A STUDY OF FACTORS INFLUENCING ON CHOICE OF INVESTMENT PRODUCTS

• Main Author: Riama Maruliana Sianturi, Tutur
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/64566
• Institution: Institut Teknologi Bandung

People in Indonesia are increasingly interested investing in the capital market. It is showed by the increasing number of individual investors in the capital market in the past few years. Mutual funds and stocks are the most popular investment products for individual investors in capital market. The development of Fintech and digital platforms increase the number of individual investors in mutual fund and stock because it makes access to investing more easily and quickly. However, the number of individual investors is still less than 1% of Indonesia's population. It is important to encourage people in Indonesia to actively participate in the capital market since capital market contributes to Indonesia's economic growth. To increase public interest in investing in mutual funds and stocks, it is important to examine the factors that influence individual investment decisions on choice of products. In this study, the factors tested for their influence on the choice of investment products in mutual funds and stocks are loss aversion, overconfidence, financial literacy, and digital savviness. The sample of this research is individual investors who invest in mutual funds and stocks. Descriptive statistics, independent t-test, One-Way ANOVA, and Multinomial Logistic Regression were done to reach the main objectives. The research found that there are differences in the digital savviness index of respondents in relation with demographics except for occupation. Factors tested influence on the choice of investment products simultaneously. Partial influence, loss aversion of mutual fund investors is higher than stocks individual investors. Then level of literacy financial and digital savviness of mutual fund and stock investors are higher than mutual fund investors. In connection with the findings, it is recommended for governments and financial institutions to work together to improve financial literacy and digital savviness of Indonesian to improve the number of investors in mutual funds and stocks.