Page 32 - Banking Finance March 2025

ARTICLE

Mutual Funds

and Millennials:

Changing

Investment

Trends in India

The investment landscape in India is undergoing a paradigm shift, driven by millennials who are
redefining financial planning. Unlike previous generations, millennials are more inclined toward
mutual funds as a preferred investment vehicle.

Introduction 2. Factors Driving the Shift

The investment landscape in India is undergoing a paradigm a) Digital Revolution and Ease of Access
shift, driven by millennials who are redefining financial Fintech advancements and the rise of investment
planning. Unlike previous generations, millennials are more apps have made mutual funds more accessible.
inclined toward mutual funds as a preferred investment Platforms such as Zerodha, Groww, and Paytm
vehicle. Factors such as digital accessibility, financial literacy, Money offer seamless investment options,
and the need for diversified portfolios are steering this eliminating the need for extensive paperwork and
transformation. This article explores how younger financial intermediaries.
generations are adopting mutual funds to achieve their
b) Increased Financial Awareness
financial goals.
Millennials today have access to an abundance of
financial education resources through social media,
1. The Rise of Mutual Fund Investments Among
blogs, and online courses. The growing awareness
Millennials of investment principles, risk management, and the
Historically, Indian investors favored traditional avenues power of compounding is driving informed decision-
such as fixed deposits, gold, and real estate. However, making.
millennials, who form a significant portion of the
workforce, are demonstrating a keen interest in market- c) Goal-Oriented Investing
linked instruments, particularly mutual funds. According Unlike previous generations who invested without
to the Association of Mutual Funds in India (AMFI), the clear objectives, millennials adopt a structured
share of millennial investors in mutual funds has grown approach. Whether it is wealth creation,
exponentially over the past five years. homeownership, travel, or retirement planning,

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