Financial Literacy of investors and its relation with Demographic Variables

Abstract

With the widespread increase in the financial inclusion drives throughout the world shows sufficient evidence that without proper financial literacy financial inclusion cannot be attained completely. In the financial economy there are so many instruments and each of having different advantages. The objective of the research paper is to find out the financial literacy level of retail investors of Gurugram and also check the relationship of demographic variables and financial literacy. The paper represents the overview of the relationship among financial literacy and the demographic variables. This paper mainly considered primary data to achieve the objectives but with that secondary data is also used. It has been found that the level of financial literacy is below the level required in the people to invest it as manifest from different studies. So, there is a need of some policy actions to be taken for strong the financial literacy so that people can make wisely decision to save and invest it in profitable investment alternatives. To find out the result descriptive statistics tool such as frequency, Crosstabs, compare means and one way ANOVA is used through SPSS to check the relationship between financial literacy level and demographic variables. This research paper is deliberated as the first of its kind conducted in Gurugram. The city Gurugram presently the millennium city and true representative of diversity of India is chosen to conduct the survey. From this study it was found that the financial literacy level of retail investors is still very low as per the requirement of the economy and some of the demographic variables have a relationship with financial literacy level.