Preferences for sustainable and responsible equity funds - A choice experiment with Swedish private investors

Carl-Johan Lagerkvist, A.K. Edenbrandt, I. Tibbelin and Y. Wahlstedt

Journal of Behavioral and Experimental Finance, 2020, vol. 28, issue C

Abstract: We perform a choice experiment modeled on equity fund savings, to estimate preferences for sustainable and responsible investments and conventional fund attributes among private investors in Sweden (n = 559). We find that sustainability strategies, as well as an environmental focus, were more important than other fund characteristics. Moreover, negative affect in relation to SRI contributed as an observable factor to explain variance heterogeneity while experience in fund savings, positive product involvement as well as positive affect were not significant. Our main finding is, however, that latent behavioral characteristics of the investors are strong predictors of latent class membership thereby contributing to distinguish nontrivial investor sub-groups. We find no support for the contribution of sociodemographic characteristics. These results can serve to identify market segments so that equity fund offerings, including those related to SRI, can be mobilized, optimized and tailored to meet the demand for SRI among private investors.

Keywords: Latent class modeling; Impact investment; Variance heterogeneity; Segmentation (search for similar items in EconPapers)
JEL-codes: C99 D14 G41 G51 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:beexfi:v:28:y:2020:i:c:s2214635020303336

DOI: 10.1016/j.jbef.2020.100406

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