“Impact of financial literacy and Risk Tolerance on Investment Decision”
Reema Sharma

Dr. Reema Sharma*, Assistant professor, Department of Finance, IMS, Noida, India.
Manuscript received on July 07, 2020. | Revised Manuscript received on July 09, 2020. | Manuscript published on July 15, 2020. | PP: 53-56 | Volume-4 Issue-11, July 2020. | Retrieval Number: K10590741120/2020©BEIESP | DOI: 10.35940/ijmh.K1059.0741120
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: Researcher has followed a widespread approach for explain the relationship between financial literacy, risk tolerance and investment decision. Recently there has been increasing interest in studying the behaviors of investors and the factors which affecting the investment decisions of investors due to a synchronized approached followed by a large number of investors. A Study has been shown that a large number of investors look after the safety of their money not higher return.[1] Investment decision is a crucial decision which is influenced by various factors as financial literacy, income level, financial soundness and various other demographic and sociological factors. The choice of investment alternative of is broadly depends upon the risk tolerance level of investors.[2] On the basis of certain conclusion, cover from precious research, the researcher in this study defines the relationship between financial literacy, risk tolerance and financial decision making of investors through exploratory research tools. For explaining this relationship researcher gives a mediation model. By using this mediation model a direct relationship between Financial Literacy and Risk Tolerance and between Financial Literacy and Investment Decision via Risk Tolerance, can be explored.
Keywords: Financial Literacy, Risk Tolerance, Investment Decision, financial modeling, factors affecting investment decision, investment pattern.