Young Investors and Women Lead the Charge in India’s Mutual Fund Growth with Groww
In India, young investors are becoming a major force in the mutual fund market, with platforms like Groww seeing a big increase in participation. Over 50% of new systematic investment plans (SIPs) are started by people under 35, showing a growing awareness of financial planning among the youth. This trend is changing the mutual fund landscape as young investors focus on long-term wealth creation through strategic decisions.
Additionally, data from AMFi shows a significant rise in financial engagement among women, with 24% of new SIPs initiated by female investors, surpassing the national average of 17%. This marks a positive shift in women’s involvement in long-term financial strategies.
In the July-September quarter of 2024, Groww reported a growth of over 4.7 million new SIP folios. This quarter saw a twofold increase in new SIPs compared to the same period in 2023, accounting for 50% of the total SIPs in the mutual fund industry last year. SIPs are the preferred method for mutual fund investments on Groww, making up 86% of the platform’s investment volume, while lump-sum investments accounted for 14%.
The average SIP value per customer rose to over Rs 6,000, indicating a growing commitment to long-term wealth creation. Harsh Jain, Co-founder and COO of Groww, stated, “The rising participation of younger and female investors reflects the financialisation of savings across India, as more people embrace the benefits of systematic, long-term investment.”
He also mentioned the large-scale adoption of UPI autopay, which has simplified the payment experience for investors, and the success of their educational initiative, “Ab India Karega Groww,” which promotes disciplined investing nationwide.
Nearly 80% of Groww’s transactions came from non-metro cities, showing strong interest in SIPs among retail investors in smaller towns. Maharashtra, Uttar Pradesh, West Bengal, Bihar, and Rajasthan were the top states contributing from B30 (beyond the top 30) cities, highlighting the increasing participation from these regions.
Doubts Revealed
Mutual Fund -: A mutual fund is a type of investment where many people pool their money together to buy a variety of stocks, bonds, or other securities. It’s like a big pot where everyone puts in some money, and then experts manage it to try and make it grow.
Groww -: Groww is an online platform in India that helps people invest in mutual funds and stocks. It’s like a website or app where you can easily start investing your money.
SIP -: SIP stands for Systematic Investment Plan. It’s a way to invest a fixed amount of money regularly, like every month, into a mutual fund. It’s like saving a little bit of your pocket money every month to buy something big later.
Folios -: In mutual funds, a folio is like an account number that keeps track of all your investments. It’s a unique number given to you when you start investing, just like a roll number in school.
Rs 6,000 -: Rs 6,000 means 6,000 Indian Rupees, which is the currency used in India. It’s like saying how much money people are investing on average each month in their SIPs.
