Financial Literacy And The Investor Satisfaction: A Behavioral Study Among The Retail Investors” In Karnataka”

Abstract

Many retail investors in Karnataka are becoming increasingly involved in financial markets and a large proportion are not financially literate. This research investigates the “connection between the level of financial literacy and satisfaction” in the investments of 57 retail investors in the region. With “quantitative and cross-sectional survey design”, “structured questionnaires” were used to collect data analyzed using tools in excel such as “correlation, covariance and t-tests”. The outcomes indicate that the strength of the correlation between investment satisfaction and financial literacy is positive. The higher their level of knowledge, the more confident were the investors and the more informed their decisions. It was prevalent in risk-averse behavior and moderate levels of satisfaction and especially on the people who possessed limited levels of financial awareness. According to the study, it also shows that availability of credible financial services is an issue that worries many investors. These results are consistent with the literature and they show the necessity of specific financial education programs. In general, the study proves that financial literacy should be considered an instrument of substantially improving the satisfaction of the investment and financial well-being of retail investors in Karnataka.