Here's how investment apps are helping millennials meet their financial needs in Covid-19 times

Introduction

It's been over a year of personal financial upheaval since the COVID-19 plunge. But despite the pandemic, the past year was also a decisive moment in history. It changed how people began to invest. Many began to reconfigure their personal budgets and look for low-cost investment tools to accomplish their financial goals. Several companies launched easy to use investment platforms that took the heavy work of researching, analysing and putting money in the right assets on the investor's behalf.

The emergence of investment apps

A wide array of digital apps such as expense trackers, stock market apps, tax-saving tools, investment, and digital lending apps emerged to help millennials address their financial planning needs. This evolving new trend is revealing young investor appetites to save and invest and discover new investment opportunities.

Additional Read: The millennials guide to becoming rich

Investment apps come with low fees and offer the convenience of trading and investing on the go. Until a while back, high fees and lofty barriers of entry kept several people away from investing. But the emergence of micro-investment apps has broadened investment options for the common man. This new revolutionary concept of investing has helped introduced a record number of new investors to the stock market.

Millions of millennials around the world reaped the many benefits of using investing apps for their money. Let's look at how you too, can follow suit. Here's what investment apps provide:

Allows for low minimum deposits

Investing through an investment app does not require a ton of money to begin. Several spare-change or micro-investing apps allow you to invest with a minimal amount that helps teach financial discipline. For instance, the spare change that remains after rounding up a purchase can be put into your investment app account. It also helps build money awareness, such as cutting down on unnecessary expenses or tweaking your budget to save more and watch your savings and investments grow. With low barriers of entry, investment apps have opened the door wide for anybody to invest.

Excellent for new investors

If you're new to investing, a financial app can be the right choice for you. These apps make it effortless for you to invest and allow you to see how to segregate your assets. A few investment apps also provide you with a hands-off approach. This easy approach takes additional money from your savings account or spare change from your online purchases to invest automatically on your behalf without any manual effort. Several others also provide personal finance awareness, investor guidance and information on how to invest that can be instrumental for new investors. These cutting-edge apps use algorithms to assist investors in making financial decisions based on their goals, time horizon and risk appetite.

It comes with low fees

All investment apps come with low minimums and nominal fees. That can make it convenient for investors with low incomes as well as new investors wanting to foray into investments.

Easy to use

Investment and financial apps are designed and built to be user-friendly. You can set up your account in minutes and begin investing. You can also track the growth of your money at any time and choose to review your options whenever required. An investment app researches the right stocks or investments you need to pick and trade based on your risk level and financial goal. Besides, you can also view the progress of your assets and a projection of your future earnings if you continue with regular contributions. Several apps also provide you with recurring contributions to your account, and you can set up an automated mandate that invests on your behalf without your intervention.

Presents a curated basket of funds

Reputed financial apps allow you to invest in an expertly curated basket of funds and stocks based on intelligent parameters. So whether you're looking to save for your future education or early retirement, all you need to do is pick from ready-made mutual fund baskets that are ready to invest financial tools in accomplishing your goals. These financial apps determine the quality of funds and help reduce your investment risk. You can invest by a Systematic Investment Plan [SIP] for the long run and build wealth through your long-term periodic contributions in leading handpicked funds.

Start today, start now

With uncertainty and volatility all around, you may be thinking you need to wait it out for the right time to invest. But that can be a mistake. Waiting for the perfect moment or date can delay your goals. Postponing your investment plans can be a grave mistake since there is no best time.

The right time to start investing is always in the current moment.

The coronavirus pandemic revealed to every individual the importance of building an emergency fund. Across income levels, millennials looked to investment apps to save for emergencies to be prepared for future rough times. So if you are new to investing, begin by saving for your first goal — an emergency fund and work your way towards other financial goals through various SIPs in mutual funds in the right financial app.

Watch Now: How to invest in One Click Investment baskets?

Conclusion

Until recently, investments were usually facilitated by large banks or financial institutions with face-to-face personal contact. But that’s no longer the case. The advancements of financial and investment apps have helped level the playing field. Today, several millennials are benefitting from robo-advisories through investment apps and these apps can benefit you too. If you're looking to enter the world of investment without putting in time and effort, using the right investment app can help you grow wealth and meet your financial goals.

Disclaimer:

ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai - 400 025, India, Tel No : 022 - 2288 2460, 022 - 2288 2470. AMFI Regn. No.: ARN-0845. We are distributors for Mutual funds. Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. Please note, Mutual Fund related services are not Exchange traded products and I-Sec is just acting as distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents herein mentioned are solely for informational and educational purpose.