Young people, especially Gen Z, are showing a growing interest in stock market content on Instagram through features like reels.

Synopsis

Gen Z is turning to investment apps like Zerodha for financial independence. With a focus on compounding and SIPs, the youth navigates market volatility cautiously, influenced by 'finfluencers' on social media.

A segment of the Gen Z population, particularly those aged 12-24, has embraced investing enthusiastically, facilitated by user-friendly investment apps and a shift towards a mobile-first approach.

Consider Madhur Katta, a 22-year-old investor from Jaipur, who initially joined the stock market frenzy due to FOMO (Fear of Missing Out). He was drawn in by the buzz around the markets following the pandemic and was impressed by user-friendly apps like Zerodha. Katta highlighted the ease of placing buy and sell orders, which he found to be effortless compared to traditional methods involving brokers or banks.

The shift to digital fintech platforms has revolutionized investing, especially for tech-savvy young individuals. These apps have democratized access to the stock market, allowing investors to engage without the need for intermediaries like brokers or banks.

Factors such as increasing discretionary spending, a better understanding of personal finances, and readily available information from sources like friends, family, and "finfluencers" (financial influencers) have fueled the interest of young Indians in exploring alternative income sources. For instance, 19-year-old Jillian Tauro began investing early, recognizing the potential of compounding and feeling a sense of financial responsibility from generating profits through market analysis.

While Gen Z individuals are keen on saving and achieving financial independence, they approach the market cautiously due to its volatility. Katta emphasized the importance of diligence in investing, particularly during uncertain times, or opting for safer alternatives like Systematic Investment Plans (SIPs).

"Finfluencers" and social media platforms exert significant influence over the investment decisions of this demographic. Wayne Almeida, 25, sees them as effective tools for staying informed about market trends and potential investment prospects. However, the abundance of financial information online carries a risk: it may create unrealistic expectations that do not align with actual portfolio performance. To safeguard investors, the Securities and Exchange Board of India (SEBI) has taken stringent measures against finfluencers who provide investment advice on social media. Additionally, SEBI has imposed restrictions on regulated intermediaries' engagement with finfluencers to promote their products or services.

Source: Economic times‍