Name: Salma Begum & Manikandan B
Country: India

Year: 2026
Volume: Volume No: 13, Issue No: 1, Year: 2026
Page Number: 156-166
DOI: https://doi.org/10.5281/zenodo.19494990

ABSTRACT
The role of financial literacy in influencing personal investment decisions cannot be
overstated, particularly among young professionals who are in a stage of financial
independence. In the current dynamic financial environment, individuals are called upon to make complex financial decisions in saving, investing, and planning. The current study aims to investigate the relationship that exists between financial literacy and personal investment decisions among young professionals. In addition, this study seeks to understand the impact of risk tolerance in influencing investment decisions. The current study was based on both primary and secondary data collection methods. The
primary data was collected from more than 200 respondents using a structured questionnaire via Google Forms. In addition, descriptive statistics and percentage analysis were used to interpret the data. Secondary data was also used to support the findings and provide a theoretical background to the study. The results show that financial literacy has a strong positive impact on investment behaviour. People with high levels of financial literacy are more likely to show better financial planning
skills, are more confident in investment decisions, and are more rational in dealing with risks. However, there are gaps in understanding complex financial concepts, which show the need to improve financial education. The study concludes that improving financial literacy can contribute to better financial decisions and better financial stability among young professionals.

Keywords: Financial Literacy, Investment Behaviour, Risk Tolerance, Young Professionals,
Financial Decision-Making