Millenials and the Markets – #4 by Value_investor – General – Trading Q&A by Zerodha

I was just reading to find out about the growing craze for markets around the world after COVID and what I found prompted me to dig into it even more.

It appears that COVID has not been the only wave that has surged since its outbreak. The outbreak of the Corona virus stunned financial thinkers when new and young investors began to enter the stock market and began to invest heavily. Millions of young Indians turned to stock trading during and after the pandemic.

Basic stats:

Active investor accounts rose by a record 10.4 million in 2020, according to data from the country’s major depositors. Retail ownership in more than 1,500 companies listed on India’s national stock exchange jumped to 9 percent in the third quarter of 2020, the highest level since March 2018.

India’s retail boom has been driven by pandemic restrictions and job losses that have left millions of people back home with little to no work. The continued recovery in the stock market since March 2020 has attracted more investors. The rally may be one of the main reasons that attracted young investors to the market.

I don’t really think it was difficult for them to participate because the tech brokers of the new age have eased the complexity of entering the markets.

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Of the country’s total new accounts, the vast majority were opened by millennials aged 24 to 39, according to separate data from the markets regulator, the Securities and Exchange Board of India.

What percentage of the market do they make up?

The data shows that this increase in new investors is being led by young investors. Stock exchange data showed that 38 percent of all BSE users are in the 30-40 age group, followed by 24 percent in the 20-30 age group. It is also worth noting that the numbers of users under or equal to 20 years of age accounted for 5.9% as of June 2021, compared to 3.9% in May 2020 and 3% in January 2016. Source.

This just proves how the participation of young Indians has increased due to the pandemic.

An article by Forbes stated that the increase in growth is due to the mobile trading apps that do all the required ease of access. You can’t find a way not to believe it personally. Not only have the major stockbrokers in the country seen the opening of new accounts, the bulk of new accounts have been between 20-30 years.

In a country, where there is still a lack of retail participation in financial markets, I think this youth-driven increase and demand is definitely a great start for a better and more engaged industry in the years to come.

I wasn’t one of those people who started investing during the pandemic, but the pandemic still helps me get my strategies and ways of working in the market right, and gives me a chance to learn and improve.

I am very curious about this topic to explore more and will definitely do so. However, how do you guys feel about this trend and millennial involvement in the stock market? Will it really continue to increase or is it a short-term bull market with such young investors?

Also write about the things a millennial or young investor should know while investing in the stock market.

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