Control of Risk-Taking in Mutual Fund Investing Decisions

Farend Olivia Hutomo (), Cynthia Sari Dewi () and Eko Agus Endarto
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Farend Olivia Hutomo: Universitas Multimedia Nusantara, Faculty of Bussiness
Cynthia Sari Dewi: Universitas Multimedia Nusantara, Faculty of Bussiness
Eko Agus Endarto: Universitas Multimedia Nusantara, Faculty of Bussiness

A chapter in Proceedings of the International Conference of Economics, Business, and Entrepreneur (ICEBE 2022), 2023, pp 305-314 from Springer

Abstract: Abstract Mutual funds are the most popular way to invest on the capital market, even though there are other options. Most of the time, investors use their analytical and math skills to decide what to invest in. But many studies on behavioral finance have shown that investors tend to act irrationally when making investment decisions, which is directly related to the way investors act when they take risks. This study investigates the variables affecting Indonesian mutual fund investors' risktaking behavior and its relation to investment decision. There are 178 mutual fund investors as respondents. The SPSS software version 22 is used in this study's multiple linear regression tests. Results revealed that while herding and familiarity bias have a considerable impact on investors' risktaking behavior, heuristics and prospects have no impact. This research enables investors who must construct and place themselves in a healthy investing environment with the knowledge they need to make a sound investment decision with valuable insight.

Keywords: Risk-taking behavior; Mutual fund; Behavioral finance (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-2-38476-064-0_33

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DOI: 10.2991/978-2-38476-064-0_33

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