The present study investigates the performance and growth dynamics of mutual funds and Unit Linked Insurance Plans (ULIPs) in India by integrating investor behaviour, digital financial technologies, and sustainable investment trends into a comprehensive analytical framework. Using a quantitative research design, primary data were collected from 198 retail investors, complemented by secondary financial performance data. Statistical techniques including descriptive statistics, reliability analysis, correlation, independent sample t-test, ANOVA, multiple regression, Structural Equation Modeling (SEM), and moderation analysis were employed using SPSS.The results indicate that mutual funds outperform ULIPs in terms of risk-adjusted returns, as reflected by higher Sharpe and Treynor ratios, positive Jensen's alpha, and superior compound annual growth rates. Investor behaviour, particularly risk perception and financial awareness, significantly influences investment preference. The findings further reveal that Artificial Intelligence (AI), Machine Learning (ML), and blockchain-based transparency positively affect investor trust and perceived performance.Digital financial literacy significantly moderates the relationship between fintech adoption and investment preference, suggesting that technologically informed investors are more likely to adopt AI-driven financial tools. Additionally, sustainable investment orientation positively influences investment decisions, highlighting the growing importance of ESG considerations in financial markets.The study contributes to the literature by providing an integrated empirical framework linking financial performance, technology adoption, investor behaviour, and sustainability in the Indian investment context. The findings offer valuable insights for asset management companies, insurance providers, policymakers, and investors aiming to enhance technology-driven and sustainability-oriented investment strategies.