Exploring the Nexus: Financial Literacy, Risk Attitude, and Investment Preferences among Youth in Uttarakhand

Abstract

This study delves into the intricate relationship between financial literacy and risk attitude in shaping the investment preferences of young individuals in India, with a specific focus on the context of Uttarakhand. The primary objective is to unravel the correlation between these two critical factors and their impact on the investment decisions made by young Indians. Employing an exploratory, descriptive, and quantitative research approach, data was collected from a sample of 211 respondents through a questionnaire employing a five-point Likert scale. The collected data was subjected to analysis using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings of this research reveal a notable connection between the risk attitudes of individuals and their investment choices, as well as the level of financial literacy they possess. These results strongly indicate that the investment decisions of the youth in Srinagar Garhwal are significantly influenced by their financial knowledge and their propensity for risk-taking. These outcomes align harmoniously with the findings of previous studies on related subjects. Importantly, this study underscores the imperative of promoting financial literacy among young individuals, emphasizing the vital role it plays in shaping their investment decisions.