The mutual fund (MF) industry has registered a rise with the addition of 84.8 lakh new millennial investors in the past five financial years (FY2019-FY2023), as per a recent Confederation of Indian Industry-Computer Age Management Services (CII-CAMS) report. This number formed a 54% share of the new investor base in the MF industry.
About 1.57 crore new investors entered the MF industry between 2018-19 and 2022-23, as per the report.
Of these, the millennials (those born between 1981 and 1996) formed a significant segment among the new investors who became a part of the MF industry in the past five years.
Similarly, there has been a considerable rise in women millennials who are active participants as investors in the MF industry in the FY 2023, mentions the report.
Women millennial investors registered about 30% of the group of new millennial investors in FY23. This marks a move away from the so far male-dominated investment domain in the MF industry.
In addition, the option of choosing the first investment in equity funds has risen considerably in FY2022 and FY2023 while the market rally rose in FY 2021.
Also, the systematic investment plan (SIP) mode of investment in equity schemes has emerged as the chosen route to kickstart the investing journey for about two-thirds of the new millennials. At the same time, a third of new millennials remain assured about making a lump-sum investment.
Going by the numbers, at least 1.03 crore SIPs have been clocked by millennials in the past five years. This is in addition to the 51 lakh SIPs introduced as initial investments. So, the cumulative total of 1.54 crore SIPs forms 29% of the 5.3 crore SIPs registered across segments during FY 2019-FY2023, as per the report.
The rise in numbers is attributed to several factors, including extensive awareness campaigns, ease of digital access, and simplified know-your-customer (KYC) procedure, among others.
Rajiv is an independent editorial consultant for the last decade. Prior to this, he worked as a full-time journalist associated with various prominent print media houses. In his spare time, he loves to paint on canvas.