Users invested an average of 70,000 in all asset classes in FY21: Paytm Money

NEW DELHI : Investors in digital wealth management company Paytm Money Ltd invested an average of ₹70,000 in different asset classes during fiscal year 2021, while more than 80% of investors on the platform are under 35 years old. These are the main findings of Paytm Money’s annual report “How the Young Indian Millennial is Investing”.

The wholly-owned subsidiary of digital financial services platform Paytm, which has more than 6 million users, also revealed that more than 210,000 demat accounts were opened in less than eight months between August last year and March 2021.

Commenting on the survey results, Varun Sridhar, CEO of Paytm Money, said, “Over the past year, we have seen a transformation in the way our users invest. Through education and an open dialogue about investing, we’ve been able to open up more users to the idea of ​​wealth creation, as well as products that help build a strong portfolio. We believe that the management of wealth in the country must be democratized, adopted and adopted by all. “

In 2020, over 5,000 people attended the Paytm Money ETF Masterclass, a webinar series on exchange-traded fund (ETF) strategies and information, led by industry experts.

According to the report, more than 25% of stock users invested around ₹28,834 on average in ETFs. Additionally, F&O (futures and options) as an investment option has also gained popularity among Paytm Money users over the past year, as have IPOs on the platform.

In terms of stock trading on the platform, 210,000 accounts were opened until March 31, 2021. “Over the past year, investors have made an average of 10 stock trades per month and hold ₹46,000 shares in the account, while they added more than ₹74,000 to invest. Many users traded or invested in 15 stocks and 41% traded intraday, ”the company said in the report.

Additionally, users have invested the most in Tata Motors over the past year, and it is security that attracts the largest number of investors other than Yes Bank, Vodafone Idea, SBI, and ONGC.

In terms of investor preference, the report found that while over 64% of users have invested in mutual funds, nearly 28% have invested in stocks and the rest in digital gold.

Some of the platform’s most popular mutual funds over the past year include Axis Bluechip Fund (growth plan), in which around 120,000 users have invested more than ₹200 crores. More than 80% of these users have chosen the systematic investment plan (SIP) route to invest in the fund. Other popular funds were the SBI Small Cap Fund (direct growth) and the Parag Parikh Flexi Cap Fund (direct growth).

In addition, the most encouraging finding that the company has made in recent months is the rapid increase in the number of women investors on the platform. “Paytm Money has seen the number of female investors double on the platform; they are experimenting and investing in different wealth products, ”the company said in a statement.

According to Paytm Money, while most of India has shown initiative in starting its journey of building wealth on the platform, around 44% of the total user base is in five states – Maharashtra, Gujarat, Uttar Pradesh, Delhi and Karnataka.

Paytm Money offers a range of investment products, such as direct mutual funds, stocks, IPO, F&O, ETF, National Pension System (NPS) and digital gold on its platform.

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Michael J. Birnbaum

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