'Indian stock market has become a lot younger post-pandemic': Zerodha CEO Kamath

Zerodha CEO Nithin Kamath, in a recent post on X (formerly Twitter), said that the Indian stock market has become considerably younger after COVID-19 pandemic.

"One good thing about all the post-pandemic excess in the stock market is that the Indian stock market has become a lot younger," he said.

While he acknowledged that many young investors are making common mistakes, he emphasised that early financial missteps can be valuable learning experiences.

He emphasizes that while reading and learning about the market are crucial, real financial literacy often comes from making mistakes and learning from them, particularly when young investors have less to lose compared to later stages in life when financial responsibilities are greater.

"Better off making all the mistakes when they are young and have very little to lose than later in life when they have more money and responsibilities," Kamath said.

Nithin Kamath shares post on X

One good thing about all the post-pandemic excess in the stock market is that the Indian stock market has become a lot younger.

Of course, many of these young investors are doing a lot of things they shouldn't be doing. But they are better off making all the mistakes when they… pic.twitter.com/WJ3FvQnfKY

— Nithin Kamath (@Nithin0dha) October 15, 2024

Surge in young investors

Nithin Kamath also shared a link to an in-house blog post from Zerodha that highlighted that Gen Z investors—generally described as those born between 1997 and 2012—began saving and investing at 19 years old, according to the survey. While baby boomers—Americans born between 1946 and 1964—didn’t start until age 35, on average.

The blogpost, which Kamath shared, also shows that the rising participation of young investors is not just a US phenomenon but also happening in India.

It wasn't just India; the blog post highlighted that all major markets added more users during the 2-3 years of the pandemic than in the entire preceding decade. A significant portion of these new investors were under 25 years old.

It further noted that advancements in investing platforms—facilitated by Aadhaar, Digilocker, and UPI—combined with widespread smartphone use and affordable mobile data have made investing more accessible than ever.

However, the young investors excitement led to risky behaviours, including a spike in penny stock trading, options speculation, and a frenzy around cryptocurrencies and NFTs.

"The period between 2020 and 2022 ranks up there in the top five craziest market phases in the 400-year history of modern financial markets," the post said.