Small investors' investment selections are greatly influenced by their level of financial literacy, especially in developing nations like India. This study looks at how financial literacy affects small investors' decisions on what to buy in Nagpur District. The study used a mixed-methods approach, integrating quantitative surveys and qualitative interviews to evaluate the degree of financial literacy and its influence on investing behaviour. The findings reveal that higher financial literacy correlates with more informed and diversified investment decisions, leading to enhanced financial stability and growth for small investors. The study underscores the need for targeted financial education programs and policy initiatives to foster financial literacy, thereby empowering small investors to make better financial decisions.