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Sustainability preferences and financial decision-making among mutual fund investors

Author

Listed:
  • Löfgren, Åsa

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

  • Nordblom, Katarina

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In our representative sample of Swedish mutual fund investors, those who are sustainability motivated perceive investment choices more difficult than other investors. Of those who are sustainability motivated, 38 percent have never actively invested in a sustainable fund. Preferences for sustainable investment as well as the attentiveness of the investment decisions correlate with certain investor attributes. Young people and women value sustainability higher than others and women make their investment choice less attentively than men. Investors making the choice inattentively are less influenced by financial information. Nudges, such as sustainability labels, may be a more effective way of communicating with this group

Suggested Citation

  • Löfgren, Åsa & Nordblom, Katarina, 2022. "Sustainability preferences and financial decision-making among mutual fund investors," Working Papers in Economics 826, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0826
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    More about this item

    Keywords

    Nudge; decision-making; sustainable investment; mutual funds;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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