A Study on Financial Literacy and Investment Behaviour Among Young Investors

Arun Kumar K , Prof. Ramya H P2

1Student, Department of Management Studies, Dayananda Sagar College of Engineering, Bengaluru

2Assistant Professor, Department of Management Studies, Dayananda Sagar College of Engineering, Bengaluru

Abstract - Financial literacy plays a vital role in influencing the investment behaviour of young investors by enhancing their ability to make informed financial decisions. This study examines the relationship between financial literacy and investment behaviour among young investors, with a focus on key factors such as financial knowledge, risk tolerance, investment awareness, income level, financial goals, digital investment platforms, and social media influence. A descriptive research design was adopted, and primary data were collected from 150 young investors through a structured questionnaire using a five-point Likert scale. The collected data were analysed using descriptive statistics and correlation analysis. The findings indicate that financial literacy significantly influences investment behaviour, with financially literate individuals demonstrating greater confidence in investment decision-making, improved risk assessment, and a stronger preference for diversified investment portfolios. Digital investment platforms and financial awareness also emerged as important factors encouraging investment participation among young investors. The study provides valuable insights for financial institutions, policymakers, and educators to develop effective financial education initiatives that promote informed investment decisions and long-term financial well-being among the younger generation.

Keywords: Financial Literacy, Investment Behaviour, Young Investors, Risk Tolerance, Financial Knowledge, Digital Investment Platforms, Investment Decision-Making.