A Study on Impact of Financial Literacy on Personal Investment Decisions of Individual Investors in Kurnool City

Abstract

The present study has been undertaken to measure the financial literacy level of retail investors of Kurnool. The term financial literacy has evolved over the years and has become a focus area for researchers and policy makers across the globe in the recent years. This study seeks to explore the impact of different demographic factors on financial literacy and also to understand the variation between personal investment decision of the investors of different financial literacy level with respect to short, medium and long term. The data for the purpose of the study has been collected from 100 respondents with the help of a structured questionnaire. The collected data was analyzed with t-test, ANOVA and Friedman Test. The findings of this study indicated that overall, the investors had a medium level of knowledge and skills in financial literacy. Significant difference was observed between financial literacy among various age groups. The study also revealed that investment decisions were related to time period as the preference of investors of same level of financial literacy was different in different time period.