Authors: Assistant Professor Ms. Mithuna R, Ms. Deepika S
Abstract: The swift expansion of financial technology has changed how people engage with and manage financial services, with robo-advisors standing out as a significant innovation within digital investment systems. This research investigates how robo-advisors can improve financial literacy for younger investors in India. The main aim is to evaluate the degree of financial knowledge, the adoption of robo-advisory platforms, and their influence on investing habits and decision-making processes. The research is founded on primary data gathered from 100 participants through a structured survey, supplemented by secondary data from related studies. To analyze the data, statistical methods including percentage analysis, correlation, ANOVA, and regression were employed. The results suggest that although financial knowledge among young investors is average, the utilization of robo-advisors plays a crucial role in enhancing financial understanding, planning behaviors, and decisive capability. The findings also demonstrate a positive link between using robo-advisors and financial literacy, alongside observable behavioral improvements such as boosted confidence and diminished emotional biases in investment choices. In conclusion, robo-advisors are not just tools for investment; they also act as effective resources for financial education. Nonetheless, elements like trust, awareness, and user participation continue to affect their uptake. These insights offer valuable implications for policymakers, financial institutions, and fintech companies in fostering digital financial education among young investors.
