Younger investors are driving interest in alternative asset classes

A report on fractional investments which was published by Grip Invest, a digital investment platform, stated that alternative investments have enthralled young investors with millennials accounting for 60 percent of the investor base under fractional investments. They are fast moving towards fractional asset investing in a bid to diversify their investment portfolios.

Two-thirds of investors on its platform are millennials, according to a report termed 'Gripping the Boom: Millennial in Fractional Investing'.

Currently, Grip Invest has over 26,000 investors who have availed of this service at least once.

This report examines fractionalisation, a concept of investment, that has been in use for 150 years, and now has been transformed for the digital age. Fractional investing allows the ownership of fractions of shares in an asset.

According to this report, 60% of all orders made are coming from investors younger than 40 years. However, the youngest investor is just 21 years old and is keen on fractional high-yield assets.

No less than 77 percent of the users of the platform prefer a do-it-yourself model to make investment decisions from personal research.

After the millennials with a share of 65%, 20 % of investments conducted through this platform are by Gen X users.

The term millennial refers to a person born between 1981 and 1996; it includes Generation X, which is defined as persons born approximately between the mid-1960s and the early 1980s.

The millennials in India are commonly hesitant but curious when it comes to investing money. The report also mentions that the average value per investor would be more than Rs. 1 lakh on Grip Invest's platform.

It's been a buzzword for the last two years, bringing a few more early adopters by millennials. This generation seems to have chosen to take a different, risk-adjusted investment approach, leaving behind the previous generation's risk-averse mindset.

"Our report indicates a fascinating change - the Millennials have adopted alternative investments because of fractionalisation and market volatility. A huge stratum of retail investors has shifted to fractionation efficiency because of the 90 percent slope of ticket size reduction by Sebi and access through enhanced digital means," Nikhil Aggarwal, CEO, and Founder of Grip Invest, commented.