Investment Products Trends Among Millennials and Gen Z: Latest Insights
Ranked: The 5 Most Popular Investment Products for Millennials and Gen Z
Stocks are the top investment for millennials and Gen Z. Find out what else each group likes to invest in and what's worth having in your own portfolio. Image source: The Motley Fool/Upsplash
Investment Preferences Across Generations
There are many ways you can invest your money, from traditional options like stocks and mutual funds to more recent options like cryptocurrency. In all likelihood, your age will play a large role in which investments you choose. Younger and older generations each have their own preferences in investment products.
- Millennials are open to a variety of investments. They had the highest ownership rates of 7 out of 9 investment products. That's probably in part because they started investing around the same time that zero-commission trading became the norm, providing the opportunity to invest in anything at an affordable cost.
- Gen Z members haven't started investing yet. This is understandable, but starting early can make a big difference in the long run. Despite their age, they should consider investing, even if it's in small amounts.
Choosing the Right Investments
The stock market has historically grown at a rate of about 10% per year. Investing in stocks, whether individually or in investment funds, is a smart decision. Millennials are the most likely to invest in stocks and crypto, while Gen Z shows interest in stocks and mutual funds.
Retirement accounts are essential for tax savings and financial security. Every investor should consider having at least one retirement account, such as a 401(k) or IRA. Diversifying your portfolio with assets like bonds, real estate, and crypto can offer stability and growth potential.