FINANCIAL LITERACY AND INVESTMENT DECISION: THE CASE OF SALARIED FEMALES

With manifold increase in complexities in the financial environment globally coupled with the enhanced availability of products and services have brought alongside significant risks too. It has therefore become imperative for every nation be developed or developing to make its population aware about not only the financial products/services available but also the concepts on which they are based and the intricacies involved thus making them financially literate. Financial literacy has become all the essential for females for they have been regarded as quite vulnerable when it comes to financial matters. The present study encompasses the evaluation of financial literacy with regard to salaried females alongside evaluation its impact on the considerations affecting their investment decisions. The data has been collected using a questionnaire from the 100 salaried females in Ludhiana city. The data has been analyzed using chi-square tests, factor analysis and regression analysis. The overall score for financial literacy has been 59.53 percent being lower than the benchmark OECD (2020) score of 60.48 percent. Regression analysis pointed out the significant of the financial literacy levels on the considerations affecting the investment decision of the respondents. Other key findings included the significant association of socioeconomic demographics variables. The paper contributes to the field by helping understand the intricacies in relation to the female's financial literacy and its implications for investment decision making.