Financial Literacy and Its Influence on Investment Decisions Among Millennials: A Study of Western Uttar Pradesh
DOI:
https://doi.org/10.53573/rhimrj.2025.v12n8.008Keywords:
Financial Literacy, Investment Decisions, Millennials, Western Uttar Pradesh, Portfolio Diversification, Digital FinanceAbstract
This study investigates the relationship between financial literacy and investment decision-making patterns among millennials in Western Uttar Pradesh. The research examines how financial knowledge, awareness, and skills affect investment choices, risk tolerance, and portfolio diversification strategies among the millennial demographic. Primary data was collected through a structured questionnaire administered to 400 millennials aged 24-39 years across major cities in Western Uttar Pradesh including Ghaziabad, Noida, Greater Noida, Agra, Meerut, Aligarh, Bareilly, Moradabad, Saharanpur, and Muzaffarnagar. Exploratory Factor Analysis was employed to identify key dimensions of financial literacy, while Multiple Regression Analysis examined the relationship between financial literacy components and investment behavior. The findings reveal that financial literacy significantly influences investment decisions, with financial knowledge and digital financial awareness emerging as primary determinants. Millennials with higher financial literacy demonstrate greater propensity toward systematic investment planning, equity investments, and mutual funds compared to those with limited financial knowledge who prefer traditional savings instruments. Demographic variables including education, income, and gender exhibit significant associations with both financial literacy levels and investment preferences. The study provides valuable insights for financial institutions, policymakers, and educational institutions in developing targeted financial literacy programs. This research contributes to understanding generational investment behavior and offers practical implications for enhancing financial inclusion through improved financial education initiatives.
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