The Effects of Past Behavioral Bias on Mutual Fund Investors Intention: Examining the Moderating Impact of Knowledge

Abstract

This study aims to understand individual behavioral intentions toward mutual fund investors using the theory of planned behavior (TPB). Financial knowledge is used as a moderating variable to test the relationship between the antecedents of investment intention. Convenience sampling was used to obtain 236 samples. Statistical analyses were performed using the SPSS and AMOS software. The research discovered that subjective norms and perceived behavioral control had a substantial impact on individuals’ intention to invest. Financial knowledge is positively moderated by the antecedents of investment intentions. This study suggests that following the initial phases of decision-making, investors seek information from a variety of sources, including feedback from family and friends, podcasts, social media, and prior experiences. Marketers and financial advisors should educate investors of all ages and education groups on where and how to select and build portfolios of mutual funds in financial markets.