- Trends from equity segment showed diversification with 30 stocks traded on avg per user in 2021 vs just 12 in 2020; average equity AuM per user tripled inf 2021
- Their risk appetite was higher as 42% millennials invested in small cap mutual funds (vs 31% in 2020)
- Increased discipline reflected by 30% rise in avg SIP transactions per user & 16% rise in avg SIP amount
NE BUSINESS BUREAU
AHMEDABAD, JAN 11
The number of millennial investors investing in Paytm Money has grown considerably in 2021, finds the annual report of Paytm Money. They constituted nearly 80 per cent of the total investors in 2021.
One97 Communications, which owns the Paytm brand, recently published the Paytm Money Annual Report for 2021. The report analysed investments in various products that Paytm Money offers, including mutual funds, stocks, initial public offerings (IPOs), exchange-traded funds (ETFs) and National Pension System (NPS).
Higher investments by millennials
The report finds that more millennials have invested in most of the products of Paytm Money in 2021. There was a sharp rise in the proportion of millennials buying ETFs. The average number of ETFs bought by millennials rose by 50 per cent. There was also a rise of around 11 per cent in the proportion of millennial users trading intraday. About 70 per cent of millennial users applied for IPOs with eight applications on average per user.
The report finds that millennial investors are prone to investing in high-risk products and also in long-term products. Those investing in mutual funds was up by 35 per cent in 2021 as compared to 2020, with a majority of them investing in small-cap funds.
In terms of long-term investments, many millennials chose to invest in NPS; their number more than doubling in 2021.
“Diversification and discipline were evident from their investment patterns. Millennial investors also took an increased interest in long-term tax-saving products, indicating a mature approach towards investing. They also continued to be price sensitive as they kept an eye out for savings on trading brokerage and commissions,” the report states.
Higher female participation in investment
The number of female investors more than doubled over 2020, growing by 114 percent. In addition to this, a higher percentage of female investors earned higher profit than their male counterparts.
“Higher participation in intraday trading and F&O (futures and options) also indicated growing confidence. It was highly encouraging to see these investors spend a significant amount of time on learning financial concepts. These trends bode well for India’s young investors,” says Varun Sridhar, CEO, Paytm Money.
