Investigating The Impact Of Behavioural Biases And Financial Literacy In Financial Decision Making Among Working Women In Mumbai

Abstract

This study examines the nexus between financial literacy, behavioural biases, and investment decision making among 197 working women in Mumbai. Specifically, it explores how financial behaviour & attitude and regret aversion mediate the relationship between financial literacy and investment choices. Results indicate significant impacts of financial behaviour & attitude and investment decision making on the financial choices of participants. Additionally, a positive association is found between financial literacy and both financial behaviour & attitude and investment decision making. However, a noteworthy finding is the negative relationship between financial literacy and regret aversion. Furthermore, the study highlights the detrimental influence of regret aversion on both financial literacy and investment decision making among the participants. These findings underscore the intricate dynamics involved in the decision-making processes of working women regarding investments, emphasizing the crucial mediating role played by behavioural biases. Overall, the research suggests the necessity of addressing behavioural biases alongside enhancing financial literacy to facilitate prudent investment decision making among working women in Mumbai. Such insights hold implications for policymakers, financial educators, and practitioners aiming to foster financial empowerment and well-being among women in the workforce.