IDEAS home Printed from https://ideas.repec.org/a/src/sbseec/v3y2021i3p327-338.html
   My bibliography  Save this article

What Drives Individual Investors to Invest in Mutual Funds in a Developing Economy

Author

Listed:
  • Mwanza, Manasseh
  • Chisanga, Stella Zulu
  • Chanda, Shikaputo
  • Mpembele, Stephen

Abstract

Purpose: The aim of this study is to investigate factors that influence investment in mutual funds by individual investors in a developing economy. Drawing insights from the theory of planned behaviour, the study identified and tested the effect of awareness, attitude, financial literacy and preference for other competing investments on intention to invest in mutual funds by individual investors.Design/Methodology/Approach: Data was collected from 280 respondents in Zambia. Data was analysed using correlations and hierarchical regression models.Findings: The study reveals that awareness and attitude towards mutual funds significantly influence intention to invest in mutual funds. Surprisingly, financial literacy and preference for other investments do not significantly affect an individual investor’s intention to invest in mutual funds.Implications/Originality/Value: This study contributes to the financial services marketing literature by increasing understanding of individual investors’ investment decisions and drivers that influence intention to invest in mutual funds in Zambia. The study recommends that mutual funds marketers should invest more in building awareness and positive attitude towards investment in mutual funds in order to develop retail demand. Also, investment companies and financial services marketing policy makers should carefully consider their financial literacy programmes as the study reveals that financial literacy and competing investments are not significant drivers.&

Suggested Citation

  • Mwanza, Manasseh & Chisanga, Stella Zulu & Chanda, Shikaputo & Mpembele, Stephen, 2021. "What Drives Individual Investors to Invest in Mutual Funds in a Developing Economy," Sustainable Business and Society in Emerging Economies, CSRC Publishing, Center for Sustainability Research and Consultancy Pakistan, vol. 3(3), pages 327-338, September.
    • Handle: RePEc:src:sbseec:v:3:y:2021:i:3:p:327-338
    DOI: http://doi.org/10.26710/sbsee.v3i3.1945
    as

    Download full text from publisher

    File URL: https://publishing.globalcsrc.org/ojs/index.php/sbsee/article/view/1945/1245
    Download Restriction: no
    File URL: https://libkey.io/http://doi.org/10.26710/sbsee.v3i3.1945?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:src:sbseec:v:3:y:2021:i:3:p:327-338. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr Rana Muhammad Adeel Farooq (email available below). General contact details of provider: https://edirc.repec.org/data/csrcmpk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.