Investment Decision Making and its Influence on Behavioural Factors, Financial Literacy and Socio-Economic Factors

In an era characterized by rapid technological advancements and economic complexities, financial literacy has emerged as a critical skill essential for making informed financial decisions. This research paper delves into the dynamic relationship between financial literacy and the financial decisions undertaken by Generation Z residing in Bangalore, India. Despite the growing importance of financial literacy, there remains a noticeable gap in understanding how Generation Z perceives and engages with financial matters, particularly within the unique socio-economic context of Bangalore. The study aims to bridge this gap by conducting a comprehensive investigation into the factors influencing financial decisions of the respondents. Specifically, the research explores how variables such as educational background, age, and socio-economic status impacts the financial decision-making process of young adults in Bangalore. By analysing these factors, the study seeks to uncover the underlying determinants driving financial behaviours within this demographic group. Furthermore, the research endeavors to assess the level of financial literacy possessed by Generation Z individuals in Bangalore and its correlation with their financial decision-making capabilities. The analysis revealed a statistically significant positive relationship between socioeconomic factors and investment decisions implying that individuals with higher socioeconomic backgrounds are more likely to make investments compared to their counterparts with lower socioeconomic standing. Policymakers, educators, and financial institutions can develop targeted interventions and educational initiatives to enhance financial literacy and empower the studied respondents in making sound financial decisions.