Grip Invest 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 Rs 1,00,000 to Rs 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 Rs 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.
Commenting on the launch of the report, 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 7950 Cr worth of investments, Grip Invest accounts for a significant 11% of all retail RFQ trades done till April 2024.