Young Investors Driving Growth Of Investments In Mutual Funds

Young investors are rapidly emerging as a driving force behind the growth of mutual fund investments in India, with platforms like Groww witnessing a significant surge in participation.

With over 50 per cent of new systematic investment plans (SIPs) initiated by individuals under the age of 35, the trend underscores a growing awareness of early financial planning and disciplined investing among the youth.

This rise in youth-led investments is reshaping the mutual fund landscape, as more young investors prioritise long-term wealth creation through consistent, strategic financial decisions.

Additionally, AMFi data suggests that there has been a significant rise in the financial engagement among women as well, with 24 per cent of new SIPs initiated by female investors--well above the national average of 17 per cent. This indicates a positive shift in women's involvement in long-term financial strategies. 

In July-September quarter of 2024, Groww, reported a growth of over 4.7 million new folios under Systematic Investment Plans (SIPs). 

The current quarter saw a twofold growth in new SIPs folios compared to the same period in 2023. Notably, this quarter's additions accounted for 50 per cent of the total SIPs across the mutual fund industry in the same timeframe last year.

SIPs remain the preferred method for mutual fund investments on Groww, comprising 86 per cent of the platform's investment volume, while lump-sum investments accounted for 14 per cent. 

The average SIP value per customer rose to over Rs 6,000, indicating a growing commitment to long-term wealth creation through disciplined investing.

Harsh Jain, Co-founder and COO, Groww said, “The rising participation of younger and female investors reflects financialisation of savings across India, as more people embrace the benefits of systematic, long-term investment.”

He added, “We have seen a large scale adoption of UPI autopay which has simplified the payment experience for investors. Additionally, our flagship educational initiative - Ab India Karega Groww has evangelised disciplined investing among investors all over the country.”

Nearly 80 per cent of the platform's transactions originated from non-metro cities, indicating a strong interest in SIPs among retail investors in smaller towns.

Maharashtra, Uttar Pradesh, West Bengal, Bihar, and Rajasthan were the top five states contributing from B30 (beyond the top 30) cities, further highlighting the increasing participation from these regions. (ANI)