Investing in stocks and shares is in vogue. Especially with the advent of online investment apps, anyone with a smartphone and a bank account can invest. And Gen Z has taken advantage of it. It has been observed that this generation is investing actively and in a variety of instruments.
One thing that comes to mind when we hear Gen Z is that they are an unserious generation. But is that true when it comes to investing as well? Let us take a look at how Gen Z is investing differently from the older generation and changing the landscape of modern-day investment.
- Gen Z Starts Investing At A Young Age
Thanks to the access to financial knowledge through the internet, Gen Z understands the importance of investing at an early age. This generation is also more likely to try new things and take charge of their own financial growth. Earlier, investing meant having access to the right broker and financial knowledge. But today, one can easily invest through an investing app, and this has given the tech-savvy Gen Zs the confidence to invest at a young age.
- More Ready To Invest In Modern Instruments
Earlier, people would invest in the same few instruments available to them. Every generation before this invested in trustworthy long-term investments like property, fixed deposit, insurance, gold, etc. Gen Z, who are not afraid of short-term experiments and changing financial goals easily, are more likely to invest in risky or lesser-known instruments like cryptocurrency or non-fungible tokens.
It’s not like this generation does not make long-term investment in conservative instruments, but they may be more ready to gradually expand their risk appetite and try different instruments rather than sticking to one or a few.
- Takes Investment Advice From Social Media
Where would our parents go for financial advice? They would hire a CA, consult an experienced friend, colleague or someone trustworthy before making a decision. Not Gen Z, though! This generation does take inspiration from parents and elders, but is more likely to believe something through social media. A millennial might be hesitant to take advice from a social media influencer, but a Gen Z will consider the same person as their source of research.
- Prefers Small-Scale Investing Through Apps
The main reason Gen Z has caught on to the investing trend is because of online investing apps. All you need to do is download a stocks investment app, make a Demat and trading account and start investing. The best thing about these apps is that you can start investing with a minimal amount. Gen Z uses these features to their benefit; they make small-scale and often short-term investments first until they get comfortable with the game and start investing big.
This is how Gen Z is turning the tides with their bold approach to investing. They are not afraid to try out new avenues, they readily embrace technology, and even though they take financial advice from social media influencers, they start small and invest smart. They are influencing the modern-day investment with their attitude to try new things, while also placing trust in compounding and starting early.