Seminar: Navigating the Green Maze: How the Multifaceted Impact of Literacy Shapes Consumers’ Understanding of Sustainable Mutual Funds

SFL is hosting a seminar lead by PhD Student Ida Ayu Agung Faradynawati (KTH) Nov 15 on the topic of: ‘Navigating the Green Maze: How the Multifaceted Impact of Literacy Shapes Consumers’ Understanding of Sustainable Mutual Funds’.
Maze detail in a forest, game and fun

Date: 15 November
Time: 09.00-10.00
Venue: Zoom
Register here: https://lnkd.in/dx—VBv

To facilitate investors in making informed sustainable investment choices, the European Sustainable Finance Disclosure Regulation (SFDR) has introduced a labeling system on mutual fund information documents based on their sustainability levels. Mutual funds with a higher degree of sustainability are categorized as “dark green funds,” while those with lower sustainability levels are designated as “light green funds” (EU Regulation 2022/1288, 2022). However, information dissemination through disclosures or labels represents just one facet of the complex financial decision-making process. Consumers must possess an understanding of the specific information they require and have the ability to process this information in accordance with their individual circumstances and preferences when selecting financial products.

The primary objective of this research is to¬†investigate the interplay between financial literacy, sustainability knowledge, knowledge of sustainable finance, and investors’ comprehension of the information presented in sustainable mutual funds. We conducted an online survey involving 504 Swedish investors who are actively engaged in sustainable investments. Data analysis was conducted using multinomial regression analysis. Our findings reveal that only objective financial literacy significantly contributes to achieving a moderate understanding of mutual funds. However, to attain a high level of comprehension, both objective financial literacy and objective sustainable finance literacy are essential. Additionally, our research indicates that younger investors generally exhibit a more comprehensive understanding across various types of mutual funds.

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