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<ul class="summary-list"><li>Many Gen Z Americans are prioritizing financial savviness, aiming for early retirement.</li><li>Young Americans invest more than previous generations; two-thirds save for retirement early.</li></ul>Gen Z is becoming more <a target="_blank" href="https://www.businessinsider.com/gen-z-most-financially-savvy-generation-retirement-saving-investing-2023-11">financially savvy</a> — and many are doing whatever they can to retire early.Many more young Americans are <a target="_blank" href="https://www.cfainstitute.org/about/press-releases/2023/finra-cfa-institute-gen-z-research">investing</a> compared to their parents in their early- and mid-20s, and two-thirds of Gen Z has already started <a target="_blank" href="https://www.transamericainstitute.org/docs/default-source/research/post-pandemic-retirement-realities-multigenerational-workforce-report-july-2023.pdf">saving for retirement</a>, according to the Transamerica Center for Retirement Studies.Four Gen Z Americans told Business Insider they've followed the principles of the FIRE — <a target="_blank" class="" href="https://www.businessinsider.com/millennials-retiring-early-fire-movement-financial-independence-millionaire-savings-work-2024-5">financial independence, retire early</a> — movement to achieve a high net worth before their 30th birthdays. These include <a target="_blank" class="" href="https://www.businessinsider.com/gen-xers-financial-independence-retire-early-fire-started-saving-late-2024-6">cutting back on spending</a>, investing in <a target="_blank" class="" href="https://www.businessinsider.com/financial-planners-suggest-index-funds-start-investing-2024-5">index funds</a> and real estate, having passive income from <a target="_blank" class="" href="https://www.businessinsider.com/side-hustle-recommendations-jobs-to-try-this-year-concerts-surveys-2024-3">side hustles</a>, and <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/how-much-do-i-need-to-retire#:~:text=You%20can%20maximize%20your%20retirement,out%20your%20retirement%20accounts%20first.">maxing out retirement accounts</a> early.Some said they don't intend on following the "<a target="_blank" class="" href="https://www.businessinsider.com/early-retirement-overrated-financial-independence-fire-return-to-office-balance-2024-6">retire early</a>" part of the acronym and instead want to pursue their passions while making money doing so.Their stories vary widely, from a serial entrepreneur, to a Boeing engineer, to an enlisted sailor in the Navy. But all four emphasized that their sacrifices and risks earlier in life may be the key to their financial stability down the road.<h2 id="259eb44a-82f4-4e95-8a7c-7a266ae95f9b">Cody Berman, entrepreneur and "passive income expert"</h2><div type="image" title="cody berman headshot blue background" height="3123" width="4164" msid="111730410" hostid="261"></div>Cody Berman, 28, hit <a target="_blank" class="" href="https://www.businessinsider.com/best-worst-national-parks-states-financial-independence-retire-early-fire-2024-7">financial freedom</a> at 25 but has no plans to retire early. He started a handful of businesses in college, some of which failed. He achieved success with his disc golf manufacturing company."I had always thought of 'rich' people being people who made a really high dollars per hour — doctors, lawyers who make $200, $300 an hour," Berman said. "Then I realized that you didn't actually have to trade your time for money on a linear basis. You could trade your time, your energy, your money, for things were going to pay you perpetually, whether or not you're working on them."He got a corporate job as a commercial real estate lender but worked on <a target="_blank" class="" href="https://www.businessinsider.com/how-to-change-careers-freelancing-side-hustle-earn-six-figures-2024-3">side hustles</a> each morning and night, sometimes working 15-hour days. He left his job after seven months and went all in on freelancing, digital products, blogging, and podcasting.At 25, he made about $400,000 in a year from side hustles, which is when he considered himself financially independent. He saved about 90% of his income, investing most of his money into index funds and his portfolio of 11 rental properties."I'm not in the <a target="_blank" class="" href="https://www.businessinsider.com/financial-independence-not-retiring-early-millennial-fire-seattle-modest-living-2024-7">FIRE movement</a> for the RE part," Berman said. "I love building businesses."His net worth is about $2.8 million, but he drives a 2015 Nissan truck approaching 100,000 miles. He and his wife live in a one-bedroom property and rent out a four-bedroom property next door. Cutting back on housing costs allowed him to spend almost $10,000 a month in travel, dining, and concerts.Berman co-founded <a target="_blank" class="" href="https://goldcityventures.com/">Gold City Ventures</a>, which helps others launch Etsy businesses selling printables through workshops and courses. Berman said they've seen people quit their corporate jobs and make much more through online selling.<h2 id="4b47ae11-acf6-4bf0-9809-810562964fea">Jubilee Bosch, engineer taking a sabbatical</h2><div type="image" title="Jubilee Bosch at a museum." height="1110" width="1480" msid="111730412" hostid="261"></div>Jubilee Bosch, 26, has worked as an engineer in St. Louis since graduating from college, though with over $190,000 in net worth, she's taking a sabbatical.Bosch was raised in a lower-middle-class family in California by a stay-at-home mom and military father who worked three jobs until starting a house-cleaning business. Though raised to be frugal, she never learned how to invest.After attending community college and a four-year college, she got a mechanical engineering degree and <a target="_blank" class="" href="https://www.businessinsider.com/earned-thousands-in-scholarships-graduated-college-debt-free-2023-4">graduated debt-free</a> due to merit scholarships, college jobs, and some assistance from her parents.After an internship, she was hired full-time by Boeing, making $64,000. She struggled to transition to the corporate world and burned out quickly, but she kept rising up the ranks, negotiating a promotion and a salary increase to $95,000 a year. Around this time, she read about strategies for reaching <a target="_blank" class="" href="https://www.businessinsider.com/financial-independence-retire-early-fire-millennial-income-wealthy-business-owners-2024-4">financial independence</a>, and increased her investments while helping her friends open Roth IRAs.She kept expenses to about $22,000 a year and put most of her savings into the market. She moved into a smaller space with her partner, strategically meal-prepped, and got travel credit cards to lower out-of-pocket flight expenses."I was starting to realize I probably didn't want a traditional career, and I'm sure I'll probably have gaps in my life where I don't have a regular job, so I can roll those over and be tax efficient," Bosch said.She had enough investments and savings to take a year off from work, so she eased up on investing to build a cash cushion. She realized she didn't need to be "hyper-frugal" anymore and could spend on things that mattered to her. She now anticipates retiring between 45 and 55, as she wants to try different career paths."I started to spend more in areas that brought me a lot of joy and realized that some lifestyle creep is worth it and changes the bottom line very little," Bosch said.<h2 id="d1eaf570-5105-4828-808c-817293adc94c">Amber Smith, tech worker-turned-online reseller and content creator</h2><div type="image" title="Amber Smith on a boat" height="2268" width="3024" msid="111730406" hostid="261"></div>Amber Smith, 27, has a net worth of about $250,000 and quit her tech job earlier this year to pursue her side hustles full-time.Smith, who lives in West Des Moines, said her parents sold things on eBay for extra money and stressed the importance of side hustles. She got a full scholarship at college and stumbled into a financial planning internship. She read finance blogs and received training from her manager on how to help others — and herself — best prepare for the future."Here I was in my first real office job, and I thought I could do this for another 40 years of my life, or I could save aggressively now and cut that timeline much shorter," Smith said.After graduating, she did contract work with her local government and a bank. She landed at a startup making $78,000 two years out of college, then transitioned to a financial tech company making about $100,000. However, she was laid off from two jobs back to back, and when she landed in an insurance role, she felt stressed and directionless.She quit her insurance job to grow her side hustles, as she had a large enough nest egg to avoid the office for a few years. She turned down recruiter interviews and focused on monetized <a target="_blank" class="" href="https://www.businessinsider.com/top-ways-to-make-money-as-content-creator">content creation</a> and reselling secondhand clothing.She made $30,000 to $50,000 a year reselling part-time while at her previous companies. She brought in more from brand deals and influencing in the first five months of 2024 than in all of 2023. Content creation hasn't been as consistent, though she made $2,800 once for a brand deal and accepted others paying over $1,000.Though her savings are down this year because of the drop in income after leaving her corporate job, she said she's been smart about her investments and isn't too worried since her net worth continues to grow."I want a way to pay my bills and afford my life, and I want to do that in a way where I'm not stressed out," Smith said. "The peace of it is such a big part, even if I am making less than I was in my insurance job."<h2 id="1e1475eb-db83-4014-8a04-395e1251ab06">Cory Sarkisian, enlisted sailor in the Navy pursuing a financial planning role</h2>Cory Sarkisian, 27, has been an enlisted sailor in the Navy for eight years, saving and investing $375,000 in the process. He and his wife, who have two kids, have been a single-income household for the last six years, moving between San Diego, Hawaii, and Connecticut.Sarkisian had $10,000 saved by the time he joined the Navy, and for his first three years, he didn't have to worry about food or housing, allowing him to save most of his earnings. In 2016, he bought a four-year-old Honda Civic in cash and still drives it.In 2018, he moved out of government quarters and got married. He was given a housing stipend of $2,700 a month, the set amount for someone of his rank, and he and his wife found an apartment for $1,700 a month and kept the rest. He has also never had to pay for healthcare, which is free through the military.In 2020, he began investing in index funds through his Roth IRA and Thrift Savings plan, and he and his wife put 10% down on a condo with a 15-year loan and 1.75% interest rate. He was forced to move to Connecticut two years later, though they sold the condo for $70,000 more than they paid, which they used to start funding their kids' 529 plans, purchase a used car, and put more into brokerage accounts.They've put $180,000 into their Roth accounts, $125,000 in after-tax brokerage accounts, $45,000 in savings, and $21,000 in 529s. With their savings, they traveled to four Hawaiian islands and New Zealand. Sarkisian said he's looking to pursue financial planning after his time in the Navy."We don't feel like we are depriving ourselves," Sarkisian said. "Maybe early on, we endured some deprivation, but we think we have found a pretty good balance."Are you part of the FIRE movement or living by some of its principles? Reach out to this reporter at <a target="_blank" href="mailto:nsheidlower@businessinsider.com">nsheidlower@businessinsider.com</a>.

How 4 Gen Zers are reaching financial independence

The finance guru <a target="_blank" class="" href="https://www.businessinsider.com/dave-ramsey-buying-house-prices-mortgages-personal-finance-affordability-crisis-2024-6">Dave Ramsey</a> famously said that if Americans wanted to build wealth, they should give up their morning coffee. But spend any time in certain corners of personal-finance Instagram and TikTok and you'll see women indulging in sleek caffeinated beverages. They swirl whipped cream on their tall iced coffees, brew black-sesame-matcha lattes, and show off hot chocolate and pastries as they promote strategies to save, invest, and make the most of their credit-card points. These women <a target="_blank" class="" href="https://www.businessinsider.com/multimillionaire-chooses-to-rent-not-buy-home-2024-6">talk openly about being rich</a> and wanting to help other women become rich too.One of those influencers is Tori Dunlap, the founder of a financial-education company called <a target="_blank" class="" href="https://www.businessinsider.com/how-to-start-business-with-no-money-her-first-100k-2023-1">Her First 100K</a>. She aspires to get as many young women as possible investing and to debunk the notion that in order to build wealth they need to deprive themselves of things they enjoy. In a <a target="_blank" href="https://www.instagram.com/reel/CzzfzhsPAr-/">video</a> on Instagram, she considers Ramsey's advice, then erupts into a scream. "It's not the latte that's keeping you from saving money," she wrote in the caption. "It's the systemic oppression."Just a handful of years ago, Dunlap, who was born in Tacoma, Washington, was working a job in marketing and dealing with a toxic boss. Thanks to an emergency fund she'd grown, she was able to quit and start focusing on building Her First 100K — named for Dunlap's goal of <a target="_blank" class="" href="https://www.businessinsider.com/how-to-save-money-in-your-twenties-2024-4">amassing $100,000 in wealth</a>, which she achieved by the time she was 25 by budgeting and investing.Now, Dunlap, 30, has over 2 million followers on Instagram, hosts a <a target="_blank" href="https://www.businessinsider.com/tori-dunlap-new-podcast-hit-top-spot-apple-charts-2021-6">top-rated US business podcast</a>, and is the author of the best-selling book "Financial Feminist." She also launched a platform called Treasury, which says it has helped women invest over $80 million in the stock market. Alongside creators like <a target="_blank" class="" href="https://www.businessinsider.com/instagram-star-mrsdowjones-shares-an-inside-look-day-in-life-2020-10">Mrs. Dow Jones</a>, Simran Kaur, and Rachel Rodgers, Dunlap is a leader of a new wave of personal-finance education focused on teaching Gen Z and millennial women the fundamentals of <a target="_blank" class="" href="https://www.businessinsider.com/feminist-finance-coach-reveals-retirement-blunder-costing-people-millions-2023-5">earning, paying off debt, and investing</a>, using a savvy blend of traditional financial advice, irreverent social commentary, and high-travel memes. You can think of it as financial education for the "<a target="_blank" class="" href="https://www.businessinsider.com/tiktok-anti-work-girl-boss-lazy-girl-jobs-2023-6">lazy-girl job</a>" generation — those who decry the corporate hustle and seek out low-stress jobs that don't take over their lives. In <a target="_blank" href="https://www.instagram.com/p/C6Mjz8dRxOR/?hl=en">one video</a>, Kaur, the New Zealand-based <a target="_blank" class="" href="https://www.businessinsider.com/girls-that-invest-founder-media-company-podcast-instagram-tiktok-revenue-2023-9">creator of Girls That Invest</a>, does her makeup in front of a mirror as she discusses how she's using her investment earnings to build her own trust fund to live on. The message? You too can invest your way out of the 9-to-5 life.If you ask these women, however, they'll say the trend has nothing to do with being lazy and everything to do with giving women the tools they need to take control of their financial destiny. "We're taking something very inaccessible and making it accessible," Dunlap said. If men can use their financial savvy to get rich, then so can women. And in a world where many <a target="_blank" class="" href="https://www.businessinsider.com/gen-z-most-financially-savvy-generation-retirement-saving-investing-2023-11">Gen Zers and millennials expect to be working well past retirement age</a>, the advice is finding an eager audience.On the first day of her first full-time job out of college in 2018, Haley Sacks was asked to fill out her health insurance and 401(k) contributions. "I really wanted to make a good impression, so that night I went home and did what any self-respecting millennial would do," the New York native said. "I looked on YouTube for information, and I was really taken aback by what I found."Nearly all the financial-education content geared toward women focused on home-economics fare like saving and budgeting, she said. Meanwhile, the content she actually needed, which explained the fundamentals of investing, not only was "very dry" but seemed primarily made with a male audience in mind. "I couldn't really find anyone who was teaching money the way that I wanted to learn it," Sacks said. "So I became her." Now, six years later, Sacks, who goes by Mrs. Dow Jones on social media, has 1 million followers on Instagram, where she posts pop-culture-inflected videos on topics like <a target="_blank" href="https://www.instagram.com/p/C3qgCggOZxh/?hl=en">how to predict layoffs at your job</a> and why the<a target="_blank" href="https://www.instagram.com/p/C6cP5t4rxtu/?hl=en"> Cartier Love bracelets</a> Kylie Jenner is famous for wearing may not be a good investment.People like Sacks and Dunlap aren't the first female celebrity personal-finance experts. Sacks pointed to <a target="_blank" class="" href="https://www.businessinsider.com/suze-orman-astrology-burnout-why-millennials-shouldnt-buy-coffee-2020-3">Suze Orman</a> — the pioneering personal-finance guru, author, and TV host — as someone who "walked so all of us could run." But until recently, women looking to wrap their heads around the intricacies of high-interest savings accounts and low-cost index funds had scant few options that spoke directly to them. Personal-finance education in US high schools used to be rare — though it's gotten better in the last few years with half of US states now mandating it. And women-specific financial-education literature tended to focus less on investing in real estate or negotiating a higher salary than on learning how to curb one's spending on supposedly "frivolous" items like coffee, manicures, and haircuts. The message, Dunlap said, boiled down to: "Men get to be millionaires by making more money and being the fullest version of themselves. The way to become a millionaire for women is to basically hate your life." On one level, these influencers are offering well-trodden financial advice packaged for a new audience: Dunlap's book has sections on <a target="_blank" class="" href="https://www.businessinsider.com/personal-finance/banking/what-is-an-emergency-fund">building an emergency fund</a>, <a target="_blank" class="" href="https://www.businessinsider.com/paid-off-credit-card-debt-solid-plan-2024-6">getting out of debt</a>, and <a target="_blank" class="" href="https://www.businessinsider.com/millennial-retired-early-financial-independence-fire-strategies-six-figure-income-2024-5">investing for retirement</a>. She said women comprise 95% of her audience. "We joke that it's largely girls, gays, and theys," she said. Sacks, who calls herself a "zillennial finance expert," said that her content is aimed at people of all genders but that women tend to gravitate to it because of the person who's talking. "We all have the same message," Sacks said. "It's sort of like finding the right trainer who motivates you."These influencers do break from tradition in a few key ways. Citing high interest rates, rising home prices, and a booming stock market, Sacks and Dunlap have made the case for <a target="_blank" class="" href="https://www.businessinsider.com/renting-vs-buying-homeownership-wont-make-genz-rich-increase-wealth-2024-7">renting instead of buying</a>. In "Financial Feminist," Dunlap recommends readers focus on building a three- to six-month emergency fund before paying off debt so they're prepared for a layoff or dangerous home situation. Sacks recommends young people job-hop to keep up with inflation and cost-of-living increases if necessary. "You should be making 15% more every single year," she said. "And if you're not making that at your current job, then you should change jobs." (<a target="_blank" href="https://www.epi.org/nominal-wage-tracker/">Research from the Economic Policy Institute</a> indicates that since 2007 US employees have received an average wage increase of 3.9% a year.)Rita Soledad Fernández Paulino, a California-based money coach and creator focused on women, BIPOC, and LGBTQ+ people, said their goal is to help people become "work-optional" by leveraging their investments. "I like the idea of everyone working because they want to and not because they have to," they said.Leah Sheppard, a professor of management and associate dean for equity and inclusion at Washington State University's Carson College of Business, sees this wave of financial education as a reflection of an awareness among Gen Zers and millennials that the <a target="_blank" class="" href="https://www.businessinsider.com/loyalty-employee-employer-job-security-broken-work-companies-bosses-2024-1">boomer-era version of the American dream</a> — where you work your way up the ladder for 40 years at a single employer and put away enough to retire — no longer applies to them. "Young people are thinking, 'When will I get to a place where I don't really have to worry about money?'" she said. "If they're thinking, 'Traditional employment is not working well, I don't want to start a business' — well, what's the other way? And it's probably getting really smart about how you save money, taking the money that you are saving and investing it and building wealth." Sacks sees it as a matter of young people wanting to take the future into their own hands. "You have to be more self-reliant now than our parents ever had to be," she said.Kyla Scanlon, the author of the 2024 book "In This Economy?", sees the interest in financial-education content on social media as symptomatic of a curiosity about alternative revenue streams, spurred by the rise of <a target="_blank" class="" href="https://www.businessinsider.com/robinhood-collapse-what-happened-retail-investing-meme-stocks-future-finance-2022-2">fintech apps like Robinhood</a> and populist financial movements like crypto and GameStop. "People are looking at the market. They're looking at different income sources, Airbnb, the gigification of everything — and then just how do you have passive income outside of traditional income?" Scanlon said.For <a target="_blank" href="https://www.businessinsider.com/gambling-young-men-sports-betting-crypto-meme-stock-market-addiction-2024-4">young men, this often takes the shape of riskier investments</a> like sports gambling, crypto, and meme stocks. Young women, on the other hand, are turning to more tried-and-true tactics.In a survey of 2,000 adults conducted in July 2023, Fidelity Investments found that Gen Z women were more likely to say they participated in the stock market than any other age group, with 71% of women ages 18 to 26 saying they had invested, compared with 63% of millennial women and 57% of boomer women. These figures dovetail with an uptick in the percentage of people under 35 who held stocks and retirement accounts in 2022 compared with 2019, according to the Federal Reserve's Survey of Consumer Finances, though the Fed doesn't break these figures down by gender.Whether the goal is to retire early or to job-hop your way to a six-figure salary, this wave of financial advice departs from the "lean-in," <a target="_blank" class="" href="https://www.businessinsider.com/rise-and-fall-girl-boss-analysis-2020-7">"girlboss" flavor of feminism</a> that dominated conversations about women and work in the 2010s. "We're just more disillusioned with corporate," Dunlap said. "We're more disillusioned with the way we make money."Instead, it's advice for a generation of women who see their experiences reflected in <a target="_blank" class="" href="https://www.businessinsider.com/lazy-girl-job-is-just-a-healthy-job-2023-12">memes like the "lazy-girl job."</a> "The lazy-girl thing is just like, 'Oh, give me a little bit of rest in addition to my work,'" Dunlap said. "I think that's completely reasonable." But talking about this stuff in public as a woman or queer person can be fraught. Dunlap said she gets "called every insulting thing you can call a woman on a daily basis" and has been on the receiving end of death threats. She said people aren't used to seeing women talking in public about money, and especially not about being rich. "We have different expectations for how men and women should behave, especially around money," she said. "Women shouldn't want it. You should be grateful for the things you have."Other women BI spoke with said they faced harassment. "There's a certain group of men who just don't like women," Scanlon said. But for the most part, the influencers stressed that their content was resonating with the people it was supposed to resonate with. "The comments section on any video is a mess, but it's also the most supportive, lovely thing," Dunlap said. "So many women, championing me, championing each other, championing themselves."The experts BI spoke with all had their own ways of describing the movement. Fernández Paulino said they see themself as belonging to a community of people who approach money and finance in a way that acknowledges the systemic issues that interfere with people's wealth and wellness — such as the economic effects of structural racism and transphobia, or the fact that American women weren't allowed to own a credit card or take out a mortgage in their own name until the 1970s. "For me, it's like, I can have wealth too. You can have wealth too. It's not a you problem; it's a we problem," they said.Dunlap invented her own term to describe it: financial feminism. "It's this idea of getting yourself financially to a point where you are stable, safe, and you have enough wealth to have options, and then using that wealth as a tool to make an impact," she said. In other words, she wants to help women navigate the economic systems we're all swimming in, so they can help other women by changing those systems from within.<a target="_blank" rel="" href="https://www.businessinsider.com/author/emilie-friedlander">Emilie Friedlander</a> is a journalist and editor from Brooklyn, currently based in Philadelphia. She co-hosts <a target="_blank" rel=" nofollow" href="https://theculturejournalist.substack.com/">The Culture Journalist</a>, a podcast about culture in the age of platforms.

Gen Zers are investing their way out of the 9-to-5

<div type="image" title="In 2024, India has seen around $12.2 billion worth of IPOs, including mainboard and SMEs" msid="113878163" hostid="261" sizebytes="45300" caption="&amp;lt;p&amp;gt;In 2024, India has seen around $12.2 billion worth of IPOs, including mainboard and SMEs&amp;lt;/p&amp;gt;"></div> Missing some action, adrenaline rush, and thrill in your life? Are the good old, albeit mundane money investment avenues like mutual funds and fixed deposits not making the cut for you? Want to experience a heart-pounding, financial rollercoaster that will constantly keep you and your portfolio on tenterhooks? Well then, welcome to the world of initial public offers (IPOs), especially those brought to you by SMEs, or <keyword id="6375845" type="General" weightage="20" keywordseo="Small-and-Medium-Enterprises" source="Orion">small and medium enterprises</keyword>. Truth be told, <keyword id="19938687" type="General" weightage="20" keywordseo="sme" source="keywords">SME</keyword> IPOs have been all over the bourses this year. So far, 2024 has seen 206 SMEs debuting on both BSE and NSE, out of which 146 listed in gains and 46 listed in losses. Odds seem good, right? In contrast, the year has only seen 63 IPOs from the elder brother i.e. mainboard, only 48 of which managed to post any listing gains. And getting an allotment has also been a major uncertainty, given the unusually high demand this year. <h2 style="margin-bottom: 0.7em; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; background: 0px 0px; text-rendering: optimizelegibility;">So, what's an <keyword id="5559702" type="General" weightage="100" keywordseo="SME-IPO" source="Orion">SME IPO</keyword>, you ask?</h2>Think of a mainboard company as Shah Rukh or Salman Khan—well-established, financially stable, strong legacy of profitability, and fairly well-known. On the other hand, SMEs are your Prateek Gandhi (Harshad Mehta, Scam 1992), Siddhant Chaturvedi (MC Sher, Gully Boy) or Avinash Tiwary (Majnu, Laila Majnu). While they are doing super well, they are yet to make it big like the Khans. They’re currently underdogs, lesser known, but who knows? They can be the next big thing in the future! And SME IPOs are getting a stellar reception. In 2023, 182 such IPOs had raised a substantial Rs 4,967 crore. In 2024, more than 200 companies have already raised over Rs 7,500 crore, and we have four months to go. This, with one quarter of the year still remaining. <div type="image" title="In 2024, India leads IPO activity in the Asia-Pacific region" height="900" width="1200" msid="113875643" hostid="261" caption="&amp;lt;p&amp;gt;In 2024, India leads IPO activity in the Asia-Pacific region&amp;lt;/p&amp;gt;"></div> But what does it take for a company to be classified as a small enterprise? The company has to have an annual turnover/income of up to Rs 50 crore, and for a medium enterprise to be called so, its annual income has to be up to Rs 250 crore. When such companies go public, in a bid to raise funds from investors and expand their operations, they launch an <keyword id="19898327" type="General" weightage="20" keywordseo="ipo" source="keywords">IPO</keyword>, but not on the main exchange, but separately, on NSE’s Emerge and BSE’s SME platform. As of September 2024, <keyword id="4484133" type="General" weightage="20" keywordseo="NSE-Emerge" source="Orion">NSE Emerge</keyword> has 147 listed participants, while <keyword id="1885131" type="General" weightage="20" keywordseo="BSE-SME" source="Orion">BSE SME</keyword> has 155 market makers. Mounting an SME’s IPO is comparatively less stringent than their mainboard counterparts, as far as regulations are concerned since their DRHPs (draft red herring prospectus) are not filed with SEBI. So, wouldn’t a lenient treatment make them inherently riskier? Why are they so appealing, you ask? <a href="https://www.businessinsider.in/stock-market/news/a-company-with-8-employees-looking-to-raise-12-crore-ended-up-getting-applications-worth-over-4700-crore/articleshow/112824522.cms">Delhi firm with just 8 employees seeks ₹12 crore via IPO, gets ₹4,700 crore worth of investor applications!</a> Well, for one, some of them have delivered exceptional returns—we’re talking 100%, 200%. Consider this—Owais Metal and Mineral Processing, which launched its IPO in February this year, delivered a whopping listing gain of 201%. Another SME, Maxposure, whose IPO was out in January 2024, had earned its investors listing gains worth 317.40%! Apparently, higher risks also mean higher returns, and also super high investment. Most SME IPOs need a minimum investment of Rs 1,00,000 or more, as opposed to mainboard IPOs, where you can buy one lot of shares for anywhere between Rs 14,000-15,000. Even the minimum trading lot size for SME shares is about 10,000. In short, you’d have to potentially empty your pockets to invest in an SME IPO. And still, there’s no guarantee that the listing will fill your wallets. For all you know, your pockets before and after the IPO is listed might stay the same - EMPTY! There's also the question of whether or not these SMEs are able to maintain their listing day mojo, or do they just fizzle out thereafter? Data from Prime Database highlights more instances of the latter. As of August 2024, about 166 SME IPOs had made it to the exchanges. Around 72 of them, or close to 50%, could not sustain their momentum going ahead, and were trading below their listing day prices. Consider this. The post listing gains of Medicamen Organics, whose IPO came out in June 2024, earned its investors massive listing gains of over 300%, by listing at Rs 137.85, significantly higher than its price issue price, which was set between Rs 32-34. But as of October 1, 2024, the stock was trading at Rs 64.2. Talk about falls. Additionally, risks of pump-and-dump, and illiquidity, among others makes SME IPOs dangerous See, you're largely venturing into unknown, pitch-dark territories, without much light to guide you. For starters, SME IPOs face less scrutiny from market watchdog SEBI. This also means they are able to list quickly, just 3-4 months. On the other hand, mainboard IPOs can take upto a year before they are cleared for listing. Also, there is far less information and disclosures available about their financials, fundamentals and performance to investors for making an informed decision, as compared to mainboard stocks. Then there’s the issue of illiquidity. Once purchased, you might find it hard to sell off your SME stocks, since they are not traded as frequently in the market, which means lower liquidity. Trivesh D, COO, Tradejini explains that liquidity is a major concern for such stocks. “These stocks typically have a smaller free float, and are traded in lots, which can lead to volatility and sharp price swings. This means it can be challenging for investors to buy or sell shares without significantly impacting prices. Additionally, speculative trading practices, like 'pump-and-dump' schemes, can inflate stock prices, leaving retail investors vulnerable to sudden drops”. Recently, SME IPOs have gained notoriety for price manipulation via showing fictitious sales and revenue in their books of accounts, selling of promoter holdings at inflated prices, and being the facade for many infamous pump and dump schemes. This is where select people create frenzy, or mass euphoria over a particular stock or company, causing its prices to soar, and then dumping them, or selling their shares at this massive price to make a killing! Infact, it's not just the promoters, but also the investment banks floating these IPOs. At present, SEBI is investigating around 6 investment banks which have allegedly charged SMEs a staggering 15% of funds raised via IPOs as fee, as opposed to the standard 1-3%. In March 2024, SEBI chairperson Madhabi Puri Buch had also highlighted witnessing signs of manipulation in the SME space. “We do see signs of manipulation in the SME segment. We are able to see certain patterns.” Buch had observed back then. Adds Kresha Gupta, Founder &amp; Director, StepTrade Share Services, “Investing in SME IPO comes with significant risks, despite their impressive returns in recent years. Limited participation from institutional investors and public in some SME IPOs also mean that those companies may lack the support and stability that comes with larger-scale investments” “Additionally, many SMEs may not have strong fundamentals to justify their valuations. High P/E ratios can be misleading, and while some IPOs have delivered impressive returns, they often come with significant volatility, continues D of Tradejini. <h2 style="box-sizing: border-box; border: 0px; outline: 0px; padding: 0px; margin: 0px 0px 0.7em; font-family: &quot;Open Sans&quot;, sans-serif; font-weight: 700; line-height: 1.3; color: rgb(0, 0, 0); font-size: 24px; list-style: none; background: 0px 0px; text-rendering: optimizelegibility; text-transform: none; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;">So, should I stay away?</h2>Yes, and No. Yes, if you don't want to do your homework of researching the company thoroughly beforehand. Anand K. Rathi, Co-Founder of MIRA Money suggests asking a couple of questions before investing your hard earned money: <ul><li>What is the company's financial performance over the past 3-4 years?</li><li>What is the company's governance structure?</li><li>Is the financial success driven by the IPO, or is it a result of consistent performance?</li><li>Does the company have what it takes to scale its operations to the next level?</li><li>Are the company’s promoters trustworthy, capable and experienced?</li><li>What is the level of participation by large, institutional investors?</li></ul> But staying away completely? Not necessary. Gupta adds that retail investors, in particular, should avoid viewing SME IPOs as quick money-makers based on their short-term performance, as this can certainly lead to poor investment decisions. “To mitigate risks, investors should always focus on long-term fundamentals rather than just short-term price movements. Key indicators include the participation of institutional investors like DIIs and FIIs. This often signals confidence in the stock”, she continues. A red flag you should look out for is if a company is only offering OFS, or Offer for Sale. This can indicate early investors looking to exit, potentially signaling weaker future growth. That's why it is better to look for companies which are raising capital for expansion purposes. This is a sign of healthy business growth prospects and improving fundamentals. In conclusion, backing the underdog, or SMEs, is not a bad proposition, but not without its risks. Investing in SME IPOs is like riding a unicorn—but you don't know whether you're riding it to rags or riches! So, take your pick.

SIMPLY PUT: Why investing in SME IPOs should not be on top of your adventure to-do list!

<keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> requires an investment support of USD 1.4 trillion — an average of USD 28 billion per year — to become a net-zero economy by 2070 and raising <keyword id="20260327" type="General" weightage="20" keywordseo="financial-resources" source="keywords">financial resources</keyword> for adaptation and mitigation action of this scale is an "unprecedented challenge", according to the <keyword id="20613906" type="General" weightage="20" keywordseo="Economic-Survey" source="keywords">Economic Survey</keyword> 2023-24 tabled in Parliament on Monday. Reaching net zero means achieving a balance between greenhouse gas emissions and the amount of these gases removed from the atmosphere by either natural processes, such as photosynthesis, or by other methods of carbon capture and storage. The consolidated report on the state of the economy in the previous year said India's climate action has been largely financed through domestic resources and the flow of international finance has been "very limited". Citing the Reserve Bank of India's (RBI) data, the report said bridging the "substantial funding gap" necessitates allocating 2.5 per cent of India's annual Gross Domestic Product (GDP) to <keyword id="20018880" type="General" weightage="20" keywordseo="green-finance" source="keywords">green finance</keyword>. "Preliminary estimates indicate that the aggregate investment support required by India to achieve its 2070 net-zero target will be USD 1.4 trillion at an average of USD 28 billion per year. Raising financial resources for <keyword id="19907392" type="General" weightage="20" keywordseo="climate-change" source="keywords">climate change</keyword> adaptation and mitigation actions of this scale is an unprecedented challenge," the document read. A 2022 report by the Climate Policy Initiative found that domestic sources accounted for the majority of green finance in India, at 87 per cent and 83 per cent in financial years 2019 and 2020 respectively. While international sources are increasing (from 13 per cent in FY 2019 to 17 per cent in FY 2020), the economic survey said they are still insufficient to meet India's net-zero target. "Mobilising substantial capital from traditional sources presents multifaceted challenges in emerging economies like India. The perceived sovereign risks associated with emerging market and developing economies (EMDEs) and the capital-intensive nature of such projects, coupled with lengthy gestation periods and evolving regulatory frameworks, can create misalignment between investor expectations and project timelines," the government said. The economic survey also noted that the flows of global capital to <keyword id="20200084" type="General" weightage="20" keywordseo="developing-countries" source="keywords">developing countries</keyword> have been impeded by high costs of capital. Despite securing a good rating on its green-bond framework, Indian sovereign <keyword id="20177085" type="General" weightage="20" keywordseo="green-bonds" source="keywords">green bonds</keyword> have hardly received any "greenium" from private investors. It is more a "wall of capital" than a "flood of capital" that is waiting to fund energy transition in EMDEs. It is just not mobile. All of these together have severely hampered the flow of finance for green-transition projects, the survey said. "Greenium" or green premium refers to the savings an issuer of a green bond realises on the associated coupon payment because the bond is green. Financial support to help middle-income and poor countries fight climate change will be at the centre of this year's UN climate conference in Baku, Azerbaijan, where the world will reach the deadline to agree on the New Collective Quantified Goal (NCQG) -- the new amount developed nations must mobilise every year starting 2025 to support climate action in developing countries. But achieving consensus will not be easy, given the disappointing progress made on major conflict points at the mid-year UN climate talks in Bonn, Germany. At the 2009 UN climate conference in Copenhagen, rich nations pledged to provide USD 100 billion annually from 2020 to help developing countries mitigate and adapt to climate change. However, delays in achieving this goal have eroded trust between developed and developing nations and have been a continual source of contention during annual climate negotiations. In May, the Organisation for Economic Cooperation and Development (OECD) claimed that developed countries had met the long-standing USD 100 billion-a-year promise by providing nearly USD 116 billion in <keyword id="20000757" type="General" weightage="20" keywordseo="climate-finance" source="keywords">climate finance</keyword> to developing countries in 2022, with nearly 70 per cent of the money given in the form of loans. However, international non-profit organisation Oxfam last week said climate finance provided by rich countries in 2022 totalled no more than USD 35 billion. Developing nations argue that they cannot be expected to reduce carbon dioxide (CO2) emissions faster if developed countries -- historically responsible for climate change -- do not provide enhanced financial support. Rich countries are now expected to raise more than USD 100 billion, with developing countries, including India, demanding trillions of dollars to tackle climate change.

Raising massive financial resources for net-zero goal unprecedented challenge: Economic Survey

<keyword id="70910" type="CITY" weightage="20" keywordseo="Hyundai-motor">Hyundai Motor</keyword> and its affiliate <keyword id="6372046" type="ORGANIZATION" weightage="20" keywordseo="kia">Kia</keyword> are set to report a sharp rebound in operating profit for the second quarter on strong demand for their vehicles that offset output disruptions by semiconductor shortages, <keyword id="49628" type="PERSON" weightage="20" keywordseo="analysts">analysts</keyword> said on Tuesday. <keyword id="596" type="CITY" weightage="20" keywordseo="Hyundai">Hyundai</keyword> and Kia, which together form the world's fifth-biggest carmaker by sales, are expected to have posted operating profits of 1.86 trillion won ($1.6 billion) and 1.34 trillion won, respectively, for the quarter ended June 30, according to a median forecast of local brokerages. In the year-ago quarter, Hyundai's and Kia's operating profits more than halved to 590 billion won and 145 billion won, respectively, as the coronavirus outbreak drove down global vehicle demand. Hyundai and Kia are forecast to report sales of 29.06 trillion won and 17.75 trillion won, respectively, in the second quarter, up from 21.86 trillion won and 11.37 trillion won a year earlier, reports Yonhap news agency. Behind the carmakers' quarterly earnings rebound are robust sales of their high-end vehicles in the domestic and the world's most important U.S. markets among others, analysts said. "A combination of (their) improved product mix, lower incentives and higher average selling prices (particularly) in the U.S. market helped offset the impact of chip shortages and boost profits in the second quarter," <keyword id="11626563" type="UNKNOWN" weightage="20" keywordseo="song-sun-jae">Song Sun-jae</keyword>, an analyst at <keyword id="11626561" type="UNKNOWN" weightage="20" keywordseo="hana-financial-investment-co-">Hana Financial Investment Co.</keyword>, said in his research notes. From January to June, Hyundai and Kia sold a combined 3.47 million vehicles, up 25 percent from 2.77 million units in the same period of last year. They aim to sell a total of 7.08 million autos this year, 1.7 percent lower than the 7.2 million units they sold last year. In the second half, Hyundai and Kia said they will continue to focus on promoting their new models, including Hyundai's all-electric IONIQ 5 crossover utility vehicle and Kia's K8 sedan and all-electric EV6 model, to ride out the COVID-19 pandemic crisis. SEE ALSO - <a href="https://www.businessinsider.in/tech/news/google-calendars-new-rsvp-option-will-let-you-specify-how-you-want-to-attend-a-meeting/articleshow/84237490.cms">Google Calendar’s new RSVP option will let you specify how you want to attend a meeting</a> <a href="https://www.businessinsider.in/business/corporates/news/tcs-hires-over-20000-in-june-quarter-its-highest-ever-quarterly-addition/articleshow/84240423.cms">TCS has loaded up half a million peeps as it expects many to move on</a>

Hyundai and Kia set to report a rebound in operating profit for the second quarter on strong demand in global markets, say analysts

<keyword id="19945815" type="General" weightage="20" keywordseo="startups" source="keywords">Startups</keyword> in <keyword id="19895063" type="General" weightage="20" keywordseo="India" source="keywords">India</keyword> have high expectations from this year's upcoming <keyword id="19908389" type="General" weightage="20" keywordseo="Union-Budget" source="keywords">Union Budget</keyword>. Early-age startups hope for the removal of angel taxes, while <keyword id="20677283" type="General" weightage="20" keywordseo="health-tech-startups" source="keywords">health tech startups</keyword> expect increased <keyword id="19913964" type="General" weightage="20" keywordseo="funding" source="keywords">funding</keyword> for the sector. Startups function as engines of economic growth, playing a crucial role in generating new jobs, ideas, products, and services. As of December 2023, the Department for Promotion of Industry and Internal Trade (DPIIT) had recognised 1,17,254 startups. These startups have reportedly created over 12.42 lakh direct jobs, significantly impacting the economy. Eklavya Gupta, CEO and Co-founder of Recur Club, stated, "We are confident that India's business credit landscape is on the brink of a major digital overhaul. FinTechs are at the forefront of this change, deploying innovative technologies and utilising in-depth data analytics to streamline and expand <keyword id="20974354" type="General" weightage="20" keywordseo="credit-access" source="keywords">credit access</keyword>." He added, "While the current allocation of Rs 10,000 crore is an excellent initial step, realising the full capabilities of India's SME and startup ecosystem will necessitate greater investment, especially in credit guarantee schemes." Vinod K Singh, Co-Founder and CTO of Concirrus, expressed his expectations from the budget: "As the Union Budget 2024-25 approaches, we hope the government will address the pressing issue of the 'angel tax.' Eliminating this tax will enhance capital formation and attract vital <keyword id="19895633" type="General" weightage="20" keywordseo="investments" source="keywords">investments</keyword>. Streamlining the duty structure and reducing high tariffs on electronic inputs are also crucial to bolstering the startup ecosystem and driving innovation. Expanding the Fund of Funds and introducing low-interest loans would be beneficial." Rajiv Lamba, co-founder and CEO of AI-enabled customer feedback platform Surveysensum, added, "Just as the government has prioritised financial inclusion, it should now focus on <keyword id="22405441" type="General" weightage="20" keywordseo="technological-inclusion" source="keywords">technological inclusion</keyword> to propel India to the next stage of growth. By training youth in AI, the government can make a strategic investment in the nation's technological future. Given the rapidly evolving job market, a substantial increase of 20 to 25 percent in budget allocation should be considered for AI-based skill development and entrepreneurship." He further emphasised, "Incentivizing investment in <keyword id="20328842" type="General" weightage="20" keywordseo="AI-startups" source="keywords">AI startups</keyword> and R&amp;D initiatives can boost local innovation in the AI space. The last budget introduced a deep tech fund of Rs 1 lakh crore with a 50-year interest-free loan period; the government should now establish a clear and transparent mechanism for access to this fund." Raja S, founder and MD of Hearzap, highlighted the expectations of health tech startups: "Health tech startups are eagerly anticipating increased funding that could usher in transformative advancements. This crucial investment holds the promise of extending cutting-edge healthcare solutions to rural and underserved areas, effectively bridging existing gaps in care. The upcoming budget ensures that every individual in our diverse population, from the youngest to the oldest, can access essential health services, including specialised care." Discussing taxation for startups in India, Vvihan Gulati, Director of Mediagraphics PR, commented, "Removing the angel tax is a highly anticipated move that would benefit early-stage startups and their investors. It would foster a more favourable environment for innovation and growth, allowing startups to attract much-needed capital without the burden of excessive taxation. This change could significantly enhance the ease of doing business and contribute to the overall growth of the startup ecosystem in India." The Union Budget 2024 will be tabled on July 23 by Union Finance Minister Nirmala Sitharaman. With this, she will become the first Finance Minister to deliver seven consecutive budgets, surpassing Morarji Desai. She presented the interim budget on February 1 of this year.

You Searched For "hana financial investment co" and got 6 results

How 4 Gen Zers are reaching financial independence

Noah Sheidlower

Gen Zers are investing their way out of the 9-to-5

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SIMPLY PUT: Why investing in SME IPOs should not be on top of your adventure to-do list!

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Raising massive financial resources for net-zero goal unprecedented challenge: Economic Survey

PTI

Hyundai and Kia set to report a rebound in operating profit for the second quarter on strong demand in global markets, say analysts

IANS

Startups demand angel tax elimination, incentives on investments in upcoming budget

ANI

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