EVALUATING LEVEL OF FINANCIAL AWARENESS OF INDIVIDUALS

Financial Awareness is very important to enable any individual to plan out his/her sources, manage future expenses and plan out for various types of emergencies. There are various instruments available in the financial markets for the purpose of investment. It is the prerogative of the investor to a...

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Bibliographic Details
Published in:BVIMSR’s Journal of Management Research 2023-10, Vol.15 (2), p.109-119
Main Authors: Mandal, Chanchai, Riyat, Sonia
Format: Article
Language:English
Subjects:
Compound interest
Debt management
Decision making
Financial instruments
Financial literacy
Investment policy
Investors
Knowledge
Life insurance
Portfolio management
Post offices
Securities markets
Self awareness
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Summary:Financial Awareness is very important to enable any individual to plan out his/her sources, manage future expenses and plan out for various types of emergencies. There are various instruments available in the financial markets for the purpose of investment. It is the prerogative of the investor to assess and understand the suitability of each financial instruments as per their needs. To understand the level of financial awareness of respondents, a questionnaire based survey was carried out amongst undergraduate students, businessmen and professionals. A total of 107 responses were collected online from respondents who reside in various places within the country. On the basis of literature review, it has been ascertained that individual financial behaviour gets affected by factors like age, gender, educational qualification, level of financial knowledge, financial goals, pattern of savings and consumption, influence of friends and relatives, etc. The various studies indicated that self-awareness of respondents about the various financial products leads to better investment decisions. This research paper focuses to identify, understand and gauge the level of financial awareness of individual investors. Chi square test of independence and Spearman's Rank Correlation has been applied to ascertain the level of significance of the chosen variables on the responses. The final results of the test indicate that there exists a significant relationship amongst the chosen variables and the findings also do reveal that government's intervention is required to boost up financial awareness of individuals helping to guide them in improving their knowledge of financial products, choose suitable products and build their investment portfolio.
ISSN:0976-4739