Mutual funds add 85 lakh new millennial investors in the last five years; SIP's most preferred option
2 min read . Updated: 06 May 2023, 12:36 PM IST
PremiumWomen millennial investors accounted for up to 30 per cent of new millennial investors in FY23
84.8 lakh new millennial investors entered the Mutual fund industry in the last five financial years (FY19- FY23), according to a report released by mutual fund transfer agency Computer Age Management Services (CAMS). "Despite the market volatility and uncertainty through FY23, investors' confidence to enter mutual funds remained sound and millennials continued to make mutual funds their choice of investment for wealth creation," the report noted.
The impressive growth in mutual fund investments during the last five years is one of the healthy developments happening in the Indian capital market, said Dr. VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services. "The fact that millennials are opting for the equity market route for wealth creation is laudable. More importantly, most millennials are opting for the SIP route for investment. This is reflected in the monthly SIP inflows steadily rising and crossing ₹14000 crores despite poor returns from the market during the last 18 months," said Dr. VK Vijaykumar.
Women millennial investors
Women millennial investors accounted for up to 30 per cent of new millennial investors in FY23.
Millennials are opting for the SIP route for investment
Further, SIP (Systematic Investment Plan) in equity schemes has been the preferred route to begin the investing journey for two-thirds of the new millennials. Interestingly, a third of new millennials have been convinced about making a lump-sum investment.
Millennials have added 1.03 crore SIPs during the five years in addition to the 51 lakh SIPs made as initial investments. These cumulative 1.54 crore SIPs are 29 per cent of the total 5.3 crore SIPs registered across segments during FY19-FY23, the report noted.
Dr. VK Vijaykumar suggested SIP investors continue their investment ignoring the volatility in the market. History has proved that mutual fund investors will be rewarded handsomely in the long run.
“As India grows to an $ 8 trillion economy by 2032, phenomenal wealth will be created through the stock market. SIPs in mutual funds is the best way to participate in this coming wealth creation," added Vijaykumar
Overall, 1.57 crore new investors joined the industry between 2018-19 and 2022-23, as per the CAMS report.