Why do Millenials Prefer Investing In Share Market Than Other Options?

The financial markets, which have long been renowned as venues for speculation & wagering, are the perfect location for millennials to channel their energy towards activities that provide them with an immediate adrenaline boost. The coronavirus market crash in March provided millennials in India with a significant chance to begin buying and selling stocks.

The generation of investors most familiar with technology is thought to be millennials. Tech savvy is indeed a strong suit of this age. To improve their investing experience, they seek strong digital alternatives and control. It’s also not unexpected that people of this generation have begun to enter the world of investing thanks to cutting-edge technological instruments. Why has there been such a spike in interest in the share market?

  • Stock market accessibility is made possible by technology.

According to Indian brokerage firms, technology is making it easier than ever for young Indians to enter the stock markets. The use of technology has made the share market more consumer friendly by enabling quicker transaction settlement, better transparency, improved security, automatic surveillance, and many other benefits. In this article, we’ll talk about how the financial sector has been impacted by technological improvements.

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  • Key Are Mobile Trade Apps

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The stock market is now accessible thanks to mobile trading applications that have minimal or even no transaction fees. Due to lockdown-induced remote working, prominent stock brokerage firms in India that follow the bargain model observed a huge increase in investors between the ages of 30 making trades. This provided millennials with more time to trade.

  • The availability of mobile phones and affordable data plans

The availability of mobile phones and affordable data plans are two of the main factors highlighted by leading stock brokerage firms as to why millennials are being encouraged to experiment with stock market investment during the epidemic. Based on the Worldwide Cellular Data Pricing Report, India had the lowest mobile data prices in 2020, with a 1GB data plan costing a mean of $0.09. According to research jointly published in July by the India Mobile & Electronics Association & KPMG India, the nation has over 450 million mobile phone users as well as the fastest-growing application industry in the world.

  • The radical ordinance making Stock Market Accessibility Easier

Brokerages praise India’s Securities & Exchange Boards of India (SEBI), the markets regulator, for quickly resolving the severe misunderstanding that a sudden lockout in India produced for the stock exchanges. This has made access to the stock market simpler. Since the beginning of this year, SEBI has been aggressively pursuing laws to make market participation easier. According to several stock brokerage firms; this effort has functioned as a stimulant for millennials to engage in the markets as even the coronavirus crisis struck.

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  • Learning impacts stock market involvement

Among other things, education has a big impact on how well investors perform, how risky they are, and how much they participate in the stock market. According to Campbell, better-educated investors trade stocks more often and frequently make more logical investing judgments than less-educated investors. Education is seen as a crucial component in understanding investors’ risk-taking behaviour in their stock market involvement decisions.

But everyone’s core investing approach, including millennials, remains unchanged as it’s based on tolerance for risk. The preference for online over physical investment among millennials, as opposed to older generations, is a significant shift in their approach to investing with the most general question of how to open share market account online. Diversification is a different aspect that millennials are interested in. They begin with lower ticket amounts and are increasingly willing to consider other types of investments. For this reason, in addition to equities or FDs, people are looking at investing in cryptocurrency, startup equity, & high-yield fixed-income securities.