The Effect of Financial Literacy, Herding Behaviour and Overconfidence on Investment Decisions in the Millennial Generation

This study aims to examine and analyze the influence of financial literacy, herding behaviour, and overconfidence on the investment decisions of the millennial generation in Mataram. A total of 100 millennial investors in Mataram City became respondents in this study. Structural Equation Modeling using intelligent PLS software was used in this study to analyze the data. The study's results prove that financial literacy and overconfidence have a positive and significant effect on the investment decisions of the millennial generation.In contrast, herding behaviour does not have a positive and considerable influence on the investment decisions of the millennial generation. The results of this study indicate that in addition to investors having good financial literacy, investors can also behave biased in capturing investment decisions, such as being too confident in their information. Excessive trust in investors can make investors wrong in analyzing, impacting lousy investment decisions