Mutual Funds Attract Over 80 Lakh Millennial Investors in Five Years: Report

Millennial investors flock to mutual funds in India

The mutual fund industry in India has witnessed a surge of 84.8 lakh new millennial investors in the last five financial years, representing 54% of the new investor base. This increase is largely attributed to massive awareness campaigns, favorable market conditions, and increased digital access, according to a report by the Mutual Fund transfer agency Computer Age Management Services (CAMS).

The report also noted that simplified KYC and intermediation and advisory services played a significant role in attracting new investors to mutual funds. Overall, 1.57 crore new investors joined the industry between 2018-19 and 2022-23.

Millennials have been the dominant segment among the new investors entering mutual funds, with their share percentage peaking at 57% in FY20. Despite market volatility and uncertainty, millennials continued to invest in mutual funds for wealth creation. In the last five years, millennials added 1.03 crore SIPs (Systematic Investment Plans) in addition to the 51 lakh SIPs made as initial investments.

The report highlights that 80% of individual investor assets are held in equity-oriented schemes. This data demonstrates the growing confidence of retail investors in equity-oriented schemes, which have the potential to generate higher returns over the long term.

TWN Conclusion

Millennial investors dominate MF industry in the last five years

The CAMS report reveals that millennial investors have been the dominant segment among new investors in the mutual fund industry over the last five years, with 84.8 lakh new millennial investors joining the industry. They have cornered 54% of the new investor base, and their share percentage peaked to 57% in FY20. The report suggests that the massive awareness campaigns, conducive market conditions, and digital access have encouraged millennials to invest in MFs.

Simplified KYC and intermediation have helped attract new millennials to MFs

Apart from awareness campaigns and digital access, the simplified KYC and concerted intermediation and advisory have also played a significant role in attracting new millennials to invest in MFs. The report suggests that these factors have made it easier for millennials to invest and have provided them with a better understanding of MF investments.

Millennials continue to invest in MFs despite market volatility

Despite the market volatility and uncertainty through FY23, the report reveals that millennials have continued to make MFs their choice of investment for wealth creation. They have added 1.03 crore SIPs during the five years in addition to the 51 lakh SIPs made as initial investments.

Equity-oriented schemes hold the majority of individual investor assets

According to the report, 80% of individual investor assets are held in equity-oriented schemes, indicating that millennials are comfortable with taking risks and investing in equity funds for long-term wealth creation. This trend is expected to continue, given the increasing awareness and digital access that millennials have in the current market scenario.

Important News Tags and Headlines for Readers

Simplified KYC, digital access, and awareness campaigns drive new investor base

Massive Influx of Millennial Investors into Mutual Funds in the Last Five Years

Simplified KYC and Digital Access Drive Growth of Mutual Funds Among Millennials

MF Industry Witnesses Significant Rise in Millennial Investors Amid Market Volatility

Millennials Continue to Choose Mutual Funds for Wealth Creation Despite Uncertainty