Huge jump in the number of young investors under 30 years of age

New Delhi: Better financial literacy, seamless customer engagement and proliferation of user-friendly digital platforms have led to a surge in the number of young investors, accounting for 70 per cent to 80 per cent of active clients of digital/discount brokers within 18 years. Is. According to Bain & Company’s latest study of the Indian retail brokerage market, the 30 years age group.

Similarly, 70 per cent-75 per cent of newly acquired clients for bank brokers are also under 30 years of age, although the activation rate is lower.

The study said the industry has also seen an increase in participation from investors from Tier 2+ cities, which now account for one-third of cash turnover.

The Indian retail brokerage industry has witnessed significant growth, with industry revenue almost doubling from Rs 14,000 crore in FY2019 to Rs 27,000 crore in FY23, representing a CAGR of approximately 17 percent.

This growth has been fueled by the emergence of India’s affluent and affluent classes as well as increasing financial literacy.

The number of demat accounts has tripled since FY19, reaching an impressive number of 115 million in FY23, thanks to increased interest due to the COVID-19 pandemic.

These are among the findings of Bain & Company’s latest study of the Indian retail brokerage market.

The COVID-19 pandemic served as a turning point for retail participation in the capital markets, with digital-first players revolutionizing the industry.

However, the industry’s average revenue per user (ARPU) declined from around Rs 6,000 in FY20 to Rs 5,000 in FY23.