Citation:

M. Raju, Dr. A. Ravi. "Investment Pattern in Mutual Funds in India through UPI and Other Online Platforms: A Descriptive Study" International Research Journal of Economics and Management Studies, Vol. 5, No. 7, pp. 171-179, 2026. Crossref. https://doi.org/10.56472/25835238/IRJEMS-V5I7P122

Abstract:

The Indian mutual fund industry has undergone a decisive shift toward digital distribution over the past decade, with the Unified Payments Interface (UPI) emerging as a central payment rail for recurring investments. This descriptive paper examines investment patterns in Indian mutual funds through UPI and other online platforms using secondary data drawn primarily from the Association of Mutual Funds in India (AMFI), the Securities and Exchange Board of India (SEBI), the Reserve Bank of India (RBI), and the National Payments Corporation of India (NPCI), covering the period from March 2020 to mid-2026. Industry assets under management grew from approximately ₹22.26 lakh crore in March 2020 to ₹65.74 lakh crore in March 2025 and beyond ₹82 lakh crore by June 2026, accompanied by a corresponding rise in Systematic Investment Plan (SIP) accounts, direct-plan penetration, and app-based platform adoption. The study finds that while digital and UPI-linked payment channels have become the default mode for registering and servicing SIPs, structural patterns including continued geographic concentration in top-30 cities, a persistent reliance on distributors among new millennial investors, and a rising SIP discontinuation ratio indicate that digital access has not uniformly translated into deeper or more resilient participation. The paper concludes by noting the gap between policy-driven accessibility initiatives and actual investor uptake.

References:

[1] Association of Mutual Funds in India. (2025a). Annual report fiscal 2025. https://www.amfiindia.com/Themes/Theme1/downloads/AMFI_AnnualMFReport2025.pdf
[2] Association of Mutual Funds in India. (2025b). B30 vs T30 [Data note]. https://www.amfiindia.com/Themes/Theme1/downloads/home/B30vsT30.pdf
[3] Association of Mutual Funds in India. (2026). Indian mutual fund industry’s average assets under management (AAUM) and assets under management (AUM). https://www.amfiindia.com/articles/indian-mutual
[4] Billcut. (2026). UPI for mutual funds and SIPs: Easy guide. https://www.billcut.com/blogs/upi-for-mutual-funds-and-sips-easy-guide/
[5] Business Standard. (2021, April 26). MFs struggle to crack B30 code, shares remain in 15–17% range of AUM.
[6] Business Standard. (2025b, October 29). CAMS declines after Q2 PAT slumps 6% YoY to Rs 12 cr.
[7] Cafemutual. (2018, February 14). AUM in T30 cities increase by 27%.
[8] Cafemutual. (2020, May 11). Proportion of direct v/s regular is 45:55 in MF industry.
[9] CBInsights. (2026). Paytm Money — Products, competitors, financials, employees, headquarters locations. https://www.cbinsights.com/company/paytm-money
[10] FinGrad. (2025). Best app for mutual funds in India 2025. https://joinfingrad.com/blog/best-app-for-mutual-funds-in-india-2025/
[11] Finnovate. (2026). SIP stability or stagnation: What the 2026 AMFI data actually shows. https://www.finnovate.in/learn/blog/sip-stoppage-ratio-stability-stagnation-2026
[12] India Brand Equity Foundation. (2026). The new Indian investor: Young, digital & confident. https://www.ibef.org/blogs/the-new-indian-investor-young-digital-and-confident
[13] Kumar, A. (2022a, December 11). SIP closure ratio surges to 51% in 2022 from 41% in 2021: Amfi data. Business Standard.
[14] Kumar, A. (2022b, September 25). Share of direct plans in SIPs rises to 31% in three years, shows data. Business Standard.
[15] Kumar, A. (2023, May 4). Advisors, distributors bring 95% of new millennial investors to MFs. Business Standard.
[16] Kumar, A. (2025a, March 26). Women investors deploy bigger sums in mutual funds than men: Report. Business Standard.
[17] Kumar, A. (2025b, November 19). Systems in place to facilitate ‘Chhoti SIPs’, says KFin Technologies. Business Standard.
[18] Kumar, A. (2026, January 6). Mutual fund AUM surges 18% in 2025, slowest in 3 years: AMFI data. Business Standard.
[19] Kumar, S., Agarwal, M., & Kashyap, C. (2026). Mapping rural–urban inequality in mutual fund participation: An AMFI data-driven study. IARS’ International Research Journal, 16(1). https://doi.org/10.51611/iars.irj.v16i1.2026.276
[20] Nair, P. S., Shiva, A., Yadav, N., & Tandon, P. (2023). Determinants of mobile apps adoption by retail investors for online trading in emerging financial markets. Benchmarking: An International Journal, 30(5), 1623–1648.
[21] Press Information Bureau, Government of India. (2026). UPI completes 10 glorious years, emerges as world’s largest real-time payments platform, anchoring India’s digital economy. https://www.pib.gov.in/PressReleasePage.aspx?PRID=2257087
[22] Reflections Vista. (2025). Understanding India’s mutual fund RTAs: A deep dive into CAMS and KFintech. https://www.reflectionsvista.com/understanding-indias-mutual-fund-rtas-a-deep-dive-into-cams-and-kfintech/
[23] Reserve Bank of India. (2026). Digital payments – E-mandate framework, 2026 [Circular, issued 22 April 2026].
[24] Rurash Financials. (2025). 48% of mutual fund investor base is in age bracket of 18 to 30 years: Report. https://rurashfin.com/48-of-mutual-fund-investor-base-is-in-age-bracket-of-18-to-30-years-report/
[25] Savitha, B., Hawaldar, I. T., & Kumar, K. N. (2022). Continuance intentions to use FinTech peer-to-peer payments apps in India. Heliyon, 8(11), e11654.
[26] Securities and Exchange Board of India. (2025a). Consultation paper on promoting financial inclusion through sachetisation of investment in mutual funds. SEBI.
[27] Securities and Exchange Board of India. (2025b, June 11). Circular on structured UPI system for mutual fund transactions. SEBI.
[28] 5paisa. (2026). Zerodha vs Groww mutual fund: Which mutual fund house is better for you? https://www.5paisa.com/blog/zerodha-vs-groww-mutual-fund-which-mutual-fund-house-is-better-for-you
[29] Stable Investor. (2022). List of Top 30 (T30) and Beyond 30 (B30) cities as per AMFI (2022). https://stableinvestor.com/2022/04/list-t30-b30-cities-amfi-latest.html
[30] TradingView / Moneycontrol. (2023). Groww overtakes Zerodha as top brokerage in active investors. https://ar.tradingview.com/news/moneycontrol%3Ac7783ea6e094b%3A0-groww-overtakes-zerodha-as-top-brokerage-in-active-investors
[31] Upstox. (2025). Direct vs Regular mutual funds: 5 interesting investment trends from AMFI-Crisil Factbook. https://upstox.com/news/personal-finance/investing/direct-vs-regular-mutual-funds-5-interesting-investment-trends-from-amfi-crisil-factbook/article-149387/
[32] Zerodha Fund House. (2025). More than 50% of new investor folios in the mutual fund industry now come from smaller cities (B-30 cities). https://www.zerodhafundhouse.com/blog/more-than-50-of-new-investors-in-the-mutual-fund-industry-now-come-from-smaller-cities-b-30-cities/

Keywords:

Mutual Funds, UPI, Digital Investment Platforms, Systematic Investment Plan, India, AMFI, Descriptive Study, Fintech.