Even though mutual funds are a better medium to invest in the stock market, the latest survey report says that a large section of young investors prefer to invest directly in the stock markets instead of adopting the mutual fund route. According to a report by Fin One, an initiative of financial technology brokerage firm Angel One, 93 per cent of young adults save consistently, with a majority saving 20-30 per cent of their monthly income.
preference over traditional options
According to the news, the survey report states that shares are their favorite investment option. 45 percent of the people surveyed preferred these over more traditional options like fixed deposits (FD) or gold. Currently, 58 percent of young Indian investors invest in stocks, while 39 percent prefer to invest in mutual funds. The brokerage company said in its report that safer options like fixed deposits (22 percent) and recurring deposits (26 percent) are being adopted relatively less. This reflects a balanced approach among the youth between high 'returns' and stable savings.
Questions on these topics asked in the survey
The latest survey report was based on responses from 1,600 young Indians across more than 13 Indian cities. The questions asked focused on four key topics: savings behaviour, investment preferences, financial literacy and use of technology financial instruments. The role of digital platforms and technology has also been underlined in this. According to the report, 68 percent of respondents are using automated savings tools regularly.
Despite disciplined savings habits, 85 percent of young Indians cite high cost of living, especially food, utilities and transportation, as the biggest barrier to saving. This shows that the rising cost of living is a serious challenge for the youth of India.
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