Financial Literacy, Investor Awareness and Investment Decisions: A Review of Literature

Full Article - PDF

Published: 2023-01-12

Page: 13-18


Malgit Amos Akims *

Writestep Consulting Limited, Nigeria.

Funmilayo Shalom Abayomi

Writestep Consulting Limited, Nigeria.

Kanang Amos Akims

Writestep Consulting Limited, Nigeria.

Hannington Kigame Avedi

Kenyatta University, Kenya.

Eweet Toto Josephat

Kenyatta University, Kenya.

Cavine Onyango Ouma

Kenyatta University, Kenya.

*Author to whom correspondence should be addressed.


Abstract

The study was based on a review of literature where various views obtained from theoretical and empirical works were evaluated. Based on a systematic review methodology, the study sought to critically review literature on the relationship between financial literacy and investment decisions. The study further reviewed literature on the nexus between investor awareness and investment decisions relationships. In view of reviewed literature, the study documented that financial literacy, investor awareness and investment decisions have underlying relationships. Specifically, financial literacy leads to sound investment decisions as it provides investors with the capacity and ability to carry out both technical and fundamental analysis which in turn enables them to make informed investment decisions. Furthermore, investor awareness strengthens investment decisions. Investor awareness is characterized by an investor’s level of perception of risks, underlying risk appetite as well as expected rate of return on an investment. As such, improvements in the levels of awareness lead to more informed investment decisions.

Keywords: Financial literacy, investor awareness, investment decisions, literature review


How to Cite

Amos Akims, M., Shalom Abayomi, F., Amos Akims, K., Kigame Avedi, H., Toto Josephat, E., & Onyango Ouma, C. (2023). Financial Literacy, Investor Awareness and Investment Decisions: A Review of Literature. Asian Journal of Economics, Finance and Management, 5(1), 13–18. Retrieved from https://globalpresshub.com/index.php/AJEFM/article/view/1752

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