Paytm Money had more millenials, women investors in the past one year

Average investment per user on Paytm Money is over Rs 70,000, with over 64% investing in mutual funds, 28% in equity, and the rest in digital gold

As much as 60 per cent of stocks and mutual funds platform Paytm Money users are below the age of 30, its annual report "How the young Indian millennial invests," has revealed.

Paytm Money is a wholly-owned subsidiary of initial public offering-bound Paytm. The report details out how Paytm Money users invested in various wealth products on the platform over the last year.

The report found a rapid increase in the number of women investors on the platform, and women invest double the money of male investors.

The average investment per user on Paytm Money is over Rs 70,000. While over 64 per cent of users have invested in mutual funds, close to 28 per cent have invested in equity, and the rest in digital gold.

Overall, over 60 per cent users on the platform are first time investors.

"In the past 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,” said Varun Sridhar, CEO-Paytm Money.

Around 44 per cent of the total user base belong to five states including Maharashtra, Gujarat, Uttar Pradesh, Delhi, Karnataka, and over 60 per cent users come from tier 2 and tier 3 cities.

Some of the most popular mutual funds on the platform during the last year include Axis Bluechip Fund (Growth Plan), where almost 120,000 users have invested more than Rs 200 crore in the fund and over 80 per cent 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, according to the report, has opened 210,000 accounts till March 31, 2021. In the last year, investors on average made 10 transactions in the stocks per month and held 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 per cent traded intraday.

Users of Pautm Money 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) investing is on the rise, and the company has conducted multiple Masterclasses on ETFs. According to the report, more than 25 per cent of equity users on Paytm Money invested in ETFs on an average of about Rs 28,834. Additionally, Futures and Options (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.  

Another rising category- digital gold- had users invest Rs 1,800 in each order placed, on average, and Gold users on the platform bought 1.27 grams of gold on average, and gifted more than 33,000 grams of gold. Over 2 lakh users also created a systematic investment plan (SIP) in gold.