FINANCIAL LITERACY AND INVESTMENT BEHAVIOUR AMONG WOMEN EMPLOYEES IN KERALA: THE MEDIATING EFFECT OF FINANCIAL CONFIDENCE

Abstract

Financial literacy plays an important role in helping individuals make informed financial and investment decisions. This study examines the impact of financial literacy on investment behaviour among women employees in Kerala, with financial confidence acting as a mediating variable. The study is based on primary data collected from 210 women employees working in various sectors across Kerala through a structured questionnaire. The collected data were analyzed using SPSS and AMOS software. Structural Equation Modeling (SEM) was employed to examine the relationships among financial literacy, financial confidence, and investment behaviour. The findings revealed that financial literacy has a significant positive influence on both financial confidence and investment behaviour. Financial confidence was also found to significantly affect investment behaviour and partially mediate the relationship between financial literacy and investment behaviour. The study concludes that improving financial literacy and financial confidence can encourage women employees to make better investment decisions and enhance their financial well-being. The findings provide useful insights for policymakers, financial institutions, and employers in promoting financial awareness and investment participation among women.