Research Article
Investor Psychology, Financial Literacy, and Cross-Cultural Bias Profiles in the Era of Digital Finance: A Four-decade Agenda with India as a Key Case
Prateek Sheth Dawesar*
,
Anuradha Sharma
Issue:
Volume 11, Issue 4, December 2026
Pages:
148-158
Received:
22 August 2026
Accepted:
22 September 2026
Published:
31 October 2026
DOI:
10.11648/j.ijafrm.20261104.11
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Abstract: This conceptual, narrative review synthesises literature on behavioural finance and investor psychology published from 1974 to June 2026, with particular attention to financial literacy, sustainability-oriented investing, digital trading environments, and the Indian retail-investor context. Searches of Scopus, Web of Science Core Collection, Google Scholar, and institutional publications from the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI), National Centre for Financial Education (NCFE), and International Organization of Securities Commissions (IOSCO) were conducted using combinations of terms relating to investor bias, financial literacy, ESG investing, digital engagement practices, social trading, India, and measurement invariance. The review was designed as an agenda-setting conceptual synthesis rather than a systematic review or a primary bibliometric study; therefore, it does not estimate pooled effects or claim exhaustive coverage. The synthesis identifies four linked gaps: the predominance of isolated-bias studies; limited cross-cultural measurement invariance testing; insufficient evidence on whether financial literacy buffers or reshapes bias expression; and underdeveloped research on platform design, digital engagement practices, and investor protection. India is treated as an illustrative emerging-market setting, supported by evidence of substantial recent individual participation and losses in equity derivatives rather than as a basis for generalising to all investors. The article advances testable propositions that connect multidimensional bias profiles, financial literacy, digital platform features, cultural–institutional context, investment behaviour, and sustainability preferences. It concludes with a research agenda centred on validated instruments, multi-group CFA, longitudinal and transaction-linked designs, and ethically governed platform-embedded interventions.
Abstract: This conceptual, narrative review synthesises literature on behavioural finance and investor psychology published from 1974 to June 2026, with particular attention to financial literacy, sustainability-oriented investing, digital trading environments, and the Indian retail-investor context. Searches of Scopus, Web of Science Core Collection, Google...
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