Role Of Financial Literacy in Shaping Investment Behaviour among Women in Madurai District

Abstract

Financial literacy plays an important role in enabling women to make informed investment decisions and achieve long-term financial security. The present study examines the role of financial literacy in shaping investment behaviour among women in Madurai District. The study is based on primary and secondary data, with primary data collected from 100 women respondents through a structured questionnaire. The study aims to assess the level of financial literacy among women and examine the association between their socio-economic characteristics and investment behaviour. The collected data were analysed using the Statistical Package for the Social Sciences (SPSS). The Chi-Square test was used to examine the association between socio-economic characteristics and investment behaviour, while mean and standard deviation were used to assess the level of financial literacy. The findings reveal that age, education, occupation, monthly income, and marital status have a significant association with investment behaviour at the 5 per cent level of significance. The overall mean score of financial literacy is 3.57, indicating a moderate level of financial literacy among women. The respondents demonstrate relatively better knowledge of insurance products, savings and investment, and risk and return, while knowledge of shares, mutual funds, and investment diversification requires further improvement. The study concludes that strengthening financial literacy through targeted education, investment guidance, and awareness programmes can help women make more informed investment decisions and enhance their financial independence and long-term financial security.