Millennials, Gen Z Account For 48% Of India’s Mutual Fund Investors
Around 93% of young adults are saving money, where most of them are reserving around 20-30% of their income for future financial aspirations, noted Chetan Vasudeva, Senior Vice President – Business Development at Elephant.in, Alliance Insurance Brokers.
He further said that, young investors are taking up almost 48% of the investor community.
Below are some of the investment tools that can be actively deployed by Millennial and Gen Z as per Vasudeva.
Fractional Ownership: Fractional ownership is one of the most widely spoken-about developments in the investment space today. The fractional ownership market is estimated to be around $500-600 million, and is growing rapidly.
Instead of spending crores on an entire property, individuals can become co-owner of an asset with a small ticket size as much as Rs 10 lakh and grow their wealth with potential capital appreciation.
Individuals can start earing monthly returns, which can be more than monthly interest rates from other investment tools. Due to the increased likelihood for this investment tool, fractional ownership is now diversifying into other asset classes like business property, exotic cars, paintings.
Alternative Lending: Peer-to-peer (P2P) lending is another good option for young investors, whereby they can lend funds to businesses or individuals and earn competitive interest.
Similarly, securitised debt instruments offer avenues to align higher returns with limited risk. The India peer-to-peer lending market size was valued at $7.53 billion in 2024.
Looking forward, IMARC Group estimates the market to reach $42.92 Billion by 2033. Thematic and Environmental, Social, and Governance (ESG) funds are also gaining traction as the majority of young investors are keen on their investments reflecting their ethical values, whether it is technology progress, clean energy, or social justice.
Mutual Fund: Mutual fund investments have continued to sustain its momentum as one of the choicest investment options in India.
The total industry Assets under Management (AuM) surpassed Rs 75.35 lakh crore n 2025, indicating a near threefold increase in the last five years, as per Vasudeva.
Within mutual fund industry, the concept of Systematic Investment plan is growing at an increasing pace. Young investors are taking up almost 48% of the investor community and the numbers will increase with more Gen Z joining the workforce, he said.
Insurance: Another very important aspect of wealth creation is insurance. This segment is significant, for it protects the wealth created by investors. All wealth creation goes in vain, if a person has to spend huge amount of money from the pocket, due to some unprecedented event, Vasudeva noted.
This goes for health, life, motor, property insurance and many other insurance products which protect the life and assets of individuals today. Unfortunately, this wealth protection tool has not yet found the light of the day.
People still look at insurance as an optional investment, they only realise its value when during an emergency, a huge amount of savings is spent. While wealth creation tools have become very significant in today’s growing economy in India, protecting this wealth is as vital as creating it, he said.
