The Future of Digital Investing: From DIY to D-I-WHY Not

Today, we live in a technologically advanced era in which digital experiences and convenience are increasingly influencing global events. However, once dominated by brokers and financial intermediaries, the capital market investing is now within the reach of individuals, thanks to access to smartphones, mobile apps, and growing financial literacy and awareness. The shift has paved the way for the development of the Do-It-Yourself (DIY) investing cult.

Digital investing in India is no longer a fringe trend; it has become a mainstream financial behavior. The way India invests is fundamentally changing. Not long ago, retail investors asked, “Can I invest on my own?” Today, they’re asking, “Why haven’t I already?” This shift from hesitation to confidence signals the rise of what I call the D-I-WHY, not an investor. It’s no longer just about Do-It-Yourself (DIY); it’s a mindset driven by seamless digital access, intuitive platforms, and a culture that empowers self-driven decision-making. Investors now see technology not merely as a tool, but as a trusted partner in their financial journey. This is not a passing trend; it is a structural evolution reshaping the landscape of India’s capital markets.

Although online trading was rolled out in India as early as 2002, widespread adoption took time. However, the post-pandemic phase, when digital convenience became a necessity of sorts, changed the game. Domestic brokerages witnessed an unprecedented surge in FY25, adding a record 41.1 million demat accounts. The highest-ever annual increase in absolute terms brought the total number of demat accounts in the country to an all-time high of 192.4 million. A new wave of retail investors, mainly from Tier-2 and Tier-3 cities, entered the markets.

Affordable data, smartphone access, the proliferation of digital payment ecosystems, and the user-friendly features of online trading platforms have actually catalyzed their entry into the markets. According to data from BSE, mobile trading apps accounted for one-fourth of the total trading volume in April 2024, representing a significant shift in how investors engage with the markets. Mobile trades represented the second-largest share of overall trades, trailing only co-location trades, which held the top spot at 39.34%. In fact, mobile trading contributed a mere 0.02% of total trades in 2010. By March 2024, its share had already gone up to just under 17%.

This new generation of investors is a fast adopter of the latest digital technologies and trends. Going beyond just market access, they look for actionable insights, convenience, and control over the investment or trading process. Sensing that change, online trading platforms have risen to the occasion and started integrating AI-powered tools, user-friendly interfaces, smart order processing, charting capabilities, and real-time dashboards. These advanced features have enhanced their decision-making capabilities.

Beyond functionality or operational convenience, these platforms are evolving into a comprehensive investing destination for the new-age investors by combining trade execution tools with investor education, portfolio analytics tools, financial news, and community features.

Having said that, broader DIY retail participation comes with greater responsibility for the platform owners. They must ensure safety, data privacy, and system reliability. As markets become more accessible, there should be continued focus on promoting the idea of responsible investing behavior through transparent disclosures, easy user experiences, and trust-based engagement.

The future of investing isn’t just digital; it’s personal, empowered, and here to stay. It’s no longer about asking ‘why not,’ it’s about asking ‘how well.’ How well are we equipping investors to make informed decisions? How well are we building trust, promoting responsible participation, and shaping platforms that empower, not just enable? The next phase of this journey isn’t about more access; it’s about better outcomes.

(This article is authored by Mr. Gagan Singla, MD, BlinkX – JM Financial)