Paper Details

Name: Venugopal H S
Country: India

Year: 2026
Volume: Volume No: 13, Issue: 1, Year: 2026
Page Number: 355-363
DOI: https://doi.org/10.5281/zenodo.22091986

ABSTRACT
Financial literacy has become increasingly important in enabling individuals to make informed and effective investment decisions in a rapidly evolving financial environment. Young investors require adequate financial knowledge to evaluate investment alternatives, manage risks, and develop systematic investment practices. Understanding the influence of financial literacy on investment behaviour is therefore essential for promoting informed and financially sustainable investment decisions. This study examines the influence of financial literacy on investment behaviour and decision-making among young investors in Kodagu District, Karnataka. The study aims to assess the level of financial literacy and examine its influence on investment behaviour and investment decision-making, while also analysing the effect of selected socio-economic factors, particularly educational qualification and monthly income. The study is based on both primary and secondary data. Primary data were collected from 60 young investors through a structured questionnaire, while secondary data were obtained from books, journals, research studies, institutional reports, and relevant publications. Descriptive statistics, Pearson correlation, and Two-Way ANOVA were employed for data analysis. The findings reveal a strong positive and statistically significant relationship between financial literacy and investment behaviour (r = 0.819, p < 0.001). The Two-Way ANOVA results further indicate that educational qualification (F = 54.985, p < 0.001) and monthly income (F = 16.584, p < 0.001) significantly influence investment behaviour. However, the interaction effect between education and income is not statistically significant (F = 0.477, p = 0.822). The study concludes that financial literacy plays an important role in improving investment behaviour and informed decision-making among young investors. Strengthening financial education and providing accessible investment guidance can contribute to more systematic, diversified, and informed investment practices among young investors in Kodagu District.

Keywords: Financial Literacy; Investment Behaviour; Investment Decision-Making; Young Investors.