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@article{194150,
        author = {Prachi Rajpoot and Dr Arun Bhadauria},
        title = {Impact of Financial Literacy on Investment Decision},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {10},
        pages = {2841-2848},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=194150},
        abstract = {The present study investigates how financial literacy influences the investment decisions of individual investors. In today’s dynamic financial environment, individuals are required to independently navigate a wide range of complex financial instruments and investment opportunities. Financial literacy encompasses understanding fundamental financial concepts, evaluating risk effectively, and being aware of various investment options. This knowledge plays a significant role in guiding rational and informed investment behavior.  
The main objective of this research is to determine whether financial literacy has a significant effect on investment decision-making and risk perception. The study follows a descriptive and analytical research design. Primary data were gathered from 50 respondents through a structured questionnaire designed using a Likert scale. For analysis, statistical techniques such as percentage analysis, mean, standard deviation, and Pearson correlation were applied.
The results indicate a strong positive association between financial literacy and investment decision behavior (r = 0.64, p < 0.01). Respondents with higher levels of financial literacy tend to adopt better diversification strategies, maintain balanced risk tolerance, and show greater involvement in growth-oriented investment avenues like mutual funds and equity markets.  
The study concludes that improved financial literacy enhances the quality of investment decisions and promotes disciplined financial conduct. Therefore, strengthening financial education initiatives can contribute to individual financial security as well as broader economic progress.},
        keywords = {Financial Literacy, Investment Behavior, Risk Assessment, Portfolio Diversification, Individual Investors.},
        month = {March},
        }