A new era of investing: strategies for changing investor needs

Over the past decade, the investment world has become increasingly complex with new options rooted in technology, securitization, and more. This has led to a surge in retail investors, particularly among younger generations. Two clear groups of investors have emerged: first-time investors early in their careers and experienced investors focused on wealth preservation. Understanding these groups is crucial for success in the evolving investment space. New fintechs are fulfilling social desires by transforming investing into a cultural movement, while impact investing has gained popularity due to younger generations' interest in socially responsible investments. However, there is concern about the lack of education among new investors and their potential vulnerability to market fluctuations. Traditional wealth management firms and human financial advisors still have a role to play, particularly for more experienced investors with complex assets. The most powerful model emerges when digital investment advisors and human financial advisors come together, offering the best of both worlds to investors.