Market Insights Financial Wealth Management

Digital Investment - India

India

Total transaction value in the Digital Investment market is projected to reach €137.30bn in 2024.
Total transaction value is expected to show an annual growth rate (CAGR 2024-2029) of 3.81% resulting in a projected total amount of €165.50bn by 2029.
Neobrokers dominates the market with a projected total transaction value of €119.00bn in 2024.
The highest cumulated transaction value is reached in the United States (€1,652,000.00m in 2024).

Key regions: United Arab Emirates, Switzerland, Singapore, United Kingdom, Europe

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Analyst Opinion

The Digital Investment market in India has been experiencing significant growth and development in recent years.

Customer preferences: Indian customers have shown a growing interest in digital investment platforms due to their convenience and accessibility. With the increasing penetration of smartphones and internet connectivity in the country, more and more individuals are looking for digital solutions to manage their investments. Digital investment platforms offer a user-friendly interface, real-time information, and the ability to invest anytime and anywhere. This appeals to the tech-savvy Indian population, especially the younger generation who are more comfortable with digital transactions.

Trends in the market: One of the key trends in the Indian digital investment market is the rise of robo-advisors. These automated investment platforms use algorithms to provide personalized investment advice and manage portfolios on behalf of customers. Robo-advisors have gained popularity in India due to their low fees, transparency, and ease of use. They are particularly attractive to first-time investors who may not have the knowledge or experience to make investment decisions on their own. Another trend in the market is the increasing popularity of mutual fund investment through digital platforms. Mutual funds have traditionally been a popular investment option in India, and digital platforms have made it easier for individuals to invest in mutual funds. These platforms offer a wide range of mutual fund schemes and provide tools to compare and analyze different funds. They also offer features like automatic SIP (Systematic Investment Plan) and goal-based investing, which appeal to investors looking for long-term wealth creation.

Local special circumstances: India has a large population with a significant portion of it being unbanked or underbanked. This presents a unique opportunity for digital investment platforms to tap into this underserved market. Digital platforms offer a convenient and cost-effective way for individuals to invest and grow their wealth, even if they don't have access to traditional banking services. This has led to the emergence of digital investment platforms that cater specifically to the needs of the unbanked population, providing them with access to investment opportunities and financial inclusion.

Underlying macroeconomic factors: India's growing economy and rising disposable income have also contributed to the development of the digital investment market. As more individuals have discretionary income, they are looking for ways to invest and grow their wealth. The digital investment market provides them with a variety of investment options and allows them to diversify their portfolios. Additionally, the government's push for financial inclusion and the digitization of financial services have created a favorable environment for the growth of the digital investment market. In conclusion, the Digital Investment market in India is developing rapidly due to customer preferences for convenience and accessibility, the rise of robo-advisors and mutual fund investment through digital platforms, the opportunity to serve the unbanked population, and the underlying macroeconomic factors such as India's growing economy and rising disposable income. This market is expected to continue its growth trajectory as more individuals embrace digital solutions for their investment needs.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on transaction values / revenues / assets under management and user data of relevant services and products offered within the FinTech market.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players, industry reports, third-party reports, publicly available databases, and survey results from primary research (e.g., the Statista Global Consumer Survey). In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending, population, internet penetration, smartphone penetration, credit card penetration, and online banking penetration. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited for forecasting digital products and services due to the non-linear growth of technology adoption.

Additional notes:

The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.