Trading is a better investment than investing, according to new research from the investment banking internship program at Fortress Investment Group.
Investing, the second-most common investment, saw a 16% increase in the share of millennials and a 17% increase among people under 30, according a study published by the New York Fed.
The study, published Thursday, found that millennials were the only group to see an increase in trading and investment investment.
The Fed also found that the most common investment was money market mutual funds, with only 18% of people surveyed saying they invested in these types of funds.
In contrast, only 17% of investors under 30 said they invested their own money, the study found.
“Investing is a much more rewarding experience, but the experience of trading is much less exciting,” said lead researcher, Matthew Purdy, an associate professor at the College of Business at Rutgers.
“People who are more comfortable with riskier investments are likely to be more inclined to participate in trading.
People who are less comfortable with the process, however, tend to be less willing to take the risk.”
The study was based on interviews conducted from March 8-18, 2018 among 1,800 U.S. adults who graduated from the College for Business and Management.
The researchers focused on millennials who graduated in 2018 and those who graduated last year.
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