A Study on Financial Literacy and Its Impact on Personal Investment Behavior in Amravati City

Financial literacy plays a crucial role in shaping individuals’ financial decisions, particularly in the selection of suitable investment avenues. In an era marked by increasing financial complexity, individuals are exposed to a wide range of financial products such as bank deposits, insurance, mutual funds, shares, and pension schemes. The ability to understand these products and make informed choices depends largely on one’s level of financial literacy. The present study aims to examine the level of financial literacy among individuals in Amravati City and to analyze its impact on their personal investment behaviour. The study is based on primary data collected from 50 respondents through a structured questionnaire and supported by secondary sources such as journals, articles, and reports. The research adopts a descriptive research design and uses percentage analysis for data interpretation. The findings reveal that individuals with higher financial awareness tend to make more diversified and planned investment decisions, whereas individuals with lower literacy prefer traditional and low-risk investment options. The study concludes that financial literacy significantly influences personal investment behaviour and emphasizes the need for targeted financial education initiatives at the local level.