Paytm announced that its wholly-owned subsidiary 'Paytm Money' launched the annual report: How the young Indian millennial invests. The detailed report charts out how Paytm Money users invested in various wealth products on the platform over the last year. The company is driving wealth creation in the country with users availing investment products including Direct Mutual Funds, Stocks, IPO, F&O, ETF, NPS & Digital gold on the platform. The company’s offerings of giving way to small ticket investments in mutual funds and stocks have contributed to financial inclusion in India.
According to the report, the average investment per user has increased to over Rs 70,000. While over 64% of users have invested in mutual funds, close to 28% have invested in equity, and the rest in digital gold. Paytm Money with its seamless easy to use interface has become an investment destination for 'new to wealth services' youth with over 80% of users being below 35 years of age.
The most encouraging observation that the company has made in the last several 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 who are experimenting & investing in different wealth products.
While most of India has shown initiative in starting their wealth creation journey on the platform around 44 percent of the total user base belong to five states including Maharashtra, Gujarat, Uttar Pradesh, Delhi, Karnataka.
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 Rs 200 crore in this fund and over 80% of these users chose the SIP route to invest in the fund. Other popular funds were SBI Small Cap Fund Direct-Growth, Parag Parikh Flexi Cap Fund Direct-Growth.
Equity trading on Paytm Money has been off to a successful start on the platform. According to the report, it has opened an overwhelming 2.1 lakh accounts till March 31, 2021. In the last year, investors on average did 10 transactions in the stocks per month and hold Rs 46,000 worth of stocks in the account, while they added over Rs 74,000 for investing. Many users traded or invested in 15 stocks & 41% traded intraday. Users invested the most in Tata Motors in the last year, and this is the security attracting the highest number of investor base other than Yes Bank, Vodafone Idea, SBI, ONGC.
Exchange-Traded Funds (ETF) are the next big thing in Indian stock markets according to experts and Paytm Money has made the whole process simple, seamless, simple, and convenient. Investing in ETFs is a cost-effective way to diversify one's portfolio. The company has conducted multiple Masterclasses on ETFs, a first of its kind of an attempt to educate investors more on ETF investments, and they have been a great success. Close to 5000 people attended our Masterclasses conducted by industry experts. According to the report, more than 25% of equity users invested in ETFs on an average of about Rs 28,834. Additionally, F&O as an investment option has also gained massive popularity among Paytm Money users in the last year & 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 democratized, embraced, and adopted by all.”