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Exploring Digital Investment Platforms: A New Era for Young Investors in India

You know that moment in The Lion King, when Rafiki holds baby Simba up for the first time for the whole animal kingdom to see (cue: Nants ingonyama bagithi baba!) to denote the dawn of a new age under a new rule? You just get the feeling that things are changing and new avenues are opening up! It’s what the music invokes!

That music is exactly what plays in our minds when we think about the dawn of the digital age – a lion in its own right!

It has been revolutionary! And this resolution has led us to the wonderful world of digital apps! You want to spend? There’s an app for it. You want to save? There’s an app for it. You want to invest? There’s an app for it. And there are also apps that do it all! 

If you are a young investor, you know that money management starts the minute you get your first salary check! And we know without a doubt that you are (at the very least!) intrigued by the many digital investment platforms in India today. And you should be!

So, today we thought we’d talk a bit about digital investing, digital investment platforms, and what they bring to the table!

What is digital investing?

Digital investing, also known as online investing or electronic investing, refers to the practice of using digital platforms and technology to buy, sell, and manage various financial assets. These could include stocks, bonds, mutual funds, exchange-traded funds (ETFs), digital gold, and so much more. 

This approach allows you (the investor!) to carry out your investments without the need for traditional physical intermediaries like brokers or financial advisors!

What are the benefits of digital investing?

Digital asset investments or digital currency investments are different digital investment types that fall under the purview of digital investing. But for now let’s get into why we hear utopic music when talking about digital investing. There are so many benefits of digital investing that are particularly important for young investors, as they equip you with resources and information that can help you create a robust investment portfolio. Let’s dive right in (Cue: Music!) – 

1. Accessibility & Convenience – Digital investing platforms can be accessed anytime and anywhere through smartphones or computers, making it convenient for you to manage your investments on the go. For a generation that likes to have all the answers at their fingertips, digital investing becomes a sure-shot winner.

2. Lower Costs – Many digital investment platforms offer lower trading commissions and fees compared to traditional brokerage services, which can be especially appealing to young investors who may have limited funds to invest. While there may be transactional charges employed when using some digital investing platforms, there are also a number of such apps that will offer zero-cost transactions for your investments.

3. Diversification – Digital investing platforms provide access to a wide range of investment options, including stocks, ETFs, mutual funds, digital gold, peer-to-peer lending, and more. Having the option to diversify through digital investing apps will allow you to build diversified portfolios tailored to your financial goals while mitigating risk.

4. Educational Resources – Many digital investing platforms offer educational resources, tutorials, and investment insights that can help young investors learn about financial markets and make informed decisions. For instance, Deciml’s Wise Up feature is an archive of information on topics ranging from personal finance, to investing, to all things fintech. Such resources will allow you to gather relevant insights which can be useful while charting out your own investment journey.

5. Low Investments – “I don’t have enough money to start investing.” Nope. This reason is no longer valid in today’s day and age of digital investing. Digital investment platforms often have low or no minimum investment requirements, making it accessible for young investors to start investing even with a small amount of capital. For example, with Deciml you can start investing with just your spare change, and you can actually invest as little as ₹1! So, it would seem like you have no excuse to not invest now! 

6. Advisory Bots – Yes! Artificial Intelligence has a role to play in digital investing. A number of digital investment platforms will use algorithms to create and manage portfolios based on an investor’s preferences and risk tolerance. You can also find chatbots that can help clarify your doubts on the go (Deciml’s Dot, for example!). This approach can be attractive to young and inquisitive investors who are just starting to learn about investing and want the occasional help.

7. Goal-Based Investing – Having clearly demarcated goals lends not only direction but also motivation to your investment journey. Some digital investing apps allow investors to set specific financial goals and create investment portfolios aligned with those objectives.

8. Automation – Automated investing through digital investment platforms means you can enable auto-pay to carry out your investment transactions, i.e., no manual intervention will be necessary for your investments to go through. Not only does this help you build up a nice little nest egg through regular investments, but it also allows you to cultivate the discipline required to invest regularly – and once you start seeing the returns rolling in – you’ll be hooked!

9. Flexibility – Want to try out different investment strategies? Great! Digital investing is just right for you then! The resources and features of digital investment apps are set up in a way where they offer investors all-round flexibility. Whether you want to diversify, invest less (or more!), or tweak your risk profile – digital investment platforms are a one-stop shop for flexible and smart investing.

All these benefits are yours to unlock – if you pick the right investment app. It is important that you do your due diligence before selecting a digital investment platform that aligns with your financial goals.

Always keep in mind that while these apps do offer numerous benefits for the investor, it is up to you to remain financially informed to leverage these benefits to optimize your returns on investment.

FAQs

  • What is digital investing?

Digital investing refers to the practice of using digital platforms and technology to buy, sell, and manage various financial assets including stocks, bonds, mutual funds, exchange-traded funds (ETFs), digital gold, and so much more. 

  • Can I invest small amounts through digital investment apps?

Yes. Digital investment platforms often have low or no minimum investment requirements. For example, with Deciml you can start investing with just the spare change from your online transactions, and you can actually invest as little as ₹1.

  • How can I diversify my portfolio using digital investing apps?

Digital investing platforms provide access to a wide range of investment options, including stocks, ETFs, mutual funds, digital gold, peer-to-peer lending, and more. You can customize your investments across various asset classes using most digital investment apps.

  • Do digital investing apps have any costs associated with them?

Some apps do, and some don’t. You have to research your options and compare their transactional or operational fees before selecting the right platform for you.

  • Can my investing be automated on digital investment apps?

Yes. Many digital investing apps will give you the option to automate your investments.

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