Determinants of Stock and Mutual Fund Preferences among Indonesian Capital Market Investors: Evidence from Binary and Ordered Logit Models

Background: Stocks and mutual funds provide distinct routes into capital markets, differing in risk exposure, diversification, and portfolio-management arrangements. This study examines how age, risk tolerance, financial literacy, financial access, digital financial services, and perceived regulatory support are associated with investment-instrument preferences among Indonesian capital-market investors. Methods: A quantitative cross-sectional survey was conducted in Indonesia from June to August 2024. The analytical sample comprised 200 purposively selected respondents who reported holding financial assets. A binary logistic regression modelled stock rather than mutual-fund preference, while two ordered logistic regressions examined stated stock and mutual-fund tendencies separately. Model fit, multicollinearity, proportional-odds diagnostics, confidence intervals, and heteroskedasticity-consistent standard errors were assessed. Results: In the binary model, age category, risk tolerance, and financial literacy were positively associated with stock preference, whereas financial access was negatively associated. The model achieved a McFadden R² of 0.554 and an area under the receiver operating characteristic curve of 0.940. In the ordered stock model, risk tolerance and digital financial services were positively associated with stock tendency, while financial access was negatively associated. In the ordered mutual-fund model, risk tolerance was negatively associated with mutual-fund tendency; the remaining predictors were not significant at the 5% level under conventional standard errors. Conclusion: Risk tolerance was the most consistent determinant of product preference. Other associations varied by instrument and model. The results are associative and relate to a purposively selected investor sample rather than national capital-market participation.