Predicting Investor Behavior In Online Mutual Fund Investments: A SEM Analytical Framework

Abstract

This study investigates the determinants of investor behavior in the context of online mutual fund investments using a Structural Equation Modeling (SEM) framework. The research model integrates demographic variables (age, gender, education, occupation, income, and marital status), performance expectancy, effort expectancy, hedonic motivation, financial knowledge, perceived risk, perceived trust to predict investor behavior in digital mutual fund platforms. Primary data were collected through a structured questionnaire distributed among active online mutual fund investors. SEM analysis was employed to validate the proposed model and examine the relationships between variables. The findings indicate that investment knowledge and risk perception significantly influence online investment behavior, while demographic factors act as moderating variables. The study highlights the growing importance of behavioral and cognitive components in digital investment environments. The insights offer valuable implications for mutual fund providers, fintech platforms, and policymakers aiming to enhance user engagement and build trust in online financial services.