Financial Literacy & its impact on Investment Behaviour for Effective Financial Planning

The purpose of this research paper is to understand & study the financial literacy & its impact on investors for effective financial planning for future.

Descriptive & causal research having 150 MCD school teachers as respondents for the study. The data was analysed using the descriptive statistics, rank order & chi square test to check the impact of certain key attributes of financial literacy & investment behaviour.

Key finding that emerged highly relevant includes the impact of awareness for financial investment instruments based on level of knowledge, level of interest, level of commitment which plays a very crucial role for making an investment decision for a particular financial instrument.

This study covers only a limited segment of investors i.e. MCD school teachers, further advancement in the study can be carried out with different segments of investors.

Financial market companies can work upon to create awareness related to technical details of various financial instruments so that the enhanced literacy level leads to better understanding of financial instruments as per financial goal of each investor.

The study is descriptive in nature to analyse the impact of financial literacy & investment behaviour for pre-purchase decision-making attributes which triggers the complex buying behaviour financial investment instruments associated with financial planning process.