Young investors are emerging as a significant force in the retail investment landscape, with those aged 18-30 accounting for 53 per cent of new customer additions at Axis Direct in FY26, up from 35 per cent 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. The influx of younger investors also brought down the average age of new customers to 33 years in FY26 from 37 years in FY22.
Smaller cities gain
The trend is extending beyond India’s major metros. Around 60 per cent of Axis Direct’s young investors are from Tier 2 and Tier 3 cities, compared with 40 per cent from metros, according to the data.
Mumbai, Thane, Pune, Delhi, Ahmedabad, Bengaluru and Kolkata remain key investor hubs. However, Nashik, Nagpur, Ludhiana, Solapur, Aurangabad, Patna, Indore, Lucknow, Raigarh and Hooghly have also witnessed significant growth in young investor participation.
The number of young investors from rural areas increased 2.5 times in FY26 compared with FY22, indicating a wider geographical footprint for young retail investing.
Young women aged 18-30 are also accounting for a larger share of new investors. Their contribution to total new customer additions increased to 13 per cent in FY26 from 6 per cent in FY22, supported by an almost threefold increase in their absolute numbers over the period.
Within the 18-30 age group, the share of women in new customer additions rose to 24 per cent from 18 per cent, according to Axis Direct.
Equities lead
Equities remain the preferred investment segment among young investors, with approximately 95 per cent participating in the equity segment.
Large-cap stocks are the most preferred category, with around 60 per cent of young investors trading in this segment, followed by small-cap stocks at 28 per cent and mid-cap stocks at 25 per cent.
While delivery-based investing remains more prevalent, nearly 30 per cent of young investors participated in intraday trading in FY26.
Banking was the most traded sector, with around 20 per cent of young investors trading in the segment, followed by telecom services at 19 per cent and finance at 12 per cent. Participation also spans power, automobiles, IT, capital goods, aerospace and defence, and pharmaceuticals.
SIPs gain preference
Among young investors investing in mutual funds, 76 per cent prefer SIPs, compared with 42 per cent 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.
According to Axis Direct, the 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.
Published on August 20, 2026
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