Why Millennials Invest Differently: An Analysis by Financial Experts

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According to the Pew Research Foundation, a millennial is someone who has been-‘born between the years 1981 and 1996 (in 2019, their ages would be between 23 years to 38 years).’Anyone who has been born from 1997 onwards is part of a new generation called Generation Z.

If you look at the trends and areas in which millennials are investing in, you will be surprised. This generation has seen the financial crisis of 2008. Contrary to popular perception, they are more conscious, aware and safe when it comes to making financial decisions.In this article, we will look at what sets millennials apart when taking investment risks. We will also be looking at certain asset segments, which millennials prefer more. Finally, we will briefly examine how the crash of 2008 impacted this generation psychologically.

Why Millennials are more aware as Investors?

It should be pointed out at the very outset that the millennial generation rose in the age of information technology. We are talking about a boom in all things digital, from search to social. The awareness comes from being connected to the society through information and relationships.Millennials are likely to do three times more research when taking investment decisions than their parents are. This also shows that they value their earnings and want it to succeed. Being born in the age of the depression of 2008, they have seen the instability of the financial sector. Credible banks and lending institutions are not looked upon as safe investment bets.

The psychological effects of the crashing of Lehmann Brothers, the big ‘Detroit Three’, Goldman Sachs, etc. defined the future of their employment and livelihoods.

Millennials are also likely to diversify their portfolio and look at balancing long-term dividends with some high-risk high margin profits. Their aim is to build a solid but earning platform by making investments in areas, which are driven by innovation and technology.

What are some areas where Millennials are investing in?

In the last sentence of the previous paragraph, I mentioned that millennials love investing in new technology and innovation. However, let me elaborate on the same in this section.Millennials as a generation are very conscious of the impact of Climate Change and Global Warming. They continue to blame their earlier generations for the mess that planet Earth is experiencing now. This reflects in the investment choices, which millennials are making.

They want to go for investment assets, which are driven by technology, are sustainable in nature and can help limit Climate Change and Global Warming.Many millennials are investing in EV technology, CBD and cryptocurrencies. They not only want to salvage the damage, but also want to make their world shock proof from recessions and inflation issues. Unlike earlier generations, millennials bring in an air of responsibility to investing.

Yes, they want to invest where they will be able to reap profits, but their investments also has an environmental and social dimension. In addition, the millennial generation is very averse to taking risks. They also have a propensity to avoid Pension Funds and want to ease into retirement life early.


One area where millennials not seem to be doing enough are savings. They do not have an emergency fund to fall back on when there are moments of crisis. However, they are safe and secure investors who are not afraid to try new financial assets like cryptocurrencies.

In fact, many millennials who invested early in cryptocurrencies are now self-made millionaires. They invested in Bitcoins and Blockchain technology when the prices were nothing. Within a decade, they saw their investments grow manifold.

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