To study the dimensions of financial literacy with reference to investment decision in depth analysis of investors of Ahmedabad city

Abstract

The significance of the financial system cannot be disregarded as it plays a substantial role newlinein facilitating capital development. Sufficient capital formation is a fundamental pillar for newlinethe expansion of an economy, as well as other facets of growth and development. The newlineprimary function of a financial market is to facilitate the efficient allocation of surplus newlinefunds towards productive investments. A developed financial market plays a crucial role newlinein supporting the expansion of the actual economy, leading to the generation of newlineemployment possibilities for the populace. The implementation of a scattered employment newlinedevelopment strategy contributes to the enhancement of income transfer and the promotion newlineof income equalisation. The financial system facilitates the conversion of savings into newlineinvestment. In alternative terms, it might be posited that the financial system exemplifies newlinethe interconnectedness of three fundamental processes inside an economy: savings, newlinefinance, and investment. Savings can be defined as the residual money that remains after newlineall essential expenses have been consumed. Financing refers to the process by which funds newlineare transferred from one financial entity to another, typically involving the conversion of newlinesavings from one form to another. Investment refers to the allocation of resources towards newlinethe creation of tangible or intangible assets with the aim of generating societal benefits. newlineThe benefits of these activities can only be realised when sufficient and suitable resources newlineare employed in a productive manner. This suggests that the rate at which capital is formed newlineis dependent on the efficiency with which various economic activities are conducted. newline