Investing Abroad: Where are millennials putting their money these days?

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August 20, 2020 1:41 PM

According to a recent industry report, a number of researchers believe that some of the companies in the US, such as, Facebook, Amazon, Netflix, etc, are uniquely placed to face huge disruptions that are happening or are likely to happen in the global economy in the post- Covid-19 pandemic world.

hdfc global investing, investing india, Investing money, investment in india, india investment, best investment options in india 2020, risk appetite, how to evaluate your risk appetite, goals, expected returns, stocks, mutual funds, what is risk appetite, tax alert, income tax,The US market offers investment opportunities in global companies that lead in technology, manufacturing, and science.

Amid falling returns and a volatile stock market in India, millennial investors are seen making debut in the US stock market to seize opportunities for better returns.

According to data available with Stockal, a leading platform for investing in the global stock markets, millennials account for about 35 per cent of their customer base and their typical investment is in the range of $1,500 to $2,000 (about Rs 1 lakh to Rs 1.5 lakh).

Commenting on the same, Vinay Bharathwaj, Co-Founder and Executive Chairman, Stockal Inc, says, “An increasing number of millennials are exploring investment opportunities in the US stock markets today – one of the primary reasons being the Coronavirus-led market turmoil.” He adds, “The underperformance of the Indian stock market during these COVID times has led to an increase in the number of young Indians looking for more lucrative opportunities. Fintech firms that help investors navigate these trades are making the most of these opportunities.”

Additionally, many investors are also looking at diversifying their portfolios, and hence, are expanding their horizons to global stock exchanges. They are exploring options for investments given their current portfolio, risks and investment appetite, among others. Stockal is currently conducting transactions worth $2 million each day, out of which millennials account for about 35 percent.

Why the US market?

The US market offers investment opportunities in global companies that lead in technology, manufacturing, and science. Bharathwaj of Stockal says, “As the US market offers investment opportunities in global companies, hence, investors are set to benefit from such opportunities which give them better growth opportunities, by getting access to the top-of-line companies.”

According to a recent industry report, a number of researchers believe that some of the companies in the US, such as, Facebook, Amazon, Netflix, etc, are uniquely placed to face huge disruptions that are happening or are likely to happen in the global economy in the post- Covid-19 pandemic world.

Bharathwaj says, “Considering the fact that the US is a larger economy and is expected to revive sooner, investing in this market will allow Indian investors to overcome the effects of COVID-19 quicker.”

Additionally, by investing in the US stock market, the investors get a wider exposure and bigger opportunities.

Bharathwaj informs, “The US market is large and has enough mega and large-cap companies opening up opportunities to diversify in different companies across various sectors.”

Today Indian investors are more interested to invest in tech giants that are changing the way people live and work. “Especially the millennials, who have witnessed the transition from just using the Internet on your computer to watching content on the go, are enthused to invest in innovation and technology companies. The tech giants of the world are listed in this market and are the best way to participate in the growth of companies that are likely to lead the world in the next 20 years. This makes the US market more attractive for investments.”

Where do millennials invest?

To help decide where to invest, millennials generally reach out to peers to get a better understanding, before making their investment decisions. They also do their independent research before investing their money.

When choosing where to invest, industry experts say, there is a keen interest among investors to invest in sectors such as tech, gaming, HealthTech, etc. Looking at the global scenario, the best-performing industry giants such as Amazon, Zoom, Netflix, Microsoft, among others, are preferred by them. There has also been an inclination to invest in socially and environmentally-responsible sectors like renewables, electric vehicles, and meat alternatives, among others.

Looking to invest in US Stocks? Open a free account with Stockal - India's first borderless investment platform.

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