According to the Paytm Money study, more millennials are becoming investors. High-risk products and exchange-traded funds (ETFs) are two preferred investments.
This year’s annual report from Paytm Money shows a significant increase in young investors participating in the company. They will represent approximately 80% of all investors by 2021.
The Paytm Money Annual Report for 2021 was recently released by One97 Communications, which controls the Paytm brand. According to the report, investments in Paytm Money’s various products (such as mutual funds and stocks) were examined, including IPOs, ETFs, and the National Pension System (NPS) (NPS).
Increased Investing by Generation
In 2021, more millennials will have invested in Paytm Money’s most popular products, according to the study. There was a significant increase in the number of millennials who purchased ETFs. The number of ETFs purchased by millennials increased by 50%. Additionally, the percentage of millennials trading intraday has risen 11 percent. Most millennials applied for IPOs, with an average of eight applications each.
According to the study’s findings, millennials are more likely to invest in high-risk and long-term products alike. For example, mutual fund investors increased by 35% from 2020 to 2021, with most of them putting their money into small-cap funds.
NPS has been a popular long-term investment for many millennials, with their number is expected to double by 2021.
“Their investment patterns showed a clear pattern of diversification and control. Another sign of maturity in millennial investment is the rising interest in long-term tax-saving goods. But, according to the research, “They also continued to be price sensitive as they kept an eye out for savings on trading brokerage and commissions.”
An Increase In The Percentage Of Women Investing
By 2020, the number of female investors had increased by 114%. Female investors also fared better than their male colleagues regarding profit margins.
“An increase in intraday trading and F&O (futures and options) participation also reflected rising confidence. It was heartening to see that these investors were devoting so much time to mastering finance basics. For young Indian investors, these developments are encouraging, according to Paytm Money CEO Varun Sridhar.