The number of accounts held by individuals aged 18-20 years has increased to 16.1 million as of September 30, 2023. Gen Z is confident and prefers a ‘Do it Yourself’ model, leading to a rise in short-term trading through online platforms
The number of accounts held by individuals aged 18-20 years has increased to 16.1 million as of September 30, 2023, from 3.4 million as of March 2021. This growth is driven by the healthy returns of equity markets and the proliferation of investment apps, such as Groww, Zerodha Kite, Kuvera, and smallcase. Gen Z is confident about most things and prefers a ‘Do it Yourself’ model for personal and professional life, leading them to turn towards trading through various online investment options like Groww, Zerodha Kite, Kuvera, and smallcase.
Familiarity with online platforms is driving young investors’ investments through online apps. SEBI has expressed concerns about ‘Finfluencers’ providing half-baked advice to investors, and their platform ensures that only qualified individuals guide retail investors. Most investors look at a 1-3 day investment horizon and their calls are usually for only 3 minutes, as the youth today want quick advice.
Most youngsters are putting aside a part of their salary or pocket money into SIPs as they believe it is a safe and consistent saving mechanism. Young women working in financial news services firms often invest in SIPs and make all their investments through Paytm Money, which provides a lot of information about mutual funds, stocks, and national pension schemes. Undergraduate students are also investing a part of their pocket money into SIPs and small amounts into equity.
Some youngsters are looking for quick returns on investments, but not all are in a hurry. Renesh Gandi, a Mumbai-based third-year mechanical engineering student, uses simulation apps like Dalal Street to understand investment in stock markets without actually investing. Other apps like StockGro offer youngsters Rs. 10 lakh virtual money on registration and teens can get tips on equity markets through its live videos and lessons.
These apps also offer basic investment advice that young investors find easy to follow. StockGro and Paytm Money provide investment advice in an easy-to-understand format, offering a wide range of investment options, from mutual funds to index funds and high-quality debt funds. Risk-taking youngsters also delve into futures and options because the amounts involved are usually low. However, the risk of losing money is high, and young investors need to understand the product before investing.
The highly educated IIT and IIM category do deep research and create their own investment strategy with the help of mathematical modules and technology. Participation of youngsters in IPOs floated by smaller companies is also being witnessed, with the number of IPOs increasing in 2023 compared to 2022.
Conclusion
The number of accounts held by individuals aged 18-20 has increased to 16.1 million as of September 30, 2023, from 3.4 million as of March 2021. This growth is attributed to the healthy returns of equity markets and the proliferation of investment apps like Groww, Zerodha Kite, Kuvera, and smallcase. Gen Z, who prefer a ‘Do it Yourself’ model, is turning towards trading through various online investment options.
SEBI has expressed concerns about ‘Finfluencers’ providing half-baked advice, and their platform ensures only qualified individuals guide retail investors. Most investors look for a 1-3 day investment horizon and their calls are usually for only 3 minutes. Young investors are putting aside a part of their salary or pocket money into SIPs as a safe and consistent saving mechanism. These apps offer basic investment advice and a wide range of investment options, including mutual funds, index funds, and high-quality debt funds.
