Millennials prefer fintechs for customised financial advisory

Bengaluru, 6 March: Investment advisor platform Multipl has released its ‘Spendvesting’ report which shows that Indian millennials and Gen Z now prefer to save, invest, and then spend on lifestyle, travel, and gadgets. Popularly known as spendvesting as a strategy, millennials are able to save a significant 20 per cent on their lifestyle spends by following this strategy.

This approach, developed by Multipl, merges lifestyle goals with prudent investing that helps them to build a sound lifestyle without compromising on their financial future.

According to the report, travel has emerged as the preferred category among millennials followed by gadgets and shopping.

The company said that around 50 per cent of the investors following this strategy fall in the 26-34 age group, showcasing the strategy’s resonance among young people.

Commenting on the report, Paddy Raghavan, co-founder of Multipl said, "Spendvesting is not merely a financial strategy; it represents a shift towards mindful and gainful consumer behaviour. Our collaboration with Blume Ventures, Augmont, and DSP Mutual Funds, has enabled us to offer a report that is intended to inform and equip consumers to meet their financial objectives while pursuing the lifestyle they aspire for."

He said that as interest and participation in spendvesting strategy grows, it is likely to capture a wide-ranging audience, capitalising on India’s expected digital economy boom to $1 trillion by 2030.

According to the report,millennials and Gen Z are increasingly opting for fintech startups for getting customised investment advice. This bodes well for the overall fintech ecosystem, which is aggressively looking at young people for increasing its customer base. The report said that an average software engineer earning between Rs 12 lakh- Rs 14 lakh annually could save around Rs 1.2 lakh per annum simply by adopting spendvesting strategy.