Impact of Digital Platforms on Investment Decisions: A Study of Online Share Trading Trends and Risk Assessment in Retail Investors

Abstract

Indian economy has witnessed revolutionary changes due to globalization, technological advancements and government reforms. Digital platforms have dramatically changed the investment trend. Among retail investors, online share trading has increased significantly. The study considers this shift brought about by digital platforms and their impact on trading patterns, specifically risk evaluation and control, among retail investors. The study explores the accessibility, ease of access, and information dissemination factors that influence investor behavior through digital platforms by using a mixed-method approach which combines quantitative data from surveys with qualitative insights from in-depth interviews. Key findings from the report reveal how digital platforms have democratized access to stock markets and enabled retail investors to actively participate. While this ease of rapid decision-making, these platforms promote underestimation and overexposure to volatile assets. Financial literacy is found to play a significant role in allowing the investor to reap the benefits from digital platforms effectively without risking the process. Suggestions have been given for policymakers, financial institutions, and platform developers toward safer investment practice- through user-centric risk management tools, enhanced educational resources, etc. This research contributes to the understanding of the intersection of technology and financial behavior, and offers valuable insights for designing digital platforms that are aligned with the needs of retail investors.