2025, Vol. 6, Issue 2, Part V
Impact of financial literacy on investment opportunities for retail investors in Indian stock market
Author(s): Dhananjaya US and Giridhar KV
Abstract: Retail investors are becoming an important part of the Indian stock market, which has grown rapidly in recent years with increasing participation from small and individual investors. However, many of them face challenges because of low financial literacy. This study examines how financial literacy affects investment opportunities for retail investors, with a special focus on Karnataka. The aim is to understand whether knowing basic financial concepts, being aware of risks, and understanding different investment options helps investors make better decisions in the stock market. A survey was conducted among retail investors in Karnataka using a structured questionnaire. The data collected included age, education, income, financial knowledge, and investment choices. Statistical methods are used to find differences between groups and to see how literacy levels influence investment behaviour. The results show that investors with higher financial literacy are more confident in exploring opportunities like equities, mutual funds, and other trading and investment instruments available in the Indian stock market. They are also better at balancing risks and returns. On the other hand, investors with limited knowledge often depend on traditional savings or informal advice, which restricts their access to profitable opportunities. The study highlights the need for financial education programs and supportive policies to improve literacy levels. By focusing on Karnataka, the findings provide region-specific insights that can guide policymakers, educators, and financial institutions in promoting inclusive growth and sustainable investment practices.
DOI: 10.22271/27084515.2025.v6.i2v.934
Pages: 1987-1991 | Views: 107 | Downloads: 47
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How to cite this article:
Dhananjaya US, Giridhar KV. Impact of financial literacy on investment opportunities for retail investors in Indian stock market. Asian J Manage Commerce 2025;6(2):1987-1991. DOI: 10.22271/27084515.2025.v6.i2v.934
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