More millennials are eager to test the markets via MFs, show data
Millennials are taking the world by storm with their ability to adapt to new technologies, bringing in their own unique perspective on things. This has also translated into how they invest their money. According to a recent report by CAMS, 7.65 million new millennials have invested in mutual funds in the last 5 years.
The report shows that mutual funds have become the preferred investment avenue for millennials and a good way to test the stock markets. Millennials have been quick to adapt to the new age investment platforms like mobile applications and online trading platforms. The report goes on to state that 63% of new investors in the last 5 years have been under 35 years of age.
CAMS, Computer Age Management Services, is a leading Mutual Fund Transfer Agency (MTA). The company has released its report highlighting the trend in increased investment by millennials after analyzing the data collected from its mutual fund platform in the past 5 years.
The report further highlights that the overall penetration of mutual funds in India has increased by about 270 basis points over the last five years. However, the growth in penetration among new investors has been four times than that of existing investors. This indicates that millennials are driving the growth of mutual funds in India.
The CAMS report reveals some interesting facts about millennials and their investment decisions. It shows that millennials are more likely to invest in equity-oriented funds rather than debt-oriented funds. The report also highlights that equity pension funds, which are considered to be a more tax-efficient way of investing, are gaining popularity among the millennial population.
The report suggests that mutual fund managers need to focus on younger investors as they are the largest potential customer base for mutual funds in India. One way to attract this demographic is by a dedicated mobile application for mutual funds with a user-friendly interface.
Many Indian mutual funds have been quick to recognize the potential of young investors and have launched marketing campaigns targeting this age group over the last few years. These campaigns promote mutual funds as a safe and profitable investment option with great long-term returns.
In conclusion, as per the latest data provided in the CAMS report, it is evident that more and more millennials are getting interested in investing in mutual funds. The report highlights that mutual funds are becoming the preferred investment avenue for millennials who are looking to test the stock markets. It is crucial for mutual fund managers to focus on younger investors and provide them with a better user experience through dedicated mobile applications for mutual funds. With a tech-savvy youth population in India, this trend of investing in mutual funds is likely to pick up pace in the coming years.