A Study on Risk Perception and Management for Generation Y

In this paper we investigate the participation of dynamic generation Y, in the financial market and their preferences for investment in the available financial instruments. Generation Y describes the demographic cohort of young adults who have grown up with personal computers, cell phones and the Internet and are now taking their place in a world where the only constant is rapid change. The age distribution of Indian population shows a distinct bulge in the age group of 15-35 years. This is propelling India in to a newer orbit and is driving radical changes in lifestyle, economy, culture, values etc. The study is an expansion on previous work and includes perceptions of risk and strategy to manage the risk using available investment options. The third generation technology empowered them to explore the risk taking market and fluctuating market in the current scenario, but the preliminary findings shows that they are less participative in investment and risk taking financial activities.