Abstract:
The objective of this study wa
s to assess the effect of financial literacy, and risk perception on
investment choice.
A quantitative design with a survey as a strategy was adopted, with a sample of
172 respondents. Data was analysed
using one
-
way analysis of Variance (ANOVA) and Multi logistic
regression.
The resul
ts from the ANOVA tests shows
that although the
differences in means were
observed
among investment choses
, they were not statistically significant at 0.05% as the observed
P
-
values were more than 0.05
(
0.847, 0.889 and 0.263
)
,
indicating that
that Risk perception and
financial literacy do not signif
icantly affect investment choice.
Further the findings show that 56%
of
the respondents
chose real estate compared to 44%
who chose financial assets an indication that
individual investors in Zambia prefer real estate to financial assets.
Unlike other stu
dies, this study is
unique in that it included real estate as part of the investment options and found that real assets are
more preferred to financial assets in Zambia
.
