The perception of the modern financial instruments by the classical investor

This study investigates classical investors' perceptions of modern financial instruments in Saudi Arabia, focusing specifically on exchange-traded funds (ETFs), derivatives, real estate investment trusts (REITs), and cryptocurrencies. Employing a mixed- methods research design, both qualitative and quantitative data were collected through structured questionnaires distributed among Saudi classical investors, traditionally inclined towards tangible assets and fixed-income investments due to cultural preferences and risk aversion. The analysis highlights how behavioral finance factors— including overconfidence, disposition effect, blue-chip bias, and herding—affect investor perceptions and decision-making processes. Additionally, the research explores the critical role of financial literacy in shaping attitudes toward modern financial products. Findings indicate that limited financial literacy and strong cognitive biases present significant barriers to adopting new financial instruments. This study recommends targeted financial education initiatives and strategic policy adjustments to enhance investors' understanding and acceptance of innovative financial products, aligning with the objectives of Saudi Arabia's Vision 2030.