Sustainability Preferences and Financial Decision-Making Among Mutual Fund Investors

Abstract

In our representative sample of Swedish mutual fund investors, those who aresustainability motivated perceive investment choices more difficult than otherinvestors. Of those who are sustainability motivated, 38 percent have neveractively invested in a sustainable fund. Preferences for sustainable investmentas well as the attentiveness of the investment decisions correlate with certaininvestor attributes. Young people and women value sustainability higherthan others and women make their investment choice less attentively thanmen. Investors making the choice inattentively are less influenced by financialinformation. Nudges, such as sustainability labels, may be a more effectiveway of communicating with this group.

Keywords: Nudge, decision-making, sustainable investment, mutual funds