Young Investors Drive Retail Market Growth as 18-30 Age Group Accounts for 53% of New Additions at Axis Direct

Data from Axis Direct indicates that investors aged 18 to 30 made up 53 percent of new customer additions in FY26, compared to 35 percent in FY22. The data also highlights rising participation from Tier 2 and Tier 3 cities, as well as an increase in participation among young women.

Young investors are increasingly shaping India's retail investment landscape. According to data from Axis Direct, the retail broking brand of Axis Securities, individuals aged 18 to 30 accounted for 53 per cent of new customer additions in FY26. This is a significant rise from 35 per cent in FY22.

The most notable growth came from the 18-24 age bracket, where participation among new customers increased nearly sevenfold between FY22 and FY26. This influx has brought down the overall average age of new customers to 33 years in FY26, down from 37 years in FY22.

Geographically, the trend extends beyond major metropolitan areas. Approximately 60 per cent of Axis Direct’s young investors hail from Tier 2 and Tier 3 cities, while 40 per cent are from metros. Traditional investor hubs such as Mumbai, Thane, Pune, Delhi, Ahmedabad, Bengaluru, and Kolkata remain active. However, cities like Nashik, Nagpur, Ludhiana, Solapur, Aurangabad, Patna, Indore, Lucknow, Raigarh, and Hooghly have also registered notable growth in young investor participation.

Furthermore, the number of young investors from rural areas increased by 2.5 times in FY26 compared to FY22, pointing to a wider geographical footprint for young retail investing across the country.

Participation among young women aged 18 to 30 has also expanded. Their contribution to total new customer additions rose to 13 per cent in FY26 from 6 per cent in FY22, backed by an almost threefold increase in absolute numbers over the period. Within the 18-30 age demographic specifically, the share of women in new customer additions increased from 18 per cent to 24 per cent.

Regarding asset preferences, equities remain the primary choice, with roughly 95 per cent of young investors participating in the equity segment. Large-cap stocks lead the category, attracting about 60 per cent of young investors, followed by small-cap stocks at 28 per cent and mid-cap stocks at 25 per cent. While delivery-based investing is more common, nearly 30 per cent of young investors engaged in intraday trading in FY26.

Sector-wise, banking emerged as the most traded sector, capturing about 20 per cent of young investors. This was followed by telecom services at 19 per cent and finance at 12 per cent. Trading activity also extended to power, automobiles, IT, capital goods, aerospace and defence, and pharmaceuticals.

Among young investors participating in mutual funds, 76 per cent prefer Systematic Investment Plans (SIPs), while 42 per cent opt for lump-sum investments, according to Q1 FY27 data. The average SIP investment ranges from ₹3,000 to ₹4,000, whereas the average lump-sum investment stands at approximately ₹2 lakh to ₹3 lakh.

"The shift toward younger retail participation, particularly from Tier 2 and Tier 3 cities, reflects a broader financial inclusion trend in India. With increasing adoption among young demographics and women, brokerage platforms and financial service providers must tailor their digital offerings and educational initiatives to support this growing, geographically dispersed investor base over the long term." — Dr. Shishir Gupta, Founder & CEO, StartupLanes