A Study Of Financial Literacy And Investment Behaviour Among Individuals

Abstract

Financial literacy has emerged as a critical factor influencing individuals’ financial decision-making and investment behaviour. This study examines the relationship between financial literacy and investment behaviour among individuals across different demographic backgrounds. Primary data was collected from 250 respondents using a structured questionnaire. Statistical tools such as correlation, regression, ANOVA, and Chi-square tests were applied to analyze the data.
The findings reveal a significant positive relationship between financial literacy and investment behaviour. Individuals with higher financial knowledge tend to make informed investment decisions, diversify their portfolios, and exhibit better risk management practices. However, a considerable proportion of respondents still demonstrate moderate financial literacy, indicating the need for continuous financial education. The study concludes that improving financial literacy can enhance investment participation and overall financial well-being.