Abstract:

In this study, we analyze factors influencing the intention to invest in mutual funds in e-commerce or online marketplace. We built a model based on the trust transfer theory to examine whether perceived similarity with other digital products – such as mobile payment product- affects investor’s trust. This assists in investigating the investor’s intention in mutual funds through an online marketplace using financial literacy as a mediating variable.  Using Likert’ scale to collect data and regression model for the analysis, we collect the sample of 195 Indonesian respondents, familiar with purchasing in the online marketplace.  We found that similarity with other digital products and the inventors’ trust in conventional mutual fund systems influence trust in e-commerce mutual fund and investor’s intention in mutual fund through an online marketplace. However, we found that financial literacy is weak in these relationships.