How investment platform Groww is making investing as simple as shopping online for millennialsTeam YS
“Investing should be as simple as shopping online,” says Harsh Jain, who co-founded Groww, India’s fastest growing investment platform, with former Flipkart colleagues Lalit Keshre, Neeraj Singh and Ishan Bansal in 2017.
In fact, it is this simplified approach to investing that is attracting a new generation of first-time investors into the market. According to research by Groww, by 2020, nearly 76 percent of India’s population will comprise of millennials (those born between 1981 and 1996), who are arguably the most digitally-savvy generation ever. They also have very different perspectives than previous generations when it comes to investments.
Typically, if you see the current mutual fund space, the average age of investors is 40 years. But that story is changing, thanks to the new age apps. The average age of the investors on Groww is just 26 years.
With the advent of technology, the promotion of mutual funds, and other changes in the economic landscape of the country, investing is becoming popular among the millennials. There’s the realisation that with every penny you invest, you are buying one more day where you don’t have to work.
Changing perceptions at the click of a button
There are only two ways to make money in the modern world: by working for yourself or someone else, or by having your assets work for you. With a ‘consume more, save less’ attitude, millennials have traditionally been more attracted to derivatives for the ‘quick money’ it brings. Infact, a study by YouGov and Mint showed that millennials are wary of investing in the stock market and up to 33 percent would prefer to put their money in fixed or recurring deposits. In such a scenario, setting the right expectations becomes important. Groww sets it right with no hidden transaction charges and zero commission. Groww offers exhaustive content that helps users make the right decision for their investments.
Millennials also tended to believe that investing was something one did when they settled down, and had a family. But now, they’re more attracted towards investing even in their twenties. They see that banks won’t give them any kind of returns. Now there is the flexibility to put in money and take it out whenever they want with mutual funds– and at a tap of a button. They’re getting attracted to apps like Groww that offer ease of use and simplicity in its design.
Groww educates users about the benefits of long-term investing. Few users start with short-term investment products, and then soon realise that returns can be maximised. Over time, they move into long-term investments like Systematic Investment Plans (SIPs). “Once they’ve got their start to investing, I haven’t seen them turning back,” says Harsh.
Creating simplified content for the millennial investor
Content is going to play a major role for them to reach millennials in the most effective way. Groww has dedicated content for the millennial investor, with a committed team that spends time in creating content on their blog and other social media channels. Every week, they invite a fund manager, CIO or CEO of a mutual fund company, and share insights on how millennials should approach investing through their social media.
From what phone to buy to where to eat and go on holiday, the millennial generation likes to explore their options online and are influenced by what they read on the Web. It’s important for digital platforms to have information online and be accessible through social media.
They have plenty of motivation to invest; they know it’s one of the definite ways to overcome debt and build financial security over time, but all of the industry jargon and daily market moves have them spooked.
The Groww app has an intelligent and user-friendly navigable UI and UX. Content is definitely one angle, but they’ve put across the information, with transparency, clarity and provided users with simplified information. By incorporating this simple UI, they have been able to reduce the learning curve of the app. The content is free of complicated financial jargon. They’ve spent a lot of time understanding millennials, and their product strikes the right balance in terms of the content available on the product, the design, and the investment flow.
The Groww app also offers a rich user experience with real-time notifications and insights because:
- Millennials are open to reading and listening to content
- It can explain that mutual funds are both a short-term and long-term product
- The Groww team can offer real-time support while millennials dip their toes in the market
The top 3 reasons millennials say they don't invest is because they don't have enough money, they don't have the time to invest, and they don't know the first thing about investing.
Groww research show that there are over 200 million people with investable income in India; of these only 20 million are investors. Convincing the next 180 million jittery individuals to enter the market will be the challenge and investment platforms like Groww are doing this by making investing simple.
Millennials need to know why it’s important to get off the sidelines and get into the investing game. Unless you’re independently wealthy or have a long-lost rich uncle who will swoop in and save the day, investing is a critical act. All investments come with risk, but letting your money sit in cash presents a risk of its own. The best time to get started in investing is today, and with Groww at your fingertips, you can start right now.