Youth investment behavior in Kerala: An empirical study on preferences, challenges, and influencing factors

This study examines the investment behavior of young individuals in Kerala, focusing on their preferences, influencing factors, and the challenges they encounter. With the growing accessibility of digital financial tools and platforms, youth represent a dynamic and evolving investor segment. Despite the availability of modern investment avenues, the study reveals a strong preference for traditional instruments such as fixed deposits, gold, and government-backed savings schemes, indicating a cautious and risk-averse mindset. A structured questionnaire was administered to 385 respondents aged 18 to 35 years across Kerala. The data was analyzed using descriptive statistics, correlation analysis, factor analysis, and cross-tabulations. The results highlight that financial literacy, social influence, risk perception, and digital exposure significantly affect investment decisions. While digital platforms and social media engagement have created awareness, they have not substantially translated into consistent or diversified investment behavior. Two key factors-financial awareness and social-technological influence-were identified as underlying dimensions of investment behavior. Challenges such as fear of loss, insufficient funds, lack of guidance, and limited knowledge continue to hinder proactive investing among youth. Moreover, the study finds that although financial literacy improves risk appetite, it does not directly lead to higher investment frequency or commitment. The findings underscore the need for targeted financial education, improved digital platform engagement, and personalized financial advisory support. The study provides critical insights for educators, policymakers, and fintech providers aiming to foster informed, confident, and future-ready investors among Kerala's youth.