FINANCIAL ANTECEDENTS AND RETAIL INVESTORS INTENTION TOWARDS EXCHANGE TRADED FUNDS: AN EMPIRICAL INVESTIGATION FROM INDIA

Abstract

Exchange-Traded Funds (ETFs) have become an increasingly attractive investment option for retail investors in India; however, retail participation remains comparatively low. This study examines whether advertisement informativeness, involvement, credibility, and truthfulness influence investors' intention towards ETFs. Data were collected from 507 retail investors using a structured questionnaire. Reliability was assessed through Cronbach's alpha, and the proposed relationships were analysed using Pearson correlation, multiple regression, hierarchical regression, and Importance–Performance Map Analysis (IPMA). Based on the results, each of the four main categories of advertisement antecedents has an overall positive effect on the intention to invest. Of these antecedents, informativeness has the greatest influence on investment intention, followed by truthfulness, credibility and involvement. The model accounted for 60.4% of the variance in intention to invest. In addition, results from hierarchical regression analyses indicated that factors related to advertisement had greater explanatory power for investment intentions than demographic factors. IPMA identified informativeness and truthfulness as priority areas for improvement. The findings provide useful insights for asset management companies seeking to design more informative, credible, and transparent ETF advertisements.