#InternationalYouthDay #MutualFundsIndia #YoungInvestors #SIP #GenZInvesting #EquityFunds #PhonePeWealth #ShareMarketApp #InvestingHabits #FinancialInclusion #B30Cities
Mumbai: On the occasion of International Youth Day, Share.Market, PhonePe’s wealth management platform, has revealed striking insights into the changing investment behaviour of India’s younger generation. An analysis of over six lakh mutual fund investors from August 2024 to July 2025 shows that 48% of mutual fund investors on the platform are aged between 18 and 30 years—a sign that young Indians are embracing long-term wealth creation early in life.
Gen Z and Young Millennials Lean Towards Equity Funds
The study highlights that nearly 95% of Gen Z investors have started their mutual fund journey with equity-oriented schemes, bypassing low-risk debt funds and traditional savings options. This shows a strong appetite for higher risk-reward investments among the under-30 demographic.
Diversified equity funds—particularly Value/Contra and Flexicap categories—are the most popular, with 70% of young investors holding at least one such scheme. Midcap and small-cap funds are also high on their preference list, suggesting that these investors are willing to take calculated risks for potentially higher returns.
Systematic Investment Plans (SIPs) Dominate
Perhaps the most encouraging finding is that 92% of young investors follow disciplined investing habits by opting for Systematic Investment Plans (SIPs). These allow investors to contribute fixed amounts at regular intervals—instilling financial discipline while benefiting from rupee-cost averaging.
The average monthly SIP amount for under-30 investors is around ₹1,000, which is 18% lower than the average SIP contribution from older investors. Analysts suggest that while younger investors start with smaller ticket sizes, their longer investment horizon can help them accumulate substantial wealth over time.
Lumpsum Investments Still Play a Role
In addition to SIPs, 21% of young investors make at least one lumpsum investment annually. The average lumpsum value stands at ₹8,000, about 30% lower than the amount invested by their older counterparts. This pattern reflects the early career stage of most young investors, who may have limited disposable income but still seek opportunities to make occasional larger investments.
Financial Inclusion Beyond Metro Cities
One of the most striking findings is the geographical diversity of young mutual fund investors. Around 81% of investors under 30 come from beyond the top 30 cities (B30), underscoring the deepening reach of digital investment platforms into smaller cities and towns.
Notable participation is seen from places such as Jodhpur, Raipur, Visakhapatnam, and Mysore, alongside leading states like Maharashtra (16%), Uttar Pradesh (11%), and Karnataka (8%).
This trend aligns with broader patterns of financial inclusion, where affordable internet access, digital payment adoption, and investor education are enabling first-time investors from smaller towns to participate in capital markets.
Expert Perspective
Nilesh D Naik, Head of Investment Products at Share.Market (PhonePe Wealth), commented:
“India’s youth are taking charge of their financial well-being early, showing maturity and financial literacy through consistent SIP investments and diversified fund choices. This trend bodes well for their long-term investment journeys.”
Why This Matters
Financial planners see the early entry of young investors into mutual funds as a positive development for India’s capital markets. The combination of digital platforms, simplified KYC processes, and user-friendly apps has lowered the entry barriers for first-time investors.
Younger investors also have the advantage of time, enabling them to ride out market volatility and benefit from the compounding effect over decades. Their preference for equity—while riskier—could yield higher returns if combined with disciplined, long-term investing.
The SIP route offers an effective way to develop consistent savings habits, especially for those starting with smaller amounts. Over time, as income levels grow, these investors can increase their contributions to accelerate wealth creation.
Global Context
The trend mirrors a global pattern where younger generations—often dubbed the “DIY investor generation”—prefer to research and manage their own investments via digital channels. However, India’s case is unique because a large portion of this growth is coming from non-metro regions, signaling that the investment culture is not just an urban phenomenon.
The Road Ahead
Industry experts predict that the share of young investors in mutual funds will continue to rise over the next five years, especially as:
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Digital literacy improves in rural and semi-urban areas.
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Fintech platforms integrate AI-based investment recommendations tailored for first-time investors.
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SIP top-up features allow investors to gradually increase contributions as income grows.
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SEBI-led investor awareness campaigns expand their reach into smaller towns.
For now, the data from Share.Market is a reminder that India’s mutual fund industry is witnessing a generational shift, and the financial decisions young people make today could significantly influence the country’s investment landscape in the decades to come.
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#InternationalYouthDay #MutualFundsIndia #YoungInvestors #SIP #GenZInvesting #EquityFunds #PhonePeWealth #ShareMarketApp #InvestingHabits #FinancialInclusion #B30Cities #ValueFunds #FlexicapFunds #DigitalInvesting #IndiaInvestmentTrends
