Financial Literacy and Its Impact on Investment Decisions Among GenZ Indians

This study investigates the impact of financial literacy on the investment decisions of Gen Z Indians, a generation increasingly engaging with financial products through digital platforms. As financial markets become more accessible, understanding how young individuals make investment decisions—and how their financial knowledge influences these choices—is critical. Using a structured questionnaire and a sample of individuals aged 18 to 28, the study adopts a quantitative research design and analyses the data using Smart PLS. The findings indicate that financial literacy significantly shapes investment behaviours. Specifically, Financial Knowledge strongly influences both Attitude Toward Investing (ATI) and Financial Behaviour, which in turn drive sound investment decisions. Attitude Toward Investing emerged as the most powerful predictor of Investment Decision Making, while factors like loss aversion also contributed, reflecting the role of emotional biases. Despite the potential of Gen Z to participate in the investment landscape, a significant portion lacks the financial education needed to make informed choices. The study highlights the importance of integrating financial literacy into early education and using digital tools to engage young investors. Enhanced financial literacy can lead to better decision-making, reduced financial risk, and increased participation in formal investment avenues, ultimately contributing to greater financial inclusion and economic resilience.