Young investors are checking their portfolios and trading more frequently, but excessive monitoring can encourage short-term thinking. The CFA Institute says investors should stay engaged without letting every market movement trigger a change in their long-term investment plan.
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Young investors are taking a more active role in managing their money, with Gen Z and millennials checking their investments and trading more frequently than older generations. While staying informed can help investors understand their portfolios, excessive monitoring and frequent trading can also encourage a short-term approach that may conflict with long-term financial goals.
A new report by CFA Institute, based on a survey of more than 2,400 mass-affluent, high-net-worth and very-high-net-worth investors across India, Canada, Singapore, the UAE, the UK and the US, highlights this growing engagement among younger investors.
Young investors are checking their investments more often
According to the report, 63% of Gen Z and millennial investors across the six markets surveyed said they monitor or check the value of their investments at least once a week. This includes investors who check their portfolios multiple times a day, daily or weekly.
Trading activity is also relatively high. About 46% of young investors said they buy, sell or trade investments at least weekly. Among young high-net-worth and very-high-net-worth investors, the proportion rises to 52%.
The figures are global survey results and should not be interpreted as India-specific percentages. Indian investors were included in the overall survey, but the report does not give the 63% and 46% figures specifically for India.
The report also found that 40% of young investors consume market news daily. Together, these findings point to a generation that is closely engaged with markets and wants greater control over investment decisions.
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