EVALUATING THE INFLUENCE OF FINANCIAL LITERACY ON THE INVESTMENT CHOICES OF INDIAN INVESTORS

Abstract

This study explores the impact of financial literacy on investment decisions among Indian investors. Based on a survey of 274 participants, the analysis reveals a significant relationship between demographic factors such as age, gender, and occupation, and financial literacy levels. It highlights that individuals with higher financial literacy are more likely to make informed investment decisions. Using Chi-square, ANOVA, and regression analyses, the study confirms that factors like age and occupation influence financial knowledge. Additionally, the research shows a strong connection between financial literacy and investment choices, with higher literacy levels leading to better investment decisions. The study also distinguishes between basic and advanced financial literacy, noting that individuals with higher education and income levels tend to have greater financial understanding. These findings emphasize the need for targeted financial education to enhance financial literacy, empowering Indian investors to make more informed and effective investment decisions.