Impact of Financial Literacy on Investment Decisions Among Young Working Professionals in Urban India

Abstract This study examines the influence of financial literacy on investment decisions among young working professionals in urban India. Using survey data from 300 respondents across Tier-1 cities, the research employs descriptive statistics, Pearson correlation, and multiple regression to analyze the relationship between financial knowledge and investment behavior. Findings reveal a significant positive correlation between financial literacy and diversified investment choices, particularly in mutual funds and equities. Key predictors include awareness of inflation, risk diversification, and long term financial planning. The regression model explains 51% of the variance in investment behavior, highlighting the importance of financial education in shaping rational investment patterns. The study recommends integrating structured financial literacy programs in academic and workplace settings, and encourages fintech platforms to embed educational modules. These insights underscore the urgent need to strengthen financial literacy as a foundation for informed decision making and financial security in a rapidly digitizing economy. Keywords Financial Literacy; Investment Behavior; Urban Professionals; Risk Awareness; India