Mutual funds appeared to be a preferred investment choice for millennials investors. This has been captured by Paytm Money’s report: “How the young Indian millennial invests”.

The report, which charts out how Paytm Money users invested in various wealth products on the platform over the last year, showed that investor on an average invested ₹70,000 in different asset classes in FY’21. Among them, mutual funds top with 64 per cent while close to 28 per cent have invested in (direct) equity and the rest in digital gold.

As of end March 2021, Paytm Money had over 70 lakh users across the country, and over 80 per cent of its users are below 35 years of age, sources said, adding that on an average a Paytm user is 28 years old.

Some of the most popular mutual funds on the platform during the last year include Axis Bluechip Fund (Growth Plan), where almost 1.2 lakh users have invested more than ₹200 crore in this fund and over 80 per cent per cent of these users chose the SIP route to invest in the fund.

Other popular funds include SBI Small Cap Fund Direct-Growth and Parag Parikh Flexi Cap Fund Direct-Growth.

2.1 lakh demat accounts

In less than eight months since it’s launch in August last year, Paytm Money had as of end March 2021 opened 2.1 lakh demat accounts. Nearly 44 per cent of the total users of Paytm Money, an investment platform and a wholly owned subsidiary of IPO-bound Paytm, are from five States — Maharashtra, Gujarat, Uttar Pradesh, Delhi and Karnataka.

According to it, over 60 per cent of its users are from tier-II and tier III cities.

41% do intra-day trading

In the last year, investors on average did 10 transactions in the stocks per month and hold ₹46,000 worth of stocks in the account, while they added over ₹ 74,000 for investing. Many users traded or invested in 15 stocks and 41 per cent traded intra-day.

F&O, IPOs gaining traction

According to the report, more than 25 per cent of equity users invested in ETFs on an average of about ₹28,834. Additionally, F&O as an investment option has also gained massive popularity among Paytm Money users in the last year and so have IPOs on the platform.

Varun Sridhar, CEO - Paytm Money said, “In the last one year we have seen a transformation in the way our users invest. Through education, open dialogue on investments, we have been able to open up more users to the idea of wealth creation along with products that help in building a strong portfolio. We believe that wealth management in the country needs to be democratised, embraced, and adopted by all.”