EXAMINING THEORY OF PLANNED BEHAVIOR TOWARDS MUTUAL FUND INVESTMENT INTENTION

• Main Author: Amalia Hapsari, Safira
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/41150
• Institution: Institut Teknologi Bandung

The existence of capital markets, encourages an efficient fund allocation since those who have excess funds (investors) can choose an optimal investment alternative with expectation people who invest will get profit or return and the value is increasing. Financial instruments in the capital market can be in the form of stocks, bonds, rights, warrants, and derivatives, and mutual funds. In Indonesia, the mutual fund started to become investor’s choice to place their money. It can be looked from the growth of total asset under management (AUM), the number of products, and the number of investors. Until end of 2018, total assets under management already reached 507 trillion rupiah, total mutual fund products were 2040 products, and number of investors reached one million. This study aims to identify the characteristic of mutual fund investors based on their digital lifestyle and determine what factor that influence intention on investing in mutual fund product, by using approach from the theory of planned behavior. Theory of planned behavior can be used to predict and understand factors that determine certain behavior. The theory identified that attitude, subjective norms and perceived behavioral control will collectively lead to forming behavioral intention. The analysis technique in this study is independent t-test and path analysis. The sampling method is using non-probability sampling which involves Indonesian mutual fund investors. The result is related to digital lifestyle, there is a significant difference in digital lifestyle based on gender, domicile, and monthly income. Based on gender, females have implemented more digital lifestyle than men. Looking from domicile, respondents from Jabodetabek have higher index than respondents from East Java. From monthly income perspectives, respondents who have higher income have higher digital lifestyle index compared with the lower income. While factors that influence investment intention, it indicates that variable attitude had a positive effect and strongest predictor on the intention to invest in mutual funds product. So the background the investors invest in mutual fund because of their personal evaluation towards mutual fund. While the subjective norm and perceived behavioral control found insignificant. It happened since Investment activity considered as personal matters and people may not open towards others also difference investment experience because regulation and system are changed might become the reason subjective norm and perceived behavioral control are insignificant towards mutual fund investment intention.