Posted By : Team SMI
“Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand” goes the quote of Peter Lynch, famous American Investor.
Thinking about this quote, we can recognize the value of investing right by developing our investor’s edge and reaping rich profits. But this thought of taking a plunge in the stock market and riding the crests and troughs is thrilling but more terrifying.
One of the compelling reasons to invest is to grow wealth in a value generating asset class. This is to appreciate the real value of your savings and grow a corpus for meeting life’s goals. Since time plays an important role in investments, being young and starting young is the name of the game. This is what the millennials can take advantage of and score high in the investment game. Millennials is the popular term for those born in 1980s and early 2000s. They are known to be techno savvy, more knowledgeable and so better decision makers in different aspects of life. Do we know that globally millennials account for 27% of the world’s population and India is leading in terms of Millennial population?
A recent survey shows that almost 1 in 3 millennials opine that the savings accounts and certificates of deposits are best place to invest their money. But almost 1 in 5 millennials said that they are earning less that 1 % interest on their savings.
Today millennials enjoy good and stable income and so are economically more active. But it is observed that few millennials are prejudiced & more apprehensive about investing in the capital markets(equities, debts, Mfs) and making wealth through this.
Understanding the whys
This is dismaying as it is seen that some millennials look at stock market through the lens of skepticism. But why? Lot of millennials are cautious of investing due to what they have seen during the financial crisis of 2008.Many have seen their parents losing their precious retirement resources But it can be helpful for Millennials to look at stock market investment from a more positive and constructive angle.
Milliennials…think of the advantages:
1 Good formal education
Millennials are formally educated than the previous generation and so are better positioned to understand the value of investing in stock markets. Armed with extensive knowledge and keen awareness about financial aspects, Millennials can think of this avenue to build wealth.
2.The digital generation:
As millennials have seen the birth of smartphones, facebook, Ipads and skype, they are the ‘digital natives’. This digital wave has reinvented the way millennials look at investment strategies. We have seen that the stock market is transforming rapidly with the introduction of new digitally focused corporations and the millennnials can certainly keep pace with these changes.
3 Strong researching skills and a discerning eye:
Millennials bring an unique approach to buying and marketing. They possess good online research skills which enables them to gain an insight into worth of a buying a particular product. This can help the millennials to take mature decisions about investment by developing a different perspective on stock market.
4.Millennials have age on their side and long life span:
Millennials with their age ranging from 18 to 35, can start investing early in life. Financial risks reduce with long term investments. Blessed with long life span, millennials would be benefited through long term stock market investments.
5.Stock market investments to suit their tastes:
Millennials are poised to become a powerful force in many domains and understanding the social and consumer dynamics of this generations is interesting. There are certain promising investing opportunities in arenas like travel & leisure, hotel industry, brewery and distillery which would interest the millennials.
Power your way to be an informed and insightful investor
The best investment you can make is an investment in yourself” says Warren Buffett, another famous American Investor. Absolutely true!..Right? Learning is one of the powerful beautiful ways to invest in yourself This learning can help the millennials gain deeper insight into investing strategies
The Stock Market Institute, SMI in Bangalore, one of the renowned institutes offers you various enriching courses on Stock markets. These are aimed at sharpening your investing skill and nurture the investor’s edge in you.
The specially curated SMI programs are:
- Certified Program in Capital Markets
- 1 day workshop on techniques of trading and investing
- Advanced Technical Program
- Ms Finance
Read our next article: Career in Capital Market