By Kunj Bansal and Rasmeet Kohli
India's rapid economic and financial transformation brings immense opportunities and new responsibilities. As the financial ecosystem becomes more accessible and digitally integrated, it is critical that young citizens are equipped to navigate it responsibly.
India's financial participation has grown remarkably in recent years—mutual fund assets have surged from Rs. 11 trillion in FY15 to over Rs. 72 trillion in 2025, and the number of unique investors in securities markets has tripled to 13 crore since 2020. While these signals rising retail confidence, it also brings new challenges. From cyber fraud to complex financial products, the risks have grown alongside access. However, meaningful inclusion requires more than participation—it requires preparedness. As the market matures, the key question remains: Is financial awareness growing at the same pace?
The need for investor and financial education is widely acknowledged today and has emerged as one of the top public-policy priorities for regulators across the globe. Through a two-pronged approach—investor education and financial literacy programs—regulatory and supervisory efforts to safeguard investors and strengthen market integrity become significantly more effective. Financial education fosters a financially aware and responsible society. It empowers individuals to make informed decisions, understand the trade-offs between risk and return, and makes them capable for sound decision making aligned with long term goals.
A financially literate population is more likely to question advice, avoid misselling, and contribute to a stable, transparent financial system. It also helps build trust in financial institutions, an important factor in ensuring the smooth functioning of markets and the overall economy.
One impactful way to improve financial literacy is by "catching them young." Introducing financial concepts at the school or college level lays a strong foundation for responsible financial behaviour from the outset.
It builds confidence, encourages engagement with formal financial systems, and reduces the likelihood of financial missteps. Early exposure to financial knowledge is a step toward creating a resilient, informed, and financially secure future generation.
Recognising the importance of early engagement, financial literacy initiatives targeted at students have gained traction in recent years. One such effort is the National Financial Literacy Quiz (NFLQ) 2025, an initiative of the National Institute of Securities Markets (NISM) in collaboration with SEBI, which aims to foster financial awareness among students across India.
As Indian financial markets evolve, financial literacy becomes a foundational pillar of inclusive growth. Regulators' roles in promoting investor education and building foundational financial skills through early engagement are also critical.
Families must also grow financially aware in an era of digital and fast-paced financial decisions. Start by testing your own knowledge and bringing your children into the conversation. After all, a financially aware generation starts with informed households.
Take this short quiz to begin. It's not just about answers—it's about building awareness, together.
10 Quiz Questions
1. What is the legal term for a will-maker?
A. Executor
B. Testator
C. Beneficiary
D. Trustee
2. In health insurance, what is the grace period for payment of premium after the due date?
A. 30 days
B. 45 days
C. 60 days
D. 90 days
3. Which of these bodies issues the Sovereign Gold Bonds?
A. SEBI
B. Commercial banks
C. RBI
D. NBFCs
4. RBI's platform Retail Direct allows its users to buy which of these financial instruments?
A. Stock investments
B. Direct G-Sec buying
C. Forex trading
D. Mutual fund investing
5. The "Bharat Bill Payment System" is operated by which of these entities?
A. SEBI
B. RBI
C. IRDAI
D. NPCI
6. Usually, the risk goes down as one goes from small to large cap funds but so does the upside.
A. Large Cap Fund
B. Small Cap Fund
C. Balanced Fund
D. Liquid Fund
7. Which is not a mutual fund category?
A. Equity
B. Debt
C. Hybrid
D. Fixed Deposit
8. Vijaya Bank merged with which of the following entities?
A. PNB
B. Bank of Baroda
C. Canara Bank
D. Indian Bank
9. What is the primary purpose of retirement planning?
A. Tax saving
B. Wealth accumulation
C. Income replacement
D. Estate planning
10. Which document discloses all mutual fund details?
A. KYC
B. SID
C. PAN
D. DEMAT
ANSWERS
1. B
2. A
3. C
4. B
5. D
6. B
7. D
8. B
9. C
10. B
Kunj Bansal is General Manager and Rasmeet Kohli, is Sr. AGM, at the National Institute of Securities Markets
(Disclaimer: Views expressed are the author's own, and Outlook Money does not necessarily subscribe to them. Outlook Money shall not be responsible for any damage caused to any person/organisation directly or indirectly.)
