Abstract
Many financial and psychological factors influence equity investment decisions. The present study examines the influence of Personality, risk attitude, and financial literacy on equity investment intention. Questionnaire responses were collected from Bengaluru investors. The present study uses the Big Five Personality Traits (Extraversion, Agreeableness, Conscientiousness, Neuroticism, and Openness to Experience) to categorise individual behaviour tendencies. Risk attitude is examined as a mediator variable, and financial literacy (Financial Knowledge, Financial Skill, and Financial Attitude) is examined as a moderator variable. The results show that extraversion, conscientiousness, and openness to experience positively affect equity investment intention, and Neuroticism negatively affects equity investment intention. Risk-taking propensity also moderates the personality-investment intention relationship and shows that individuals with high risk-taking propensity invest in equities. Financial literacy also moderates the relationship and implies that financial knowledge and ability are key determinants of investing. These results have policy and practice implications for investment educators, policymakers, and financial planners and indicate the value of investor-specified advice founded on psychological and financial literacy profiles. Financial literacy programs can assist investors in making effective investment decisions and managing risk. This research contributes to the behavioural finance literature by integrating personality psychology and financial literacy as investment decision-making frameworks.
Keywords: Behavioural Finance, Equity Investment Intention, Financial Literacy, Personality Traits, Risk Propensity.