A Study on Financial Literacy: Understanding Investors Sentiment and Behavioural Biases of Investors

Author Reg. ID: TIJER_151629

Published Paper Id: TIJER2403098

Published In: Volume 11 Issue 3, March-2024

DOI: http://doi.one/10.1729/Journal.38583

Abstract: Financial literacy in India remains significantly lower compared to the general literacy rate, with only 27% of the population considered financially literate. This study endeavours to examine the unique challenges faced by individuals in India regarding financial literacy and compares societal perceptions and behaviours with those in other countries. In India, individuals often rely on informal sources for financial assistance, such as borrowing from peers and friends, due to factors like limited banking infrastructure, complex documentation procedures for loans, and insufficient awareness of government schemes for small-scale businesses. The objective of this systematic review is to analyse fifty research papers from reputable national and international academic journals focusing on financial literacy. Specifically, the study examines how knowledge, attitude, investor sentiment, and behavioural biases influence individuals' investment decision-making processes. A bibliometric analysis has been conducted on another to summarize key findings, methodologies, journal sources, countries of origin, and publication years of the reviewed articles. Of the fifty articles reviewed, seventeen originate from India, while the rest represent various countries. Commonly employed methodologies include ANOVA, Partial Least Square Structural Equation Method (PLS-SEM), Exploratory Factor Analysis, Confirmatory Factor Analysis, and Multivariate Regression Analysis. However, it's important to note the limitations of this study, such as the restricted scope of only reviewing fifty articles due to time constraints. This systematic review sheds light on the complexities of financial literacy and its implications for investment decision-making, particularly in the Indian context. By synthesizing existing research findings, this study contributes to a deeper understanding of financial behaviours and paves the way for future research and policy interventions aimed at enhancing financial literacy and decision-making capabilities among individuals.

Keywords: Financial literacy, investor sentiment, behavioural biases

Downloads: 00071

Page No: a713-a728

Country: Kolkata, West Bengal, India

Research Area: Commerce All

Published Paper URL: https://tijer.org/TIJER/viewpaperforall?paper=TIJER2403098

Published Paper PDF: https://tijer.org/TIJER/papers/TIJER2403098

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