Analysis of Factors Influencing Investment Decisions of Gen Z Investors

Abstract

Generation Z's interest in investing in Indonesia has increased with the development of digital platforms and easier access to financial information. Meanwhile, their investment decisions are heavily influenced by social media content, communities, and various psychological biases, so they do not always align with the rational investor assumptions of classical financial theory. This article aims to analyze the factors influencing Gen Z investors' investment decisions through a qualitative approach using a literature review method. Relevant scholarly articles on financial literacy, financial behavior, behavioral finance, and the influence of social media on young investors were reviewed and synthesized thematically. Good financial literacy and financial behavior are generally associated with better investment decision quality. However, psychological factors such as cognitive biases and social pressures still play a significant role, especially when individuals are dealing with high-risk investment instruments. These findings indicate that financial literacy programs should not only focus on improving financial knowledge but also on developing wise decision-making skills and raising awareness of various biases that can influence individual judgment. Furthermore, digital investment service providers need to develop platforms that are more educational, transparent, and tailored to the characteristics of Generation Z to ensure a healthier and more responsible investment process.