Covid has made emergency fund creation top financial goal for Indians: Survey

Three of the respondents each said that financial health was their biggest stress as Covid-19 led to pay cuts and layoffs. Financial health was a bigger strain than physical health and relationships, respondents pointed out, and Covid-19 is a wake-up call for them to get their personal finances in order.

The survey received 650 responses from women and men with equal representation.

According to the survey findings, creating an emergency fund has emerged as the top financial goal for Indians, as the economic uncertainty caused by the pandemic has brought home the importance of saving for contingencies.

For other goals, 34% of male respondents chose healthcare as their next important financial goal, the survey showed.

Compared to pre-pandemic times, people have started saving and investing more, the survey showed. Around 51% of the respondents said that they are saving more than before, while 36% of the respondents reported investing more towards wealth creation.

Atul Singhal, Founder and CEO, Scripbox, said, “The findings of this survey are profound and encouraging. Our survey respondents confirm that investing is the key to saving more and creating wealth, reducing discretionary spending and creating an emergency fund. In addition to creating, they are focusing more on being better prepared in the new normal.”

The preferred choice of savings instruments were fixed deposits (FDs) and savings accounts, as 53% of the respondents said they keep their extra money in savings accounts, while 41% put it in FDs and recurring deposits. As for investment options, 37% of respondents preferred mutual funds as their number one investment choice, followed by stocks at 24%. Cryptocurrencies are the preferred option for 14% of respondents.

“While traditional means of saving are still popular, it is heartening to see a growing preference for strong investment options like mutual funds rather than trading,” Singhal said.