Millennials are impatient investors. And they are more cautious with their money than their parents and grandparents.
According to mutual fund firm Legg Mason, less than one-fifth of millennials would consider keeping a poorly performing fund more than a 12 months, compared to nearly three times the number for investors over age 40.
Nutmeg investment advisor Nick Hungerford told the Financial Times investment firms should keep a close eye on this group given their "active interest in their investments."
Millennials are demanding better service but investing less.
"But it is tricky for fund managers, as millennials are demanding better service but investing less. They come from a generation that is used to switching immediately but they are not yet highly valued customers," Hungerford told the Financial Times.
Many Gen Y-ers entered the workforce when the 2008 financial crisis struck and because of this one important solution financial houses should focus on is greater transparency.
Perhaps the biggest issue has to do with a lack of financial literacy. Education is crucial and one way to connect with millennials (aka digital natives) is through their smartphones.
The Financial Times reports that 65% of Gen Y are more worried about losing their phones than, say, losing their cars.
For more news of the day, check out our 60 Second Circa for Friday AM, July 22, 2016.