The evolution of the financial sector, particularly the rise of financial technologies (Fintech), has reshaped how individual investors make investment decisions. This study investigates the influence of financial literacy and fintech exposure on individual investment decisions in the underexplored emerging markets like Hyderabad, emphasising the mediating role of investment interest. Drawing on behavioural finance theory and empirical studies, the research explores how informed financial understanding and engagement with digital financial platforms shape investment behaviour. The data is collected using a structured survey method from 311 individual investors in Hyderabad, India. For the study, Structural Equation Modelling (SEM) was employed to test relationships among the constructs. Unlike prior studies that have often examined financial literacy or fintech exposure in isolation, this paper uniquely integrates these two determinants with the mediating mechanism of investment interest, providing a comprehensive model of investment decision-making in the Indian context. The study contributes to the understanding of investment psychology within the Indian context and offers insights for policy-makers and financial institutions aiming to foster inclusive and informed investment ecosystems. It can be concluded that financial literacy positively influences investment decisions by providing investors with the necessary knowledge and skills to evaluate options critically and confidently.
JAFFER et al. (Sat,) studied this question.