Title: Green bonds in focus: bridging literacy and investment among retail investors

Authors: Kritika Pancholi; Ajay Trivedi; Vandana Lakhotia Ladha

Addresses: Narayana Business School, Near Sanathal Circle, Ahmedabad, India ' Faculty of Commerce, Parul Institute of Commerce, Parul University, Vadodara, India ' Unity College, Nh36, Dimapur, Nagaland, India

Abstract: This study examines the influence of green bond awareness and comprehension on the investment decisions of Indian retail investors and its alignment with sustainable development goals. Utilising a mixed-methods approach, the research combines quantitative survey data analysis and qualitative article content analysis in SPSS to assess investor awareness and inclination towards green bond investments. Findings reveal that financial literacy mitigates behavioural biases, showing a positive correlation between awareness and investment in green bonds. Risk perception and trust in green bond credibility are key influencers. Financial literacy is pivotal in promoting green bond investments among Indian retail investors, suggesting the need for educational programs and policy innovations to enhance the green bond market. Further exploration of these dynamics is recommended.

Keywords: green bonds; GBs; Indian retail investors; behavioural finance; financial literacy; sustainable development goals; SDGs.

DOI: 10.1504/IJBD.2025.148687

International Journal of Bonds and Derivatives, 2025 Vol.4 No.4, pp.308 - 342

Received: 18 May 2024
Accepted: 20 Jul 2024
Published online: 19 Sep 2025 *

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