Unveiling the Investment Pulse: A Behavioural Finance Study on Factors Influencing Investment Participation Among College Students and Young Professionals

Abstract

Investment behaviour among young Indians has undergone significant transformation with the rapid expansion of fintech platforms and digital financial ecosystems. Despite increased awareness of financial instruments, participation levels remain uneven, with some individuals actively investing while others continue to avoid financial markets. This study examines the behavioural finance determinants influencing investment participation among college students and young working professionals across India. Using a structured questionnaire administered to 205 respondents, the study adopts a dual-model framework by separately analysing individuals who actively invest (YES group) and those who do not invest (NO group). Four key independent variables financial literacy, digital financial literacy, behavioural biases, and trust in fintech platforms are examined using regression analysis. Reliability testing confirms acceptable internal consistency for both groups. The findings reveal that digital competence, behavioural tendencies, and fintech trust significantly influence investment participation, while low confidence and behavioural hesitation contribute to investment avoidance. The study contributes to behavioural finance literature by offering a comparative perspective on participation and non-participation dynamics among Indian youth. The results provide valuable implications for policymakers, educators, and fintech service providers aiming to enhance financial inclusion and informed decision-making.