A few decades ago, fixed deposits (FDs) were India’s preferred investment instruments. But with interest rates on FDs declining in years past to levels not even enough to combat rising inflation rates, they have quickly lost popularity.
For the fear of losing the value of money, millennials have since started dabbling in other forms of investment. This trend saw a big uptick in 2019.COVID-19’s impact on marketsThe pandemic brought a huge wave of investors into the stock market.
The Fed rates were low, the market was buoyant, and there was a huge inflow of foreign investments in the Indian market. Plus, the stretched-out work-from-home situation saved the salaried class rent and travel expenses.
With all these stars aligned perfectly, the stock market and the cryptocurrency market saw a huge boom in Indian investors, most of whom were millennials. Data also shows that Indian investment into the US grew more than 200 percent year-on-year in 2021.This was conclusive proof that people were open to -- A) Actively investing in places that are not ‘traditional’ and B) Jumping onto the digital bandwagon since they used fintech apps to invest in both these markets.Also read: Can cryptocurrency replace loyalty rewards programmes?Crypto investmentsWhile both these markets satisfied investor needs, the nascent crypto market wasn't recognised by the government.
Budget 2022-23 introduced a crypto tax of 30 percent on gains and TDS on certain crypto transactions. The announcement officially recognised digital assets, which is good news for crypto enthusiasts.While it is not clear whether the losses in crypto can be offset by the gains to compute taxable amounts, millennials hope that this would be the case so that only net gains are
. Read more on cnbctv18.com