Determinants of an Investor's Decision in Unit Trust Investment

Abstract

A unit trust is an easy method to invest and a wise strategy to increase one's wealth over the short, medium, and long terms. Investment professionals will oversee the investments and carefully diversify the risks. The fundamental characteristic of a unit trust is that it has lower returns than other financial products due to its low level of risks. The elements that affect an investor's choice to invest in unit trusts are not sufficiently investigated empirically in the literature. The goal of this study is to examine the variables that affect a potential investor's choice to invest in a unit trust. By positing that factors such as risk-taking behaviour, investment revenue, interest rates, prior investing behaviour, age, and income have statistically significant effects on an investor's choice to invest in unit trusts, the paper tries to close this research gap. The empirical study employs a quantitative research methodology, and survey data from 110 participants were selected as a sample using a practical sampling procedure. This cross-sectional study employs primary data for its analysis. Multiple regression analysis has been used in the data analysis. The results of this study will have a significant impact on both investors and financial institutions. This study aids brokers and fund managers in their understanding of how an individual investor reacts to a unit trust.

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