Assessing the effect of financial literacy on investors decisions making

Abstract

Indian economy has made its growth at an accelerating pace over the last decade. The study aims to assess literacy level of investors. The association between demographic, socio-economic profile of investors and their financial literacy level has been studied. The study also finds that whether literacy of investors have any effect on decision making of investors. To see the impact of demographic factors on financial literacy level, regression is performed. The result of the study states that decision of investors is significantly affected by literacy and knowledge of investors regarding financial terms.