Financial Literacy and Asset Allocation: An Empirical Study of Retail Investors in Delhi-NCR

Abstract

Financial literacy is also an important factor in individual investment options as well as adequate money management. In the purview of Delhi-NCR, a rapidly growing metropolitan region, the importance of financial knowledge is even more because economic possibilities and various investment opportunities have increased. This letter focuses on the relationship between personal investment behavior and financial literacy, keeping in mind the impact of awareness, education and investment scheme strategies in decision making. Using data trends, various asset classes are analyzed to show the effect of literacy on investment behavior. The results throw light on how financially literate people make more suitable, diverse and risk-infected than individuals with poor knowledge.