With Millennials leading investments, mutual funds top the charts: Paytm Money

F&O as an investment option has also gained massive popularity among investors in the last year and so have IPOs on the platform.

Mutual funds have become a popular investment option for Indians. According to the Paytm Money Annual Report – titled ‘How the young Indian millennial invests’ – in the Mutual Fund space over 76 per cent of users transacted in SIPs and 75 per cent of the total transactions were made through SIPs. On average each user registered 5 SIPs and did 19 SIP transactions, and each user did 10 lumpsum transactions on average. Data from the report shows the average amount invested grew by 29 per cent.

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The report charts out how people have invested in various wealth products on the platform over the last year. With Paytm Money, one can invest in products including Direct Mutual Funds, Stocks, IPO, F&O, ETF, NPS and Digital gold on the platform.

According to the report, over 64 per cent of users have invested in mutual funds, close to 28 per cent have invested in equity, and the rest in digital gold. It also states that the average investment per user has increased to over Rs 70,000, and 80 per cent of users in the platform are below 35 years of age.

The report also states that in the last several months there has been a rapid increase in the number of women investors on the platform. Women are investing 2 times more than men on the platform. The number of female investors doubles on the platform who are experimenting and investing in different wealth products. The report also stated that over 2.1 lakh Demat accounts were opened in less than eight months between August last year and March 2021.

While most of India has shown initiative in starting their wealth creation journey, around 44 per cent of the total user base belong to five states including Maharashtra, Gujarat, Uttar Pradesh, Delhi, Karnataka.

Some of the most popular mutual funds on the platform during the last year include Axis Bluechip Fund (Growth Plan), where almost 1.2 lakh users have invested more than Rs 200 crore in this fund and over 80 per cent of these users chose the SIP route to invest in the fund. Other popular funds were SBI Small Cap Fund Direct-Growth, Parag Parikh Flexi Cap Fund Direct-Growth.

According to the report, for equity trading, 2.1 lakh accounts were opened till March 31, 2021. In the last year, investors on average did 10 transactions in the stocks per month and hold Rs 46,000 worth of stocks in the account, while they added over Rs 74,000 for investing. Many users traded or invested in 15 stocks and 41 per cent traded intraday. Users invested the most in Tata Motors in the last year, attracting the highest number of investor base other than Yes Bank, Vodafone Idea, SBI, ONGC.

Additionally, according to the report, more than 25 per cent of equity users invested in ETFs on an average of about Rs 28,834. Exchange-Traded Funds (ETF) are the next big thing in Indian stock markets according to experts and through the platform, one can invest in ETFs. Experts say, investing in ETFs is a cost-effective way to diversify one’s portfolio. The platform also conducted multiple Masterclasses on ETFs, an attempt to educate investors more on ETF investments, and close to 5,000 people attended the Masterclasses conducted by industry experts.

Additionally, F&O as an investment option has also gained massive popularity among investors in the last year and so have IPOs on the platform.

Varun Sridhar, CEO, Paytm Money says, “In the last one year we have seen a transformation in the way our users invest. Through education, open dialogue on investments, we have been able to open up more users to the idea of wealth creation along with products that help in building a strong portfolio. We believe that wealth management in the country needs to be democratized, embraced, and adopted by all.”