Stocks have overtaken mutual funds as the preferred investment option for India’s Gen Z, with 58% of young investors now investing in stocks compared to just 39% in mutual funds, a new report from Fin One, an initiative by Angel One, reveals.

The Fin One: Young Indians’ Saving Habits Outlook 2024, compiled in collaboration with Nielsen, highlights a shift in the investment mindset of younger Indians, who are increasingly turning to the stock market, a relatively risker investment bet, for higher returns over traditional savings options.

72% of young investors prefer equities over FDs

The survey, which sampled over 1,600 young Indians across 13 major cities, found that stocks are now the top choice for young investors, especially in the 18-21 age group, with 72% of respondents preferring equities over safer, low-risk options like fixed deposits and gold.

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This change is a sign of the younger generation’s growing comfort with riskier investments and the increasing influence of financial technology in shaping their decisions.

Gen Zs take to YouTube for financial tips 

A notable trend highlighted in the survey is the increasing role of digital content in financial education. YouTube has become the go-to platform for 62% of young adults seeking financial knowledge, overtaking traditional sources such as family and friends, who were cited by 52% of respondents as secondary sources of financial education.

This shift underscores the growing appetite for self-directed learning among millennials and Gen Z, with platforms like YouTube offering easily accessible financial guidance.

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