Impact of Digital Investment Platforms on the Risk–Return Behaviour of Retail Investors: Evidence from Jhansi District

Economics and Finance

Digital investment platforms have reshaped India’s financial participation by improving access, transparency, and convenience for retail investors. While studies in metropolitan areas highlight high adoption rates, limited work investigates how these platforms influence the risk–return behaviour of investors in semi-urban regions. This study examines the role of digital platforms in shaping investment decisions in the Jhansi district, where financial literacy and digital exposure are still developing. Using data from 385 retail investors, this research combines a comprehensive literature review with empirical evidence based on satisfaction responses, investment preferences, and behavioural indicators provided through chat data. Findings reveal that digital platforms enhance perceived transparency, strengthen investor confidence in equities and mutual funds, and partially alter risk appetite. However, behavioural tendencies such as herding, overconfidence, and loss aversion remain prevalent. Index funds exhibit low understanding and satisfaction, indicating gaps in digital financial literacy. This paper proposes a multi-dimensional conceptual framework integrating classical finance, behavioural biases, socio-cultural influences, and digital platform features. The study offers insights for fintech providers, regulators, educators, and investors to support informed and responsible digital investing in semi-urban India.

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