A Kaleidoscopic View on the Impact of Financial Knowledge on Investment Decision of Individual Investors

The study was directed to know the individual investor's behavior with the primary objective of exploring the role of financial knowledge on decisions of investment in the Chennai city of Tamil Nadu. For the purpose of study exploratory research design deployed to get required data by having convenient nonprobability sampling method and analyzed using PSPP Version 1.0.1, and the statistical tools such as descriptive statistics, reverse weighted average mean ranking, factor analysis & multiple regression analysis statistical techniques used to draw significant answers to study objectives. The empirical evidence reveals that the underlying dominant dimensions of financial knowledge variables are grouped into nine dominant factors and investment decision variables are significantly grouped into seven independent factors. Further, the awareness factor has the significant influence on investment decisions of individual investors followed by interest factor, Risk & Return Factor, Portfolio Management Factor, and information factor in their order of influence. This study find that the individual investors are shown positive intend towards the investment decision and need to develop in many aspects related to the enrichment for betterment in their financial knowledge to gain more awareness information before making their investment decisions