“They are experimenting with every financial asset available,” Verma said.
IPOs are a notable trend, alongside small-cap investments, as Gen Z actively diversifies its portfolios.
Their willingness to embrace risk is a key characteristic of this demographic.
What sets Gen Z apart is their long-term approach.
With investment horizons of 30-40 years, they have the freedom to take higher risks without the immediate pressure of short-term financial goals.
Verma adds, “Right now, they can take a lot of risks and have time to figure out their retirement strategy.”
While their high-risk appetite is evident, Verma stresses the importance of balancing portfolios for the future. He recommends index funds and gold ETFs as stable, long-term options.
A recent Nielsen and Angel One survey reveals that 80% of millennials and Gen Z save 20-30% of their income, mainly for financial security.
Of those surveyed, 45% prefer stocks due to their flexibility and potential for higher returns.
Social media platforms like YouTube and Instagram play a significant role in their financial education. These investors review their portfolios frequently—53% do so monthly, and 30% quarterly.
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(Edited by : Anshul)
First Published: Nov 19, 2024 5:24 PM IST