‘Sachet’ Investing Hooks Millennials To Stock Markets

INDIA'S STOCK MARKET boom appears unstoppable since the Covid-induced trough. Pan your attention to some striking numbers. In the period between March 2019 and August 31, 2023, retail investors in India shot up from 4.5 crore to 12.7 crore.

August 2023 also set a new record for the stock market, reporting a historic high turnover of ₹16.8 lakh crore, even as mutual fund folios hit an all-time high of 15.42 crore; SIP contributions were the best ever at ₹15,813 crore. Fresh demat accounts in August totalled 31 lakh, another peak. The first five months of the fiscal have seen the largest average daily turnover in derivatives. New, particularly young investors, are the force behind this boom driven largely by simplified, ‘sachet’ investing and an extended bull run. Rajiv Ranjan Singh captures the phenomenon and its implications.

If simplified, ‘sachet’ investing is making it easier to own stocks, yet another innovation is making it easier to own cars. Car subscription — the equivalent of car ownership by ‘sachet’ — is taking roots faster than we can imagine. No down payment, no service cost, no insurance, no taxes. As car subscription takes away the bulk of the headache of vehicle ownership, the ‘subscriber’ only needs to take care of fuel costs, besides the monthly subscription. India is seeing interest in the phenomenon. Car subscription accounts for 30% of all automobile sales in the U.S. and 25-30% across Europe. India’s nascent market is at 1% right now as Maruti Suzuki, Hyundai India, Mahindra’s Quiklyz, ORIX Auto and Revv offer subscriptions. Astha Oriel dives into the business model to explain why it’s a win-win for all — buyers, car companies and subscription firms.

Meanwhile, India’s consumption boom and local manufacturing is causing an unprecedented demand for strategic minerals. Just from the transportation sector, demand for lithium could grow 51 times by 2040; 31 times for cobalt and 20 times for nickel. If India’s ambitious transition from thermal to solar and wind power materialises, this demand could grow manifold.

As the country hunts for vital minerals such as lithium, cobalt, nickel, molybdenum, vanadium and light rare earth elements with renewed vigour, Joe C. Mathew taps the excitement and the challenge ahead.

Fortune India’s special package this issue is our annual offering — India’s Best CEOs. There are 24 of them in this edition. HUL’s Sanjiv Mehta’s focus on innovative and targeted products for the many Indias within India made him the Jury’s choice for ‘Best Of The Best’ CEO. At Larsen & Toubro, S.N. Subrahmanyan’s laser-sharp focus on growth, efficiency and digitisation makes him the Best CEO among super-large companies. Our special gratitude to the power-packed jury that deliberated extensively for over two hours to select the top CEOs who made the greatest impact with their actions on their companies and industries in FY23. The package kicks off with V. Keshavdev’s insightful overview.