The data indicates a preference among young investors for equity mutual funds, with nearly 95% of Gen Z investors starting their mutual fund journey in this category. This reflects a strong appetite for higher risk-reward investment options compared to short-term savings alternatives.
Moreover, 92% of these young investors follow disciplined investment habits by investing monthly through systematic investment
Regional participation among youth investors is widespread, with Maharashtra (16%), Uttar Pradesh (11%), and Karnataka (8%) leading the count.
Notably, approximately 81% of these investors come from beyond the top 30 cities (B30), including places like Jodhpur, Raipur, Vishakhapatnam, and Mysore, signaling increased financial inclusion.
Key findings include:
- The average monthly SIP transaction value among under-30 investors is around ₹1,000, which is 18% lower than that of investors above 30 years.
- About 21% of young investors make at least one lumpsum investment annually, with an average value of nearly ₹8,000, which is 30% lower than older investors.
- Diversified equity funds such as Value/Contra and Flexicap dominate preferences, with 70% of youth investors holding at least one fund in these categories. Midcap and small-cap funds also rank high in popularity.
Nilesh D Naik, Head of Investment Products at Share.Market (PhonePe Wealth), commented, “India’s youth are taking charge of their financial