Building wealth together: A guide to joint investment accounts for kids
In the realm of financial education, the significance of imparting fundamental money management skills to children at an early age cannot be overstated. As leaders in the financial sector, executives understand the pivotal role that proactive financial education plays in shaping future generations. One notable strategy in this endeavour is the opening of investment accounts for children, a pathway towards instilling financial responsibility and fostering long-term financial acumen.
If you want to crunch some numbers, the total assets under management of the Indian mutual fund industry stood at ₹54,54,214 crore. Over8.2 crore SIP accounts are being held by retail investors through which they invest regularly in various Indian mutual fund schemes offered by Asset Management Companies (29th February 2024).
Also Read: Your Questions Answered: What are the benefits of child investment plans?
According to the NSE, over 120 million investors were registered in the last five years since 2019. More than 5.4 million investor accounts were added in January 2024. According to the BSE, the number of registered investors stood at 161 million as of 9th February 2024. These numbers give you a fair idea of the size of the market that we are dealing with.
This shift towards equities, especially through mutual funds, has been at an accelerated pace with the last ₹10 trillion added in just 12 months compared to the first ₹10 trillion that took five decades. It is clear that there has been a mindset shift among Indian households that has led to money shifting from savings accounts, fixed deposits, and gold towards equities and mutual funds.
In September 2023, the share of retail investors, including individual domestic investors,
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