Area of Research

Submitted by:

ABDUL SAQIB MMS173047

Submitted to:

Sir, S.M.M. Raza Naqvi

 Emerging financial markets, Financial literacy and investment
decisions

Over the recent years, financial landscape has been continuously changing with the introduction

of new financial products in the emerging financial markets. it is difficult for a common man to

understand these financial products and the risks and rewards associated to such financial products.

Thus, for understanding such risks and rewards associated to the financial products minimum level

of financial literacy and awareness of such financial products is must. The financially literate

individual analyzes risks and rewards of financial products and make rational decisions. Further,

the Pakistani financial market is underdeveloped so there is more possibility that the illiterate

investors may be cheated by the sales persons of financial products. Low levels of financial literate

people face problems with issues relating to personal finance such as savings, borrowings,

investments, retirement planning etc. Financial education increases people awareness and

understanding of financial products and associated risks and rewards. Thereafter, the current

research will focus on how salaried individual make their retirement, insurance and saving plans

on the basis of their awareness level and financial literacy. Basically, women are more conservative

than men while investing and are risk avoiders. The current study will further check the association

of financial literacy with investment behavior of salaried individuals. As we mentioned Pakistani

financial market is not efficient thus what procedures and techniques could be used to improve

financial literacy that contribute to rational financial decisions.