The objective of this research project is to examine the impact of Behavioral factors on Investment decisionmaking with mediating effect of risk perception and moderating impact of Financial Literacy. Data was collected from 350 respondents from the investors of the Pakistan Stock Exchange. The advanced structural equation modelling technique was used to test the relationship between Behavioral Factors like Investor Overconfidence, Past Investment Experience, and Social Influence and Investment Decision Making. The structured model for Behavioral Factors and Investment Decision Making mediated by Risk Perception and moderated by Financial Literacy proposed empirical support for research objectives. The empirical results indicate that Behavioral Factors influenced Decision Making by the investors. The research concluded that Behavioral Factors are essential for the correct decision-making of investment in any stock/ bond, and it is guaranteed that Financial Literacy boosts the capacity of investors to handle ambiguities. Further, this research concluded that if Risk Perception is considered in making the decision, it will lead to greater accuracy. It has been confirmed is intensified by Behavioral Factors, which significantly mediate the relationships between Behavioral Factors and Investment Decision Making. Given the significant impact of Behavioral Factors on Investment Decision Making mediated by Risk Perception and moderated by Financial Literacy policymakers, practitioners could apply the findings to select the right setting to handle investment problems by the investors.