To the young investor reading this, youre part of something historic

Investing tools, speed has changed hugely over the years but rules to make money remain same Indias capital markets are now the fourth largest globally. Youre participating in this growth story, not just as a spectator, but as an active player. The markets have evolved to match your speed, but remember that wealth creation still follows the old rules of patience, research and disciplined investing

Dhirendra Kumar

CEO, Value Research

Last week, at an event in Mumbai, the CEO of the National Stock Exchange shared some remarkable statistics that caught my attention. The median age of Indian investors has dropped to 32 years. Think about that for a moment. Half of all investors in India’s largest exchange are younger than 32. When I started in this business, the typical investor was in his mid-40s, worried about retirement and children’s education. Today, they are more likely to be people who grew up with smartphones and who consider cryptocurrency an old option.

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This dramatic shift in age profile tells us something profound about how India invests. The NSE data shows that young Indians have helped push the number of unique investors to nearly 11 crore, with their accounts spread across 99.84% of India’s pin codes. That’s a stunning democratisation of wealth creation, enabled by technology, but driven by changing attitudes.

However, here’s what really interests me. In 2024 alone, household investors saw their wealth increase by approximately Rs.13.2 lakh crore. Over the past five years, retail investors have seen their wealth grow by over `40 lakh crore through direct investments and mutual funds. These aren’t just numbers; they represent dreams being funded, futures being secured and, most importantly, a fundamental shift in how young India thinks about money.

However, this is where I need to put on my ‘uncle’ hat and share some concerns. The ease with which one can invest now—literally with a few taps on a phone—is both a blessing and a potential curse. The technology that has democratised investing has also made it dangerously easy to follow the herd. I’ve lost count of the number of young investors I’ve met, who can quote their favourite financial influencer, but have never opened a company annual report or, heaven forbid, a mutual fund fact sheet.

At one time, we all had a ‘friend’ who kept pestering us to invest in his ‘sure-shot’ stock tip. Today, that friend has been replaced by an army of social media experts, each with their own ‘guaranteed’ route to riches. The platforms may have changed, but the basic principles haven’t. Good investing isn’t about following trends; it’s about understanding value. Still, what’s heartening is how this generation is approaching learning. They begin with quick trades, but eventually, a certain number appreciates the power of compound interest. Yes, they make mistakes, as did we, but when I remove my uncle’s hat, they seem to learn faster from them.

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The NSE’s journey reflects this evolution. From being India’s first screen-based trading platform in 1994, to processing around 2000 crore orders on busy days now, it has grown much like its investors. The shift from T+5 settlement cycles to T+1 (even T+0 in some cases) mirrors the speed at which young India wants to move.

Here’s my advice to young investors: while technology has made investing faster and more accessible, good investing still requires patience. The NSE data shows that the most successful investors, regardless of age, stay invested through market cycles. The technological tools are incredible, but they should serve your investment strategy, not define it.

To the young investor reading this, you’re part of something historic. India’s capital markets are now the fourth largest globally, after the US, China and Japan. You’re participating in this growth story, not just as a spectator, but as an active player. The markets have evolved to match your speed, but remember that wealth creation still follows the old rules of patience, research and disciplined investing.

The future belongs to you, but take a moment to ask your parents about their investment journey. You might be surprised to find that while the tools have changed dramatically, the principles they followed, when they worked, still remain relevant. Good investing, like good advice, never goes out of style.

The Author is CEO, Value Research
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

This story originally appeared on: India Times - Author:Faqs of Insurances