One of the largest generations in history is about to move into its prime spending years. Millennials are poised to reshape the economy; their unique experiences will change the ways we buy and sell, forcing companies to examine how they do business for decades to come.

Who are they?

Millennials or Generation Y are people born between 1981 and 1996. Currently, they constitute a third of India’s population, and 46% of the current workforce. For many, this generation is an enigma when it comes to many things. Whether it’s managing relationships, careers or wealth, they’ve presented the world with new ideas and strategies.

How are our millennials investing?

Some financial habits of millennials tend to come across as alarming to the previous generations. Especially Generation X who have worked hard to get themselves out of financial ruts.

These habits include spending more, experimenting with investment products, and enjoying the benefits of Credit Cards. However, the broader view is that millennials, while splurging on interests or passions, are equally aware of the need to build a corpus for a secure future. Moreover, they may be prone to experimenting with new financial products but will choose traditional options too.

Let us have a look at the money-making habits of millennials:

Starting early and diversely!

Trends suggest that millennials believe in starting early, given that on average, most investors are 28 years of age. More than 30 percent of the investors fall between the age of 26-30 years old, with the second most populous category (at 29 percent) belonging to those between 18-25 years. Even when it comes to starting with popular retirement savings options like NPS (National Pension Scheme), the starting age is 32.

When it comes to investing preferences, the young guns prefer mutual funds (64 percent), followed by equity (28 percent), and lastly, gold (8 percent). In fact, gold, traditionally seen as an inflationary hedge, saw a Y-o-Y increase of 59 percent in investors' portfolios.

Mutual Funds top the chart

56% of millennials invest in Mutual Funds. Turns out, our millennials ace financial discipline and regularity in terms of Systematic Investment Plans (SIPs). Turns out, our millennials ace financial discipline and regularity in terms of Systematic Investment Plans (SIPs). On average, the user undertook around 10 lumpsum and 19 SIP transactions, with the average amount invested growing by around 29 percent. Moreover, 76% of users transacted in SIPs, a healthy figure.

Source: Moneycontrol

Day trading, investing in stock markets, IPOs

Lockdowns and work from home have given many millennials enough time to keep a track of stock market developments. Access to easy-to-use mobile apps has made day trading a lucrative side income option for millennials.

Indian millennials are also bullish about IPOs of new-age companies. They are not scared of the stock market risks

Investing, trading in cryptocurrencies

Even as cryptocurrencies are not regulated in India, millennials are the largest force behind the popularity of these new-age digital assets. Easy access to crypto exchanges through mobile apps and the active interest of millennials’ role models like Elon Musk have further pushed millennials towards cryptocurrencies.

Millennials in general are drawn towards a culture of earning passive income on their time and investments. Crypto investments are very popular for this age group, in fact, more than 50% of investors are millennials. They are open to learn this new technology (Blockchain) and explore new opportunities that come with it— Decentralized finance or Defi, staking, liquidity pools, NFTs are such new and trending opportunities

As age progresses, their investment pattern also evolves. So for instance, while people in their teenage and early 20s indulge more in crypto trading, the senior folks consider more evolved forms of investing such as a Fixed Income Plan or a SIP aligned to multiple goals.

Creating value from the gig economy

Multiple online platforms are enabling Millennials to make extra money, apart from the regular job, by making the best use of their skills through freelance gigs.

While millennials need to work on their spending, saving, and long-term investing habits, being more money mindful. One lesson that can be learned from them is leveraging earning opportunities. The gig economy today has enabled the generation to effectively make use of their skills and capabilities and create value.

Automating wealth creation

Millennials are creating a new habit of money-making by automating the process of investing or wealth creation itself!

Currently, they are doing it by setting up auto-debit for their mutual fund investments closer to the date when their salary gets credited. Moving forward, they will be able to set up triggers for automated investing throughout the month based on the transactions in their linked savings account.

Investing in Digital Gold

Digital gold is increasingly becoming the asset of choice among millennials to create and protect wealth. Millennials look for ease of investments and higher returns but also for assets that help them fulfill their aspirational needs and are a good emergency corpus.


Millennials are different when it comes to financial planning. They are willing to take a risk to earn higher returns. This generation is called tech-savvy and gadget-savvy, and it’s time to be investment savvy also!

To learn more about mutual funds enroll in our course- NM 103: Basics of Asset Classes

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