A Study on Financial Literacy and Investment Decision of IT Employees

Abstract

Financial literacy is the knowledge and skills required to manage one's financial resources effectively.  Individuals with financial literacy gain the knowledge, skills, and resources they need to make confident financial decisions, manage personal money efficiently, and improve their financial competence. The financial position of a country largely depends on the inflation rate, foreign exchange rate, per capita Gross domestic product, etc. Savings from middle-class households also plays a vital role in improving the financial position of a country as it leads to more investments and capital formation in the economy. The IT sector plays a crucial role in contributing to India's GDP, and the significance of savings and investments in accelerating economic growth and propelling India to greater achievements cannot be overstated. Investment is a key activity performed by individuals to save their earnings from the present consumption to generate wealth. The number of variables will influence investment decisions. In the present scenario, an investor’s behaviour is playing a more significant role in making investment decisions. The research paper focuses on a behavioural dimension i.e. the pattern of investment made by the IT Employees towards selected investment avenues i.e. Equity investments, Mutual funds, Insurance, Provident fund, Term deposits, Postal savings products, Government bonds, Real estate, and Gold etc