Post-pandemic investing decisions: How things have changed

Covid‐19 has impacted the financial markets dramatically. The risk and return expectations of millennials have changed, leading them to reallocate their portfolios.

As the world heads towards a slowdown, with share markets and few countries facing economic downturns, there are uncertainties and strong beliefs that have practically divided the world into optimists and pessimists.

There are some investors who make rash, seemingly opportunistic investment decisions and are very calculative in their financial approach.

Those who unwittingly indulge in herd behavior, and those who are less prone to external influences in the market.

People are adaptive to new technology
Amongst all generations, Investors have been more adaptive to new technology and finding new ways to accomplish their financial objectives. Young investors understand the importance of financial education, thanks to technology.

With greater access to information, they are empowered to invest through investment applications and build wealth in ways that were not available in the era before machine learning and artificial intelligence.

With unparalleled digital access to financial information, and up-to-the-minute analytics driven by new age modern technologies, young investors find it easy to identify the right investment opportunities.

Easy access to trading platforms
With easy accessibility to databases, research tools and trading platforms, investors have discovered a conducive equity market environment to start investing.

In the last few years, the entire stock market ecosystem has transformed itself, making it more attractive to new and young investors and with the rise of learning platforms and credible financial resources providing authentic research, investors are equipping themselves with financial awareness and information like never before.

New age brokers
The stockbroking industry has seen a drastic change. In today’s times, new broking entrants and reputed brokers have transformed their offerings and are providing specialised solutions.

With access to sophisticated trading platforms, tailor-made suggestions and holistic financial planning at their disposal, investors are in a prime position to make investment decisions.

From hassle-free KYC compliance to a new account opening, any millennial today can open an online trading and demat account digitally in just a few clicks.

Besides, competitive broking charges and rates have further boosted their confidence and leads to more active participation.

The uptick points to young people’s efforts to shore up their finances as the pandemic weighs on economic growth and interest rates in the country of 1.35 billion. We can say, the pandemic and lack of competing asset classes have accelerated the shift to the equity market.

Conducting research and seeking advisory
The Covid-19 pandemic situation has taught us again that timing in the market is less important than time in the market. The best way towards investing in tough times is to find a group of assets that suit your profile, add it to your portfolio and wait.

For all, we know this pandemic is only a phase, which will pass away with time. Given enough time, whatever little you put aside towards investing today can add to your wealth and financial growth in the succeeding years.

In the meantime, numerous research websites have gained popularity in recent times. Hence, conducting fundamental and technical analysis of the equity market has dramatically simplified the task than it was in the past.

Given the scenario, investors conduct their own research through a host of genuine and credible information such as market data, fact sheets, charts, stock research, and relevant information available through online tools and platforms.

In the fast-changing world, millennials apart from considering asset growth and savings as good financial habits, they regard diversifying their investments, asset allocation, and spending mindfully also as their means to financial independence.

More and more young investors are becoming self-taught. This means they are willing to go the extra mile to access new information, evaluate investment opportunities based on facts, analyze real-time data instead of blindly investing in popular as well as regular investment options.

Lastly, if you are new to investments, explore the world of equities through a long-term plan. Invest the money that you might not need for the next five years or more without turning to the stock market as a get-rich-quick scheme.

Notwithstanding short-term market volatility, uncertainties, and growing responsibilities, make use of the many tech tools and apps to help you level the investment playing field.