Investment Avenues Redefined for Indian Youth

Abstract

The changing nature of Indian financial environment has posed a challenge to the investment behaviour of young people who form a very important source of investors in the country. The paper under analysis investigates the way in which investment opportunities have been rediscovered among young people in India under the condition of digitalisation, financial innovation and shifting expectations about risks and returns. The primary data were collected using a structured questionnaire, as there was the adoption of a descriptive research design, and a total of 384 respondents between the ages of 18 and 35 years participated in the study. The analysis involved use of descriptive statistical analysis to analyze participation of investment, portfolio composition, purpose of investment, riskiness, impact of digital and awareness of emerging tools of investment. The results illustrate the fact that there was much active involvement of youth in investment activities, where diversified and market-linked investment pathways were taken with high preference towards long-term wealth generation. Digital media were identified as having a key influencing effect on the investment choices made and moderate to high risk tolerance described most of the respondents. Nonetheless, the financial awareness and risk perception differences are still present, which means that specific financial literacy programs should be employed. The research provides empirical evidence about investment behaviour of the youths in India and provides practical suggestion to policy makers, financial institutions as well as educators aiming to impact informed and sustainable investment behaviour towards the youths.