To Study the Financial Literacy and Its Impact on Investment Decision in South Gujarat Region

Abstract

This comprehensive research explores the influence of financial literacy on investment decisions among individuals across District of South Gujarat Region—Surat, Navsari, Valsad, Tapi, Bharuch & Dang. The region is witnessing a shift in investment behavior due to rising financial awareness, formal education, and economic engagement. This study integrates insights from earlier independent investigations to provide a unified analysis of how financial knowledge, demographic factors, risk tolerance, and investment autonomy affect decision-making. Primary data was collected from over 550 respondents using structured questionnaires, and statistical tools such as t-tests, ANOVA, correlation, and Structural Equation Modeling (SEM) were employed for analysis. The findings reveal that higher financial literacy leads to more diversified and confident investment behavior, while lack of awareness remains a key barrier in rural and semi-urban pockets. Education emerged as a significant predictor of financial literacy. The study emphasizes the importance of tailored financial education to support informed investment choices and foster inclusive financial growth.