Factors affecting decision to purchase funds of listed securities companies of customers in Guilin City, Guangxi, China
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Abstract
The objectives of this study were: (1) to examine the behavior, experiences, and motivations of retail investors who decided to purchase mutual funds offered by registered securities companies in China, and (2) to analyze the roles of information perception, product understanding, and influences from media or close associates that affect investment decision-making. A qualitative research approach was employed, utilizing in-depth interviews with 15 retail investors in Guilin, Guangxi Province, selected through purposive sampling. All participants had at least six months of experience investing in mutual funds via digital platforms.
The findings reveal that retail investors tend to select investment products based on convenience and speed, relying more on fund rankings displayed on digital platforms, user reviews, and automated recommendation systems rather than conducting in-depth analyses of official financial documents. Their motivations include the desire to build financial stability, save for future goals, and experiment with investment trends emerging on social media. Several participants also indicated that trust in the platform or advice from close associates significantly influenced their initial investment experiences. The analysis of information perception, product understanding, and social or media influence further shows that investors’ information perception is shaped by digital platforms that present concise, easy-to-understand content that facilitates rapid decision-making. Although many investors possess basic knowledge of risks and fees, most cannot fully explain the underlying fund policies. Moreover, financial experts (KOLs), peers, and close associates play an important role in shaping investment decisions, particularly among young investors who actively follow content on online platforms such as WeChat, Xiaohongshu, and Bilibili.
Overall, the findings indicate that retail investor behavior in the digital era is strongly influenced by simplified information, automated recommendation systems, and trusted social sources rather than personal in-depth analysis. The insights obtained from this study can support the development of more effective communication strategies and marketing tools for securities companies, as well as contribute to designing financial literacy enhancement programs tailored to the needs of young investors.
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References
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