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Kuvera.in, India’s fastest growing investment platform, has released the results of its recently concluded survey aimed at better understanding investor behaviour as well as the desires and goals of individuals who invest along with preferred investment options. The survey, which saw 5,559 respondents across 8 cities, clearly cited online platforms such as Kuvera.in as the preferred investment route for millennial investors with 9 out of 10 participants preferring to use it.
Key highlights:
9 out of 10 survey participants prefer investing via online investment platforms
Direct plans are in vogue with 88 percent respondents favoring them over regular plans
Index funds are yet to catch up with only 1 in 4 (25 percent) investing in them
Lesser women (5 out of 10 – 48 percent) compared to men (6 out of 10 – 61 percent) do monthly SIPs of more than Rs 10,000
5 out of 10 (51 percent) respondents invest in MFs to grow wealth, 4 out of 10 (45 percent) to meet financial goals
5 out of 10 (55 percent) respondents in the 36-43 age group are investing for home, marriage, retirement and other goals
The survey showed that direct plans are in vogue with 8 out of 10 respondents favouring them over regular plans. Index funds, which have been the flavour of the season, are yet to catch up with only 1 in 4 participants investing in them. Growth funds remain the preferred investment tool with 6 out of 10 respondents investing in it. Just 4 percent of respondents cited sector funds and value funds as an investment tool of choice while international funds came a cropper with just 2 percent opting for it.
Commenting on the survey, Gaurav Rastogi, Founder and CEO, Kuvera.in said, “As investment tools become more accessible, we are seeing an increase in investors opting for online platforms such as Kuvera.in to make smart investment decisions. Interestingly, we are also seeing fiscal discipline in investors with almost 50 percent opting to invest in mutual funds to grow their wealth and 45 percent to meet their financial goals. Tried and tested direct plans and growth funds find favour with investors as investment tools, over regular, sectoral, value and international funds.”
Financial goals and growing wealth remains the top-most priority for investors, with just about 2 percent investing for tax savings. 55 percent respondents in the age group 36-43 are investing for their financial goals such as home, marriage and retirement, 59 percent in the age group of 44 and above are investing to grow their wealth. Region-specific trends showed that investing for ‘financial goals’ are important for people in Chennai (62 percent) and Hyderabad (52 percent) while growing wealth appealed to most in Delhi (61 percent), Ahmedabad (55.31 percent), Bengaluru (53.54 percent), Kolkata (52.94 percent) and Mumbai (52.63 percent). The concept of goal-based investing also resonates well with the survey participants, with as many as 4,578 out of 5,559 respondents according it a value between seven and nine on a scale of one to nine. As many as 2,568 people marked it nine.
Demographically, a good 79 percent of those at 44 years and above preferred growth funds. In a contradictory trend compared to others, 11 percent respondents younger than 25 years of age prefer sector funds; 6 percent in that age group prefer value funds. Only 2-4 percent respondents in other age groups prefer such funds. Interestingly, the survey participants are well aware of the difference between direct and regular funds with a whopping 88 percent choosing them as they are cheaper than their regular counterparts when it comes to the expense ratio.
Another interesting investing pattern is that 42.57 percent said past performance of the fund is a key determinant for investing in mutual funds. Around half of the 5,559 respondents looked at reputation of the fund house, fund criteria and fund manager’s investment style. Only a miniscule (1.13 percent) track all determinants – which would be the right way to go when investing in a mutual fund scheme. Respondents in Chennai, Hyderabad and Bengaluru accord more importance to the fund house, fund criteria and fund manager’s investment style over past performance.
In what again shows more fiscal discipline and that young India is not just a saver, but also investing to secure their future; around 60 percent of survey participants invest in an SIP of Rs. 10,000 and above in mutual funds. Region-wise, Bengaluru is an outlier where a whopping 73 percent respondents invest more than Rs. 10,000 through SIP. Data collated separately for women are in line with the overall trend. However, even though the highest number of women (48 percent) are doing SIPs of more than Rs. 10,000, the percentage is far lesser compared to men (61 percent).
Respondents also seemed to favour investing in the stock markets with 4,197 of 5,559 respondents investing in it, while 774 stay away from it. The remaining participants mentioned that they had not invested so far but were looking to start soon. Region-wise, Kolkata, Ahmedabad and Pune topped the chart with over 80 percent respondents investing in the stock market.
Sample size and demographics
The survey comprised a list of eight questions in which as many as 5,559 people participated with 1028 from Delhi, 912 from Mumbai, 524 from Bengaluru, 476 from Kolkata, 420 from Chennai, 360 from Hyderabad, 188 from Ahmedabad and 444 from Pune. There were as many as 528 women respondents. Among all survey participants, 46.78 percent fell in the age group of 25-35 while 25.52 percent in 36-43 age bracket. The rest were below 25 years of age or 44 and above.