Over 85% Indian mutual fund investors come from top 30 cities: Report
Paytm Money's report suggests that the trends observed in 2019 will affect the investment patters in 2020
January 12, 2020 / 11:01 AM IST
India's mutual funds industry is yet to see wider participation from the population. A new report suggests that 85 percent Indian MF investors are from the top 30 cities only.
"India remains an extremely underpenetrated country, especially with respect to investing in instruments such as mutual funds," a Paytm Money report said on January 10.
"More than 85 percent of investors in mutual funds come from the top 30 Indian cities. This signifies that the rest of India, comprising a majority of the population remains conservative in its choice of investment instrument," the report added.
However, Indians from all demographics are fast adopting investments.
The report suggests that the trends observed in 2019 will affect the investment patterns in 2020. The report reflected 18,792 out of 19,100 pin codes invested with Paytm Money, within the first year of its operations.
Year 2019 saw a massive adoption trend by investors across cities, towns and villages with a substantial share of investors coming from the younger population.
The report also suggests that over 65 percent of its investors are between the age group of 18-30 years. Many of these investors are students and first-time employees.
It also found that India’s youth and first-time investors are choosing new instruments to invest and newer mechanisms to do so.