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A study released by CAMS and CII on millennial investors reveals that 60% of the total millennial investors have invested in mutual funds through regular plans with assistance from mutual fund distributors including individual MFDs, NDs, banks and others.
Of the total 76.57 lakh new millennial investors who have entered the industry between FY 2019 and FY 2023, over 46 lakh millennials have invested in regular plans.
Further analysis shows that individual MFDs account for 18% of the total millennial investors i.e. 14 lakh investors have opted to invest through individual MFDs. NDs and PSU banks followed individual MFDs with proportion of 14% and 13%, respectively.
However, the proportion of millennials working with RIAs which include new age investment platform is 35%, highest across all distribution channels. Close to 25 lakh millennials investors have invested through RIAs.
Just 3.66 lakh investors or 5% of the total millennials have invested directly with the fund houses.
In a report, CAMS pointed out that 95% millennials invest through guided route. “In sharp contrast to the intuitive conclusion that millennials are likely to go the do-it-yourself (direct) way, 95% of millennials have chosen advisors or distributors to begin their MF journey. The relevance of intermediation and advice is very much intact.”
Let us look at this interesting table:
Please note that the study comprises data from CAMS serviced funds houses which account for 70% of the total industry AUM. According to CAMS, millennials are the people born between 1981 and 1996.
