For decades, wealth creation in Nagpur meant fixed deposits, recurring deposits and gold purchased every festive season. The stock market was often viewed as speculative and reserved for seasoned investors. Today, that mindset is changing as young professionals begin investing through mobile apps, SIPs and Demat accounts much earlier in life. Today’s investors are driven by financial independence, goal-based investing and the desire to build wealth early. At the same time, many are tempted by derivatives, high-frequency trading and the promise of quick returns. Twenty-seven-year-old Sameer Kamwani is a good example of that.

 

While his father trusted fixed deposits and gold, Kamwani has four SIPs running alongside his stock market investments. But he too, like many first-time investors, admits he began investing before fully understanding what he owned, learning about markets only after entering them. Investment Advisor Tushar Badjate said investing has seen major changes over the past two decades. “Twenty-five years ago, equity investing sounded more like a taboo than an option. Today investors are talking about compounding, asset allocation, SIPs and financial independence. That quality of conversation is what has changed the most,” he explained. Women are also emerging as an important investor group. Badjate estimates that participation by women has grown by triple digits over the past decade, with homemakers, professionals and businesswomen making independent investment decisions. Industry experts attribute much of the recent surge to the COVID-19 pandemic.

 

A city-based broker, who requested anonymity, said lockdowns became a turning point as people confined to their homes looked for both engagement and income opportunities. “During COVID, the stock market was one of the few sectors functioning normally. Youngsters entered both for entertainment and investment, especially because markets were delivering strong returns. That period witnessed the highest number of trading accounts being opened,” he asserted. However, experts caution that easy access to markets has not always been matched by financial understanding. Investment Advisor Milind Khasnis noted that today’s time has made investing simple, but not necessarily wiser. Drawing from his experience, Khasnis believes the younger generation is chasing quick profits rather than long-term wealth creation.

 

Khasnis pointed to SEBI’s repeated warnings on the risks associated with derivatives trading, and noted that studies by the regulator have shown a majority of retail traders in the Futures and Options segment incur losses. Despite this, many young investors enter F&O, options and other complex products without understanding the risks involved. CA and investment advisor Premlata Saboo explained the problems due to which youth is not able to cope with the market. According to Saboo, one category of investors remains too conservative, relying only on fixed deposits that often fail to beat inflation. Another enters the market out of fear of missing out, loses money and exits permanently. A third never reaches investing at all, burdened instead by high-interest credit card debt. As Khasnis concluded, everybody wants fast money, but genuine wealth is never created overnight. That impatience is why many young investors struggle. Hence, as Nagpur moves towards stock market, it is important that decisions are not driven by impulse but by understanding. n