According to the latest BSE data, the number of accounts held by individuals aged 18-20 years has increased from just 3.4 million as of March 2021 to 16.1 million as of September 30, 2023. Healthy returns from the stock market (post-COVID-19 recession) and the proliferation of investment apps are driving young investors.
Today’s Gen Zers are extremely confident in most things and prefer a “do it yourself” model in most activities, both personal and professional. It is therefore no surprise that young investors are turning to trading through a number of online investment options such as Groww, Zerodha Kite, Kuvera, and Smallcase, to name a few.
“These apps offer tips to grow your money and most young investors are thinking of making money in the short term,” says Association of Mutual Funds of India (AMFI) Registered Mutual Fund Distributor Viral.・Mr. Kothari says. Apart from the need for speed, familiarity with online platforms is driving investment in online apps. “This generation has a lot of trust in online systems and there has been a clear increase in short-term trading by young investors,” he said, giving retail investors a place to meet with research analysts and SEBI-registered individuals. said Ashok Mittal, his mentor and chief of Analystji’s technology platform. Investment advisor. He said SEBI has often raised concerns about “finfluencers” who provide half-baked advice to investors and how their platforms only guide retail investors from qualified individuals. That’s what it means. “Most investors consider the investment period to be one to three days, and today’s young people want quick advice, so phone calls are usually around three minutes,” he says. Masu.
Most young people set aside a portion of their salary and even some of their pocket money in a SIP as they believe it to be a safe and consistent savings mechanism. A young woman who works at a financial news service company says: “I usually invest in SIPs and all my investments are done through Paytm Money. It’s a really great app and gives you a lot of information about mutual funds, stocks, national pension schemes, etc. Redemption of units is also very smooth. She says she started investing in mutual funds SIPs from the moment she started earning an income, and noticed that many of her colleagues were having very active conversations about where to invest their salaries. I did.
The Delhi-based young footballer said he started investing in SIP when he started working, even though the salary was not that much. “I started investing in index funds by watching videos, reading books, and consulting my father.I am a commerce graduate, so I understand the basics, and when it comes to investing, he uses Zerodha and I used his ICICI banking platform.”
Undergraduate students also invest some of their pocket money in SIPs or a small amount in stocks. says the 18-year-old girl, who is studying finance at a commerce college in Mumbai. “I was studying investing as part of my classes and with the help of my parents, I started investing small amounts of money from my pocket money. I used Zerodha because I liked its easy-to-use interface. I invested directly in stocks. However, my parents are also investors, so they encourage me. I read newspapers such as the Economic Times and check the news online to understand where to invest. And I’m doing my own research.”
Another 18-year-old said he started investing with his father. he says: “I invested in 10 shares of TCS and some other Nifty 50 stocks. Over the two-year period, I found that the returns that equity investors are getting are much higher than keeping their money in FDs. So I borrowed 3,000 yen. Sometimes it was 15,000 rupees. My father gave me 20,000 dollars to invest.
Some young people want a quick return on their investments, but not everyone is in a tearful hurry. says Renesh Gandhi, a mechanical engineering student based in Mumbai. “I use simulation apps like Dalal Street that help me understand investing in the stock market without actually investing. You can try investing in “to learn how stocks work.” ” Renesh plans to play the virtual investing game for at least a year before he actually starts investing. Other apps like StockGro offer youth he Rs 10,000. Registration will give him 10 million virtual money and allow teens to get tips on the stock market through live videos and lessons.
These apps also provide basic investment advice that is easy to understand for young investors.
Investment app StockGro offers investment advice in an easy-to-understand format, and so does Paytm Money. “There are so many gyans available on the Paytm Money app, offering so many investment options from mutual funds to index funds to high-quality debt funds that can yield higher returns than FDs. Everything is there,” says the young mutual fund investor.
Young risk-takers are also interested in futures and options because the amounts are usually lower. Ashok Mittal says, “Some young investors have a high risk appetite due to their high salaries and are willing to invest small amounts in futures and options. However, their understanding of derivatives is still low. It’s not expensive.” He said even if the amount is low, the risk of loss is high and young investors need to understand the product before investing.
Some young people do less homework, while others do a lot of homework. “His highly educated IIT, IIM category conducts deep research and creates unique investment strategies with the help of mathematical modules and technology,” says Mittal.
Young people’s participation in IPOs by small and medium-sized enterprises was also seen, and the number of IPOs increased in 2023 compared to 2022. In the third quarter of 2023, there were 21 IPOs in major markets in India, compared to just four in the same quarter of 2023. 2022.
Disclaimer
The views expressed above are the author’s own.
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