Gen Z Stock Market Participation Surges, Thanks to Tech Innovations and Digital Experience

How digital advancements in trading platforms are attracting Gen Z investors

Gen Z Stock Market Participation

The population is categorized into various generations, based on their year of birth and the apparent collective behavioural traits. The millennial generation is presently in the age group of 26 to 41 years, while the younger Generation Z are in the 18 to 25 years range. These are the new entrants in the job market. They have started participating in various investment instruments in the financial market. 

Also Read: Most investors in the financial market are behaviourally biased. How can you avoid becoming one of them 

Participation in the Stock Market

Millennials and Gen Zs have started to participate en masse in the stock market in recent years. While the older generations including millennials have peaked and are showing signs of slowing down, Gen Zs seems to have just started.

The contribution of Gen Zs in the equity market has increased from 2% in FY2020 to 8% in FY2023 in Tier I cities. In tier II cities it is up from 3% to 18% while in tier III towns the increase is from 5% to 32%. Since April 2021, five million new investors joined NSE, with young investors accounting for 62.5% of all additions during the year.

Also ReadTop 5 stock market gurus in India

The Backdrop to Active Gen Z Participation

It must be noted that many of these investors made the investment in share market for the first time during or after the market crash of 2020, seeing an opportunity to buy low. It was a time when broking platforms offered fully digitized customer onboarding, UPI-driven fund transfers, faster processes and easier access to information. The user-friendly experience encouraged more and more young investors to participate in the stock market. After all, the market now had fully digital offerings and a tech-driven ecosystem, something that integrates seamlessly with the Gen Z lifestyle. 

As the first bull run of their trading life died down, the Gen Z investors have now slowed down in their trading mannerisms. Investors who used to track stock prices multiple times in a day are now tracking their stock market investments only a few times every week. Their buying and selling actions have reduced in the last year or so. At present these investors are not looking at market dips as buying opportunities. This is because these investors are new earners and don’t have significant disposable income. Many of them are also transitioning into mutual funds and SIPs as a more consistent form of saving.

Also Read: Is it a bull rally or a dead cat bounce case in Indian stock markets

Not to forget, mobile-friendly trading platforms have made it easier for new investors to track their investments regularly. India, in general, is moving towards a mobile-first, digital economy, and the Gen Z population is the key driving force behind these tech advancements.

Source: 

The population is categorized into various generations, based on their year of birth and the apparent collective behavioural traits. The millennial generation is presently in the age group of 26 to 41 years, while the younger Generation Z are in the 18 to 25 years range. These are the new entrants in the job market. They have started participating in various investment instruments in the financial market. 

Also Read: Most investors in the financial market are behaviourally biased. How can you avoid becoming one of them 

Participation in the Stock Market

Millennials and Gen Zs have started to participate en masse in the stock market in recent years. While the older generations including millennials have peaked and are showing signs of slowing down, Gen Zs seems to have just started.

The contribution of Gen Zs in the equity market has increased from 2% in FY2020 to 8% in FY2023 in Tier I cities. In tier II cities it is up from 3% to 18% while in tier III towns the increase is from 5% to 32%. Since April 2021, five million new investors joined NSE, with young investors accounting for 62.5% of all additions during the year.

Also ReadTop 5 stock market gurus in India

The Backdrop to Active Gen Z Participation

It must be noted that many of these investors made the investment in share market for the first time during or after the market crash of 2020, seeing an opportunity to buy low. It was a time when broking platforms offered fully digitized customer onboarding, UPI-driven fund transfers, faster processes and easier access to information. The user-friendly experience encouraged more and more young investors to participate in the stock market. After all, the market now had fully digital offerings and a tech-driven ecosystem, something that integrates seamlessly with the Gen Z lifestyle. 

As the first bull run of their trading life died down, the Gen Z investors have now slowed down in their trading mannerisms. Investors who used to track stock prices multiple times in a day are now tracking their stock market investments only a few times every week. Their buying and selling actions have reduced in the last year or so. At present these investors are not looking at market dips as buying opportunities. This is because these investors are new earners and don’t have significant disposable income. Many of them are also transitioning into mutual funds and SIPs as a more consistent form of saving.

Also Read: Is it a bull rally or a dead cat bounce case in Indian stock markets

Not to forget, mobile-friendly trading platforms have made it easier for new investors to track their investments regularly. India, in general, is moving towards a mobile-first, digital economy, and the Gen Z population is the key driving force behind these tech advancements.

Source: 

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