App Boost to Investment Craze in Urban India

The pool of investors also increased from 67% in a similar survey in 2019 to 70% this time. This includes both financial assets such as stocks, bonds and mutual funds and physical assets such as real estate and gold. The survey found that the rich and young were more likely to increase their investment kitties.

The enthusiasm was led by risk-seekers – willing to bear losses for maximum returns. Of the high-investors, about 52% were risk-seekers, and 13% were risk-averse. It’s no surprise that riskier investment practices pulled more: investing more in cryptocurrencies, up from 7% in 2020 to 17%, while 14% said they did through fantasy apps like Dream11 and MPL Participated in betting.

Mutual funds and gold investments also picked up. But the trend towards new-age instruments is clear: pensions and provident funds have lost allure in the form of bank savings. But more people saved cash at home (22% in 2020 compared to 30% in 2021) in times of need for more liquidity, as three-quarters of respondents reported increased monthly expenditures.

The latest YouGov-Mint-CPR Millennial Survey covered 12,900 respondents in 206 cities. Organized jointly by global market research firm YouGov, Mint, and the Indian arm of the Delhi-based Center for Policy Research (CPR), it is the sixth in a series of bi-annual surveys examining India’s aspirations, concerns and outlook. Was. digital natives. Roughly 45% of the sample were Millennials, one-third post-Millennials (ages 18–24), and the rest pre-Millennials (40+).

information support

The Indian stock market has only grown and risen since the initial Covid meltdown. But booms are not uncommon; The way it shocked the retail segment. The survey found that the easy availability of information and investment tools such as new-age apps helped more than a market boom or earnings growth.

Those who invested more last year attributed it to the new age of apps, which made investing a lot easier.

Of the 29% respondents who reported a fall in investment last year, 42% cited increased spending as the main reason, while the rest attributed it to declining income or a volatile outlook on the economy or markets.

age difference

statistics The BSE shows that while India’s stock investors have become quite young during the pandemic, the major push is coming from the older millennium (those in the age group of 30-40). The survey found that, in fact, post-millennials (aged 18-24) are the cash-saving group. They are least likely to invest in stocks, mutual funds, gold, provident funds and real estate, but are relatively more bullish on cryptocurrencies. This trend Has stalled somewhat for the last two years.

However, this should not be read as low investment intent, as this demographic has less savings than older age groups. In any case, young Indians are ahead in the race for investment. The average post-millennial in the survey started investing at the age of 19. The 40+ group wasn’t leaving before I was 32.

income driver

What determines the decision to invest more? Income emerged as the strongest factor, higher than age, education, city level or gender. About 74 percent of those earning more than 1 lakh per month were able to set aside at least one-tenth of their monthly salary for investment. This share was just over a quarter for those earning less than 20,000 per month. While 94% of the high earners invested at least some amount, the stock fell to 77% for those lowest at the bottom of the ladder.

Last year, a majority of respondents across income groups were more likely to invest than before. But even here, the share among those earning more was much higher. 1 lakh per month (68%) than those earning less than 20,000 per month (50%).

This is the second part of a five-part data journalism series on the experiences of India’s digital natives during the second pandemic year. The first part focused on the great brainstorming job market Last year,