z., & Xiang, H. (2020). Financial literacy and retail investors’ financial welfare: Evidence from mutual fund investment outcomes in China. Pacific-Basin Finance Journal, 59(2), 10–12. https://doi.org/10.1016/j.pacfin.2019.101242

Kamble, S. S., Gunasekaran, A., Ghadge, A., & Raut, R. (2020). A performance measurement system for industry 4.0 enabled smart manufacturing system in SMMEs- A review and empirical investigation. International Journal of Production Economics, 229(11), 107–853. https://doi.org/10.1016/j.ijpe.2020.107853

Lestari, D. M., Sadalia, I., & Silalahi, A. S. (2023). The Effect of Financial Literacy, Risk Perception, Overconfidence, and Investment Experience on Cryptocurrency Investment Decision. In 19th International Symposium on Management (INSYMA 2022) (pp. 158–164). Atlantis Press. https://doi.org/10.2991/978-94-6463-008-4_21

Magdalena, S., Yuningsih, I., & Lahaya, I. A. (2017). Pengaruh firm size dan good corporate governance serta corporate social responsibility terhadap kinerja keuangan pada bank umum syariah di Indonesia. Equilibrium: Jurnal Ekonomi Syariah, 5(2), 221–238.

Marcus, G. (2018). Deep Learning: A Critical Appraisal. In arXiv preprint arXiv:1801.00631 (pp. 1–27).

Metawa, N., Hassan, M. K., Metawa, S., & Safa, M. F. (2019). Impact of behavioral factors on investors’ financial decisions: case of the Egyptian stock market. International Journal of Islamic and Middle Eastern Finance and Management, 12(1). https://doi.org/10.1108/IMEFM-12-2017-0333

Munoz-Leiva, F., Climent-Climent, S., & Liébana-Cabanillas, F. (2016). Determinants of Intention to Use the Mobile Banking Apps: An Extension of the Classic TAM Model. SSRN Electronic Journal, 21(1), 25–38. https://doi.org/10.2139/ssrn.3489124

Muñoz-Murillo, M., Álvarez-Franco, P. B., & Restrepo-Tobón, D. A. (2020). The role of cognitive abilities on financial literacy: New experimental evidence. Journal of Behavioral and Experimental Economics, 84(2), 101–482. https://doi.org/10.1016/j.socec.2019.101482

Mutawally, F. W., & Haryono, N. A. (2019). Pengaruh financial literacy, risk perception, behavioral finance dan pengalaman investasi terhadap keputusan investasi mahasiswa surabaya. Jurnal Ilmu Manajemen (JIM), 7(4), 942–953.

Naveed, F., Khawaja, I., & Maroof, L. (2020). Are Islamic mutual funds exposed to lower risk compared to their conventional counterparts? ISRA International Journal of Islamic Finance, 12(1), 69–87. https://doi.org/10.1108/IJIF-01-2019-0012

Nugraheni, T. (2023). Analisis Minat Penggunaan Aplikasi Investasi Digital pada Investor Milenial Melalui Pendekatan Theory of Planned Behavior (pp. 1–11). Universitas Putra Bangsa.

Oteng, E. (2019). Financial Literacy and Investment Decisions Among Traders in the Techiman Municipality. Research Journal of Finance and Accounting, 10(6), 50–60. https://doi.org/10.7176/RJFA/10-6-07

Otoritas Jasa Keuangan. (2017). Lembaga Perbankan. In ojk. go. id.

Peña-García, N., Gil-Saura, I., Rodríguez-Orejuela, A., & Siqueira-Junior, J. R. (2020). Purchase intention and purchase behavior online: A cross-cultural approach. Heliyon, 6(6), 42–84. https://doi.org/10.1016/j.heliyon.2020.e04284

Permatasari, A., & Adinugraha, H. H. (2023). Milineal Generation Intention In Investing Sharia-Based Mutual Funds Digital. Studia Economica: Jurnal Ekonomi Islam, 9(1), 37–50.

Putra, F., Nur Kholifah, I. Y., Subali, B., & Rusilowati, A. (2018). 5E-Learning Cycle Strategy: Increasing Conceptual Understanding and Learning Motivation. Jurnal Ilmiah Pendidikan Fisika Al-Biruni, 7(2), 171–181. https://doi.org/10.24042/jipfalbiruni.v7i2.2898

Raut, R. K., Das, N., & Kumar, R. (2018). Extending the theory of planned behaviour: Impact of past behavioural biases on the investment decision of Indian investors. Asian Journal of Business and Accounting, 11(1), 265–292. https://doi.org/10.22452/ajba.vol11no1.9

Raut, R. K., Kumar, R., & Das, N. (2021). Individual investors’ intention towards SRI in India: an implementation of the theory of reasoned action. Social Responsibility Journal, 17(7), 877–896. https://doi.org/10.1108/SRJ-02-2018-0052

Samikannu, R., Koshariya, A. K., Poornima, E., Ramesh, S., Kumar, A., & Boopathi, S. (2023). Sustainable Development in Modern Aquaponics Cultivation Systems Using IoT Technologies. In Human Agro-Energy Optimization for Business and Industry (pp. 105–127). IGI global. https://doi.org/10.4018/978-1-6684-4118-3.ch006

Samudra, S., Surayya, S., Kadir, A., & Akhmad, A. (2023). Analisis Reaksi Pasar Saham Pada Pengumuman Daftar Emiten Indeks Lq45 Di Bursa Efek Indonesia. Jurnal Ekonomi Trend, 11(1), 10–16.

Sivaramakrishnan, S., Srivastava, M., & Rastogi, A. (2017). Attitudinal factors, financial literacy, and stock market participation. International Journal of Bank Marketing, 35(5), 818–841. https://doi.org/10.1108/IJBM-01-2016-0012

Suk, M., Kim, M., & Kim, W. (2021). The moderating role of subjective norms and self-congruence in customer purchase intentions in the LCC market: Do not tell me I am cheap. Research in Transportation Business & Management, 41(12), 100–595. https://doi.org/10.1016/j.rtbm.2020.100595

Willy Abdillah, J. H. M. (2015). Partial Least Square (PLS), Alternatif Structural Equation Modeling (SEM) Dalam Penelitian Bisnis.

Yahaya, R., Zainol, Z., Abidin, J. H. O. @ Z., & Ismail, R. (2019). The Effect of Financial Knowledge and Financial Attitudes on Financial Behavior among University Students. International Journal of Academic Research in Business and Social Sciences, 9(8), 22–32. https://doi.org/10.6007/IJARBSS/v9-i8/6205

Zhang, T., Chen, J., & Grunert, K. G. (2022). Impact of consumer global–local identity on attitude towards and intention to buy local foods. Food Quality and Preference, 96(3), 10–44. https://doi.org/10.1016/j.foodqual.2021.104428

Downloads

Published

2024-08-31

How to Cite

Rahmayanti, D., Nurazi, R., & Adha, D. A. (2024). Factors Affecting Personal Investment in Mutual Funds via Mobile Applications: An Empirical Analysis. Frontiers in Business and Economics, 3(2), 114–124. https://doi.org/10.56225/finbe.v3i2.364

Issue

Section

Articles