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This study examines the effect of herding behavior and risk aversion on young investors' participation in mutual funds, with fintech as a mediating variable. A quantitative survey was conducted using a questionnaire distributed to 130 young investors aged 30 years or younger who had invested in mutual funds through fintech applications, selected by purposive sampling. The data were analyzed using Partial Least Squares-Structural Equation Modeling (PLS-SEM) with SmartPLS 4. The results show that herding behavior has no significant direct effect on young investors' participation, whereas risk aversion has a positive and significant direct effect. Fintech positively and significantly affects participation and is positively influenced by herding behavior and risk aversion. Fintech fully mediates the effect of herding behavior on participation and partially mediates the effect of risk aversion. These findings indicate that fintech is a mechanism that channels the behavioral tendencies of young investors into actual participation in mutual fund investment.
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Rahma et al. (2026) studied this question.
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