Author(s) :   Neeraj¹, Prof. Sanjay Kumar Sinha²

Abstract:
Purpose – The purpose of this research is to gather and analyse articles on behavioural biases and their impact on investing decisions.
Design – A sample of 67 research papers were selected to obtain an ideal findings related to the effects of financial literacy on investment decisions. The research design was based on tabular description and comparison.
Findings – The findings suggest that having financial literacy directly helps in making justified decisions in terms of investments and portfolio diversification. The findings also suggests that individual investors generally copies large investors and fund managers which makes them vulnerable at times as they have highlight qualified teams for research and they can exit whenever they want from an investment but individuals make get stuck.
Value – Previous financial research has focused on the relationship between financial literacy and portfolio diversification and investment decisions. In addition, they discovered that several factors influence how individual investors handle their funds. In these researches, however, the crucial connection between financial literacy and the behavioural biases of individual investors and other associated aspects has not been highlighted. Due to this, the unique empirical research provided in this paper has demonstrated how financial literacy may aid in reducing investor behavioural biases.

Keywords: Investment behaviour, financial literacy, portfolio diversification, knowledge, education.

DOI : 10.61161/ijarcsms.v12i3.4

Pages : 26-32

*Authors are invited to submit papers through E-mail at editor.ijarcsms@gmail.com