Authors: Arju Anilkumar Chaudhari, Prof. Neelam Patil
Abstract: Financial literacy has emerged as a critical factor influencing the financial well-being and investment behavior of individuals in today's complex financial environment. This study examines the level of financial literacy among individual investors and analyzes its impact on their investment decisions. The research explores how knowledge of financial concepts such as savings, budgeting, risk management, diversification, and investment instruments affects investors' ability to make informed financial choices. Data are collected from individual investors through a structured questionnaire and analyzed using appropriate statistical techniques. The findings indicate that financially literate investors are more likely to evaluate risks effectively, diversify their portfolios, and select investment options that align with their financial goals. In contrast, individuals with lower financial literacy tend to rely on informal sources of information and are more susceptible to poor investment decisions. The study highlights the importance of financial education in enhancing investment awareness and promoting sound financial decision-making. The results provide valuable insights for policymakers, financial institutions, and educators in developing programs aimed at improving financial literacy and fostering greater participation in financial markets.
DOI: http://doi.org/10.5281/zenodo.20771457
