Millennials, often defined as individuals born between 1981 and 1996, are significantly changing the investment landscape. They have adopted a modern investment tool known as fractional investing to diversify their portfolios and are steadily becoming a dominant player in the alternative investment space. According to a report from Grip Invest, a popular digital investment platform, millennials make up about 60% of all investors in fractional investing.
For the unversed, fractional investing is a concept that allows individuals to invest in high-value assets by purchasing portions or shares of the asset. With this type of investment, you do not need to own the asset outright to benefit from its potential appreciation or income. These range from high-end art and vintage cars to commercial real estate and stocks of tech giants.
A recently published study titled “Catching the Boom: Millennials in Fractional Investing” explores how fractionalization principles are revolutionizing retail investor engagement in areas such as private equity, art, and collectibles. Provides valuable insight into Taka. This innovative approach allows investors to delve into new asset categories. Of particular note is that 60% of all trades on the Grip Invest platform are facilitated by individuals under the age of 40, with some even acquiring fractional ownership of assets promising high yields at the young age of 21. That means some people are considering it.
These indicators show that young investors are showing a strong interest in taking an active role in investment management. The report also noted that 77% of users prefer to do research, supporting this hands-on trend.
Despite their cautious approach to investing, these investors are hedging heavily in their exploration of fractional investing. The average amount invested by investors on the Grip Invest platform is over Rs 1,00,000. This trend supports the credibility of fractional investing as a substantive financial strategy.
Moreover, the growing popularity of fractional investing is not limited to millennials. Generation X also contributes to his 20% of investments in the platform.
Nikhil Aggarwal, CEO and Founder of Grip Invest, said: “Our report reveals an interesting shift: fragmentation and market volatility are driving millennials to embrace alternative investments. , with 20% month-over-month growth on the platform.” With Sebi’s 90 per cent reduction in ticket size and enhanced digital access, a significant section of retail investors are opting for fragmentation. ”
Over the past two years, there has been a significant increase in interest, especially among Millennials, to move from traditional risk-averse investment strategies to those with better risk-adjustment potential. This significant increase in interest and adoption is pushing alternative investments into mainstream focus.
This change can be attributed to two main factors. The first is that market volatility is unpredictable. This situation is gradually driving investors towards alternatives that promise better risk management. Second, the investment environment has become more democratized, allowing a wider range of investors to enter the alternative investment space. This democratization is primarily due to significant regulatory reforms, such as those by SEBI, which reduced investment ticket sizes by as much as 90%, thereby enhancing digital access to alternative investments for the masses.
Grip Invest, a platform that provides access to alternative investment options, is evidence of this growing interest. Currently, the platform has over 26,000 investors who have actively used the platform at least once.
