Mutual Funds Add 85 Lakh New Millennial Investors in the Last Five Years
According to the latest report from Computer Age Management Services (CAMS), the mutual fund industry has witnessed the entry of 84.8 lakh new millennial investors in the last five financial years (FY19-FY23). The report stated that despite the market volatility and uncertainty during FY23, millennial investors’ confidence in mutual funds remained strong and steady. The industry added 1.57 crore new investors between FY18-19 and FY22-23.
Impressive Growth in Mutual Fund Investments
The impressive growth in mutual fund investments during the last five years is heartening news for the Indian capital market, according to Dr. VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services. He added that millennials who prefer the equity market route for wealth creation have made a laudable choice. Most of them have opted for the SIP route for investment, as reflected in the monthly SIP inflow, which has steadily risen and crossed the ₹14,000 crores mark despite poor returns from the market in the last 18 months.
Women Millennial Investors
Women millennial investors made up 30 per cent of new millennial investors in FY23.
SIP Route for Investment
The report also showed that systematic investment plan (SIP) in equity schemes has been the preferred route to begin the investing journey for two-thirds of new millennials. Interestingly, one-third of new millennials have been convinced about making a lump-sum investment. During the five years, millennials have added 1.03 crore SIPs, in addition to the 51 lakh SIPs made as initial investments. These cumulative 1.54 crore SIPs constitute 29 per cent of the total 5.3 crore SIPs registered across segments during FY19-FY23.
SIP Investors Should Continue their Investment
Dr. VK Vijaykumar advises SIP investors to continue their investment despite the volatility in the market. Historically, mutual fund investors have been rewarded handsomely in the long run. Furthermore, he stated, as India is projected to be an $8 trillion economy by 2032, SIPs in mutual funds provide the best way to participate in this future wealth creation.
Keyword: Mutual Funds Add 85 Lakh New Millennial Investors, SIP, Equity Schemes, Investment, Millennials, Market Volatility, Indian Capital Market.
