Reports reveal that the millennials are bringing about a major change to the investment market and that too rapidly. Through the last few years, there have been some noteworthy changes in wages, in the way job markets operate and in the way businesses are done. Conventional investment is not an exception in this case. As changing ideologies and evolving technology has put a spin on our perspective of our financials, where the young generation is investing their hard-earned dollars seems to be different than what it used to be.
Apart from the conventional offerings, there are several other investment opportunities for the younger generation. These days, the millennials are seeking benefit of several alternative investments concentrating more on technology. A Morgan Stanley survey done in 2017 concluded that most millennials are keen on investing their dollars on environmental or social investments as they will be ongoing.
What are the growing fields of millennial investment?
For the millennials, building a personal fund is not their main priority as the entire generation is focused on building a better future. A charitable study supports this finding which shows that 78% of the affluent youth put their dollars into an impactful investment which is defined by one that provides either environmental or social benefits while generating a handsome return. These new fields of investment focus on companies that have positive impact on the society, environment and technological growth.
The millennial generation that grew up holding hands of technological gadgets is now eager to invest in the innovations of the current time that can help in changing their future. Thanks to the wide variety of apps that we have, handling personal finances have become easier than ever before. Nowadays, investment is something that is being taken out of the bank and put straight into your smartphones.
What should millennials know before they take a plunge?
One more way in which the millennial generation is changing the face of investment is by being careful about their money. Keeping in mind the millennials’ crippling struggles with debt, low opportunities to grab a job, stagnant wages and confusion about when to invest, it is sensible that they wish to make sure whether or not they’re investing on the right asset.
In case you’re looking forward to invest in such assets, you have to keep in mind that diversity is the key. However the problem with most of the current investments is that they’re new. The startup companies find it tough to last for a long time and they are always under the risk of winding up any time.
If you can stick to fewer investments at the same time, this will keep you from making your money spread too much. Don’t jump into a new investment just because it seems ‘hot’. Take into account popularity waves, economic bubbles and market crashes. Try to choose something that you feel strongly about and for that which you have an interest in. Consider reaching out to a financial advisor for better advice.
Image source: here