The Age of Investors is Getting Younger
The trend of investing is becoming increasingly popular among young people, indicating a growing awareness of financial management and future financial foundation building.
According to survey data from HSBC, Gen Z starts investing at an average age of 23, and Millennials at 27. In contrast, older generations started later, with Gen X and Baby Boomers averaging 31 and 33, respectively. The survey also reveals that Millennials and Gen Z allocate a significant portion of their income to investments, with 27% of their earnings, higher than the 22% of Baby Boomers.
Starting financial management and building wealth at a young age means that today’s youth face a lack of knowledge and experience when choosing effective capital allocation methods for real estate, stocks, fund certificates, and other channels. Along with this, the fear of missing out (FOMO) is also one of the reasons why young people make inefficient decisions, leading to losses, which can eventually create psychological barriers to market participation.
A Gathering Place for Young Investors
At a workshop titled “Confident Investing – Optimizing Opportunities,” organized by the State Securities Commission (SSC) and Dragon Capital Vietnam, young investors shared their personal experiences, from losing money due to FOMO to lacking knowledge and hesitating to invest, thus missing out on opportunities.
Travel blogger Ly Thanh Co shares his experiences at the workshop.
Ly Thanh Co (born in 1992, a travel blogger with over 400,000 followers) shared that he used to invest in traditional styles such as business or savings. However, the male blogger gradually realized the importance of diversifying investment channels to minimize potential financial risks.
Meanwhile, Thuy Linh (born in 1995) is also navigating her investment journey. After graduating from a top university in Economics and starting her career with a monthly income of VND 12 million, Thuy Linh decided to venture into the stock market, an area where she felt confident in her knowledge and connections with peers. However, she lost VND 60 million in her first investment attempt. From this failure, Thuy Linh learned the importance of identifying companies with potential, investing for the long term, and maintaining self-discipline.
Expert Advice: Invest as Early as Possible
According to a survey by the Organization for Economic Cooperation and Development (OECD), only about 30% of Vietnamese adults have financial literacy, lower than the ASEAN average of 38%.
This is also one of the concerns that led the SSC and Dragon Capital Vietnam to organize the workshop to provide financial knowledge and share experiences with new investors. “We believe that mindset is the most important factor in investing, as it will motivate individuals to explore and gain confidence in choosing channels and allocating capital,” said Luong Thi My Hanh, Director of Asset Management, Domestic Block of Dragon Capital Vietnam, at the workshop held for nearly 300 new investors in late October in Ho Chi Minh City.
Luong Thi My Hanh, Director of Asset Management, Domestic Block of Dragon Capital Vietnam
According to Ms. Hanh, the age of financial awareness is getting younger. Data from Dragon Capital’s DragonX app shows that investors under 35 years old account for 35-40% of the capital market participants.
The representative from Dragon Capital emphasized that early investment is crucial as time has a significant impact on individuals’ financial foundation building journeys. Ms. Hanh pointed out that hesitating to invest early on leads to a loss of wealth accumulation opportunities, or what is known as an “opportunity cost.”
For example, if an individual starts investing VND 5 million per month in a fund from the age of 30, with a 15% annual investment yield, by the time they turn 60, the total amount could reach approximately VND 34 billion. However, if they wait until they are 40 years old, to achieve the same goal of VND 30 billion in 20 years, they would need to invest VND 20 million per month, four times more than those who started a decade earlier.
Along with this, “new investors, especially young people, need to thoroughly understand the legal regulations before entering the market and grasp the best risk control measures,” said Bui Dinh Hoa, an SSC expert, to the attendees.
According to experts, new investors also need to develop another critical factor: discipline in investing. This will foster a long-term investment habit with a stable frequency.
At the workshop organized by the SSC and Dragon Capital Vietnam, nearly 300 new investors gained insights into the basics of the capital market and learned about fund certificates as one of the most popular investment channels today. Fund certificates offer the advantages of a diversified portfolio managed by experts, easy participation, and the ability to develop a periodic accumulation habit.
You can start your investment journey with fund certificates here.
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