Vidya K.
Mutual funds have provided unprecedented opportunities for millions of investors, effectively bringing investment options directly to their doorstep. In India, investors typically seek information that does not offer protection against inflation and frequently results in negative real returns. He perceives himself as an anomaly within the realm of investment. Mutual funds have emerged as a significant resource for these investors. Skilled fund managers and vigilant investors collaborate to make mutual funds successful. In the present context, it is crucial to assess the financial literacy levels of investors and evaluate their investment behaviours. This study seeks to examine the correlation between financial literacy and investment behaviour, specifically in the context of mutual fund investments. This study selected a total of 156 respondents who have invested in mutual funds in Palakkad. The convenience sampling technique was employed for sample selection, and a questionnaire served as the study instrument. The statistical tools employed to accomplish the objectives include Karl Pearson's correlation coefficient and a one-way ANOVA. The study demonstrates a reliability coefficient of 84.6%. Data analysis was conducted using SPSS version 26. The findings indicate a positive correlation between components of financial literacy and investment behaviour in mutual fund investments. Nevertheless, understanding financial concepts is crucial for enhancing investment behaviours in relation to mutual fund investments. The analysis reveals a notable effect of age, education, annual income, and employment status on individuals' investment behaviour toward mutual funds.