Analysis of Islamic Unit Trust Funds Investors in Malaysia using the Kohonen self-organizing maps

Purpose Investor attitudes toward unit trust funds are influenced by various factors related to both investors and funds. This study aims to analyze Muslim investors’ attitudes toward Islamic Unit Trust (IUT) funds in Malaysia, aiming to cluster investors into distinct groups and identify key factors shaping their views on these Shariah-compliant investments. Design/methodology/approach The paper uses the Kohonen self-organizing maps to cluster 540 Malaysian retail investors based on various investors and funds characteristics including risk appetite, religiosity, price sensitivity, fees, Islamic financial literacy and product preferences. Findings The study identifies three distinct groups of IUT investors in Malaysia: affluent investors, price-sensitive investors and skeptical individuals. In addition, age, risk perception, fees and available capital to invest are variables that determine Muslim investors’ attitudes toward IUT funds. Research limitations/implications The survey sample was limited, and a cross-sectional design was used. Therefore, more studies need to be conducted to analyze the dynamic nature of investors’ profiles, and how the clustering evolves with time. Practical implications This research offers valuable insights for fund management companies by revealing Muslim investors’ attitudes, allowing them to tailor investment products and marketing strategies to better match the distinct needs and preferences of various investor segments. Originality/value This study is among the few to apply Kohonen self-organizing maps to analyze Malaysian Muslim investors’ attitudes toward Shariah-compliant investments, integrating performance–risk and religiosity dimensions and offering a novel approach to Muslim investor profiling and targeted marketing.