Millennials turning towards new-age investment instrument fractional investing: Report

The alternative investment space has caught the fancy of young investors, with millennials dominating 60 per cent of investors' base into fractional investments, according to a report by Grip Invest, a digital investment platform.

They are increasingly looking towards fractional asset investing in a bid to diversify their investment portfolios. In its report titled 'Gripping the Boom: Millennial in Fractional Investing', Grip Invest revealed that two-third of all investors on its platform are millennials. At present, Grip Invest has more than 26,000 investors, who have used the platform at least once.

The report focuses on the transformative power of fractionalisation, a 150-year-old investing concept re-imagined for the digital age. Fractional investing allows a person to own a fraction or a share of an asset.

Going by the report, 60 per cent of all orders made are from investors under 40 years of age bracket. Notably, investors as young as 21 years are choosing fractional high-yield assets.

Moreover, 77 per cent of users on the platform prefer the do-it-yourself approach and make investment decisions based on personal research. After millennials with 65 per cent share, 20 per cent of investments on the platform are done by Gen X.

The term millennial is used to describe a person born between 1981 and 1996 and Generation X includes persons born between the mid-1960s and the early 1980s.

Millennials in India often approach investing with a mix of caution and curiosity. Despite their inherent watchfulness, the average value per investor is more than Rs 1 lakh on Grip Invest's platform, the report noted.

In the last two years, the alternative investment space has attracted early adopters and has been made mainstream by millennials, the generation that is choosing a risk-adjusted approach to investing, as opposed to the erstwhile risk-averse approach.

"Our report reveals a fascinating shift - Millennials are embracing alternative investments due to fractionalisation and market volatility. Grip Invest reflects this, experiencing 20 per cent month-on-month growth on the platform. A considerable strata of retail investors are opting for fractionalisation, due to Sebi reducing ticket sizes by 90 per cent and enhanced digital access," Nikhil Aggarwal, CEO and Founder of Grip Invest, said.