India’s youth are becoming financially smarter and more investment-savvy, a trend that gained momentum during the COVID-19 pandemic. When market valuations fell sharply, young Indians rushed into the stock market, leading to a surge in retail participation in indices like Sensex and Nifty. Stock market data shows a significant rise in investors since then — and now, mutual funds are also seeing a youth-led boom.
According to a Share.Market report released on International Youth Day, analysing over 6 lakh mutual fund investors between August 1, 2024, and July 31, 2025, 48% of mutual fund investors are aged 18–30. This reflects a generational shift towards long-term wealth creation rather than short-term savings.
Youth Investment Trends
The data reveals that 95% of Gen Z investors start their mutual fund journey with equity funds, showing a clear preference for high-risk, high-reward opportunities. Most young investors display disciplined and consistent investment habits.
State-wise, Maharashtra (16%), Uttar Pradesh (11%), and Karnataka (8%) lead in youth participation. Notably, 81% of these investors come from B30 (Beyond Top 30) cities such as Jodhpur, Raipur, Visakhapatnam, Gorakhpur, Mysore, Jamshedpur, and Kolhapur — proving that this financial shift is not limited to metro cities.
Investment Patterns
- 92% of young investors prefer Systematic Investment Plans (SIPs) for long-term wealth building. The average SIP transaction value is ₹1,000 — 18% less than that of investors over 30.
- 21% opt for lump-sum investments, averaging ₹8,000 per transaction — 30% less than older investors.
- 70% of under-30 investors hold diversified equity categories like value/contra funds and flexicap funds, while midcap and smallcap funds are also highly popular.
Expert View
Nilesh D Naik, Head of Investment Products at Share.Market (PhonePe Wealth), said, “It is inspiring to see the youth of India taking charge of their finances at such a young age. Healthy investment habits will strengthen their long-term journey and help them become confident, financially literate investors.”
With disciplined SIP contributions and a focus on diversification, India’s youth are laying the foundation for a financially secure future — making them the driving force behind the country’s mutual fund growth