Saving and Investment Behaviour of Generation Z: An Empirical Study Among Young Adults in Bengaluru

Generation Z has become an important part of the population that has increasingly entered into the stock market because of increased financial knowledge, technology advancement, and easy access to online investments. It is very important to understand the savings and investment behaviour of Generation Z so that appropriate financial products can be designed. The present study attempts to look at the saving behaviour and the investment preferences along with the variables affecting the financial behaviour of Generation Z in Bengaluru. Financial literacy, income level, risk-taking ability, and online investment platforms have been analysed in relation to the savings and investment behaviours of Generation Z. Descriptive research methodology was used in the study and primary data were gathered using a questionnaire from 150 members of Generation Z. The secondary data were collected from research journals, books, and reports available from the RBI, SEBI, and other credible sources. The collected data were analysed using the method of percentage analysis, charts, and descriptive statistics. The results suggest that although most members of Generation Z have been able to establish saving routines, they would rather choose investment options like mutual funds and stocks because of their high returns on investment and ease provided by digital investment apps. The factors of financial literacy, income, and perceived risk play an important role in making investment decisions of Generation Z.