The Impact of Digital Outreach on Mutual Fund Assets Under Management (AUM) in Tier-2 Cities of Uttarakhand

Abstract

 The rapid expansion of digital technology has transformed the behaviour of Indians in the manner they handle and invest their money. Nevertheless, the studies of the impact of digital platforms on mutual fund investment in smaller cities remain hardly researched. The current study is aimed at finding out the influence of various digital media in relation to the development of mutual fund Assets under Management (AUM) within Tier-2 cities (Haridwar, Roorkee, Haldwani, Rudrapur and Rishikesh) of Uttarakhand.The study combines a mixed-methodology. It relies on primary data (surveys of 320 investors in retail mutual funds) and secondary data (financial institutions) between 2020 and 2025. To examine the data, a statistical technique, such as correlation, regression, and structural equation modelling was used. The results reveal that the relationship between digital outreach and growth in mutual fund investments is very high and positive. The value of correlation (r = 0.74) shows that with the increase in digital engagement; the level of AUM also increases significantly. Among the digital tools, videos on financial education on YouTube, mobile applications to invest in SIP (Systematic Investment Plan), including Groww, Zerodha, or Paytm Money are the most effective in making people interested in investing. The other notable observation is that the digital platforms are assisting in decreasing the urban and rural investor gap. Digital tools are making access to information and simplifying investment processes thus many first-time investors are entering the mutual fund market. All in all, the paper brings to the fore the fact that digital outreach is a powerful tool to increase participation in mutual funds in smaller cities. It further indicates that the regulators and financial institutions ought to enhance digital approaches to make more investors aware and involved in these emerging markets.