AI-powered wealth management platform, MyFi, has released a comprehensive report offering in-depth insights into the investment behaviours of over 7,000 users from diverse age groups, income levels, and geographic locations across India. The report reveals how investors manage risk in their portfolios, highlighting key trends, opportunities, and the growing transformation of India’s financial landscape.
According to the Association of Mutual Funds in India (AMFI), the country’s mutual fund investor base now exceeds 50 million. MyFi’s findings reflect these shifting trends, with younger investors tending to favour high-growth, high-risk assets, while older investors prioritise wealth preservation. However, an interesting behavioural insight emerged: many users, when onboarding, describe themselves as having low to medium risk tolerance, yet their portfolios often tilt towards higher-risk assets. This discrepancy points to behavioural influences such as ambition, peer pressure, and market optimism that override initial perceptions of risk.
Income and geography also influence investment choices. High-income earners (₹12 lakh+ annual income) prefer high-risk investments to leverage greater disposable income for higher returns. Middle-income users (₹5-12 lakh) show a balanced approach, opting for medium-risk assets, while lower-income groups (₹0-5 lakh) tend to gravitate towards low-risk options for financial security.
Geographically, Tier 1 cities like Bengaluru and Delhi prefer medium-risk investments, while Tier 2 cities such as Jaipur and Nagpur exhibit a higher propensity for high-risk investments, potentially due to entrepreneurial cultures or changing socio-economic dynamics.
Kiran Nambiar, CEO of MyFi, emphasized the importance of bridging the gap between perceived and actual risk tolerance. “By leveraging AI and data-driven insights, MyFi aims to simplify investment decisions, providing users with personalized strategies that align with their financial goals,” he said.
