International Research Journal of Education and Technology

The proliferation of investment instruments in India's evolving financial landscape has placed unprecedented responsibility on working professionals to make informed financial decisions. This study examines the impact of financial literacy on personal investment decisions among working professionals, using primary data collected from 127 respondents through a structured questionnaire. The study employs Chi-Square Tests of Independence and the Kruskal-Wallis Test to evaluate four hypotheses relating financial literacy to investment participation, risk tolerance, portfolio diversification, and financial planning behaviour. All four null hypotheses are rejected at the five percent significance level, confirming that financial literacy is a statistically significant and positive determinant of investment behaviour. Notably, 86.6 percent of respondents report having avoided an investment due to insufficient understanding, underscoring persistent knowledge gaps even among educated urban professionals. An overwhelming 81.1 percent endorse structured financial education in the workplace. The study contributes empirical evidence to the Indian financial literacy literature and provides actionable recommendations for employers, financial institutions, regulators, and fintech platforms.

Keywords: Financial literacy, investment decisions, working professionals, risk tolerance, portfolio diversification, financial planning, India