6 days ago
Half of mutual fund investor base is in age bracket of 18 to 30 years: Report
Synopsis
A report shows 48% of mutual fund investors are aged 18-30, with most starting via equity. Youth investors prefer SIPs, diversified equity funds, and exhibit strong financial discipline across India, especially in smaller cities.
Nearly half of mutual fund investors are under 30, with a strong tilt towards equity, SIPs, and diversified funds, reflecting disciplined long-term wealth creation habits. Nearly 48% of the mutual fund investor base is in the age bracket of 18 to 30 years, indicating a strong mindset shift of youth towards investing and long-term wealth creation, according to a report by highlighting the growing participation of India's young investors in Mutual Funds on International Youth Day. An analysis of over 6 lakh mutual fund investors between August 1, 2024 and July 31, 2025 reveals this.
The data spotlights that nearly 95% of Gen Zs begin their investment journey in mutual funds through equity. This reflects a clear appetite for high risk-reward investment options over short-term savings options. Moreover, the young investors are showing a strong preference for disciplined and consistent investing behaviour, the release said.
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According to the study, Maharashtra (16%), Uttar Pradesh (11%), and Karnataka (8%) lead in youth investor participation, reflecting widespread adoption across regions. Approximately, 81% of the young investors come from B30 (Beyond Top 30) cities such as Jodhpur, Raipur, Visakhapatnam, Gorakhpur, Mysore, Jamshedpur and Kolhapur, indicating increased financial inclusion and a commitment to long term wealth creation and savings, 92% invest on a monthly basis through SIPs with an average transaction value of approximately Rs 1,000 which is 18% lower than above 30 age group.
Approximately 21% of the young investors opted for at least one lumpsum investment with an average transaction value of nearly Rs 8,000 that is 30% lower than the investors over 30 lastly, diversified equity fund categories such as Value / contra and Flexicap are among the most preferred categories for these under-30 investors, with 70% of them owning a fund from at least one of these categories. Midcap and small cap are the other popular categories among these Read | Mutual fund SIP inflow hits record high in July, rises 4% to Rs 28,464 crore'It is inspiring to see India's youth take charge of their financial well-being so early in life. Inculcating a healthy investing habit will improve their long-term investment journey and help them become confident investors over time. Their inclination towards consistently investing in SIPs and diversified fund choices shows a level of maturity and financial literacy that is promising for the future,' said ilesh D Naik, Head of Investment Products at (PhonePe Wealth).'At (PhonePe Wealth), we are committed to empowering young investors with the tools, education, and insights they need to make informed and impactful investing decisions,' Naik added.
