Financial Literacy And Risk Tolerance In Investment Decisions Of Working Professionals In J&K Ut

Abstract

Financial literacy aids in making appropriate recommendation regarding financial services. Financial literacy is a very vital factor which has been sketched back in the past to device the speculation process. Financial literacy is significant for making effective investment for economic growth of an individual and country. Financial risk tolerance could be described by persons’ willingness towards taking risks while making an investment or monetary assessment. Financial risk tolerance is the phase of one's readiness to agree hazards from savings. It also denotes the approach an individual reacts to and proceeds act about hazards in a deal. It is absolutely promising for depositors to alike risk, evade risk, or do not even overhaul about the threat. Hence, the current study focused on evaluating between financial behavior due to financial literacy and financial risk tolerance. The study also analyzed the impact of risk tolerance on investment decision of working population in Jammu Kashmir, Union Territory. The study employed quantitative and qualitative method to gather data from working population. The study congregated data from working population in JK, UT. For qualitative analysis, the current study congregated data through interview whereas for quantitative analysis, structured questionnaire has been employed. The study utilized SPSS software to analyze the congregated data. ANOVA and Regression analysis have been employed to analyze the accumulated data. The outcome of the study illustrates that financial behavior impacts the risk tolerance level of working population. Meanwhile, risk tolerance level affects the investment decision of working population. Hence, the study concludes financial behavior is significant for the managing risk tolerance level and also to make effective investment decision.