Youth Investment Preferences and the Shift from Bank Deposits to Mutual Funds: An Empirical Study in the Context of India @2047

Transforming household savings into profitable financial instruments is a strategic priority for India's goal of becoming a developed nation by 2047. Youth investors now prefer mutual funds over traditional bank fixed deposits. This study focuses on how financial awareness, risk-return perceptions, liquidity needs, tax efficiency, and digital platforms drive this change among young investors. This paper, rooted in the PhD study ‘A Study of The Role of Digital Media in Creating Awareness Among Youth Investors', transitions between investment trends, from bank fixed deposit to emerging long-term wealth creator options, mutual funds, among Youth. The primary data used in the study were gathered from young investors using a structured questionnaire. To determine the factors influencing investment preference, descriptive statistics, correlation analysis, and multiple regression techniques were used to analyse the gathered data. The results show that youth investors' preference for mutual funds is strongly influenced by higher expected returns, the advantages of diversification, the flexibility of Systematic Investment Plans (SIPs), and the ease of investing through digital platforms. This preference is further reinforced by increased financial literacy and exposure to digital investor education programs. On the other hand, young investors find bank fixed deposits less appealing as long-term investment options because they believe they offer lower real returns, little room for growth, and insufficient inflation protection. The survey also emphasises the revolutionary power of fintech innovations, mobile investing apps, and online advisory content in moulding informed investment decisions among young people. Mutual fund investments help to create long-term wealth, promote financial inclusion, and expand capital markets, all of which are essential goals of the India @2047 development strategy. The study provides valuable policy insights for regulators, financial institutions, and asset management firms looking to improve digital financial literacy, create youth-centric investment products, and effectively channel household savings into market-linked instruments to support India's long-term economic goals.