For the first time, mutual funds are used by more Indians to save than fixed or recurring deposits. According to a BankBazaar poll, 57% of respondents chose mutual funds/SIPs over fixed deposits, while 54% chose fixed deposits.
However, fixed deposits continue to be preferred by the 35-45 age group among salaried workers, compared to 54% of the 28-34 age group and 47% of the 22-27 age group.
Mutual fund investments were highest in the East (67%), followed by the North (65%), and the West (62%). Investing in low-return products such as endowment plans also remained high, with over 46% of respondents investing in them. Surprisingly, 50% of men have invested in traditional insurance coverage, compared to 41% of women.
Surprisingly, bitcoin outperformed public provident funds as an investing option.
At least 32% of respondents said they had invested in cryptocurrencies, whereas just 31% said they had done so through a provident fund.
Women taking the initiative
According to the report, women save more actively than is commonly assumed. Women outnumber men in terms of mutual fund investments; approximately 60% of women have SIPs in place, compared to 55% of men.
Approximately 54% of females and 53% of males have FDs. However, the proportion of men who invest directly in stocks is significantly higher than that of women.
In opposed to 30% of men, around 34% of women have crypto assets.
Rainy day considerations: Why do Indians save?
Concern about emergencies such as hospitalizations was the primary reason for saving a lot of money after Covid. This was carefully embraced by children’s well-being and inheritance. Retirement, it seemed, arrived a distant fourth. Women are more proactive when it comes to saving for retirement, with 60% preparing for retirement compared to 52% of men.
Well over 60% of those polled said they had a retirement fund. This is heavily biassed in favour of women, with 68% of females working in the direction of a corpus compared to 54% of males.
Overall, just 44% of them are aiming for a corpus of Rs 1 crore or more, while only 16% are aiming for Rs 2 crore or more. The majority of responders (56%) had a target corpus of less than Rs 1 crore, with 35% having a corpus of Rs 25-75 lakh.
In comparison to 40% of men, around 48% of women have a target corpus of Rs 1 crore or more. However, just 15% of women have a median target corpus of Rs 2 crore or more, whereas 18% of men have.
The poll also revealed that insurance coverage penetration is quite high among the paid class. Only 3% of people have no health or life insurance. Approximately 43% of respondents have both health and life insurance, and 39% have life insurance with no health coverage.