Based on the above objective this literature review will be exhaustive, (in terms of causes, effects, and the great role of financial literacy on the individual investment choice). It’s about how the financial knowledge, attitude and behavior can impact individual portfolio selection and elimination of behavioral biases.A discussion brings the practical evidence together in that it is proposed that financial planning with time, risk diversification and risk evaluation are all related to a greater burden of financial literacy. The link between this skill and the active and participative involvement of an individual in the investment procedures is the applicability of financial expertise created how investors act. Moreover, because financial literacy enables investors to adjust their plans, when conditions in the financial market change, financial literacy is important to allow them to make rational and thoughtful decisions. This is important as study evidence has shown that being financially literate can minimize the impact of mental and behavioral biases on financial decisions, including heuristics and emotions on decisions. More importantly, the more knowledgeable and aware of money matters, the less herd mentality and cognitive bias, the more the rational investment decision will be. People can make better judgments regarding investments and avoid undesirable consequences that are normally caused by lack of knowledge or shortcuts in the mind since they have a greater grasp of financial concepts. Consequently, heightened understanding of money might provide the individuals with better understanding of complex financial products and this may help them to make optimum money lending, saving and investment decisions. To achieve the very best from their budget, and deal with the intricacy of the today's economic markets, persons need to have a very good understanding of these markets. Given this reason, a short literature survey of the knowledge regarding influence of influencing factors on financial literacy such as income, education and financial experience was provided in this paper. It also explores the role financial literacy will play in future investments as a linking variable between these experience and demographic attributes and the investment returns.                                                

If financial education programmes emerge from this synthesis and are based on demographic weaknesses that lead to enrichment of the investor's behaviour, then the greater importance of such programmes becomes apparent. By doing this, rebalancing of investments and managing risks from asset allocation and asset value is simplified. It will not only bring more rational decisions to individuals but also the financial literacy will aid the economy to stay stable as investors will not be blind and more resilient. For this reason, this review will critique all available literature, that will examine the methodologies used, to better show some of the existing gap as well as some potential future research to study the level of financial literacy and its impacts. This study will more specifically investigate the interaction between financial literacy and the market efficiency and the relationship between biases induced by these “rules of thumb” and policies of investment practices. There will be pedagogical implications of the results gathered by the review and suggestions of how the behavioral finance theory may be applied to financial literacy learning will be provided as well as reviewing the influence of risk perception, financial literacy and overconfidence on one another and analyzing how investors follow the crowd. Financial knowledge is one of the most important components to your smart financial decisions, which will allow you to create and keep your wealth. This systematic review highlights the financial literacy relevance in the face of new and complex financial markets. It tries to synthesize the knowledge by answering the question of an impact of financial literacy on investing particularly focused on soft factors like behavioural biases (behavioural finance) such as herding and overconfidence