India’s retail investing landscape is undergoing a major transformation, driven by rising participation in equities, digital investing platforms and growing use of AI-led tools. But even as long-term investing gains traction, speculative trading behaviour continues to dominate among a large segment of new investors.
In an interview with IndiaToday.in, Jones George, Executive Director at Geojit Financial Services, spoke about the evolution of retail investing in India, the growing dominance of derivatives trading, investor behaviour during volatile markets, the role of AI in portfolio construction and why hybrid “phygital” wealth models could define the future of investing.
Here are edited excerpts from the interview:
Q. Retail participation in India has surged sharply, but data shows a large share of activity is still concentrated in derivatives, where most retail investors tend to lose money. Do you see clear evidence of a shift towards long-term wealth creation, or is the trading mindset still dominant beneath the surface?
Retail participation has undoubtedly deepened, but it is happening in two parallel tracks. On one side, we are seeing a very healthy structural shift toward long-term wealth creation through SIPs, mutual funds, retirement products, and diversified investment portfolios. The consistent growth in systematic investing and the increasing acceptance of goal-based investing are strong indicators of maturity.
At the same time, the trading mindset, particularly in derivatives, remains dominant for a large segment of new entrants, especially younger investors attracted by speed, leverage, and short-term excitement. Many enter markets through trading before they understand investing. So, the shift is real, but incomplete.
The challenge for the industry is to convert participation into disciplined investing. Platforms, advisors, and regulators must work together to move investors from speculation to financial planning. True financial inclusion is not just about market access; it is about helping people stay invested long enough to create wealth or achieve their financial goals.
Q. Markets have seen sharp swings in recent months, from global shocks such as the West Asia conflict to domestic corrections. In your view, has this phase of volatility improved investor discipline, or has it pushed retail investors towards more reactive, short-term behaviour?
Volatility tends to reveal investor behaviour more than it changes it. For disciplined investors, market corrections often reinforce the importance of asset allocation, diversification, and staying invested through cycles. Many long-term investors today are far more mature than they were a decade ago, especially those investing through SIPs.
However, for first-time or momentum-driven participants, volatility can trigger exactly the opposite response; panic exits, impulsive buying, and short-term decision-making driven by headlines rather than fundamentals.
What has improved is awareness. Investors today react faster because they are better informed, but information without perspective can increase anxiety. The role of an investment services provider is therefore critical, not just to provide market access, but to provide context. Volatility should become a lesson in discipline, not a trigger for emotional investing.
Q. With a growing number of retail investors now relying on platform-led insights and AI-driven tools, how is AI actually changing portfolio construction? Is it enabling better asset allocation, or largely lowering entry barriers without improving investor understanding?
AI is first changing access, and then gradually improving decision quality. Its most immediate contribution has been lowering entry barriers, simplifying onboarding, reducing friction, and making investing feel less intimidating for first-time investors.
The more meaningful opportunity lies in portfolio construction. AI can help identify suitability gaps, recommend asset allocation aligned to goals and risk appetite, detect concentration risks, and provide timely nudges for rebalancing. It can make advice more personalized and scalable.
But AI should not be mistaken to be a decision maker. Good investing still requires context, discipline, and human understanding of life goals. AI works best as an augmentation layer, not as a replacement for investor education or professional advice. The objective should not be to automate decisions blindly, but to help investors make better ones.
Q. As investing becomes increasingly frictionless through digital platforms, and with concerns around mis-selling and product push in the system, where should platforms draw the line between enabling access and taking responsibility for investor outcomes?
Ease of access should never come at the cost of suitability. Platforms have a responsibility that goes beyond transaction execution. If a platform can influence investor behaviour through design, recommendations, and nudges, it also carries a responsibility for the quality of those outcomes.
The line should be drawn at intent. Are we helping the investor make an informed decision, or are we merely optimizing conversion? Product discovery should be based on suitability, not sales priorities. Transparency in costs, risks, and alternatives must be non-negotiable.
Q. There is increasing discussion around “phygital” investing, especially as first-time investors enter markets through apps but often lack guidance. Do you see hybrid models combining digital tools with human advice becoming essential for long-term wealth creation?
Absolutely. The future of wealth management is not purely digital or purely physical. It is intelligently hybrid.
Digital platforms are excellent for access, convenience, speed, and routine engagement. But wealth creation is often driven by moments that require trust, judgment, and reassurance during market corrections, life transitions, succession planning, or retirement decisions.
First-time investors may start on an app, but meaningful wealth decisions often require human confidence. That is where the phygital model becomes powerful. Technology handles efficiency, while advisors provide perspective and accountability.
In India, especially beyond metros and among family-led wealth decisions, human relationships remain very important. The most successful platforms will be those that combine the scalability of technology with the credibility of trusted advice.
Q. With India’s growth story and indices like the BSE Sensex attracting rising NRI participation, how can digital platforms leverage behavioural insights to enhance customer engagement while ensuring responsible investing and avoiding bias-driven decision-making?
NRI investors are increasingly looking at India not just for participation, but for strategic long-term allocation.
Digital platforms can play a major role by using behavioural insights to make engagement more relevant and disciplined. This means understanding investor intent, whether the goal is retirement planning, family wealth creation, income generation, or India allocation diversification, and then creating journeys around those goals rather than around products.
Smart nudges can help encourage SIP continuity, portfolio reviews, tax planning, and diversification rather than speculative trading.
At the same time, behavioural design must be used responsibly. Platforms should avoid exploiting fear, greed, or urgency through excessive alerts and performance-chasing prompts. The objective should be to reduce bias, not monetize it.
Good engagement is not about increasing transaction frequency. It is about increasing financial confidence. The best digital platforms will be those that help investors make fewer emotional decisions and more informed long-term ones.