Financially illiterate investors face risks in volatile stock market investments.
Financial literacy plays a crucial role in investment decisions. A study conducted in Chennai and Trichy found that most investors are below 40 years old and graduates. Despite entering the market, only half of them have financial literacy. Investors face challenges in choosing investment options, with many preferring shares, banks, and gold. Stock market volatility leads to investors selling stocks and moving to safer investments like real estate and gold. Financial literacy is influenced by information from advertisements, media, friends, and expert advice.