Financial Literacy, Investor Awareness and Investment Decisions: A Review of Literature
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: Comet, Financial literacy, DNA, investor awareness, Sperm and Boar, investment decisions, literature review