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Abstract

Purpose – This study examines the impact of financial literacy and technological advancements on young investors’ investment intentions in the Sharia capital market. It also investigates the mediating impact of risk tolerance and moderating influence of income levels.
Methodology – This study employs a quantitative methodology utilizing structural equation modeling with partial least squares (SEM-PLS). Data were gathered via an online questionnaire aimed at Muslim investors aged 18 to 40 years with expertise in Indonesia’s Sharia capital market. A five-point Likert scale was used to assess these factors. A total of 204 valid replies were examined using SmartPLS 4.
Findings – The findings reveal that both financial literacy and technological advances have significant positive effects on investment intention. Technological advances also significantly increase risk tolerance, whereas financial literacy does not. Risk tolerance neither significantly predicts investment intention, nor mediates the effects of financial literacy or technology. Income level negatively moderates the relationship between financial literacy and investment intention as well as between technological advances and risk tolerance. No significant moderating effects of income were found in other relationships.
Implications – This study provides valuable insights for financial institutions and policymakers aiming to enhance participation in the Sharia capital market through financial literacy programs and user-friendly digital investment platforms.
Originality – This study contributes to the growing literature on Islamic finance by incorporating a behavioral model that includes both mediation and moderation effects, focusing specifically on millennials and Gen Z Muslim investors in a Sharia-compliant investment setting.

Keywords

Sharia Capital Market Islamic Financial Literacy Investment Intention Young Muslim Investors

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Copyright (c) 2026 Marina Oktari, Ririn Tri Ratnasari, Sulistya Rusgianto

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How to Cite
Oktari, M., Ratnasari, R. T., & Rusgianto, S. (2026). Financial literacy and tech advances on Sharia investment intentions. Jurnal Ekonomi & Keuangan Islam, 12(2), 323–340. https://doi.org/10.20885/JEKI.vol12.iss2.art7
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