Not long ago, 58 per cent of young Indians invested in stocks and 39 per cent favoured mutual funds.  The percentage of young people investing in mutual funds is about to increase phenomenally in 2025

metro india news  I hyderabad

Even as the stock markets plunged, the young investors are gung ho and are the driving force and a significant participants in the mutual fund investment space. Young investors are looking for long-term wealth creation through consistent and strategic financial decisions.

Speaking to Metro India, Bapiraju of Bhavya Sampada Pvt Ltd said, “I have been in the trading business for over two decades. It is now in the last five years that I see a major change as more and more youngsters are investing in mutual funds. I too advise all my clients to invest in mutual funds. They are a safe bet and much better than parking money in a bank.”

Several reports suggest that over 50 per cent of new systematic investment plans (SIPs) initiated by individuals under the age of 35.  Surya Sainath, a new entrant in the mutual fund landscape says, “I regret not entering earlier, I should have a decade ago.” He further added, “If there was a time to invest, it is now for people like me. The markets have taken a nose dive and investing now for long-term gains is advised.” On Tuesday, investors wealth swelled by Rs 7.32 lakh crore as equity markets staged a strong comeback after crumbling in the previous trade.

Another noteworthy trend is the significant rise among women especially from the IT and ITeS sector in mutual fund investments. Revathy Iyengar, a software professional says, “All along my parents advised me to invest in fixed deposits. After seeing my friends earn close to 15 % returns, I decided to go the mutual fund way.” She adds, “I started with just Rs 500 per month and now I invest 15,000 through the Systematic Investment Plan (SIP) each month.”  Reports indicate that more than 24 per cent of the new SIPs are initiated by women investors.

Not long ago, 58 per cent of young Indians invested in stocks and 39 per cent favoured mutual funds.  The percentage of young people investing in mutual funds is about to increase phenomenally in 2025. Despite equity market fluctuations during 2024, the mutual fund industry achieved a remarkable milestone, with total assets under management (AUM) climbing to ₹68.08 lakh crore. Thanks to the increasing financial literacy among people, especially youth, Young India has jumped onto the Mutual Funds bandwagon.