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A Case Study On Investors’ Financial Literacy In Indian Scenario

Author

Listed:
  • K. Senthil KUMAR
  • C. VIJAYABANU
  • R. AMUDHA

Abstract

Financial literacy is the ability of the individual to make appropriate financial decisions personally. The ability includes understanding the financial products, financial concepts, discussing the financial problems, making choices between managing, spending and saving money and responding to the current reforms in financial market. With the increased risk of global markets and introduction of more innovative financial products, investors are required to make well informed decisions with their money. So, financial Literacy had gained its importance across the globe. The objective of the study is to analyse the influence of the financial literacy level on individual investment decisions. A sample of 469 investors from Tiruchirapalli was selected by way of stratified random sampling method. The primary data collected were analysed with the help of percentage analysis and chi-square test using MS Excel. The result shows that except the gender, there are relationships between the socio-economic factors and the level of financial literacy possessed by the respondents. Following the age and health, responsibilities come as a third factor, which is clubbed with the family commitments. This clearly states that our Indian society is always built based on love and affection bound with generations.

Suggested Citation

  • K. Senthil KUMAR & C. VIJAYABANU & R. AMUDHA, 2012. "A Case Study On Investors’ Financial Literacy In Indian Scenario," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 7(3(21)/ Fa), pages 262-269.
  • Handle: RePEc:ush:jaessh:v:7:y:2012:i:3(21)_fall2012:p:262
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    References listed on IDEAS

    as
    1. Sergey SVESHNIKOV & Victor BOCHARNIKOV, 2009. "Eforecasting Financial Indexes With Model Of Composite Events Influence," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 4(3(9)_Fall).
    2. van Rooij, Maarten & Lusardi, Annamaria & Alessie, Rob, 2011. "Financial literacy and stock market participation," Journal of Financial Economics, Elsevier, vol. 101(2), pages 449-472, August.
    3. Christelis, Dimitris & Jappelli, Tullio & Padula, Mario, 2010. "Cognitive abilities and portfolio choice," European Economic Review, Elsevier, vol. 54(1), pages 18-38, January.
    4. Rosen, H.S.Harvey S. & Wu, Stephen, 2004. "Portfolio choice and health status," Journal of Financial Economics, Elsevier, vol. 72(3), pages 457-484, June.
    5. Laura UNGUREANU & Viorel MATEI, 2008. "Advances In Decision Analysis. Efficient Methods In Finance," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(4(6)_Wint).
    6. Marianne A. Hilgert & Jeanne M. Hogarth & Sondra G. Beverly, 2003. "Household financial management: the connection between knowledge and behavior," Federal Reserve Bulletin, Board of Governors of the Federal Reserve System (U.S.), issue Jul, pages 309-322.
    7. Marek SPIÅ Ã K & Roman Å PERKA, 2011. "Financial Market Simulation Based On Intelligent Agents €“ Case Study," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 6(3(17)/ Fa), pages 249-256.
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    More about this item

    Keywords

    Financial literacy; financial objectives; investment avenues and investment decisions;

    JEL classification:

    • G02 - Financial Economics - - General - - - Behavioral Finance: Underlying Principles

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