An Analysis Of Financial Literacy And Risk Perception On Investment Behaviour Among Investors In Cuddalore District, Tamil Nadu

S. Ranjani; Dr.J. Birabakaran

doi:10.69980/redvet.v25i1.2430

S. Ranjani
Dr.J. Birabakaran

DOI: https://doi.org/10.69980/redvet.v25i1.2430

Keywords: Financial Literacy, Risk Perception, Investment Behaviour, Risk Tolerance, Investment Preference, Cuddalore District.

Abstract

Financial literacy has become an essential factor influencing individuals’ investment decisions in the modern financial environment. Investors are increasingly exposed to a wide range of financial products, making it necessary to possess adequate knowledge and understanding of financial concepts. This study examines the influence of financial literacy on investment behaviour among investors in Cuddalore District, Tamil Nadu, with a focus on the mediating role of risk perception. The study considers financial literacy and knowledge of financial concepts as independent variables, risk perception and risk tolerance as mediating variables, and investment behaviour and investment preference as dependent variables. Primary data were collected from investors using a structured questionnaire based on a five-point Likert scale. Statistical tools such as descriptive analysis, correlation, and regression were used to analyze the data. The findings reveal that financial literacy significantly influences investors’ behaviour and preferences, while risk perception plays an important mediating role in shaping investment decisions. Investors with higher financial literacy demonstrate better investment behaviour and make more informed decisions. The study highlights the importance of improving financial literacy among investors to enhance effective investment decision-making. The study provides valuable insights for policymakers, financial institutions, and investors in designing strategies to improve financial awareness and promote better investment practices.

Author Biographies

S. Ranjani

Roll no: 2011130022Ph.D Research Scholar, Department of Business Administration, Annamalai University,

Dr.J. Birabakaran

Assistant Professor, Research Supervisor, Department of Business Administration, Annamalai University,

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