As per a recent report by Deloitte India, millennials are the main breadwinners in India with approximately 47% share in the working age population. Falling in the age group of 18-35 years, millennials are the biggest demographic class in India and have high amounts of disposable income. Tapping this segment can help advisors to grow their business. Keep these things in mind when you meet a millennial for financial planning

1. Pay attention to asset allocation
Millennials might be tempted to invest majority of their earnings in equities even though they may not possess adequate experience about how the markets function. As a financial expert, you must assess their cash flow limit and suggest appropriate asset allocation. Explain the significance of other investments such as bonds, SIPs, ELSS etc.

2. Begin with low risk investments
Millennials have a low risk appetite. In case they make a loss in their first experience in any investment, they might back off from investing again. Hence, financial advisors must familiarize them with low risk schemes so that there is less likelihood of losses. Once they are confident about the product, you can increase the risk level gradually.

3. Forewarn them from falling into a debt-trap
This category of individuals can easily opt for EMI facility and credit cards. They also tend to spend money on things they don’t need putting them at a larger risk of accumulating debt. Financial experts must tell them the importance of budgeting and how to control their debt efficiently.

4. Plan for early retirement
Owing to high salaries, many millennials wish to stop working early as compared to the older generation. Combine that with a longer life expectancy and it means they will require a sizeable retirement corpus. Advisors must encourage millennials to begin saving early for their retirement to ensure they lead a comfortable life later.