Rise of Self-directed Mutual Fund Investing among Young Indians: A Descriptive Analysis of the Role of Fintech and AI-Enabled Platforms

Abstract

The rapid growth of fintech and AI-enabled investment platforms has significantly transformed mutual fund investing behaviour among young Indians. This study examines the rise of self-directed mutual fund investing and analyses how digital financial infrastructure, fintech accessibility, and AI-driven investment services are influencing retail participation in India. The study is entirely based on secondary data collected from sources such as AMFI, RBI, NPCI, SEBI reports, and fintech industry publications from 2020 to 2025. Using descriptive and analytical methods, the study evaluates trends in retail investor AUM, SIP inflows, demat accounts, UPI transactions, direct mutual fund plans, and age-wise investment preferences. The findings reveal that increasing digital accessibility, personalized AI-based investment services, and growing financial awareness have accelerated the adoption of self-directed investment practices among young investors. The study also highlights emerging concerns relating to behavioural biases, cybersecurity, and data privacy within digital investment ecosystems. Overall, the research concludes that fintech and AI-enabled platforms are fundamentally reshaping retail investment behaviour and the mutual fund investment culture in India.