Fractional Investment: A report revealed how people are changing their investment methods. All this is happening because of fractional investment. Things in which earlier people could not invest directly, now you can invest money in them also.
What is Fractional Investment: There is a continuous change in the way of investment among the youth. In the last few years, the number of people investing in mutual funds has also increased rapidly. A report has revealed that youth are continuously changing their investment methods. Millennials (young people born between 1981 and 1996) are bringing a big change in the way of investing. By adopting a new investment method called ‘Fractional Investing’, the youth is investing the money they earn in different things. According to the report of Grip Invest, about 60% of those who invest fractionally are youth.
What is fractional investing?
‘Fractional Investing’ is a good option for people who want to invest in things outside the stock market. In this you do not need to buy anything completely, rather you can buy a small part of it. This share could be of some expensive art, of an old car, of a big commercial property or even of shares in a big technology company. If you understand this in simple language, then you can easily invest in big things with less money.
The focus of 21 year old youth has also increased.
The recently published report ‘Gripping the Boom: Millennials in Fractional Investing’ has revealed how people are changing their investment methods. This is happening due to fractional investment. Things in which earlier people could not invest directly, now they can invest a little money in them. Now investments can be made in private equity, art and collectibles. 60% of transactions on Grip Invest’s online platform are done by people below 40 years of age. Not only this, the youth of 21 years of age are also investing in things which give more profit.
Investors prefer to invest after doing their own research.
This report revealed that young investors are showing interest in handling their investments themselves. 77% investors preferred to take investment decision by doing their own research. Such investors believe in treading carefully. They are taking a lot of interest in trying fractional investment. Not only Millennials but also people of Generation X are taking interest in this type of investment. 20% of the total investment on this platform is made by people of Generation X.
Limit reduced from Rs 1 lakh to Rs 10,000:
Nikhil Aggarwal, Founder and CEO of Grip Invest, says that this report has made it clear that with less investment, people are focusing on other options. Due to market fluctuations, Millennials are focusing on other investment options. Due to SEBI reducing the minimum investment amount by 90% and improving online facilities, a large number of common investors are now turning to fractional investment. Let us tell you that earlier this limit of investment was one lakh rupees. Which SEBI has now reduced to Rs 10 thousand.
Possibility of good earning with little risk.
In the last two years, the interest of people between the age group of 30 to 45 in investment has increased. Earlier people used to prefer traditional investments with low risk. But now they are turning towards such investments which can yield good earnings with little risk. This is the reason why everyone’s eyes are on alternative investment. He said that the first reason for change in investment methods is the fluctuations in the market and the second reason is the ease of investment methods. Earlier only a few people were able to make alternative investments. But SEBI has changed the rules.
(Disclaimer: businessleague does not advise any kind of investment. Before making any kind of investment, please take expert advice.)
