Gen Z and Tier 2/3 Cities Drive Market Growth with Stronger Conviction
Gen Z investors accounted for 50% of the investor base during H1 CY2026, followed by Millennials at 35%, while other demographic groups made up the remaining 15%.
Retail investing is seeing a marked shift towards younger, mobile-first investors, with Gen Z accounting for half of investors during the first half of calendar year 2026, according to Axis Direct’s H1 CY2026 investor insights.
The data points to growing participation from younger investors, non-metro cities and women, alongside a move towards more disciplined and conviction-led investment behaviour.
Gen Z investors accounted for 50% of the investor base during H1 CY2026, followed by Millennials at 35%, while other demographic groups made up the remaining 15%.
Digital platforms continued to dominate trading activity, with 76% of investors trading online and 60% executing trades through mobile applications. Mobile trading also recorded a 20% year-on-year increase, highlighting the growing preference for app-based investing.
The expansion of retail participation was particularly visible beyond the major metros. According to the data, 50% of new acquisitions came from Tier 2 and Tier 3 cities, indicating a widening geographical base for retail investing.
Women also accounted for a growing share of new investors, making up 27% of new acquisitions. Around half of these new female investors belonged to Gen Z.
The data also points to a growing preference for direct, self-directed trading. As many as 47% of Unique Trading Customers came from an unmapped customer base. Of these investors, 90% traded through online channels, while 67% identified the mobile application as their primary trading tool.
Investment amounts, meanwhile, remained relatively stable through the first half of the year. Average monthly SIP investments stayed between ₹3,000 and ₹4,000, while average lumpsum investments remained in the ₹90,000 to ₹1 lakh range.
Banks, finance and information technology emerged as the three sectors recording the highest retail trading activity.
Beyond participation, the data also points to a change in investor behaviour. Retail investors increasingly demonstrated higher conviction by staying invested through market fluctuations, accumulating assets during corrections and gradually increasing their risk exposure as markets recovered.
The trend suggests that retail investors are becoming more comfortable navigating market volatility while relying increasingly on digital tools to manage their investments.
