This study examines the relationship between financial literacy and the investment behavior of retail investors. Retail participation in financial markets has increased significantly in recent years, yet many investors continue to make decisions without adequate financial knowledge. The paper explores how financial awareness, risk perception, and access to information influence investment choices. Secondary research suggests that financially literate investors are more likely to diversify portfolios, evaluate risk carefully, and pursue long-term wealth creation. The study concludes that improving financial literacy can enhance market participation and promote more rational investment behavior among retail investors.

Keywords

Financial literacy, retail investors, investment behavior, risk tolerance, portfolio diversification, behavioral finance.