Several financial products have recently been introduced to the Indian market. Each of these financial instruments offers a variety of advantages and possibilities regarding interest rates, risk exposure, contract duration, fees, etc. Due to a lack of financial literacy, the majority of individuals are unable to take advantage of the greater returns given by these products. In order to invest in these financial instruments, they must be educated about the risk and return characteristics of these products through a suitable financial education programme. The results of the survey indicate that respondents are well-informed about traditional and secure financial products, whereas the majority of the population has a poor degree of knowledge about modern financial products. Also, the majority of respondents place their funds in traditional and secure investment vehicles. In order to increase financial inclusion in India, the government should amend the Income Tax Act 1961 by adding a debt-linked savings scheme (DLSS) and an index fund to the list of investment options available under section 80C. This will enable the Indian financial market to withstand any outflow of foreign funds.

Saving and Investment, Behavioural Biases, Indian stock market, Households