A STUDY ON THE EVOLVING INVESTMENT PREFERENCES OF STUDENTS: MUTUAL FUNDS, STOCKS, AND DIGITAL ASSETS IN THE MODERN ERA

In recent years, India’s investment ecosystem has experienced a paradigm shift driven by digitalization, financial innovation, and the democratization of financial information. Among the country’s young population, particularly students, investment preferences have evolved from traditional saving instruments such as bank deposits toward more dynamic avenues like mutual funds, equity markets, and digital assets. This paper provides a comprehensive secondary-data-based analysis of these evolving preferences, synthesizing insights from scholarly articles, financial reports, and institutional publications by SEBI, AMFI, and the Reserve Bank of India. The study reveals that mutual funds remain the most widely preferred investment option among Indian students due to their relative safety, liquidity, and low capital requirements, supported by the popularity of Systematic Investment Plans (SIPs). Stock investments are gaining traction, particularly among commerce and finance students, facilitated by online platforms such as Zerodha, Groww, and Upstox that simplify participation and reduce brokerage barriers. Meanwhile, digital assets such as cryptocurrencies and NFTs are emerging as high-risk, high-return choices, appealing mainly to tech-savvy and risk-seeking individuals who are influenced by peer groups and social media. The findings underscore that investment choices among students are primarily shaped by financial literacy, risk perception, technological accessibility, and social influence. Students with greater financial knowledge tend to diversify portfolios and exhibit long-term investment orientation, whereas those influenced by online content often prioritize short-term gains. The paper concludes that while Indian students are increasingly embracing modern investment instruments as a means of achieving financial independence, sustainable and informed participation will depend on enhanced financial literacy, regulatory clarity, and continuous investor education.