Impact of financial education on individual investment behavior; An exploration

Financial Liberalization has brought crucial changes in financial scenario all across the globe and major changes are evidenced in developing countries including India. This changes in economic scenario has impacted the lives of individual masses as they have witnessed sudden positive changes in their disposable income. This has created a new platform for researches in the area of behavioral finance and experts from all across the globe had been conducting related studies from various dimensions in order to reach a consensus regarding determinants of investment behavior of individuals. Financial knowledge one have has emerged as one of the important demographic variables affecting investment behavior of individuals, though the studies of various researchers do not show a consensus in this regard.

Researchers like Robert Masters (1989) explored that knowledge of investment is positively correlated to an individual's financial risk tolerance and investment behavior. Considering financial education as a proxy of financial knowledge and drawing a sample from individuals in Indore, this study has attempted to explore the association of investment behavior with financial education. The study revealed that there is no significant association between Financial Education one have and his or her Investment Behavior.