Investigating Influence of Financial Literacy on Investment Awareness: Mediating Role of Risk Tolerance Mandal Anjali1,*, Kovid Raj K.2, Saxena Ashish3 1Research Scholar, Department of Finance, Sharda University, Greater Noida, Uttar Pradesh, India, (E-mail: anjalimandal@yahoo.com) 2Professor and HOD, Department of General Management, Sharda University, Greater Noida, Uttar Pradesh, India, (E-mail: raj.kovid@sharda.ac.in) 3Assistant Professor, Department of Finance, Sharda University, Greater Noida, Uttar Pradesh, India, (E-mail: ashish.saxena2@sharda.ac.in) *Corresponding author E-mail: anjalimandal@yahoo.com
Online Published on 02 February, 2024. Abstract Like other forms of literacy, financial literacy is also important for a human being. The sooner we get it, the greater the benefit of compound interest. People around the world are increasingly embracing fintech, especially cryptocurrency in the Industry 4.0 era, and financial literacy is like a lamp in our hands to show the path. The present study shows a relationship between financial literacy and investment awareness, with risk tolerance as the mediator between the two among 383 working adults. PLS-SEM is used to analyse the data. Furthermore, as technology has grown, people’s investment confidence and risk tolerance have become increasingly important. Data shows that people’s risk tolerance increases with their financial literacy, as does their investment awareness. This study shows a partial competitive mediation between variables. The findings suggest that increasing people’s financial literacy can increase investment awareness and help them comprehend the risks involved with investment decisions, thereby enhancing financial inclusion. Top Keywords Financial Literacy, Investment Awareness, Risk Tolerance, Fintech, PLS SEM. Top |