The alternative investment space has attracted early adopters and has been made mainstream by millennials dominating 60% of investors’ base into fractional investments, a recent report by Grip Invest reveals.
The report titled ‘Gripping the Boom: Millennial in Fractional Investing’, focusing on the transformative power of fractionalisation highlighted the shift.
It highlighted that the investors are as young as 21 years, and are choosing fractional high-yield assets.
Some other key outcomes of the report were that the 60% of all orders made on the Grip Invest platform are from investors under the age of 40 years. Further, 9 out of 10 investors make decisions based on personal research.
After Millennials at 65% share, 20% of investments are done by Gen X, it said.
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, the report said.
It highlighted that two-thirds of all investors are millennials and 76.8% of users prefer the do-it-yourself (DIY) approach to researching the right fractionalised investment option for themselves.
Speaking on the trend, Nikhil Aggarwal, CEO and Founder of Grip Invest said, “Millennials are embracing alternative investments due to fractionalisation and market volatility. Grip Invest reflects this, experiencing 20% 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% and enhanced digital access.”
“As India’s investor base expands in volume and awareness, we reckon it’s fitting for us to adopt the role of educators and facilitators, that connect avid investors with high returns and affordability, for a personalised investment journey, where access is democratised,” he added.
What is fractionalisation and how it works?
Fractionalisation lets investors dip their toes in high-ticket-size assets. The fractional investing has enabled retail participation in sectors like private equity and even art and collectibles and introduced new asset classes.
The concept is increasingly becoming popular and changing the way investors access various traditional investment options like mutual funds, gold and real estate making it more democratised.
Technology has also made the fractionalisation a viable business model.
