Financial literacy plays a significant role in shaping individuals’ investment decisions in today’s complex financial environment. It refers to the ability to understand financial concepts such as savings, budgeting, risk-return relationship, inflation, interest rates, diversification, and portfolio management. This study aims to examine how financial literacy influences investment decision-making among individuals. The research focuses on understanding whether financially literate individuals make better investment choices compared to those with limited financial knowledge. Primary data was collected from 50 respondents using a structured questionnaire. The findings reveal that individuals with higher financial literacy are more confident, better at evaluating risks, and more likely to choose suitable investment avenues such as mutual funds, fixed deposits, insurance, and stock markets. Out of 50 respondents, 40 respondents (80%) agreed that financial literacy is very important before making any investment decision, while 10 respondents (20%) had limited awareness about its importance. Financial literacy also reduces the chances of poor financial decisions and financial fraud. The study concludes that financial literacy has a positive and significant impact on investment decision-making and should be promoted through education and awareness programs. Recent review studies also consistently report that higher financial literacy improves investment choices, diversification, and long-term planning.

Keywords-

Financial Literacy, Investment Decision Making, Financial Awareness, Investment Behavior, Risk Management, Savings, Financial Planning, Investor Behavior, Portfolio Diversification, Wealth Creation