The financial behavior of investors in Mumbai, a key economic center of India, reflects diverse preferences shaped by demographics, risk tolerance, and financial literacy. This study explores the adoption of conventional investments-such as fixed deposits, gold, and real estate—versus systematic investment plans (SIPs) linked to mutual funds. By analyzing secondary data from financial reports, surveys, and studies, this research identifies key trends and factors influencing investment choices. Findings reveal that younger investors predominantly prefer SIPs for their growth potential, while older demographics lean towards conventional investments for stability. Enhanced financial literacy emerges as a crucial factor in guiding informed investment decisions.