Authors: Research Scholar Mohamed Azharuddeen, Assistant Professor Dr Bakkialakshmi S
Abstract: Green finance has emerged as a critical instrument for channeling capital towards environmentally sustainable projects and encouraging responsible investment practices. This study examines the level of awareness of green finance instruments and its influence on the investment behaviour of individual investors. A structured questionnaire was administered to 150 individual investors, and the collected data were analysed using SPSS. The results reveal that while awareness of conventional green financial products, such as green bonds and green mutual funds, is moderate, a considerable proportion of investors remain uncertain about the risk-return characteristics of these instruments. The study further finds that the level of awareness significantly influences investment behaviour, with more informed investors demonstrating a stronger inclination towards sustainable investment avenues. The paper concludes with suggestions for financial institutions, regulators, and policymakers to enhance investor education and expand access to green financial products.
