Mutual funds have come to be a preferred investment choice for Indians. According to the Paytm Money Annual Report – titled ‘How the young Indian millennial invests’ – in the Mutual Fund space more than 76 per cent of customers transacted in SIPs and 75 per cent of the total transactions have been made by means of SIPs. On typical each and every user registered 5 SIPs and did 19 SIP transactions, and each and every user did 10 lumpsum transactions on typical. Data from the report shows the typical quantity invested grew by 29 per cent.
The report charts out how people today have invested in a variety of wealth solutions on the platform more than the last year. With Paytm Money, one can invest in solutions like Direct Mutual Funds, Stocks, IPO, F&O, ETF, NPS and Digital gold on the platform.
According to the report, more than 64 per cent of customers 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 typical investment per user has improved to more than Rs 70,000, and 80 per cent of customers in the platform are beneath 35 years of age.
The report also states that in the last many months there has been a speedy improve in the quantity of females investors on the platform. Women are investing 2 occasions more than guys on the platform. The quantity of female investors doubles on the platform who are experimenting and investing in diverse wealth solutions. The report also stated that more than 2.1 lakh Demat accounts have been opened in much less than eight months amongst August last year and March 2021.
While most of India has shown initiative in beginning their wealth creation journey, about 44 per cent of the total user base belong to 5 states like Maharashtra, Gujarat, Uttar Pradesh, Delhi, Karnataka.
Some of the most preferred mutual funds on the platform in the course of the last year consist of Axis Bluechip Fund (Growth Plan), exactly where practically 1.2 lakh customers have invested more than Rs 200 crore in this fund and more than 80 per cent of these customers chose the SIP route to invest in the fund. Other preferred funds have been SBI Small Cap Fund Direct-Growth, Parag Parikh Flexi Cap Fund Direct-Growth.
According to the report, for equity trading, 2.1 lakh accounts have been opened till March 31, 2021. In the last year, investors on typical did 10 transactions in the stocks per month and hold Rs 46,000 worth of stocks in the account, though they added more than Rs 74,000 for investing. Many customers 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 quantity of investor base other than Yes Bank, Vodafone Idea, SBI, ONGC.
Additionally, according to the report, more than 25 per cent of equity customers invested in ETFs on an typical of about Rs 28,834. Exchange-Traded Funds (ETF) are the next large issue in Indian stock markets according to professionals and by means of the platform, one can invest in ETFs. Experts say, investing in ETFs is a price-helpful way to diversify one’s portfolio. The platform also carried out various Masterclasses on ETFs, an try to educate investors more on ETF investments, and close to 5,000 people today attended the Masterclasses carried out by sector professionals.
Additionally, F&O as an investment choice has also gained huge recognition amongst 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.”