DO GEN Z INVEST DIFFERENTLY FROM OLDER GENERATIONS ? A GENERATIONAL STUDY

Abstract

In the context of India’s rapidly evolving financial ecosystem, this research examines whether Generation Z (individuals born between 1997 and 2012) exhibits distinct investment behaviors compared to Millennials, Generation X, and Baby Boomers. The study is motivated by the increasing participation of Gen Z in financial markets and the widespread adoption of digital technologies, which are believed to influence their investment patterns. By investigating generational differences in risk tolerance, investment frequency, technology adoption, and the use of digital platforms, the research aims to provide a comprehensive understanding of how investment practices are shifting with demographic change. A quantitative, cross-sectional research design was employed, utilizing a structured questionnaire to collect primary data from respondents representing all four generational cohorts. The survey captured information on investment status, risk appetite, frequency of investments, perceived influence of technology, and the usage of digital investment platforms. The sampling method was non-probability convenience sampling, with efforts made to ensure diversity in age, professional background, and geographic location. Data analysis was conducted using statistical tools such as Chi-Square tests, One-Way ANOVA, and Kruskal-Wallis tests to identify significant differences and associations between generational groups across key variables. The findings reveal that, while there are observable trends—such as Millennials displaying higher risk tolerance and Baby Boomers being more risk-averse—these differences are not statistically significant within the sample. Investment frequency also does not differ meaningfully across generations, with most respondents, regardless of age, falling into moderate or infrequent investor categories. The influence of technology on investment decision-making appears consistent across all age groups, indicating that digital tools have become normalized features of the investment landscape. However, a significant generational divide emerges in the use of digital investment platforms: Gen Z and Millennials are far more likely to use apps and online services for investing, whereas older generations continue to rely on traditional methods.