TO STUDY THE RELATIONSHIP OF FINANCIAL LITERACY AND INVESTMENT BEHAVIOUR OF SALARIED CLASS INDIVIDUALS OF DELHI

Financial literacy comprises of skills and knowledge that enables the individual to understand the principles of finance that an individual requires to know to make informed financial choices and decisions and also the financial products that influence the financial well-being of an individual. With the advent of technology and explosion of information it is difficult for an individual to evaluate risk associated with the new genre of financial products. Invariably, bare minimum financial literacy level is must for an individual to understand risk and return related to financial products. The current study attempted to examine the association between financial literacy of salaried individuals of Delhi and their awareness index related to various products of finance. The study also investigated the association between level of financial literacy and salaried individual's investment behaviour. The data was collected through the structured questionnaire from the salaried individuals residing within Delhi, 180 useable questionnaires were received. The data was analysed using SPSS 16, T- test and Chi-square test. The results revealed that salaried individuals level of financial literacy of individuals have effect on their financial products awareness as well as their investment preference. It is recommended to bridge the gap of research studies by including all sections of the society.