A Study on Factors Influencing Genz and Millennial’s Risk Appetite Towards Investments, With Special Reference to South Indian States

This particular research paper focused on understanding the risk appetite level of both the Genz (as people who were born between 1997 and 2012) as well the millennial’s (as people who were born between 1981-1996). The paper also identified the key factors such as income range, risk aversion, awareness about the existence of certain financial instruments in the market, which factors influence the Genz and millennials to invest in a particular investment avenue. The research methodology included collection of primary data from both the age groups mentioned for the study. The survey received 166 responses from the sample population that consisted of Genz and millennials. The population is restricted to only south Indian states. The findings of the research were that much importance was given to social circle and friends as a source of information for investment and the investment was focused on short term gains rather than long term capital appreciation or wealth creation. Their risk tolerance seems to depend on a variety of factors, including both generation and personality, as well as perceptions of time and opportunity. To conclude, both GenZ and Millennials should also conduct their own research and diversify their portfolios to reduce risk. They are also more likely to be open to new and innovative investment products, such as cryptocurrencies and NFTs. These products can be risky, so it is important to do your research and understand the risks before investing.