According to a report by Benori Knowledge, a new-age provider of custom research and analytic solutions, the digital investment market shows an upward curve in India. In the last three years, 81 per cent of digital investors commenced their investment journey, and the majority of them are millennials who form 93 per cent.
They prefer digital platforms as such avenues are convenient and offer a wider range of options such as higher returns on their investments. Interestingly, women make up almost 40 per cent of digital investment. Geographically, residents of urban areas make up the majority. Over 60 per cent of users come from Tier 1 cities.
Advancements in digital technology coupled with the new norm brought about by the Covid-19 pandemic triggered the growth. About 72 per cent expect to receive higher returns from digital platforms. Almost 62 per cent invest in Mutual funds while 51 per cent prefer stocks. For 51 per cent of investors, the aim is to save money for the post-retirement time while 25 per cent sees digital investments as a way to reduce taxable income. As per the report, India’s wealth management segment is expected to hit $14.3 billion by 2025, growing at a 5-year CAGR of 22.4 per cent.
Digital Investments have their limitations, too. Data security is one of them. Investors are concerned about privacy issues, lack of relevant information, and unreliability.
