Socially responsible millennials, taking control of stock markets
Off late, stock Markets are witnessing a massive influx of young yet gullible millennial Investors who are experimental enough to take the direct equity route regardless of consequences. We come across many instances where youngsters borrow money from family and friends to ride the rising tides of stock markets. However, inexperience, lack of knowledge and patience leads to capital erosion in no time.
Another worrying trend with investors especially traders is their fascination towards derivative products commonly known as F&O. Many amateur F&O traders do not survive even a quarter and end up losing substantial or entire capital.
Similar is the trend with experienced traders like a frog in boiling water, they do not realise losses and live in procrastination till the point it becomes too late to recuperate.
However, every cloud has a silver lining, we see a parallel rise of Socially responsible millennial investors who prioritise positive social impact alongside healthy return on Investment. These millennials have found new age investment startups that not only help them identify healthy companies but also find companies who comply with sustainable developments, Principles of responsible investments and Shariah compliance.
New age online Investment platforms are helping millennials make smart & responsible investment decisions to generate healthy and ethical returns. These startups promote only long term investing & surprisingly do not focus on short term trading and derivatives which in the words of warren buffet are “The weapons of mass destruction”.
Access Shariah compliant halal companies trading on Indian Stock Markets
While most of the new Investment platforms follow a general investment philosophy, there are few who standout for their noble cause of SOCIALLY RESPONSIBLE INVESTING PHILOSOPHY, majority millennials are peace loving and want to be a responsible global citizen, thanks to the rising awareness of climate change, human rights protection, environment friendly policies and awareness programs by developed countries and sufficient media coverage.
Marhaba wealth is one such platform that helps investors identify socially responsible companies by screening them on Shariah compliance parameters. The platform filters out companies involved in Gambling, risk averse financial services, weapon manufacturing etc.
Filter Shariah compliant halal stocks based on sector and market cap
Surprisingly the millennials also show their gullible side by getting attracted to the deceptive glitter of stock markets in lieu of making big bucks in no time. On one side, they want to be socially responsible towards their society but when it comes to their own care most of them surrender to the glittering world of artificial success and entrap themselves in the vicious cycle of debt and unaffordable high standard of living.
Another major worry especially with Indian Investors is the trap they fall into unregulated / unprofessional free advice from friends and social media hence these startups have an uphill task to win customers for their professional advice. Nevertheless, if these startups can manage to familiarise their platforms with different personas of investors & deliver inflation beating returns, they pose a serious challenge to incumbent players like traditional stock brokers, investment advisers and distributors.
In today’s context for long term healthy returns it’s imperative on Stock market investors to not only study the fundamentals of potential companies from annual reports, quarterly results & corporate actions but also look for the company’s contribution towards social causes like human rights protection, pollution control, genuine CSR activities. A lot of this painful process is simplified to a great extent by socially responsible investing startups like Marhaba Wealth, hence investors need to take advantage of these platforms.
Beginners in stock markets can generate healthy long term returns & control portfolio volatility to a great extent by way of appropriate diversification of funds in businesses that display high degree of social responsibility towards the ecosystem they operate around. First timers should avoid concentrated portfolios like 5–15 stocks, rather they should diversify funds in 7–10 sectors spread over 18–25 stocks.
The world needs to see more wealth-tech startups in the space of Socially responsible investing where millennials not only get a chance to play a role in building a safer cleaner world but also secure their future by avoiding catastrophic investment practices like short selling, derivatives trading and speculation.
While startups mentioned in this article appear to be promising with good intentions, investors should constantly educate themselves about financial markets, Socio-economic and most importantly read books on long term investing.
Invest and trade in socially responsible companies on Indian Stock Markets.
