Beyond Intentions: The Role of Past Investment Behaviors in Driving Mutual Fund Investments and Risk Tolerance.

Habits, Behavioral intentions, Investing behaviour, Dual-process theory, Emerging economy, Risk perception

This study examines how habitual investing patterns and behavioral intentions jointly shape mutual fund investment behaviour in an emerging economy. Drawing on dual-process theory, it benchmarks the influence of reflective (intentional) and impulsive (habitual) systems, addressing the intention–behaviour gap in retail investing.Data were collected from 423 mutual fund investors in India through a structured survey. Partial Least Squares Structural Equation Modelling (PLS-SEM) analysed the effects of habit strength, intentions, risk perception, perceived behavioural control, financial goals and technology-related factors, with emphasis on the habit–intention interaction.Habit strength was a strong predictor of investing behaviour, reducing reliance on intentions and narrowing the intention–behaviour gap. Strong habits enhanced perceived behavioural control, lowered risk perception and positively moderated the influence of financial goals—including retirement planning, asset acquisition and emergency fund preparation—on investing behaviour. Technology-related factors showed only partial indirect effects through habit formation.