Citation:

M. Raju, Dr. A. Ravi. "Trust, Technology, and Access: A Conceptual Framework for Digital Financial Inclusion in Mutual Fund Investment Behaviour in India" International Research Journal of Economics and Management Studies, Vol. 5, No. 7, pp. 202-210, 2026. Crossref. https://doi.org/10.56472/25835238/IRJEMS-V5I7P125

Abstract:

Digital financial inclusion in India has advanced rapidly in payments and credit, yet its extension into long-term wealth creation through mutual funds remains uneven. As of 30 June 2026, the Indian mutual fund industry managed assets exceeding ₹82 trillion across more than 27 crore folios, and regulators have introduced sachetised, low-ticket systematic investment plans to widen participation. However, the psychological mechanisms that convert digital access into sustained investment behaviour are not well understood. This conceptual paper synthesises literature from technology acceptance, organisational trust, and behavioural finance to propose an integrated framework in which trust and transparency, AI/Robo-advisory influence, and financial inclusion and accessibility act as antecedents of investor behaviour and risk perception, which in turn mediates their relationship with digital mutual fund adoption and Preference. Seven directional hypotheses and one mediation hypothesis are advanced and justified. The framework draws on the Technology Acceptance Model, the unified theory of acceptance and use of technology, the integrative model of organizational Trust, and Prospect Theory to extend fintech-adoption research into the specific, underexamined context of mutual fund investing in an emerging market. The paper concludes with a proposed empirical validation strategy using structural equation modelling, alongside theoretical, regulatory, and practical implications, as well as the model's limitations.

References:

[1] Alalwan, A. A., Baabdullah, A. M., Al-Debei, M. M., Raman, R., Alhitmi, H. K., Abu-ElSamen, A. A., & Dwivedi, Y. K. (2024). Fintech and contactless payment: Help or hindrance? The role of invasion of privacy and information disclosure. International Journal of Bank Marketing, 42(1), 66–93.
[2] Asif, M., Khan, M. N., Tiwari, S., Wani, S. K., & Alam, F. (2023). The impact of fintech and digital financial services on financial inclusion in India. Journal of Risk and Financial Management, 16(2), 122.
[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] Baron, R. M., & Kenny, D. A. (1986). The moderator–mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6), 1173–1182.
[5] Bhatia, A., Chandani, A., Atiq, R., Mehta, M., & Divekar, R. (2021). Artificial intelligence in financial services: A qualitative research to discover robo-advisory services. Qualitative Research in Financial Markets, 13(5), 632–654.
[6] Chawla, U., Mohnot, R., Singh, H. V., & Banerjee, A. (2023). The mediating effect of perceived trust in the adoption of cutting-edge financial technology among digital natives in the post-COVID-19 era. Economies, 11(12), 286.
[7] D’Acunto, F., Prabhala, N., & Rossi, A. G. (2019). The promises and pitfalls of robo-advising. The Review of Financial Studies, 32(5), 1983–2020.
[8] Davis, F. D. (1989). Perceived usefulness, perceived ease of use, and user acceptance of information technology. MIS Quarterly, 13(3), 319–340.
[9] Dietvorst, B. J., Simmons, J. P., & Massey, C. (2015). Algorithm aversion: People erroneously avoid algorithms after seeing them err. Journal of Experimental Psychology: General, 144(1), 114–126.
[10] Fatima, S., & Chakraborty, M. (2024). Adoption of artificial intelligence in financial services: The case of robo-advisors in India. IIMB Management Review, 36, 113–125.
[11] Guo, Y., & Waked, H. N. (2026). Trust-mediated adoption of AI robo-advisors in inland China: An extended UTAUT perspective. Journal of Financial Services Marketing, 31, Article 11.
[12] Hayes, A. F. (2017). Introduction to mediation, moderation, and conditional process analysis: A regression-based approach (2nd ed.). Guilford Publications.
[13] Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica, 47(2), 263–291.
[14] Kamble, P. A., Mehta, A., & Rani, N. (2024). Financial inclusion and digital financial literacy: Do they matter for financial well-being? Social Indicators Research, 171(3), 777–807.
[15] Logg, J. M., Minson, J. A., & Moore, D. A. (2019). Algorithm appreciation: People prefer algorithmic to human judgment. Organizational Behavior and Human Decision Processes, 151, 90–103.
[16] Manrai, R., & Gupta, K. P. (2023). Investor’s perceptions on artificial intelligence (AI) technology adoption in investment services in India. Journal of Financial Services Marketing, 28(1). https://doi.org/10.1057/s41264-021-00134-9
[17] Mayer, R. C., Davis, J. H., & Schoorman, F. D. (1995). An integrative model of organizational trust. Academy of Management Review, 20(3), 709–734.
[18] McKnight, D. H., Carter, M., Thatcher, J. B., & Clay, P. F. (2011). Trust in a specific technology: An investigation of its components and measures. ACM Transactions on Management Information Systems, 2(2), Article 12.
[19] Mishra, D., Agarwal, N., Sharahiley, S., & Kandpal, V. (2024). Digital financial literacy and its impact on financial decision-making of women: Evidence from India. Journal of Risk and Financial Management, 17(10), 468.
[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] Panakaje, N., Lasrado, B. S., Parvin, S. R., Sheikh, N., Bazigha, U., Madhura, K., Irfana, S., & Kagzi, M. (2026). Tap to trust: A scale for understanding iGen’s FinTech adoption. Fintech and Digital Accounting Review. Advance online publication. https://doi.org/10.1108/FDAR-06-2025-0008
[22] Ravikumar, T., Suresha, B., Prakash, N., Vazirani, K., & Krishna, T. A. (2022). Digital financial literacy among adults in India: Measurement and validation. Cogent Economics & Finance, 10(1), Article 2132631.
[23] Reserve Bank of India. (2020). National strategy for financial inclusion 2019–2024. https://www.rbi.org.in/commonman/Upload/English/Content/PDFs/English_16042021.pdf
[24] Rogers, E. M. (2003). Diffusion of innovations (5th ed.). Free Press.
[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. (2025). Consultation paper on promoting financial inclusion through sachetisation of investment in mutual funds. SEBI.
[27] Singh, S., & Kumar, A. (2025). Investing in the future: An integrated model for analysing user attitudes towards robo-advisory services with AI integration. Vilakshan – XIMB Journal of Management, 22(1), 158–175.
[28] Venkatesh, V., Morris, M. G., Davis, G. B., & Davis, F. D. (2003). User acceptance of information technology: Toward a unified view. MIS Quarterly, 27(3), 425–478.
[29] Venkatesh, V., Thong, J. Y., & Xu, X. (2012). Consumer acceptance and use of information technology: Extending the unified theory of acceptance and use of technology. MIS Quarterly, 36(1), 157–178.
[30] Verma, B., Schulze, M., Goswami, D., & Upreti, K. (2025). Artificial intelligence attitudes and resistance to use robo-advisors: Exploring investor reluctance toward cognitive financial systems. Frontiers in Artificial Intelligence. https://doi.org/10.3389/frai.2025.1623534

Keywords:

Digital Financial Inclusion, Robo-Advisory, Investor Trust, Risk Perception, Mutual Fund Adoption, India, Conceptual Framework, PLS-SEM.