A study of financial literacy investement behaviour and risk attitude of investors in the district of prayagraj uttar pradesh

Abstract

In recent years financial literacy has come under the limelight of the government of many countries, major banking companies and government agencies for the very reason that consumers / investors lack a working knowledge of financial concepts and thus cannot make decisions most advantageous to their financial well-being. These financial literacy deficiencies can be fatal to an individual s or household s money management and long-term savings and investment. Other factors attracting attention towards financial literacy are increased consumer debt levels, low personal savings rate and thus low investments. Data suggests that many consumers are vulnerable to a financial crisis in situations like loss of employment, terminal illness, or economic depression. Financially aware individuals help create a more competitive and more efficient market. newlineConsequently, the country is in need of informed investors unlike wise savers. In this study, while trying to establish whether financial awareness has any role in shaping the attitude of people towards investment, it was found that level of financial literacy possessed by individuals significantly impact the intentions to invest, thus, increasing financial awareness can prove effective in converting savers into investors. It helps in understanding the proper utilization of one s resources, demanding better services and ensure that the individuals to choose the most suitable investment alternative which can beat the rate of inflation prevailing in the economy and give them a net positive return. Financial education would ingrain confidence into the minds of people to properly evaluate decisions about investing their savings in profitable assets, and protect them from the exploitation by the money minting financial institutions or firms. This plays a significant role in the ability of the individual to enjoy a decent standard of living throughout his/her lifespan. Thus, ability to manage money and take effective actions to plan the current and future use of money i.e. financia