An unanticipated wave of youthful investors has begun trading in the Indian stock market regardless of the after-effects of the pandemic. Usually, seasoned investors seek purchasing opportunities during market downturns. However, the outbreak of the coronavirus astounded financial experts when seemingly raw and young investors fearlessly entered the stock market, investing significantly.
Despite being relatively new to the concept of investments, several young investors are now transacting in shares amid the pandemic. Milan Ganatra, Founder and CEO, 1Silverbullet, explains and shares his knowledge on why India’s Stock Markets became a hot favourite among millennials:-
“According to a recent SBI report, the Indian stock markets have witnessed an increase in retail participation, with almost 45 lakh retail investor accounts opening during this fiscal’s two months. The SBI report stated that share investors increased by a stunning 142 Lakhs in FY21. Additionally, the pandemic forced millions to spend more time sheltered within their homes. This unprecedented situation was ably leveraged by social media influencers and finance content creators who extensively covered the unearthed potential of IPOs, such as the famous Zomato story, thus inspiring and encouraging their young audiences to step into the world of stocks. Furthermore, a cluster of leading Indian startups like Paytm, Nykaa, Mobikwik, and Policybazaar are expected to make their foray into the Indian stock markets shortly, alluring millennial and GenZ investors who tend to be more vested in the consumer technology ecosystem,” says Milan Ganatra.
Explaining what’s making stocks click with India’s youth, Milan Ganatra said, Receptive to New Technologies: Compared to previous generations, millennials and GenZ have been considerably more receptive and adaptive to advanced technologies and are successful in discovering innovative ways to achieve their financial goals. New-age investors between the age group of 20-30 are continually equipping themselves with contemporary financial expertise aided by technological applications and tools. Young investors are now finding it easier to identify beneficial investment avenues with unrestricted access to credible financial information and real-time analytics powered by Artificial Intelligence (AI) and Machine Learning (ML). With exposure to the right tech-driven tools, they are rapidly evolving into savvy investors within a few hours instead of spending years learning the tricks of the trade, as their predecessors did.”
Easy Access to Trading Applications:
“With unparalleled accessibility to reliable trading applications, online trading platforms, databases, and research tools, millennials and GenZ have devised a propitious stock market ecosystem to commence their journey of investment. The stock market landscape in its entirety has undergone a makeover of sorts in recent times, making itself more appealing to new and young investors. Moreover, with the rise of futuristic learning platforms and data-driven financial resources offering authentic research assistance, India’s youth are now equipping themselves with a degree of financial awareness that would stand them in good stead in their future financial endeavours,” Milan Ganatra added.
Decisiveness Backed by Credible Information
Ganatra further said, “The new crop of investors who are actively engaged in the stock market are intensely committed to making decisions regarding acquiring and selling shares on their own. With an enhanced prominence on stock market know-how and supported by numerous renowned educational platforms, millennials and GenZ now have a wealth of information at their disposal throughout their journey within the world of stocks.”
Cutting-edge Tech Broking:
“The stockbroking domain has overseen several developments over the last five years. Today, new and seasoned brokers have reshaped their services, providing specialized solutions to their clients. With increased access to advanced trading platforms, personalized propositions, and comprehensive financial strategies at their disposal, young investors are in advantageous positions to undertake effective investment decisions. With features such as uncomplicated KYC compliances for opening new accounts, investors, new or experienced, can now effortlessly open Demat and trading accounts online at the click of a button,” he added.
“Numerous research websites, applications, and platforms have gathered immense acclaim recently. Compared to yesteryears, they now allow users to conduct technical and fundamental analysis, simplifying research-oriented tasks exponentially. Millennials and GenZ frequently conduct their research online, leveraging tons of highly-credible data in the form of market data, stock research, fact sheets, bar charts, and stock research, among others,” Ganatra explained.
Optimism Concerning the Economy:
He explains, “With young investors earning and investing significantly in equities, they are likely to reap the rewards from sustainable gains through long-term investments. And as the number of working youngsters increases, so will their capability to invest in equities, injecting an air of fresh optimism around the Indian economy.”
“If you happen to be new to the world of investments, exploring equities by formulating long-term plans would be advisable. Exercise patience and invest the funds that you’re willing to spare for a good decade without viewing the Indian stock market as a ‘get-rich-quick’ scheme. Ensure to leverage the plethora of technological tools available today to bestow upon yourself the capability to withstand short-term market volatilities and other uncertainties,” he concluded.