Does the digital financial literacy impact on effective investment decisions? The mediating role of financial inclusion

Digital Financial Literacy (DFL) is the ability to handle and navigate financial activities using digital technologies and platforms. With the growth of FinTech and the shift in policies of the government in India, the need to understand the influence of DFL on investment decisions has become increasingly important. This study examines the impact of digital financial literacy on investment goals (ING) and examines the mediating role of financial inclusion (FI) and financial decision-making. The research also incorporates such considerations as subjective norms, perceived behavioral control, and financial accessibility to improve understanding of investment decisions. Data collection took place via surveys distributed among 232 people in India from May 2024 to August 2025. Exploratory Factor Analysis (EFA) and Confirmatory Factor Analysis (CFA) were used in the validation of the measurement model through reliability and construct validation, whereas CB-SEM was used to identify the structural relationships between the variables under investigation. Fit quality was determined using conventional metrics such as CFI, TLI, and RMSEA. It was found out that digital financial literacy positively affects the decision to invest (p < 0.05), while financial inclusion acts as a mediator between financial decision-making and investment. These findings highlight the importance of enhancing digital financial literacy and strengthening financial inclusion to support informed investment decisions