Financial Literacy and Its Role in Shaping Personal Investment Decisions in India

Shivangi Srivastava

doi:10.55524/ijirem.2025.12.5.3

Abstract

The issue of financial literacy is critical in determining the way people in India make personal investment choices. This paper explores the present situation in financial literacy in India, how it connects to investment preferences and policy efforts to enhance financial education. Based on the use of secondary sources and illustrative data, the study demonstrates that increased financial literacy correlates with an increase in the degree of risk-taking, diversification of portfolios, and financial performance. They give policy recommendations that would enhance financial education in India.

Keywords

Financial Literacy, Investment Decisions, India, Financial Inclusion, NCFE

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Cites this article as

S. Srivastava "Financial Literacy and Its Role in Shaping Personal Investment Decisions in India", International Journal of Innovative Research in Engineering and Management (IJIREM), Vol-12, Issue-5, Page No-18-21, 2025. Available from: https://doi.org/10.55524/ijirem.2025.12.5.3