Millennials dominate fractional investments, embrace alternative assets
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Millennials dominate investments: Millennials are spearheading a surge in fractional investments, comprising 60 per cent of the investor base, according to a report released by Grip Invest, a digital investment platform. This trend underscores a growing inclination among young investors to diversify their portfolios through fractional asset ownership.
Titled ‘Gripping the Boom: Millennial in Fractional Investing’, the report revealed that approximately two-thirds of Grip Invest’s investors belong to the millennial demographic. With over 26,000 investors currently active on the platform, Grip Invest sheds light on the transformative potential of fractionalisation, an age-old investing concept revamped for the digital era. Fractional investing enables individuals to own a portion or share of high-value assets.
The report highlights that 60 per cent of orders placed originate from investors under the age of 40, with individuals as young as 21 opting for fractional ownership of high-yield assets. Notably, 77 per cent of platform users prefer a hands-on approach, conducting their investment decisions based on personal research.
Following millennials, Generation X constitutes 20 per cent of investments on the platform. Millennials, born between 1981 and 1996, approach investing with a blend of caution and curiosity. Despite their cautious approach, the average investment value per investor on Grip Invest’s platform exceeds Rs 1 lakh.
Over the past two years, the alternative investment landscape has witnessed increased traction, particularly among early adopters, buoyed by millennials opting for a more risk-adjusted investment strategy compared to traditional risk-averse approaches.
Nikhil Aggarwal, CEO and Founder of Grip Invest, emphasized the significant shift observed in investment preferences among millennials. “Our report reveals a fascinating shift – Millennials are embracing alternative investments due to fractionalisation and market volatility. Grip Invest reflects this, experiencing 20 per cent 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 per cent and enhanced digital access,” Aggarwal stated.
(with PTI inputs)