Awareness and Marketing in Islamic Unit Trust Fund Investment among Muslim Investors

  • Mohd ‘Adli Zahri, Shinta Melzatia, Mahroji, Mutiara Dwi Sari, Salimah Yahaya

Abstract

Investment in the Islamic Unit Trust Fund (IUTF) grew steadily from 2014 to 2018, with the IUTF controlling 66.9% (RM343.9 billion) in terms of investment units and 87.6% (RM332.8 billion) in terms of the total net asset value of the overall Unit Trust Fund (UTF) in Malaysia.This study aims to analyse whether investor awareness or operator marketing affects IUTF investment selection. Data was collected from 300 respondents, all of them UITF investors, and analysed using the Partial Least Squares structural equation model technique. The results indicated that the awareness factor has an influence in the selection of IUTF investments and that it also has influence when the factor of religiosityis a mediator. The marketing findings show that marketing has an influence in the selection of IUTF investments but not througas a mediator. Muslim investors have a high level of religiosity and this influences IUTF investment decision making. The implications of these findings are explored in this paper.

Published
2020-06-05