New Delhi: Grip Invest, the leading high-yield investment platform, reveals a strong generational shift in investor demographics in its rece...
New Delhi: Grip Invest, the leading high-yield investment platform, reveals a strong generational shift in investor demographics in its recent report titled “Gripping The Boom: Millennials In Fractional Investing”. The report centres on the transformative power of Fractionalisation, a 150-year-old investing concept reimagined for the digital age. With BSE reporting total retail bond volumes via RFQ to have grown by 100x over the last 2 years, Grip Invest’s report analyses how this trend intersects with the growing participation of millennials in the alternative investment landscape.
Bullish on promoting investor participation in
fixed-income and high-yield assets that were previously out of reach for retail
investors, SEBI reduced the face value of bonds from ₹1,00,000 to ₹10,000 in
April 2024. As the younger strata of Indian investors grow an appetite for
risk-adjusted alternative investment assets, this report directs us towards the
implications of this positive regulatory development of reducing the minimum
ticket size of alternative investments.
In the last two years, the alternative investment
space has attracted early adopters and has been made mainstream by millennials,
the generation that is choosing a risk-adjusted approach to investing, as
opposed to the erstwhile risk-averse approach.
As per the report, two-thirds of all investors are millennials and 76.8% of
users prefer the do-it-yourself (DIY) approach to researching the right
fractionalised investment option for themselves. Other key findings about this
major investing demographic includes –
●
60% of all orders made are from investors under 40
●
9 out of 10 make decisions based on personal research
●
Investors as young as 21 years are choosing fractional high-yield
assets
●
After Millennials at 65% share, 20% of investments are done by Gen X
Millennials in India often approach investing with
a mix of caution and curiosity. Despite their inherent watchfulness, the average
value per investor is more than ₹1 Lac on Grip Invest’s platform. This trust is
further evidenced by a strong repeat customer rate, where over half of them
placed their second order within 3 months. This establishes that investment in
regulated high-yield fixed-income options is not a one-off event for these
users. Additionally, 40% investors have already referred someone thereby
passively driving brand advocacy and endorsing positive user experience.
Nikhil
Aggarwal, CEO and Founder, Grip Invest, said, “Our report reveals a fascinating
shift – Millennials are embracing alternative investments due to
fractionalisation and market volatility. Grip Invest reflects this,
experiencing 20% month-on-month growth on the platform. A considerable strata
of retail investors are opting for fractionalisation, due to SEBI reducing
ticket sizes by 90% and enhanced digital access. As India’s investor base
expands in volume and awareness, we reckon it’s fitting for us to adopt the
role of educators and facilitators, that connect avid investors with high
returns and affordability, for a personalised investment journey, where access
is democratised.”
Accessible, transparent investment tools that allow
for diversification as well as fixed-income opportunities is what Grip Invest
specialises in. This is evidenced in the platform’s dominance
of the SDI market with a 66% share in all SDI transactions offered in India
since FY 2020. Having facilitated over ₹950 Cr worth of investments, Grip
Invest accounts for a significant 11% of all retail RFQ trades done till April
2024.
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