Gen Z and Investment

How do Gen Z and investment go together? In this article, we have covered the answers to three questions -  what investment is for Genz, what the meaning of investment is, and where are they investing given the current scenario.

First of all, who are the Gen Z generation? Those born between 1997 and 2015 come under the Gen Z category. There is almost 472 million Gen Z in India, which covers 32% of the world population. You know what investment is.

Investment is the process of putting your money into something when you expect to get returns or profits. Every generation - from baby boomers to Gen Z has invested in anything and everything. Your great-grandfather might have invested in acres of land (pre-independence, of course), your grandfather in gold and similar metal, your father/mother in his business or probably, and you in crypto or any other fashion.

Youngsters today (of course, Gen Z) have indeed been more inclined towards saving than spending. Do you remember the time when our mothers used to save their money in pots or maybe in airtight containers, and our fathers putting all his life savings in the bank as FDs or maybe mutual funds?

But, Gen Z in today’s period, who have access to financial freedom, has been experimenting with investment ideas. They invest substantially, into small businesses, doing what they love, and earning from it. They wish to be in control of their finances and do not want to trust other people handling them. They require perfect counselling regarding where they should invest, what those investment points are, and much more. 

Where are they investing?

Once you get to know how Gen Z and investment go together, the next question to be answered is where are they investing. Now this question would gather a very interesting answer, for there are different sub-options under so many options under where to invest money in India.  

There are some major regions and  -

1. 40% of youngsters invest in a cryptocurrency which is a digital currency, impossible to be forged, and a possible medium of exchange shortly. The famous apps that help you in this investment include CoinDCX and Unocoin.

2. 2/3rd i.e. 73% of this generation has started to invest in stocks, where it is believed to have more male investors than females. Stocks are fixed shares a person invests in and holds a fixed dividend.

3. Since technology has solved a lot of problems for this generation, 35% of them has invested in mutual funds, properly consulting financial advisors. These are collections from different investors used to buy securities.

4. While 18% of the Gen Z population does not know of IPO stocks, 35% have invested in them. It is actually when a private company makes its shares publicly available for purchase. Remember Nykaa’s big fortune story in recent history.

Do you know what the best part of investing is? It’s that the sooner you start, the more you receive. You do not need a pot full of cash (like our mothers) to invest, a small amount (a few thousand, probably) is required. Since we have covered three simple questions here - what the meaning of investment is, how Gen Z and investment work along, and where they are investing - we believe that this article has been useful to you.