management for millennials

Unlocking wealth management for millennials: A missed opportunity?


The millennial generation in India –people born between 1981 and 1996 – has adopted a very open outlook to investing, allowing it to partake in the benefits of the power of compounding early in life. More than seven and a half million millennial investors have entered the mutual fund industry in India in the past five fiscal years. Millennial investors in India today are in their late thirties or early forties and are looking for effective wealth management techniques to maintain a sustainable influx of returns.

However, this tech-savvy and ambitious generation might be missing out on the full potential of wealth managementdue to the overwhelming amount of financial advice they find online. Millennials can benefit from a fresh perspective on wealth management and achieve their financial goals faster.

A stepwise procedure to help millennials manage their wealth better:

Wealth management for millennials in India is more than just a buzzword; it’s a necessity. Here’s a stepwise procedure to help millennials manage their wealth better and make informed financial decisions:

1. Every millennial investor must get a health insurance policy:

Surveys conducted in major metro cities in India have suggested that around 35% of Indian millennials have bought comprehensive health insurance after the COVID-19 pandemic.Unexpected medical expenses can quickly erode one’s savings.Investment planners often stress the importance of securing health insurance at a young age. It provides financial protection in case of medical emergencies and offers tax benefits. Millennials should carefully assess their healthcare needs and choose a health insurance policy that aligns with their requirements and financial capabilities.

2. Fixing financial goals is important:

Effective wealth management is also about setting clear financial goals. Without well-defined objectives, millennial investors might find it challenging to allocate resources and measure progress. Millennials should take the time to identify short-term and long-term financial goals for their investments.Short-term goals could include building an emergency fund, saving for a vacation, or buying a new car. Long-term goals may involve purchasing a home, funding a child’s education, or planning for retirement.

3. Millennial investors must allocate assets carefully and revisit their investments:

Investors must prioritise diversification while managing their wealth.Millennials can take the help of an investment planner to distribute their investments across different asset classes like equities, bonds, and real estate to reduce risk.Investors must also regularly revisit and rebalance their investments. As millennials progress in their careers, their financial situation may change. Periodic reviews of their investment portfolio can help ensure that it remains aligned with their goals and risk tolerance.

Ending note

To plan their wealth management effectively, Indian millennials must adopt a systematic approach to investing that can help them maximise their returns and prepare for any unforeseen contingencies in the future. An effective wealth management plan involves building an emergency fund, purchasing health insurance, fixing one’s financial goals, and allocating one’s assets strategically. Millennial investors must keep reassessing their investments to optimise their overall returns.

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