1. Mutual fund advisers have gone on record that most investors who are signing up for Systematic Investment Plans (SIPs) are in their 20s, because:
a) there is growing awareness among them about benefits of SIP investing,
b) it helps them to invest, even with small amounts, for wealth creation,
c) the net-savvy generation has taken big to this tech-savvy approach, and
d) AMCs now know their changed target audience for making sensible investment decisions, and are lesser depending on people above 30s.
2. Behaviourally too, young generation thinks differently from the traditional approaches in financial planning:
a) Post-retirement frugality is not for them as they believe that they would have worked hard to get where they are and should use their retirement to travel, bond, indulge and live in comfort.
b) They also would want to die with their boots on, and retirement for them would be about doing something different, useful and fulfilling for as long as they can.
c) They are not afraid of inflation and seek wealth management strategies that preserve, protect and grow the wealth that they have, from a position of adequacy rather than shortage.
d) So, they are not apologetic about their earnings or assets and like inclusive wealth-generation models, preferring the power of earning what they are worth, creating wealth through innovation, and
enjoying the freedom of allocating it the way they want.
e) Their wealth planning needs are totally different as they do not believe in leaving behind houses that their children may never visit or use, or bequeathing wealth that may turn kids into less responsible adults.
f) Instead, they look for transparent and efficient structures that help their estate planning for chosen beneficiaries, even including children of their household staff too.
g) Their awareness of international practices leads them to seek institutional structures with robust administrators, trust companies, executorship services, wealth and family managers and similar professionals.
h) They like processes, documentation, transparency, information disclosures and structures that induce trust and faith.
i) Even paying a fee to get these tasks done is not a problem to them, as long as there exist such structures and service providers.
3. Bringing the entire young generation into their investment fold at an early age, and nurturing their hard-earned money, is what Amfi / AMCs / Sebi should aim for.
a) there is growing awareness among them about benefits of SIP investing,
b) it helps them to invest, even with small amounts, for wealth creation,
c) the net-savvy generation has taken big to this tech-savvy approach, and
d) AMCs now know their changed target audience for making sensible investment decisions, and are lesser depending on people above 30s.
2. Behaviourally too, young generation thinks differently from the traditional approaches in financial planning:
a) Post-retirement frugality is not for them as they believe that they would have worked hard to get where they are and should use their retirement to travel, bond, indulge and live in comfort.
b) They also would want to die with their boots on, and retirement for them would be about doing something different, useful and fulfilling for as long as they can.
c) They are not afraid of inflation and seek wealth management strategies that preserve, protect and grow the wealth that they have, from a position of adequacy rather than shortage.
d) So, they are not apologetic about their earnings or assets and like inclusive wealth-generation models, preferring the power of earning what they are worth, creating wealth through innovation, and
enjoying the freedom of allocating it the way they want.
e) Their wealth planning needs are totally different as they do not believe in leaving behind houses that their children may never visit or use, or bequeathing wealth that may turn kids into less responsible adults.
f) Instead, they look for transparent and efficient structures that help their estate planning for chosen beneficiaries, even including children of their household staff too.
g) Their awareness of international practices leads them to seek institutional structures with robust administrators, trust companies, executorship services, wealth and family managers and similar professionals.
h) They like processes, documentation, transparency, information disclosures and structures that induce trust and faith.
i) Even paying a fee to get these tasks done is not a problem to them, as long as there exist such structures and service providers.
3. Bringing the entire young generation into their investment fold at an early age, and nurturing their hard-earned money, is what Amfi / AMCs / Sebi should aim for.