- By Aditya Pratap Singh
- Tue, 14 May 2024 06:01 PM (IST)
- Source:JND
Fractional Investment: In a significant development in India's investment landscape, Millenials, individuals born between 1981 to 1986 are contributing 60 percent of the total fractional investment, according to Grip Investment's latest report, "Gripping the Boom: Millennials in Fractional Investing. The report highlights the growing prominence of fractional investing opportunities, especially among Millennials.
This innovative approach to investing is changing the traditional idea of wealth accumulation, giving retail investors unprecedented access to high-yield assets that were previously reserved for institutional investors.
What is fractional investment?
Fractional investing is a concept reimagined for the digital age that allows investors to buy a fraction of high-value assets such as real estate, stocks, or bonds. This lowers the barriers to entry and makes wealth creation more accessible. Participation is enabled. SEBI's recent regulatory adjustment, which reduced the face value of bonds from ₹1,00,000 to ₹10,000 due in April 2024, has been particularly beneficial in democratizing access to such assets for retail investors.
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Fractionalization democratizes wealth creation
The Grip Invest report highlights the transformative potential of fractionalization in democratizing wealth creation, with millennials emerging as the primary drivers of this paradigm shift. With two-thirds of all investors falling under the millennial demographic, the report highlights their growing appetite for alternative investments with risk-adjusted returns over traditional methods.
Fractional investing empowers investors to diversify their portfolios, reduce risk, and explore new avenues for wealth creation. Unlike traditional investment models, which often require significant capital outlay, fractional investing allows investors to start with smaller amounts, making it accessible to a wider segment of the population.
Investors prefer a "do-it-yourself" approach to making investment decisions
Furthermore, the report shows that a significant majority of investors, approximately 76.8%, prefer a DIY approach to researching investment options, underscoring their desire for autonomy and control over their financial decisions. This trend reflects a broader shift toward self-directed investing, facilitated by advances in technology and increased access to financial information.
Nikhil Agarwal, CEO and Founder of Grip Invest emphasized the platform's commitment to democratizing access to wealth creation opportunities through segmentation. He said that SEBI's regulatory adjustments have played an important role in promoting a more inclusive investment ecosystem, enabling retail investors to participate in high-yield, non-market-linked investments that were previously inaccessible to them.
The Grip Invest report highlights the growing popularity of fractional investment opportunities among millennials and the broader implications of SEBI's regulatory adjustments in democratizing access to wealth creation avenues. As investors increasingly embrace fractionalization as a means to achieve their financial goals, the future of investing in India looks more inclusive and accessible than ever.