Kidnapped mutual funds: Irrational preference of naive investors and fund incentive distortion

Chang, XiaoChen; Guo, Shaofeng; Huang, Junkai

doi:10.1016/j.irfa.2022.102279

Cited by 5 publications

(1 citation statement)

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“…Examining how different product features and disclosure documents affect consumers' financial decision-making is crucial when it comes to mutual funds [6]. The findings of the [7] study continue to raise doubts about the efficient market hypothesis's prediction that institutions will be willing to address mispricing and cast doubt on the widely held belief that household financial decision-making is best handled by sophisticated Bayesian agents.…”

Section: Introductionmentioning

confidence: 99%

Control of Risk-Taking in Mutual Fund Investing Decisions

Hutomo¹,

Dewi²,

Endarto³

2023

Proceedings of the International Conference of Economics, Business, and Entrepreneur (ICEBE 2022)

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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.

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Section: Introductionmentioning

confidence: 99%