Mumbai: Axis Direct, the retail broking brand of Axis Securities, is witnessing a sharp shift in the profile of India’s new retail investors, with younger cohorts emerging as a significant force in market participation. Investors aged 18–30 accounted for 53% of new customer additions in FY26, up from 35% in FY22.

The most striking growth has come from the 18–24 age group. The data highlights that participation of new customers in this cohort increased nearly sevenfold between FY22 and FY26. The growing influx of younger investors has also brought down the average age of new customers from 37 years in FY22 to 33 years in FY26.

The shift is extending beyond India’s major metros. Around 60% of Axis Direct’s young investors are from Tier 2 and Tier 3 cities, compared with 40% from metros. While Mumbai, Thane, Pune, Delhi, Ahmedabad, Bengaluru and Kolkata remain key investor hubs, cities such as Nashik, Nagpur, Ludhiana, Solapur, Aurangabad, Patna, Indore, Lucknow, Raigarh and Hooghly have witnessed significant growth in young investor participation. The trend is also reaching beyond urban centres, with the number of young investors from rural areas increasing 2.5 times in FY26 compared to FY22, reflecting the expanding geographical footprint of young retail investing.

Young Women Emerge as a Growing Investor Cohort

Young women (18-30 years) are also accounting for a growing share of new investors. Their contribution to total new customer additions has increased from 6% in FY22 to 13% in FY26, supported by an almost threefold increase in their absolute numbers over the period.

Within the young investor segment (18-30), the share of women in new customer additions has risen from 18% to 24%, pointing to a steady increase in female participation among younger market participants.

Equities Remain at the Heart of Young Investors’ Portfolios

Young investors show a strong preference for equities, with approximately 95% participating in the equity segment. Large-cap stocks are the most preferred category, with around 60% of young investors trading in this segment, followed by small-cap stocks at 28% and mid-cap stocks at 25%.

While delivery-based investing remains more prevalent, active trading is also gaining traction. Nearly 30% of young investors participated in intraday trading in FY26, indicating growing interest in short-term market opportunities alongside longer-term equity investing.

At a sector level, banking is the most traded sector, with around 20% of young investors trading in the segment, followed by telecom services at 19% and finance at 12%. Their participation spans a wide range of sectors, including power, automobiles, IT, capital goods, aerospace and defence, and pharmaceuticals.

SIPs Point to a More Disciplined Investment Approach

Among young investors investing in mutual funds, 76% prefer SIPs, compared to 42% who opt for lump-sum investments, as of Q1 FY27. The average SIP investment ranges between ₹3,000–₹4,000, while the average lump-sum investment is significantly higher at around ₹2 lakh–₹3 lakh, highlighting a preference for smaller, regular investments among younger investors.

The Axis Direct customer data points to a broader evolution in India’s retail investment landscape. Young investors are entering the markets earlier, participation is spreading beyond the major metros, and women are accounting for a growing share of the new investor base. Together, these trends highlight the emergence of a younger, more geographically diverse and increasingly inclusive retail investor cohort in India’s capital markets.