Abstract This study explores the relationship between financial literacy and investment behavior among individual investors in Maharashtra. The research highlights how financial knowledge, awareness of risk and return, and understanding of investment instruments influence household financial decisions. Through observations, informal discussions, and analysis of investor experiences, the study examines the role of education, income, age, and regional differences in shaping investment choices. It further identifies the barriers to financial inclusion, including lack of trust, limited accessibility to financial services, and inadequate financial education, particularly in rural areas. The findings reveal that financially literate individuals are more likely to adopt disciplined investment practices, diversify portfolios, and make informed decisions regarding equities, mutual funds, savings instruments, and other investment avenues. The study also emphasizes the importance of policy support, community learning, financial advisers, and awareness programs in improving investment participation and economic well-being. Ultimately, financial literacy emerges as a significant catalyst for better investment behavior, household wealth creation, and long-term financial stability in Maharashtra.
Abhishek S. Khandelwal (Sun,) studied this question.
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