Sijoitusrahastoasiakkaiden taloudellinen kyvykkyys ja tulevat lisäsijoituspäätökset

Abstract

The main focus in the present dissertation is the understanding of the phenomenon of financial capability among Finnish private investors in mutual funds. In a wealthier and more market-oriented world in which individuals are increasingly required to take responsibility for their financial affairs, people need to be able to manage their funds. The aim of this study is to measure financial capability objectively using an item analysis with the latent trait score (Rasch Model) of financial capability. The survey questionnaire was mailed to 3,200 OP-Fund Company clients in two mutual funds and in four subgroups. The funds were equity fund and money market fund, which have different risk/return profiles. Subgroups were formed in both funds according to the distribution channel chosen by clients (branch office or internet). The response rate was 30.7%. Among the background variables education was the best predictor for financial capability. Men seemed to display higher levels of financial capability than women. Moreover, the quantity of different investments predicts higher financial capability. The financial capability scores of different subgroups have statistically significant differences. The study indicates that financially capable mutual fund clients tend to use the internet as a service channel. Overconfidence has been intensely studied in the behavioral and financial research. The studies have concluded that people are usually overconfident. This study did not confirm the observation of overconfidence. Instead, the clients with high ability score also had a realistic perception of their level of competence. The hypothesis that novices and experts use different information sources was confirmed. Experts get information from the internet and magazines or through their jobs, whereas novices obtain information from the staff in the branch offices. Clients’ additional investment decisions were examined using The Theory of Planned Behavior and a PLS-Path Model. Three important variables explaining intention to invest more in mutual funds are: attitude towards mutual fund investment, subjective norm and financial capability score.