Authors: Saahil Rohira, Abhijeet Bharati
Abstract: Financial literacy has emerged as an important factor influencing the financial decision- making and investment behaviour of individuals in the modern economy. Salaried employees, in particular, face increasing financial responsibilities such as savings management, investment planning, retirement preparation, and wealth creation. In this context, understanding financial concepts and applying them effectively has become essential for achieving long-term financial security. The present study examines the level of financial literacy among salaried employees and analyzes its impact on their investment behaviour. The study focuses on various aspects of financial literacy such as budgeting habits, understanding of inflation, interest rates, diversification, and risk-return analysis. It also examines investment preferences, risk tolerance, investment objectives, diversification practices, and factors influencing investment decisions. Primary data for the study was collected through a structured questionnaire distributed among salaried employees. Secondary data was collected from journals, books, reports, and online sources related to financial literacy and investment behaviour. The findings of the study reveal that salaried employees possess a moderate level of financial literacy. While many respondents are aware of basic financial concepts, consistent practical application of financial knowledge is limited. The study also indicates that financial literacy significantly influences investment behaviour, particularly in terms of diversification and investment planning. Respondents with better financial understanding tend to make more informed and diversified investment decisions. However, lack of knowledge, fear of loss, insufficient funds, and limited time remain major challenges faced by respondents while investing. The study concludes that improving financial literacy can enhance the quality of investment decisions and promote better financial stability among salaried employees. The findings provide useful insights for financial institutions, policymakers, employers, and researchers to design effective financial education initiatives and encourage responsible investment behaviour.
DOI: http://doi.org/10.5281/zenodo.20573299
