Financial Literacy and Behavioral Biases among Retail Investors: An Empirical Study in Kadapa Region

In today’s complicated world of finance, where complexity abounds and informed decision-making is the key, financial literacy is an important tool for navigating. This study is an attempt to find out the level of financial literacy among investors and the role of financial literacy in financial behavior. It will be helpful in understanding the correlation between knowledge and action. The results show that the investors have good understanding of financial concepts, which means they have a good background in personal finance. An assessment of their financial behaviour indicates favourable results, typified by a modest level of optimism and a willingness to take prudent risks. The study highlights the importance of financial literacy in equipping investors to take an informed decision leading to wise financial decision making hence reducing risk and increasing returns. Moreover, the study highlights the role of financial education in promoting long-term financial stability and security. The study indicates that high levels of financial literacy contribute to prudent decision making which enables an individual to attain his or her long-term financial goals and to deal confidently with the complexities of the present financial environment.