DOI: https://doie.org/10.0224/Nerj.2025770364
Anusha N, Dr. Anouja Mohanty
Investment decision-making is a complex process influenced by various financial and psychological factors. This study examines the role of investment self-efficacy as a mediator between financial knowledge, financial behaviour, financial attitude, and investment decisions. A structural equation modelling (SEM) approach was employed to analyse survey data collected from 298 respondents. The findings indicate that financial knowledge, financial behaviour, and financial attitude significantly impact investment self-efficacy, which in turn positively influences investment decisions. The study contributes to the literature by highlighting the psychological mechanisms underlying financial decision-making and provides insights for policymakers, financial educators, and investors aiming to enhance financial confidence and investment participation.