This study investigates the impact of Financial Fear of Missing Out (Financial FOMO) on the investment decisions of young retail investors (aged 18–30). Driven by social media amplification, hyper-connectivity, and accessible trading platforms, financial FOMO has emerged as a central psychological catalyst driving modern retail financial behavior. Drawing on Social Comparison Theory and the Heuristic-Systematic Model, this paper examines how financial FOMO interacts with social media exposure, herd behavior, and financial literacy to shape asset allocation, risk tolerance, and trading frequency. Using a primary survey dataset ($N = 384$) collected from young active retail investors, multiple linear regression and structural equation modeling (SEM) were executed to test the hypothesized paths. The findings reveal that financial FOMO exerts a significant positive impact on speculative trading frequency, risk tolerance, and herd behavior, while showing a significant negative relationship with portfolio diversification and longterm financial planning. Financial literacy acts as a significant moderating variable, dampening the destructive behavioral impacts of high financial FOMO. The study offers strategic recommendations for policy regulators, financial technology app developers, and educational institutions to mitigate emotional bias in retail trading.

Mayank Ashok Ingale, Dr.Ujwala Narkhede, "The Impact of Financial FOMO on Investment Decisions Among Young Investors: An Empirical Study" International Journal of Scientific Research and Engineering Development, V9(5): Page(1139-1144) September - October 2026. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.