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Business News/ Money / Personal Finance/  Increase in first-time investors foraying into India's investment market
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Increase in first-time investors foraying into India's investment market

Groww, an online investment platform, said that 94.53% growth was observed for first-time investors in 2021 till July as compared to last year. Its investor base is rapidly growing and has already crossed over 15 million customer

There has been a consistent spike in the number of new investors entering the space since 2020.Premium
There has been a consistent spike in the number of new investors entering the space since 2020.

NEW DELHI: There has been a visible increase in the percentage of first-time investors from the age group of 18-30 this year, shows Groww database.

Groww, an online investment platform, established around 5 years ago said that 94.53% growth was observed for first-time investors in 2021 till July as compared to last year. Its investor base is rapidly growing and has already crossed over 15 million customers.

Mint earlier reported that Groww claims it has 15 million+ customers, with 250,000 systematic investment plans opened every month on its platform. Also, from September 2020 to April 2021, it has opened up nearly 70 lakh customers, with 60% of its customers in Tier-2 cities and beyond.

As per Groww database, "2020 witnessed a 226.12% increase in the number of first-time investors from the age group 18-20 years, whereas in 2021 there has been an increase of 101.65% already and is growing. This has been the highest among all the other age groups, indicating that millennials and younger investors are taking interest in wealth creation at a younger age."

There has been a consistent spike in the number of new investors entering the space since 2020. The company said, "We have seen 206.08% growth in first-time investors in 2020 and a 94.53% growth just within the two quarter of 2021, which is expected to increase manifold in this year, indicating that newer investors are entering the ecosystem."

Besides, women investors entering the space has witnessed an uptick since 2020 and has shown a similar trend in 2021 as well indicating rising interest among women investors across all financial portfolios.

Top 5 cities from where the highest number of young investors have come on to the platform to invest are as follows:

Top five cities with highest number of investors
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Top five cities with highest number of investors

Pune, Mumbai, Bengaluru and New Delhi are the top cities that have witnessed consistent growth over the last two years in terms of the number of young investors who have started investing. Pune tops the list across all the investment portfolios except IPO, for which Ahmedabad takes the lead.

Majority of young investors are from Pune, New Delhi, Bengaluru and Mumbai across all the investment portfolios. Ahmedabad makes it to the top when it comes to IPO investments, Lucknow leads for stocks, Kolkata spearheads investment in Mutual Funds, and Hyderabad is the highest for investment in gold for this financial year.

Also, the highest numbers of young women investors are from Mumbai while the largest number of young male investors are from Pune.

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ABOUT THE AUTHOR
Navneet Dubey
Navneet Dubey is a personal finance writer and artist. Over the past decade, he has written feature stories on insurance, financial planning, lending and borrowing.
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Published: 12 Aug 2021, 03:31 PM IST
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