FACTORS INFLUENCING INVESTORS’ INVESTMENT IN FOREIGN INVESTMENT FUND - THE CASE OF INVESTORS IN BANGKOK METROPOLITAN AREA

Abstract

Since the beginning of 2021, Foreign Investment Fund (FIF) grew by 27.5%, accounting for 20% shares of the Thai mutual fund industry. With the recent shift fueled by investment by retail investors, this research aims to deepen understanding on the factors influencing investment in foreign investment fund (FIF). More specifically, this study examines how fund related qualities, fund sponsor qualities, investor related services and demographic factors influence investors’ investment decision in FIF. Survey questionnaires were conducted among investors in Bangkok Metropolitan area with the target sample size of 267 based on Cochran’s approach. There were 359 usable sets of questionnaires. The majority of respondents was male (55%) in below 30 age group (32.6%) and 31 -40 age group (57.9%), with 6-10 years investment experience (64.6%). Logistic regression was used for quantitative analysis. Results showed that fund related qualities, fund sponsor qualities, investor related services and demographic factors had a statistically significant influence towards investors’ decision in FIF. More specifically, only gender had a statistically significant influence towards FIF investment. In terms of fund characteristics, results showed that fund performance, quality of AMC, and customer support were key influencing factors towards investment in FIF. For practical application, the result of this study provides information for customer targeting and segmentation for investment advisors for promoting Foreign Investment Fund.