A surge is visible in the equity markets, both in pre- and post-Covid India. Besides, most of the newcomers are between the age of 20 and 30 years. This young generation, or the so-called millennials, are more adaptive to new technology, apart from being keen on finding new ways to achieve their goals. There are other catalysts to this influx of first time participants. For instance, the entire stock markets ecosystem has evolved over the last five years and is conducive to new young participants.
Also, the surge of learning platforms and more genuine resources to conduct research has further helped spur the participation. Unlike their previous generations, the term stock market doesn’t bring a sense of fear among millennials as they are well read and well informed. They take their own decisions and take calculated risks in the markets.
Reduced dependency on brokers
Previously, the brokerage firms were dominating the industry in terms of providing a platform to trade, stock suggestions and managing money on the client’s behalf. However, with the entry of new-age tech brokers the industry has seen a drastic change as now there are separate companies offering different specialised solutions to each of the above services — a trading platform, specific recommendations and holistic financial planning.
The new entrants have given special attention to ease of use and focus towards providing a hassle-free experience through the use of technological advancements. It’s a win-win for all. From KYC updation to new account opening, everything can be done digitally. Almost everything is just a click away.
Besides, the broking industry has also become highly competitive in terms of the charges, which have given a further fillip to millennial participation. Zerodha, which is a discount broker, for instance, saw higher influx of younger investors during the pandemic. Investors in the age group of 20-30 years now make up 69 per cent of the company’s investors compared to 50-55 per cent pre-Covid.
Growth in learning platforms
Millennials prefer to make their own decisions. They focus on learning about stock markets and stock market education platforms have provided a lot of support. There is a plethora of knowledge available on the internet, -- including blogs, YouTube, and online courses --at optimal cost to help people start their own stock market journey.
Some popular stock market education portals cover topics from basics to expert level. Examples of such platforms include Udemy and Elearnmarkets. These platforms offer courses suiting all needs--offline, online, self-paced, or live.
This has helped young participants to first develop a proper knowledge base and then venture into the markets so that they are more apt to handle the volatile nature of the market.
Ease of doing research
Earlier, the brokers and media houses used to do all the research and give trading calls to their clients through news, calls and reports. The scenario has now changed with the millennials barely relying on such news and preferring to do their own research. In this regard, research sites have gained popularity, which has simplified the process of doing fundamental and technical analysis.
Offering a host of information such as market news, charts, financial data of companies, everything at a click, online tools and platforms have made stock research quite accessible. Stockedge is one such platform that hosts such information. These platforms have helped participants take well-informed decisions. Access to information and readymade analytics is no more a barrier for them. Other platforms such as TradingView, Chartink, have made intraday trading easy for active traders in the market by providing them solutions that help them make quick decisions during market hours.
We see how the entire ecosystem has become very inclusive and supportive for anyone to join in, learn and grow.
The stock market has recently been in an upward trend and has raised optimism among newbies. But the market is unpredictable and may become volatile soon. Experienced participants manage through such volatile phases and only time will tell if the millennials shy away or continue with their journey.
The author is a co-founder and CEO of StockEdge & Elearnmarkets.com