Over half the first-time mutual funds’ (MFs) investors over the last five years have been millennials, says a recent report by Computer Age Management Services (CAMS), India’s largest registrar and transfer agent for mutual funds.
The report, ‘The emerging force of the millennial investor is here to stay & grow’ was prepared by CAMS and the Confederation of Indian Industry (CII) and released at the 17th CII Mutual Fund Summit in Mumbai on May 3, 2023. All insights in the report are based on data of the MFs serviced by CAMS. These account for 69 per cent of the Indian MF industry. The report focuses on millennials who entered the MF space for the first time during the last five financial years.
About 85 lakh investors (54 percent of the 1.6 crore new investors) that started investing in MFs during financial years 2019-2023 were millennials. The millennials who stayed invested through this period had assets worth ₹96,000 crore as of March 2023.
Millennials, also known as ‘Gen Y’, are people born between 1981 and 1996. In sharp contrast to the assumption that this generation is likely to go direct while making investment choices, the study found that 95% of millennials chose advisers or distributors to begin their MF journey.