Several young employees have become addicted to equity investments since the stock market crash of March 2020 following Covid. Checking out the sensex has become a morning ritual for them, as has catching up on social media. Market corrections make these young people as enthusiastic as the offers of online sales players. They may find it difficult to complete computerized returns, but they are comfortable entering buy orders at limit prices on their brokers’ app.
“Is the IRCTC share currently overvalued?” ”
“Should I apply for the IPO of Paras Defense?” ”
“Why are sugar stocks recovering? Should I buy?
These are some of the questions that arose on a WhatsApp group called “Financial Info” created by a group over 20 years old to discuss investments. Here, screenshots of profits and losses and links to news articles are shared outside of memes celebrating ITC stock rallies or consecutive buying opportunities on a downside (market correction).
Several Gen Z investors (aged 25 and under), a growing share of retail investors, told TOI that they make investment decisions after viewing financial reports, news articles, podcasts and opinions from a growing online community. Another important factor influencing decisions such as which broker to sell and when to sell a stock is the advice of “investor” friends.
Freelance writer Progyaa Dutta (25) spends a few hours each month researching underperforming stocks and buying them if she thinks their long-term growth potential is intact. “I only buy a stock if I am satisfied with the rationale for a call to buy in an analyst or a report,” said Progyaa, who started investing last year.
Manjiri Satam (24) held onto the markets after stepping down as an actuarial analyst earlier this year. “It hurts when I see how low the prices were last year. However, I got 16% returns this year which is decent as most of my savings are in FDs earning a meager 5%, ”Manjiri said. Both Manjiri and Progyaa have said they don’t buy stocks on a whim, but instead use “watch lists” with price alerts appearing in their notifications.
Despite their relatively low initial capital (usually between Rs 50,000 and Rs 2 lakh), many young people understand that capitalization will help them grow their money and therefore intend to stay invested even after the pandemic.
“Investing helps me stay on top of what’s going on in the world. I’d rather read about different sectors, try to spot trends, then buy stocks, ”said Neil, a 24-year-old who runs a homestay business in Alibaug.
The social media platform Reddit has become a popular discussion platform for first-time investors. Forums like IndianStreetBets and IndiaInvestments have seen an increase in the number of followers amid the pandemic. Posts in these forums range from “rate my portfolio” to “how to plan an exit strategy”.
IndianStreetsBets member Austin Thekkanath (25), who recently quit his job to pursue an MBA, is doing his own research. “I tried technical analysis, but it sounded like astrology to me,” he said. Austin, which has been investing since the end of 2019, aims to build a retirement corpus.
Another 18-year-old Reddit user, an engineering student, started investing in February this year with small savings on his stipend and cash giveaways. “I look at what makes a business better than its competition and how it adds value to people’s lives,” said the teenager, who declined to be named. “The idea is to create wealth and not to try to get rich overnight,” he added.
The influx of Millennials and Gen Z investors with smartphones has increased the share of BSE transactions via mobile from around 6% in January 2020 to almost 18% in August 2021.
Market veterans have said that the investment behavior of the new generation is more mature than the previous ones due to the easy access to expert advice and the ability to monitor portfolios.
Dinesh Thakkar, CMD of Angel Broking, one of India’s largest stockbrokers, told TOI that the tech-savvy generation has seized the opportunity offered by the broker’s intuitive apps because it doesn’t There was no choice but to put savings into an asset that can generate better returns. than the FD.
“Since age is on their side, they would like to take calculated steps to build wealth. It doesn’t take long for them to figure out how to hedge or profit from market volatility. There are many experts on social media. We also created a lot of nudges and educational programs, ”Thakkar said.
The median age of customers added by Angel Broking in Jan-Mar 2021 was 30, and 75% of all business orders were placed through his app.


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