Investors’ Behavioral Intention in Mutual Fund Investments in India: Applicability of Theory of Planned Behavior

Heena Thanki (), Naliniprava Tripathy () and Sweety Shah ()
Additional contact information
Heena Thanki: Shri Jairambhai Patel Institute of Business Management and Computer Applications
Naliniprava Tripathy: Indian Institute of Management Shillong
Sweety Shah: LJ University

Asia-Pacific Financial Markets, 2025, vol. 32, issue 3, No 8, 975-996

Abstract: Abstract This study examines the impact of subjective norm, attitude and perceived control behavior (financial literacy) on investors’ behavioral intention to invest in mutual funds based on the theory of planned behavior. We have applied Structural Equation Modelling - path analysis to examine the influence of financial literacy, subjective norms, and attitude on the behavioral investment intention of mutual fund investors. The study’s findings indicate that Investors’ choice to invest in a mutual fund is positively prejudiced by their subjective norms, attitude, and financial literacy. Subjective norms significantly influence investment decisions more than attitude and financial literacy. Age, gender, and level of education have no moderating effect on attitude, subjective norms, and financial literacy. The study is proved to be unique to the literature on behavioral finance. The study’s findings are eye-opening as the investment intentions in the mutual fund are influenced by subjective norms, indirectly signaling that investors lack awareness of mutual fund investment.

Keywords: Mutual fund; Financial literacy; Behavioral investment intention; Attitude; Subjective norms; Theory of planned behavior (search for similar items in EconPapers)
JEL-codes: C39 G19 G41 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s10690-024-09477-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:apfinm:v:32:y:2025:i:3:d:10.1007_s10690-024-09477-4

Ordering information: This journal article can be ordered from
http://www.springer.com/finance/journal/10690/PS2

DOI: 10.1007/s10690-024-09477-4

Access Statistics for this article

Asia-Pacific Financial Markets is currently edited by Jiro Akahori

More articles in Asia-Pacific Financial Markets from Springer, Japanese Association of Financial Economics and Engineering
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().