More To get returns, millennials are investing in new products instead of traditional investment mediums. In this series, millennials are investing heavily in bonds. According to the report 'Gripping the Boom' of platform Grip Invest, there has been a big change in the investment behavior of millennials (i.e. today's youth). They are investing in new ways thoughtfully, instead of traditional ways of saving. They are also getting the desired returns in new investment mediums.
The trend increased due to reduction in investment amount
Changes in regulations such as lowering the minimum investment from Rs 10 lakh to Rs 10,000 have accelerated these trends. This is in line with estimates by Crisil that India's corporate bond market will double to Rs 100-120 lakh crore by 2030. According to the report, millennials account for 63 per cent of all corporate bond investors. The average investment has grown 1.8 times between 2023 and 2024. This has led to a 200 per cent increase in corporate bond investments, with grip investment in this category reaching Rs 450 crore. The number of repeat investors in 2024 has quadrupled, indicating that investors are taking interest in corporate bonds.
Participation of women also increased
Among millennials, women's participation in corporate bond investments has increased by 52% between 2023 and 2024. These figures reflect the growing inclination of women investors towards corporate bonds, which typically build diversified, balanced and risk managed portfolios. This is not surprising as the number of women investors choosing corporate bonds as their first investment has increased by 54% between the first and second quarters of 2024. Corporate bonds are attracting investors from different socio-economic classes, and not just confined to metros anymore. Investments in corporate bonds have been made from over 3000 pin codes and the top 10 cities have contributed to just 43% of the total investments. This can be attributed to the combination of attractive return-tenure-rating on corporate bonds.
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