Paper Details

Name: Venkatesha Prasanna P K
Country: India

Year: 2025
Volume: Volume-12, Issue-2 (July-December)
Page Number: 489-499
DOI: https://doi.org/10.5281/zenodo.20701087

The present study titled “A Study on Financial Literacy and Investment Behaviour among
Households in Madikeri City of Kodagu District, Karnataka” examines the relationship
between financial literacy and investment behaviour among 60 selected households. The study aims to analyse demographic influences, financial literacy levels, investment
preferences, sources of financial information, and factors affecting investment decisions. Primary data were collected and systematically analyzed using percentage analysis, descriptive statistics, correlation, and one-way ANOVA. The findings reveal that households exhibit a moderate to high level of financial literacy and show a conservative investment pattern, with bank deposits (33.3%) emerging as the most preferred investment avenue. Safety of investment (30%) and high returns (25%) are the key determinants of investment decisions. The majority of respondents invest for future financial security (31.7%) and prefer monthly investment patterns (40%). Banks and financial institutions (30%) serve as the primary source of financial information. The hypothesis testing results indicate that investment behaviour significantly varies across age (F = 5.684, p = 0.006), educational qualification (F = 8.271, p = 0.001), and monthly income groups (F = 9.764, p = 0.000). Further, Pearson correlation analysis reveals a significant positive relationship between financial literacy and investment behaviour (r = 0.579, p < 0.05), indicating that higher financial literacy leads to better investment decisions. The study concludes that financial literacy plays a crucial role in shaping investment behaviour among households. It highlights the need for strengthened financial education programmes, targeted awareness initiatives, and improved financial advisory services to enhance informed investment decision-making and promote financial well-being in the study area.