Young investors aged 18-30 are emerging as a significant force in India's retail investment landscape, with their contribution to new customer additions at Axis Direct reaching 53% in FY26, up from 35% in FY22, according to the retail broking brand of Axis Securities. The sharpest growth has come from investors aged 18-24, whose participation among new customers increased nearly sevenfold between FY22 and FY26. This demographic shift has also brought down the average age of new customers to 33 years in FY26 from 37 years in FY22.
The trend extends beyond India's major metros, with 60% of Axis Direct's young investors coming from Tier 2 and Tier 3 cities, compared with 40% from metros. Mumbai, Thane, Pune, Delhi, Ahmedabad, Bengaluru and Kolkata remain key investor hubs, but smaller cities including Nashik, Nagpur, Ludhiana, Solapur, Aurangabad, Patna, Indore, Lucknow, Raigarh and Hooghly have also witnessed significant growth. Young women aged 18-30 are accounting for a larger share of new investors, with their contribution to total new customer additions increasing to 13% in FY26 from 6% in FY22, supported by an almost threefold increase in their absolute numbers. Within the 18-30 age group, the share of women in new customer additions rose to 24% from 18%. Rural participation has also increased substantially, growing 2.5 times compared to FY22.
Equities remain the preferred investment segment among young investors, with approximately 95% participating in the equity segment. Large-cap stocks are the most preferred category, with around 60% of young investors trading in this segment, followed by small-cap stocks at 28% and mid-cap stocks at 25%. While delivery-based investing remains more prevalent, nearly 30% of young investors participated in intraday trading in FY26. Banking was the most traded sector, with around 20% of young investors trading in the segment, followed by telecom services at 19% and finance at 12%. Participation also spans power, automobiles, IT, capital goods, aerospace and defence, and pharmaceuticals.
Among young investors investing in mutual funds, 76% prefer SIPs compared with 42% who opt for lump-sum investments, as of Q1 FY27, according to Axis Direct. The average SIP investment ranges between ₹3,000 and ₹4,000, while the average lump-sum investment is around ₹2 lakh-₹3 lakh. This data points to an evolution in India's retail investment landscape, with young investors entering markets earlier, participation spreading beyond major metros and women accounting for a growing share of the new investor base.
