Financial Literacy and Investment Preferences: Analyzing Investor Behavior in the Stock Market

This study looks at financial literacy, investing behaviour, and risk tolerance among Coimbatore Capital investors. A systematic questionnaire was used to obtain data from 100 respondents representing various demographic categories. Descriptive analysis gave information about the respondents' profiles. Key components revealed through factor analysis include guidance seeking, investing commitment, and risk appetite. A two-way ANOVA revealed no significant influence of age or wealth on risk tolerance. Chi-Square testing indicated no significant connections between the category variables. The results imply that behavioural factors have a greater effect on investing decisions than demographic characteristics. The report emphasises the value of financial education and personalised advising services. Limitations include sample size and geographical focus. Future studies might look at digital financial instruments and investment behaviour across larger populations. Key words: Financial Literacy, Investment Behaviour, Risk Management, Investor Psychology,