Does the Demographics and Selected Investor Profile Factors Influence Financial Literacy?-An Investor Perception Study

In thisstudy, researcher attempted to identify homogenous clusters within the financial literacy construct which was measured by using two items namely basic financial literacy score and sophisticated financial literacy score. Further, researcher attempted to study the association of the Demographic and selected Investor profile factors withfinancial literacyclusters usingchi square tests. By using the correspondence analysis/crosstabs, researcher tried to gain further insight in to theassociation. Finally by using the canonical correlation, the extent of influence of the Demographic and selected investor profile variables on the financial literacy cluster was studied. The research design adopted in this study was the descriptive research design. By using the Multi stage random sampling technique, the primary data for this study was collected from 470 respondents (investors) in the State of Tamilnadu, India. The outcome of this study confirmed that there exists significant association between all the Demographic and Investor profile variables with the financial literacy cluster except the type of family and occupation. Also the results further brought to light that the variables such as gender, age, religion, community, current grade and monthly income exert significantly strong influence on the financial literacy cluster.