A Study on Role of Financial Literacy in Shaping Investment Behaviour of Middal Income Salaried Employees in Amravati City

ABSTRACT : This study investigates the impact of financial literacy on the investment behaviour of salaried middle-income employees in Amravati city, focusing on their savings patterns, investment choices, and risk management strategies. The research is motivated by the increasing need for financial awareness to ensure informed decision-making and long-term financial security among employees, particularly in semi-urban settings. The main objective is to examine whether financial literacy influences the investment decisions and portfolio diversification of salaried middle-income individuals. A descriptive and analytical research design was employed, collecting primary data through structured questionnaires from 100 respondents and secondary data from journals, reports, and previous studies. Statistical techniques such as frequency and percentage analysis, mean, median, t-test, and correlation analysis were applied to interpret the findings. The results reveal that employees with higher financial literacy exhibit more disciplined savings, higher participation in formal investment avenues, and better risk assessment, whereas limited financial knowledge restricts effective investment diversification. The study concludes that promoting financial education and awareness initiatives can significantly enhance investment behaviour, encourage rational financial decision-making, and support wealth creation among salaried employees in Amravati. Keywords: Financial Literacy; Investment Behaviour; Savings Habits; Risk Management; Portfolio Diversification; Amravati