The Impact of Financial Literacy and Risk Tolerance on Investment Decisions: An Analysis of Gender Differences

Abstract

This study examines the impact of financial literacy and risk tolerance on investment decisions made by men and women. It explores the role of risk tolerance as a mediator in relation to financial literacy and individual investment decisions. The survey data collection was performed on 233 respondents 111 females and 122 males with a self-administered questionnaire. This research represents the fact that financial literacy has a positive and significant relationship with risk tolerance, and investment decisions are strongly influenced by it. Risk tolerance has a positive and insignificant impact on investment decisions. The results indicate that gender differences in financial risk tolerance are explained by gender differences in the individual determinants of financial risk tolerance. Financial literacy can also help in achieving success, and it is fruitful in providing profitable plans for people