Investigation on financial literacy and Investment Behavior Among Investors: A Case Study of Temeke District, Dar es Salaam Region, Tanzania

By giving people and companies’ access to finance, risk management, and financial products, financial services play a critical role in promoting economic growth. In this regard, comprehension of the necessity and knowledge of financial literacy is crucial for the expansion of the financial industry. The descriptive research study presented in this article aims to comprehend financial literacy and how it affects investors' investing decisions. The purpose of this study is to examine the relationship between investors' financial literacy and how it affects their investing patterns and degree of investment happiness. The study used convenience sampling technique to gather primary data through a structured questionnaire given to 390 respondents from Temeke District, Dar es Salaam region, Tanzania. The association between investment preference and financial literacy was investigated using the chi-square test. The study findings indicated that people's financial literacy is quite low. With the exception of government bonds, financial literacy has no effect on people's preferences for different investment routes. The respondents' degree of financial awareness has a major impact on their preference for government bonds. Additionally, similar investment options are preferred by members of both high and poor financial literacy groups. They don't invest much in sophisticated financial goods, which might yield larger returns but are generally riskier. Instead, they prefer to invest in conventional and secure financial products. These findings demonstrate the necessity of financial education initiatives that concentrate on enhancing investment knowledge and abilities in order to support wise investment choices.