THE INFLUENCE OF RISK PERCEPTION, FINANCIAL LITERACY, AND DIGITAL SAVVINESS ON MUTUAL FUND PRODUCT CHOICES

• Main Author: Kasih Adjie Cahyani, Catherine
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64384
• Institution: Institut Teknologi Bandung

The wide range of investment products has given people many opportunities to invest. With the growing number of Mutual funds investment in Indonesia, it indicates that mutual funds investment is favored by many Indonesian investors. Experts believe that investors' inaccuracies in taking risks and low knowledge in finance are the most common mistakes in investing. Moreover, it is undeniable that the mutual fund investments also goes along with the advancement of technology. Therefore, this research attempts to identify the characteristics of mutual funds investor in Indonesia and the influence of mutual funds investors risk perception, financial literacy, digital savviness toward mutual funds product choices. This research involved 206 mutual funds investors in Indonesia used descriptive statistics and statistical tools namely, independent t-test, one-way ANOVA test, and ordinal logistic regression. The research result found out that mutual funds investors have low risk perception, high financial literacy, and moderate level of digital savviness. Additionally, a significant difference in the digital savviness exist between the Generation Y and Z as well as high school and diploma/undergraduate educational background. Investors’ risk perception and financial literacy are also found to significantly affect the mutual funds product choices. By understanding the influence of the factors, it is expected that investors will have an optimized mutual funds product choice..