With the equity market surging to record highs, there have also been record demat openings in January. Nithin Kamath, Founder and Chief Executive Officer of Zerodha said that there is a lot of interest coming in from the 20-30 year age group.
“There is a lot of interest and this is interest is coming from a lot of 20-30-year-olds. So while it might seem like a large number of accounts, this does not really bring in a lot of AUM as such. The majority of these people come and put in small amounts of money. So, it adds a lot of users, and India has the largest population of 20-30-year-olds in the world. So, yes, we have a big potential audience that can open trading in demat accounts in this age group,” he said in an interview with CNBC-TV18.
There is a lot of interest in direct and indirect mutual funds, Kamath added.
“We are also at all-time highs in terms of new mutual fund investors and AUM being added. If you ask any of the new age platforms which are enabling mutual funds, they would all say that they are at all-time highs in terms of participation and in terms of new flows coming in. However, these flows because they are smaller in value, they do not add up too much. But the interest is there in both direct and indirect mutual funds in the 20-30-year-old crowd which is currently opening accounts and getting started investing in the markets.”
Kamath also said that the growth in addition of women investors has not picked up.
“Women has not really picked up. We are trying to see if we can enable more women by having specific education catering to women. The issue with woman accounts again is most of the time it is managed by father and husband. So, it is very tough to figure what is the actual count of woman traders in this country and if it is going up or down."Watch the video for more