Original Research
Determining consumers' intention to use unit trusts
Journal of Economic and Financial Sciences | Vol 9, No 2 | a51 |
DOI: https://doi.org/10.4102/jef.v9i2.51
| © 2017 Chantal Rootman, Janine Krüger
| This work is licensed under CC Attribution 4.0
Submitted: 18 December 2017 | Published: 11 August 2016
Submitted: 18 December 2017 | Published: 11 August 2016
About the author(s)
Chantal Rootman, Department of Business Management, Nelson Mandela Metropolitan University, South AfricaJanine Krüger, Department of Business Management, Nelson Mandela Metropolitan University, South Africa
Full Text:
PDF (229KB)Abstract
The savings rate among South Africans is too low, and increasing the savings rate is critical for the financial wellbeing of citizens and for the country. Many South Africans do not make use of formal savings products, including unit trusts. However, there is a need to increase the use of unit trusts and thus the savings rate, and ultimately the financial wellbeing of consumers. Unit trusts are well-designed savings/investment vehicles, allowing for small investment amounts with affordable cost structures catering for consumers with different risk profiles. Therefore this study will focus on investigating consumers’ perceptions of unit trusts by identifying the factors which influence consumers’ intention to use unit trusts as an investment vehicle. A quantitative study was employed and for the empirical investigation a convenience sample of 509 respondents completed a self-administered, structured questionnaire. The data was quantitatively analysed and the main results showed that the Accessibility and Benefits of unit trusts are the most important factors influencing consumers’ Intention to use unit trusts. The strategies explained in this study may assist financial service providers in encouraging consumers to use unit trusts as an investment vehicle. This may increase the country’s savings rate and ultimately improve the financial wellbeing of South Africans.
Keywords
Unit trusts; accessibility; benefits; cost structures; savings, perceptions, behaviour
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