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Abstract
Today’s complex financial service markets offer consumers a vast array of products and services to meet their financial needs. The degree of choice requires that consumers be equipped with the financial knowledge and skills to evaluate the options and identify those that best suit their needs and circumstances. The role of financial literacy with regards to sound personal finance management practice is a question many struggle with. Employees in the IT sector who are having less knowledge about various financial instruments as they comes from non commerce stream. So study on this particular area will gain importance. Convenience sampling method has been used for selecting the respondents for the purpose of the study. The present research paper studied that various factors which were creating risk to the software employees towards investment; those were Availability of less information, multiple investment avenues, Lack of flexibility in time, Service flexibility, Wrong guidance by broker, Delay in returns, No safety, No support by family, Blocking of funds, Fear of Tax, Depending on family members decisions, Difficulty to maintain regular liquidity, Lack of technical knowledge on various investments, Online technical problems, and Non availability of financial services. All these factors were statistically; but factors like Availability of less information, Service flexibility and No support by family were not statistically significant. It is important for every individual to have personal financial plan in order to meet their financial goals and obligation, help to retire in comfort, achieve financial freedom, make rational financial decisions and take advantage of every financial opportunity.