A STUDY ON THE GROWTH OF ROBO-ADVISORY PLATFORMS AND THEIR INFLUENCE ON MUTUAL FUND INVESTMENTS

The rapid advancement of financial technology (FinTech) has significantly transformed the structure of modern investment management and retail participation in capital markets. One of the most prominent developments in this transformation is the emergence of robo-advisory platforms, which utilize algorithm-based portfolio construction, automated asset allocation, and digital financial advisory systems to simplify investment decisions for retail investors. As these technology-driven platforms expand, their influence on mutual fund investment behaviour and investor participation has become an important area of academic and industry investigation.

The present study examines the growth of robo-advisory platforms and their influence on mutual fund investments. The study specifically analyses the relationship between robo-advisory platform adoption and mutual fund investment trends. A quantitative research design is adopted using secondary data collected from financial databases, industry reports, and regulatory publications related to leading digital investment platforms operating in India. The analysis applies correlation and regression techniques to evaluate the statistical relationship between robo-advisory adoption indicators and mutual fund investment levels.

The empirical analysis reveals a strong positive correlation (r = 0.86) between the growth of robo-advisory platforms and mutual fund investments, while the regression results (R² = 0.74) indicate that robo-advisory expansion significantly explains variations in mutual fund investment participation. The findings demonstrate that technology-driven advisory services encourage greater retail investor participation, improve investment accessibility, and promote disciplined portfolio diversification. The study contributes to the literature on digital wealth management and fintech-enabled investment ecosystems.