In the world of spending, Generation Z stands tall as the biggest group of splurgers. With India boasting the highest population of Gen Z individuals, this demographic has become the prime target for marketers, investment bankers, and financial advisors alike.
In this episode of, ‘Smart Money’ industry expert delve into understanding how these young investors can dip their toes into the market, why it's wise to start early, and what approach will lead them to financial success.
When we quizzed Feroze Azeez, Deputy CEO at Anand Rathi Wealth, about the importance of early investments for Gen Z, he shared, "Gen Z are those 25-26-year-olds at best, and time is certainly there, there is an advantage of investing for the long period. But there's also a disadvantage is that you are not earning too much."
He highlights the power of compounding, stating that while compounding is their friend, employers may not be as supportive.
Azeez urges Gen Z individuals to assess the current Indian economic environment and envision its trajectory for the next 15-20 years. He considers this generation fortunate, standing at the cusp of India's economic success. Unlike the challenges faced in 2013-14, India now holds a significant position globally, avoiding issues like inflation and high interest rates plaguing other nations.
Key Points for Gen Z Investors:
Relative Importance of India: Azeez emphasises that Gen Z is fortunate due to India's rising significance in the global economic and capital market landscape. The country's ability to navigate challenges like inflation sets it apart, offering Gen Z a unique investment destination.
Long-Term Economic Outlook: Looking beyond short-term market fluctuations, Azeez suggests that Gen Z should focus on the long-term outlook of the Indian economy. In the grand scheme, the economy dictates capital markets, making it essential for investors to consider the broader economic context.
Factors Influencing Capital Markets: Azeez identifies key factors shaping capital markets, including short-term news, medium-term corporate earnings, and long-term economic trends. He stresses the significance of understanding these factors to make informed investment decisions.
For a more in-depth discussion, you can watch the full interview video accompanying this article.
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