Millennials are regarded as the most digitally savvy investor group. This generation is very tech savvy. They look for robust digital options and control to build their investment experience. And it’s not surprising that this particular age group has taken advantage of cutting-edge technology tools to foray into the world of investing.
So, how and where are these millennials investing?
“Millennials today are savvy when it comes to investing. They have access to information from a variety of different channels blogs, social media platforms, podcasts, youtube and more. They also understand the importance of investing early,” said Nikhil Aggarwal, Founder & CEO at Grip.
Many of them do consider whether the investing is mapped towards their financial goals and is according to their personal risk profile, he added.
However, the primary investment style for everyone, including millennials, remains the same, which is based on one’s risk tolerance. A key difference in the investing style of millennials is that they prefer online modes of investing over offline, unlike the earlier generations, which prefer the other way around.
“Millenials prefer digital first platforms to invest from. Each generation also has certain industries or companies that investors relate to more and millenials are naturally attracted to digital business models and look for those companies to invest in,” said Nikhil Aggarwal.
Another factor that millennials pay attention to is diversification. They are more open to exploring alternate investment options and they start with smaller ticket sizes. Hence in addition to stocks or FDs, they are exploring investments in crypto, startup equity and high yield fixed income.