‘Equity May Offer High Returns But Requires A Lot Of Patience’

Q. There has been a spurt in investing activity among the Gen Z and millennials. What explains this? Nifty 50 has been rangebound over the last year but from the bottom formed in April 2020, it has delivered returns, which has spurred the younger generations like millennials and Gen Z to enter the stock markets. This was also explained by the spurt in the number of retail trading accounts opened over the last two years. Q. What should the Gen Z keep in mind before investing? Investing is a wealth building process and requires time, patience and constant monitoring of holdings in order to compound your money over longer time frames. Returns generated over short time frames as seen in the post Covid era has given a deceptive signal to the Gen Z that the stock market is a mechanism to make quick money with less efforts, which is not always the case. Stock markets move in cycles and also...