Investing in Green? Determinants of Intention to Invest in Socially Responsible Mutual Funds (SRMF)

Socially responsible mutual funds (SRMF) are an alternative investment to fulfil the demand of environmentally conscious investors. Although several studies have been examined on this kind of investment, the evidence on investing in SRMF from the emerging market is relatively limited. The study aims to explore the factors that affect the intention to invest (II) in the SRMF based on a sample from Malaysia. An extended Theory of reasoned action (TRA) framework is developed with financial-related factors (financial self-efficacy (FSE) and financial literacy (FL) and also environmental-related factors (environmental consciousness (EC) and environmental responsibility (ER)). The analysis results of partial least squares-structural equation modelling (PLS-SEM) from 218 responses in Malaysia showed that the II in SRMF is affected by attitudes (ATT), subjective norms (SN), FSE and EC. This further indicated that FL and ER insignificantly impact II in SRMF. The study not only provides significant implications in the literature but also offers important implications for stakeholders in encouraging investment in SRMF.

Socially responsible mutual funds, investment intention, financial

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