Impact of Robo-Advisory Services on Retail Investment Patterns: Evidence from Secondary Data in the Indian Stock Market

Abstract

Financial technology (FinTech) has evolved and brought about a change in investment management processes, especially the advent of robo-advisory services. This paper research is focused on the effect of robo-advisory service on retail investment behavior in the Indian stock market based on secondary data between 2015 and 2025. The researchers consider the main indicators, including the retail investor participation, the amount of trades, and the systematic investment plan (SIP) inflows to comprehend the impact of digital advisory platforms on the investor behavior. The research design is a quantitative design, and the trend analysis, correlation, and regression analysis is used to investigate the association between the growth of robo-advisors and investment trends. The results indicate that the number of retail investors has increased significantly, especially since the growth of online investment products like Zerodha and Groww. These findings imply that there is a significant positive correlation between robo-advisory services and the important investment indicators, such as trading activity and SIP inflows. The paper also shows that robo-advisory services can help in making more disciplined and structured investment decisions by lessening emotional biases and encouraging long-term financial planning. The findings are in line with the technology adoption and behavioral finance theories, which emphasizes the importance of perceived ease of use, accessibility, and algorithm-driven decision-making to influence investor behavior. The research has added to the existing body of literature by offering empirical data, which is based on secondary data, and in an emerging market environment. It also provides effective implications to the financial institutions and policymakers on how to facilitate the inclusion of digital finance and ensure effective investment practices.