Trends in the Investment & Mutual Fund Advisory Business
Are you keeping up with the changes to meet your clients’ expectations? Read more for industry trends
The financial world is undergoing a digital transformation, and investment advisors must adapt to remain competitive. With the rise of AI, automation, and data-driven decision-making, the way clients seek investment advice is evolving.
Are you keeping up with these changes to meet your clients’ expectations?
Investment advisory is built on trust and expertise. Clients rely on you to provide clarity in their financial decisions, ensuring they choose the best investment strategies tailored to their goals. But in today’s market, offering traditional advisory services alone may not be enough to keep attracting new clients and retaining existing ones.
The Financial Landscape is Changing – Are You Keeping Up?
A decade ago, manual portfolio management and in-person consultations were the norm. But now, digital tools, AI-driven insights, and online platforms have reshaped how investors engage with financial advisors.
The rise of digital investing platforms has made financial planning more accessible, and your clients expect fast, personalized, and tech-enabled solutions.
AI is Transforming Investment Management – Here’s How
nvestment managers are developing generative AI solutions aimed at boosting employee productivity and customer satisfaction with quick response times and large data-crunching abilities.
Here are some global companies’ examples:
- Voya Investment Management has developed AI-enabled virtual analysts to complement its human talent in providing stock recommendations.
- JPMorgan Asset Management is developing the “Moneyball” tool to analyze portfolio manager and market behavior and mitigate biases.
- BNP Paribas has partnered with Mistral AI to develop use cases across customer support, sales, and IT.
- Morgan Stanley is introducing the AI @ Morgan Stanley Debrief tool, expected to allow financial advisors to capture and aggregate insights from client conversations to generate personalized recommendations and outline the next steps.
Mutual Fund Industry Growth – The Digital Revolution is Here
Key Industry Insights You Can’t Ignore:
- Assets Under Management (AUM) of the Indian Mutual Fund Industry as of January 31, 2025, stood at ₹67,25,450 crore.
- The AUM has grown more than fivefold in a span of 10 years, from ₹11.81 trillion in January 2015 to ₹67.25 trillion in January 2025.
- Monthly SIP inflows have surged from ₹3,000 crore to ₹19,000 crore, further crossing the ₹26,000 crore mark in January 2025.
A Massive Untapped Market Awaits
Despite the excellent value proposition as a financial instrument, mutual funds’ current reach is limited to 5.33 crore investors (as of January 2025) compared to:
- 25 crore online shoppers
- 2.8 crore foreign travelers (AMFI Report)
This leaves a vast majority of India’s population untapped. A shift from a product-centric approach to an investor-centric journey can help align with India’s diverse financial aspirations and unlock new market potential.
Digital Transformation is Reshaping Investments
- 60% of transactions (21% of transaction value) now occur digitally, compared to 45% of transactions (1% of transaction value) in FY2013. (Source: The Mutual Funds Route to Viksit Bharat @2047)
How Your Competitors Are Leveraging Fintech & AI to Scale
Several Indian firms are actively using Fintech and AI to scale their investment services:
- Zerodha: India’s largest brokerage firm, using AI-powered analytics to improve investor insights.
- Groww: An investment platform integrating AI to personalize investment recommendations.
- Smallcase: Leveraging AI to create custom investment portfolios based on market trends.
- INDmoney: Using AI-driven financial planning to help users manage their investments and liabilities.
- Kuvera: A direct mutual fund investment platform using machine learning for smart portfolio recommendations.
Big Investments & Funding in Indian Investment Tech Firms:
- Groww secured $251M in Series E funding, valuing the company at over $3B, to enhance its Fintech and AI capabilities.
- INDmoney raised $75M to expand its AI-driven wealth management solutions.
- Dezerv: Dezerv raised 30 Millions for it’s unique way of catering to PMS Services.
- Centricity: Developer of Invictus, an investment insights engine designed to “democratise investment intelligence”, and One Digital is an investment product marketplace for “search, discovery and comparison”, raised 20 Million in Seed Funding Round.
- ZFunds: Bagged INR 25 Cr To Boost Its Tech Stack.
The company is looking to deploy the funds into training facilities, technological development, and ramping up its operations. The startup is also planning to integrate five Indian languages into its apps over the next two years to make it more accessible to its users. - Artha Alpha:Raised 2M to deploy AI driven management.
Ready to get your name to the list? Connect with us to share your vision, let us handle the tech part!
The Blueprint for Scaling Your Investment Business
For Asset Management Companies (AMCs):
- Simplify apps and platforms to enhance user-friendliness.
- Leverage AI for personalized experiences, behavioral nudges, and interactive educational guides.
- Partner with technology platforms to provide intelligent assistance.
- Equip distributors and RIAs with digital and AI-driven tools for better client conversations.
For Financial Advisors & Distributors:
- Develop user-centric platforms with regional language support and intuitive design.
- Train advisors to communicate financial concepts simply while respecting cultural nuances.
- Utilize AI tools to present investment options clearly and simplify decision-making.
- Design clean dashboards that minimize cognitive overload.
- Ensure a seamless experience across physical and digital channels.
For Registrar & Transfer Agents (RTAs):
- Provide infrastructure for platform enhancements and integration with financial intermediaries.
- Standardize processes across AMCs, from onboarding to redemption.
- Implement vernacular onboarding flows with e-KYC integration to ease the entry process.
The Future of Investment & Mutual Fund Advisory – Are You Ready?
The financial advisory landscape is evolving rapidly, and embracing AI, digital transformation, and investor-centric strategies is no longer optional—it’s a necessity. Firms that integrate AI-driven insights, streamline digital experiences, and personalize client interactions will stay ahead in the competitive investment space.
India’s wealthtech industry is poised for exponential growth, with an increasing number of investors looking for smarter, tech-driven advisory services. By leveraging AI and digital platforms, investment advisors can scale their businesses, tap into new markets, and provide next-gen financial solutions that resonate with modern investors.
The question is: Are you ready to embrace these changes and position your firm for long-term success?
ProfitMatics is a custom fintech app development company, with expertise in all the Fintech Domains, be it trading, investment management, lending or payments. We take pride in helping our client businesses scale efficiently and securely.
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