Gen Z rules new investor category; 18-24 age group grows 7 times: Check preferred investment method, SIPs or lump sum?

Axis Direct data shows a dramatic surge in Gen Z investors nationwide. Investors aged 18-30 now comprise 53% of new customer additions. This represents significant growth compared to just 35% back in FY22.

The 18-24 age bracket showed particularly striking growth, nearly 7 times higher. Consequently, the average age of new customers fell considerably. It dropped from 37 years in FY22 to 33 years.

This shift extends notably beyond India's traditional major metropolitan areas. Around 60% of young investors now come from Tier-2 cities, the report says. This compares to only 40% originating from major metropolitan hubs.

While cities like Mumbai and Delhi remain important investor centres, smaller cities are witnessing significant growth. These include Nashik, Nagpur, Ludhiana, Patna and Lucknow. Rural participation also increased substantially, growing 2.5 times compared to FY22.

Young women are increasingly contributing to this growing investor base. Their share of total new customer additions rose considerably.

It increased from just 6% in FY22 to 13% in FY26. This growth was supported by nearly threefold increases in absolute numbers. Within the young investor segment, women's share of participation also increased. It rose from 18% to 24% during this period.

Equities remain central to most young investors' overall portfolios. Around 95% of young investors actively participate in equity markets. Large-cap stocks proved most popular, attracting around 60% of participants.

Small-cap and mid-cap stocks followed with 28% and 25%, respectively. Although delivery-based investing remains dominant, active trading is gaining traction, too. Nearly 30% of young investors engaged in intraday trading during FY26.

Banking emerged as the most actively-traded sector among young investors. About 20% of the trading occurred within this particular segment. Telecom services followed closely, attracting 19% of young investor participation.

Finance rounded out the Top 3 sectors, capturing 12% interest. Their broader participation spans various sectors, including IT, pharmaceuticals and defence.

Regarding mutual fund investments, SIPs proved considerably more popular than lump-sum investments. Among young investors, 76% preferred SIPs as their investment method. Only 42% opted for a lump-sum investment instead.

Average SIP investments typically ranged between ₹3,000 and ₹4,000. Meanwhile, average lump-sum investments were significantly higher, ranging between ₹2-3 lakh.

Numbers at a glance

Gen Z growth: 53%

Youngest investors: Nearly 7×

Average age: 33 years

Rural investors: 2.5×

Women: 13%

Young women: 24%

Equities: 95%

Large-cap participation: 60%

Small-cap participation: 28%

Mid-cap participation: 25%

Intraday participation: Nearly 30%

Banking: 20%

Telecom services: 19%

Finance: 12%

Prefer SIPs: 76%

Lump-sum investors: 42%

SIP amount: ₹3,000– ₹4,000

Lump sum: ₹2–3 lakh