Financial Awareness and its impact on investment Behaviour in India

Abstract Financial awareness now serves as the main factor which determines how people invest something in India's modern financial system. The present study examines the impact of financial awareness on investment behaviour using a descriptive and analytical research design which depends entirely on secondary data. The researcher obtained data from credible sources which included RBI SEBI AMFI NSE reports and other official institutional documents. The study examines essential financial awareness elements which include financial inclusion and digital financial literacy and investor education programs together with investment behavior metrics that track demat account establishment and mutual fund holdings and systematic investment plan (SIP) participation. The results show that financial awareness improvements lead to more retail investors who join capital markets. The research demonstrates how organized financial education programs together with digital financial services development create pathways for people to adopt diversified investment approaches and systematic investment methods. The research provides policy implications for strengthening financial literacy frameworks and enhancing responsible investment participation in India.