The rapid expansion of alternative investment avenues such as real estate, commodities, cryptocurrencies, and private equity has significantly altered investor participation in emerging economies like India. Despite this growth, limited financial education and demographic disparities continue to influence investor decision-making and risk behaviour. This study examines the impact of financial education and demographic factors on investor behaviour toward alternative investment options.

Primary data were collected from 312 investors in Bengaluru using a structured questionnaire. The study employed descriptive statistics and chi-square analysis to examine the relationship between financial education, demographic variables, and alternative investment behaviour. The results reveal a strong and statistically significant association between financial education and participation in alternative investments (χ² = 42.06, p < 0.001).

The findings contribute to behavioural finance literature by demonstrating the pivotal role of financial literacy in shaping alternative investment behaviour in an emerging market context. The study offers practical implications for policymakers, financial institutions, and educators in designing targeted financial literacy programs to promote informed investment decision-making