The Millennial and Gen. Z investment landscape

How are tech-savvy generations driving investment?

As history's largest intergenerational wealth transfer unfolds, Millennials and Gen. Z are reshaping investment with their tech-savvy approach and values-driven mindset. This new wave of investors, armed with unprecedented access to technology and new ways of thinking, significantly changes how money is managed and where it's invested.

Do young investors prefer alternative assets?

Young investors are less inclined towards traditional investment vehicles such as stocks and bonds. Instead, many prefer alternative investments that align with their values and offer the potential for higher returns. Cryptocurrencies, real estate crowdfunding, and impact investing are gaining traction, reflecting their desire to merge financial gains with positive societal impact.

93% said they were likely to allocate more money to alternative investments in the next few years, compared with only 28% of older investors.

Ethical investing among Millennials and Gen. Z

Environmental, Social, and Governance (ESG) criteria are increasingly important in investment decisions. Millennials and Gen. Z are particularly drawn to companies and funds prioritising sustainability and social responsibility. This change in how they invest is not just a short-term trend—it's becoming a long-term shift.

How is technology changing investing?

Technology is at the heart of this investment revolution. From AI-powered robo-advisors to blockchain and mobile trading apps, fintech innovations are democratising access to financial markets. These tools make investing easier and cheaper for everyone, allowing young investors to research, buy, sell, and manage their investments using smartphones.

How Social Media Affects Gen Z's Financial Education

Social media is now a big part of young people learning about investing. Gen. Z members (about 1 in 3) use apps like TikTok and YouTube to learn about money. This is very different from how people learned about finance in the past. Instead of reading books or talking to experts, young people now turn to their phones for financial advice.

Algorithms steer 79% of Millennial and Gen. Z consumers toward curated narratives of financial education.

Future investing for Millennials and Gen. Z

The investment landscape will change a lot in the future. With their blend of technological prowess, social consciousness, and desire for autonomy, Millennials and Gen. Z are not just joining the market – they're changing how it works. We can expect to see:

• New types of investments that fit what young people want
• Companies being more open about how they do business
• More money going to investments that help make the world better

The challenge and opportunity for wealth managers

Wealth managers and advisors will face the challenge of adapting to these changing preferences and values. Those who can successfully bridge the gap between conventional economic wisdom and the aspirations of this new generation of investors will do well. They need to connect what they know with what young investors care about. This is a big change, but it's also a chance for wealth managers and advisors to grow and improve.