Millennials account for almost half of new Mutual Fund investors in FY19

More and more millennials (persons born from 1981-1996) are taking to mutual fund route for long terms wealth creation. According to data from Computer Age Management Services (Cams), 47% of 3.6 million new MF investors were millennials (between 20 and 35 years).

Campaigns such as Mutual Funds Sahi Hai campaign by industry body Association of Mutual Funds of India’s (Amfi) have helped increase awareness about MFs.

In 2017 where, broad markets were up about 28% while interest rates were coming down on fixed deposits and savings accounts making made MFs attractive for millennials. Also equity-linked savings schemes (ELSS) has become popular for saving tax because these products have the shortest lock-in period (three years) compared to other products such as PPF etc

Key Takeaways

1. Women make for 24% of the 1.7 lakh which is one of the highest in recent years.

2. Millennials still prefer paper-based account-opening and investing.

3. 90% of the first time investors started their investment journey with equity funds, thereby                indicating increased risk appetite for investors

4. Ticket Size: average ticket size for SIP was ₹2,118 while that for lump sum investment was             ₹58,000. However, almost 2.6 lac SIP got cancelled or redeemed within first year only                    indicating the need of mentoring the new investors for long term wealth creation

This article is based on article published on www.livemint.com. image courtesy : livemint 

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